SF 1989

Conference Committee Report - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to higher education; appropriating money for higher education and
related purposes to the Office of Higher Education, the Board of Trustees of
the Minnesota State Colleges and Universities, the board of Regents of the
University of Minnesota, and the Mayo Clinic, with certain conditions; requiring
certain studies; creating a task force to reduce costs of course materials; making
technical changes; eliminating certain report requirements; permitting certain
interest rate savings and other agreements; requiring summary statistics in
required reports; repealing certain data sharing and collecting requirements;
modifying financial aid programs; establishing a scholarship program for high
achieving high school students; establishing the Minnesota GI bill program;
regulating private higher education institutions; providing penalties; amending
Minnesota Statutes 2006, sections 13.322, subdivision 3; 135A.01; 135A.031,
subdivisions 1, 7; 135A.034, subdivision 1; 135A.14, subdivision 1; 135A.52,
subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision 5; 136A.0411;
136A.08, subdivision 7; 136A.101, subdivisions 4, 5a; 136A.121, subdivision
7a, by adding a subdivision; 136A.125, subdivisions 2, 4; 136A.15, subdivisions
1, 6; 136A.16, subdivisions 1, 2, 5, 8, 9, 10, by adding a subdivision; 136A.17,
subdivision 1; 136A.1701, subdivisions 1, 2, 5; 136A.233, subdivision 3;
136A.29, subdivision 9; 136A.62, subdivision 3; 136A.63; 136A.65, subdivision
1, by adding a subdivision; 136A.653; 136A.657, subdivisions 1, 2, 3, by adding
a subdivision; 136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861,
subdivisions 1, 2, 3, 6; 136F.02, subdivisions 1, 2; 136F.03, subdivision 3;
136F.42, subdivision 1; 136F.58; 136F.70, by adding a subdivision; 136F.71,
subdivision 2, by adding a subdivision; 136G.11, subdivision 5; 137.0245,
subdivision 4; 137.0246, subdivision 2; 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; 141; 197; repealing Minnesota Statutes 2006, sections 135A.031,
subdivisions 2, 3, 5, 6; 135A.032; 135A.033; 135A.045; 135A.053; 136A.07;
136A.08, subdivision 8; 136A.1702; 136A.61; 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 1,509,963,000 new text end	new text begin $ new text end	new text begin 1,588,057,000 new text end	new text begin $ new text end	new text begin 3,098,020,000 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 1,512,120,000 new text end	new text begin $ new text end	new text begin 1,590,214,000 new text end	new text begin $ new text end	new text begin 3,102,334,000 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 Office of Higher Education new text end	new text begin $ new text end	new text begin 181,892,000 new text end	new text begin $ new text end	new text begin 195,700,000 new text end	new text begin $ new text end	new text begin 377,592,000 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 651,942,000 new text end	new text begin $ new text end	new text begin 688,498,000 new text end	new text begin $ new text end	new text begin 1,340,440,000 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 677,188,000 new text end	new text begin $ new text end	new text begin 704,864,000 new text end	new text begin $ new text end	new text begin 1,382,052,000 new text end
new text begin Mayo Medical Foundation new text end	new text begin $ new text end	new text begin 1,098,000 new text end	new text begin $ new text end	new text begin 1,152,000 new text end	new text begin $ new text end	new text begin 2,250,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,512,120,000 new text end	new text begin $ new text end	new text begin 1,590,214,000 new text end	new text begin $ new text end	new text begin 3,102,334,000 new text end

Sec. 2. new text begin HIGHER 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. Appropriations for the fiscal
year ending June 30, 2007, are effective the day following final enactment.
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 begin MINNESOTA 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 181,892,000 new text end

new text begin $ new text end

new text begin 195,700,000 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 Grant Program new text end

new text begin 138,604,000 new text end

new text begin 139,824,000 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 and fee
maximum shall be $9,838 for students
enrolled in four-year programs and $6,836
for students enrolled in two-year programs.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $5,550
each year.
new text end

new text begin Subd. 3. new text end new text begin Minnesota GI Bill Program new text end

new text begin 5,000,000 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, $152,000 the first
year and $104,000 the second year are for
the administrative costs of operating this
program. $104,000 is added to the agency's
base funding for program administration.
new text end

new text begin Subd. 4. new text end new text begin ACHIEVE Scholarship Grants new text end

new text begin -0- new text end

new text begin 13,000,000 new text end

new text begin For scholarship awards under Minnesota
Statutes, section 136A.127. The funding
base for this program is $6,500,000 in fiscal
years 2010 and 2011.
new text end

new text begin Subd. 5. new text end new text begin Public 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 the spouses of public safety officers
killed in the line of duty.
new text end

