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Minnesota Legislature

Office of the Revisor of Statutes

SF 1989

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32 1.33
2.1 2.2
2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25
2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 2.37
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 8.1 8.2 8.3 8.4
8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 8.31 8.32 8.33 8.34 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 9.32 9.33 9.34 9.35 9.36 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 10.32 10.33 10.34 10.35 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30 11.31 11.32 11.33 11.34 11.35 12.1 12.2 12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33 12.34 12.35 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27
13.28 13.29 13.30 13.31 13.32 13.33 13.34 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 14.32 14.33 14.34 14.35 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 16.32 16.33 16.34 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 17.33 17.34 17.35 18.1 18.2 18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30 18.31 18.32 18.33 18.34 19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9
19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 20.1 20.2
20.3 20.4 20.5 20.6 20.7 20.8 20.9 20.10 20.11 20.12 20.13 20.14
20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 20.34 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32
21.33 21.34 21.35 22.1 22.2 22.3 22.4 22.5
22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19 22.20 22.21 22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 22.32 22.33 22.34 22.35
23.1 23.2
23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10 23.11 23.12 23.13 23.14 23.15 23.16 23.17
23.18 23.19 23.20 23.21 23.22 23.23 23.24 23.25 23.26 23.27 23.28 23.29
23.30 23.31 23.32 23.33 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25
24.26 24.27 24.28 24.29 24.30 24.31 24.32 24.33 24.34 24.35
25.1 25.2 25.3 25.4 25.5 25.6 25.7 25.8 25.9 25.10 25.11 25.12 25.13 25.14
25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26
25.27 25.28 25.29 25.30 25.31 25.32 25.33 26.1 26.2 26.3 26.4 26.5 26.6 26.7 26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 26.30 26.31 26.32 26.33 26.34 26.35 26.36 27.1 27.2
27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11
27.12 27.13 27.14 27.15 27.16 27.17 27.18
27.19 27.20 27.21 27.22 27.23 27.24 27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 27.33
28.1 28.2 28.3 28.4
28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18 28.19 28.20 28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 28.32 28.33 28.34 28.35 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17
29.18 29.19 29.20 29.21 29.22
29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30 29.31 29.32 29.33 29.34 30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8
30.9 30.10 30.11 30.12 30.13 30.14
30.15 30.16 30.17 30.18 30.19
30.20 30.21 30.22
30.23 30.24 30.25 30.26 30.27 30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3
31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13
31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21 31.22 31.23
31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1
32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13
32.14 32.15 32.16 32.17 32.18 32.19 32.20 32.21 32.22
32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 33.1 33.2 33.3 33.4 33.5 33.6 33.7
33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21
33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 33.30 33.31 33.32 33.33 33.34 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14
34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 34.32 34.33 34.34 34.35 35.1 35.2 35.3 35.4 35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 35.32 35.33 35.34 35.35 35.36 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11
36.12 36.13 36.14
36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24
36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 37.1 37.2
37.3 37.4 37.5 37.6 37.7 37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 37.32 37.33 37.34 37.35 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13
38.14 38.15 38.16 38.17 38.18 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26
38.27 38.28 38.29 38.30 38.31 38.32 38.33 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14 39.15 39.16 39.17 39.18 39.19
39.20 39.21 39.22 39.23 39.24 39.25 39.26
39.27 39.28 39.29 39.30 39.31 39.32 39.33 39.34 40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12 40.13 40.14 40.15
40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26
40.27 40.28 40.29 40.30 40.31 40.32 40.33 40.34 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9
41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24
41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 41.34 42.1 42.2 42.3 42.4
42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18
42.19 42.20 42.21 42.22 42.23 42.24
42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 43.1 43.2 43.3 43.4 43.5 43.6 43.7
43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15
43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29
44.30 44.31 44.32 44.33
45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11
45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20
45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28
46.29 46.30 46.31 46.32
46.33 47.1 47.2 47.3 47.4 47.5 47.6 47.7 47.8 47.9
47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 47.33 47.34 47.35 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 48.33 48.34 48.35 48.36 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31 49.32 49.33 49.34 49.35 49.36 50.1 50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9 50.10 50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25 50.26 50.27 50.28 50.29 50.30 50.31 50.32 50.33 50.34
51.1 51.2
51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13
51.14 51.15 51.16 51.17 51.18
51.19 51.20 51.21 51.22 51.23 51.24
51.25 51.26
51.27 51.28 51.29 51.30 51.31 51.32 52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8
52.9 52.10 52.11
52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30 52.31
52.32 52.33 53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10
53.11 53.12 53.13 53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 53.30 53.31 53.32 53.33 53.34 53.35 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10 54.11 54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30
54.31 54.32 54.33 54.34 54.35 55.1 55.2 55.3 55.4 55.5 55.6 55.7 55.8
55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18
55.19 55.20 55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29 55.30 55.31 55.32 55.33 55.34 56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13 56.14 56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25 56.26 56.27 56.28 56.29 56.30 56.31 56.32 56.33 56.34 56.35 56.36 57.1 57.2 57.3 57.4 57.5 57.6 57.7 57.8 57.9 57.10 57.11 57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21 57.22 57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31 57.32 57.33 57.34 57.35 57.36 58.1 58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11 58.12 58.13 58.14 58.15 58.16
58.17 58.18 58.19 58.20 58.21
58.22 58.23 58.24 58.25 58.26
58.27 58.28 58.29 58.30 58.31 58.32 58.33 59.1 59.2 59.3 59.4
59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29
59.30 59.31 59.32 59.33 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20 60.21 60.22 60.23
60.24 60.25 60.26 60.27 60.28 60.29 60.30
60.31 60.32 60.33
61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10
61.11 61.12 61.13 61.14
61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 61.33 61.34 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11
62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 62.33 62.34 63.1 63.2 63.3 63.4 63.5 63.6 63.7 63.8 63.9
63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 63.34 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11
64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21
64.22 64.23 64.24 64.25 64.26 64.27 64.28 64.29 64.30 64.31 64.32 64.33 64.34 65.1 65.2 65.3 65.4 65.5 65.6
65.7 65.8 65.9 65.10 65.11 65.12 65.13 65.14 65.15 65.16
65.17 65.18 65.19 65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 65.33 66.1 66.2
66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10
66.11 66.12 66.13 66.14 66.15 66.16
66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29
66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8
67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25 67.26 67.27 67.28 67.29 67.30 67.31 67.32 67.33 67.34 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25
68.26 68.27 68.28 68.29 68.30 68.31 68.32 68.33 68.34 68.35 69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20
69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32

A bill for an act
relating to higher education; appropriating money; amending certain Minnesota
Office of Higher Education provisions; establishing new grant and loan
repayment programs; amending higher education programs; requiring certain
studies; making technical changes; requiring summary statistics in required
reports; repealing certain data sharing and collecting requirements; modifying
financial aid programs; establishing the Minnesota GI Bill program; regulating
private higher education institutions; providing penalties; amending certain
grant programs; eliminating obsolete references; authorizing control of certain
decreasing students' share of attendance; increasing revenue bond limits;
authorizing control of certain deposits; authorizing lease agreements; authorizing
interest rate swap; providing for the Textbook Disclosure, Pricing, and Access
Act; amending Minnesota Statutes 2006, sections 13.322, subdivision 3;
16B.70, by adding a subdivision; 41D.01, subdivision 1; 135A.01; 135A.031,
subdivisions 1, 7; 135A.034, subdivision 1; 135A.51, subdivision 2; 135A.52,
subdivisions 1, 2; 136A.031, subdivision 5; 136A.08, subdivision 7; 136A.101,
subdivisions 4, 5a; 136A.121, subdivisions 5, 7a, by adding a subdivision;
136A.125, subdivisions 2, 4; 136A.15, subdivisions 1, 6; 136A.16, subdivision
8, by adding a subdivision; 136A.1702; 136A.233, subdivision 3; 136A.29,
subdivision 9; 136A.61; 136A.62, subdivision 3; 136A.63; 136A.64; 136A.65;
136A.657, by adding a subdivision; 136A.66; 136A.67; 136A.68; 136A.69;
136A.861, subdivisions 1, 2, 3, 6; 136F.02, subdivision 1; 136F.03, subdivisions
3, 4; 136F.42, subdivision 1; 136F.58; 136F.71, subdivision 2, by adding a
subdivision; 136G.11, subdivision 5; 137.0246; 141.21, subdivisions 1a,
5; 141.25, subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265,
subdivision 2; 141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32;
141.35; 197.775, subdivision 4; proposing coding for new law in Minnesota
Statutes, chapters 135A; 136A; 136F; 137; 141; 197; repealing Minnesota
Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, 6; 135A.032;
135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; Laws 2001,
First Special Session chapter 1, article 1, sections 3, subdivision 3; 4, subdivision
5.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Summary By Fund. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by fund, made in this article.
new text end

new text begin SUMMARY BY FUND
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 1,561,945,000
new text end
new text begin $
new text end
new text begin 1,601,563,000
new text end
new text begin $
new text end
new text begin 3,163,508,000
new text end
new text begin Health Care Access
new text end
new text begin $
new text end
new text begin 2,157,000
new text end
new text begin $
new text end
new text begin 2,157,000
new text end
new text begin $
new text end
new text begin 4,314,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,564,102,000
new text end
new text begin $
new text end
new text begin 1,603,720,000
new text end
new text begin $
new text end
new text begin 3,167,822,000
new text end

new text begin Subd. 2. new text end

new text begin Summary By Agency - All Funds. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by agency, made in this article.
new text end

new text begin SUMMARY BY AGENCY - ALL FUNDS
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin Total
new text end
new text begin Minnesota Office of Higher
Education
new text end
new text begin $
new text end
new text begin 190,250,000
new text end
new text begin $
new text end
new text begin 189,776,000
new text end
new text begin $
new text end
new text begin 380,026,000
new text end
new text begin Board of Trustees of the
Minnesota State Colleges and
Universities
new text end
new text begin $
new text end
new text begin 660,914,000
new text end
new text begin $
new text end
new text begin 694,228,000
new text end
new text begin $
new text end
new text begin 1,355,142,000
new text end
new text begin Board of Regents of the
University of Minnesota
new text end
new text begin $
new text end
new text begin 706,736,000
new text end
new text begin $
new text end
new text begin 713,466,000
new text end
new text begin $
new text end
new text begin 1,420,202,000
new text end
new text begin Mayo Medical Foundation
new text end
new text begin $
new text end
new text begin 1,202,000
new text end
new text begin $
new text end
new text begin 1,250,000
new text end
new text begin $
new text end
new text begin 2,452,000
new text end
new text begin Department of Veterans
Affairs
new text end
new text begin $
new text end
new text begin 5,000,000
new text end
new text begin $
new text end
new text begin 5,000,000
new text end
new text begin $
new text end
new text begin 10,000,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,564,102,000
new text end
new text begin $
new text end
new text begin 1,603,720,000
new text end
new text begin $
new text end
new text begin 3,167,822,000
new text end

Sec. 2. new text beginHIGHER EDUCATION APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2008
new text end
new text begin 2009
new text end

Sec. 3. new text beginMINNESOTA OFFICE OF HIGHER
EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 190,250,000
new text end
new text begin $
new text end
new text begin 189,776,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin State Grants
new text end

new text begin 150,762,000
new text end
new text begin 150,510,000
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin For the biennium, the tuition maximum for
students in four-year programs is $9,838 in
each year for students in four-year programs,
and for students in two-year programs, is
$6,114 in the first year and $5,808 in the
second year.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $5,900
each year.
new text end

new text begin Subd. 3. new text end

new text begin Safety Officers Survivors
new text end

new text begin 100,000
new text end
new text begin 100,000
new text end

new text begin This appropriation is to provide educational
benefits under Minnesota Statutes, section
299A.45, to dependent children under age 23
and to the spouses of public safety officers
killed in the line of duty.
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 4. new text end

new text begin Interstate Tuition Reciprocity
new text end

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.
new text end

new text begin Subd. 5. new text end

new text begin State Work Study
new text end

new text begin 12,444,000
new text end
new text begin 12,444,000
new text end

new text begin Subd. 6. new text end

new text begin Child Care Grants
new text end

new text begin 6,184,000
new text end
new text begin 6,184,000
new text end

new text begin Subd. 7. new text end

new text begin Minitex
new text end

new text begin 5,631,000
new text end
new text begin 5,631,000
new text end

new text begin Subd. 8. new text end

new text begin MnLINK Gateway
new text end

new text begin 400,000
new text end
new text begin 400,000
new text end

new text begin Subd. 9. new text end

new text begin Learning Network of Minnesota
new text end

new text begin 4,800,000
new text end
new text begin 4,800,000
new text end

new text begin Subd. 10. new text end

new text begin Minnesota College Savings Plan
new text end

new text begin 1,020,000
new text end
new text begin 1,020,000
new text end

new text begin Subd. 11. new text end

new text begin Midwest Higher Education Compact
new text end

new text begin 90,000
new text end
new text begin 90,000
new text end

new text begin Subd. 12. new text end

new text begin Intervention for College Attendance
Program Grants
new text end

new text begin 496,000
new text end
new text begin 496,000
new text end

new text begin No more than $50,000 of this appropriation
each year may be used for administrative
expenses for the program under Minnesota
Statutes, section new text begin136A.861new text end.
new text end

new text begin Subd. 13. new text end

new text begin Achieve Success and Persistence
through Innovative Rigorous Education
new text end

