SF 184

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

1.1A bill for an act

1.2relating to higher education; authorizing data matching; modifying institution
1.3eligibility; permitting a reserve of grant funds; establishing award procedures;
1.4establishing a grant program; modifying security requirements; requiring
1.5certain notice; establishing a central system office; modifying bonding limits;
1.6authorizing bonding authority transfer; providing for certain refunds; requiring
1.7certain studies and reports; governing credit transfers; requiring system office
1.8streamlining; providing postretirement premium reimbursement; establishing
1.9pilot projects; making technical corrections; requesting certain public education;
1.10defining and clarifying terms; governing appropriation reductions;amending
1.11Minnesota Statutes 2008, sections 135A.15, subdivision 1; 135A.155; 135A.51,
1.12subdivision 2; 136A.101, subdivision 10; 136A.121, subdivisions 6, 7; 136A.126,
1.13by adding a subdivision; 136A.15, subdivision 6; 136A.16, subdivision 14;
1.14136A.62, subdivision 3; 136A.645; 136A.646; 141.25, subdivisions 7, 13, by
1.15adding a subdivision; 141.251, subdivision 2; 141.28, subdivision 2; 474A.04,
1.16subdivision 6; 474A.091, subdivision 3; Minnesota Statutes 2009 Supplement,
1.17sections 136A.01, subdivision 2; 136A.101, subdivision 4; 136F.98, subdivision
1.181; Laws 2010, chapter 215, article 2, sections 4, subdivision 3; 6; proposing
1.19coding for new law in Minnesota Statutes, chapters 136A; 136F; repealing
1.20Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9b.
1.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.22    Section 1. Minnesota Statutes 2008, section 135A.15, subdivision 1, is amended to
1.23read:
1.24    Subdivision 1. Policy required. The Board of Trustees of the Minnesota State
1.25Colleges and Universities shall, and the University of Minnesota is requested to, adopt
1.26a clear, understandable written policy on sexual harassment and sexual violence that
1.27informs victims of their rights under the crime victims bill of rights, including the right to
1.28assistance from the Crime Victims Reparations Board and the commissioner of public
1.29safety. The policy must apply to students and employees and must provide information
1.30about their rights and duties. The policy must apply to criminal incidents occurring on
2.1property owned by the postsecondary system or institution in which the victim is a
2.2student or employee of that system or institution. It must include procedures for reporting
2.3incidents of sexual harassment or sexual violence and for disciplinary actions against
2.4violators. During student registration, each technical college, community college, or state
2.5university shall, and the University of Minnesota is requested to, provide each student with
2.6information regarding its policy. A copy of the policy also shall be posted at appropriate
2.7locations on campus at all times. Each private postsecondary institution that is an eligible
2.8institution as defined in section 136A.101, subdivision 4 136A.155, must adopt a policy
2.9that meets the requirements of this section.

2.10    Sec. 2. Minnesota Statutes 2008, section 135A.155, is amended to read:
2.11135A.155 HAZING POLICY.
2.12The board of trustees of the Minnesota State Colleges and Universities shall, and
2.13the University of Minnesota is requested to, adopt a clear, understandable written policy
2.14on student conduct, including hazing. The policy must include procedures for reporting
2.15incidents of inappropriate hazing and for disciplinary actions against individual violators
2.16and organizations. The policy shall be made available to students by appropriate means as
2.17determined by each institution, which may include publication in a student handbook or
2.18other institutional publication, or posting by electronic display on the Internet, and shall
2.19be posted at appropriate locations on campus. A private postsecondary institution that
2.20is an eligible institution as defined in section 136A.101, subdivision 4 136A.155, must
2.21adopt a policy that meets the requirements of this section.

2.22    Sec. 3. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read:
2.23    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 66
2.24years of age before the beginning of any term, semester or quarter, in which a course of
2.25study is pursued, or a person receiving a railroad retirement annuity who has reached 60
2.26years of age before the beginning of the term.

2.27    Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is
2.28amended to read:
2.29    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is
2.30responsible for:
2.31    (1) necessary state level administration of financial aid programs, including
2.32accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
2.33financial aid programs to the governor and the legislature;
3.1    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
3.2and career schools, under sections 136A.61 to 136A.71 and chapter 141;
3.3    (3) negotiating and administering reciprocity agreements;
3.4    (4) publishing and distributing financial aid information and materials, and other
3.5information and materials under section 136A.87, to students and parents;
3.6    (5) collecting and maintaining student enrollment and financial aid data and
3.7reporting data on students and postsecondary institutions to develop and implement a
3.8process to measure and report on the effectiveness of postsecondary institutions;
3.9    (6) administering the federal programs that affect students and institutions on a
3.10statewide basis; and
3.11    (7) prescribing policies, procedures, and rules under chapter 14 necessary to
3.12administer the programs under its supervision.
3.13    (b) The office is authorized to match individual student data from the student record
3.14enrollment database with individual student financial aid data collected and maintained
3.15by the office in order to audit or evaluate federal or state supported education programs
3.16as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal
3.17Regulations, title 34, section 99.35. The office may match data from the following
3.18financial aid program databases with data from the student record enrollment database:
3.19tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary
3.20child care grant; the American Indian Scholarship; and the achieve scholarship. The office
3.21shall conduct the study in a manner that does not permit personal identification of parents
3.22or students by individuals other than representatives of the office.

