2nd Engrossment - 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 $1,272,565,000 $1,352,975,000 $2,625,540,000 2.10 SUMMARY BY AGENCY - ALL FUNDS 2.11 2000 2001 TOTAL 2.12 Higher Education Services 2.13 Office 141,006,000 144,412,000 285,418,000 2.14 Board of Trustees of the 2.15 Minnesota State Colleges 2.16 and Universities 543,677,000 589,447,000 1,133,124,000 2.17 Board of Regents of the 2.18 University of 2.19 Minnesota 586,336,000 617,479,000 1,203,815,000 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 141,006,000 144,412,000 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 2.34 112,669,000 116,029,000 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 $8,296 in the first year and $8,546 in 2.46 the second year for four-year 2.47 institutions and $6,386 in the first 2.48 year and $6,578 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 4,828,000 4,829,000 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 543,677,000 589,447,000 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 is requested to prepare and 4.46 present future budget requests in a 4.47 campus based format so that the 4.48 legislature may understand the need for 4.49 and the effect of funding and 4.50 allocation decisions on each MnSCU 4.51 college and university. 4.52 The board of trustees is requested to 4.53 amend the board policy on institutional 4.54 reserves to reduce the minimum reserve 4.55 from five percent to three percent. 4.56 The legislature intends that state 5.1 appropriations be used to strengthen 5.2 and support education of students. To 5.3 this end, all money appropriated in 5.4 this section, except that in direct 5.5 support of system office activities, 5.6 shall be allocated by the board 5.7 directly to the colleges and 5.8 universities. 5.9 The legislature further intends that 5.10 colleges and universities have broad 5.11 discretion in spending in order for 5.12 each to meet its distinctive needs. 5.13 Each institution shall report its 5.14 spending decisions to the higher 5.15 education finance committees by January 5.16 30 of 2000 and 2001. 5.17 Subd 2. Campus Base Enhancement 5.18 30,880,000 56,532,000 5.19 This appropriation includes funding to 5.20 enhance the education experience for 5.21 students at each college and university 5.22 by improving academic programs and 5.23 course offerings, student services, 5.24 retention efforts, advising, library 5.25 acquisitions, facilities repair and 5.26 betterment, and class size and 5.27 availability, while holding down 5.28 tuition increases. 5.29 The board is encouraged to provide 5.30 resources to Central Lakes College to 5.31 add a permanent occupational skills 5.32 instructor in order to provide job 5.33 training and skills to a larger 5.34 population of disabled students and to 5.35 create a model program that can assist 5.36 other MnSCU colleges in developing 5.37 similar programs. 5.38 In each year, the board of trustees 5.39 shall increase the percentage of the 5.40 total general fund expenditures for 5.41 direct instruction and academic 5.42 support, as reported in the federal 5.43 Integrated Postsecondary Education Data 5.44 System (IPEDS). By February 15 of 2000 5.45 and 2001, the board of trustees shall 5.46 report to the legislature the 5.47 percentage of total general fund 5.48 expenditures spent on direct 5.49 instruction and on academic support 5.50 during the previous fiscal year by 5.51 institution and for the system as a 5.52 whole. 5.53 If the board decides to invest state 5.54 appropriations in programs to increase 5.55 teachers of color and urban teachers, 5.56 the board shall first make investments 5.57 in existing programs, wherever 5.58 feasible, as part of its metropolitan 5.59 plan. 5.60 During the biennium, neither the board 5.61 nor campuses shall plan or develop 5.62 doctoral level programs or degrees 5.63 until after they have received the 6.1 recommendation of the house and senate 6.2 committees on education, finance, and 6.3 ways and means. 6.4 During the biennium, technical and 6.5 consolidated colleges shall make use of 6.6 instructional advisory committees 6.7 consisting of employers, students, and 6.8 instructors. The instructional 6.9 advisory committee shall be consulted 6.10 when a technical program is proposed to 6.11 be created, modified, or eliminated. 6.12 If a decision is made to eliminate a 6.13 program, a college shall adequately 6.14 notify students and make plans to 6.15 assist students affected by the closure. 6.16 The board shall prepare an annual 6.17 budget for the system office. The 6.18 budget plan shall be submitted to the 6.19 department of finance by July 1 of each 6.20 fiscal year for review. The plan shall 6.21 include budgeted resources/revenues and 6.22 expenditures for each major division or 6.23 program of the system office. The 6.24 board shall review the current 6.25 functions, services, and programs 6.26 managed or provided by the system 6.27 office. The review shall describe the 6.28 purpose and origin of these activities; 6.29 quantify their unit or program cost; 6.30 describe or quantify how they benefit 6.31 the colleges and universities; identify 6.32 duplicate programs or services provided 6.33 at the system and institutional levels 6.34 and analyze whether this duplication is 6.35 beneficial or unnecessary. The board 6.36 shall report to the higher education 6.37 finance committees by February 15, 6.38 2000, on its findings and articulate an 6.39 organizational plan and program budget 6.40 for the system office. 6.41 The board may waive tuition for 6.42 eligible Southwest Asia veterans, as 6.43 provided in Minnesota Statutes, section 6.44 136F.28. 6.45 Subd. 3. Institutional Equity 6.46 5,000,000 5,135,000 6.47 This appropriation is to increase the 6.48 state funding per full year equivalent 6.49 student at historically underfunded 6.50 MnSCU institutions. 6.51 Subd. 4. Technology 6.52 1,750,000 1,750,000 6.53 This appropriation is for technology 6.54 related expenditures including degree 6.55 audit reporting, ISEEK, the virtual 6.56 university, and technology 6.57 infrastructure/Y2K. 6.58 Subd. 5. Farm Business Management 6.59 100,000 100,000 7.1 This appropriation is to increase 7.2 access to the farm and small business 7.3 management programs by expanding the 7.4 capacity of the programs. 7.5 Subd. 6. One-Time Enhancements 7.6 8,760,000 11,750,000 7.7 This appropriation is for economic 7.8 development, leveraged equipment 7.9 purchases, and the firefighters' 7.10 subsidy. 7.11 This appropriation includes $300,000 to 7.12 reimburse Bemidji State University for 7.13 the costs it incurred in testing the 7.14 system's model student information 7.15 system. 7.16 This appropriation includes $100,000 to 7.17 provide start up funding for a rural 7.18 research center at Southwest State 7.19 University. 7.20 Subd. 7. Winona State Land 7.21 Notwithstanding Minnesota Statutes, 7.22 sections 94.09 to 94.16, the board of 7.23 trustees may sell a parcel of Winona 7.24 State University land for no less than 7.25 its appraised value in a private sale 7.26 to resolve conflicting property 7.27 boundaries. Money from the sale is 7.28 appropriated to the board to be 7.29 allocated to Winona State University. 7.30 Subd. 8. Capital Projects 7.31 The board may undertake the following 7.32 projects, using system and campus 7.33 reserves. 7.34 (a) Moorhead State 7.35 $1,090,000 to demolish structures, do 7.36 site preparation, and provide security 7.37 lighting on recently acquired land. 7.38 (b) Winona State 7.39 $6,100,000 to replace the boiler system. 7.40 Sec. 4. BOARD OF REGENTS OF THE 7.41 UNIVERSITY OF MINNESOTA 7.42 Subdivision 1. Total 7.43 Appropriation 586,336,000 617,479,000 7.44 The amounts that may be spent from this 7.45 appropriation for each purpose are 7.46 specified in the following subdivisions. 7.47 Subd. 2. Operations and 7.48 Maintenance 516,652,000 547,570,000 7.49 The board of regents is requested to 7.50 support the development of a higher 7.51 education policy research center to 7.52 study, analyze and make recommendations 7.53 on higher education issues and trends 8.1 and to collect and disseminate higher 8.2 education data to policy makers in the 8.3 state. The boards and institutions of 8.4 the Minnesota state colleges and 8.5 universities shall, and the Minnesota 8.6 private colleges are requested to, 8.7 cooperate and collaborate in the 8.8 development of the center. 8.9 (a) Base Enhancements 8.10 40,874,000 68,523,000 8.11 This appropriation includes funding to 8.12 improve the undergraduate experience, 8.13 provide repair and betterment on 8.14 University campuses, connect to the 8.15 community, and fund competitive 8.16 compensation. 