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin (a) Of this amount, $1,000,000 is for
transfer to the University of Minnesota and
$1,000,000 is for transfer to the Minnesota
State Colleges and Universities to provide
courses under Minnesota Statutes, section
124D.09, subdivision 10, to high school
students living in remote and underserved
areas where the school district lacks the
resources to provide academically rigorous
educational opportunities, such as Advanced
Placement and International Baccalaureate
programs. Courses may be delivered by
a high school or postsecondary faculty
member, online, or through distance
education. Students who successfully
complete a course must receive college
credit at no cost to the student. The office
must report to the committees of the
legislature with responsibility for higher
education finance by January 15, 2009, on the
program outcomes with recommendations on
continuing and expanding the program.
new text end

new text begin (b) Of this amount, $2,000,000 is to increase
Intervention for College Attendance Program
(ICAP) grants under Minnesota Statutes,
section 136A.861. In addition to other
grants, at least two grants must be awarded
to applicants that include a scholarship
component to the project for which they are
seeking funding. The scholarships must be
awarded to individuals who are participating
in ICAP and successfully completed a
sequence of rigorous courses as identified
by the school district the student attended.
Money for the scholarship component of the
project must be raised from private funds.
new text end

new text begin Subd. 14. new text end

new text begin Other Programs
new text end

new text begin 1,199,000
new text end
new text begin 899,000
new text end

new text begin This appropriation includes funding for
student and parent information and the get
ready outreach program.
new text end

new text begin $240,000 each year is for grants to increase
campus-community collaboration and service
learning statewide, including operations of
the Minnesota campus compact, grants to
member institutions and grants for member
institution initiatives. For every $1 in state
funding, grant recipients must contribute $2
in campus or community-based support.
new text end

new text begin $250,000 in the first year is for a grant to
Augsburg College for the purpose of its
Step UP program to provide educational
opportunities to chemically dependent
students and to work with other public
and private colleges in Minnesota to help
replicate this program. This is a onetime
appropriation.
new text end

new text begin $100,000 each year must be transferred to
the Loan Repayment Assistance Program,
Inc., for loan repayment assistance awards
to attorneys who enter public interest law to
ensure that low-income and disadvantaged
populations have access to competent legal
counsel.
new text end

new text begin $50,000 in fiscal year 2008 is for the
Washington Center for Internships and
Academic Seminars for a pilot program
for scholarships for students enrolling in a
Minnesota four-year college or university
beginning in the fall semester of 2007.
The appropriation shall be available only
on a dollar-for-dollar match basis for
funds received from nonstate sources.
The Washington Center for Internships
and Academic Seminars must work with
Minnesota Colleges and Universities to
ensure that the scholarships will go to
economically disadvantaged Minnesota
students, students with demonstrated need of
financial assistance, and students traditionally
underrepresented in higher education, and
will work to ensure racial, ethnic, and gender
diversity, as well as urban/rural balance. This
is a onetime appropriation.
new text end

new text begin $250,000 each year is for the teacher
education and compensation helps (TEACH)
and the Minnesota early childhood teacher
programs in Minnesota Statutes, section
136A.126.
new text end

new text begin Subd. 15. new text end

new text begin United Family Medicine Residency
Program
new text end

new text begin 414,000
new text end
new text begin 431,000
new text end

new text begin For a grant to the United Family Medicine
residency program. This appropriation
shall be used to support up to 18 resident
physicians each year in family practice at
United Family Medicine residency programs
and shall prepare doctors to practice family
care medicine in underserved rural and
urban areas of the state. It is intended that
this program will improve health care in
underserved communities, provide affordable
access to appropriate medical care, and
manage the treatment of patients in a more
cost-effective manner. The funding base for
this program is $448,000 in fiscal year 2010
and $467,000 in fiscal year 2011.
new text end

new text begin Subd. 16. new text end

new text begin Agency Administration
new text end

new text begin 2,710,000
new text end
new text begin 2,771,000
new text end

new text begin Subd. 17. new text end

new text begin Balances Forward
new text end

new text begin A balance in the first year under this section
does not cancel, but is available for the
second year.
new text end

new text begin Subd. 18. new text end

new text begin Transfers
new text end

new text begin The Minnesota Office of Higher Education
may transfer unencumbered balances from
the appropriations in this section to the state
grant appropriation, the interstate tuition
reciprocity appropriation, the child care
grant appropriation, the state work study
appropriation, the public safety officers'
survivors appropriation, and the Minnesota
college savings plan appropriation. Transfers
from the child care or state work study
appropriations may only be made to the
extent there is a projected surplus in the
appropriation. A transfer may be made
only with the prior written approval of the
commissioner of finance and prior written
notice to the chairs of the senate and house
committees with jurisdiction over higher
education finance.
new text end

Sec. 4. new text beginBOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 660,914,000
new text end
new text begin $
new text end
new text begin 694,228,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin General Appropriation
new text end

new text begin 660,914,000
new text end
new text begin 694,228,000
new text end

new text begin This appropriation includes a permanent
increase in each year for Cook County
Higher Education to provide educational
programs and academic support services to
remote regions in northeastern Minnesota.
Cook County Higher Education must
continue to provide information to the Board
of Trustees of the Minnesota State Colleges
and Universities on the number of students
served, credit hours delivered, and services
provided to students.
new text end

new text begin This appropriation includes funding
for operation and maintenance of the
system, including technology infrastructure
improvements to deliver more online
programs and services to students; and
funding for initiatives to recruit and retain
students traditionally underrepresented in
higher education to help prepare students
for college, encourage their enrollment, and
provide services that enable them to continue
successfully to graduation.
new text end

new text begin If the Board of Trustees decides to implement
other "Strategic Advancements" initiatives,
funding must be from internal reallocation of
existing resources or enhanced productivity.
It is the expectation of the legislature that the
board will hold tuition increases to no more
than four percent per year for fiscal years
2008 and 2009.
new text end

new text begin This appropriation includes funding to
eliminate nonresident undergraduate
tuition at Saint Paul College, Minneapolis
Community and Technical College,
Rochester Community and Technical
College, Inver Hills Community College, St.
Cloud Technical College, and Normandale
Community College. In addition, the Board
of Trustees must not implement a nonresident
undergraduate tuition rate at a community
college, technical college, or consolidated
community and technical college that does
not have such a rate as of May 1, 2007, except
for a student who is a resident of a state that
has entered into a reciprocity agreement
under Minnesota Statutes, section 136A.08.
new text end

new text begin This appropriation includes funding
to identify and improve on practices
for selecting and purchasing textbooks
and course materials that are used by
students. The board, in collaboration with
the Minnesota State University Student
Association (MSUSA) and the Minnesota
State College Student Association (MSCSA)
must develop and implement pilot projects
with this appropriation to address the
financial burden that textbook prices and
requirements place on students. These
projects may include textbook rental
programs, cooperative purchasing efforts,
training, and education and awareness
programs for students and faculty on cost
considerations and textbook options. The
student associations must be fully involved in
the development and implementation of any
project using this appropriation. The board
must report, with input from MSUSA and
MSCSA, to the committees of the legislature
responsible for higher education finance by
February 15, 2009, on the success of the pilot
projects. This money is available until June
30, 2009.
new text end

new text begin This appropriation includes funding for
community-based energy development
pilot projects at Mesabi Range Technical
and Community College, the Minnesota
West Community and Technical College,
Riverland Community College, and Inver
Hills Community College. Inver Hills
Community College must partner with
the city of Inver Grove Heights on a
community-based pilot project and each
of the other campuses must establish
partnerships for community-based energy
development pilot projects that involve
students and faculty. An allocation for the
pilot project is available to the participating
institutions and the partnerships for the
biennium ending June 30, 2009.
new text end

new text begin This appropriation includes funding for a
modular clean-room research and training
facility at St. Paul College. This is a onetime
appropriation and is available until expended.
new text end

new text begin This appropriation includes funding for a
pilot project with the Northeast Minnesota
Higher Education District and high schools
in its area. Up to one-half of the first year's
appropriation may be used to purchase
equipment that is necessary to reestablish
a technical education curriculum in the
area high schools to provide the students
with the technical skills necessary for the
workforce. Students from area high schools
may also access the facilities and faculty of
the Northeast Minnesota Higher Education
District for state-of-the-art technical
education opportunities, including MnSCU's
2+2 Pathways initiative.
new text end

new text begin This appropriation includes funding for St.
Paul College to collaborate with the United
Auto Workers Local 879 to purchase a Ford
Ranger pickup truck to retrofit to run on a
battery-powered motor. This vehicle must
be retrofitted to serve as a prototype that
could be mass-produced at the St. Paul
Ford assembly plant. This is a onetime
appropriation.
new text end

new text begin This appropriation includes funding for a
grant to a Minnesota public postsecondary
institution with a total student enrollment
under 7,000 students, that has an existing
women's hockey team competing in
Division I in the Western Collegiate Hockey
Association. The institution may use the
grant for equipment, facility improvements,
travel and compensation for coaches,
trainers, and other necessary personnel. This
is a onetime appropriation.
new text end

new text begin This appropriation includes funding for a
study of student demand and employer needs
for higher education in the Mesabi Range
region of northeastern Minnesota including
the cities of Grand Rapids through Eveleth
to Ely. The board must contract for the
study which must be done in cooperation
with the Board of Regents of the University
of Minnesota, the University of Minnesota,
Duluth, and the Range Association of
Municipalities and Schools, which must act
as the lead agency in coordinating the study.
The study must specify how the identified
regional educational needs can be met by the
University of Minnesota, by the Minnesota
State Colleges and Universities, or through
degree programs offered jointly. The final
report must be submitted to the committees
of the legislature responsible for higher
education finance by January 15, 2008, with
recommendations and plans for the region.
new text end

new text begin This appropriation includes funding for a
project to establish a center at the Mesabi
Range Community and Technical College in
cooperation with the Iron Range Resources
and Rehabilitation Board (IRRRB) to
enhance the use of eFolio Minnesota by
providing on-site and Internet-based support
and technical assistance to eFolio users to
promote workforce development and access
to workforce information generated through
the eFolio Minnesota system. The board
must enhance the eFolio Minnesota system
as necessary to serve these purposes and
report annually to the legislative committees
responsible for higher education finance on
the outcomes of the center's activities.
new text end

new text begin Any amounts in the base budget allocated
to pay competitive compensation under
Laws 2005, chapter 107, article 1, section 3,
subdivision 2, must be used only to recruit or
retain quality faculty.
new text end

new text begin Subd. 4. new text end

new text begin Board Policies
new text end

new text begin (a) The board must adopt a policy that allows
students to add the cost of textbooks and
required course materials purchased at a
campus bookstore, owned by or operated
under a contract with the campus, to the
existing waivers or payment plans for tuition
and fees.
new text end

new text begin (b) By January 1, 2009, the board must adopt
a policy setting the maximum number of
semester credits required for a baccalaureate
degree at 120 semester credits or the
equivalent and the number of semester
credits required for an associate degree at
60 semester credits or the equivalent. The
board policy may provide for a process
for granting waivers for specific degree
programs in which industry or professional
accreditation standards require a greater
number of semester credits.
new text end

Sec. 5. new text beginBOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 706,736,000
new text end
new text begin $
new text end
new text begin 713,466,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2008
new text end
new text begin 2009
new text end
new text begin General
new text end
new text begin 704,579,000
new text end
new text begin 711,309,000
new text end
new text begin Health Care Access
new text end
new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Operations and Maintenance
new text end

new text begin 613,191,000
new text end
new text begin 645,921,000
new text end

new text begin This appropriation includes funding for
operation and maintenance of the system
including amounts to advance the University
of Minnesota's efforts to sustain quality
and competitiveness; and funding for the
"Advancing Education" initiatives including
an Ojibwe Indian language program on the
Duluth campus.
new text end

new text begin This appropriation includes funding to
establish banded tuition at the Morris,
Crookston, and Duluth campuses to reduce
tuition costs for students.
new text end

new text begin This appropriation includes funding for
scholarships for undergraduate Minnesota
resident students with family income under
$150,000 per year. This appropriation must
be matched with $1.50 of nonstate money for
each $1 of state money.
new text end

new text begin This appropriation includes funding for the
Center for Transportation Studies to complete
a study to assess public policy options for
reducing the volume of greenhouse gases
emitted from the transportation sector in
Minnesota. The Center for Transportation
Studies must report its preliminary findings
to the legislature by February 1, 2008, and
must issue its full report by June 1, 2008.
This is a onetime appropriation.
new text end

new text begin This appropriation includes funding to
establish an India Center to improve and
promote relations with India and Southeast
Asia. The center must partner with public
and private organizations in Minnesota to:
new text end

new text begin (1) foster an understanding of the history,
culture, and values of India;
new text end

new text begin (2) serve as a resource and catalyst to
promote economic, governmental, and
academic pursuits involving India; and
new text end

new text begin (3) facilitate educational and business
exchanges and partnerships, collaborative
research, and teaching and training activities
for Minnesota students and teachers.
new text end

new text begin The Board of Regents may establish an
advisory council to facilitate the mission
and objectives of the India Center and must
report on the progress of the India Center
by February 15, 2008, to the governor
and chairs of the legislative committees
responsible for higher education finance.
This appropriation must be matched by an
equal amount of nonstate money. This is a
onetime appropriation.
new text end

new text begin This appropriation includes funding to assist
in the formation of the neighborhood alliance
and for projects identified in section 10. The
alliance, the Board of Regents, and the city of
Minneapolis may cooperate on the projects
and may use public services of other entities
to complete all or a portion of a project. This
is a onetime appropriation.
new text end

new text begin This appropriation includes funding to
establish a Dakota language teacher training
immersion program on the Twin Cities
campus to prepare teachers to teach in
Dakota language immersion programs.
new text end

new text begin Subd. 3. new text end

new text begin Primary Care Education Initiatives
new text end

new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 4. new text end

new text begin Special Appropriations
new text end

new text begin (a) Agriculture and Extension Service
new text end
new text begin 53,175,000
new text end
new text begin 52,175,000
new text end

new text begin (1) For the Agricultural Experiment
Station, Minnesota Extension Service. This
appropriation includes additional funding
to promote alternative livestock research
and outreach, and for an ongoing organic
research and education program.
new text end

new text begin (2) This appropriation includes funding
for research efforts that demonstrate a
renewed emphasis on the needs of the state's
production agriculture community and a
continued focus on renewable energy derived
from Minnesota biomass resources including
agronomic crops, plant and animal wastes,
and native plants or trees, with priority for
extending the Minnesota vegetable growing
season; fertilizer and soil fertility research
and development; treating and curing human
diseases utilizing plant and livestock cells;
using biofuel production coproducts as
feed for livestock; and a rapid agricultural
response fund for current or emerging
animal, plant, and insect problems affecting
production or food safety. In addition, the
appropriation may be used to secure a facility
and retain current faculty levels for poultry
research currently conducted at UMore Park.
new text end

new text begin (3) In the area of renewable energy, priority
should be given to projects pertaining to:
biofuel and other energy production from
small grains; alternative bioenergy crops and
cropping systems; and growing, harvesting,
and transporting biomass plant material.
new text end

new text begin (4) This appropriation includes funding for
the college of food, agricultural, and natural
resources sciences to establish and maintain
a statewide organic research and education
initiative to provide leadership for organic
agronomic, horticultural, livestock, and food
systems research, education, and outreach
and for the purchase of state-of-the-art
laboratory, planting, tilling, harvesting, and
processing equipment necessary for this
project.
new text end

new text begin (5) By February 1, 2009, the Board
of Regents must report to the legislative
committees with responsibility for agriculture
and higher education finance on the research
and initiatives under this paragraph.
new text end

new text begin (6) The base appropriation is $52,175,000
each year of the biennium ending June 30,
2011.
new text end

new text begin (7) The Board of Regents of the University
of Minnesota is requested to refrain from
implementing corresponding reductions in
funding for the purposes for which additional
funding is provided.
new text end

new text begin (b) new text beginHealth Sciences
new text end
new text end
new text begin 5,275,000
new text end
new text begin 5,275,000
new text end

new text begin $346,000 each year is to support up to 12
resident physicians each year in the St.
Cloud Hospital family practice residency
program. The program must prepare doctors
to practice primary care medicine in the rural
areas of the state. The legislature intends
this program to improve health care in rural
communities, provide affordable access to
appropriate medical care, and manage the
treatment of patients in a more cost-effective
manner.
new text end

new text begin The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.
new text end

new text begin (c) new text beginInstitute of Technology
new text end
new text end
new text begin 1,387,000
new text end
new text begin 1,387,000
new text end

new text begin For the Geological Survey and the talented
youth mathematics program.
new text end

new text begin (d) System Specials
new text end
new text begin 6,551,000
new text end
new text begin 6,551,000
new text end

new text begin For general research, student loans matching
money, industrial relations education, Natural
Resources Research Institute, Center for
Urban and Regional Affairs, Bell Museum of
Natural History, and the Humphrey exhibit.
new text end

new text begin This appropriation includes additional
funding each year for industrial relations
education. The Board of Regents of the
University of Minnesota is requested to
refrain from implementing corresponding
reductions in funding for this purpose.
new text end

new text begin Subd. 5. new text end

new text begin University of Minnesota and Mayo
Foundation Partnership
new text end

new text begin 25,000,000
new text end
new text begin -0-
new text end

new text begin For the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. For fiscal years 2010
and 2011, the base shall be $8,000,000 in
each year. This appropriation is available
until expended. An annual report on the
expenditure of these funds must be submitted
to the governor and the chairs of the senate
and house committees responsible for higher
education and economic development by
June 30 of each fiscal year.
new text end

new text begin Subd. 6. new text end

new text begin Academic Health Center
new text end

new text begin The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is $22,250,000 each year.
new text end