3.23    Sec. 5. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is
3.24amended to read:
3.25    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
3.26educational institution located in this state or in a state with which the office has entered
3.27into a higher education reciprocity agreement on state student aid programs that (1) is
3.28operated by this state or the Board of Regents of the University of Minnesota, or (2)
3.29is operated privately and, as determined by the office, meets all of the following: (i)
3.30maintains academic standards substantially equivalent to those of comparable institutions
3.31operated in this state; (ii) is licensed or registered as a postsecondary institution by the
3.32office or another state agency; and (iii) by July 1, 2013, is participating in the federal
3.33Pell Grant program under Title IV of the Higher Education Act of 1965, as amended an
3.34institution that meets the eligibility requirements under section 136A.103.

4.1    Sec. 6. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read:
4.2    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress"
4.3means that: satisfactory academic progress as defined under Code of Federal Regulations,
4.4title 34, sections 668.16(e), 668.32(f), and 668.34.
4.5    (1) by the end of a student's second academic year of attendance at an institution, the
4.6student has at least a cumulative grade point average of C or its equivalent, or academic
4.7standing consistent with the institution's graduation requirements; and
4.8    (2) by the end of the first term of the third and fourth academic year of attendance,
4.9the student has a cumulative grade point average of at least a C or its equivalent.

4.10    Sec. 7. [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS.
4.11    (a) A postsecondary institution is eligible for state student aid under chapter 136A
4.12and sections 197.791 and 299A.45, if the institution is located in this state and:
4.13    (1) is operated by this state or the Board of Regents of the University of Minnesota;
4.14or
4.15    (2) is operated privately and, as determined by the office, meets the requirements of
4.16paragraph (b).
4.17    (b) A private institution must:
4.18    (1) maintain academic standards substantially equivalent to those of comparable
4.19institutions operated in this state;
4.20    (2) be licensed or registered as a postsecondary institution by the office; and
4.21    (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
4.22the Higher Education Act of 1965, as amended; or
4.23    (ii) if an institution was participating in state student aid programs as of June 30,
4.242010, and the institution did not participate in the federal Pell Grant program by June 30,
4.252010, the institution must require every student who enrolls to sign a disclosure form,
4.26provided by the office, stating that the institution is not participating in the federal Pell
4.27Grant program.
4.28    (c) An institution that offers only graduate-level degrees or graduate-level nondegree
4.29programs, or that offers only degrees or programs that do not meet the required minimum
4.30program length to participate in the federal Pell Grant program, is an eligible institution if
4.31the institution is licensed or registered as a postsecondary institution by the office.
4.32    (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
4.33ownership as defined in section 136A.63, subdivision 2, must participate in the federal
4.34Pell Grant program within four calendar years of the first ownership change to continue
4.35eligibility.
5.1    (e) An institution that loses its eligibility for the federal Pell Grant program is not an
5.2eligible institution.

5.3    Sec. 8. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:
5.4    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of
5.5allowances specified in law for living and miscellaneous expenses, and an allowance
5.6for tuition and fees equal to the lesser of the average tuition and fees charged by the
5.7institution, or the tuition and fee maximums established in law, or for students at for-profit
5.8institutions, the average tuition and fee amount for public two-year institutions for a
5.9student in a two-year program or the average tuition and fee amount for a state university
5.10for students in four-year programs.
5.11    (b) For a student registering for less than full time, the office shall prorate the cost of
5.12attendance to the actual number of credits for which the student is enrolled.
5.13    (c) The recognized cost of attendance for a student who is confined to a Minnesota
5.14correctional institution shall consist of the tuition and fee component in paragraph (a),
5.15with no allowance for living and miscellaneous expenses.
5.16    (d) For the purpose of this subdivision, "fees" include only those fees that are
5.17mandatory and charged to full-time resident students attending the institution. Fees do
5.18not include charges for tools, equipment, computers, or other similar materials where the
5.19student retains ownership. Fees include charges for these materials if the institution retains
5.20ownership. Fees do not include optional or punitive fees.
5.21EFFECTIVE DATE.This section is effective for grants made beginning on July
5.221, 2010.