8.17 $1,706,000 in the first year and 8.18 $3,638,000 in the second year is to 8.19 enhance and expand upper division and 8.20 graduate programs in Rochester as 8.21 provided in article 2, section 13. By 8.22 January 30, 2000, the University shall 8.23 submit to the governor and the 8.24 legislature a master academic plan for 8.25 the region that clearly defines the 8.26 academic needs of the region, short and 8.27 long-term plans to address those needs 8.28 including the designation of 8.29 responsibility among the partner 8.30 institutions, short and long-term 8.31 demographic and enrollment projections, 8.32 physical plant capacity and needs, and 8.33 a delineation of missions among the 8.34 partner institutions to avoid 8.35 competition and duplication. 8.36 (b) Health Professional Education 8.37 3,000,000 3,000,000 8.38 The University of Minnesota academic 8.39 health center, after consultation with 8.40 the health care community and medical 8.41 education and research costs advisory 8.42 committee, shall report by January 15, 8.43 2000, to the higher education finance 8.44 committees of the legislature on the 8.45 strategic direction of its health 8.46 professional programs. The plans shall 8.47 include a programmatic and financial 8.48 model for health professional education 8.49 that will meet the state's future 8.50 workforce needs, maintain the integrity 8.51 of the education process, provide an 8.52 appropriate level of on-going financial 8.53 support, and provide a framework for 8.54 the health community and academic 8.55 health center to work together in 8.56 meeting the health needs of the state. 8.57 The academic health center is requested 8.58 to provide the report also to the 8.59 commissioner of health and the 8.60 legislative commission on health care 8.61 access. 8.62 (c) One-Time Enhancements 9.1 2,819,000 2,920,000 9.2 This appropriation includes money for 9.3 repair and betterment of facilities. 9.4 Subd. 3. Special 9.5 Appropriation 69,679,000 69,909,000 9.6 The amounts expended for each program 9.7 in the four categories of special 9.8 appropriations shall be separately 9.9 identified in the 2001 biennial budget 9.10 document. 9.11 (a) Agriculture and Extension Service 9.12 54,988,000 54,988,000 9.13 This appropriation is for the 9.14 Agricultural Experiment Station, 9.15 Minnesota Extension Service. 9.16 Any salary increases granted by the 9.17 University to personnel paid from the 9.18 Minnesota Extension appropriation must 9.19 not result in a reduction of the county 9.20 responsibility for the salary payments. 9.21 During the biennium, the University 9.22 shall maintain an advisory council 9.23 system for each experiment station. 9.24 The advisory councils must be broadly 9.25 representative of range of size and 9.26 income distribution of farms and 9.27 agribusinesses and must not 9.28 disproportionately represent those from 9.29 the upper half of the size and income 9.30 distributions. 9.31 (b) Health Sciences 9.32 5,789,000 5,846,000 9.33 This appropriation is for rural 9.34 physicians associates program, the 9.35 Veterinary Diagnostic Laboratory, 9.36 health sciences research, dental care, 9.37 and the Biomedical Engineering Center. 9.38 (c) Institute of Technology 9.39 1,600,000 1,645,000 9.40 This appropriation is for the 9.41 Geological Survey and the Talented 9.42 Youth Mathematics Program. 9.43 (d) System Specials 9.44 7,302,000 7,430,000 9.45 This appropriation is for general 9.46 research, student loans matching money, 9.47 industrial relations education, Natural 9.48 Resources Research Institute, Center 9.49 for Urban and Regional Affairs, Bell 9.50 Museum of Natural History, and the 9.51 Humphrey exhibit. 9.52 Sec. 5. MAYO MEDICAL FOUNDATION 10.1 Subdivision 1. Total 10.2 Appropriation 1,546,000 1,637,000 10.3 The amounts that may be spent from this 10.4 appropriation for each purpose are 10.5 specified in the following subdivisions. 10.6 Subd. 2. Medical School 10.7 554,000 605,000 10.8 The state of Minnesota shall pay a 10.9 capitation of $13,200 in the first year 10.10 and $14,405 in the second year for each 10.11 student who is a resident of 10.12 Minnesota. The appropriation may be 10.13 transferred between years of the 10.14 biennium to accommodate enrollment 10.15 fluctuations. 10.16 The legislature intends that during the 10.17 biennium the Mayo foundation use the 10.18 capitation money to increase the number 10.19 of doctors practicing in rural areas in 10.20 need of doctors. 10.21 Subd. 3. Family Practice and 10.22 Graduate Residency Program 10.23 601,000 625,000 10.24 The state of Minnesota shall pay a 10.25 capitation of $21,455 for 26 residents 10.26 and $42,911 for one resident in the 10.27 first year, and $22,313 for 26 10.28 residents and $44,627 for one resident 10.29 in the second year. 10.30 Subd. 4. St. Cloud Hospital-Mayo 10.31 Family Practice Residency Program 10.32 391,000 407,000 10.33 This appropriation is to the Mayo 10.34 foundation to support 12 resident 10.35 physicians in the first year and 12 10.36 resident physicians in the second year 10.37 in the St. Cloud Hospital-Mayo Family 10.38 Practice Residency Program. The 10.39 program shall prepare doctors to 10.40 practice primary care medicine in the 10.41 rural areas of the state. It is 10.42 intended that this program will improve 10.43 health care in rural communities, 10.44 provide affordable access to 10.45 appropriate medical care, and manage 10.46 the treatment of patients in a more 10.47 cost-effective manner. 10.48 ARTICLE 2 10.49 RELATED PROVISIONS 10.50 Section 1. Minnesota Statutes 1998, section 16B.465, 10.51 subdivision 4, is amended to read: 10.52 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 10.53 require the participation of state agencies,and the state board 11.1 of education,and the board of trustees of the Minnesota state11.2colleges and universitiesand may request the participation of 11.3 the board of regents of the University of Minnesota and the 11.4 board of trustees of the Minnesota state colleges and 11.5 universities, in the planning and implementation of the network 11.6 to provide interconnective technologies. The commissioner shall 11.7 establish reimbursement rates in cooperation with the 11.8 commissioner of finance to be billed to participating agencies 11.9 and educational institutions sufficient to cover the operating, 11.10 maintenance, and administrative costs of the system. 11.11 (b) A direct appropriation made to an educational 11.12 institution for usage costs associated with the state 11.13 information infrastructure must only be used by the educational 11.14 institution for payment of usage costs of the network as billed 11.15 by the commissioner of administration. 11.16 Sec. 2. Minnesota Statutes 1998, section 135A.155, is 11.17 amended to read: 11.18 135A.155 [HAZING POLICY.] 11.19 The board of trustees of the Minnesota state colleges and 11.20 universities shall, and the University of Minnesota is requested 11.21 to, adopt a clear, understandable written policy on student 11.22 conduct, including hazing. The policy must include procedures 11.23 for reporting incidents of inappropriate hazing and for 11.24 disciplinary actions against individual violators and 11.25 organizations. The policymust be provided to students when11.26they register and must beshall be made available to students 11.27 through means such as publication in the student handbook or 11.28 course schedule or posting on a campus website, as determined by 11.29 each institution. The policy also shall be posted at 11.30 appropriate locations on campus. A private post-secondary 11.31 institution that is an eligible institution as defined in 11.32 section 136A.101, subdivision 4, must adopt a policy that meets 11.33 the requirements of this section. 11.34 Sec. 3. Minnesota Statutes 1998, section 136A.031, 11.35 subdivision 3, is amended to read: 11.36 Subd. 3. [STUDENT ADVISORY COUNCIL.] A student advisory 12.1 council (SAC) to the higher education services council is 12.2 established. The members of SAC shall include: the chair of 12.3 the University of Minnesota student senate,; the state chair of 12.4 the Minnesota state university student association, the12.5president of the Minnesota community college student12.6association, the president of the Minnesota technical college12.7student association,; the president of the Minnesota state 12.8 college student association and an officer of the Minnesota 12.9 state college student association, one in a community college 12.10 course of study and one in a technical college course of study; 12.11 the president of the Minnesota association of private college 12.12 students,; and a student who is enrolled in a private vocational 12.13 school, to be appointed by the Minnesota association of private 12.14 post-secondary schools. A member may be represented by a 12.15 student designee who attends an institution from the same system 12.16 that the absent member represents. The SAC shall select one of 12.17 its members to serve as chair. 