Engrossments
Introduction		Posted on 02/25/2008

A bill for an act
relating to higher education; clarifying certain scholarship program provisions;
amending grant requirements; amending certain private institution provisions;
making technical changes; providing for data sharing; amending Minnesota
Statutes 2006, sections 13.32, by adding a subdivision; 141.25, by adding
a subdivision; Minnesota Statutes 2007 Supplement, sections 136A.126;
136A.127; 136A.65, subdivisions 1, 3, 5, 6, 7; 136A.66; 136A.67; 136A.69;
141.25, subdivision 5; 141.28, subdivision 1; 141.35; 197.791, subdivisions 1,
4, 5.

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

ARTICLE 1

STUDENT FINANCIAL AID PROGRAMS

Section 1.

Minnesota Statutes 2007 Supplement, section 136A.126, is amended to read:

136A.126 INDIAN SCHOLARSHIPS.

new text begin Subdivision 1. new text end

new text begin Student eligibility. new text end

The director of the Office of Higher Education
shall establish procedures for the distribution of scholarships to deleted text begin anydeleted text end new text begin anew text end Minnesota resident
studentnew text begin who:
new text end

deleted text begin whodeleted text end new text begin (1)new text end is of one-fourth or more Indian ancestrydeleted text begin ,deleted text end new text begin ;
new text end

deleted text begin whodeleted text end new text begin (2)new text end has applied for other existing state and federal scholarship and grant
programsdeleted text begin , anddeleted text end new text begin ;
new text end

new text begin (3) 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;
new text end

new text begin (4) is an undergraduate enrolled for nine semester credits per term or more, or the
equivalent, or a graduate student enrolled on a half-time basis or more according to the
postsecondary institution; and
new text end

deleted text begin who,deleted text end new text begin (5)new text end in the opinion of the director of the Office of Higher Education, based
upon postsecondary institution recommendations, has the capabilities to benefit from
further education.

new text begin Subd. 2. new text end

new text begin Eligible programs. new text end

Scholarships must be for accredited degree programs
in accredited Minnesota colleges or universities or for courses in accredited Minnesota
business, technical, or vocational schools. Scholarships may also be given to students
attending Minnesota colleges 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 as students in Minnesota higher education institutions that
have joint programs with other accredited higher education institutions.deleted text begin Scholarships shall
be used to defray the total cost of education including tuition, incidental fees, books,
supplies, transportation, other related school costs and the cost of board and room and
shall be paid directly to the college or school concerned where the student receives federal
financial aid.
deleted text end

new text begin Subd. 3. new text end

new text begin Cost of attendance. new text end

The total cost of deleted text begin education includes alldeleted text end new text begin attendance
shall include new text end tuition and new text begin required new text end fees deleted text begin for each student enrolling in a public institution
and the portion of tuition and fees for each student enrolling in a private institution that
does not exceed the tuition and fees at a comparable public institution. Each student shall
be awarded a scholarship based on a federal standardized need analysis. Applicants are
encouraged to apply for all other sources of financial aiddeleted text end new text begin charged by the institution and the
campus-based budget used for federal financial aid for food and shelter, books, supplies,
transportation, and miscellaneous expensesnew text end .

deleted text begin When an Indian student satisfactorily completes the work required by a certain
college or school in a school year the student is eligible for additional scholarships, if
additional training is necessary to reach the student's educational and vocational objective.
deleted text end

new text begin Subd. 4. new text end

new text begin Award amount. new text end

new text begin (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:
new text end

new text begin (1) the expected family contribution as calculated by the federal need analysis;
new text end

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

new text begin (3) the amount of the state grant;
new text end

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

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

new text begin (6) the sum of all tribal scholarships;
new text end

new text begin (7) the amount of any other state and federal gift aid; and
new text end

new text begin (8) the amount of any private grants or scholarships.
new text end

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

new text begin (c) Awards are limited as follows:
new text end

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2007 Supplement, section 136A.127, is amended to read:

136A.127 ACHIEVE SCHOLARSHIP PROGRAM.

Subdivision 1.

Establishment.

The Achieve Scholarship Program is established.

Subd. 2.

Definition; qualifying program.

