HF 2647

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2014 03:50pm

A bill for an act
relating to higher education; modernizing, streamlining, and clarifying various
statutes; eliminating unnecessary or redundant laws and rules; deleting
obsolete language and unnecessary verbiage; amending Minnesota Statutes
2012, sections 135A.051, subdivision 3; 135A.14, subdivision 6a; 136A.002;
136A.01, as amended; 136A.05, subdivision 1; 136A.06; 136A.08, subdivisions
2, 7; 136A.101, subdivisions 7, 7a, 7b, by adding a subdivision; 136A.121,
subdivisions 2, 9; 136A.125, subdivision 1; 136A.126, subdivisions 2, 4;
136A.1311; 136A.15, subdivision 8; 136A.16, subdivisions 1, 5; 136A.162;
136A.1701, subdivision 1; 136A.171; 136A.232; 136A.233, subdivisions 1,
4; 136A.65, subdivision 6; 136A.685; 136A.861, subdivision 6; 136F.01;
136F.02, subdivision 1; 136F.03, subdivision 1; 136F.04, subdivision 2;
136F.045; 136F.05; 136F.10; 136F.12; 136F.14; 136F.18; 136F.23; 136F.28,
subdivision 1; 136F.48; 136F.482; 136F.581, subdivision 1; 136F.60, subdivision
1; 136F.65; 136F.705; 136F.90, subdivision 1; 136F.92; 136F.93; 136F.94;
136F.95; 136F.96; 136F.97; 136F.98, subdivisions 1, 3; 136G.09, subdivision
8; 137.52; Minnesota Statutes 2013 Supplement, sections 136A.03; 136A.125,
subdivision 2; 136A.126, subdivision 1; 136A.129, subdivision 2; 136A.1795,
subdivisions 2, 3, 4, 5; 136A.1796, subdivisions 2, 3, 4; 136A.233, subdivision
2; 136A.861, subdivisions 1, 3; repealing Minnesota Statutes 2012, sections
135A.14, subdivision 6; 136A.05, subdivision 2; 136A.101, subdivision 2;
136A.15, subdivisions 3, 5; 136A.16, subdivisions 3, 4, 6, 7; 136A.17; 136A.62,
subdivision 2; 136F.11; 136F.44, subdivision 2; 136F.49; 136F.90, subdivision 6;
137.02, subdivision 1; 137.59; Minnesota Statutes 2013 Supplement, sections
136A.101, subdivision 3; 136A.15, subdivision 4; 136A.16, subdivision
10; Minnesota Rules, parts 4810.2100; 4810.2200; 4810.2300; 4810.2400;
4810.2500; 4810.2600; 4810.2700; 4810.2800; 4830.5000; 4830.5100;
4830.5200, subparts 1, 3; 4830.5300; 4830.5400.

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

Section 1.

Minnesota Statutes 2012, section 135A.051, subdivision 3, is amended to
read:

Subd. 3.

Applicability.

The provisions of this section apply to a student enrolled
in a deleted text begin technical college, community college, state university, and the University of deleted text end new text begin public
postsecondary institution in new text end Minnesota.

Sec. 2.

Minnesota Statutes 2012, section 135A.14, subdivision 6a, is amended to read:

Subd. 6a.

new text begin Hepatitis and new text end meningitis information.

Each public and private
postsecondary institution shall provide information on the new text begin transmission, treatment, and
prevention of hepatitis A, B, and C, and the new text end risks of meningococcal disease and on the
availability and effectiveness of any vaccine to deleted text begin each individual who is a first-time enrollee
and who resides in on-campus student housing deleted text end new text begin all persons who are first-time enrollees new text end .
The institution may provide the information in an electronic format. The institution must
consult with the Department of Health on the preparation of the informational materials
provided under this subdivision.

Sec. 3.

Minnesota Statutes 2012, section 136A.002, is amended to read:

136A.002 DEFINITIONS.

Subdivision 1.

Scope.

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

Subd. 2.

Office deleted text begin of Higher Education or office deleted text end .

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

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of the Office of
Higher Education.
new text end

new text begin Subd. 4. new text end

new text begin Province and provincial. new text end

new text begin "Province" and "provincial" mean the Canadian
province of Manitoba.
new text end

new text begin Subd. 5. new text end

new text begin Term. new text end

new text begin "Term" means a quarter or semester, or the equivalent.
new text end

Sec. 4.

Minnesota Statutes 2012, section 136A.01, as amended by Laws 2013, chapter
99, article 2, section 29, is amended to read:

136A.01 deleted text begin MINNESOTA deleted text end OFFICE OF HIGHER EDUCATION.

Subdivision 1.

Creation.

deleted text begin An office for higher education in the state of Minnesota, to
be known as deleted text end The deleted text begin Minnesota deleted text end Office of Higher Education deleted text begin , deleted text end is created with a commissioner
appointed by the governor with the advice and consent of the senate and serving at the
pleasure of the governor.

Subd. 2.

Responsibilities.

(a) The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end is
responsible for:

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

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

(3) negotiating and administering reciprocity agreements;

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

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

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

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

(b) The office may match individual student data from the student record enrollment
database with individual student financial aid data collected and maintained by the office
in order to audit or evaluate federal or state supported education programs as permitted by
United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
34, section 99.35. The office shall not release data that personally identifies parents or
students other than to employees and contractors of the office.

Sec. 5.

Minnesota Statutes 2013 Supplement, section 136A.03, is amended to read:

136A.03 EXECUTIVE OFFICERS; EMPLOYEES.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end shall be under the administrative control
of the commissioner. The commissioner shall serve in the unclassified service of the state
civil service. The commissioner, or the commissioner's designated representative, on
behalf of the office is authorized to sign contracts and execute all instruments necessary
or appropriate to carry out the purposes of sections 136A.01 to 136A.178 for the office.
The salary of the commissioner shall be established according to section 15A.0815. The
commissioner may appoint other professional employees who shall serve in the unclassified
service of the state civil service. All other employees shall be in the classified civil service.

An employee appointed by the commissioner to serve in the unclassified service as
provided in this section deleted text begin , is deleted text end new text begin must be new text end a person who has studied higher education or a related
field at the graduate level or has similar experience and who is qualified for a career in
financial aid and other aspects of higher education and for activities in keeping with
the planning and administrative responsibilities of the office and who is appointed to
assume responsibility for administration of educational programs or research in matters
of higher education.

Sec. 6.

Minnesota Statutes 2012, section 136A.05, subdivision 1, is amended to read:

Subdivision 1.

Cooperation.

All public institutions of higher education and all
state departments and agencies shall cooperate with and supply information requested by
the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end in order to enable it to carry out and perform
its duties. Private postsecondary institutions are requested to cooperate and provide
information.

Sec. 7.