12.18 The higher education services council shall inform the SAC 12.19 of all matters related to student issues under consideration and 12.20 shall refer all proposals to the SAC before taking action or 12.21 sending the proposals to the governor or legislature. The SAC 12.22 shall report to the higher education services council quarterly 12.23 and at other times that the SAC considers desirable. The SAC 12.24 shall determine its meeting times, but it shall also meet with 12.25 the council within 30 days after the director's request for a 12.26 meeting. 12.27 The SAC shall: 12.28 (1) bring to the attention of the higher education services 12.29 council any matter that the SAC believes needs the attention of 12.30 the council; 12.31 (2) make recommendations to the higher education services 12.32 council as it finds appropriate; 12.33 (3) appoint student members to the higher education 12.34 services council advisory groups as provided in subdivision 4; 12.35 and 12.36 (4) provide any reasonable assistance to the council. 13.1 Sec. 4. Minnesota Statutes 1998, section 136A.121, 13.2 subdivision 5, is amended to read: 13.3 Subd. 5. [GRANT STIPENDS.] The grant stipend shall be 13.4 based on a sharing of responsibility for covering the recognized 13.5 cost of attendance by the applicant, the applicant's family, and 13.6 the government. The amount of a financial stipend must not 13.7 exceed a grant applicant's recognized cost of attendance, as 13.8 defined in subdivision 6, after deducting the following: 13.9 (1) the assigned student responsibility of at least 47 13.10 percent of the cost of attending the institution of the 13.11 applicant's choosing; 13.12 (2) the assigned family responsibility as defined in 13.13 section 136A.101; and 13.14 (3) the amount of a federal Pell grant award for which the 13.15 grant applicant is eligible, calculated as if the maximum Pell 13.16 grant were $3,125. 13.17 The minimum financial stipend is$300$200 per academic 13.18 year. 13.19 Sec. 5. Minnesota Statutes 1998, section 136A.121, 13.20 subdivision 6, is amended to read: 13.21 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 13.22 attendance consists of allowances specified in law for room and 13.23 board and miscellaneous expenses, and 13.24 (1) for public institutions, tuition and fees charged by 13.25 the institution; or 13.26 (2) for private institutions, an allowance for tuition and 13.27 fees equal to the lesser of the actual tuition and fees charged 13.28 by the institution, or the private institution tuition maximums 13.29 established in law. By the time of the November forecast in the 13.30 even numbered years, the commissioner of finance shall recommend 13.31 to the governor and the legislature for each year of the 13.32 biennium an inflation adjustment to the private institution 13.33 tuition maximum that shall equal the percentage change in the 13.34 consumer price index for all urban consumers (CPI-U) for the 13.35 12-month period ending in October of the preceding year. 13.36 (b) For the purpose of paragraph (a), clause (2), the 14.1 private institution tuition maximum for two- and four-year, 14.2 private, residential, liberal arts, degree-granting colleges and 14.3 universities must be the same. 14.4 (c) For a student attending less than full time, the office 14.5 shall prorate the recognized cost of attendance to the actual 14.6 number of credits for which the student is enrolled. 14.7 The recognized cost of attendance for a student who is 14.8 confined to a Minnesota correctional institution shall consist 14.9 of the tuition and fee component in paragraph (a), clause (1) or 14.10 (2), with no allowance for living expenses. 14.11 Sec. 6. Minnesota Statutes 1998, section 136A.125, 14.12 subdivision 4, is amended to read: 14.13 Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a 14.14 child care grant must be based on: 14.15 (1) the income of the applicant and the applicant's spouse, 14.16 if any; 14.17 (2) the number in the applicant's family, as defined by the 14.18 office; and 14.19 (3) the number of eligible children in the applicant's 14.20 family. 14.21 The maximum award to the applicant shall be $2,000 for each 14.22 eligible child per academic year, except that the campus 14.23 financial aid officer may apply to the office for approval to 14.24 increase grants by up to ten percent to compensate for higher 14.25 market charges for infant care in a community. The office shall 14.26 develop policies to determine community market costs and to 14.27 review institutional requests for compensatory grant increases 14.28 to ensure need and equal treatment. The office shall prepare a 14.29 chart to show the amount of a grant that will be awarded per 14.30 child based on the factors in this subdivision. The chart shall 14.31 include a range of income and family size. 14.32 Sec. 7. Minnesota Statutes 1998, section 136F.02, 14.33 subdivision 2, is amended to read: 14.34 Subd. 2. [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 14.35 compensation, removal of members, and filling of vacancies on 14.36 the board are as provided in section 15.0575. Members are 15.1 appointed for a term of six years, except that the term of each 15.2 of the student members is two years. Terms end on June 30, 15.3 except that members may serve until their successors are 15.4 appointed and qualify. 15.5 Sec. 8. Minnesota Statutes 1998, section 136F.04, 15.6 subdivision 1, is amended to read: 15.7 Subdivision 1. [RESPONSIBILITY.] Notwithstanding section 15.8 136F.03, thestatewide community college student association,15.9 state university student association,andtechnicalthe state 15.10 college student association shall each have the responsibility 15.11 for recruiting, screening, and recommending qualified candidates 15.12 foritstheir studentmembermembers of the board. 15.13 Sec. 9. Minnesota Statutes 1998, section 136F.22, 15.14 subdivision 1, is amended to read: 15.15 Subdivision 1. [STATEWIDE.] The board shall recognize one 15.16 statewide student association for thecommunity colleges, one15.17for thestate universities,and one for the community and 15.18 technical colleges. Each campus student association shall be 15.19 affiliated with its statewide student association and all 15.20 students enrolled on those campuses shall be members of their 15.21 respective statewide association. 15.22 Sec. 10. Minnesota Statutes 1998, section 136F.32, 15.23 subdivision 2, is amended to read: 15.24 Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 15.25 (a) A technical college or consolidated technical community 15.26 college shall offer students the option of pursuing diplomas and 15.27 certificates in each technical education program, unless the 15.28 board determines thatthis is not practicable for certain15.29programsa degree is the only acceptable credential for career 15.30 entry in a specific field. All vocational and technical credits 15.31 earned for a diploma or certificate shall be applicable toward 15.32 any available degree in the same program. 15.33 (b) Certificates and diplomas are credentials that 15.34 demonstrate competence in a vocational or technical area and, 15.35 therefore, may include a general education component only as 15.36 part of an articulation agreement or to meet occupational 16.1 requirements as established by the trade or profession, or by 16.2 the program advisory committee. Students shall be provided with 16.3 applied training in general studies as necessary for competence 16.4 in the program area. Students who have earned a certificate or 16.5 diploma may earn a degree in the same field if they complete the 16.6 general education and other degree requirements. 16.7 Sec. 11. Minnesota Statutes 1998, section 136F.32, is 16.8 amended by adding a subdivision to read: 16.9 Subd. 3. [ASSESSMENT.] To reduce barriers to enrollment 16.10 and to train a skilled workforce, students may be assessed for 16.11 skills necessary for competency in a technical or vocational 16.12 field as part of their program. The results of standardized 16.13 assessment tests shall not prohibit enrollment in a student's 16.14 certificate or diploma program. 16.15 Sec. 12. Minnesota Statutes 1998, section 137.0245, 16.16 subdivision 4, is amended to read: 16.17 Subd. 4. [RECOMMENDATIONS.] The advisory council shall 16.18 recommend at least two and not more than four candidates. By 16.19 March 15 of each odd-numbered year, the advisory council shall 16.20 submit its recommendations to the president of the senate and 16.21 the speaker of the house of representatives. The council also 16.22 shall submit the names of any incumbent regents seeking 16.23 reelection, with or without recommendation. The legislature 16.24 shall not be bound by these recommendations. 16.25 Sec. 13. [137.17] [ROCHESTER BRANCH.] 16.26 Subdivision 1. [ESTABLISH.] The board of regents may 16.27 establish a school of professional and graduate studies as a 16.28 nonresidential branch campus of the University of Minnesota, 16.29 Rochester, to serve the needs of working adults and other 16.30 nontraditional students in southeastern Minnesota. The campus 16.31 shall be a joint partnership of the University of Minnesota with 16.32 Rochester community and technical college, and Winona state 16.33 university. 