For the purposes of this section, a
"qualifying program" means a rigorous secondary school program of study defined by
the Department of Education under agreement with the Secretary of Education for the
purposes of determining eligibility for the federal Academic Competitiveness Grant
Program under Title IV of the Higher Education Act of 1965, as amended.

Subd. 3.

Documentation of qualifying programs.

The student shall request a
transcript from the high school. The high school shall provide a transcript to the Office
of Higher Education or to the eligible institution in which the student is enrolling,
documenting the qualifying program.new text begin The student may be required to provide additional
documentation such as:
new text end

new text begin (1) official postsecondary transcript; and
new text end

new text begin (2) official IB/AP test scores.
new text end

Subd. 4.

Student eligibility.

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

(1) submit a Free Application for Federal Student Aid (FAFSA);

(2) take and receive at least a grade of C for courses that comprise a rigorous
secondary school program of study in a high school or in a home-school setting under
section 120A.22, and graduate from new text begin a Minnesota new text end high school;

(3) have a family adjusted gross income new text begin of less than $75,000 new text end in the last complete
calendar year prior to the academic year of postsecondary attendance deleted text begin of less than $75,000deleted text end new text begin
in which the scholarship is usednew text end ;

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

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

new text begin (6) be enrolled for at least three credits per quarter or semester or the equivalent at
an eligible institution as defined under section 136A.101, subdivision 4new text end .

Subd. 5.

Administration.

The Achieve Scholarship Program shall be administered
by the Minnesota Office of Higher Education. The director shall develop forms and
procedures necessary to administer the program.

Subd. 6.

Application.

A student must complete and submit an application for
the Achieve scholarship.

Subd. 7.

Deadline.

The deadline for the office to accept applications for Achieve
scholarships is deleted text begin 30 days after the beginning of the academic term for which the application
is submitteddeleted text end new text begin the same as that used for the state grant in section 136A.121, subdivision 13new text end .

Subd. 8.

Documentation of qualifying household income.

Achieve Scholarship
Program applicants must certify on the application that they meet the income eligibility
requirement in subdivision deleted text begin 5deleted text end new text begin 4new text end , clause deleted text begin (2)deleted text end new text begin (3)new text end . The Office of Higher Education or the
postsecondary institution may request documentation needed to confirm income eligibility.

Subd. 9.

Scholarship awards.

Minnesota Achieve scholarships shall consist of
$1,200 for a student who takes and receives at least a grade of C for courses required
under a qualifying program. The scholarships may be used to pay for qualifying expenses
at eligible institutions.

Subd. 10.

Qualifying expenses.

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

Subd. 11.

Eligible institutions.

The Achieve scholarship may only be used to
pay qualifying expenses at an eligible institution as defined under section 136A.101,
subdivision 4.

Subd. 12.

Availability of scholarship funds.

A scholarship earned by a student
is available for four years immediately following high school graduation. The office
must certify to the commissioner of finance by October 1 of each year the amounts to be
canceled from scholarship eligibility that have expired.

Subd. 13.

Disbursement of scholarships.

The office shall make two equal
payments to a postsecondary institution on behalf of the student. deleted text begin The second payment
must be madedeleted text end After the student successfully completes the first term of enrollmentnew text begin , the
second payment must be made during the student's next term of enrollment at an eligible
institution. If the second disbursement is not within the same academic year as the first
disbursement, the student must request the second disbursementnew text end .

Subd. 14.

Evaluation report.

By January 15 of each odd-numbered year, the
Office of Higher Education shall submit a report, to the committees of the legislature with
jurisdiction over higher education finance and policy, regarding the success of the program
in increasing the enrollment of students in rigorous high school courses, including, at a
minimum, the following information:

(1) the demographics of individuals participating in the program;

(2) the grades scholarship recipients received for courses in the qualifying program
under subdivision 2;

(3) the number of scholarship recipients who persisted at a postsecondary institution
for a second year;

(4) the high schools attended by the program participants;

(5) the postsecondary institutions attended by the program participants;

(6) the academic performance of the students after enrolling in a postsecondary
institution; and

(7) other information as identified by the director.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to students who graduate from high school after January 1, 2008.
new text end

ARTICLE 2

PRIVATE INSTITUTIONS

Section 1.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 1,
is amended to read:

Subdivision 1.