new text begin Subd. 6. 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. 7. 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. 8. new text end new text begin Child Care Grants new text end

new text begin 6,411,000 new text end

new text begin 6,411,000 new text end

new text begin Subd. 9. new text end new text begin Minitex new text end

new text begin 6,003,000 new text end

new text begin 5,806,000 new text end

new text begin Subd. 10. 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. 11. 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. 12. 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. 13. 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. 14. new text end new text begin Intervention for College Attendance Program Grants new text end

new text begin 624,000 new text end

new text begin 624,000 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 end

new text begin Subd. 15. new text end new text begin Other Programs new text end

new text begin 1,310,000 new text end

new text begin 1,010,000 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 $150,000 each year is for grants to increase
campus-community collaboration and service
learning statewide. 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 fiscal year 2008 is for a grant to
Augsburg College for the Step UP program,
which provides educational opportunities
to chemically dependent students. This is a
onetime appropriation.
new text end

new text begin $150,000 each year is for making one or
more grants to nonprofit training entities
to train teachers of indigenous Native
American languages. The director may
solicit requests for proposals for grants and
shall award grants based on the proposal's
potential for training teachers of indigenous
Native American languages. All grantees are
required to contribute a 50 percent nonstate
match to grant funds. The match may be in
cash or an in-kind contribution.
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 Subd. 16. new text end new text begin United Family Medicine Residency Program new text end

new text begin 371,000 new text end

new text begin 390,000 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 $410,000 in fiscal year 2010
and $430,000 in fiscal year 2011.
new text end

new text begin Subd. 17. new text end new text begin Agency Administration new text end

new text begin 2,715,000 new text end

new text begin 2,781,000 new text end

new text begin These appropriations, and any statutory
appropriations from which state employee
compensation is paid from any fund, include
an amount sufficient to fund compensation
increases of at least 3.25 percent of the
2007 compensation base for the first year,
compounded at the rate of 3.25 percent for
the second year. This amount must be used
for that purpose and no other.
new text end

new text begin Subd. 18. 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. 19. 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 begin BOARD 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 651,942,000 new text end

new text begin $ new text end

new text begin 688,498,000 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 651,942,000 new text end

new text begin 688,498,000 new text end

new text begin $120,000 in each year is 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 amounts
for inflation; funding for technology
infrastructure improvements to deliver
more online programs and services, protect
sensitive data and enhance computer network
security, increase online learning, improve
student services, and improve management
of business processes; 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. Any amounts
allocated to initiatives to recruit and retain
students traditionally underrepresented
in higher education must be used to fund
activities determined by the Board of
Trustees to be best practices for the stated
purpose.
new text end

new text begin Amounts for other "Strategic Advancements"
initiatives must be the result of internal
reallocation by the Board of Trustees.
new text end

new text begin $3,923,000 in fiscal year 2008 and
$4,079,000 in fiscal year 2009 are for
elimination of nonresident undergraduate
tuition at community and technical colleges
under Minnesota Statutes, section 136F.70,
subdivision 1a.
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 in efforts to
recruit or retain quality faculty.
new text end

new text begin $200,000 of this appropriation in fiscal year
2008 must be provided to one campus in
the system, that has a full-time equivalent
enrollment of at least 1,500 students, for
the start-up costs of a pilot textbook rental
program. The rental program must be
operated to become self-sustaining. The
campus is authorized to adopt policies and
procedures to implement the program. The
campus shall, by January 31, 2010, report to
the Board of Trustees, the Minnesota Office
of Higher Education, and the senate and
house committees with primary jurisdiction
over higher education policy and finance on
progress towards implementing the program.
The report shall evaluate the program
including, but not limited to, the following
information:
new text end

new text begin (1) policies and procedures established to implement the program;
new text end

new text begin (2) cost-savings achieved for students renting textbooks;
new text end

new text begin (3) student satisfaction with and participation in the program;
new text end

new text begin (4) faculty satisfaction with the program; and
new text end

new text begin (5) administrative costs associated with implementing the program.
new text end

Sec. 5. new text begin BOARD 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 677,188,000 new text end

new text begin $ new text end

new text begin 704,864,000 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 675,031,000 new text end	new text begin 702,707,000 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 610,668,000 new text end

new text begin 638,344,000 new text end

new text begin This appropriation includes amounts to
advance the University of Minnesota's efforts
to sustain quality and competitiveness,
including funds to support a general
compensation increase for University
of Minnesota employees; funding for the
"Advancing Education" initiatives to improve
undergraduate writing, expand academic
advising, offer undergraduate research
opportunities, increase financial support for
graduate students, and invest in libraries;
and funding for investments in technology
and infrastructure to enhance research
capabilities, security, basic classroom
technology, and student services.
new text end