16.34 Subd. 2. [LEADERSHIP.] The legislature intends that the 16.35 Rochester branch strengthen the existing partnership of 16.36 institutions in Rochester by providing better coordination and 17.1 leadership in serving the needs of the region, while maintaining 17.2 a cooperative basis among the institutions. The University of 17.3 Minnesota is expected to take the leadership role in assessing 17.4 community needs and facilitating the delivery of upper division 17.5 and graduate academic programming and student services by 17.6 existing higher education providers. It is the intent of the 17.7 legislature that this branch not diminish the role or function 17.8 of existing higher education institutions in Rochester or 17.9 elsewhere in the region in which the state already has a 17.10 significant investment. 17.11 Subd. 3. [MISSIONS.] The legislature recognizes that the 17.12 distinctiveness of each of the partner institutions in Rochester 17.13 must be maintained to achieve success in serving the higher 17.14 education needs of the community and the economic goals of the 17.15 state. Further, the legislature intends the University of 17.16 Minnesota to avoid duplicative offerings of courses and programs 17.17 offered by other partner institutions or of specialized programs 17.18 offered by other state university or University of Minnesota 17.19 campuses. Therefore, the University of Minnesota, Winona state 17.20 university, and Rochester community and technical college shall 17.21 develop jointly a statement of missions and roles for the 17.22 programs and services at Rochester which shall be submitted to 17.23 the legislature by January 30, 2000, and any time thereafter 17.24 that the missions and roles change. 17.25 Subd. 4. [CHANGES.] Any proposed changes in the programs, 17.26 services, missions, or roles of the partner institutions in 17.27 Rochester must be approved by the other partner institutions. 17.28 Sec. 14. Minnesota Statutes 1998, section 471.59, 17.29 subdivision 1, is amended to read: 17.30 Subdivision 1. [AGREEMENT.] Two or more governmental 17.31 units, by agreement entered into through action of their 17.32 governing bodies, may jointly or cooperatively exercise any 17.33 power common to the contracting parties or any similar powers, 17.34 including those which are the same except for the territorial 17.35 limits within which they may be exercised. The agreement may 17.36 provide for the exercise of such powers by one or more of the 18.1 participating governmental units on behalf of the other 18.2 participating units. The term "governmental unit" as used in 18.3 this section includes every city, county, town, school district, 18.4 other political subdivision of this or another state, another 18.5 state, the University of Minnesota, and any agency of the state 18.6 of Minnesota or the United States, and includes any 18.7 instrumentality of a governmental unit. For the purpose of this 18.8 section, an instrumentality of a governmental unit means an 18.9 instrumentality having independent policy making and 18.10 appropriating authority. 18.11 Sec. 15. [REGENT RECRUITMENT.] 18.12 A task force is appointed to recommend ways to enhance the 18.13 recruitment of candidates for the board of regents. The task 18.14 force shall consider how to attract more regent candidates, 18.15 especially minority and female candidates. The task force may 18.16 make recommendations in procedures or structures, including 18.17 changes in the structure of the regent candidate advisory 18.18 council or legislative procedures as they relate to the issue of 18.19 recruitment. The task force shall consist of eight members as 18.20 follows: two current or former members of the board of regents, 18.21 appointed by the board; two members of the regent candidate 18.22 advisory council, appointed by the council; two members of the 18.23 University of Minnesota alumni association, appointed by the 18.24 association; one member of the Minnesota house of 18.25 representatives, appointed by the speaker of the house; and one 18.26 member of the Minnesota senate, appointed by the subcommittee on 18.27 committees of the committee on rules and administration. The 18.28 task force shall report its recommendations to the education 18.29 committees of the legislature by January 31, 2000. 18.30 Sec. 16. [METRO PLAN.] 18.31 By September 15, 1999, the board of trustees of the 18.32 Minnesota state colleges and universities shall submit to the 18.33 legislature the master academic plan for the metropolitan area 18.34 as required under Laws 1996, chapter 395, section 3, paragraph 18.35 (e). 18.36 Sec. 17. [REPEALER.] 19.1 Minnesota Statutes 1998, sections 136A.1359; and 136A.136, 19.2 are repealed. 19.3 ARTICLE 3 19.4 OTHER PROVISIONS 19.5 Section 1. Minnesota Statutes 1998, section 141.21, 19.6 subdivision 3, is amended to read: 19.7 Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a 19.8 salary or for commission, acts as an agent, independent 19.9 contractor, salesperson, or counselor inprocuring or attempting19.10to procurerecruiting studentsor enrolleesfor acourse of19.11instruction by solicitation inprogram using anyform made19.12 method, at any place except on the actual business premises of 19.13 the schooland except for rendering, other than only providing 19.14 public informationserviceat the invitation or permission of a 19.15 school or educational organization. 19.16 Sec. 2. Minnesota Statutes 1998, section 141.21, 19.17 subdivision 5, is amended to read: 19.18 Subd. 5. [SCHOOL.] "School" means any person, within or 19.19withoutoutside the state,thatwho maintains, advertises, 19.20 solicits, or conducts anycourse of instructionprogram for 19.21 profitor for a tuition chargeat any level other than 19.22 baccalaureate or graduate programs, andwhichis not 19.23 specifically exempted bythe provisions ofsections 141.21 to 19.24141.36141.35. 19.25 Sec. 3. Minnesota Statutes 1998, section 141.21, 19.26 subdivision 6, is amended to read: 19.27 Subd. 6. [COURSEOF INSTRUCTION.] "Courseof instruction" 19.28 means any classroom, correspondence, or extensioncourse of19.29 instruction; any subunit of a program; or any combination 19.30 thereof. 19.31 Sec. 4. Minnesota Statutes 1998, section 141.21, is 19.32 amended by adding a subdivision to read: 19.33 Subd. 8. [PROGRAM.] "Program" means any course or grouping 19.34 of courses that is advertised or listed in a school's catalog, 19.35 brochures, website, or other publications, or for which the 19.36 school grants a formal recognition. 20.1 Sec. 5. Minnesota Statutes 1998, section 141.21, is 20.2 amended by adding a subdivision to read: 20.3 Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education 20.4 school" means a school that establishes, keeps, or maintains a 20.5 facility or location where a program is offered through 20.6 correspondence, telecommunication, or electronic media, 20.7 including Internet website, interactive Internet, or CD-ROM 20.8 self-instruction. 20.9 Sec. 6. Minnesota Statutes 1998, section 141.21, is 20.10 amended by adding a subdivision to read: 20.11 Subd. 10. [WEB SITE.] "Website" means a location on the 20.12 World Wide Web made up of one or more pages. 20.13 Sec. 7. Minnesota Statutes 1998, section 141.22, is 20.14 amended to read: 20.15 141.22 [CITATION.] 20.16 Sections 141.21 to141.36141.35 may be cited as the 20.17 PrivateBusiness, Trade and CorrespondenceCareer School Act. 20.18 Sec. 8. Minnesota Statutes 1998, section 141.25, 20.19 subdivision 1, is amended to read: 20.20 Subdivision 1. [REQUIRED.]NoA schoolshallmust not 20.21 maintain, advertise, solicit for, or conduct anycourse of20.22instructionprogram in Minnesota without first obtaining a 20.23 license from the office. 20.24 Sec. 9. Minnesota Statutes 1998, section 141.25, 20.25 subdivision 2, is amended to read: 20.26 Subd. 2. [CONTRACT UNENFORCEABLE.]AnyA contract entered 20.27 into withanya person for acourse of instruction after20.28November 15, 1969,program by or on behalf ofanya person 20.29 operatinganya school to which a license has not been 20.30 issuedpursuant tounder sections 141.21 to141.3620.31 141.35,shall beis unenforceable in any actionbrought20.32thereon. 