Prohibition.

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

Sec. 2.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 3, is
amended to read:

Subd. 3.

Application.

A school subject to registration shall be granted approval
to use the term "collegedeleted text begin ,deleted text end " deleted text begin "academy," "institute,"deleted text end or "university" in its name if it was
organized, operating, and using such term in its name on or before August 1, 2007, and if
it meets the other policies and standards for approval established by the office.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 5, is
amended to read:

Subd. 5.

Requirements for degree new text begin and nondegree program new text end approval.

For each
degree new text begin and nondegree program new text end a school offers to a student, where the student does not
leave Minnesota for the major portion of the program or course leading to the degreenew text begin or
nondegree awardnew text end , the school must have:

new text begin (1) for degree programs:
new text end

deleted text begin (1)deleted text end new text begin (i) new text end qualified teaching personnel to provide the educational programs for each
degree for which approval is sought;

deleted text begin (2)deleted text end new text begin (ii) new text end appropriate educational programs leading to each degree for which approval
is sought;

deleted text begin (3)deleted text end new text begin (iii) new text end appropriate and accessible library, laboratory, and other physical facilities to
support the educational program for each degree for which approval is sought; and

deleted text begin (4)deleted text end new text begin (iv) new text end a rationale showing that degree programs are consistent with the school's
mission and goalsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (2) for nondegree programs:
new text end

new text begin (i) qualified teaching personnel to provide the educational programs for which
approval is sought;
new text end

new text begin (ii) appropriate educational programs leading to each award for which approval
is sought;
new text end

new text begin (iii) appropriate and accessible library, laboratory, and other physical facilities to
support the educational program for which approval is sought; and
new text end

new text begin (iv) a rationale showing that programs are consistent with the school's mission
and goals.
new text end

new text begin Nondegree programs that are a part of an approved degree shall not require
additional review or approval; they shall be considered approved as a part of the degree
approval. Any nondegree program offered by a degree-granting school that is not a part of
an approved degree shall be subject to clause (2), items (i) to (iv).
new text end

Sec. 4.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 6, is
amended to read:

Subd. 6.

Name.

A new text begin degree-granting new text end 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 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. 5.

Minnesota Statutes 2007 Supplement, section 136A.65, subdivision 7, is
amended to read:

Subd. 7.

Conditional approval.

The office may grant conditional approval for a
degree or use of a term in its name for a period of less than one year if doing so would be
in the best interests of currently enrolled students or prospective students.new text begin New schools
may be granted conditional approval for degrees or names annually for a period not to
exceed five years to allow them the opportunity to apply for and receive accreditation as
required in subdivision 1a.
new text end

Sec. 6.

Minnesota Statutes 2007 Supplement, section 136A.66, is amended to read:

136A.66 LIST.

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

Sec. 7.

Minnesota Statutes 2007 Supplement, section 136A.67, is amended to read:

136A.67 UNAUTHORIZED REPRESENTATIONS.

new text begin No school and none of its officials or employees shall advertise or represent in
any manner that such school is approved or accredited by the office or the state of
Minnesota, except new text end a school which is duly registered with the office, or any of its officials
or employees, may represent in advertising and shall disclose in catalogues, applications,
and enrollment materials that the school is registered with the office by prominently
displaying the following statement: "(Name of school) is registered as a private institution
with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71.
Registration is not an endorsement of the institution. Credits earned at the institution
may not transfer to all other institutions."

Sec. 8.

Minnesota Statutes 2007 Supplement, section 136A.69, is amended to read:

136A.69 FEES.

Subdivision 1.

Registration fees.

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

Subd. 2.

Degree level addition fee.

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

Subd. 3.

new text begin Degree or nondegree new text end program addition fee.

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

Subd. 4.

Visit or consulting fee.

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

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

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

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

Subd. 5.

Modification fee.

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

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

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

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

Sec. 9.

Minnesota Statutes 2007 Supplement, section 141.25, subdivision 5, is
amended to read:

Subd. 5.

Bond.