Minnesota Statutes 2012, section 136A.06, is amended to read:

136A.06 FEDERAL FUNDS.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end is designated the state agency to apply
for, receive, accept, and disburse to both public and private institutions of higher education
all federal funds deleted text begin which deleted text end new text begin that new text end are allocated to the state of Minnesota to support higher
education programs, construction, or other activities and deleted text begin which deleted text end new text begin that new text end require administration
by a state higher education agency under deleted text begin the Higher Education Facilities Act of 1963, and
any amendments thereof, the Higher Education Act of 1965, and any amendments thereof,
and deleted text end any deleted text begin other deleted text end law deleted text begin which deleted text end new text begin enacted by the Congress of the United States that new text end provides funds
for higher education and requires administration by a state higher education agency
deleted text begin as enacted or may be enacted by the Congress of the United States deleted text end ; provided that no
commitment shall be made that deleted text begin shall bind deleted text end new text begin binds new text end the legislature to make appropriations
beyond current allocations of funds. The office may apply for, receive, accept, and
disburse all administrative funds available to the office for administering federal funds to
support higher education programs, construction, or other activities. The office also may
apply for, receive, accept, and disburse any research, planning, or program funds deleted text begin which
deleted text end new text begin that new text end are available for purposes consistent with the provisions of this chapter. In making
application for and administering federal funds the office may comply with any and all
requirements of federal law and federal rules and regulations to enable it to receive and
accept deleted text begin such deleted text end new text begin the new text end funds. The expenditure of deleted text begin any such deleted text end new text begin the new text end funds deleted text begin received deleted text end shall be governed
by the laws of the state, except insofar as federal regulations may otherwise provide. The
office may contract with both public and private institutions in administering federal
funds, and deleted text begin such deleted text end new text begin the new text end contracts deleted text begin shall deleted text end new text begin are new text end not deleted text begin be deleted text end subject to deleted text begin the provisions of deleted text end chapter 16C.
deleted text begin All such deleted text end new text begin The federal new text end money received by the office shall be deposited in the state treasury
and, subject to section 3.3005, deleted text begin are hereby deleted text end new text begin is new text end appropriated to it deleted text begin annually deleted text end for the purpose
for which deleted text begin such funds are deleted text end new text begin the money was new text end received. deleted text begin None of such moneys shall deleted text end new text begin The
appropriation does not new text end cancel deleted text begin but shall be deleted text end new text begin and is new text end available until expended.

Sec. 8.

Minnesota Statutes 2012, section 136A.08, subdivision 2, is amended to read:

Subd. 2.

Authorization.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end , in consultation
with the commissioner of management and budget and each affected public postsecondary
board, may enter into agreements, on subjects that include remission of nonresident
tuition for designated categories of students at public postsecondary institutions, with
appropriate state or provincial agencies and public postsecondary institutions in other
states or provinces. The agreements shall be for the purpose of the mutual improvement
of educational advantages for residents of this state and other states or provinces with
whom agreements are made.

Sec. 9.

Minnesota Statutes 2012, section 136A.08, subdivision 7, is amended to read:

Subd. 7.

Reporting.

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

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

(2) reciprocity and resident tuition rates at each institution;

(3) interstate payments and obligations for each state participating in the tuition
reciprocity program in the prior year; and

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

Sec. 10.

Minnesota Statutes 2012, section 136A.101, subdivision 7, is amended to read:

Subd. 7.

Student.

"Student" means a person who is enrolled for at least three credits
per deleted text begin quarter or semester, or the equivalent deleted text end new text begin term new text end , in a program or course of study that applies
to a degree, diploma, or certificate. Credit equivalencies assigned by an institution that are
applicable to federal Pell grant calculations shall be counted as part of a student's credit load.

Sec. 11.

Minnesota Statutes 2012, section 136A.101, subdivision 7a, is amended to read:

Subd. 7a.

Full time.

"Full time" means enrollment in a minimum of 15 credits per
deleted text begin quarter or semester, or the equivalent deleted text end new text begin term new text end .

Sec. 12.

Minnesota Statutes 2012, section 136A.101, subdivision 7b, is amended to
read:

Subd. 7b.

Half time.

"Half time" means enrollment in a minimum of six credits per
deleted text begin quarter or semester, or the equivalent deleted text end new text begin term new text end .

Sec. 13.

Minnesota Statutes 2012, section 136A.101, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Award year. new text end

new text begin "Award year" has the meaning given in the Higher
Education Act of 1965, title 4, section 481.20, as amended.
new text end

Sec. 14.

Minnesota Statutes 2012, section 136A.121, subdivision 2, is amended to read:

Subd. 2.

Eligibility for grants.

new text begin (a) new text end An applicant is eligible to be considered for
a grant, regardless of the applicant's sex, creed, race, color, national origin, or ancestry,
under sections 136A.095 to 136A.131 if the office finds that the applicant:

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

(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
and has met all requirements for admission as a student to an eligible college or technical
college of choice as defined in sections 136A.095 to 136A.131;

(3) has met the financial need criteria established in Minnesota Rules;

(4) is not in default, as defined by the office, of any federal or state student
educational loan; and

(5) is not more than 30 days in arrears in court-ordered child support that is collected
or enforced by the public authority responsible for child support enforcement or, if the
applicant is more than 30 days in arrears in court-ordered child support that is collected
or enforced by the public authority responsible for child support enforcement, but is
complying with a written payment agreement under section 518A.69 or order for arrearages.

new text begin (b) A student who withdraws from enrollment for active military service after
December 31, 2002, because the student was ordered to active military service as defined
in section 190.05, subdivision 5b or 5c, or who withdraws from enrollment for a major
illness, while under the care of a medical professional, that substantially limits the
student's ability to complete the term is entitled to an additional semester or the equivalent
of grant eligibility.
new text end

Sec. 15.

Minnesota Statutes 2012, section 136A.121, subdivision 9, is amended to read:

Subd. 9.

Awards.

An undergraduate student who meets the office's requirements
is eligible to apply for and receive a grant in any year of undergraduate study unless the
student has obtained a baccalaureate degree or previously has been enrolled full time
or the equivalent for eight semesters or the equivalent, excluding courses taken from a
Minnesota school or postsecondary institution which is not participating in the state grant
program and from which a student transferred no credit. deleted text begin A student who withdraws from
enrollment for active military service, or for a major illness, while under the care of a
medical professional, that substantially limits the student's ability to complete the term is
entitled to an additional semester or the equivalent of grant eligibility. deleted text end A student enrolled
in a two-year program at a four-year institution is only eligible for the tuition and fee
maximums established by law for two-year institutions.

Sec. 16.

Minnesota Statutes 2012, section 136A.125, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

A child care grant program is established under the
supervision of the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end . The program makes money
available to eligible students to reduce the costs of child care while attending an eligible
postsecondary institution. The office shall develop policies and adopt rules as necessary to
implement and administer the program.

Sec. 17.

Minnesota Statutes 2013 Supplement, section 136A.125, subdivision 2,
is amended to read:

Subd. 2.

Eligible students.

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

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

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

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

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

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

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

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

(b) A student who withdraws from enrollment for active military service new text begin after
December 31, 2002, because the student was ordered to active military service as defined
in section 190.05, subdivision 5b or 5c, new text end or for a major illness, while under the care of a
medical professional, that substantially limits the student's ability to complete the term
is entitled to an additional semester or the equivalent of grant eligibility and will be
considered to be in continuing enrollment status upon return.

Sec. 18.

Minnesota Statutes 2013 Supplement, section 136A.126, subdivision 1,
is amended to read:

Subdivision 1.

Student eligibility.

The commissioner deleted text begin of the Office of Higher
Education deleted text end shall establish procedures for the distribution of scholarships to a Minnesota
resident student as defined under section 136A.101, subdivision 8, who:

(1) is of one-fourth or more Indian ancestry;

(2) has applied for other existing state and federal scholarship and grant programs;

(3) is meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10;

(4) is not in default, as defined by the office, of a federal or state student educational
loan;

(5) if enrolled in an undergraduate program, is eligible or would be eligible to
receive a federal Pell Grant or a state grant based on the federal needs analysis and is
enrolled for nine semester credits per term or more, or the equivalent; new text begin and
new text end

(6) if enrolled in a graduate program, demonstrates a remaining financial need in
the award amount calculation and is enrolled, per term, on a half-time basis or more as
defined by the postsecondary institution deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (7) in the opinion of the commissioner of the Office of Higher Education, based
upon postsecondary institution recommendations, has the capabilities to benefit from
further education.
deleted text end

Sec. 19.

Minnesota Statutes 2012, section 136A.126, subdivision 2, is amended to read:

Subd. 2.

Eligible programs.