new text begin This appropriation also includes
amounts to support the University of
Minnesota's "Creating Minnesota's Future"
initiatives, including funds for competitive
compensation to attract and retain quality
faculty and staff; funding for science and
engineering initiatives to address Minnesota's
challenging problems in energy, health,
the environment, and medicine through
innovative, cross-disciplinary research;
funding for initiatives in environment,
agricultural systems, and renewable energy
to address dependence on fossil-based
fuels, ensure food safety, and protect animal
and human health; and funding for health
workforce and clinical sciences initiatives to
address the continuing shortage of advanced
practice nurses and a critical shortage of
allied health professionals.
new text end

new text begin $10,000,000 in fiscal year 2010 and
$10,000,000 in fiscal year 2011 are included
in the funding base for the University of
Minnesota for the collaborative research
partnership between the University of
Minnesota and the Mayo Foundation for
research in biotechnology and medical
genomics. The annual report in Laws 2005,
First Special Session chapter 1, article 3,
section 2, must continue to be submitted.
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 51,125,000 new text end

new text begin 51,125,000 new text end

new text begin For the Agricultural Experiment Station,
Minnesota Extension Service. This
appropriation includes funding to promote
alternative livestock research and outreach
and to promote sustainable and organic
agriculture research and education.
new text end

new text begin (b) Health Sciences new text end

new text begin 5,275,000 new text end

new text begin 5,275,000 new text end

new text begin Of this appropriation, $346,000 in 2008
and $346,000 in 2009 are 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) Institute of Technology 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 6,576,000 new text end

new text begin 6,576,000 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 an additional
$150,000 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

Sec. 6. new text begin MAYO MEDICAL FOUNDATION 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 1,098,000 new text end

new text begin $ new text end

new text begin 1,152,000 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 540,000 new text end

new text begin 567,000 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 $595,000 in
fiscal year 2010 and $625,000 in fiscal year
2011.
new text end

new text begin It is intended that during the biennium the
Mayo Foundation 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 558,000 new text end

new text begin 585,000 new text end

new text begin The state of Minnesota must pay a capitation
for up to 27 residents each year. The funding
base for this program is $615,000 in fiscal
year 2010 and $645,000 in fiscal year 2011.
new text end

Sec. 7. new text begin STATE GRANT PROGRAM STUDY.
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.
Whenever possible, the analysis should include the distributional effects, by income
quintile, of state grant program parameters on students and families. 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 applied 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 report must include cost estimates and information on how
recommended changes affect students at various income levels and at different higher
education institutions in Minnesota.
new text end

new text begin The Minnesota Office of Higher Education also shall assess the feasibility of
expanding the eligibility for state grants to include graduate students pursuing degree
programs deemed to be important to the workforce needs of the state. The Minnesota
Office of Higher Education must report their findings and make recommendations to the
committees in the house and senate with primary jurisdiction over higher education policy
and finance by January 31, 2008, on options to enhance the targeting of financial aid
to state grant recipients.
new text end

Sec. 8. new text begin POSTSECONDARY 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. 9. new text begin LOAN REPAYMENT PROGRAM REPORT.
new text end

new text begin The Minnesota Office of Higher Education must examine, and make
recommendations regarding, the feasibility of implementing loan repayment programs
for professions deemed to be of economic or social importance to the state. The report
must consider the availability of existing public and private loan repayment programs and
the need and ability of the state to promote economic growth or stability in particular
professions with additional resources. The report must be submitted to the house and
senate committees with primary jurisdiction over higher education policy and finance by
January 31, 2008.
new text end

Sec. 10. new text begin INDIAN SCHOLARSHIPS.
new text end

new text begin The Minnesota Office of Higher Education shall study and make recommendations
to the legislature regarding the feasibility of transferring the American Indian Scholarship
Program under Minnesota Statutes, section 124D.84, from the Department of Education to
the Office of Higher Education. The report must be submitted to the house and senate
committees with primary jurisdiction over higher education finance and policy by January
31, 2008.
new text end

Sec. 11. new text begin NONRESIDENT UNDERGRADUATE TUITION PLANS.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities must
prepare to eliminate undergraduate tuition rates, except undergraduate tuition rates for a
resident of a state that has entered into a reciprocity agreement under Minnesota Statutes,
section 136A.08, beginning at community and technical colleges, that are different
for nonresident students than for resident students by the beginning of the 2009-2010
academic term. The board must, by January 15, 2008, submit the plan to the chairs of the
legislative committees with jurisdiction over higher education finance.
new text end