20.33 Sec. 10. Minnesota Statutes 1998, section 141.25, 20.34 subdivision 3, is amended to read: 20.35 Subd. 3. [APPLICATION.] Application for a license shall be 20.36 on forms prepared and furnished by the office, and shallcontain21.1 include the following andsuchother information as the office 21.2 may require: 21.3(a)(1) the title or name of the school,together with21.4 ownership and controlling officers, members, managing employees, 21.5 and director; 21.6(b)(2) the specificfields of instructionprograms which 21.7 will be offered and the specific purposes ofsuchthe 21.8 instruction; 21.9(c)(3) the place or places wheresuchthe instruction will 21.10 be given; 21.11(d)(4) a listing of the equipment available for 21.12 instruction in eachcourse of instructionprogram; 21.13(e)(5) the maximum enrollment to be accommodated with 21.14 equipment available in each specifiedcourse of instruction21.15 program; 21.16(f)(6) the qualifications of instructors and supervisors 21.17 in each specifiedcourse of instructionprogram; 21.18(g)(7) a current balance sheet, income statement, and 21.19 adequate supporting documentation, prepared and certified by an 21.20 independent public accountant or CPA; 21.21(h)(8) copies of all media advertising and promotional 21.22 literature and brochures, including websites, currently used or 21.23 reasonably expected to be used bysuchthe school; 21.24(i)(9) copies of all Minnesota enrollment agreement forms 21.25 and contract forms and all enrollment agreement forms and 21.26 contract forms used in Minnesota; and 21.27 (10) gross income earned in the preceding year from student 21.28 tuition, fees, and other required institutional charges, unless 21.29 the school files with the office a surety bond equal to at least 21.30 $50,000 as described in subdivision 5. 21.31 Sec. 11. Minnesota Statutes 1998, section 141.25, 21.32 subdivision 5, is amended to read: 21.33 Subd. 5. [BOND.] (a) No license shall be issued to any 21.34 school which maintains, conducts, solicits for, or advertises 21.35 within the state of Minnesota anycourse of instructionprogram, 21.36 unless the applicant files with the office a continuous 22.1 corporate surety bondin the sum of $10,000written by a company 22.2 authorized to do business in Minnesota conditioned upon the 22.3 faithful performance of all contracts and agreements with 22.4 students made by the applicant.Such22.5 (b) The amount of the surety bond shall be ten percent of 22.6 the preceding year's gross income from student tuition, fees, 22.7 and other required institutional charges, but in no event less 22.8 than $10,000 nor greater than $50,000, except that a school may 22.9 deposit a greater amount at its own discretion. A school in 22.10 each annual application for licensure must compute the amount of 22.11 the surety bond and verify that the amount of the surety bond 22.12 complies with this subdivision, unless the school maintains a 22.13 surety bond equal to at least $50,000. A school that operates 22.14 at two or more locations may combine gross income from student 22.15 tuition, fees, and other required institutional charges for all 22.16 locations for the purpose of determining the annual surety bond 22.17 requirement. The gross tuition and fees used to determine the 22.18 amount of the surety bond required for a school having a license 22.19 for the sole purpose of recruiting students in Minnesota shall 22.20 be only that paid to the school by the students recruited from 22.21 Minnesota. 22.22 (c) The bond shall run to the state of Minnesota and to any 22.23 person who may have a cause of action against the applicant 22.24 arising at any time after the bond is filed and before it is 22.25 canceled for breach of any contract or agreement made by the 22.26 applicant with any student. The aggregate liability of the 22.27 surety for all breaches of the conditions of the bond shall not 22.28 exceed the principal sumof $10,000deposited by the school 22.29 under paragraph (b). The surety of anysuchbond may cancel it 22.30 upon giving 60 days' notice in writing to the office and shall 22.31 be relieved of liability for any breach of condition occurring 22.32 after the effective date of cancellation. 22.33 (d) In lieu of bond, the applicant may deposit with the 22.34 state treasurerthea sumof $10,000equal to the amount of the 22.35 required surety bond in cash, or securitiessuchas may be 22.36 legally purchased by savings banks or for trust funds in an 23.1 aggregate market valueof $10,000equal to the amount of the 23.2 required surety bond. 23.3 (e) Failure of a school to post and maintain the required 23.4 surety bond or deposit under paragraph (d) may result in denial, 23.5 suspension, or revocation of the school's license. 23.6 Sec. 12. Minnesota Statutes 1998, section 141.25, 23.7 subdivision 6, is amended to read: 23.8 Subd. 6. [RESIDENT AGENT.] Schoolsdomiciledlocated 23.9 outside the state of Minnesotawhichthat offer, advertise, 23.10 solicit for, or conduct anycourse of instructionprogram within 23.11 the state of Minnesota shall first file with the secretary of 23.12 state a sworn statement designating a resident agent authorized 23.13 to receive service of process.SuchThe statement shall 23.14 designate the secretary of state as resident agent for service 23.15 of process in the absence ofana designated agentotherwise so23.16designated.In the eventIf a school fails to filesuchthe 23.17 statement, the secretary of state isherebydesignated as the 23.18 resident agent authorized to receive service of process.Such23.19 The authorization shall be irrevocable as to causes of action 23.20 arising out of transactions occurring prior to the filing of 23.21 written notice of withdrawal from the state of Minnesota filed 23.22 with the secretary of state. 23.23 Sec. 13. Minnesota Statutes 1998, section 141.25, 23.24 subdivision 7, is amended to read: 23.25 Subd. 7. [MINIMUM STANDARDS.]NoA license shall be issued 23.26unlessif the office first determines: 23.27(a)(1) that the applicant has a sound financial condition 23.28 with sufficient resources available to: 23.29 (i) meet the school's financial obligations;to23.30 (ii) refund all tuition and other charges, within a 23.31 reasonable period of time, in the event of dissolution of the 23.32 school or in the event of any justifiable claims for refund 23.33 against the school by the student body;to23.34 (iii) provide adequate service to its students and 23.35 prospective students; andfor the proper use23.36 (iv) maintain and supportofthe schoolto be maintained; 24.1(b)(2) that the applicant has satisfactorytraining24.2 facilities with sufficient tools and equipment and the necessary 24.3 number of work stations totrainprepare adequately the students 24.4 currently enrolled, and those proposed to be enrolled; 24.5(c)(3) that the applicant employs a sufficient number of 24.6 qualifiedinstructors trained by experience and education24.7 teaching personnel togiveprovide thetrainingeducational 24.8 programs contemplated; 24.9(d)(4) that the school has an organizational framework 24.10 with administrative and instructional personnel to provide the 24.11 programs and services it intends to offer; 24.12 (5) that the premises and conditions under which the 24.13 students work and study are sanitary, healthful, and safe, 24.14 according to modern standards; 24.15(e)(6) that the content of each occupational course or 24.16 program ofinstruction orstudyshall be of such quality and24.17content as to provideprovides education andtraining which will24.18adequately prepareadequate preparation to enrolled students for 24.19 entry level positions in the occupation for whichtrained24.20 prepared; 24.21(f)(7) that the living quarters which are owned, 24.22 maintained, or approved by the applicant for students are 24.23 sanitary and safe; 24.24(g)(8) that the contract or enrollment agreement used by 24.25 the school complies with thefollowingprovisions:in section 24.26 141.265; 24.27(1) the name and address of the school must be clearly24.28stated;24.29(2) inclusion of a clear and conspicuous disclosure that24.30such agreement becomes a legally binding instrument upon written24.31acceptance of the student by the school unless canceled pursuant24.32to section 141.271;24.33(3) must contain the school's cancellation and refund24.34policy which shall be clearly and conspicuously entitled,24.35"Buyer's Right to Cancel";24.36(4) the total cost of the course including tuition and all25.1other charges shall be clearly stated;25.2(5) the name and description of the course, including the25.3number of hours or credits of classroom instruction and/or home25.4study lessons shall be included;25.5(6) no contract or agreement shall(9) that contracts and 25.6 agreements do not contain a wage assignment provisionand/oror 25.7 a confession of judgment clause; and 25.8(7) each contract or enrollment agreement shall contain a25.9clear and conspicuous explanation of the form and means of25.10notice the student should use in the event the student elects to25.11cancel the contract or sale, the effective date of cancellation,25.12and the name and address of the seller to which the notice25.13should be sent or delivered; and25.14(h)(10) that there has been no adjudication of fraud or 25.15 misrepresentation in any criminal, civil, or administrative 25.16 proceeding in any jurisdiction against the school or its owner, 25.17 officers, agents, or sponsoring organization. 