Sec. 6. new text beginMAYO CLINIC
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 1,202,000
new text end
new text begin $
new text end
new text begin 1,250,000
new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Medical School
new text end

new text begin 591,000
new text end
new text begin 615,000
new text end

new text begin The state of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations. The
funding base for this program is $640,000 in
fiscal year 2010 and $665,000 in fiscal year
2011.
new text end

new text begin It is intended that during the biennium the
Mayo Clinic use the capitation money to
increase the number of doctors practicing in
rural areas in need of doctors.
new text end

new text begin Subd. 3. new text end

new text begin Family Practice and Graduate
Residency Program
new text end

new text begin 611,000
new text end
new text begin 635,000
new text end

new text begin The state of Minnesota must pay stipend
support for up to 27 residents each year. The
funding base for this program is $660,000 in
fiscal year 2010 and $686,000 in fiscal year
2011.
new text end

Sec. 7. new text beginDEPARTMENT OF VETERANS
AFFAIRS.
new text end

new text begin $
new text end
new text begin 5,000,000
new text end
new text begin $
new text end
new text begin 5,000,000
new text end

new text begin For grants to eligible veterans or the eligible
spouses and children of veterans as provided
under Minnesota Statutes, section 197.791.
If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Of this appropriation, no more than three
percent each year may be used for the
administrative costs of operating this
program.
new text end

Sec. 8. new text beginFINANCIAL AID PROGRAM STUDIES.
new text end

new text begin Subdivision 1. new text end

new text begin State grant. new text end

new text begin The Minnesota Office of Higher Education must
conduct an analysis and evaluation of the state grant program to provide information
to the legislature concerning the role of the program in promoting affordable access to
higher education in Minnesota, including promoting access for students traditionally
underrepresented in higher education. The analysis and evaluation must include:
new text end

new text begin (1) evaluation of the assigned student share compared to the current and future
income of a student, and analysis of the number of hours a student must work to meet the
assigned student share without borrowing;
new text end

new text begin (2) evaluation of the assigned family contribution, how it is determined under the
federal needs analysis, and how it compares to expectations of families in other public
programs;
new text end

new text begin (3) analysis of the ways that students and families pay the assigned student share and
the assigned family contribution;
new text end

new text begin (4) analysis of the recognized cost of attendance compared to actual attendance
costs and the ability of individuals and families at various income levels in Minnesota to
pay the cost of attendance;
new text end

new text begin (5) analysis of the actual living and miscellaneous expenses of students, with
particular attention to differences between traditional and nontraditional students, and
comparison to the amount currently used in the state grant formula; and
new text end

new text begin (6) analysis of other parameters of the program considered relevant by the office,
including prorating the state grant amount instead of the budget for the cost of attendance
and changing the definition of full-time enrollment.
new text end

new text begin Whenever possible, the analysis must include:
new text end

new text begin (i) cost estimates and information on how recommended changes affect students at
various income levels and at different higher education institutions in Minnesota; and
new text end

new text begin (ii) the distributional effects, by income quintile, of state grant program parameters
on students and families.
new text end

new text begin The office also shall assess the feasibility of expanding the eligibility for state grants to
include graduate and first professional students pursuing degree programs deemed to be
important to the workforce needs of the state. By February 15, 2008, the Minnesota
Office of Higher Education must report its preliminary findings and recommendations to
the committees in the house of representatives and senate with primary jurisdiction over
higher education policy and finance and workforce development on options to enhance
the targeting of financial aid to state grant recipients, with the final report submitted by
October 1, 2008.
new text end

new text begin Subd. 2. new text end

new text begin Workforce needs. new text end

new text begin The Minnesota Office of Higher Education must
examine existing financial aid programs that provide loans and grants to students, and the
needs of the workforce for occupations that are currently in demand or are projected to
be in demand in the future and:
new text end

new text begin (1) evaluate how effective the financial aid programs are in linking the needs of the
workforce with the student's financial aid needs;
new text end

new text begin (2) identify financial aid program options, including loan forgiveness and loan
repayment programs, that provide incentives to students to pursue degrees in occupations:
new text end

new text begin (i) with identified unmet workforce needs like speech pathologists; and
new text end

new text begin (ii) of social or economic importance to the state; and
new text end

new text begin (3) identify mechanisms, such as additional resources, to promote the growth of
occupations of social or economic importance to the state. By February 15, 2008, the office
must report its preliminary findings to the legislative committees with primary jurisdiction
over higher education policy and finance and workforce development, and provide options
and recommendations on ways to enhance the delivery of financial aid to meet the needs of
both students and the state's workforce, with the final report submitted by October 1, 2008.
new text end

Sec. 9. new text beginPOSTSECONDARY EDUCATION PARTICIPATION STUDY.
new text end

new text begin The Minnesota Office of Higher Education shall, by January 15, 2008, report to the
house and senate committees with jurisdiction over higher education policy and finance
on participation in postsecondary education by income, and persistence and graduation
rates of state grant recipients compared to students who did not receive state grants. The
Minnesota Office of Higher Education is authorized to match individual student data from
the student record enrollment database with individual student data from the state grant
database on data elements necessary to perform the study.
new text end

Sec. 10. new text beginUNIVERSITY OF MINNESOTA MINNEAPOLIS AREA
NEIGHBORHOOD ALLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given them.
new text end

new text begin (b) "Alliance" means a representative body of the constituencies, including, but
not limited to, the University of Minnesota, the city of Minneapolis, and the recognized
neighborhood organizations and business associations referenced in the report.
new text end

new text begin (c) "Board" means the Board of Regents of the University of Minnesota.
new text end

new text begin (d) "Report" means the report and appendix entitled Moving Forward Together:
University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to
the legislature in February 2007.
new text end

new text begin (e) "University partnership district" or "district" means the area located within the
city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East
Como, Prospect Park, and University, as they are defined by the city, and the university's
Minneapolis campus.
new text end

new text begin (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that
house significant numbers of university students and staff. Transportation and housing
policy analysis and planning must include these areas but they must not be included in
the projects funded through the alliance.
new text end

new text begin (g) "University" means the University of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Alliance; functions. new text end

new text begin The alliance may facilitate, initiate, or manage
projects with the board, city, or other public or private entities that are intended to
maintain the university partnership district as a viable place to study, research, and live.
Projects may include, but are not limited to, those outlined in the report, as well as
efforts to involve students in activities to maintain and improve the university partnership
district; cooperative university and university partnership district long-term planning; and
incentives to increase homeownership within the district with particular emphasis on
employees of the university and of other major employers located within the district.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The board must report to the legislature by January 15, 2009, on
the expenditure of funds appropriated under section 3.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION

Section 1.

Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:


Subd. 3.

Minnesota Office of Higher Education.

(a) General. Data sharing
involving the Minnesota Office of Higher Education and other institutions is governed
by deleted text beginsectionsdeleted text endnew text begin sectionnew text end 136A.05 deleted text beginand 136A.08, subdivision 8deleted text end.

(b) Student financial aid. Data collected and used by the Minnesota Office of
Higher Education on applicants for financial assistance are classified under section
136A.162.

(c) Minnesota college savings plan data. Account owner data, account data, and
data on beneficiaries of accounts under the Minnesota college savings plan are classified
under section 136G.05, subdivision 10.

(d) School financial records. Financial records submitted by schools registering
with the Minnesota Office of Higher Education are classified under section 136A.64.

(e) Enrollment and financial aid data. Data collected from eligible institutions on
student enrollment and federal and state financial aid are governed by sections 136A.121,
subdivision 18, and 136A.1701, subdivision 11.

Sec. 2.

Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Construction management education surcharge and account. new text end

new text begin (a)
For nonresidential construction building permits, the surcharge under subdivision 1
is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents,
whichever amount is greater, and designated for and deposited in the construction
management education account.
new text end

new text begin (b) The construction management education account is created as an account in the
special revenue fund, administered by the Minnesota Office of Higher Education for
the purpose of enhancing construction management education in public postsecondary
institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the
director of the Minnesota Office of Higher Education for the purposes of section 136A.127.
new text end

Sec. 3.

Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:


Subdivision 1.

Establishment; membership.

(a) The Minnesota Agriculture
Education Leadership Council is established. The council is composed of deleted text begin16deleted text endnew text begin 17new text end members
as follows:

(1) the chair of the University of Minnesota agricultural education program;

(2) a representative of the commissioner of education;

(3) a representative of the Minnesota State Colleges and Universities recommended
by the chancellor;

(4) the president and the president-elect of the Minnesota Association of Agriculture
Educators;

(5) a representative of the Future Farmers of America Foundation;

(6) a representative of the commissioner of agriculture;

(7) the dean of the College of Agriculture, Food, and Environmental Sciences at the
University of Minnesota;

(8)new text begin a representative of the Minnesota Private Colleges Council;
new text end

new text begin (9)new text end two members representing agriculture education and agriculture business
appointed by the governor;

deleted text begin (9)deleted text endnew text begin (10)new text end the chair of the senate Committee on Agriculture, General Legislation
and Veterans Affairs;

deleted text begin (10)deleted text endnew text begin (11)new text end the chair of the house Committee on Agriculture;

deleted text begin (11)deleted text endnew text begin (12)new text end the ranking minority member of the senate Committee on Agriculture,
General Legislation and Veterans Affairs, and a member of the senate Education
Committee designated by the Subcommittee on Committees of the Committee on Rules
and Administration; and

deleted text begin (12)deleted text endnew text begin (13)new text end the ranking minority member of the house Agriculture Committee, and a
member of the house Education Committee designated by the speaker.

(b) An ex officio member of the council under paragraph (a), clause (1), (4), (7),
deleted text begin (9),deleted text end (10), (11), deleted text beginordeleted text end (12)new text begin, or (13)new text end, may designate a permanent or temporary replacement
member representing the same constituency.

Sec. 4.

Minnesota Statutes 2006, section 135A.01, is amended to read:


135A.01 FUNDING POLICY.

It is the policy of the legislature to provide stable fundingdeleted text begin, including recognition of
the effects of inflation,
deleted text end for deleted text begininstructional services atdeleted text end public postsecondary institutions and
that the state and students share the cost of deleted text beginthose servicesdeleted text endnew text begin public postsecondary educationnew text end.
The legislature intends to provide at least 67 percent of the deleted text begininstructional services costs
for each postsecondary system
deleted text endnew text begin combined revenue from tuition, the university fee at the
University of Minnesota, and state general fund appropriations to public postsecondary
institutions
new text end. It is also the policy of the legislature that the budgetary process serves to
support high quality public postsecondary education.

Sec. 5.

new text begin [135A.011] STATE HIGHER EDUCATION OBJECTIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Statewide objectives. new text end

new text begin Minnesota's higher education investment
is made in pursuit of the following objectives: (1) to ensure quality by providing a
level of excellence that is competitive on a national and international level, through
high quality teaching, scholarship, and learning in a broad range of arts and sciences,
technical education, and professional fields; (2) to foster student success by enabling
and encouraging students to choose institutions and programs that are best suited for
their talents and abilities, and to provide an educational climate that supports students
in pursuing their goals and aspirations; (3) to promote democratic values and enhance
Minnesota's quality of life by developing understanding and appreciation of a free and
diverse society; (4) to maintain access by providing an opportunity for all Minnesotans,
regardless of personal circumstances, to participate in higher education; and (5) to enhance
the economy by assisting the state in being competitive in the world market, and to prepare
a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs.
new text end

Sec. 6.

Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read:


Subdivision 1.

Determination of appropriation.

The deleted text begindirect appropriation to each
board for instructional services shall equal 67 percent of the estimated total cost of
instruction
deleted text end new text beginappropriations new text endfor the University of Minnesotadeleted text begin, the state universities, and the
community colleges, and, for technical colleges, at least 67 percent of the estimated total
cost of instruction
deleted text endnew text begin and the Minnesota State Colleges and Universities are determined
by considering the biennial budget documents submitted under section 135A.034,
performance in advancing the objectives under section 135A.011, available resources
according to the state budget forecast, the relative balance between state support for
students and public postsecondary institutions, and other factors the legislature considers
important in determining the level of state appropriations for public postsecondary
education
new text end.

Sec. 7.

Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:


Subd. 7.