Scholarships must be for deleted text begin accredited degree programs
in accredited Minnesota colleges or universities or for courses in accredited Minnesota
business, technical, or vocational schools deleted text end new text begin enrollment at an eligible institution that is
accredited new text end . Scholarships may also be given to students attending deleted text begin Minnesota colleges
deleted text end new text begin eligible institutions new text end that are in candidacy status for obtaining full accreditation, and are
eligible for and receiving federal financial aid programs. Students are also eligible for
scholarships when enrolled deleted text begin as students deleted text end in deleted text begin Minnesota higher education deleted text end new text begin eligible new text end institutions
that have joint programs with other accredited higher education institutions.

Sec. 20.

Minnesota Statutes 2012, section 136A.126, subdivision 4, is amended to read:

Subd. 4.

Award amount.

(a) Each student shall be awarded a scholarship based
on the federal need analysis. Applicants are encouraged to apply for all other sources of
financial aid. The amount of the award must not exceed the applicant's cost of attendance,
as defined in subdivision 3, after deducting:

(1) the expected family contribution as calculated by the federal need analysis;

(2) the amount of a federal Pell Grant award for which the applicant is eligible;

(3) the amount of the state grant;

(4) the deleted text begin sum of all deleted text end federal Supplemental Educational Opportunity Grant deleted text begin , federal
Academic Competitiveness Grant, and federal Science and Mathematics Access to Retain
Talent Grant (SMART Grant) awards deleted text end ;

(5) the sum of all institutional grants, scholarships, tuition waivers, and tuition
remission amounts;

(6) the sum of all tribal scholarships;

(7) the amount of any other state and federal gift aid; and

(8) the amount of any private grants or scholarships.

(b) The award shall be paid directly to the postsecondary institution where the
student receives federal financial aid.

(c) Awards are limited as follows:

(1) the maximum award for an undergraduate is $4,000 per deleted text begin academic deleted text end new text begin award new text end year;

(2) the maximum award for a graduate student is $6,000 per deleted text begin academic deleted text end new text begin award new text end year; and

(3) the minimum award for all students is $100 per deleted text begin academic deleted text end new text begin award new text end year.

(d) Scholarships may not be given to any Indian student for more than three years of
study for a two-year degree, certificate, or diploma program or five years of study for a
four-year degree program at the undergraduate level and for more than five years at the
graduate level. Students may acquire only one degree per level and one terminal graduate
degree. Scholarships may not be given to any student for more than ten years including
five years of undergraduate study and five years of graduate study.

Sec. 21.

Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 2,
is amended to read:

Subd. 2.

Program established.

The office deleted text begin of Higher Education deleted text end shall administer
a greater Minnesota internship program through eligible institutions to provide credit at
the eligible institution for internships and tax credits for eligible employers who hire
interns for employment in greater Minnesota.

Sec. 22.

Minnesota Statutes 2012, section 136A.1311, is amended to read:

136A.1311 CASH FLOW.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end may ask the commissioner of management
and budget to lend general fund money to the grant account to ease cash flow difficulties.
The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end must first certify to the commissioner that there
will be adequate refunds to the account to repay the loan. The commissioner shall use the
refunds to make repayment to the general fund of the full amount loaned. Money necessary
to meet cash flow difficulties in the state grant program is appropriated to the commissioner
of management and budget for loans to the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end .

Sec. 23.

Minnesota Statutes 2012, section 136A.15, subdivision 8, is amended to read:

Subd. 8.

Eligible student.

"Eligible student" means a student who is officially
registered or accepted for enrollment at an eligible institution in Minnesota or a Minnesota
resident who is officially registered as a student or accepted for enrollment at an eligible
institution in another state or province. deleted text begin Eligible student, except for purposes of section
136A.1701, includes parents of an eligible student as the term "parent" is defined in the
Higher Education Act of 1965, as amended, and applicable regulations. Except for
the purposes of section 136A.1701, eligible student also includes students eligible for
auxiliary loans as the term "auxiliary" is defined in the Higher Education Act of 1965, as
amended, and applicable regulations. deleted text end An eligible student, for section 136A.1701, means a
student who gives informed consent authorizing the disclosure of data specified in section
136A.162, paragraph deleted text begin (b) deleted text end new text begin (c) new text end , to a consumer credit reporting agency.

Sec. 24.

Minnesota Statutes 2012, section 136A.16, subdivision 1, is amended to read:

Subdivision 1.

Designation.

Notwithstanding chapter 16C, the deleted text begin Minnesota deleted text end office
deleted text begin of Higher Education deleted text end is designated as the administrative agency for carrying out the
purposes and terms of sections 136A.15 to 136A.1702. The office may establish one
or more loan programs.

Sec. 25.

Minnesota Statutes 2012, section 136A.16, subdivision 5, is amended to read:

Subd. 5.

Agencies.

The office may contract with deleted text begin guarantee agencies, insurance
agencies deleted text end new text begin loan servicers new text end , collection agencies new text begin , credit bureaus new text end , or any other person, to carry
out the purposes of sections 136A.15 to 136A.1702.

Sec. 26.

Minnesota Statutes 2012, section 136A.162, is amended to read:

136A.162 CLASSIFICATION OF DATA.

(a) Except as provided in paragraphs (b) and (c), data on applicants for financial
assistance collected and used by the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end for student
financial aid programs administered by that office are private data on individuals as
defined in section 13.02, subdivision 12.

(b) Data on applicants may be disclosed to the commissioner of human services to the
extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5).

(c) The following data collected in the Minnesota supplemental loan program under
section 136A.1701 may be disclosed to a consumer credit reporting agency only if the
borrower and the cosigner give informed consent, according to section 13.05, subdivision
4, at the time of application for a loan:

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

(8) the number of late payments in previous 12 months;

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 27.

Minnesota Statutes 2012, section 136A.1701, subdivision 1, is amended to
read:

Subdivision 1.

Establishment of program.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher
Education deleted text end may provide for programs of loans which may be made in lieu of or in addition
to loans authorized under sections 136A.15 to 136A.1702 and applicable provisions of
federal law as provided in this section.

Sec. 28.

Minnesota Statutes 2012, section 136A.171, is amended to read:

136A.171 REVENUE BONDS; ISSUANCE; PROCEEDS.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end may issue revenue bonds to obtain funds
for loans made in accordance with the provisions of this chapter. The aggregate amount of
revenue bonds, issued directly by the office, outstanding at any one time, not including
refunded bonds or otherwise defeased or discharged bonds, shall not exceed $850,000,000.
Proceeds from the issuance of bonds may be held and invested by the office pending
disbursement in the form of loans. All interest and profits from the investments shall inure
to the benefit of the office and shall be available to the office for the same purposes as the
proceeds from the sale of revenue bonds including, but not limited to, costs incurred in
administering loans under this chapter and loan reserve funds.

Sec. 29.

Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 2,
is amended to read:

Subd. 2.

Establishment; administration.

(a) The commissioner deleted text begin of the Minnesota
Office of Higher Education deleted text end shall establish and administer a loan forgiveness program for
large animal veterinarians who:

(1) agree to practice in designated rural areas that are considered underserved; and

(2) work full time in a practice that is at least 50 percent involved with the care of
food animals.

(b) Appropriations made to the program do not cancel and are available until
expended.

Sec. 30.

Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 3,
is amended to read:

Subd. 3.

Eligibility.

(a) To be eligible to participate in the loan forgiveness program,
an individual must:

(1) be a veterinarian who has been awarded a veterinary medicine degree within
three years of submitting an application under this section, or be enrolled in the
veterinarian degree program and making satisfactory progress in the College of Veterinary
Medicine, University of Minnesota; and

(2) submit an application to the commissioner deleted text begin of the Minnesota Office of Higher
Education deleted text end in the form and manner prescribed by the commissioner.