5.23    Sec. 9. Minnesota Statutes 2008, section 136A.121, subdivision 7, is amended to read:
5.24    Subd. 7. Insufficient appropriation. If the amount appropriated is determined by
5.25the office to be insufficient to make for projected grant demand based on making full
5.26awards to applicants under subdivision 5 in the second year, individual awards must
5.27be reduced by:
5.28(1) adding a surcharge to the applicant's assigned family responsibility, as defined
5.29in section 136A.101, subdivision 5a; and
5.30(2) a percentage increase in the applicant's assigned student responsibility, as defined
5.31in subdivision 5.
5.32The reduction under clauses (1) and (2) must be approximately equal dollar amounts. The
5.33office may reserve up to five percent of the funds available for grants in the second year
6.1to manage uncertainty of demand based on enrollment or income. Any of the reserve
6.2that is remaining after grants are awarded under this subdivision must be distributed by
6.3increasing the living and miscellaneous allowance consistent with subdivision 7a.
6.4EFFECTIVE DATE.This section is effective for grants made on or after July
6.51, 2010.

6.6    Sec. 10. Minnesota Statutes 2008, section 136A.126, is amended by adding a
6.7subdivision to read:
6.8    Subd. 5. Awarding procedure. (a) Awards must be made on a first-come,
6.9first-served basis in the order complete applications are received. If there are multiple
6.10applications with identical completion dates, those applications are further sorted by
6.11application receipt date.
6.12(b) Awards are made to eligible students until the appropriation is expended.
6.13(c) Applicants not receiving a grant and for whom the office has received a
6.14completed application are placed on a waiting list in order of application completion date.

6.15    Sec. 11. [136A.129] ONETIME GRANT FOR HIGH SCHOOL-TO-COLLEGE
6.16DEVELOPMENTAL TRANSITION PROGRAM.
6.17(a) Within the limits of appropriations, a student who enrolls in a program under
6.18section 135A.61 is eligible for a onetime grant to help pay expenses to attend the program.
6.19The amount of the grant must be determined according to section 136A.121, subdivision
6.205, except as modified by paragraph (b). The requirement in 136A.121, subdivision 9a,
6.21that subtracts a federal Pell Grant award for which a student would be eligible, even if
6.22the student has exhausted the federal Pell Grant award, does not apply to a student who
6.23receives a grant under this subdivision in the award year in which the grant is received.
6.24The maximum grant under this subdivision must be reduced by the average amount a
6.25student would earn working in an on-campus work-study position for ten hours per
6.26week during a summer term. The office must determine an amount for student earnings
6.27in a summer term, using available data about earnings, before determining the amount
6.28awarded under this subdivision.
6.29(b) For a student with an expected family contribution of zero, the maximum amount
6.30of the grant is the cost of attendance under section 136A.121, subdivision 6.
6.31(c) A grant under this subdivision counts as one of the eight semesters of eligibility
6.32under section 136A.121, subdivision 9. A grant under this subdivision must not be
6.33awarded for the same term for which another grant is awarded under this section.
7.1(d) Beginning in fiscal year 2012, up to $1,000,000 each year may be used for
7.2grants under this section.

7.3    Sec. 12. [136A.1291] LEGISLATIVE NOTICE.
7.4    The office shall notify the chairs of the legislative committees with primary
7.5jurisdiction over higher education finance of any proposed material change to the
7.6administration of any of the grant or financial aid programs in sections 136A.095 to
7.7136A.128.

7.8    Sec. 13. Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read:
7.9    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
7.10educational institution that (1) is operated or regulated by this state or the Board of Regents
7.11of the University of Minnesota; (2) is operated publicly or privately in another state, is
7.12approved by the United States Secretary of Education, and, as determined by the office,
7.13maintains academic standards substantially equal to those of comparable institutions
7.14operated in this state; (3) is licensed or registered as a postsecondary institution by the
7.15office or another state agency; and (4) by July 1, 2011, is participating in the federal Pell
7.16Grant program under Title IV of the Higher Education Act of 1965, as amended. It also
7.17includes any institution chartered in a province an institution that meets the eligibility
7.18requirements under section 136A.155.

7.19    Sec. 14. [136A.155] ADDITIONAL INSTITUTION ELIGIBILITY
7.20REQUIREMENTS.
7.21    A postsecondary institution is an eligible institution for purposes of sections
7.22136A.15 to 136A.1702, if the institution:
7.23    (1) meets the eligibility requirements under section 136A.103; or
7.24    (2) is operated publicly or privately in another state, is approved by the United States
7.25Secretary of Education, and, as determined by the office, maintains academic standards
7.26substantially equal to those of comparable institutions operated in this state.

7.27    Sec. 15. Minnesota Statutes 2008, section 136A.16, subdivision 14, is amended to read:
7.28    Subd. 14. Notes. The office may sell at public or private sale, at the price or prices
7.29determined by the office, any note or other instrument or obligation evidencing or securing
7.30a loan made by the office or its predecessor, including the Minnesota Higher Education
7.31Coordinating Board and the Minnesota Higher Education Services Office.