Sec. 12. new text begin ACHIEVE MERIT SCHOLARSHIP STUDY.
new text end

new text begin The Higher Education Advisory Council (HEAC) shall convene a working group
to study and make recommendations regarding (a) the role of merit and need-based
scholarships and other mechanisms in increasing the participation in rigorous high school
courses of students traditionally underrepresented in higher education; and (b) mechanisms
to facilitate the subsequent access to, persistence in, and completion of postsecondary
degrees among students in this group. HEAC and its working group may collaborate with
the P-16 Education Partnership in developing its recommendations. The Minnesota Office
of Higher Education shall provide staff for the working group. In completing the study
and developing recommendations, the following issues shall be addressed:
new text end

new text begin (1) the parameters used to identify a course as being rigorous;
new text end

new text begin (2) the curricular prerequisites of courses identified to be rigorous for the purposes
of the ACHIEVE program;
new text end

new text begin (3) the availability of rigorous courses to high school students in school districts
around the state;
new text end

new text begin (4) the capacity of high schools to provide rigorous courses to students;
new text end

new text begin (5) the additional programmatic and financial resources required to increase the
participation of students traditionally underrepresented in higher education in rigorous
courses while in high school;
new text end

new text begin (6) the additional programmatic and financial resources required to ensure students
traditionally underrepresented in higher education complete a postsecondary degree; and
new text end

new text begin (7) other issues deemed relevant to the study.
new text end

new text begin The Higher Education Advisory Council shall, by January 15, 2008, make
recommendations to the senate and house committees with primary jurisdiction over
higher education policy and finance regarding their findings and the role of students,
parents, school districts, postsecondary institutions, and college access programs in
addressing the needs of students in this group.
new text end

Sec. 13. new text begin TASK FORCE CONVENED.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall, to the
extent it considers necessary, convene a task force to study and explore rental programs,
lease programs, or other programs available for course material. The task force shall
consist of but not be limited to students, faculty, administrators, bookstore operators and
managers, and staff members from the office of the chancellor. The Board of Trustees
shall approve and release a public report on any findings and recommendations of the task
force to the chairs of the committees of the legislature with primary jurisdiction over
higher education policy and finance prior to February 14, 2008.
new text end

Sec. 14. new text begin EDUCATIONAL STRATEGIES.
new text end

new text begin During the biennium ending June 30, 2008, the Minnesota Office of Higher
Education shall work with postsecondary institutions to develop educational materials
based upon the findings of the Minnesota Textbook Advisory Task Force recommendations
and other relevant information; convene and sponsor meetings and workshops; and
provide educational materials for faculty, students, administrators, institutions, bookstores,
and publishers in order to educate all interested parties on strategies for reducing the costs
of course materials for students attending postsecondary institutions. For the purpose of
this section, "postsecondary institution" means all institutions located in the state eligible
to participate in the state grant program under Minnesota Statutes, section 136A.121.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

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 begin sections deleted text end new text begin section new text end 136A.05 deleted text begin and 136A.08, subdivision 8 deleted 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 135A.01, is amended to read:

135A.01 FUNDING POLICY.

It is the policy of the legislature to provide stable funding deleted text begin , including recognition of
the effects of inflation, deleted text end for deleted text begin instructional services at deleted text end public postsecondary institutions and
that the state and students share the cost of deleted text begin those services deleted text end new text begin public postsecondary education new text end .
The legislature intends to provide at least 67 percent of the deleted text begin instructional services costs
for each postsecondary system deleted text end new 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. 3.

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. 4.

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

Subdivision 1.

Determination of appropriation.

The deleted text begin direct appropriation to each
board for instructional services shall equal 67 percent of the estimated total cost of
instruction deleted text end new text begin appropriations new text end for the University of Minnesota deleted 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 end new 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. 5.

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

Subd. 7.

Reports.

new text begin (a) new text end Instructional new text begin and noninstructional new text end expenditure new text begin data new text end and
enrollment data deleted text begin for each instructional category shall be submitted in the biennial budget
document deleted text end new 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

Sec. 6.

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 education new text begin under section 135A.011 new text end . deleted text begin It 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. 7.

new text begin [135A.043] RESIDENT TUITION.
new text end

new text begin (a) A student shall qualify for a resident tuition rate or its equivalent at state
universities and colleges, including the University of Minnesota, if the student meets
all of the following requirements:
new text end

new text begin (1) high school attendance within the state for three or more years;
new text end

new text begin (2) graduation from a state high school or attainment within the state of the
equivalent of high school graduation; and
new text end

new text begin (3) registration as an entering student at, or current enrollment in, a public institution
of higher education.
new text end

new text begin (b) This section is in addition to any other statute, rule, or higher education
institution regulation or policy providing eligibility for a resident tuition rate or its
equivalent to a student.
new text end

new text begin (c) To qualify for resident tuition under this section an individual who is not a citizen
or permanent resident of the United States must provide the college or university with
an affidavit that the individual will file an application to become a permanent resident at
the earliest opportunity the individual is eligible to do so.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to tuition for school terms commencing on or after that date.
new text end

Sec. 8.