(b) An applicant selected to participate must sign a contract agreeing to complete a
five-year service obligation to practice as required under subdivision 2, paragraph (a).

Sec. 31.

Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 4,
is amended to read:

Subd. 4.

Loan forgiveness.

(a) The commissioner deleted text begin of the Minnesota Office of
Higher Education deleted text end may select a maximum of five applicants each year for participation
in the loan forgiveness program, within the limits of available funding. Applicants are
responsible for securing their own qualified educational loans.

(b) The commissioner must select participants based on their suitability for
practice serving the designated rural area, as indicated by experience or training. The
commissioner must give preference to applicants closest to completing their training.

(c) The commissioner must make annual disbursements directly to the participant of
$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
for each year that a participant meets the service obligation required under subdivision 3,
paragraph (b), up to a maximum of five years.

(d) Before receiving loan repayment disbursements and as requested, the participant
must complete and return to the commissioner an affidavit of practice form provided by
the commissioner verifying that the participant is practicing as required under subdivision
2, paragraph (a). The participant must provide the commissioner with verification that the
full amount of loan repayment disbursement received by the participant has been applied
toward the designated loans. After each disbursement, verification must be received by
the commissioner and approved before the next loan repayment disbursement is made.

(e) Participants who move their practice remain eligible for loan repayment as long
as they practice as required under subdivision 2, paragraph (a).

Sec. 32.

Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 5,
is amended to read:

Subd. 5.

Penalty for nonfulfillment.

If a participant does not fulfill the required
minimum commitment of service required under subdivision 3, paragraph (b), the
commissioner deleted text begin of the Minnesota Office of Higher Education deleted text end must collect from the
participant the total amount paid to the participant under the loan forgiveness program
plus interest at a rate established according to section 270C.40. The commissioner must
deposit the money collected in the state general fund. The commissioner must allow
waivers of all or part of the money owed the commissioner as a result of a nonfulfillment
penalty if emergency circumstances prevented fulfillment of the service obligation.

Sec. 33.

Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 2,
is amended to read:

Subd. 2.

Eligibility; grant assistance.

(a) A tribally controlled college is eligible to
receive supplemental grant assistance from the office deleted text begin of Higher Education deleted text end , as provided in
this section, for nonbeneficiary student enrollment if the college is not otherwise eligible
to receive federal grant funding for those students under United States Code, title 25,
section 1808.

(b) The office shall make grants to tribally controlled colleges to defray the costs
of education associated with the enrollment of nonbeneficiary students. Grants made
pursuant to this section must be provided directly to the recipient college.

Sec. 34.

Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 3,
is amended to read:

Subd. 3.

Grant application.

To receive a grant under this section, a tribally
controlled college must submit an application in the manner required by the office deleted text begin of
Higher Education deleted text end . Upon submission of a completed application indicating that the tribally
controlled college is eligible, the office shall distribute to the college, during each year of
the biennium, a grant of $5,300 for each nonbeneficiary student on a full-time equivalent
basis. If the amount appropriated for grants under this section is insufficient to cover
the total amount of grant eligibility, the office shall distribute a prorated amount per
nonbeneficiary student on a full-time equivalent basis.

Sec. 35.

Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 4,
is amended to read:

Subd. 4.

Reporting by recipient institutions.

Each tribally controlled college
receiving a grant under this section shall provide to the office deleted text begin of Higher Education deleted text end ,
on an annual basis, an accurate and detailed account of the expenditures of the grant
funds received by the college, and a copy of the college's most recent audit report and
documentation of the enrollment status and ethnic status of each nonbeneficiary student
for which grant assistance is sought under this section.

Sec. 36.

Minnesota Statutes 2012, section 136A.232, is amended to read:

136A.232 ADMINISTRATION; AGREEMENTS WITH EDUCATIONAL
FACILITIES.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end shall develop and administer a work-study
program. The office shall enter into agreements with institutions of postsecondary
education.

Sec. 37.

Minnesota Statutes 2012, section 136A.233, subdivision 1, is amended to read:

Subdivision 1.

Allocation to institutions.

The deleted text begin Minnesota deleted text end office deleted text begin of Higher Education
deleted text end shall allocate work-study money to eligible postsecondary institutions according to the
resident full-time equivalent enrollment of all eligible postsecondary institutions that
apply to participate in the program, and the amount of the allocation that an institution
spent during the previous academic year. Each institution wishing to participate in the
work-study program must submit, in accordance with policies and procedures established
by the office, an estimate of the amount of funds needed by the institution. Any funds
allocated to an institution that exceed the actual need of the institution shall be reallocated
by the office to other institutions. An institution may carry forward or backward the same
percentage of its initial allocation that is authorized under federal work-study provisions.

Sec. 38.

Minnesota Statutes 2013 Supplement, section 136A.233, subdivision 2,
is amended to read:

Subd. 2.

Definitions.

For purposes of sections 136A.231 to 136A.233, the words
defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
institution.

(b) "Minnesota resident" means a student who meets the conditions in section
136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a
postsecondary institution as determined by a postsecondary institution according to
guidelines established by the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end .

(d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
nonsectarian agency or state institution located in the state of Minnesota, a disabled person
or a person over 65 who employs a student to provide personal services in or about the
person's residence, or a private, for-profit employer employing a student as an intern in a
position directly related to the student's field of study that will enhance the student's
knowledge and skills in that field.

(e) "Eligible postsecondary institution" means any postsecondary institution eligible
for participation in the Minnesota state grant program as specified in section 136A.101,
subdivision 4.

(f) "Independent student" has the meaning given under title IV of the Higher
Education Act of 1965, as amended, and applicable regulations.

(g) "Half time" for undergraduates has the meaning given in section 136A.101,
subdivision 7b, and for graduate students is defined by the institution.

Sec. 39.

Minnesota Statutes 2012, section 136A.233, subdivision 4, is amended to read:

Subd. 4.

Cooperation with local schools.

Each campus using the state work study
program is encouraged to cooperate with its local public elementary and secondary schools
to place college work study students in activities in the schools, such as tutoring. Students
must be placed in meaningful activities that directly assist students in kindergarten through
grade 12 in meeting graduation standards deleted text begin including the profiles of learning deleted text end . College
students shall work under direct supervision; therefore, school hiring authorities are not
required to request criminal background checks on these students under section 123B.03.

Sec. 40.

Minnesota Statutes 2012, section 136A.65, subdivision 6, is amended to read:

Subd. 6.

Name.

A degree-granting school may use the term "academy" or "institute"
in its name without meeting any additional requirements. A school may use the term
"college" in its name if it offers at least one program leading to an associate new text begin or higher
new text end degree. A school may use the term "university" in its name if it offers at least one program
leading to a master's or doctorate degree.

Sec. 41.

Minnesota Statutes 2012, section 136A.685, is amended to read:

136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR
MISREPRESENTATION.

The office shall not provide registration or degree or name approval to a
school if there has been a criminal, civil, or administrative adjudication of fraud or
misrepresentation in Minnesota or in another state or jurisdiction against the school or its
owner, officers, agents, or sponsoring organization. deleted text begin Such an deleted text end new text begin The new text end adjudication of fraud or
misrepresentation deleted text begin shall be deleted text end new text begin is new text end sufficient cause for the office to determine that a school:

(1) does not qualify for exemption under section 136A.657; or

(2) is not approved to grant degrees or to use the term "academy," new text begin "college,"
new text end "institute," or "university" in its name.

Sec. 42.

Minnesota Statutes 2013 Supplement, section 136A.861, subdivision 1,
is amended to read:

Subdivision 1.

Grants.

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

(1) academic counseling;

(2) mentoring;

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

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

(5) academic enrichment activities;

(6) tutoring;

(7) career awareness and exploration;

(8) orientation to college life;

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

(10) financial aid counseling.