8.1    Sec. 16. Minnesota Statutes 2008, section 136A.62, subdivision 3, is amended to read:
8.2    Subd. 3. School. "School" means:
8.3    (1) any partnership, company, firm, society, trust, association, corporation, or any
8.4combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary
8.5education institution; (ii) is, owns, or operates a private, for-profit postsecondary education
8.6institution; or (iii) provides a postsecondary instructional program or course leading to a
8.7degree whether or not for profit;
8.8    (2) any public or private postsecondary educational institution located in another
8.9state or country which offers or makes available to a Minnesota resident any course,
8.10program or educational activity which does not require the leaving of the state for its
8.11completion; or
8.12    (3) any individual, entity, or postsecondary institution located in another state
8.13that contracts with any school located within the state of Minnesota for the purpose of
8.14providing educational programs, training programs, or awarding postsecondary credits
8.15or continuing education credits to Minnesota residents that may be applied to a degree
8.16program.

8.17    Sec. 17. Minnesota Statutes 2008, section 136A.645, is amended to read:
8.18136A.645 SCHOOL CLOSURE.
8.19    (a) When a school decides to cease postsecondary education operations, it must
8.20cooperate with the office in assisting students to find alternative means to complete their
8.21studies with a minimum of disruption, and inform the office of the following:
8.22    (1) the planned date for termination of postsecondary education operations;
8.23    (2) the planned date for the transfer of the student records;
8.24    (3) confirmation of the name and address of the organization to receive and hold
8.25the student records; and
8.26    (4) the official at the organization receiving the student records who is designated to
8.27provide official copies of records or transcripts upon request.
8.28    (b) Upon notice from a school of its intention to cease operations, the office shall
8.29notify the school of the date on which it must cease the enrollment of students and all
8.30postsecondary educational operations.
8.31    Without limitation as to other circumstance, a school shall be deemed to have ceased
8.32operations when the school:
8.33    (1) has an unscheduled nonemergency closure or cancellation of classes for more
8.34than 24 hours without prior notice to the office;
8.35    (2) announces it is closed or closing; or
9.1    (3) files for bankruptcy.

9.2    Sec. 18. Minnesota Statutes 2008, section 136A.646, is amended to read:
9.3136A.646 ADDITIONAL SECURITY.
9.4    (a) In the event any registered institution is notified by the United States Department
9.5of Education that it has fallen below minimum financial standards and that its continued
9.6participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
9.7Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
9.8Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
9.9institution shall provide a surety bond conditioned upon the faithful performance of all
9.10contracts and agreements with students in a sum equal to the "letter of credit" required by
9.11the United States Department of Education in the Letter of Credit Alternative, but in no
9.12event shall such bond be less than $10,000 nor more than $250,000.
9.13    (b) In lieu of a bond, the institution may deposit with the commissioner of finance:
9.14    (1) a sum equal to the amount of the required surety bond in cash; or
9.15    (2) securities, as may be legally purchased by savings banks or for trust funds, in an
9.16aggregate market value equal to the amount of the required surety bond.

9.17    Sec. 19. [136F.08] CENTRAL SYSTEM OFFICE.
9.18    Subdivision 1. Establishment. A central system office is established for the
9.19Minnesota State Colleges and Universities to provide central support to the institutions
9.20enrolling students and to assist the board in fulfilling its missions under section 136F.05.
9.21The central office must not assume responsibility for services that are most effectively
9.22and efficiently provided at the institution level. The central system office is under the
9.23direction of the chancellor.
9.24    Subd. 2. General duties. The central system office must coordinate system level
9.25responsibilities for financial management, personnel management, facilities management,
9.26information technology, credit transfer, legal affairs, government relations, and auditing.
9.27The central system office shall coordinate its services with the services provided at the
9.28institution level so as not to duplicate any functions that are provided by institutions.

9.29    Sec. 20. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is
9.30amended to read:
9.31    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State
9.32Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
9.33to 136F.97 whose aggregate principal amount at any time may not exceed $200,000,000
10.1$275,000,000, and payable from the revenue appropriated to the fund established by
10.2section 136F.94, and use the proceeds together with other public or private money that
10.3may otherwise become available to acquire land, and to acquire, construct, complete,
10.4remodel, and equip structures or portions thereof to be used for dormitory, residence hall,
10.5student union, food service, parking purposes, or for any other similar revenue-producing
10.6building or buildings of such type and character as the board finds desirable for the good
10.7and benefit of the state colleges and universities. Before issuing the bonds or any part
10.8of them, the board shall consult with and obtain the advisory recommendations of the
10.9chairs of the house of representatives Ways and Means Committee and the senate Finance
10.10Committee about the facilities to be financed by the bonds.

10.11    Sec. 21. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision
10.12to read:
10.13    Subd. 2a. Refunds. If a contract is deemed unenforceable under subdivision 2, a
10.14school must refund tuition, fees, and other charges received from a student or on behalf
10.15of a student within 30 days of receiving written notification and demand for refund from
10.16the Minnesota Office of Higher Education.