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. 9.

Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section, the following terms have the
meanings given them.

(a) "Administrator" means the administrator of the institution or other person with
general control and supervision of the institution.

(b) "Public or private postsecondary educational institution" or "institution" means
any of the following institutions having an enrollment of more than 100 persons during
any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
(2) the state universities; (3) the state community colleges; (4) public technical colleges;
(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
and (7) schools subject to either chapter 141, sections new text begin 136A.615 new text end to 136A.71, or
schools exempt under section 136A.657, and which offer educational programs within the
state for an academic year greater than six consecutive months. An institution's report to
the Minnesota Office of Higher Education or the Minnesota Department of Education may
be considered when determining enrollment.

(c) "Student" means a person born after 1956 who did not graduate from a Minnesota
high school in 1997 or later, and who is (1) registering for more than one class during
a full academic term, such as a quarter or a semester or (2) housed on campus and is
registering for one or more classes. Student does not include persons enrolled in extension
classes only or correspondence classes only.

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 a 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 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.

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 begin the course deleted 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. 12.

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 begin or professional
continuing education deleted text end program is not eligible for benefits under subdivision 1.

Sec. 13.

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; office. new text end

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

Sec. 14.

Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:

Subd. 2.

Responsibilities.

The Minnesota Office of Higher Education is responsible
for:

(1) necessary state level administration of financial aid new text begin and Minnesota GI Bill
new text end programs, including accounting, auditing, and disbursing state and federal financial aid
funds, and reporting on financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate
and career schools, under sections new text begin 136A.615 new text end to 136A.71 and chapter 141;

(3) administering the Learning Network of Minnesota;

(4) negotiating and administering reciprocity agreements;

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

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

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

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

Sec. 15.

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 expire on June 30, deleted text begin 2007 deleted text end new text begin 2009 new text end .

Sec. 16.

Minnesota Statutes 2006, section 136A.0411, is amended to read:

136A.0411 COLLECTING FEES.

The office may charge fees for seminars, conferences, workshops, services, and
materials. The office may collect fees for registration and licensure of private institutions
under sections new text begin 136A.615 new text end to 136A.71 and chapter 141. The money is annually
appropriated to the office.

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 begin and
deleted text end

(3) interstate payments and obligations for each state participating in the tuition
reciprocity program in the prior year deleted text begin . deleted text end new 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 begin either deleted text end (1)
is operated by this state new text begin or the Board of Regents of the University of Minnesota new text end , or (2) is
operated deleted text begin publicly deleted text end deleted text begin or deleted text end privately and, as determined by the office, new text begin meets all of the following:
new text end new text begin (i) new text end maintains academic standards substantially equivalent to those of comparable
institutions operated in this state new 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 begin family deleted text end new text begin family's new 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 end the parental contribution. For independent students with dependents other
than a spouse, the assigned family responsibility is new text begin 85 percent of new text end the student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin 72 deleted text end new text begin 67 new text end percent of the student contribution. deleted text begin The 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 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. deleted text begin This subdivision expires June 30, 2007.
deleted text end

Sec. 21.

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. 22.

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 eligibility new text begin and will be considered to be
in continuing enrollment status upon return new text end .

Sec. 23.

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 $2,300 deleted text end new text begin $2,600 new text end for 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. 24.

new text begin [136A.127] ACADEMIC COMPETITIVENESS HIGHLIGHTING
INDIVIDUAL EXCELLENCE AND VALUING EDUCATION SCHOLARSHIP
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The academic competitiveness highlighting
individual excellence and valuing education (ACHIEVE) scholarship program is
established to reward Minnesota students for taking rigorous courses in high school.
new text end

new text begin Subd. 2. new text end

new text begin Definition; qualifying course. new text end

new text begin For the purposes of this section, a
"qualifying course" means a course that is equivalent to at least one course credit in high
school, as defined in section 120B.024, and that is a rigorous course as determined by
the local school district. An eligible course must not include a course that provides for
postsecondary education credit at course completion.
new text end

new text begin Subd. 3. new text end

new text begin Documentation of qualifying courses. new text end

new text begin The student shall request a
transcript from the high school. The high school shall provide a transcript to the Office
of Higher Education documenting the qualifying courses the student took. High schools
shall certify on the transcript which courses on the transcript are qualifying courses and
provide a total number of qualifying courses for each student.
new text end

new text begin Subd. 4. new text end

new text begin Review panel. new text end

new text begin The director of the office shall appoint a review panel to
monitor the implementation of ACHIEVE scholarships. The review panel may assist the
director in examining appeals of whether high school courses qualify for the scholarships.
The review panel shall include representatives of public and private high schools and
postsecondary institutions.
new text end