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

(b)new text begin (1)new text end The amount of the surety bond shall be ten percent of the preceding year's
gross income from student tuition, fees, and other required institutional charges, but in
no event less than $10,000 nor greater than $250,000, except that a school may deposit a
greater amount at its own discretion. A school in each annual application for licensure
must compute the amount of the surety bond and verify that the amount of the surety bond
complies with this subdivision, unless the school maintains a surety bond equal to at least
$250,000. A school that operates at two or more locations may combine gross income
from student tuition, fees, and other required institutional charges for all locations for the
purpose of determining the annual surety bond requirement. The gross tuition and fees
used to determine the amount of the surety bond required for a school having a license for
the sole purpose of recruiting students in Minnesota shall be only that paid to the school
by the students recruited from Minnesota.

new text begin (2) A school required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in its name and which is also licensed by
another state agency or board shall be required to provide a school bond of $10,000.
new text end

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

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

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

Sec. 10.

Minnesota Statutes 2006, section 141.25, is amended by adding a subdivision
to read:

new text begin Subd. 13. new text end

new text begin Schools licensed by another state agency or board. new text end

new text begin A school required to
obtain a private career school license due to the use of "academy," "institute," "college," or
"university" in its name and which is also licensed by another state agency or board shall
be required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7),
and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.
new text end

Sec. 11.

Minnesota Statutes 2007 Supplement, section 141.28, subdivision 1, is
amended to read:

Subdivision 1.

Disclosure requirednew text begin ; advertisement restrictednew text end .

deleted text begin Adeleted text end new text begin Schools, agents
of schools, and solicitors may not advertise or represent in writing or orally that such
school is approved or accredited by the state of Minnesota, except that anynew text end school, agent,
or solicitor may represent in advertisements and shall disclose in catalogues, applications,
and enrollment materials that the school is duly licensed by the state by prominently
displaying the following statement:

"(Name of school) is licensed as a private career school with the Minnesota Office of
Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. Licensure is
not an endorsement of the institution. Credits earned at the institution may not transfer
to all other institutions."

Sec. 12.

Minnesota Statutes 2007 Supplement, section 141.35, is amended to read:

141.35 EXEMPTIONS.

Sections 141.21 to 141.32 shall not apply to the following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections deleted text begin 136A.615deleted text end new text begin 136A.61new text end to
136A.71;

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

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

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

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

(7) schools licensed by boards authorized under Minnesota law to issue licensesnew text begin
except schools required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in their namesnew text end ;

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

(9) schools engaged exclusively in the teaching of purely avocational, recreational,
or remedial subjects as determined by the officenew text begin except schools required to obtain a private
career school license due to the use of "academy," "institute," "college," or "university"
in their namesnew text end ;

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

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

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

(13) classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing and occupational
entrance examinations;

(14) classes, courses, or programs providing 16 or fewer clock hours of instruction
that are not part of the curriculum for an occupation or entry level employmentnew text begin except
schools required to obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in their namesnew text end ;

(15) classes, courses, or programs providing instruction in personal development,
modeling, or acting;

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

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

ARTICLE 3

MINNESOTA GI BILL

Section 1.

Minnesota Statutes 2007 Supplement, section 197.791, subdivision 1,
is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

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

(c) "Cost of attendance" for deleted text begin both graduate anddeleted text end undergraduate students has the
meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.1. deleted text begin Thedeleted text end new text begin
"Cost of attendance" for graduate students has the meaning given in section 136A.121,
subdivision 6, multiplied by a factor of 1.1 using thenew text end tuition and fee maximum established
by law for four-year programs deleted text begin shall be used to calculate the tuition and fee maximum
under section 136A.121, subdivision 6, for a graduate studentdeleted text end .new text begin For purposes of calculating
the cost of attendance for graduate students, full time is eight credits or more per term or
the equivalent.
new text end

(d) "Child" means a natural or adopted child of a person described in subdivision 4,
paragraph (a), clause (1), item (i) or (ii).

(e) "Eligible institution" means a postsecondary institution under section 136A.101,
subdivision 4new text begin or a graduate school licensed or registered with the state of Minnesota
serving only graduate studentsnew text end .