10.17    Sec. 22. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read:
10.18    Subd. 7. Minimum standards. A license shall be issued if the office first
10.19determines:
10.20    (1) that the applicant has a sound financial condition with sufficient resources
10.21available to:
10.22    (i) meet the school's financial obligations;
10.23    (ii) refund all tuition and other charges, within a reasonable period of time, in the
10.24event of dissolution of the school or in the event of any justifiable claims for refund against
10.25the school by the student body;
10.26    (iii) provide adequate service to its students and prospective students; and
10.27    (iv) maintain and support the school;
10.28    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
10.29and the necessary number of work stations to prepare adequately the students currently
10.30enrolled, and those proposed to be enrolled;
10.31    (3) that the applicant employs a sufficient number of qualified teaching personnel to
10.32provide the educational programs contemplated;
10.33    (4) that the school has an organizational framework with administrative and
10.34instructional personnel to provide the programs and services it intends to offer;
11.1    (5) that the premises and conditions under which the students work and study are
11.2sanitary, healthful, and safe, according to modern standards;
11.3    (6) that the quality and content of each occupational course or program of study
11.4provides education and adequate preparation to enrolled students for entry level positions
11.5in the occupation for which prepared;
11.6    (7) that the living quarters which are owned, maintained, recommended, or approved
11.7by the applicant for students are sanitary and safe;
11.8    (8) that the contract or enrollment agreement used by the school complies with
11.9the provisions in section 141.265;
11.10    (9) that contracts and agreements do not contain a wage assignment provision or a
11.11confession of judgment clause; and
11.12    (10) that there has been no adjudication of fraud or misrepresentation in any
11.13criminal, civil, or administrative proceeding in any jurisdiction against the school or its
11.14owner, officers, agents, or sponsoring organization.

11.15    Sec. 23. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read:
11.16    Subd. 13. Schools licensed by another state agency or board. A school required
11.17to obtain a private career school license due to the use of "academy," "institute," "college,"
11.18or "university" in its name or licensed for the purpose of participating in state financial aid
11.19under chapter 136A, and which is also licensed by another state agency or board shall be
11.20required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7),
11.21and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.

11.22    Sec. 24. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read:
11.23    Subd. 2. Conditions. The office shall adopt rules establishing the conditions for
11.24renewal of a license. The conditions shall permit two levels of renewal based on the record
11.25of the school. A school that has demonstrated the quality of its program and operation
11.26through longevity and performance in the state may renew its license based on a relaxed
11.27standard of scrutiny. A school that has been in operation in Minnesota for a limited period
11.28of time or that has not performed adequately on performance indicators shall renew its
11.29license based on a strict standard of scrutiny. The office shall specify minimum longevity
11.30standards and performance indicators that must be met before a school may be permitted
11.31to operate under the relaxed standard of scrutiny. The performance indicators used in this
11.32determination shall include, but not be limited to: degree granting status, regional or
11.33national accreditation, loan default rates, placement rate of graduates, student withdrawal
11.34rates, audit results, student complaints, and school status with the United States
12.1Department of Education. Schools that meet the requirements established in rule shall be
12.2required to submit a full relicensure report once every four years, and in the interim years
12.3will be exempt from the requirements of section 141.25, subdivision 3, clauses (4), (5),
12.4and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.

12.5    Sec. 25. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read:
12.6    Subd. 2. Unlawful designation. No school organized after November 15, 1969,
12.7shall apply to itself either as a part of its name or in any other manner the designation of
12.8"college" or "university" unless such school applies for and receives certification from the
12.9office that it meets appropriate standards and is entitled to such designation. Operating
12.10schools now using such designation may continue use thereof.

12.11    Sec. 26. Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to read:
12.12    Subd. 6. Entitlement transfers. An entitlement issuer may enter into an agreement
12.13with another entitlement issuer whereby the recipient entitlement issuer issues obligations
12.14pursuant to bonding authority allocated to the original entitlement issuer under this
12.15section. An entitlement issuer may enter into an agreement with an issuer which is not
12.16an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to
12.17$100,000 of which are issued pursuant to bonding authority allocated to the original
12.18entitlement issuer under this section. The agreement may be approved and executed by the
12.19mayor of the entitlement issuer with or without approval or review by the city council.
12.20Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota
12.21Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural
12.22Finance Authority may transfer allocated bonding authority made available under this
12.23chapter to one another under an agreement by each agency and the commissioner.