25.18 Sec. 14. Minnesota Statutes 1998, section 141.25, 25.19 subdivision 8, is amended to read: 25.20 Subd. 8. [FEES AND TERMS OF LICENSE.](a) ApplicationsAn 25.21 application for an initial license under sections 141.21 25.22 to141.36141.35 shall be accompanied by a nonrefundable 25.23 application fee established by the office that is sufficient to 25.24 recover, but not exceed, its administrative costs. 25.25(b)All licenses shall expire one year from the date issued 25.26 by the office.Each renewal application shall be accompanied by25.27a nonrefundable renewal fee established by the office that is25.28sufficient to recover, but does not exceed, its administrative25.29costs.25.30(c) Application for renewal of license shall be made at25.31least 30 days before the expiration of the school's current25.32license. Each renewal form shall be supplied by the office. It25.33shall not be necessary for an applicant to supply all25.34information required in the initial application at the time of25.35renewal unless requested by the office.25.36 Sec. 15. Minnesota Statutes 1998, section 141.25, 26.1 subdivision 9, is amended to read: 26.2 Subd. 9. [CATALOG, BROCHURE, OR WEBSITE.] Before a license 26.3 is issued to a school, other than one which offers exclusively a26.4correspondence course of instruction, the school shall furnish 26.5 to the office a catalogor, brochurecontaining the following, 26.6 or copy of any website pages including: 26.7 (1) identifying data, such as volume number and date of 26.8 publication; 26.9 (2) name and address of the school and its governing body 26.10 and officials; 26.11 (3) a calendar of the school showing legal holidays, 26.12 beginning and ending dates of each course quarter, term, or 26.13 semester, and other important dates; 26.14 (4) the school policy and regulations on enrollment 26.15 including dates and specific entrance requirements for 26.16 eachcourseprogram; 26.17 (5) the school policy and regulations about leave, 26.18 absences, class cuts, make-up work, tardiness, and interruptions 26.19 for unsatisfactory attendance; 26.20 (6) the school policy and regulations about standards of 26.21 progress for the student including the grading system of the 26.22 school, the minimum grades considered satisfactory, conditions 26.23 for interruption for unsatisfactory grades or progress, a 26.24 description of any probationary period allowed by the school, 26.25 and conditions of reentrance for those dismissed for 26.26 unsatisfactory progress; 26.27 (7) the school policy and regulations about student conduct 26.28 and conditions for dismissal for unsatisfactory conduct; 26.29 (8) a detailed schedule of fees, charges for tuition, 26.30 books, supplies, tools, student activities, laboratory fees, 26.31 service charges, rentals, deposits, and all other charges; 26.32 (9) the school policy and regulations, including an 26.33 explanation of section 141.271, about refunding tuition, fees, 26.34 and other charges if the student does not enter thecourse26.35 program, withdraws from the program, or the program is 26.36 discontinued; 27.1 (10) a description of the available facilities and 27.2 equipment; 27.3 (11) a course outline for each course offered showing 27.4 course objectives, subjects or units in the course, type of work 27.5 or skill to be learned, and approximate time, hours, or credits 27.6 to be spent on each subject or unit;and27.7 (12) the school policy and regulations about granting 27.8 credit for previous education andtraining.preparation; 27.9 (13) a procedure for investigating and resolving student 27.10 complaints; and 27.11 (14) the name and address of the Minnesota higher education 27.12 services office. 27.13 A school that is exclusively a distance education school is 27.14 exempt from clauses (3) and (5). 27.15 Sec. 16. Minnesota Statutes 1998, section 141.25, 27.16 subdivision 10, is amended to read: 27.17 Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is 27.18 issued to a school that offers, advertises or implies a 27.19 placement service, the school shall file with the office for the 27.20 past year and thereafter at reasonable intervals determined by 27.21 the office, a certified copy of the school's placement record, 27.22 containing a list of graduates, a description of theirjobjobs, 27.23namenames of theiremployeremployers, and other information as 27.24 the office may prescribe. 27.25 (b) Each school that offers a placement service shall 27.26 furnish to each prospective student, prior to enrollment, 27.27 written information concerning the percentage of the previous 27.28 year's graduates who were placed in the occupation for which 27.29trainedprepared or in related employment. 27.30 Sec. 17. Minnesota Statutes 1998, section 141.25, 27.31 subdivision 12, is amended to read: 27.32 Subd. 12. [PERMANENT RECORDS.]Before a license is issued27.33to a school, eachA school licensed under this chapter and 27.34 located in Minnesota shall maintain a permanentrecordsrecord 27.35 forall students enrolled at any timeeach student for 50 years 27.36 from the last date of the student's attendance.EachA school 28.1 licensed under this chapter and offering acorrespondence course28.2of instructiondistance education program to a student located 28.3 in Minnesota shall maintain a permanentrecordsrecord for each 28.4 Minnesotastudents enrolled at any timestudent for 50 years 28.5 from the last date of the student's attendance. Records include 28.6 school transcripts, documents, and files containing student data 28.7 about academic credits earned, courses completed, grades 28.8 awarded, degrees awarded, and periods of attendance. To 28.9 preserve permanent records, a school shall submit a plan that 28.10 meets the following requirements: 28.11(a)(1) at least one copy of the records must be held in a 28.12 secure depository; 28.13(b)(2) an appropriate official must be designated to 28.14 provide a student with copies of records or a transcript upon 28.15 request; 28.16(c)(3) an alternative method of complying withparagraphs28.17(a) and (b)clauses (1) and (2) must be established if the 28.18 school ceases to exist; and 28.19(d)(4) a continuous surety bond must be filed with the 28.20 office in an amount not to exceed $20,000 if the school has no 28.21 binding agreement for preserving student records or a trust must 28.22 be arranged if the school ceases to exist. 28.23 Sec. 18. [141.251] [LICENSE RENEWAL.] 28.24 Subdivision 1. [APPLICATION.] Application for renewal of a 28.25 license must be made at least 30 days before expiration of the 28.26 current license on a form provided by the office. A renewal 28.27 application shall be accompanied by a nonrefundable fee 28.28 established by the office that is sufficient to recover, but 28.29 does not exceed, its administrative costs. 28.30 Subd. 2. [CONDITIONS.] The office shall adopt rules 28.31 establishing the conditions for renewal of a license. The 28.32 conditions shall permit two levels of renewal based on the 28.33 record of the school. A school that has demonstrated the 28.34 quality of its program and operation through longevity and 28.35 performance in the state may renew its license based on a 28.36 relaxed standard of scrutiny. A school that has been in 29.1 operation in Minnesota for a limited period of time or that has 29.2 not performed adequately on performance indicators shall renew 29.3 its license based on a strict standard of scrutiny. The office 29.4 shall specify minimum longevity standards and performance 29.5 indicators that must be met before a school may be permitted to 29.6 operate under the relaxed standard of scrutiny. The performance 29.7 indicators used in this determination shall include, but not be 29.8 limited to: degree granting status, national accreditation, 29.9 loan default rates, placement rate of graduates, student 29.10 withdrawal rates, audit results, student complaints, and school 29.11 status with the United States Department of Education. Schools 29.12 that meet the requirements established in rule shall be required 29.13 to submit a full relicensure report once every four years, and 29.14 in the interim years will be exempt from the requirements of 29.15 section 141.25, subdivision 3, clauses (4), (5), and (8), and 29.16 Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, 29.17 subpart 4. 29.18 Sec. 19. Minnesota Statutes 1998, section 141.26, 29.19 subdivision 2, is amended to read: 29.20 Subd. 2. [APPLICATION FOR PERMIT.] (a) The application for 29.21 the permit shall state the full name, address, previous 29.22 employment, and such other information concerning the solicitor 29.23 applicant as the office may require. 29.24 (b) The application shall have attached to it a certified 29.25 affidavit signed by a school official and the solicitor 29.26 attesting to the fact that the applicant has been furnished a 29.27 copy, has read and has knowledge of the provisions of this 29.28 chapter and Minnesota Rules, parts 3530.6500 to 3530.7800. 29.29 Sec. 20. [141.265] [INFORMATION TO STUDENTS.] 