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

(c) Grants shall be awarded for one year and may be renewed for a second year
with documentation to the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end of successful program
outcomes.

Sec. 43.

Minnesota Statutes 2013 Supplement, section 136A.861, subdivision 3,
is amended to read:

Subd. 3.

Application process.

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

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

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

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

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

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

(5) other information as identified by the commissioner.

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

Sec. 44.

Minnesota Statutes 2012, section 136A.861, subdivision 6, is amended to read:

Subd. 6.

Program evaluation.

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

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

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

Sec. 45.

Minnesota Statutes 2012, section 136F.01, is amended to read:

136F.01 DEFINITIONS.

Subdivision 1.

Scope.

For the purpose of this chapter, the following terms have
the meanings given them.

Subd. 2.

Board deleted text begin or board of trustees deleted text end .

"Board" deleted text begin or "board of trustees" deleted text end means the
Board of Trustees of the Minnesota State Colleges and Universities.

Subd. 3.

Chancellor.

"Chancellor" means the chancellor of the Minnesota State
Colleges and Universities.

Subd. 4.

State colleges and universities.

"State colleges and universities" means
Minnesota state colleges and universities governed by the board deleted text begin of trustees deleted text end .

Subd. 5.

Student activities.

"Student activities" means lectures, concerts, and other
functions contributing to the mental, moral, and cultural development of the student body
and community in which they live, athletic activities, including intercollegiate contests,
forensics, dramatics, and such other activities of any nature as in the opinion of the board
contribute to the educational, cultural, or physical well being of the student body.

Sec. 46.

Minnesota Statutes 2012, section 136F.02, subdivision 1, is amended to read:

Subdivision 1.

Membership.

The board consists of 15 members appointed by the
governor, including three members who are students who have attended an institution for
at least one year and are deleted text begin currently deleted text end enrolled new text begin at the time of appointment new text end at least half time
in a degree, diploma, or certificate program in an institution governed by the board. The
student members shall include one member from a community college, one member from
a state university, and one member from a technical college. One member representing
labor must be appointed after considering the recommendations made under section
136F.045. The governor is not bound by the recommendations. Appointments to the
board are with the advice and consent of the senate. At least one member of the board
must be a resident of each congressional district. All other members must be appointed to
represent the state at large. In selecting appointees, the governor must consider the needs
of the board deleted text begin of trustees deleted text end and the balance of the board membership with respect to labor and
business representation and racial, gender, geographic, and ethnic composition.

A commissioner of a state agency may not serve as a member of the board.

Sec. 47.

Minnesota Statutes 2012, section 136F.03, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

A Candidate Advisory Council for the board deleted text begin of Trustees of
the Minnesota State Colleges and Universities deleted text end shall assist the governor in determining
criteria for, and identifying and recruiting qualified candidates for, nonstudent membership
on the board.

Sec. 48.

Minnesota Statutes 2012, section 136F.04, subdivision 2, is amended to read:

Subd. 2.

Criteria.

After consulting with the deleted text begin board of Trustees deleted text end Candidate Advisory
Council, the student associations shall jointly develop a statement of the selection criteria
to be applied to potential candidates.

Sec. 49.

Minnesota Statutes 2012, section 136F.045, is amended to read:

136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION
PROCESS.

The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to
be recommended to the governor for appointment to the board. The organization must
develop a process for selecting candidates, and a statement of selection criteria for board
membership that is consistent with the requirements under section 136F.02, subdivision 1.
The organization must recommend at least two and no more than four candidates to the
governor deleted text begin beginning in 2010 and deleted text end every six years deleted text begin thereafter deleted text end new text begin or sooner if vacancies in the
labor seat occur new text end . Recommendations must be made to the governor and to the chairs and
ranking minority members of the legislative committees with primary jurisdiction over
higher education policy and finance by April 15 of the year in which the governor makes
appointments to the board. The governor is not bound by the recommendations.

Sec. 50.

Minnesota Statutes 2012, section 136F.05, is amended to read:

136F.05 MISSIONS.

The mission of the board is to provide programs of study that meet the needs
of students for occupational, general, baccalaureate, and graduate education. The state
universities, community colleges, and technical colleges shall have distinct missions
as provided in section 135A.052, subdivision 1. Within that statutory definition and
subject to the approval of the board, each community college, state university, and
technical college may develop its own distinct campus mission. The board shall develop
administrative arrangements that make possible the efficient use of the facilities and staff
of the technical colleges, community colleges, and state universities for providing these
several different programs of study, so that students may have the benefit of improved
and broader course offerings, ease of transfer among schools and programs, integrated
course credit, coordinated degree programs, and coordinated financial aid. deleted text begin In carrying out
the merger of the three separate systems, deleted text end The board shall control administrative costs by
eliminating duplicative administrative positions and course offerings.

Sec. 51.

Minnesota Statutes 2012, section 136F.10, is amended to read:

136F.10 DESIGNATION.

The following are designated as the Minnesota State Colleges and Universities: the
deleted text begin community deleted text end new text begin state community, technical, and consolidated new text end colleges located at new text begin Alexandria,
Albert Lea, Anoka, new text end Austin, new text begin Bemidji, new text end Bloomington, Brainerd, Brooklyn Park, new text begin Cambridge,
Canby, new text end Cloquet, Coon Rapids, new text begin Detroit Lakes, Duluth, East Grand Forks, Eden Prairie,
new text end Ely, new text begin Eveleth, Faribault, new text end Fergus Falls, Grand Rapids, new text begin Granite Falls, new text end Hibbing, new text begin Hutchinson,
new text end International Falls, Inver Grove Heights, new text begin Jackson, Mahtomedi, new text end Minneapolis, new text begin Moorhead,
North Mankato, Owatonna, Pine City, Pipestone, Red Wing, new text end Rochester, new text begin Rosemount,
St. Cloud, St. Paul, Staples, new text end Thief River Falls, Virginia, new text begin Wadena, new text end White Bear Lake,
Willmar, new text begin Winona, new text end and Worthington; deleted text begin the community college centers located at Cambridge,
Duluth, and Owatonna; deleted text end new text begin and new text end the state universities located at Bemidji, Mankato, Marshall,
Moorhead, St. Cloud, Winona, and the deleted text begin Twin Cities metropolitan area; and the technical
colleges located at Alexandria, Albert Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn
Park, Canby, Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, Faribault,
Granite Falls, Hibbing, Hutchinson, Jackson, Minneapolis, Mahtomedi, Moorhead, North
Mankato, Pine City, Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul,
Staples, Thief River Falls, Wadena, Willmar, and Winona deleted text end new text begin seven-county metropolitan area new text end .

Sec. 52.

Minnesota Statutes 2012, section 136F.12, is amended to read:

136F.12 FOND DU LAC CAMPUS.

Subdivision 1.

Unique missions.

The Fond du Lac campus has a unique mission
among two-year colleges to serve the lower division general education needs in Carlton
and south St. Louis Counties, and the education needs of American Indians throughout the
state and especially in northern Minnesota. The campus has a further unique mission to
provide programs in support of its federal land grant status. Accordingly, while the college
is governed by the board deleted text begin of Trustees deleted text end , its governance is accomplished in conjunction with
the board of directors of Fond du Lac Tribal College.

Subd. 2.

Selected programs.

Notwithstanding section 135A.052, subdivision
1, to better meet the education needs of Minnesota's American Indian students, and
in furtherance of the unique missions provided in subdivision 1, Fond du Lac Tribal
and Community College may offer a baccalaureate program in elementary education, as
approved by the board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end , and
the board of directors of Fond du Lac Tribal and Community College.

Subd. 3.

Bargaining unit assignment.