12.24    Sec. 27. Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read:
12.25    Subd. 3. Allocation procedure. (a) The commissioner shall allocate available
12.26bonding authority under this section on the Monday of every other week beginning with
12.27the first Monday in August through and on the last Monday in November. Applications
12.28for allocations must be received by the department by 4:30 p.m. on the Monday preceding
12.29the Monday on which allocations are to be made. If a Monday falls on a holiday, the
12.30allocation will be made or the applications must be received by the next business day
12.31after the holiday.
12.32    (b) Prior to October 1, only the following applications shall be awarded allocations
12.33from the unified pool. Allocations shall be awarded in the following order of priority:
13.1    (1) applications for residential rental project bonds;
13.2    (2) applications for small issue bonds for manufacturing projects; and
13.3    (3) applications for small issue bonds for agricultural development bond loan
13.4projects.
13.5    (c) On the first Monday in October through the last Monday in November,
13.6allocations shall be awarded from the unified pool in the following order of priority:
13.7    (1) applications for student loan bonds issued by or on behalf of the Minnesota
13.8Office of Higher Education;
13.9    (2) applications for mortgage bonds;
13.10    (3) applications for public facility projects funded by public facility bonds;
13.11    (4) applications for small issue bonds for manufacturing projects;
13.12    (5) applications for small issue bonds for agricultural development bond loan
13.13projects;
13.14    (6) applications for residential rental project bonds;
13.15    (7) applications for enterprise zone facility bonds;
13.16    (8) applications for governmental bonds; and
13.17    (9) applications for redevelopment bonds.
13.18    (d) If there are two or more applications for manufacturing projects from the
13.19unified pool and there is insufficient bonding authority to provide allocations for all
13.20manufacturing projects in any one allocation period, the available bonding authority shall
13.21be awarded based on the number of points awarded a project under section 474A.045
13.22with those projects receiving the greatest number of points receiving allocation first. If
13.23two or more applications for manufacturing projects receive an equal amount of points,
13.24available bonding authority shall be awarded by lot unless otherwise agreed to by the
13.25respective issuers.
13.26    (e) If there are two or more applications for enterprise zone facility projects from
13.27the unified pool and there is insufficient bonding authority to provide allocations for
13.28all enterprise zone facility projects in any one allocation period, the available bonding
13.29authority shall be awarded based on the number of points awarded a project under section
13.30474A.045 with those projects receiving the greatest number of points receiving allocation
13.31first. If two or more applications for enterprise zone facility projects receive an equal
13.32amount of points, available bonding authority shall be awarded by lot unless otherwise
13.33agreed to by the respective issuers.
13.34    (f) If there are two or more applications for residential rental projects from the
13.35unified pool and there is insufficient bonding authority to provide allocations for all
13.36residential rental projects in any one allocation period, the available bonding authority
14.1shall be awarded in the following order of priority: (1) projects that preserve existing
14.2federally subsidized housing; (2) projects that are not restricted to persons who are 55
14.3years of age or older; and (3) other residential rental projects.
14.4    (g) From the first Monday in August through the last Monday in November,
14.5$20,000,000 of bonding authority or an amount equal to the total annual amount of
14.6bonding authority allocated to the small issue pool under section 474A.03, subdivision 1,
14.7less the amount allocated to issuers from the small issue pool for that year, whichever is
14.8less, is reserved within the unified pool for small issue bonds to the extent such amounts
14.9are available within the unified pool.
14.10    (h) The total amount of allocations for mortgage bonds from the housing pool and
14.11the unified pool may not exceed:
14.12    (1) $10,000,000 for any one city; or
14.13    (2) $20,000,000 for any number of cities in any one county.
14.14    (i) The total amount of allocations for student loan bonds from the unified pool may
14.15not exceed $10,000,000 $25,000,000 per year.
14.16    (j) If there is insufficient bonding authority to fund all projects within any qualified
14.17bond category other than enterprise zone facility projects, manufacturing projects, and
14.18residential rental projects, allocations shall be awarded by lot unless otherwise agreed to
14.19by the respective issuers.
14.20    (k) If an application is rejected, the commissioner must notify the applicant and
14.21return the application deposit to the applicant within 30 days unless the applicant requests
14.22in writing that the application be resubmitted.
14.23    (l) The granting of an allocation of bonding authority under this section must be
14.24evidenced by issuance of a certificate of allocation.

14.25    Sec. 28. Laws 2010, chapter 215, article 2, section 4, subdivision 3, is amended to read:

14.26

Subd. 3.Operations and Maintenance

-0-

(9,967,000)

14.27For fiscal years 2012 and 2013, the base for
14.28operations and maintenance is $592,792,000
14.29$580,802,000 each year.

14.30    Sec. 29. Laws 2010, chapter 215, article 2, section 6, the effective date, is amended to
14.31read:
14.32EFFECTIVE DATE.This section is effective the day following final enactment,
14.33for grant awards beginning July 1, 2010.

15.1    Sec. 30. STUDY OF CERTIFICATES AND DIPLOMAS; EDUCATIONAL
15.2CAREER PATH.
15.3    The Board of Trustees of the Minnesota State Colleges and Universities, in
15.4conjunction with the Minnesota Chamber of Commerce, representatives of industry
15.5groups, and labor unions, shall study the program requirements for certificates and
15.6diplomas awarded by the Minnesota State Colleges and Universities to determine the
15.7feasibility of designing technical education programs to allow students to have more
15.8opportunities to earn credentials with lower credit requirements that could be combined
15.9into higher level certificates or diplomas. The study must consult with business and
15.10industry representatives as well as labor unions and faculty on the types of credentials that
15.11would be recognized for employment purposes. In addition, the study must address the
15.12feasibility of increasing the capacity to accumulate credentials in related programs into
15.13an educational career path leading to a diploma or degree. The study must also address
15.14the need for workers in other fields and take into account other job training programs
15.15provided by labor unions and business.
15.16    The board must report the study findings to the committees of the legislature with
15.17responsibility for postsecondary education finance by February 15, 2011.