Reports.

new text begin(a) new text endInstructional new text beginand noninstructional new text endexpenditure new text begindata new text endand
enrollment data deleted text beginfor each instructional category shall be submitted in the biennial budget
document
deleted text endnew text begin must be submitted in the biennial budget document under section 135A.034.
This report must include a description of the methodology for determining instructional
and noninstructional expenditures and estimates of inflation in higher education and the
methodology or index used to determine the inflation rate
new text end.

new text begin (b) By February 1 of each even-numbered year, the Board of Regents of the
University of Minnesota and the Board of Trustees of the Minnesota State Colleges
and Universities must submit a report to the chairs of the legislative committees with
jurisdiction over higher education policy and finance. The report must describe the
following:
new text end

new text begin (1) how state appropriations made to the system in the previous odd-numbered year
were allocated and the methodology used to determine the allocation;
new text end

new text begin (2) data describing how the institution reallocated resources to advance the priorities
set forth in the budget submitted under section 135A.034 and the statewide objectives
under section 135A.011. The information must indicate whether instruction and support
programs received a reduction in or additional resources. The total amount reallocated
must be clearly explained;
new text end

new text begin (3) the tuition rates and fees established by the governing board in each of the past
ten years and comparison data for peer institutions and national averages;
new text end

new text begin (4) data on the number and proportion of students graduating within four, five,
and six years from universities and within three years from colleges as reported in the
integrated postsecondary education data system. These data must be provided for each
institution by race, ethnicity, and gender. Data and information must be submitted that
describe the system's plan and progress toward attaining the goals set forth in the plan
to increase the number and proportion of students that graduate within four, five, or six
years from a university or within three years from a college;
new text end

new text begin (5) data on, and the methodology used to measure, the number of students
traditionally underrepresented in higher education enrolled at the system's institutions.
Data and information must be submitted that describe the system's plan and progress
toward attaining the goals set forth in the plan to increase the recruitment, retention, and
timely graduation of students traditionally underrepresented in higher education; and
new text end

new text begin (6) data on the revenue received from all sources to support research or workforce
development activities or the system's efforts to license, sell, or otherwise market products,
ideas, technology, and related inventions created in whole or in part by the system. Data
and information must be submitted that describe the system's plan and progress toward
attaining the goals set forth in the plan to increase the revenue received to support research
or workforce development activities or revenue received from the licensing, sale, or other
marketing and technology transfer activities by the system.
new text end

new text begin (c) Instructional expenditure and enrollment data shall be submitted by the public
postsecondary systems to the Minnesota Office of Higher Education and the Department of
Finance and included in the biennial budget document. The specific data shall be submitted
only after the director of the Minnesota Office of Higher Education has consulted with a
data advisory task force to determine the need, content, and detail of the information.
new text end

Sec. 8.

Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read:


Subdivision 1.

Operating budget.

The governing boards of the University of
Minnesota, and the Minnesota State Colleges and Universities shall each develop, for
legislative and executive branch acceptance, its highest budget priorities in accordance
with statewide objectives for higher educationnew text begin under section 135A.011new text end. deleted text beginIt is the intent
of the legislature to appropriate at least 67 percent of the total cost of instruction after
adjusting for inflation and enrollment changes. However, in the event of a budget shortfall,
or if funding of inflation is not possible, available funding shall first be applied to the
agreed upon budget priorities.
deleted text end

Sec. 9.

new text begin [135A.135] PERSONAL FINANCIAL MANAGEMENT.
new text end

new text begin During initial student registration, each technical college, community college, or
state university shall, and the University of Minnesota is requested to, provide each
student information on personal financial management. Students should understand and
be able to manage personal finances including, but not limited to, the responsible use of
consumer credit. This requirement may be waived for a student who enrolls in a college
course providing similar instruction.
new text end

Sec. 10.

new text begin [135A.145] SALE OF STUDENT INFORMATION; MARKETING
CREDIT CARDS TO STUDENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibited practices. new text end

new text begin No public or private postsecondary
educational institution, including its agents, employees, student or alumni organizations,
or affiliates, may:
new text end

new text begin (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone
number, or other contact information of an undergraduate student at the postsecondary
educational institution without the student's consent; or
new text end

new text begin (2) enter into any agreement to market credit cards to undergraduate students at
a postsecondary educational institution.
new text end

new text begin For purposes of this section, the terms "credit," "credit card," and "card issuer"
have the meanings given them in the Truth in Lending Act, United States Code, title 15,
section 1602.
new text end

new text begin Subd. 2. new text end

new text begin Violations. new text end

new text begin The attorney general may seek the penalties and remedies
available under section 8.31 against any person who violates this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, except that it applies to
existing agreements to market credit cards upon the later of the expiration of the original
term of the agreement or the expiration of an extension of the original agreement if the
extension is in effect on July 1, 2007.
new text end

Sec. 11.

new text begin [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This section may be cited as the Textbook Disclosure,
Pricing, and Access Act.
new text end

new text begin Subd. 2. new text end

new text begin Course material disclosures required. new text end

new text begin (a) Beginning January 1, 2009,
any publisher that sells or distributes course material for classroom use in a postsecondary
institution must make the following available in an easily accessible manner to faculty,
bookstores, and postsecondary institutions in Minnesota:
new text end

new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) or
other easily identifiable information for all course materials;
new text end

new text begin (2) the undiscounted price at which the course materials are available to a bookstore;
new text end

new text begin (3) the formats, including bundled and unbundled, in which those course materials
are offered and the undiscounted prices of the various components, both sold separately or
packaged together;
new text end

new text begin (4) a summary of revisions between current and previous editions of course
materials; and
new text end

new text begin (5) the return policy for course material, including any penalties or conditions for
returns.
new text end

new text begin (b) Any publisher that sells or distributes course material for classroom use in a
postsecondary institution must make all bundled course material available to bookstores
and postsecondary institutions in an unbundled form, or must provide notice if unbundled
material is not available.
new text end

new text begin (c) Disclosure under this section is not required for mass market and trade books that
are not published, marketed, or sold primarily for classroom use in or by postsecondary
institutions.
new text end

new text begin (d) Nothing in this section shall be construed to limit any existing academic freedom
or rights of faculty members to determine the most appropriate course material for the
courses they teach.
new text end

new text begin Subd. 3. new text end

new text begin Educational strategies. new text end

new text begin Public postsecondary institutions must develop
educational materials considering the recommendations in studies by the Minnesota Office
of Higher Education and others and at least annually convene and sponsor meetings
and workshops, and provide educational strategies for faculty, students, administrators,
institutions, and bookstores to inform all interested parties on strategies for reducing the
costs of course materials for students attending postsecondary institutions.
new text end

new text begin Subd. 4. new text end

new text begin Minnesota Office of Higher Education responsibilities. new text end

new text begin (a) For private
postsecondary institutions, the Minnesota Office of Higher Education must develop
educational materials considering the recommendations by the Minnesota Office of Higher
Education and others and at least annually convene and sponsor meetings and workshops
and provide educational strategies for faculty, students, administrators, institutions, and
bookstores to inform all interested parties on strategies for reducing the costs of course
materials for students attending postsecondary institutions.
new text end

new text begin (b) The Minnesota Office of Higher Education must identify methods to compile and
distribute information on entities that sell or distribute course material for classroom use
in postsecondary institutions in a manner that meets the requirements and complies with
subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make
this information available for use by students and faculty in postsecondary institutions.
new text end

new text begin Subd. 5. new text end

new text begin Bookstores; course materials. new text end

new text begin The University of Minnesota and private
colleges are encouraged to comply with the requirements for instructors and bookstores
under section 136F.58, subdivision 2.
new text end

Sec. 12.

Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:


Subd. 2.

Senior citizen.

"Senior citizen" means a person who has reached 62 years
of age before the beginning of any term, semester or quarter, in which a course of study
is pursuednew text begin, or a person receiving a railroad retirement annuity who has reached 60 years
of age before the beginning of the term
new text end.

Sec. 13.

Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:


Subdivision 1.

Fees and tuition.

Except for an administration fee established by the
governing board at a level to recover costs, to be collected only when a course is taken for
credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
of tuition or activity fees to attend courses offered for credit, audit any courses offered
for credit, or enroll in any noncredit courses in any state supported institution of higher
education in Minnesota when space is available after all tuition-paying students have been
accommodated. A senior citizen enrolled under this section must pay any materials,
personal property, or service charges for the course. In addition, a senior citizen who is
enrolled in a course for credit must pay an administrative fee in an amount established
by the governing board of the institution to recover deleted text beginthe coursedeleted text end costs. There shall be no
administrative fee charges to a senior citizen auditing a course. For the purposes of this
section and section 135A.51, the term "noncredit courses" shall not include those courses
designed and offered specifically and exclusively for senior citizens.

The provisions of this section and section 135A.51 do not apply to noncredit courses
designed and offered by the University of Minnesota, and the Minnesota State Colleges
and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
under the provisions of this section and section 135A.51 shall not be included by such
institutions in their computation of full-time equivalent students when requesting staff
or appropriations.

Sec. 14.

Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:


Subd. 2.

Term; income of senior citizens.

(a) Except under paragraph (b), there
shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
courses, nor income limitation imposed in determining eligibility.

(b) A senior citizen enrolled in a closed enrollment contract training deleted text beginor professional
continuing education
deleted text end program is not eligible for benefits under subdivision 1.

Sec. 15.

new text begin [136A.002] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

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

new text begin Subd. 2. new text end

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

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

Sec. 16.

Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:


Subd. 5.

Expiration.

Notwithstanding section 15.059, subdivision 5, the advisory
groups established in this section new text begindo not new text endexpire deleted text beginon June 30, 2007deleted text end.

Sec. 17.

Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:


Subd. 7.

Reporting.

The Minnesota Office of Higher Education 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; deleted text beginand
deleted text end

(3) interstate payments and obligations for each state participating in the tuition
reciprocity program in the prior yeardeleted text begin.deleted text endnew text begin; and
new text end

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

Sec. 18.

Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:


Subd. 4.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution located in this state or in a state with which the office has entered
into a higher education reciprocity agreement on state student aid programs that deleted text begineitherdeleted text end (1)
is operated by this statenew text begin or the Board of Regents of the University of Minnesotanew text end, or (2) is
operated deleted text beginpublicly ordeleted text end privately and, as determined by the office, new text beginmeets all of the following:
new text endnew text begin(i) new text endmaintains academic standards substantially equivalent to those of comparable
institutions operated in this statenew text begin; (ii) is licensed or registered as a postsecondary institution
by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
Pell Grant program under Title IV of the Higher Education Act of 1965, as amended
new text end.

Sec. 19.

Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to
read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means
the amount of a deleted text beginfamilydeleted text endnew text begin family'snew text end contribution to a student's cost of attendance, as determined
by a federal need analysis. For dependent students, the assigned family responsibility is
new text begin 95 percent of new text endthe parental contribution. For independent students with dependents other
than a spouse, the assigned family responsibility is new text begin85 percent of new text endthe student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin72deleted text endnew text begin 67new text end percent of the student contribution. deleted text beginThe assigned family
responsibility for all other independent students is 90 percent of the student contribution.
deleted text end

Sec. 20.

Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:


Subd. 5.

Grant stipends.

The grant stipend shall be based on a sharing of
responsibility for covering the recognized cost of attendance by the applicant, the
applicant's family, and the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
deducting the following:

(1) the assigned student responsibility of at least deleted text begin46deleted text end new text begin45.5 new text endpercent of the cost of
attending the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $100 per academic year.

Sec. 21.

Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to
read:


Subd. 7a.

Surplus appropriation.

If the amount appropriated is determined by the
office to be more than sufficient to fund projected grant demand in the second year of the
biennium, the office may increase the living and miscellaneous expense allowance in the
second year of the biennium by up to an amount that retains sufficient appropriations
to fund the projected grant demand. The adjustment may be made one or more times.
In making the determination that there are more than sufficient funds, the office shall
balance the need for sufficient resources to meet the projected demand for grants with the
goal of fully allocating the appropriation for state grants. An increase in the living and
miscellaneous expense allowance under this subdivision does not carry forward into a
subsequent biennium. This subdivision expires June 30, deleted text begin2007deleted text end new text begin2009new text end.

Sec. 22.

Minnesota Statutes 2006, section 136A.121, is amended by adding a
subdivision to read:


new text begin Subd. 19. new text end

new text begin Reporting. new text end

new text begin By November 1 and February 15, the Office of Higher
Education must provide updated state grant spending projections taking into account
the most current and projected enrollment and tuition and fee information, economic
conditions, and other relevant factors. Before submitting state grant spending projections,
the Office of Higher Education must meet and consult with representatives of public and
private postsecondary institutions, the Department of Finance, the Governor's Office,
legislative staff, and financial aid administrators.
new text end

Sec. 23.

Minnesota Statutes 2006, 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 is entitled
to an additional semester or the equivalent of grant eligibilitynew text begin and will be considered to be
in continuing enrollment status upon return
new text end.

Sec. 24.

Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read:


Subd. 4.

Amount and length of grants.

The amount of a child care grant must be
based on:

(1) the income of the applicant and the applicant's spouse;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

The maximum award to the applicant shall be deleted text begin$2,300deleted text end new text begin$2,600 new text endfor each eligible child
per academic year, except that the campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate for higher market charges
for infant care in a community. The office shall develop policies to determine community
market costs and review institutional requests for compensatory grant increases to ensure
need and equal treatment. The office shall prepare a chart to show the amount of a grant
that will be awarded per child based on the factors in this subdivision. The chart shall
include a range of income and family size.