new text begin Subd. 5. new text end

new text begin Student eligibility. new text end

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

new text begin (1) take qualifying courses or earn credits equivalent to courses in grades 9 through
12 in a Minnesota high school, or be home-schooled pursuant to section 120A.22, and
graduate from high school;
new text end

new text begin (2) have a family adjusted gross income in the last complete calendar year prior to
the academic year of postsecondary attendance of less than $50,000;
new text end

new text begin (3) be a United States citizen or eligible noncitizen as defined in section 484 of the
Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and
Code of Federal Regulations, title 34, section 668.33; and
new text end

new text begin (4) be a Minnesota resident as defined in section 136A.101, subdivision 8.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin ACHIEVE scholarships shall be administered by the
Minnesota Office of Higher Education.
new text end

new text begin Subd. 7. new text end

new text begin Documentation of qualifying family income. new text end

new text begin The parents of the students
must document a qualifying family income by declaration on the application stating that
they meet the income requirement. The Office of Higher Education or the postsecondary
institution may request copies of federal individual income tax returns as documentation.
new text end

new text begin Subd. 8. new text end

new text begin Scholarships awards. new text end

new text begin Minnesota ACHIEVE scholarships shall consist of
$314 per qualifying course taken while the student attended a Minnesota high school. The
scholarships may be used to pay for qualifying expenses at eligible institutions.
new text end

new text begin Subd. 9. new text end

new text begin Qualifying expenses. new text end

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

new text begin Subd. 10. new text end

new text begin Eligible institutions. new text end

new text begin Eligible institutions are Minnesota State Colleges
and Universities institutions, University of Minnesota campuses, Minnesota not-for-profit
institutions, and Minnesota degree-granting for-profit institutions. Private institutions
must either be accredited, registered, or licensed with the Minnesota Office of Higher
Education and participating in the Minnesota state grant program.
new text end

new text begin Subd. 11. new text end

new text begin Availability of scholarship funds. new text end

new text begin Each scholarship is available for
up to four academic years immediately following high school graduation; after that
date, the scholarship is no longer available to the student. The office must certify to the
commissioner of finance by October 1 of each year the amounts to be canceled from
scholarship eligibility that has expired.
new text end

new text begin Subd. 12. new text end

new text begin Disbursement of scholarships. new text end

new text begin The office shall provide payment to the
postsecondary institution on behalf of the student.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2008.
new text end

Sec. 25.

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

Subdivision 1.

Scope.

For purposes of sections 136A.15 to ,
the terms defined in this section have the meanings deleted text begin ascribed to deleted text end new text begin given new text end them.

Sec. 26.

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 begin either deleted text end (1) is operated or regulated by this state deleted text begin , deleted text end or new 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 state new 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. 27.

Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:

Subdivision 1.

Designation.

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

Sec. 28.

Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:

Subd. 2.

Rules.

The office shall adopt policies and prescribe appropriate rules to
carry out the purposes of sections 136A.15 to . The policies and
rules except as they relate to loans under section 136A.1701 must be compatible with
the provisions of the National Vocational Student Loan Insurance Act of 1965 and the
provisions of title IV of the Higher Education Act of 1965, and any amendments thereof.

Sec. 29.

Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:

Subd. 5.

Agencies.

The office may contract with guarantee agencies, insurance
agencies, collection agencies, or any other person, to carry out the purposes of sections
136A.15 to .

Sec. 30.

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 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 begin predecessor, the Minnesota Higher Education
Coordinating Board deleted text end new text begin predecessors new text end .

Sec. 31.

Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:

Subd. 9.

Staff.

The office may employ the professional and clerical staff the
director deems necessary for the proper administration of the loan programs established
and defined by sections 136A.15 to .

Sec. 32.

Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:

Subd. 10.

Director.

Subject to its directives and review, the office may delegate to
the director the responsibility for issuance of public information concerning provisions of
sections 136A.15 to , for design of loan application forms, and for
prescribing procedures for submission of applications for loans.

Sec. 33.

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

Sec. 34.

Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

A student is eligible to apply for a loan under sections
136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1701 new text end if the office finds that the student is an eligible student
as defined in those sections and is eligible for a loan under federal laws and regulations
governing the federal guaranteed student loan programs.

Sec. 35.

Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to
read:

Subdivision 1.

Establishment of program.

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

Sec. 36.

Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to
read:

Subd. 2.

Purpose of program.

The purpose of the loan programs under this section
is to provide financial assistance for the postsecondary education of students who are
eligible students whether or not such students qualify for a loan or loans under other
provisions of sections 136A.15 to .