Notwithstanding section 179A.10,
subdivision 2, the state university instructional unit shall include faculty who teach upper
division courses at the Fond du Lac Tribal and Community College.

Sec. 53.

Minnesota Statutes 2012, section 136F.14, is amended to read:

136F.14 CAMPUS MERGER OR REORGANIZATION.

The board may merge or reorganize campuses deleted text begin or centers deleted text end for the purpose of increased
efficiency, use of personnel, placement of programs, student access, and other needs as
determined by the board. The board shall report its action to the legislature.

Sec. 54.

Minnesota Statutes 2012, section 136F.18, is amended to read:

136F.18 CAMPUS CLOSING.

The board may close a campus deleted text begin or center deleted text end under its jurisdiction according to policies
adopted by the board. Prior to closing a campus deleted text begin or center deleted text end , the board shall hold a public
hearing on the issue in the area which would be affected by the closing. At the hearing
affected persons shall have an opportunity to present testimony.

Sec. 55.

Minnesota Statutes 2012, section 136F.23, is amended to read:

136F.23 STUDENT ASSOCIATIONS; PURCHASING AUTHORITY.

Notwithstanding chapter 16A or 16C, the student associations recognized by the
board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end may purchase goods
or materials through state purchasing authority for the ordinary day-to-day operations of
the associations. The student associations must be nonprofit 501(c)(3) organizations in
order to qualify for this authority. The Department of Administration may require that the
purchase documents be approved by appropriate officials in the board's central office.

Sec. 56.

Minnesota Statutes 2012, section 136F.28, subdivision 1, is amended to read:

Subdivision 1.

Grants.

A Southwest Asia veteran who enrolls in a technical college
program, and who is a Minnesota resident whose entire education has not included
completion of at least one technical college program is eligible for a state grant of $500
per year if the veteran has GI Montgomery Bill benefits, or $1,000 per year if the veteran
does not have GI Montgomery Bill benefits, until the veteran has completed the lesser of
(1) 115 credits in a technical college program, or (2) one technical college program. The
grant is based on full-time attendance and shall be prorated if the student is attending less
than full time. To be eligible for the tuition relief, a veteran deleted text begin who is discharged before July
1, 1993, must enroll in a technical college by July 1, 1995, and a veteran who is discharged
on or after July 1, 1993, deleted text end must enroll in a technical college within two years of the date
of discharge. All veterans enrolled under this program must maintain a minimum of six
credits per quarter. Total grants may not exceed the available appropriation.

Sec. 57.

Minnesota Statutes 2012, section 136F.48, is amended to read:

136F.48 EMPLOYER-PAID HEALTH INSURANCE.

(a) This section applies to a person who:

(1) retires from the Minnesota State Colleges and Universities system with at least
ten years of combined service credit in a system under the jurisdiction of the board deleted text begin of
Trustees of the Minnesota State Colleges and Universities deleted text end ;

(2) was employed on a full-time basis immediately preceding retirement as a
faculty member or as an unclassified administrator in the Minnesota State Colleges and
Universities system;

(3) begins drawing a retirement benefit from the Individual Retirement Account Plan
or an annuity from the Teachers Retirement Association, from the General State Employees
Retirement Plan or the Unclassified State Employees Retirement Program of the
Minnesota State Retirement System, or from a first class city teacher retirement plan; and

(4) returns to work on not less than a one-third time basis and not more than a
two-thirds time basis in the system from which the person retired under an agreement.

(b) Initial participation, the amount of time worked, and the duration of participation
under this section must be mutually agreed upon by the president of the institution where
the person returns to work and the employee. The president may require up to one-year
notice of intent to participate in the program as a condition of participation under this
section. The president shall determine the time of year the employee shall work. The
employer or the president may not require a person to waive any rights under a collective
bargaining agreement as a condition of participation under this section.

(c) For a person eligible under paragraphs (a) and (b), the employing board shall
make the same employer contribution for hospital, medical, and dental benefits as would
be made if the person were employed full time.

(d) For work under paragraph (a), a person must receive a percentage of the person's
salary at the time of retirement that is equal to the percentage of time the person works
compared to full-time work.

(e) If a collective bargaining agreement covering a person provides for an early
retirement incentive that is based on age, the incentive provided to the person must be
based on the person's age at the time employment under this section ends. However, the
salary used to determine the amount of the incentive must be the salary that would have
been paid if the person had been employed full time for the year immediately preceding
the time employment under this section ends.

(f) A person who returns to work under this section is a member of the appropriate
bargaining unit and is covered by the appropriate collective bargaining contract. Except
as provided in this section, the person's coverage is subject to any part of the contract
limiting rights of part-time employees.

Sec. 58.

Minnesota Statutes 2012, section 136F.482, is amended to read:

136F.482 APPLICATION OF OTHER LAWS.

Unilateral implementation of section 136F.481 by the board deleted text begin of Trustees of the
Minnesota State Colleges and Universities deleted text end , by the chancellor, or by a president of a college
or university is not an unfair labor practice under chapter 179A.

Sec. 59.

Minnesota Statutes 2012, section 136F.581, subdivision 1, is amended to read:

Subdivision 1.

Authority for purchases and contracts.

The board and the colleges
and universities are subject to the provisions of section 471.345. In addition to the
contracting authority under this chapter, the board deleted text begin of Trustees deleted text end may utilize any contracting
options available to the commissioner of administration under chapter 16A, 16B, or 16C.

Sec. 60.

Minnesota Statutes 2012, section 136F.60, subdivision 1, is amended to read:

Subdivision 1.

Purchase of neighboring property.

The board may purchase
property adjacent to or in the vicinity of the campuses as necessary for the development of
a state college or university. Before taking action, the board shall consult with the chairs of
the senate Finance Committee and the house of representatives Ways and Means Committee
about the proposed action. The board shall explain the need to acquire property, specify
the property to be acquired, and indicate the source and amount of money needed for the
acquisition. The deleted text begin amount deleted text end new text begin funds new text end needed may be spent from sums previously appropriated
for purposes of the state colleges and universities, including, but not limited to, general
fund appropriations for instructional or noninstructional expenditures, general fund
appropriations carried forward, or state college and university activity fund appropriations.
The board may pay relocation costs, at its discretion, when acquiring property.

Sec. 61.

Minnesota Statutes 2012, section 136F.65, is amended to read:

136F.65 ACCEPTANCE OF FEDERAL MONEY.

The board deleted text begin of Trustees deleted text end is hereby designated the state agency empowered to accept
any and all money provided for or made available to this state by the United States of
America or any department or agency thereof for the construction and equipping of any
building under the control of the board deleted text begin of Trustees deleted text end in accordance with the provisions of
federal law and any rules or regulations promulgated thereunder and are further authorized
to do any and all things required of this state by such federal law and the rules and
regulations promulgated thereunder in order to obtain such federal money.

Sec. 62.

Minnesota Statutes 2012, section 136F.705, is amended to read:

136F.705 UNDERGRADUATE TUITION GUARANTEE PLAN.

(a) The board deleted text begin of trustees deleted text end is encouraged to offer entering students a plan providing
stable tuition for students pursuing two-year or four-year degrees that can provide students
a tuition option designed to meet the goals in this section.

(b) A Minnesota resident student who first enrolls in a degree program at a state
college or university beginning in the spring of 2012 or later is guaranteed a stable tuition
for up to four consecutive academic years.

(c) For an undergraduate student enrolled in a baccalaureate degree program at a
state university, the tuition charged to the student for each semester of enrollment during
a four-year period, beginning with the first semester of enrollment, must not exceed the
amount of tuition that the student was charged for the first semester of enrollment. For a
student who continues to be enrolled after four consecutive academic years, the tuition
rate for each semester in excess of four years is equal to the tuition rate paid by new
enrollees at the state university.