Sec. 25.

new text begin [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS;
MINNESOTA EARLY CHILDHOOD TEACHER EDUCATION INCENTIVE
PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin TEACH. new text end

new text begin The teacher education and compensation helps program
(TEACH) is established to provide tuition scholarships and education incentives to early
care and education providers. The director shall make a grant with appropriations for this
purpose to a nonprofit organization licensed to administer the TEACH early childhood
program.
new text end

new text begin Subd. 2. new text end

new text begin Program components. new text end

new text begin (a) The nonprofit organization must use the
grant for:
new text end

new text begin (1) tuition scholarships up to $5,000 per year for courses leading to the nationally
recognized child development associate credential or college-level courses leading to an
associate's or bachelor's degree in early childhood development and school-age care; and
new text end

new text begin (2) education incentives of a minimum of $100 to participants in the tuition
scholarship program if they complete a year of working in the early care and education
field.
new text end

new text begin (b) Applicants for the scholarship must be employed by a licensed early childhood
or child care program and working directly with children, a licensed family child care
provider, or an employee in a school-age program exempt from licensing under section
245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in
awarding the tuition scholarships. Scholarship recipients must contribute ten percent of
the total scholarship and must be sponsored by their employers, who must also contribute
ten percent of the total scholarship. Scholarship recipients who are self-employed must
contribute 20 percent of the total scholarship.
new text end

new text begin Subd. 3. new text end

new text begin Advisory committee. new text end

new text begin The TEACH early childhood and Minnesota early
childhood teacher education incentive programs may have an advisory board as prescribed
by the national TEACH organization.
new text end

Sec. 26.

new text begin [136A.127] CONSTRUCTION MANAGEMENT EDUCATION
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Construction Management Education Account Advisory
Committee.
new text end

new text begin The director must establish an advisory committee for the construction
management education account. Members of the committee must include: the executive
vice-president of the Minnesota Mechanical Contractors Association or designee, a
chapter manager of one of the Minnesota chapters of the National Electrical Contractors
Association or designee, the executive director of the Associated General Contractors of
Minnesota or designee, two members of the nonresidential construction industry, and
two construction management program coordinators or directors from an accredited
construction management program or a program in candidacy status for accreditation in
the Minnesota State Colleges and Universities and the University of Minnesota. Members
serve three-year terms. Advisory committee members are reimbursed for expenses related
to committee activities. The director may accept funds from federal, state, or local public
agencies, or from private foundations or individuals for deposit into the construction
management education account under section 16B.70. All money in the account must
be used for the purposes of this section.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin The director must make grants from the construction management
education account to maintain and increase the quality and availability of education
programs for the construction industry for purposes that include but are not limited to
maintaining and upgrading facilities, and providing greater industry access to modern
construction standards and management practices. In making grants, the director, in
consultation with the committee, must consider the following:
new text end

new text begin (1) the qualifications of any program applying for a grant;
new text end

new text begin (2) applications for American Council for Construction Education accreditation and,
when funds are available, award grants to complete the accreditation process;
new text end

new text begin (3) promotion of close ties between technical and community colleges and four-year
construction management programs; and
new text end

new text begin (4) support of the development of new educational programs with specific emphasis
on outreach to the construction industry at large.
new text end

new text begin Subd. 3. new text end

new text begin Grant awards. new text end

new text begin (a) An eligible program at the Minnesota State Colleges
and Universities or the University of Minnesota may apply for a grant. The director may
award grants to eligible programs to support construction management education and
continuing education, and to promote outreach in the construction industry.
new text end

new text begin (b) An eligible program must have one of the following:
new text end

new text begin (1) a bachelor of science construction management degree accredited by the
American Council for Construction Education;
new text end

new text begin (2) a degree with an American Council for Construction Education accredited
option, including, but not limited to, engineering technology and industrial technology;
new text end

new text begin (3) a bachelor of science degree program documenting placement of more than 50
percent of its graduates with Minnesota nonresidential contractors; and
new text end

new text begin (4) the development of a construction management curriculum to meet the American
Council for Construction Education criteria.
new text end

new text begin (c) Grant awards must be based on:
new text end

new text begin (1) the number of program graduates;
new text end

new text begin (2) the number of graduates placed with Minnesota nonresidential contractors during
the past academic year;
new text end

new text begin (3) plans to be accredited by the American Council for Construction Education
for two years, which may be renewed if the institution is continuing progress towards
accreditation;
new text end

new text begin (4) faculty recruitment and development in construction management programs,
including support for postgraduate work leading to advanced degrees, visiting lecturer
compensation and expenses, teaching assistant positions, and faculty positions; and
new text end

new text begin (5) support for general classroom and laboratory operating expenses.
new text end

new text begin Grants may only be awarded from the construction management education account
to the extent that funds are available. No other state funding may be provided for these
grants.
new text end

new text begin Subd. 4. new text end

new text begin Reports. new text end

new text begin (a) The director must annually report to the committees of the
legislature responsible for higher education finance by January 15. The report must
include the public postsecondary educational institutions that received grants, grant
amounts and purposes, the number of students served, and the number of placements
made to the construction industry.
new text end

new text begin (b) Grant recipients must report to the office on the amount of all past grants
awarded from the construction management education account and the uses of those
funds. The report must be submitted with a request for a new or continuing grant and
include information required by the office.
new text end

new text begin Subd. 5. new text end

new text begin Administration. new text end

new text begin Up to $15,000 per year from the construction
management education account may be used for the administration of this program.
new text end

Sec. 27.

Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:


Subdivision 1.

Scope.

For purposes of sections 136A.15 to 136A.1702, the terms
defined in this section have the meanings deleted text beginascribed todeleted text end new text begingiven new text endthem.

Sec. 28.

Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:


Subd. 6.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution that deleted text begineitherdeleted text end (1) is operated or regulated by this statedeleted text begin,deleted text end ornew text begin the Board of
Regents of the University of Minnesota;
new text end (2) is operated publicly or privately in another
state, is approved by the United States Secretary of Education, and, as determined by
the office, maintains academic standards substantially equal to those of comparable
institutions operated in this statenew text begin; (3) is licensed or registered as a postsecondary institution
by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
Pell Grant program under Title IV of the Higher Education Act of 1965, as amended
new text end. It
also includes any institution chartered in a province.

Sec. 29.

Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:


Subd. 8.

Investment.

Money made available to the office that is not immediately
needed for the purposes of sections 136A.15 to 136A.1702 may be invested by the office.
The money must be invested in bonds, certificates of indebtedness, and other fixed income
securities, except preferred stocks, which are legal investments for the permanent school
fund. The money may also be invested in prime quality commercial paper that is eligible
for investment in the state employees retirement fund. All interest and profits from such
investments inure to the benefit of the office or may be pledged for security of bonds
issued by the office or its deleted text beginpredecessor, the Minnesota Higher Education Coordinating
Board
deleted text endnew text begin predecessorsnew text end.

Sec. 30.

Minnesota Statutes 2006, section 136A.16, is amended by adding a
subdivision to read:


new text begin Subd. 16. new text end

new text begin Interest rate swaps and other agreements. new text end

new text begin (a) The office may enter into
interest rate exchange or swap agreements, hedges, forward purchase or sale agreements,
or other comparable interest rate protection agreements with a third party in connection
with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing
comparable interest rate protection agreements.
new text end

new text begin (b) The agreements authorized by this subdivision include without limitation master
agreements, options, or contracts to enter into those agreements in the future and related
agreements, including, without limitation, agreements to provide credit enhancement,
liquidity, or remarketing.
new text end

new text begin (c) The agreements authorized by this subdivision may be entered into on the basis
of negotiation with a qualified third party or through a competitive proposal process on
terms and conditions as and with covenants and provisions approved by the office and
may include, without limitation:
new text end

new text begin (1) provisions establishing reserves;
new text end

new text begin (2) pledging assets or revenues of the office for current or other payments or
termination payments;
new text end

new text begin (3) contracting with the other parties to the agreements to provide for the custody,
collection, securement, investment, and payment of money of the office or money held
in trust; or
new text end

new text begin (4) requiring the issuance of bonds or other agreements authorized by this section
in the future.
new text end

new text begin (d) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate
or at a different variable rate determined in accordance with a formula set out in the
agreement on an amount not exceeding the outstanding principal amount of the bonds or
notes at the time of payment in exchange for an agreement by the third party to pay sums
equal to interest on a like amount at a variable rate determined according to a formula
set out in the agreement.
new text end

new text begin (e) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a
variable rate determined in accordance with a formula set out in the agreement on an
amount not exceeding the outstanding principal amount of the bonds or notes at the time of
payment in exchange for an agreement by the third party to pay sums equal to interest on a
like amount at a fixed rate or rates determined according to a formula set in the agreement.
new text end

new text begin (f) Subject to any applicable covenants of the office, payments required to be made
by the office under the agreement, including termination payments, may be made from
amounts pledged or available to pay debt service on the bonds or notes with respect to
which the agreement was made or from assets of the loan capital fund of the office.
The office may issue bonds or notes to provide for any payments, including, without
limitation, a termination payment due or to become due under an agreement authorized
under this section.
new text end

new text begin (g) The authority of the office to enter into interest rate protection agreements under
this section is limited to agreements related to bonds and notes with an aggregate value of
no more than $20,000,000.
new text end

Sec. 31.

Minnesota Statutes 2006, section 136A.1702, is amended to read:


136A.1702 deleted text beginCOMMISSION APPROVALdeleted text endnew text begin LEGISLATIVE OVERSIGHTnew text end.

The office shall deleted text beginobtain approval fromdeleted text end new text beginnotify new text endthe deleted text beginLegislative Advisory Commissiondeleted text end
new text begin chairs of the legislative committees with primary jurisdiction over higher education
finance of any proposed material change to any of its student loan programs
new text endprior to
deleted text begin taking the following actions with regard to student loan programs described in Laws
1983, chapter 258:
deleted text end

deleted text begin (1) implementing a loan program for parents and students eligible for auxiliary loans
as defined in section 136A.15, subdivision 7;
deleted text end

deleted text begin (2) acquiring student loans from other lenders to facilitate student loan programs
provided for in section 136A.17; and
deleted text end

deleted text begin (3) providing for programs of supplemental and additional loans as defined in section
136A.1701
deleted text endnew text begin making the changenew text end.

Sec. 32.

Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:


Subd. 3.

Payments.

Work-study payments shall be made to eligible students by
postsecondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the postsecondary
institution on the basis of student financial need.

(b) In selecting students for participation, priority must be given to students enrolled
for at least 12 credits.new text begin In each academic year, a student may be awarded work-study
payments for one period of nonenrollment or less than half-time enrollment if the student
will enroll on at least a half-time basis during the following academic term.
new text end

(c) Students will be paid for hours actually worked and the maximum hourly rate
of pay shall not exceed the maximum hourly rate of pay permitted under the federal
college work-study program.

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student
compensation to be paid by an eligible employer.

(f) Each postsecondary institution receiving money for state work-study grants
shall make a reasonable effort to place work-study students in employment with eligible
employers outside the institution. However, a public employer other than the institution
may not terminate, lay off, or reduce the working hours of a permanent employee for the
purpose of hiring a work-study student, or replace a permanent employee who is on layoff
from the same or substantially the same job by hiring a work-study student.

(g) The percent of the institution's work-study allocation provided to graduate
students shall not exceed the percent of graduate student enrollment at the participating
institution.

(h) An institution may use up to 30 percent of its allocation for student internships
with private, for-profit employers.

Sec. 33.

Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:


Subd. 9.

Revenue bonds; limit.

The authority is authorized and empowered
to issue revenue bonds whose aggregate principal amount at any time shall not exceed
deleted text begin $800,000,000deleted text end new text begin$950,000,000 new text endand to issue notes, bond anticipation notes, and revenue
refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
renovating, improving, furnishing, or equipping one or more projects or parts thereof.

Sec. 34.

Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:


Subdivision 1.

Grants.

The director of the Minnesota Office of Higher Education
shall award grants to foster postsecondary attendance new text beginand retention new text endby providing outreach
services to historically underserved students in grades six through 12new text begin and historically
underrepresented college students
new text end. 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.

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

Grants shall be awarded for one year and may be renewed for a second year with
documentation to the Minnesota Office of Higher Education of successful program
outcomes.

Sec. 35.

Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:


Subd. 2.

Eligible students.

Eligible students include students in grades six through
12 who meet one or more of the following criteria:

(1) are counted under section 1124(c) of the Elementary and Secondary Education
Act of 1965 (Title I);

(2) are eligible for free or reduced-price lunch under the National School Lunch Act;

(3) receive assistance under the Temporary Assistance for Needy Families Law (Title
I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or

(4) are a member of a group traditionally underrepresented in higher education.

new text begin Eligible undergraduate students include those who met the student eligibility criteria
as 6th through 12th graders.
new text end

Sec. 36.

Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:


Subd. 3.

Application process.

The director of the Minnesota Office of Higher
Education shall develop a grant application process. The director shall attempt to support
projects in a manner that ensures that eligible students throughout the state have access
to deleted text beginprecollegedeleted text end new text beginprogram new text endservices.

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 attendancenew text begin
and support postsecondary retention
new text end;

(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 director.

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

Sec. 37.

Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:


Subd. 6.

Program evaluation.

Each grant recipient must annually submit a report
to the Minnesota Office of Higher Education 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 new text beginand undergraduate student
retention program
new text endactivities 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 deleted text beginanddeleted text endnew text begin,new text end college participationnew text begin, and college graduationnew text end 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 servicesnew text begin and
undergraduate retention programs
new text end.

Sec. 38.

Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:


Subdivision 1.

Membership.

The board consists of 15 members appointed by the
governor with the advice and consent of the senate. At least one member of the board
must be a resident of each congressional district. new text beginIn selecting appointees, the governor
must consider the needs of the Board of Trustees and the balance of the board membership
with respect to labor and business representation and racial, gender, geographic, and ethnic
composition.
new text endThree members must be students who are enrolled at least half time in a
degree, diploma, or certificate program or have graduated from an institution governed
by the board within one year of the date of appointment. The student members shall
include: one member from a community college, one member from a state university,
and one member from a technical college. new text beginTwo members must be active members of
the largest organized labor organization in Minnesota and two members must be active
members of large business associations.
new text endThe remaining members must be appointed to
represent the state at large.

Sec. 39.

Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read:


Subd. 3.

Duties.

new text begin(a) new text endThe advisory council shall:

(1) develop a statement of the selection criteria to be applied and a description
of the responsibilities and duties of a member of the board and shall distribute this to
potential candidates; and

(2) for each position on the board, identify and recruit qualified candidates for the
board, based on the background and experience of the candidates, and their potential for
discharging the responsibilities of a member of the board.

new text begin (b) Selection criteria developed under this section must include the requirement that
trustees represent diversity in geography, gender, race, occupation, and experience.
new text end

new text begin (c) Selection criteria developed under this section must also include the identification
of the membership needs of the board for individual skills relevant to the governance
of the Minnesota State Colleges and Universities and the needs for certain individual
characteristics that include geographic location, gender, race, occupation, and experience.
new text end

Sec. 40.

Minnesota Statutes 2006, section 136F.03, subdivision 4, is amended to read:


Subd. 4.

Recommendations.

new text beginExcept for seats filled under sections 136F.04 and
136F.045,
new text endthe advisory council shall recommend at least two and not more than four
candidates for each seat. By April 15 of each even-numbered year, the advisory council
shall submit its recommendations to the governor. The governor is not bound by these
recommendations.

Sec. 41.

new text begin [136F.045] LABOR AND BUSINESS MEMBER SELECTION.
new text end

new text begin (a) The largest labor organization in Minnesota is responsible for recruiting,
screening, and recommending qualified candidates for the Board of Trustees. The
organization must develop a statement of selection criteria for board membership and a
process for recommending candidates. By April 15, 2008, and every six years thereafter,
the organization must recommend to the governor four candidates for the two labor
positions on the Board of Trustees. The governor must appoint two of the candidates
recommended under this paragraph to the board.
new text end

new text begin (b) The large business associations in Minnesota are responsible for recruiting,
screening, and recommending qualified candidates for the Board of Trustees. The
associations must develop a joint statement of selection criteria for board membership
and a process for recommending candidates. By April 15, 2010, and every six years
thereafter, the associations must jointly recommend to the governor four candidates for the
two business positions on the Board of Trustees. The governor must appoint two of the
candidates recommended under this paragraph to the board.
new text end

Sec. 42.

Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:


Subdivision 1.

Time reporting.

As provided in Executive Order 96-2, the board,
in consultation with the commissioners of employee relations and finance, may develop
policies to allow system office or campus employees on salaries, as defined in section
43A.17, subdivision 1, to use negative time reporting in which employees report only that
time for which leave is taken. deleted text beginBy the end of the 1997 fiscal year, the board, in consultation
with the commissioners of employee relations and finance, shall evaluate the use of
negative time reporting and its potential for use with other state employees.
deleted text end

Sec. 43.

Minnesota Statutes 2006, section 136F.58, is amended to read:


136F.58 BOOKSTORESnew text begin; COURSE MATERIAL ACQUISITIONnew text end.

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

A state college or university may operate a bookstore
in a state college or university building, or may allocate space in a state college or
university building and permit a person or corporation to operate a bookstore without rent
at the campus' pleasure and on such conditions as the board may impose. The board may
provide insurance, at no cost to the state, for the inventory of a bookstore a state college or
university conducts in its building.

new text begin Subd. 2. new text end

new text begin Course material. new text end

new text begin (a) An instructor shall attempt to provide adequate
notice to a bookstore of the intention to order required or recommended course material
so that the bookstore can provide information for the instructor's consideration prior to
placing an order for the course material.
new text end

new text begin (b) A bookstore must make reasonable efforts to obtain from publishers or other
sources, prior to the time an instructor requests the bookstore to order course material,
the following information, including, but not limited to:
new text end

new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of
the course material;
new text end

new text begin (2) the price for the course material;
new text end

new text begin (3) whether the course material is bundled with optional material, whether it can be
unbundled, and the price for each bundled and unbundled component;
new text end

new text begin (4) whether the material is available in an alternative format and the cost for the
alternatively formatted material;
new text end

new text begin (5) the availability of the course material currently and in the future;
new text end

new text begin (6) changes to the course material from the previous edition, the revision date,
availability, and cost for that edition, if available; and
new text end

new text begin (7) any known plans for future revisions of the course material.
new text end

new text begin (c) An instructor ordering course material through a bookstore shall consider the
information received from the bookstore prior to placing the final order.
new text end

new text begin Subd. 3. new text end

new text begin Notice to purchase. new text end

new text begin (a) An instructor shall make reasonable efforts to
notify a bookstore of the final order for required and recommended course material at least
30 days prior to the commencement of the term.
new text end

new text begin (b) The bookstore must make reasonable efforts to notify students of the following
information concerning the required and recommended course material at least 15 days
prior to the commencement of the term for which the course material is required including,
but not limited to:
new text end

new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of
the course material;
new text end

new text begin (2) the price for the course material;
new text end

new text begin (3) whether the required course material is bundled with optional material, whether
it can be unbundled, and the price for each bundled and unbundled component; and
new text end

new text begin (4) whether the material is available in an alternative format and the cost for the
alternatively formatted material.
new text end

new text begin Subd. 4. new text end

new text begin System responsibility. new text end

new text begin The board shall, to the extent it considers
necessary, adopt uniform forms for bookstores to request information under subdivision 2.
The board shall encourage faculty to utilize the information received under subdivision 2
to achieve the lowest cost to students for course materials consistent with the academic
freedom and choice of the faculty member.
new text end

Sec. 44.

Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:


Subd. 2.

Activity funds.

All receipts attributable to the state colleges and
universities activity funds deleted text beginand deposited in the state treasurydeleted text end are appropriated to the board
and are not subject to budgetary control as exercised by the commissioner of finance.

Sec. 45.

Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Banking services. new text end

new text begin Notwithstanding section 16A.27, the board shall
have authority to control the amount and manner of deposit of all receipts described in
this section in depositories selected by the board. The board's authority shall include
specifying the considerations, financial activities, and conditions required from the
depository, including the requirement of collateral security or a corporate surety bond
as described in section 118A.03. The board may compensate the depository, including
paying a reasonable charge to the depository, maintaining appropriate compensating
balances with the depository, or purchasing non-interest-bearing certificates of deposit
from the depository for performing depository-related services.
new text end

Sec. 46.

Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:


Subd. 5.

Amount of matching grant.

The amount of the matching grant for a
beneficiary equals:

(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
of the contributions made to the beneficiary's account during the calendar year, not to
exceed deleted text begin$300deleted text endnew text begin $400new text end; and

(2) if the beneficiary's family income is more than $50,000 but not more than
$80,000, deleted text beginfivedeleted text endnew text begin tennew text end percent of the sum of the contributions made to the beneficiary's account
during the calendar year, not to exceed deleted text begin$300deleted text endnew text begin $400new text end.

Sec. 47.

Minnesota Statutes 2006, section 137.0246, is amended to read:


137.0246 REGENT NOMINATION AND ELECTION.

deleted text begin Subdivision 1. deleted text end

deleted text begin Governor nomination. deleted text end

deleted text begin By February 15 following the receipt
of recommendations from the advisory council, the governor must submit to the joint
committee established under subdivision 2 a slate of regent nominations that complies with
sections 137.023 and 137.024. The slate must name one nominee for each vacancy. In
selecting nominees, the governor must consider the needs of the Board of Regents and the
balance of the board membership with respect to gender, racial, and ethnic composition.
The governor must inform the joint committee how each candidate and the slate meet the
needs identified in the report under section 137.0245, subdivision 4, paragraph (b).
deleted text end

Subd. 2.

new text beginRegent nomination new text endjoint committee.

(a) The joint legislative committee
consists of deleted text begin20 legislator members. Ten members shall be appointed by the speaker of the
house. Ten members shall be appointed by the Subcommittee on Committees of the
Committee on Rules and Administration from the senate. An equal number of members
from the majority and minority party shall be appointed from each house. The members
appointed from the minority party must be appointed from among those recommended by
the minority leader. The chairs of the education policy committees and
deleted text end new text beginthe members new text endof the
higher education budget new text beginand policy new text enddivisions deleted text beginand the ranking minority member of those
committees and divisions must be appointed
deleted text endnew text begin in each house of the legislaturenew text end. new text beginThe chairs
of the divisions from each body shall be cochairs of the joint legislative committee.
new text endA
majority of the members from each house is a quorum of the joint committee.

(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent
resolution, the joint legislative committee shall meet to consider the deleted text begingovernor's nomineesdeleted text end
new text begin advisory council's recommendations new text endfor regent of the University of Minnesota for possible
presentation to a joint convention of the legislature.

(c) The joint committee may deleted text beginonlydeleted text end recommend to the joint convention deleted text beginnomineesdeleted text end
new text begin candidates new text endrecommended by the deleted text begingovernordeleted text endnew text begin advisory council and the other candidates
nominated by the joint committee
new text end. deleted text beginIf the joint committee does not recommend a
governor's nominee, the governor must submit a different nominee for the same vacancy.
deleted text endnew text begin
A candidate other than those recommended by the advisory council may be nominated
for consideration by the joint committee only if the nomination receives the support of at
least three house of representatives members of the committee and two senate members
of the committee. A candidate must receive a majority vote of members from the house
of representatives and from the senate on the joint committee to be recommended to the
joint convention. The joint committee may recommend no more than one candidate for
each vacancy. In recommending nominees, the joint committee must consider the needs of
the Board of Regents and the balance of the board membership with respect to gender,
racial, and ethnic composition.
new text end

new text begin (d) The joint committee must meet twice, approximately one week apart. The first
meeting is for the purpose of interviewing candidates and recommending candidates for
the joint committee to consider. The second meeting is for the purpose of voting for
candidates for recommendation to the joint convention.
new text end

Sec. 48.

new text begin [137.0252] APPROPRIATION; CONTRACT BUYOUT.
new text end

new text begin No appropriation from the state of Minnesota to the governing board of the
University of Minnesota shall be used directly or indirectly for costs related to the early
termination of a contract of a coach who reports to the director of athletics.
new text end

Sec. 49.

Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read:


Subd. 4.

Delayed payment of tuition.

A state college or university may not assess
late fees or other late charges for veterans who are eligible to receive federal new text beginor state
new text endeducational assistance and who have applied for that assistance but not yet received it,
nor may they prevent these students from registering for a subsequent term because of
outstanding tuition charges that arise from delayed federal new text beginor state new text endpayments. The state
college or university may request without delay the amount of tuition above expected
federal new text begin and state new text endeducational assistance and may require payment of the full amount of
tuition owed by the veteran within 30 days of receipt of the expected federal new text beginor state
new text endeducational assistance.

Sec. 50.

new text begin [197.791] MINNESOTA GI BILL PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this
section.
new text end

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

new text begin (c) "Cost of attendance" has the meaning given in section 136A.121, subdivision
6, multiplied by a factor of 1.1.
new text end

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

new text begin (e) "Eligible institution" means a postsecondary institution under section 136A.101,
subdivision 4.
new text end

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

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (1) served 90 days or more of federal active duty in a foreign country during a time
of hostilities in that country; or
new text end

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

new text begin 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.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The Minnesota GI Bill Program is established to
provide postsecondary educational assistance to eligible Minnesota veterans and to the
children and spouses of deceased and severely disabled Minnesota veterans.
new text end

new text begin The commissioner, in cooperation with eligible postsecondary educational
institutions, shall administer the program for the purpose of providing postsecondary
educational assistance to eligible persons in accordance with this section. Each public
postsecondary educational institution in the state must participate in the program and each
private postsecondary educational institution in the state is encouraged to participate in the
program. Any participating private institution may suspend or terminate its participation
in the program at the end of any semester or other academic term.
new text end

new text begin Subd. 3. new text end

new text begin Duties; responsibilities. new text end

new text begin (a) The commissioner shall establish policies
and procedures including, but not limited to, procedures for student application record
keeping, information sharing, payment of educational assistance benefits, and other
procedures the commissioner considers appropriate and necessary for effective and
efficient administration of the program established in this section.
new text end

new text begin (b) The commissioner may delegate part or all of the administrative procedures
for the program to responsible representatives of participating eligible institutions. The
commissioner may execute an interagency agreement with the Office of Higher Education
for services the commissioner determines necessary to administer the program.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility. new text end

new text begin (a) A person is eligible for educational assistance under this
section if:
new text end

new text begin (1) the person is:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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;
new text end

new text begin (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;
new text end

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

new text begin (4) the person receiving the educational assistance:
new text end

new text begin (i) is an undergraduate student at an eligible institution;
new text end

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

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

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

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

new text begin (vi) has applied for the federal Pell Grant and the Minnesota State Grant.
new text end

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

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin Subd. 5. new text end

new text begin Benefit amount. new text end

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (1) the federal Pell Grant;
new text end

new text begin (2) the state grant program under section 136A.121; and
new text end

new text begin (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.
new text end

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

new text begin (1) $1,000 per semester or term of enrollment;
new text end

new text begin (2) $2,000 per state fiscal year; and
new text end

new text begin (3) $10,000 in a lifetime.
new text end

new text begin 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 student is a
student taking fewer than 12 credits for a semester or term of enrollment.
new text end

new text begin Subd. 6. new text end

new text begin Insufficient appropriation. new text end

new text begin If the amount appropriated is determined
by the commissioner to be insufficient to pay the benefit amounts in subdivision 5, the
commissioner must reduce the amounts specified in subdivision 5, paragraph (c), clauses
(1) and (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to
qualifying coursework taken on or after that date.
new text end

Sec. 51. new text beginMINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE
AT WORTHINGTON; YMCA LEASE AGREEMENT.
new text end

new text begin (a) The Board of Trustees of Minnesota State Colleges and Universities may enter
into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on
the Minnesota West Community and Technical College at Worthington campus for the
construction of a YMCA facility. The lease may also include the city of Worthington.
new text end

new text begin (b) Siting and design of the facility must be consistent with the college's master
plan and Minnesota State Colleges and Universities' building standards. Minnesota
West Community and Technical College may negotiate for use of the facility for college
purposes. The lease must contain a provision that the lease shall terminate if the improved
property is no longer used for the partial benefit of the students at the Worthington campus.
new text end

Sec. 52. new text beginINTEREST RATE PROTECTION AGREEMENTS; REPORT.
new text end

new text begin The Office of Higher Education must report by February 1, 2009, to the senate and
house of representatives committees with primary jurisdiction over higher education
finance and policy on the results of the office's interest rate protection agreement activity
under Minnesota Statutes, section 136A.16, subdivision 16.
new text end

Sec. 53. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, and 6;
135A.032; 135A.033; 135A.045; 135A.053; 136A.07; and 136A.08, subdivision 8,
new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3;
and 4, subdivision 5,
new text end new text begin are repealed.
new text end

ARTICLE 3

PRIVATE INSTITUTIONS

Section 1.

Minnesota Statutes 2006, section 136A.61, is amended to read:


136A.61 POLICY.

The legislature has found and hereby declares that the availability of legitimate
courses and programs leading to academic degrees offered by responsible private
new text begin not-for-profit and for-profit new text endinstitutions of postsecondary education and the existence
of legitimate private colleges and universities are in the best interests of the people of
this state. The legislature has found and declares that the state can provide assistance
and protection for persons choosing private institutions and programs, by establishing
policies and procedures to assure the authenticity and legitimacy of private postsecondary
education institutions and programs. The legislature has also found and declares that
this same policy applies to any new text beginprivate and new text endpublic postsecondary educational institution
located in another state or country which offers or makes available to a Minnesota resident
any course, program or educational activity which does not require the leaving of the
state for its completion.

Sec. 2.

new text begin [136A.615] CITATION.
new text end

new text begin Sections 136A.61 to 136A.71 may be cited as the "Minnesota Private and
Out-of-State Public Postsecondary Education Act."
new text end

Sec. 3.

Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:


Subd. 3.

School.