Loans granted to students may be used solely for educational purposes.

Sec. 37.

Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to
read:

Subd. 5.

Maximum loans for students.

Loans made under this section or sections
136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1701 new text end to an individual eligible student for vocational study
may be made for a maximum of three academic years or their equivalent and loans made
to any other individual eligible student may be made for a maximum of eight academic
years or their equivalent.

Sec. 38.

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. 39.

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 $800,000,000 deleted text end new text begin $950,000,000 new text end and 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. 40.

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 begin and retention new text end by providing outreach
services to historically underserved students in grades six through 12 new 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. 41.

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
for grades 6 through 12.
new text end

Sec. 42.

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 begin precollege deleted text end new text begin program new text end services.

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

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

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

(3) a description of how the services provided will foster postsecondary attendance new 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. 43.

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 begin and undergraduate student
retention program new text end activities for dissemination to individuals throughout the state interested
in adopting or replicating successful program practices; and

(2) data on the success of the funded projects in increasing the high school
graduation deleted text begin and deleted text end new text begin , new text end college participation new text begin , and college graduation new 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 services new text begin and
undergraduate retention programs new text end .

Sec. 44.

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

Subdivision 1.

Membership.

The board consists of deleted text begin 15 deleted text end new text begin 16 new text end members new text begin , including 15
members new text end appointed by the governor with the advice and consent of the senate new text begin , and the
commissioner of employment and economic development as an ex officio, nonvoting
member new text end . At least one member of the board must be a resident of each congressional
district. new text begin In 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, and ethnic composition. new text end Three 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.
The remaining members must be appointed to represent the state at large.

Sec. 45.

Minnesota Statutes 2006, section 136F.02, subdivision 2, is amended to read:

Subd. 2.

Term; compensation; removal; vacancies.

new text begin With respect to appointed
members, new text end the compensation, removal deleted text begin of members deleted text end , and filling of vacancies on the board
are as provided in section 15.0575. Members are appointed for a term of six years, except
that the term of each of the student members is two years. Terms end on June 30, except
that members may serve until their successors are appointed.

Sec. 46.

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

Subd. 3.

Duties.

new text begin (a) new text end The 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) The selection criteria developed under paragraph (a), clause (1), must include a
criterion that trustees represent diversity in geography; gender; race; occupation, including
business and labor; and experience.
new text end

new text begin (c) The selection criterion must include an 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. Individual
characteristics relate to qualities such as gender, race, and geographic location of residence.
new text end

Sec. 47.

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 begin By 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. 48.

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

136F.58 BOOKSTORES new text begin ; COURSE MATERIAL ACQUISITION new 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. 49.

Minnesota Statutes 2006, section 136F.70, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Nonresident undergraduate tuition. new text end

new text begin The board may not set an
undergraduate tuition rate at community and technical colleges that is different for
nonresident students than for resident students. This subdivision does not apply to
undergraduate tuition rates for a resident of a state that has entered into a reciprocity
agreement under section 136A.08.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 50.

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 begin and deposited in the state treasury deleted text end are appropriated to the board
and are not subject to budgetary control as exercised by the commissioner of finance.

Sec. 51.

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. 52.

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 $300 deleted text end new text begin $400 new text end ; and

(2) if the beneficiary's family income is more than $50,000 but not more than
$80,000, deleted text begin five deleted text end new text begin ten new 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 $300 deleted text end new text begin $400 new text end .

Sec. 53.

Minnesota Statutes 2006, section 137.0245, subdivision 4, is amended to read:

Subd. 4.

Recommendations.

(a) The advisory council shall recommend at least
two and not more than four candidates. By January 15 of each odd-numbered year,
the advisory council shall submit its recommendations to the governor new text begin and to the joint
committee established in section 137.0246, subdivision 2 new text end .

(b) The advisory council must submit a report to the governor new text begin and to the joint
committee new text end on the needs criterion identified under subdivision 3, paragraph (c), at the
same time it submits its recommendations.

Sec. 54.

Minnesota Statutes 2006, section 137.0246, subdivision 2, is amended to read:

Subd. 2.

Joint committee.

(a) The joint legislative committee consists of deleted text begin 20
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 of deleted text end the higher education
budget divisions deleted text begin and the ranking minority member of those committees and divisions
must be appointed deleted text end new text begin in each house of the legislature new text end . A 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 governor's nominees
new text begin and all of the regent candidate advisory council's recommendations new text end for regent of the
University of Minnesota for possible presentation to a joint convention of the legislature.

deleted text begin (c) The joint committee may only recommend to the joint convention nominees
recommended by the governor. If the joint committee does not recommend a governor's
nominee, the governor must submit a different nominee for the same vacancy.
deleted text end

Sec. 55.