29.30 Subdivision 1. [CATALOG.] A school or its agent shall 29.31 deliver the catalog, brochure, or copy of the website pages 29.32 required in section 141.25, subdivision 9, to a prospective 29.33 student in a time or manner that provides the prospective 29.34 student at least five business days to read the catalog, 29.35 brochure, or copy of the website pages before signing a contract 29.36 or enrollment agreement or before being accepted by a school 30.1 that does not use a written contract or enrollment agreement. 30.2 Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment 30.3 agreement used by a school must include at least the following: 30.4 (1) the name and address of the school, clearly stated; 30.5 (2) a clear and conspicuous disclosure that the agreement 30.6 is a legally binding instrument upon written acceptance of the 30.7 student by the school unless canceled under section 141.271; 30.8 (3) the school's cancellation and refund policy that shall 30.9 be clearly and conspicuously entitled "Buyer's Right to Cancel"; 30.10 (4) a clear statement of total cost of the program 30.11 including tuition and all other charges; 30.12 (5) the name and description of the program, including the 30.13 number of hours or credits of classroom instruction, distance 30.14 education instruction, or both that shall be included; and 30.15 (6) a clear and conspicuous explanation of the form and 30.16 means of notice the student should use in the event the student 30.17 elects to cancel the contract or sale, the effective date of 30.18 cancellation, and the name and address of the seller to which 30.19 the notice should be sent or delivered. 30.20 Subd. 3. [CONTRACT COPIES.] Immediately upon signing of 30.21 the enrollment agreement or the contract by a prospective 30.22 student, the school or agent shall furnish to the prospective 30.23 student an exact duplicate copy of the enrollment agreement or 30.24 contract. 30.25 Sec. 21. Minnesota Statutes 1998, section 141.271, 30.26 subdivision 1, is amended to read: 30.27 Subdivision 1. [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT30.28TO REFUNDSTUDENT.] For the purposes of this section, "student" 30.29 means the party to the contract, whether the party is the 30.30 student, the student's parent or guardian, or other person on 30.31 behalf of the student. 30.32 Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall 30.33 notify each student, in writing, of acceptance or rejection. In 30.34 the event that the student is rejected by the school, all 30.35 tuition, fees and other charges shall be refunded. 30.36 Sec. 22. Minnesota Statutes 1998, section 141.271, 31.1 subdivision 2, is amended to read: 31.2 Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a) 31.3 Notwithstanding anything to the contrary,everya schoolwhich31.4utilizesthat uses a written contract or enrollment agreement 31.5 shall refund all tuition, fees and other charges paid by a 31.6 student, if the student gives written notice of cancellation 31.7 within five business days after the day on which the contract 31.8 was executed regardless of whether thecourse of instruction31.9 program has started. 31.10 (b)With respect to those schools utilizing a written31.11contract or enrollment agreement,When a student has been 31.12 accepted by the school and has entered into a contractual 31.13 agreement with the school and gives written notice of 31.14 cancellation following the fifth business day after the date of 31.15 execution of contract, but before the start of thecourse of31.16instructionprogram in the case of resident schools, or before 31.17 the first lesson has been serviced by the school in the case of 31.18correspondence (home study)distance education schools, all 31.19 tuition, fees and other charges, except 15 percent of the total 31.20 cost of thecourseprogram but not to exceed $50, shall be 31.21 refunded to the student. 31.22 Sec. 23. Minnesota Statutes 1998, section 141.271, 31.23 subdivision 3, is amended to read: 31.24 Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 31.25 Notwithstanding anything to the contrary,everya schoolwhich31.26 that does notutilizeuse a written contract or enrollment 31.27 agreement shall refund all tuition, fees and other charges paid 31.28 by a student if the student gives written notice of cancellation 31.29 within five business days after the day on which the student is 31.30 accepted by the school regardless of whether thecourse of31.31instructionprogram has started. 31.32 (b)With respect to those schools not utilizing a written31.33contract or enrollment agreement,When a student has been 31.34 accepted by the school and gives written notice of cancellation 31.35 following the fifth business day after the day of acceptance by 31.36 the school, but before the start of thecourse of32.1instructionprogram, in the case of resident schools, or before 32.2 the first lesson has been serviced by the school, in the case of 32.3correspondence (home study)distance education schools, all 32.4 tuition, fees and other charges, except 15 percent of the total 32.5 cost of thecourseprogram but not to exceed $50, shall be 32.6 refunded to the student. 32.7 Sec. 24. Minnesota Statutes 1998, section 141.271, 32.8 subdivision 4, is amended to read: 32.9 Subd. 4. [RESIDENT SCHOOLS.]With respect to all schools32.10offering a resident course of instruction,When a student has 32.11 been accepted bythea school offering a resident program and 32.12 gives written notice of cancellation after the start of the 32.13 period of instruction for which the student has been charged, 32.14 but before completion of 75 percent of the period of instruction 32.15for which the student has been charged, the amount charged for 32.16 tuition, fees, and all other chargesfor the completed portion32.17of the period of instruction for which the student has been32.18chargedshallnot exceed the pro ratabe prorated as a portion 32.19 of the total charges for tuition, fees, and all other charges 32.20that the length of the completed portion of the period of32.21instruction for which the student has been charged bears to its32.22total length, plus. An additional 25 percent of the total cost 32.23 of the period of instructionfor which the student has been32.24chargedmay be added, but shall nottoexceed $100. After 32.25 completion of 75 percent of the period of instruction for which 32.26 the student has been charged, no refunds are required. 32.27 Sec. 25. Minnesota Statutes 1998, section 141.271, 32.28 subdivision 5, is amended to read: 32.29 Subd. 5. [CORRESPONDENCE HOME STUDYDISTANCE EDUCATION 32.30 SCHOOLS.]With respect to all schools offering a correspondence32.31(home study) course of instruction,When a student has been 32.32 accepted bythea distance education school and gives written 32.33 notice of cancellation after the first lesson has been completed 32.34 by the student and serviced by the school, but before completion 32.35 of 75 percent of thecourse of instructionprogram, the amount 32.36 charged for tuition, fees and all other charges for the 33.1 completed lessons shallnot exceed the pro ratabe prorated as a 33.2 portion of the total charges for tuition, fees and all other 33.3 chargesthat the number of lessons completed by the student33.4bears to the total number of lessons offered, plus. An 33.5 additional 25 percent of the total cost of thecourseprogram 33.6 may be added but shall nottoexceed $75. After completion of 33.7 75 percent of thecourse of instructionprogram, no refunds are 33.8 required. 33.9 Sec. 26. Minnesota Statutes 1998, section 141.271, 33.10 subdivision 6, is amended to read: 33.11 Subd. 6. [COMBINATIONCORRESPONDENCE-RESIDENTDISTANCE 33.12 EDUCATION-RESIDENT SCHOOLS.]With respect to all schools33.13offering a combination correspondence (home study)-resident33.14course of instruction,When a student has been accepted bythea 33.15 school that offers a combination distance education-residence 33.16 program and gives written notice of cancellation after the start 33.17 of thecourse of instructionprogram or after the first lesson 33.18 has been completed by the student and serviced by the school, 33.19 whichever phase comes first, the school shall refund all 33.20 tuition, fees and other charges as providedforin subdivision 4 33.21 if cancellation occurs during the resident portion, and as 33.22 provided for in subdivision 5 if cancellation occurs during 33.23 thecorrespondencedistance education portion; provided that,. 33.24 If the cancellation occurs before the student has commenced one 33.25 of the phases, the price of that phase shall not be considered 33.26 in making the proration and the student shall be entitled to a 33.27 full refund of theprice thereofcharges. Conversely, if the 33.28 student has completed a phase of thecourseprogram before 33.29 cancellation, theprice thereofcharges may be retained by the 33.30 school provided that the total tuition, fees and other charges 33.31 for each phase have been stated separately in the school's 33.32 catalog and contract or enrollment agreement. 