(f) "Program" means the Minnesota GI Bill program established in this section,
unless otherwise specified.

(g) "Time of hostilities" means any action by the armed forces of the United States
that is recognized by the issuance of a presidential proclamation or a presidential executive
order in which the armed forces expeditionary medal or other campaign service medals
are awarded according to presidential executive order, and any additional period or place
that the commissioner determines and designates, after consultation with the United States
Department of Defense, to be a period or place where the United States is in a conflict that
places persons at such a risk that service in a foreign country during that period or in that
place should be considered to be included.

(h) "Veteran" has the meaning given in section 197.447. Veteran also includes
a service member who has received an honorable discharge after leaving each period of
federal active duty service and has:

(1) served 90 days or more of federal active duty in a foreign country during a time
of hostilities in that countrynew text begin or been awarded one or more of the following medals:
new text end

new text begin (i) Armed Forces Expeditionary Medal;
new text end

new text begin (ii) Kosovo Campaign Medal;
new text end

new text begin (iii) Afghanistan Campaign Medal;
new text end

new text begin (iv) Iraq Campaign Medal;
new text end

new text begin (v) Global War on Terrorism Expeditionary Medal; and
new text end

new text begin (vi) other campaign medals authorized for service after September 1, 2001new text end ; or

(2) received a service-related medical discharge from any period of service in a
foreign country during a time of hostilities in that country.

A service member who has fulfilled the requirements for being a veteran under this
paragraph but is still serving actively in the United States armed forces is also a veteran
for the purposes of this section.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 197.791, subdivision 4, is
amended to read:

Subd. 4.

Eligibility.

(a) A person is eligible for educational assistance under this
section if:

(1) the person is:

(i) a veteran who is serving or has served honorably in any branch or unit of the
United States armed forces at any time on or after September 11, 2001;

(ii) a nonveteran who has served honorably for a total of five years or more
cumulatively as a member of the Minnesota National Guard or any other active or reserve
component of the United States armed forces, and any part of that service occurred on or
after September 11, 2001;

(iii) the surviving spouse or child of a person who has served in the military at any
time on or after September 11, 2001, and who has died as a direct result of that military
service; or

(iv) the spouse or child of a person who has served in the military at any time on or
after September 11, 2001, and who has a total and permanent service-connected disability
as rated by the United States Veterans Administration;

(2) the person providing the military service described in clause (1), items (i) to (iv),
was a Minnesota resident within six months of the time of the person's initial enlistment or
any reenlistment in the United States armed forces;

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

(4) the person receiving the educational assistance:

(i) is an undergraduate or graduate student at an eligible institution;

(ii) is maintaining satisfactory academic progress as defined by the institution for
students participating in federal Title IV programs;

(iii) is enrolled in an education program leading to a certificate, diploma, or degree
at an eligible institution;

(iv) has applied for educational assistance under this section prior to the end of the
academic term for which the assistance is being requested;

(v) is in compliance with child support payment requirements under section
136A.121, subdivision 2, clause (5); and

(vi) deleted text begin if an undergraduate student, has applied for the federal Pell Grant and the
Minnesota State Grantdeleted text end new text begin has completed and submitted the Free Application for Federal
Student Aid (FAFSA)new text end .

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

(c) To determine eligibility, the commissioner may require official documentation,
including the person's federal form DD-214 or other official military discharge papers;
correspondence from the United States Veterans Administration; birth certificate; marriage
certificate; proof of enrollment at an eligible institution; signed affidavits; proof of
residency; proof of identity; or any other official documentation the commissioner
considers necessary to determine eligibility.

(d) The commissioner may deny eligibility or terminate benefits under this section
to any person who has not provided sufficient documentation to determine eligibility for
the program. An applicant may appeal the commissioner's eligibility determination or
termination of benefits in writing to the commissioner at any time. The commissioner
must rule on any application or appeal within 30 days of receipt of all documentation that
the commissioner requires. The decision of the commissioner regarding an appeal is final.
However, an applicant whose appeal of an eligibility determination has been rejected by
the commissioner may submit an additional appeal of that determination in writing to the
commissioner at any time that the applicant is able to provide substantively significant
additional information regarding the applicant's eligibility for the program. An approval
of an applicant's eligibility by the commissioner following an appeal by the applicant is
not retroactively effective for more than one year or the semester of the person's original
application, whichever is later.