(d) For an undergraduate student enrolled in an associate degree program at a college,
the tuition charged to the student for each semester of enrollment during a two-year period,
beginning with the first semester of enrollment, must not exceed the amount of tuition that
the student was charged for the first semester of enrollment. For a student who continues
to be enrolled after two consecutive academic years, the tuition rate for each semester in
excess of two years is equal to the tuition rate for new enrollees at the college.

(e) Time limits for the stable tuition plan under this section do not apply to a student
in the military while the student is on active military duty.

Sec. 63.

Minnesota Statutes 2012, section 136F.90, subdivision 1, is amended to read:

Subdivision 1.

Duties.

For state colleges and universities, the board deleted text begin of Trustees of
the Minnesota State Colleges and Universities deleted text end may:

(1) acquire by purchase or otherwise, construct, complete, remodel, equip, operate,
control, and manage residence halls, dormitories, dining halls, student union buildings,
parking facilities, and any other similar revenue-producing buildings of such type and
character as the board finds necessary for the good and benefit of state colleges and
universities, and may acquire property whether real, personal, or mixed, by gift, purchase,
or otherwise; provided that no contract for the construction of any building shall be
entered into until financing has been approved by the legislature;

(2) maintain and operate any buildings or structures and charge for their use, and
conduct any activities that are commonly conducted in connection with the buildings
or structures;

(3) enter into contracts for the purposes of sections 136F.90 to 136F.98;

(4) acquire building sites and buildings or structures by gift, purchase, or otherwise
and pledge the revenues from them for the payment of any bonds issued for that purpose
as provided in sections 136F.90 to 136F.98;

(5) borrow money and issue and sell bonds in an amount or amounts the legislature
authorizes for the purpose of acquiring, constructing, completing, remodeling, or equipping
any buildings or structures, and acquiring sites, and refund and refinance the bonds by the
issuance and sale of refunding bonds when the board finds that it is in the public interest.
The bonds shall be sold and issued by the board in the manner and upon the terms and
conditions provided by chapter 475, except as otherwise provided in this section. The
bonds are payable only from and secured by an irrevocable pledge of the revenues to be
derived from the operation of any buildings or structures acquired, constructed, completed,
remodeled, or equipped in whole or in part with the proceeds of the bonds and from other
income and revenues described in section 136F.92, clause (1), the board by resolution
specifies, and notwithstanding this limitation all bonds issued under sections 136F.90 to
136F.98 shall have the qualities of negotiable instruments under the laws of this state. The
legislature shall not appropriate money from the general fund to pay for these bonds.

Sec. 64.

Minnesota Statutes 2012, section 136F.92, is amended to read:

136F.92 RESOLUTION OF BOARD.

Upon the determination by the board deleted text begin of Trustees of the Minnesota State Colleges and
Universities deleted text end or its successor to acquire, construct, complete, remodel, or equip any student
residence halls, dormitories, dining halls, student union buildings, parking facilities, or
other similar revenue-producing building or buildings, the board or its successor shall adopt
a resolution describing generally the contemplated project, the estimated cost, including
legal, engineering and financial expenses and interest on the bonds during the period of
constructing the project and for six months thereafter, fixing the amount of the bonds,
the maturity or maturities, the interest rate, and all details in respect of the bonds. The
resolution shall contain covenants as may be determined by the board or its successor as to:

(1) the pledging of all or any portion of the proceeds of any fees imposed upon
students for student activities, student facilities, or for other purposes, and the net revenues
from other buildings or facilities heretofore or hereafter constructed or acquired at any
state university as additional security for the payment of the bonds;

(2) the regulation as to the use of the buildings or structures to assure maximum
use or occupancy;

(3) the amount and kind of insurance to be carried, including use and occupancy
insurance, the cost of which shall be payable only from the revenues to be derived from
the buildings or structures;

(4) the operation, maintenance, management, accounting and auditing, and the
keeping of records, reports and audits of the buildings or structures;

(5) the obligation of the board or its successor to maintain the buildings or structures
in good condition and to operate them in an economical and efficient manner;

(6) the amendment or modification of the resolution authorizing the issuance of any
bonds, and the manner, terms and conditions, and the amount or percentage of assenting
bonds necessary to effectuate the amendment or modification; and

(7) other covenants as may be deemed necessary or desirable to assure the prompt
and punctual payment of all bonds issued under sections 136F.90 to 136F.98.

Sec. 65.

Minnesota Statutes 2012, section 136F.93, is amended to read:

136F.93 STUDENT ACTIVITIES, FEES CHARGED.

Whenever bonds are issued as provided in sections 136F.90 to 136F.98, it shall be
the duty of the board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end to
establish charges or fees, including without limitation fees for student activities and fees
for student facilities, for the use of any buildings or structures sufficient at all times to pay
the principal of and interest on the bonds and to create and maintain suitable reserves for
them and the necessary expenses of their operation and maintenance. All revenues derived
from their operation shall be set aside in a separate fund and accounts and be irrevocably
pledged for and used only to pay the principal of and interest upon the bonds issued for the
purpose or purposes set forth and described in the resolution authorizing the issuance of
the bonds, and the necessary expenses of the operation and maintenance of the buildings
and structures; and the charges and fees shall be sufficient at all times for these purposes.

Sec. 66.

Minnesota Statutes 2012, section 136F.94, is amended to read:

136F.94 SPECIAL REVENUE FUND.

(a) The gross total income derived from the sale of bonds, and receipts and income
derived from charges or fees, rentals, and all other revenue established for the use and
service of any buildings or structures shall, within three days after their receipt, be paid to
and held by the treasurer of the board deleted text begin of Trustees of the Minnesota State Colleges and
Universities deleted text end as a special fund known as, "The Board of Trustees of the Minnesota State
Colleges and Universities Revenue Fund." The treasurer shall be custodian of the special
fund, which fund shall be held and disbursed for the purposes provided in sections 136F.90
to 136F.98. The special fund shall be protected by a corporate surety bond executed by
the treasurer of the board with a surety authorized to do business under the laws of the
state of Minnesota. The amount of the bond shall be fixed by resolution of the board
or its successor and may be increased or diminished at any time. The premiums of the
bonds shall be payable from "The Board of Trustees of the Minnesota State Colleges and
Universities Revenue Fund" and charged as an item of maintenance expense.

(b) A certified copy of each resolution providing for the issuance of bonds under
sections 136F.90 to 136F.98 shall be filed with the treasurer of the board, and it shall be the
duty of the treasurer to keep and maintain separate accounts in the special fund for each
bond issue in accordance with the covenants and the directions set out in the resolution
providing for the issuance of the bonds and to disburse funds from the proper account for
the payment of the principal of and interest on the bonds in accordance with the directions
and covenants of the resolution authorizing the issue. All disbursements for maintenance
and operation costs shall be made from the proper maintenance and operation account
by order of the board or its successor in accordance with the covenants set out in the
resolution authorizing the issuance of bonds. All disbursements for construction costs
shall be made from a separate account in the special fund by order of the board or its
successor in accordance with the covenants set out in the resolution authorizing the bonds.

Sec. 67.

Minnesota Statutes 2012, section 136F.95, is amended to read:

136F.95 ALLOCATION OF RECEIPTS.

All moneys in the board deleted text begin of Trustees of the Minnesota State Colleges and Universities
deleted text end revenue fund and all income from the operation of residence halls, dormitories, dining
halls, student union buildings, parking facilities and other revenue producing buildings
and structures are appropriated first to the payment of expenses of the operation of the
facilities from which the revenues so appropriated are derived and second to the payment
of the obligations authorized by sections 136F.90 to 136F.98.

Sec. 68.

Minnesota Statutes 2012, section 136F.96, is amended to read:

136F.96 ADMINISTRATION.