"School" meansnew text begin:
new text end

new text begin (1)new text end any deleted text beginindividual,deleted text end partnership, company, firm, society, trust, association,
corporation, or any combination thereof, which deleted text begin(a)deleted text endnew text begin (i)new text end is, owns, or operates a private,
nonprofit postsecondary education institution; deleted text begin(b)deleted text endnew text begin (ii) is, owns, or operates a private,
for-profit postsecondary education institution; or (iii)
new text end provides a postsecondary
instructional program or course leading to a degree whether or not for profit; deleted text begin(c) is, owns,
or operates a private, postsecondary education institution which uses the term "college",
"academy", "institute" or "university" in its name; or (d) operates for profit and provides
programs or courses which are intended to allow an individual to fulfill in part or totally
the requirements necessary to maintain a license to practice an occupation. School shall
also mean
deleted text end

new text begin (2)new text end any public postsecondary educational institution located in another state or
country which offers or makes available to a Minnesota resident any course, program or
educational activity which does not require the leaving of the state for its completionnew text begin; or
new text end

new text begin (3) any individual, entity, or postsecondary institution located in another state
that contracts with any school located within the state of Minnesota for the purpose of
providing educational programs, training programs, or awarding postsecondary credits
or continuing education credits to Minnesota residents that may be applied to a degree
program
new text end.

Sec. 4.

Minnesota Statutes 2006, section 136A.63, is amended to read:


136A.63 REGISTRATION.

new text begin Subdivision 1. new text end

new text begin Annual registration. new text end

All schools located within Minnesota and
all schools located outside Minnesota which offernew text begin degreenew text end programs or courses within
Minnesota shall register annually with the office.

new text begin Subd. 2. new text end

new text begin Sale of an institution. new text end

new text begin Within 30 days of a change of its ownership a school
must submit a registration renewal application, all usual and ordinary information and
materials for an initial registration, and applicable registration fees for a new institution.
For purposes of this subdivision, "change of ownership" means a merger or consolidation
with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
the assets of a school; the transfer of a controlling interest of at least 51 percent of the
school's stock; or a change in the not-for-profit or for-profit status of a school.
new text end

Sec. 5.

Minnesota Statutes 2006, section 136A.64, is amended to read:


136A.64 INFORMATIONnew text begin REQUIRED FOR REGISTRATIONnew text end.

Subdivision 1.

Schools to provide information.

As a basis for registration, schools
shall provide the office with such information as the office needs to determine the nature
and activities of the school, including but not limited todeleted text begin, requirements for admission,
enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty
employed. The office shall have the authority to verify the accuracy of the information
submitted to it by inspection or any other means it deems necessary.
deleted text endnew text begin the following which
shall be accompanied by an affidavit attesting to its accuracy and truthfulness:
new text end

new text begin (1) articles of incorporation, constitution, bylaws, or other operating documents;
new text end

new text begin (2) a duly adopted statement of the school's mission and goals;
new text end

new text begin (3) evidence of current school or program licenses granted by departments or
agencies of any state;
new text end

new text begin (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
past fiscal year including any management letters provided by the independent auditor
or, if the school is a public institution outside Minnesota, an income statement for the
immediate past fiscal year;
new text end

new text begin (5) all current promotional and recruitment materials and advertisements; and
new text end

new text begin (6) the current school catalog and, if not contained in the catalog:
new text end

new text begin (i) the members of the board of trustees or directors, if any;
new text end

new text begin (ii) the current institutional officers;
new text end

new text begin (iii) current full-time and part-time faculty with degrees held or applicable
experience;
new text end

new text begin (iv) a description of all school facilities;
new text end

new text begin (v) a description of all current course offerings;
new text end

new text begin (vi) all requirements for satisfactory completion of courses, programs, and degrees;
new text end

new text begin (vii) the school's policy about freedom or limitation of expression and inquiry;
new text end

new text begin (viii) a current schedule of fees, charges for tuition, required supplies, student
activities, housing, and all other standard charges;
new text end

new text begin (ix) the school's policy about refunds and adjustments;
new text end

new text begin (x) the school's policy about granting credit for prior education, training, and
experience; and
new text end

new text begin (xi) the school's policies about student admission, evaluation, suspension, and
dismissal.
new text end

Subd. 2.

Financial records.

The office shall not disclose financial records new text beginor
accreditation reports
new text endprovided to it by a school pursuant to this section except for the
purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its
decision to approve or not to approve the granting of degrees or the use of a name by the
school. Section 15.17, subdivision 4, shall not apply to such records.

new text begin Subd. 3. new text end

new text begin Additional information. new text end

new text begin If the office is unable to determine the nature
and activities of a school on the basis of the information in subdivision 1, the office shall
notify the school of additional information needed.
new text end

new text begin Subd. 4. new text end

new text begin Verification of information. new text end

new text begin The office may verify the accuracy of
submitted information by inspection, visitation, or any other means it considers necessary.
new text end

new text begin Subd. 5. new text end

new text begin Public information. new text end

new text begin All information submitted to the office is public
information except financial and accreditation records and information. The office may
disclose financial records or information to defend its decision to approve or disapprove
granting of degrees or the use of a name or its decisions to revoke the approval at a hearing
under chapter 14 or other legal proceedings.
new text end

new text begin Subd. 6. new text end

new text begin Late registration penalty. new text end

new text begin Applications for renewal for any registration
received after the deadline date specified in the renewal materials provided by the office
are subject to a late fee equal to 20 percent of the annual registration renewal fee.
new text end

new text begin Subd. 7. new text end

new text begin Out-of-state expenses. new text end

new text begin A school shall reimburse the office for actual costs
associated with a site evaluation visit outside Minnesota if the visit is necessary under
subdivision 1 or 3.
new text end

Sec. 6.

new text begin [136A.645] SCHOOL CLOSURE.
new text end

new text begin When a school decides to cease postsecondary education operations, it must
cooperate with the office in assisting students to find alternative means to complete their
studies with a minimum of disruption, and inform the office of the following:
new text end

new text begin (1) the planned date for termination of postsecondary education operations;
new text end

new text begin (2) the planned date for the transfer of the student records;
new text end

new text begin (3) confirmation of the name and address of the organization to receive and hold
the student records; and
new text end

new text begin (4) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request.
new text end

new text begin Upon notice from a school of its intention to cease operations, the office shall notify the
school of the date on which it must cease the enrollment of students and all postsecondary
educational operations.
new text end

Sec. 7.

new text begin [136A.646] ADDITIONAL SECURITY.
new text end

new text begin In the event any registered institution is notified by the United States Department
of Education that it has fallen below minimum financial standards and that its continued
participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
institution shall provide a surety bond conditioned upon the faithful performance of all
contracts and agreements with students in a sum equal to the "letter of credit" required by
the United States Department of Education in the Letter of Credit Alternative, but in no
event shall such bond be less than $10,000 nor more than $250,000.
new text end

Sec. 8.

Minnesota Statutes 2006, section 136A.65, is amended to read:


136A.65 APPROVAL OF DEGREES AND NAME.

Subdivision 1.

Prohibition.

No school subject to registration shall grant a degree
unless such degree deleted text beginisdeleted text end new text beginand its underlying curriculum are new text endapproved by the office, nor
shall any school subject to registration use the name "college," "academy," "institute" or
"university" in its name without approval by the office.

new text begin Subd. 1a. new text end

new text begin Accreditation; requirement. new text end

new text begin A school must not be registered or
authorized to offer any degree at any level unless the school is accredited by an agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. Any registered school undergoing
institutional accreditation shall inform the office of site visits by the accrediting agency
and provide office staff the opportunity to attend the visits, including any exit interviews.
The institution must provide the office with a copy of the final report upon receipt.
new text end

Subd. 2.

Procedures.

The office shall establish procedures for approval, including
notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not
granted. If a hearing is requested, no disapproval shall take effect until after such hearing.

Subd. 3.

Application.

A school subject to registration shall be granted approval
to use the term "college," "academy," "institute" or "university" in its name deleted text beginwhether or
not it offers a program leading to a degree,
deleted text end if it was organized, operatingnew text begin,new text end and using such
term in its name on or before August 1, deleted text begin1975deleted text end new text begin2007new text end, and if it meets the other policies and
standards for approval established by the office.

new text begin Subd. 4. new text end

new text begin Criteria for approval. new text end

new text begin (a) A school applying to be registered and to have
its degree or degrees and name approved must substantially meet the following criteria:
new text end

new text begin (1) the school has an organizational framework with administrative and teaching
personnel to provide the educational programs offered;
new text end

new text begin (2) the school has financial resources sufficient to meet the school's financial
obligations, including refunding tuition and other charges consistent with its stated policy
if the institution is dissolved, or if claims for refunds are made, to provide service to the
students as promised, and to provide educational programs leading to degrees as offered;
new text end

new text begin (3) the school operates in conformity with generally accepted budgeting and
accounting principles;
new text end

new text begin (4) the school provides an educational program leading to the degree it offers;
new text end

new text begin (5) the school provides appropriate and accessible library, laboratory, and other
physical facilities to support the educational program offered;
new text end

new text begin (6) the school has a policy on freedom or limitation of expression and inquiry for
faculty and students which is published or available on request;
new text end

new text begin (7) the school uses only publications and advertisements which are truthful and do
not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
school, its personnel, programs, services, or occupational opportunities for its graduates
for promotion and student recruitment;
new text end

new text begin (8) the school's compensated recruiting agents who are operating in Minnesota
identify themselves as agents of the school when talking to or corresponding with students
and prospective students; and
new text end

new text begin (9) the school provides information to students and prospective students concerning:
new text end

new text begin (i) comprehensive and accurate policies relating to student admission, evaluation,
suspension, and dismissal;
new text end

new text begin (ii) clear and accurate policies relating to granting credit for prior education, training,
and experience and for courses offered by the school;
new text end

new text begin (iii) current schedules of fees, charges for tuition, required supplies, student
activities, housing, and all other standard charges;
new text end

new text begin (iv) policies regarding refunds and adjustments for withdrawal or modification
of enrollment status; and
new text end

new text begin (v) procedures and standards used for selection of recipients and the terms of
payment and repayment for any financial aid program.
new text end

new text begin (b) An application for degree approval must also include:
new text end

new text begin (i) title of degree and formal recognition awarded;
new text end

new text begin (ii) location where such degree will be offered;
new text end

new text begin (iii) proposed implementation date of the degree;
new text end

new text begin (iv) admissions requirements for the degree;
new text end

new text begin (v) length of the degree;
new text end

new text begin (vi) projected enrollment for a period of five years;
new text end

new text begin (vii) the curriculum required for the degree, including course syllabi or outlines;
new text end

new text begin (viii) statement of academic and administrative mechanisms planned for monitoring
the quality of the proposed degree;
new text end

new text begin (ix) statement of satisfaction of professional licensure criteria, if applicable;
new text end

new text begin (x) documentation of the availability of clinical, internship, externship, or practicum
sites, if applicable; and
new text end

new text begin (xi) statement of how the degree fulfills the institution's mission and goals,
complements existing degrees, and contributes to the school's viability.
new text end

new text begin Subd. 5. new text end

new text begin Requirements for degree approval. new text end

new text begin For each degree 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 degree, the school must have:
new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Name. new text end

new text begin A 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.
new text end

new text begin Subd. 7. new text end

new text begin Conditional approval. new text end

new text begin 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 end

new text begin Subd. 8. new text end

new text begin Disapproval of registration appeal. new text end

new text begin (a) If a school's degree or use of a
term in its name is disapproved by the office, the school may request a hearing under
chapter 14. The request must be in writing and made to the office within 30 days of the
date the school is notified of the disapproval.
new text end

new text begin (b) The office may refuse to renew, revoke, or suspend registration, approval of
a school's degree, or use of a regulated term in its name by giving written notice and
reasons to the school. The school may request a hearing under chapter 14. If a hearing is
requested, no revocation or suspension shall take effect until after the hearing.
new text end

new text begin (c) Reasons for revocation or suspension of registration or approval may be for one
or more of the following reasons:
new text end

new text begin (1) violating the provisions of sections 136A.61 to 136A.71;
new text end

new text begin (2) providing false, misleading, or incomplete information to the office;
new text end

new text begin (3) presenting information about the school which is false, fraudulent, misleading,
deceptive, or inaccurate in a material respect to students or prospective students; or
new text end

new text begin (4) refusing to allow reasonable inspection or to supply reasonable information after
a written request by the office has been received.
new text end

Sec. 9.

Minnesota Statutes 2006, section 136A.657, is amended by adding a
subdivision to read:


new text begin Subd. 4. new text end

new text begin Statement required; religious nature. new text end

new text begin Any degree awarded upon
completion of a religiously exempt program shall include descriptive language to make
the religious nature of the award clear.
new text end

Sec. 10.

Minnesota Statutes 2006, section 136A.66, is amended to read:


136A.66 LIST.

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

Sec. 11.

Minnesota Statutes 2006, section 136A.67, is amended to read:


136A.67 UNAUTHORIZED REPRESENTATIONS.

deleted 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 state of Minnesota
except that any
deleted text endnew text begin Anew text end school which is duly registered with the office, or any of its officials or
employees, may represent new text beginin advertising and shall disclose in catalogues, applications,
and enrollment materials
new text endthat the school is registered with the officedeleted text begin.deleted text endnew text begin 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."
new text end

Sec. 12.

Minnesota Statutes 2006, section 136A.68, is amended to read:


136A.68 RECORDS.

deleted text begin After August 1, 1975, all schools located in this state must maintain permanent
records of all students enrolled therein at any time. The office may require schools to
provide a plan acceptable to the office for preserving all such records for at least ten years.
The office may require that such plan include the filing of a continuous surety bond or a
deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
records after such school ceases to exist.
deleted text end new text begin A registered school shall maintain a permanent
record for each student for 50 years from the last date of the student's attendance. A
registered school offering distance instruction to a student located in Minnesota shall
maintain a permanent record for each Minnesota student for 50 years from the last date of
the student's attendance. Records include a student's academic transcript, documents, and
files containing student data about academic credits earned, courses completed, grades
awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
school shall submit a plan that meets the following requirements:
new text end

new text begin (1) at least one copy of the records must be held in a secure, fireproof depository
or duplicate records must be maintained off site in a secure location and in a manner
approved by the office;
new text end

new text begin (2) an appropriate official must be designated to provide a student with copies of
records or a transcript upon request;
new text end

new text begin (3) an alternative method approved by the office of complying with clauses (1) and
(2) must be established if the school ceases to exist; and
new text end

new text begin (4) if the school has no binding agreement approved by the office for preserving
student records, a continuous surety bond must be filed with the office in an amount not to
exceed $20,000. The bond shall run to the state of Minnesota.
new text end

Sec. 13.