15.18    Sec. 31. STREAMLINED MINNESOTA STATE COLLEGES AND
15.19UNIVERSITIES SYSTEM OFFICE.
15.20    Notwithstanding any law or policy to the contrary, the Board of Trustees of the
15.21Minnesota State Colleges and Universities shall streamline services provided through
15.22the system's central service office to reduce expenditures, better target the use of state
15.23resources, and provide services at the most appropriate and efficient level so as not
15.24to duplicate any services provided at the institutional level. These actions must be
15.25implemented so as to achieve budgetary savings and efficiencies in delivery of services
15.26and the accomplishment of the academic mission. The board must revise any board
15.27policies in a way that is consistent with the requirements of this section.

15.28    Sec. 32. CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND
15.29UNIVERSITIES.
15.30    (a) The Board of Trustees of the Minnesota State Colleges and Universities must
15.31develop and implement a plan to improve credit transfers within the system. At a
15.32minimum, the board must:
15.33    (1) enhance the availability of easily used information on transferring and tracking
15.34credits;
16.1    (2) improve training for all staff involved with credit transfer;
16.2    (3) identify barriers to transferring credits including intellectual property issues for
16.3faculty and devise methods to eliminate these barriers; and
16.4    (4) identify discrepancies in the treatment of transferring and accepting credits
16.5by various institutions within the system and devise methods to improve the uniform
16.6treatment of credit transfers.
16.7    (b) The board must convene working groups of affected faculty, staff, and
16.8administrators representing institutions and academic and technical disciplines in the
16.9system to work on issues and barriers to credit transfer. The purpose of the working
16.10groups is to develop specific actions that will remove any barriers to credit transfer and to
16.11improve the ease and transparency of credit transfer for students.
16.12    (c) The board must report to the legislature by January 15, 2012, on the plans for and
16.13progress towards improvements in the transfer of credits. Any proposal to develop and
16.14implement a mandatory or voluntary common course numbering system for the Minnesota
16.15State Colleges and Universities must not be required until after the receipt of the report
16.16under this section.

16.17    Sec. 33. POSTRETIREMENT HEALTH INSURANCE PREMIUM
16.18REIMBURSEMENT.
16.19    The Minnesota State Colleges and Universities system shall waive premium
16.20reimbursement payments including any late payment charges, fees, penalties, or interest
16.21payments imposed on overdue health insurance premium reimbursements owed by a
16.22college retiree to the college under a contractual or collective bargaining agreement
16.23providing for postretirement health insurance benefits arising from employment under
16.24a contract or collective bargaining agreement with a school district or technical college
16.25prior to July 1, 1995, and who became an employee of Minnesota State Colleges and
16.26Universities on July 1, 1995. This section applies only if the college has failed to bill
16.27the retiree for the premium reimbursement payments as required under the applicable
16.28collective bargaining or contractual agreement, or if not otherwise established, within 90
16.29days following the date on which the premium was due.
16.30EFFECTIVE DATE.This section is effective the day following final enactment.

16.31    Sec. 34. PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF
16.32MINNESOTA STATE COLLEGES AND UNIVERSITIES.
16.33    Subdivision 1. Establishment. To increase the distribution of potential economic
16.34benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and
17.1Universities, a pilot project is established to transfer certain reserve deposits of selected
17.2institutions from the state treasury to a community financial institution. Notwithstanding
17.3Minnesota Statutes, section 16A.27, by December 31, 2010, the commissioner of
17.4management and budget shall transfer the designated amount of board-required reserve
17.5funds of colleges and universities selected by the Board of Trustees under subdivision
17.62, to a community financial institution designated for each of the participating colleges
17.7and universities.
17.8    Subd. 2. Participating colleges and universities. By August 15, 2010, colleges
17.9and universities must apply to the Board of Trustees of the Minnesota State Colleges and
17.10Universities for participation in the pilot project. Each applicant must designate one or
17.11more community financial institutions for the deposit of board-required reserves with the
17.12terms of the deposit for each designated community financial institution. The designated
17.13community financial institution must be located in the geographic area of a participating
17.14campus. From the applicants, the board shall select up to eight postsecondary institutions
17.15to participate in the local deposit pilot project. In making its selection, the board must
17.16consider the size of the institution's reserves and the terms offered by the designated
17.17community financial institutions. Two-year and four-year institutions must be selected
17.18to participate in the pilot project and the majority of the selected institutions must be
17.19located in greater Minnesota.
17.20    By December 1, 2010, the board must notify the commissioner of management
17.21and budget of the participating colleges and universities and the associated community
17.22financial institutions.
17.23    Subd. 3. Community financial institution. As used in this section, "community
17.24financial institution" means a federally insured bank or credit union, chartered as a bank
17.25or credit union by the state of Minnesota or the United States, that is headquartered in
17.26Minnesota and that has no more than $2,500,000,000 in assets.
17.27    Subd. 4. Evaluation and report. The commissioner of management and budget and
17.28the Board of Trustees shall independently evaluate the effectiveness or harm of the local
17.29deposit pilot project in increasing the use of community financial institutions and providing
17.30wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
17.31evaluation must include the participating colleges, universities, and community financial
17.32institutions. The commissioner and the board shall report the results of the pilot project
17.33evaluation to the appropriate committees of the legislature by December 1, 2011, with
17.34recommendations on the future implementation of the pilot project.