33.33 Sec. 27. Minnesota Statutes 1998, section 141.271, 33.34 subdivision 12, is amended to read: 33.35 Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.]NoA school 33.36 shall not negotiate any promissory instrument received as 34.1 payment of tuition or other charge prior to completion of 50 34.2 percent of thecourse of instructionprogram. Prior tosuch34.3 that time,suchinstruments may be transferred by assignment to 34.4 purchasers who shall be subject to all defenses available 34.5 against the school named as payee. 34.6 Sec. 28. Minnesota Statutes 1998, section 141.28, 34.7 subdivision 3, is amended to read: 34.8 Subd. 3. [FALSE STATEMENTS.]NoA school, agent, or 34.9 solicitor shall not make, or cause to be made, any statement or 34.10 representation, oral, written or visual, in connection with the 34.11 offering or publicizing of acourseprogram, ifsuchthe school, 34.12 agent, or solicitor knows or reasonably should have known the 34.13 statement or representation to be false, fraudulent, deceptive, 34.14 substantially inaccurate, or misleading. 34.15 Sec. 29. Minnesota Statutes 1998, section 141.28, 34.16 subdivision 5, is amended to read: 34.17 Subd. 5. [IMPROBABLECOURSEPROGRAM COMPLETION OR 34.18 EMPLOYMENT.]NoA school, agent, or solicitor shall not enroll a 34.19 prospective student when it is obvious that the prospective 34.20 student is unlikely to successfully complete acourse of34.21instructionprogram or is unlikely to qualify for employment in 34.22 the vocation or field for which thetrainingpreparation is 34.23 designed unless this fact is affirmatively disclosed to the 34.24 prospective student. If a prospective student expresses a 34.25 desire to enroll after such disclosure, a disclaimer may be 34.26 obtained by the school.SuchThe disclaimer shall be signed by 34.27 the student and shall state substantiallyas followsone or both 34.28 of the following: "I am fully aware that it is unlikely I will 34.29 be able to successfully complete thecourse of instruction34.30 program"and/orand "I am fully aware of the improbability or 34.31 impossibility that I will qualify for employment in the vocation 34.32 or field for which thecourseprogram was designed." 34.33 Sec. 30. Minnesota Statutes 1998, section 141.29, 34.34 subdivision 1, is amended to read: 34.35 Subdivision 1. [GROUNDS.] The office may, after notice and 34.36 upon providing an opportunity for a hearing,pursuant tounder 35.1 chapter 14 if requested by the parties adversely affected, 35.2 refuse to issue, refuse to renew, revoke, or suspendanya 35.3 license or solicitor's permit for anyone or any combinationof 35.4 the following grounds: 35.5(a)(1) violation of any provisions of sections 141.21 to 35.6141.36141.35 or any rulepromulgatedadopted by the office; 35.7(b)(2) furnishing to the office false, misleading, or 35.8 incomplete information; 35.9(c)(3) presenting to prospective students information 35.10 relating to the schoolwhichthat is false, fraudulent, 35.11 deceptive, substantially inaccurate, or misleading; 35.12(d)(4) refusal to allow reasonable inspection or supply 35.13 reasonable information after written requestthereforby the 35.14 office; 35.15(e)(5) the existence of any circumstancewhichthat would 35.16 be grounds for the refusal of an initial or renewal license 35.17 under section 141.25. 35.18 Sec. 31. Minnesota Statutes 1998, section 141.31, is 35.19 amended to read: 35.20 141.31 [INJUNCTION.] 35.21 Upon application of the attorney general the district 35.22 courts shall have jurisdiction to enjoin any violation of 35.23 sections 141.21 to141.36141.35. 35.24 Sec. 32. Minnesota Statutes 1998, section 141.32, is 35.25 amended to read: 35.26 141.32 [PENALTY.] 35.27 Violation ofany provisionsa provision of this chapter 35.28 shall be a misdemeanor. Each day's failure to comply with this 35.29 chapter shall be a separate violation. The office shall adopt 35.30 rules establishing a list of civil penalties and the fine 35.31 associated with each violation. Fines for violations shall not 35.32 exceed $500 per day per violation. 35.33 Sec. 33. Minnesota Statutes 1998, section 141.35, is 35.34 amended to read: 35.35 141.35 [EXEMPTIONS.] 35.36None of the provisions ofSections 141.21 to141.36141.35 36.1 shall not apply to the following: 36.2(a)(1)colleges authorized by the laws of Minnesota or of36.3any other state or foreign country to grant degreespublic 36.4 post-secondary institutions; 36.5 (2) private post-secondary institutions registered under 36.6 sections 136A.61 to 136A.71 that are nonprofit, or that are for 36.7 profit and registered under sections 136A.61 to 136A.71 as of 36.8 December 31, 1998, or are approved to offer exclusively 36.9 baccalaureate or postbaccalaureate programs; 36.10(b)(3) schools of nursing accredited by the state board of 36.11 nursing or an equivalent public board of another state or 36.12 foreign country; 36.13(c) public schools as defined in section 120A.05,36.14subdivisions 9, 11, 13, and 17;36.15(d)(4) private schools complying with the requirements of 36.16 section 120A.22, subdivision24; 36.17(e) private and parochial nonprofit schools exempt from36.18taxation under the constitution of Minnesota;36.19(f)(5) courses taught to students in a valid 36.20 apprenticeship program taught by or required by a trade union; 36.21(g)(6) schools exclusively engaged in training physically 36.22 or mentally handicapped persons for the state of Minnesota; 36.23(h)(7) schoolsnow or hereafterlicensed by boards 36.24 authorized under Minnesota law to issuesuchlicenses; 36.25(i)(8) schools and educational programs, or training 36.26 programs,conductedcontracted for by persons, firms, 36.27 corporations, government agencies or associations, for the 36.28 training of their own employees, for which no fee is charged the 36.29 employee; 36.30(j)(9) schools engaged exclusively in the teaching of 36.31 purely avocational, recreational, or remedial subjects as 36.32 determined by the office. Private schools teaching a method or36.33procedure to increase the speed with which a student reads are36.34not within this exemption; 36.35(k)(10) driver training schools and instructors as defined 36.36 in section 171.33, subdivisions 1 and 2; 37.1(l)(11) classes, courses, or programs conducted by a bona 37.2 fide trade, professional, or fraternal organization, solely for 37.3 that organization's membership; 37.4(m) courses of instruction(12) programs in the fine arts 37.5 provided by organizations exempt from taxationpursuant tounder 37.6 section 290.05 and registered with the attorney generalpursuant37.7tounder chapter 309. For the purposes of this clause, "fine 37.8 arts" means activities resulting in artistic creation or 37.9 artistic performance of works of the imagination which are 37.10 engaged in for the primary purpose of creative expression rather 37.11 than commercial sale or employment. In making this determination 37.12 the office may seek the advice and recommendation of the 37.13 Minnesota board of the arts; 37.14(n)(13) classes, courses, or programs intended to fulfill 37.15 the continuing education requirements for licensure or 37.16 certification in a profession,which classes, courses, or37.17programsthat have been approved by a legislatively or 37.18 judicially established board or agency responsible for 37.19 regulating the practice of the profession, andwhichthat are 37.20 offered primarily toa person who currently practicesan 37.21 individual practicing the profession; 37.22(o)(14) classes, courses, or programs intended to prepare 37.23 students to sit for undergraduate, graduate, postgraduate, or 37.24 occupational licensing and occupational entrance examinations; 37.25(p)(15) classes, courses, or programsof a seminar nature37.26 providing 16 or fewer clock hours of instructionthat are not37.27part of the curriculum for an occupation or are not intended to37.28prepare a person for entry level employment; 37.29(q)(16) classes, courses, or programsof a seminar nature37.30 providing instruction in personal development, modeling, or 37.31 acting;and37.32(r)(17) training or instructional programs, in which one 37.33 instructor teaches an individual student, that are not part of 37.34 the curriculum for an occupation or are not intended to prepare 37.35 a person for entry level employment; and 37.36 (18) schools with no physical presence in Minnesota engaged 38.1 exclusively in offering distance education courses or programs 38.2 that are located in and regulated by other states or 38.3 jurisdictions. 38.4 Sec. 34. [SUBMISSION OF RULES.] 38.5 At least 30 days prior to final adoption of rules 38.6 authorized under sections 18 and 32, the office must submit the 38.7 proposed rules to all members of the education committees of the 38.8 legislature. 38.9 Sec. 35. [REPEALER.] 38.10 Minnesota Statutes 1998, sections 141.25, subdivisions 9a, 38.11 9b, and 11; and 141.36, are repealed.