Minnesota Statutes 2006, section 136A.69, is amended to read:


136A.69 FEES.

new text begin Subdivision 1. new text end

new text begin Registration fees. new text end

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.

new text begin Subd. 2. new text end

new text begin Degree level addition fee. new text end

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

new text begin Subd. 3. new text end

new text begin Program addition fee. new text end

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

new text begin Subd. 4. new text end

new text begin Visit or consulting fee. new text end

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

new text begin (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;
new text end

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

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

new text begin Subd. 5. new text end

new text begin Modification fee. new text end

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

new text begin (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 program;
new text end

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

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

Sec. 14.

new text begin [136A.705] PENALTY.
new text end

new text begin The director may assess fines for violations of a provision of sections 136A.61 to
136A.71. Each day's failure to comply with a provision of sections 136A.61 to 136A.71
shall be a separate violation and fines shall not exceed $500 per day per violation.
Amounts received under this section must be deposited in the special revenue fund and are
appropriated to the Office of Higher Education for the purposes in sections 136A.61 to
136A.71.
new text end

Sec. 15.

Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:


Subd. 1a.

Officenew text begin of Higher Education or officenew text end.

"Officenew text begin of Higher Educationnew text end" new text beginor
"office"
new text endmeans the Minnesota Office of Higher Education.

Sec. 16.

Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:


Subd. 5.

School.

"School" means any person, within or outside the state, who
maintains, advertises, new text beginadministers, new text endsolicitsnew text begin fornew text end, or conducts any program deleted text beginfor profitdeleted text end at deleted text beginanydeleted text endnew text begin
less than an associate degree
new text end level deleted text beginother than baccalaureate or graduate programs, and is
not specifically exempted by sections 141.21 to
deleted text end new text beginand is not registered as a private institution
under sections 136A.61 to 136A.71 and is not specifically exempted by section
new text end141.35new text begin
or 141.37
new text end. new text beginSchool also means any person, within or outside the state, who maintains,
advertises, administers, solicits for, or conducts any program at less than an associate
degree level, is not registered as a private institution pursuant to sections 136A.61 to
136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.
new text end

Sec. 17.

Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:


Subdivision 1.

Required.

A school must not maintain, advertise, solicit for,
new text begin administer, new text endor conduct any program in Minnesota without first obtaining a license from
the office.

Sec. 18.

Minnesota Statutes 2006, 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) 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.

(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) deleted text beginmaydeleted text endnew text begin shallnew text end result in denial, suspension, or revocation of the school's license.

Sec. 19.

Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:


Subd. 7.

Minimum standards.

A license shall be issued if the office first
determines:

(1) that the applicant has a sound financial condition with sufficient resources
available to:

(i) meet the school's financial obligations;

(ii) refund all tuition and other charges, within a reasonable period of time, in the
event of dissolution of the school or in the event of any justifiable claims for refund against
the school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment
and the necessary number of work stations to prepare adequately the students currently
enrolled, and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to
provide the educational programs contemplated;

(4) that the school has an organizational framework with administrative and
instructional personnel to provide the programs and services it intends to offer;

(5) that the premises and conditions under which the students work and study are
sanitary, healthful, and safe, according to modern standards;

(6) that the quality and content of each occupational course or program of study
provides education and adequate preparation to enrolled students for entry level positions
in the occupation for which prepared;

(7) that the living quarters which are owned, maintained, new text beginrecommended, new text endor approved
by the applicant for students are sanitary and safe;

(8) that the contract or enrollment agreement used by the school complies with
the provisions in section 141.265;

(9) that contracts and agreements do not contain a wage assignment provision or a
confession of judgment clause; and

(10) that there has been no adjudication of fraud or misrepresentation in any
criminal, civil, or administrative proceeding in any jurisdiction against the school or its
owner, officers, agents, or sponsoring organization.

Sec. 20.

Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:


Subd. 9.

Catalog, brochure, or electronic display.

Before a license is issued to
a school, the school shall furnish to the office a catalog, brochure, or electronic display
including:

(1) identifying data, such as volume number and date of publication;

(2) name and address of the school and its governing body and officials;

(3) a calendar of the school showing legal holidays, beginning and ending dates of
each course quarter, term, or semester, and other important dates;

(4) the school policy and regulations on enrollment including dates and specific
entrance requirements for each program;

(5) the school policy and regulations about leave, absences, class cuts, make-up
work, tardiness, and interruptions for unsatisfactory attendance;

(6) the school policy and regulations about standards of progress for the student
including the grading system of the school, the minimum grades considered satisfactory,
conditions for interruption for unsatisfactory grades or progress, a description of any
probationary period allowed by the school, and conditions of reentrance for those
dismissed for unsatisfactory progress;

(7) the school policy and regulations about student conduct and conditions for
dismissal for unsatisfactory conduct;

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
activities, laboratory fees, service charges, rentals, deposits, and all other charges;

(9) the school policy and regulations, including an explanation of section 141.271,
about refunding tuition, fees, and other charges if the student does not enter the program,
withdraws from the program, or the program is discontinued;

(10) a description of the available facilities and equipment;

(11) a course outline syllabus for each course offered showing course objectives,
subjects or units in the course, type of work or skill to be learned, and approximate time,
hours, or credits to be spent on each subject or unit;

(12) the school policy and regulations about granting credit for previous education
and preparation;

(13) new text begina notice to students relating to the transferability of any credits earned at the
school to other institutions;
new text end

new text begin (14) new text enda procedure for investigating and resolving student complaints; and

deleted text begin (14)deleted text endnew text begin (15)new text end the name and address of the Minnesota Office of Higher Education.

A school that is exclusively a distance education school is exempt from clauses
(3) and (5).

Sec. 21.

Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:


Subd. 10.

Placement records.

(a) Before a license is deleted text beginissueddeleted text endnew text begin reissuednew text end to a school
that offers, advertises or implies a placement service, the school shall file with the office
for the past year and thereafter at reasonable intervals determined by the office, a certified
copy of the school's placement record, containing a list of graduates, a description of their
jobs, names of their employers, and other information as the office may prescribe.

(b) Each school that offers a placement service shall furnish to each prospective
student, new text beginupon request, new text endprior to enrollment, written information concerning the percentage
of the previous year's graduates who were placed in the occupation for which prepared or
in related employment.

Sec. 22.

Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:


Subd. 12.

Permanent records.

A school licensed under this chapter and located
in Minnesota shall maintain a permanent record for each student for 50 years from the
last date of the student's attendance. A school licensed under this chapter and offering
distance instruction to a student located in Minnesota shall maintain a permanent record
for each Minnesota student for 50 years from the last date of the student's attendance.
Records include school transcripts, documents, and files containing student data about
academic credits earned, courses completed, grades awarded, degrees awarded, and
periods of attendance. To preserve permanent records, a school shall submit a plan that
meets the following requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository;

(2) an appropriate official must be designated to provide a student with copies of
records or a transcript upon request;

(3) an alternative method, approved by the office, of complying with clauses (1) and
(2) must be established if the school ceases to exist; and

(4) a continuous surety bond must be filed with the office in an amount not to exceed
$20,000 if the school has no binding agreement new text beginapproved by the office, new text endfor preserving
student records deleted text beginor a trust must be arranged if the school ceases to existdeleted text end.new text begin The bond shall run
to the state of Minnesota.
new text end

Sec. 23.

Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:


Subd. 2.

Renewal licensure fee; late fee.

(a) The office processing fee for a
renewal licensure application is:

(1) for a category A school, as determined by the office, the fee is $865 if the school
offers one program or $1,150 if the school offers two or more programs; and

(2) for a category B or C school, as determined by the office, the fee is $430 if the
school offers one program or $575 if the school offers two or more programs.

(b) If a license renewal application is not received by the office by the close of
business at least 60 days before the expiration of the current license, a late fee of $100
per business daynew text begin, not to exceed $3,000,new text end shall be assessed.

Sec. 24.

Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:


Subd. 2.

Contract information.

A contract or enrollment agreement used by a
school must include at least the following:

(1) the name and address of the school, clearly stated;

(2) a clear and conspicuous disclosure that the agreement is a legally binding
instrument upon written acceptance of the student by the school unless canceled under
section 141.271;

(3) the school's cancellation and refund policy that shall be clearly and conspicuously
entitled "Buyer's Right to Cancel";

(4) a clear statement of total cost of the program including tuition and all other
charges;

(5) the name and description of the program, including the number of hours or
credits of classroom instruction, or distance instruction, that shall be included; and

(6) a clear and conspicuous explanation of the form and means of notice the student
should use in the event the student elects to cancel the contract or sale, the effective
date of cancellation, and the name and address of the seller to which the notice should
be sent or delivered.

new text begin The contract or enrollment agreement must not include a wage assignment provision or a
confession of judgment clause.
new text end

Sec. 25.

Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:


Subd. 10.

Cancellation occurrence.

Written notice of cancellation shall take place
on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
carried, it shall occur on the date the notice is delivered to the school. If a student has not
attended deleted text beginclassesdeleted text endnew text begin classnew text end for a period of 21 consecutive daysnew text begin without contacting the school to
indicate an intent to continue in school or otherwise making arrangements concerning the
absence
new text end, the student is considered to have withdrawn from school for all purposes as of
the student's last documented date of attendance.

Sec. 26.

Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:


Subd. 12.

Instrument not to be negotiated.

A school shall not negotiate any
promissory instrument received as payment of tuition or other charge prior to completion
of 50 percent of the programdeleted text begin.deleted text endnew text begin, except thatnew text end prior to that time, instruments may be transferred
by assignment to purchasers who shall be subject to all defenses available against the
school named as payee.

Sec. 27.

Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:


Subdivision 1.

deleted text beginNot to advertise state approvaldeleted text endnew text begin Disclosure requirednew text end.

deleted text beginSchools,
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 any
deleted text endnew text begin Anew text end
school, agent, or solicitor may deleted text beginadvertisedeleted text end new text beginrepresent in advertisements and shall disclose
in catalogues, applications, and enrollment materials
new text endthat the school deleted text beginand solicitor have
been
deleted text endnew text begin isnew text end duly licensed by the state deleted text beginusingdeleted text endnew text begin by prominently displayingnew text end the following deleted text beginlanguagedeleted text endnew text begin
statement
new text end:

"(Name of school) is licensed as a private career school with the Minnesota Office of
Higher Educationnew text begin pursuant to Minnesota Statutes, sections 141.21 to 141.32new text end. Licensure is
not an endorsement of the institution. Credits earned at the institution may not transfer to
all other institutions. deleted text beginThe educational programs may not meet the needs of every student
or employer.
deleted text end"

Sec. 28.

Minnesota Statutes 2006, section 141.32, is amended to read:


141.32 PENALTY.

deleted text begin Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
to comply with this chapter shall be a separate violation. The office shall adopt rules
establishing a list of civil penalties and the fine associated with each violation. Fines
for violations shall not exceed $500 per day per violation.
deleted text end new text begin The director may assess
fines for violations of a provision of this chapter. Each day's failure to comply with this
chapter shall be a separate violation and fines shall not exceed $500 per day per violation.
Amounts received under this section must be deposited in the special revenue fund and are
appropriated to the Office of Higher Education for the purposes of this chapter.
new text end

Sec. 29.

Minnesota Statutes 2006, section 141.35, is amended to read:


141.35 EXEMPTIONS.

Sections 141.21 to deleted text begin141.35deleted text endnew text begin 141.32new text end shall not apply to the following:

(1) public postsecondary institutions;

(2) deleted text beginprivatedeleted text end postsecondary institutions registered under sections deleted text begin136A.61deleted text end new text begin136A.615
new text endto 136A.71 deleted text beginthat are nonprofit, or that are for profit and registered under sections 136A.61
to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate
or postbaccalaureate programs
deleted text end;

(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 licenses;

(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 office;

(10) deleted text begindriver training schools and instructors as defined in section 171.33, subdivisions
1 and 2
;
deleted text end

deleted text begin (11)deleted text end classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

deleted text begin (12)deleted text endnew text begin (11)new text end 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;

deleted text begin (13)deleted text endnew text begin (12)new text end 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;

deleted text begin (14)deleted text endnew text begin (13)new text end classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing and occupational
entrance examinations;

deleted text begin (15)deleted text endnew text begin (14)new text end 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 employment;

deleted text begin (16)deleted text endnew text begin (15)new text end classes, courses, or programs providing instruction in personal
development, modeling, or acting;

deleted text begin (17)deleted text endnew text begin (16)new text end 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

deleted text begin (18)deleted text endnew text begin (17)new text end 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.

Sec. 30.

new text begin [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin Any school or any department or branch of a school:
new text end

new text begin (1) which is substantially owned, operated, or supported by a bona fide church
or religious organization;
new text end

new text begin (2) whose programs are primarily designed for, aimed at, and attended by persons
who sincerely hold or seek to learn the particular religious faith or beliefs of that church or
religious organization; and
new text end

new text begin (3) whose programs are primarily intended to prepare its students to become
ministers of, to enter into some other vocation closely related to, or to conduct their lives
in consonance with the particular faith of that church or religious organization,
new text end

new text begin is exempt from the provisions of sections 141.21 to 141.32.
new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin (a) An exemption shall not extend to any school, department
or branch of a school, or program of a school which through advertisements or solicitations
represents to any students or prospective students that the school, its aims, goals, missions,
purposes, or programs are different from those described in subdivision 1.
new text end

new text begin (b) An exemption shall not extend to any school which represents to any student or
prospective student that the major purpose of its programs is to:
new text end

new text begin (1) prepare the student for a vocation not closely related to that particular religious
faith; or
new text end

new text begin (2) provide the student with a general educational program recognized by other
schools or the broader educational, business, or social community as being substantially
equivalent to the educational programs offered by schools or departments or branches of
schools which are not religious in nature and are not exempt from chapter 141 and from
rules adopted pursuant under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Scope. new text end

new text begin Nothing in this chapter or the rules adopted under it shall be
interpreted as permitting the office to determine the truth or falsity of any particular set
of religious beliefs.
new text end

new text begin Subd. 4. new text end

new text begin Descriptive language required. new text end

new text begin Any certificate, diploma, degree, or other
formal recognition awarded upon completion of any religiously exempt program shall
include such descriptive language as to make the religious nature of the award clear.
new text end

Sec. 31. new text beginEFFECTIVE DATE; TRANSITION PROCESS.
new text end

new text begin This article is effective July 1, 2007. Schools licensed pursuant to Minnesota
Statutes, chapter 141, that qualify for private institution registration after July 1, 2007,
shall apply for and complete the process for registration prior to the expiration of their
current private career school license under Minnesota Statutes, chapter 141. Schools
registered as private institutions pursuant to Minnesota Statutes, sections 136A.61 to
136A.71, that are required to obtain a private career school license after July 1, 2007, shall
apply for and complete the process for licensure prior to the expiration of the current
registration, but in any event no later than December 31, 2007. If the office finds it
is necessary to allow for the proper processing of license or registration applications
required by this section, the office is authorized to extend existing license or registration
for a reasonable period of time.
new text end