(e) Upon receiving an application with insufficient documentation to determine
eligibility, the commissioner must notify the applicant within 30 days of receipt of the
application that the application is being suspended pending receipt by the commissioner of
sufficient documentation from the applicant to determine eligibility.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 197.791, subdivision 5, is
amended to read:

Subd. 5.

Benefit amount.

(a) On approval by the commissioner of eligibility for
the program, the applicant shall be awarded, on a funds-available basis, the educational
assistance under the program for use at any time according to program rules at any
eligible institution.

(b) The amount of educational assistance in any semester or term for an eligible
person must be determined by subtracting from the eligible person's cost of attendance the
amount the person received or was eligible to receive in that semester or term from:

(1) the federal Pell Grant;

(2) the state grant program under section 136A.121; and

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

(c) The amount of educational assistance for any eligible person who is a full-time
student must not exceed the following:

(1) $1,000 per semester or term of enrollment;

(2) $2,000 per state fiscal year; and

(3) $10,000 in a lifetime.

For a part-time student, the amount of educational assistance must not exceed $500
per semester or term of enrollment. For the purpose of this paragraph, a part-time
undergraduate student is a student taking fewer than 12 credits new text begin or the equivalent new text end for a
semester or term of enrollmentnew text begin ,new text end and a part-time graduate student is a student considered
part time by the eligible institution the graduate student is attending.new text begin The minimum award
per term for the undergraduate and graduate students will be $50 per term.
new text end

ARTICLE 4

EDUCATIONAL DATA

Section 1.

Minnesota Statutes 2006, section 13.32, is amended by adding a subdivision
to read:

new text begin Subd. 11. new text end

new text begin Data sharing for improving instruction. new text end

new text begin Educational data may be
shared by and between the Department of Education and the Office of Higher Education
as authorized by Code of Federal Regulations, title 34, section 99.31(a)(6), to analyze
instruction in school districts for purposes of improvement.
new text end

HF 3363

Bill Text Versions

Current Version - as introduced

ARTICLE 1

STUDENT FINANCIAL AID PROGRAMS

Section 1.

136A.126 INDIAN SCHOLARSHIPS.

new text begin Subdivision 1. new text end

new text begin Student eligibility. new text end

new text begin Subd. 2. new text end

new text begin Eligible programs. new text end

new text begin Subd. 3. new text end

new text begin Cost of attendance. new text end

new text begin Subd. 4. new text end

new text begin Award amount. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 2.

136A.127 ACHIEVE SCHOLARSHIP PROGRAM.

Subdivision 1.

Establishment.

Subd. 2.

Definition; qualifying program.

Subd. 3.

Documentation of qualifying programs.

Subd. 4.

Student eligibility.

Subd. 5.

Administration.

Subd. 6.

Application.

Subd. 7.

Deadline.

Subd. 8.

Documentation of qualifying household income.

Subd. 9.

Scholarship awards.

Subd. 10.

Qualifying expenses.

Subd. 11.

Eligible institutions.

Subd. 12.

Availability of scholarship funds.

Subd. 13.

Disbursement of scholarships.

Subd. 14.

Evaluation report.

new text begin EFFECTIVE DATE. new text end

ARTICLE 2

PRIVATE INSTITUTIONS

Section 1.

Subdivision 1.

Prohibition.

Sec. 2.

Subd. 3.

Application.

Sec. 3.

Subd. 5.

Requirements for degree new text begin and nondegree program new text end approval.

Sec. 4.

Subd. 6.

Name.

Sec. 5.

Subd. 7.

Conditional approval.

Sec. 6.

136A.66 LIST.

Sec. 7.

136A.67 UNAUTHORIZED REPRESENTATIONS.

Sec. 8.

136A.69 FEES.

Subdivision 1.

Registration fees.

Subd. 2.

Degree level addition fee.

Subd. 3.

new text begin Degree or nondegree new text end program addition fee.

Subd. 4.

Visit or consulting fee.

Subd. 5.

Modification fee.