17.35    Sec. 35. NANOTECHNOLOGY REPORT.
18.1By February 1, 2011, the Board of Regents of the University of Minnesota and
18.2the Board of Trustees of the Minnesota State Colleges and Universities shall study
18.3nanotechnology research and education and report to the committees of the legislature
18.4with responsibility for higher education, economic development, environment, and
18.5public health on the ethical issues and the principles for nanotechnology research and
18.6development and education they utilize in their institutions and nanotechnology initiatives.
18.7The report must assess ways they ensure that nanotechnology is used responsibly through
18.8standards and guidelines that protect public health and the environment and provide for
18.9occupational health and safety.

18.10    Sec. 36. SURGICAL TECHNOLOGISTS PILOT PROJECT.
18.11    Subdivision 1. Surgical technologists; training and employment pilot project.
18.12(a) The Board of Trustees of the Minnesota State Colleges and Universities shall establish
18.13a pilot project to develop partnerships and training and employment opportunities for
18.14surgical technologists. The pilot project must develop partnerships between a health care
18.15facility located within 25 miles of an accredited surgical technologist program offered by a
18.16Minnesota State Colleges and Universities institution and the institution. The partnerships
18.17must promote the employment and retention of the services of individuals to perform
18.18surgical technology tasks or functions who have successfully completed an accredited
18.19educational program for surgical technologists and who hold and maintain a certified
18.20surgical technician credential from a nationally recognized surgical technologist certifying
18.21body accredited by the National Commission for Certifying Agencies and recognized by
18.22the American College of Surgeons and the Association of Surgical Technologists.
18.23(b) Nothing in this section prohibits:
18.24(1) a participating health care facility from continuing the employment of an
18.25individual who is employed to practice surgical technology in that health care facility on
18.26the effective date of this section;
18.27(2) any licensed practitioner from performing surgical technology tasks or functions
18.28if the individual is acting within the scope of that practitioner's license;
18.29(3) any student in training to be licensed as a health care practitioner from performing
18.30surgical technology tasks or functions if under the supervision of a licensed physician; or
18.31(4) any participating health care facility from employing or retaining the services of
18.32an individual to perform tasks listed in this subdivision, provided the individual maintains
18.33a certified surgical assistant credential from the National Surgical Assistant Association.
18.34(c) This subdivision expires June 30, 2014.
19.1    Subd. 2. Report. Surgical technologist training programs of the Minnesota State
19.2Colleges and Universities must cooperate with hospitals to assure that graduates meet
19.3the standards set by hospitals for surgical technologists providing services to surgical
19.4patients. The board of trustees shall report on the pilot project under this section to the
19.5appropriate legislative chairs by January 1, 2013, with recommendations to enhance
19.6surgical technologist training and to assure an adequate supply of surgical technologist
19.7graduates to meet the needs of facilities.

19.8    Sec. 37. APPROPRIATION REDUCTIONS.
19.9    Any reduction in appropriations for the biennium ending June 30, 2011, for the
19.10central system office of the Minnesota State Colleges and Universities must not be passed
19.11through to any institution or campus. The Board of Trustees of the Minnesota State
19.12Colleges and Universities must not charge any institution for appropriation reductions
19.13made to the central office.

19.14    Sec. 38. UNIVERSITY MAYO PARTNERSHIP.
19.15    Any reductions to the University of Minnesota for operations and maintenance
19.16in fiscal year 2011 must not be allocated to the University of Minnesota and Mayo
19.17Foundation Partnership.

19.18    Sec. 39. FEDERAL HEALTH CARE REFORM.
19.19The regents of the University of Minnesota are requested to direct the Area Health
19.20Education Centers to conduct public education related to the provisions of federal health
19.21care reform legislation, as enacted under the Patient Protection and Affordable Care Act
19.22(Public Law No. 111-148) and the Health Care and Education Reconciliation Act (Public
19.23Law No. 111-152), and the potential benefits and potential negative impacts of federal
19.24health care reform to Minnesota citizens, employers, and health care providers.

19.25    Sec. 40. REPEALER.
19.26Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9b, is repealed.