The administration of sections 136F.90 to 136F.98 shall be under the board deleted text begin of
Trustees of the Minnesota State Colleges and Universities deleted text end independent of other authority
and notwithstanding chapters 16A, 16B, and 16C.

Sec. 69.

Minnesota Statutes 2012, section 136F.97, is amended to read:

136F.97 CONTRACTS OF BOARD, PERFORMANCE COMPELLED.

(a) The provisions of sections 136F.90 to 136F.98 and of any resolution or other
proceedings authorizing the issuance of bonds shall constitute a contract with the holders
of the bonds and the provisions shall be enforceable either in law or in equity, by suit,
action, mandamus or other proceeding in any court of competent jurisdiction to enforce or
compel the performance of any duties required by sections 136F.90 to 136F.98 and any
resolution authorizing the issuance of bonds, including the establishment of sufficient
charges or fees for use of any buildings or structures and the application of the income and
revenue from them; and it shall be the duty of the board deleted text begin of Trustees of the Minnesota State
Colleges and Universities deleted text end or its successor upon the issuance of any bonds under sections
136F.90 to 136F.98 to establish by resolution from time to time the fees or charges to be
made for the use of any buildings or structures, which fees or charges shall be adjusted
from time to time in order to always provide sufficient income for payment of the principal
of and interest on the bonds issued as provided for in sections 136F.90 to 136F.98, and
for the necessary expenses of operation and maintenance.

(b) If the board deleted text begin of Trustees of the Minnesota State Colleges and Universities deleted text end is
abolished, all contracts made by the board and all things done or actions taken by the
board under sections 136F.90 to 136F.98 shall be deemed to be contracts of, actions taken
and things done by its successor and the successor shall be bound by all contracts, actions
taken and things done by the board and subject to all the obligations and duties of the
board under sections 136F.90 to 136F.98.

Sec. 70.

Minnesota Statutes 2012, section 136F.98, subdivision 1, is amended to read:

Subdivision 1.

Issuance of bonds.

The board deleted text begin of Trustees of the Minnesota State
Colleges and Universities deleted text end or a successor may issue revenue bonds under sections 136F.90
to 136F.97 whose aggregate principal amount at any time may not exceed $405,000,000,
and payable from the revenue appropriated to the fund established by section 136F.94,
and use the proceeds together with other public or private money that may otherwise
become available to acquire land, and to acquire, construct, complete, remodel, and equip
structures or portions thereof to be used for dormitory, residence hall, student union,
food service, parking purposes, or for any other similar revenue-producing building or
buildings of such type and character as the board finds desirable for the good and benefit
of the state colleges and universities. Before issuing the bonds or any part of them, the
board shall consult with and obtain the advisory recommendations of the chairs of the
house of representatives Ways and Means Committee and the senate Finance Committee
about the facilities to be financed by the bonds.

Sec. 71.

Minnesota Statutes 2012, section 136F.98, subdivision 3, is amended to read:

Subd. 3.

Successor.

For the purposes of this section, the board deleted text begin of Trustees of the
Minnesota State Colleges and Universities deleted text end is the successor to the State University Board.

Sec. 72.

Minnesota Statutes 2012, section 136G.09, subdivision 8, is amended to read:

Subd. 8.

Maximum account balance limit.

(a) When a contribution is made, the
total account balance of all accounts held for the same beneficiary, including matching
grant accounts, must not exceed the maximum account balance limit as determined under
this subdivision.

(b) The office must establish a maximum account balance limit. The office must
adjust the maximum account balance limit, as necessary, or on January 1 of each year.
The maximum account balance limit must not exceed the amount permitted for the plan to
qualify as a qualified tuition program under section 529 of the Internal Revenue Code. deleted text begin For
calendar years 2004 and 2005, the maximum account balance limit is $235,000.
deleted text end

(c) If the total account balance of all accounts held for a single beneficiary reaches
the maximum account balance limit prior to the end of that calendar year, the beneficiary
may receive an applicable matching grant for that calendar year.

Sec. 73.

Minnesota Statutes 2012, section 137.52, is amended to read:

137.52 RECREATIONAL PROGRAM ASSESSMENT.

deleted text begin (a) The commissioner of natural resources, in cooperation with the Board of Regents
of the University of Minnesota, shall submit to the governor and the legislature by January
15, 2007, an assessment of the short-term and long-term programmatic plans for the
development of the land identified in section 137.50, subdivision 6. The assessment shall
include, but is not limited to, a timeline for providing the recreational opportunities, and
the needed restoration including native species of local ecotype, measurable outcomes,
and anticipated costs. The assessment must also include an evaluation of the opportunities
to foster small-scale farm-to-market vegetable farming. The commissioner of natural
resources shall consult with interested stakeholders, including Dakota County, to assist
in the development of the plan.
deleted text end

deleted text begin (b) deleted text end The board shall, until the issue is resolved, report annually to the legislature on
or before February 1, on its efforts and the efforts of the Department of Defense to remedy
contamination of the university land caused by activities occurring prior to the University
of Minnesota acquiring the land.

deleted text begin (c) The commissioner of natural resources, in consultation with the Pollution Control
Agency, shall report to the legislature by January 7, 2007, on what entities are responsible
for remediating pollution on the university land that occurred prior to May 25, 2006.
deleted text end

deleted text begin (d) The commissioner of natural resources, in cooperation with the board, shall
submit to the governor and the legislature by January 7, 2007, a report regarding the
implementation of section 137.51 and any recommendations for changes in section 137.51
necessary to carry out the intent of that section. The report must, among other things,
specifically address the issue of whether a process or mechanism is necessary to resolve
disputes between the University of Minnesota, the state, and other parties regarding uses
of the university land.
deleted text end

deleted text begin (e) The commissioner of natural resources must communicate with interested
parties, including the local government units that contain any part of the university land,
regarding the intended activities of the department with respect to the university land.
deleted text end

Sec. 74. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin (a) Except when amended according to this act, the revisor shall change the phrases
"Office of Higher Education" and "Minnesota Office of Higher Education" to "office"
wherever they appear in Minnesota Statutes, chapter 136A.
new text end

new text begin (b) The revisor of statutes shall renumber Minnesota Statutes, section 135A.61
as section 136A.862. The revisor shall make any necessary cross-reference changes in
Minnesota Statutes or Minnesota Rules consistent with this renumbering.
new text end

new text begin (c) Except when amended according to this act, the revisor shall change the
phrases "Board of Trustees" and "Board of Trustees of the Minnesota State College and
Universities" to "board" wherever they appear in Minnesota Statutes, chapter 136F.
new text end

new text begin (d) The revisor of statutes shall make all necessary cross-reference changes in
Minnesota Statutes consistent with the amendments and repealers in this act. The revisor
shall make changes to sentence structure to preserve the meaning of the text.
new text end

Sec. 75. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2012, sections 135A.14, subdivision 6; 136A.05, subdivision
2; 136A.101, subdivision 2; 136A.15, subdivisions 3 and 5; 136A.16, subdivisions 3, 4,
6, and 7; 136A.17; 136A.62, subdivision 2; 136F.11; 136F.44, subdivision 2; 136F.49;
136F.90, subdivision 6; 137.02, subdivision 1; and 137.59, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2013 Supplement, sections 136A.101, subdivision 3;
136A.15, subdivision 4; and 136A.16, subdivision 10, new text end new text begin are repealed.
new text end

new text begin (c) new text end new text begin Minnesota Rules, parts 4810.2100; 4810.2200; 4810.2300; 4810.2400;
4810.2500; 4810.2600; 4810.2700; 4810.2800; 4830.5000; 4830.5100; 4830.5200,
subparts 1 and 3; 4830.5300; and 4830.5400, new text end new text begin are repealed.
new text end