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 begin or state
new text end educational 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 begin or state new text end payments. The state
college or university may request without delay the amount of tuition above expected
federal new text begin and state new text end educational 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 begin or state
new text end educational assistance.

Sec. 56.

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

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of the state of Minnesota to provide
postsecondary educational assistance to Minnesota veterans who have provided honorable
service to this state and nation as members of the United States armed forces, whether
in peacetime or in war, and to the spouses and children of Minnesota veterans who have
become severely disabled or deceased during or as the direct result of military service.
new text end

new text begin Subd. 2. 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" for both undergraduate and graduate students has the
meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
new text end

new text begin (d) "Child" means a natural or adopted child of a person described in subdivision 5,
paragraph (a), clause (1), item (i) or (ii).
new text end

new text begin (e) "Director" means the director of the Minnesota Office of Higher Education.
new text end

new text begin (f) "Eligible institution" means a postsecondary institution located in this state.
new text end

new text begin (g) "Eligible student" means a person who:
new text end

new text begin (1) if the student is an undergraduate student, has applied for the federal Pell Grant
and the Minnesota State Grant;
new text end

new text begin (2) is maintaining satisfactory academic progress as defined by the institution for
students participating in federal Title IV programs;
new text end

new text begin (3) is enrolled in an education program leading to a certificate, diploma, or degree
at an eligible institution;
new text end

new text begin (4) has applied for educational assistance under the Minnesota GI Bill program prior
to the end of the academic term for which the assistance is being requested; and
new text end

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

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

new text begin (i) "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 and 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 (j) "Veteran" has the meaning given in section 197.447, and 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. 3. new text end

new text begin Program established. new text end

new text begin There is established a program to provide
postsecondary educational assistance to eligible Minnesota veterans and to the children
and spouses of deceased and severely disabled Minnesota veterans. This program may be
cited as the "Minnesota GI Bill program."
new text end

new text begin The director, in consultation with the commissioner and in cooperation with
eligible postsecondary educational institutions, shall expend a biennial appropriation
for the purpose of providing postsecondary educational assistance to eligible persons
in accordance with this program. 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. 4. new text end

new text begin Duties; responsibilities. new text end

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

new text begin (b) The director, in consultation with the commissioner, may delegate part or
all of the administrative procedures for the program to responsible representatives of
participating eligible institutions.
new text end

new text begin Subd. 5. 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 August 2, 1990;
new text end

new text begin (ii) a nonveteran who has served honorably for a total of 16 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 August 2, 1990;
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 August 2, 1990, 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 August 2, 1990, 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 is an eligible student.
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) As proof of honorable service and disability or death status for a veteran or
service member, the director, by policy and in consultation with 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
director considers necessary to determine an applicant's eligibility status.
new text end

new text begin (d) The director, in consultation with the commissioner, may deny eligibility or
terminate benefits under this section to any person who has not provided sufficient proof of
eligibility for the program. An applicant may appeal the director's eligibility determination
in writing to the director at any time. The director must rule on any application or appeal
within 30 days of receipt of all documentation that the director requires. Upon receiving
an application with insufficient documentation, the director must notify the applicant
within 30 days of receipt of the application that the application is being suspended pending
receipt by the director of sufficient documentation from the applicant. The decision of the
director regarding an appeal is final; however, an applicant whose appeal of an eligibility
determination has been rejected by the director may submit an additional appeal of that
determination in writing to the director 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 director 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 Subd. 6. new text end

new text begin Benefit amount. new text end

new text begin (a) On approval by the director of an applicant's
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
at that eligible public institution or, in the case of an eligible private institution, the cost
of attendance for a comparable program at the Twin Cities campus of the University of
Minnesota, the amount received in that semester or term by that person from:
new text end

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

new text begin (2) the state grant program; 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 education assistance for any eligible person who is a full-time
student must not exceed any of the following amounts:
new text end

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

new text begin (2) $3,000 per state fiscal year; and
new text end

new text begin (3) $10,000 total.
new text end

new text begin For a part-time student, the amount of education assistance must not exceed $500
per semester or term of enrollment. For the purpose of this paragraph, a part-time
undergraduate student is a student taking fewer than 12 credits for a semester or term
of enrollment and a part-time graduate student is a student considered part time by the
eligible institution the graduate student is attending.
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. 57. 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, 5, and 6;
135A.032; 135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; and
136A.1702, 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.

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

new text begin Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
Out-of-State Public Postsecondary Education Act."
new text end

Sec. 2.

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

Subd. 3.

School.

"School" means new text begin :
new text end

new text begin (1) new text end any individual, partnership, company, firm, society, trust, association,
corporation, or any combination thereof, which deleted text begin (a) deleted text end new text begin (i) new text end is, owns, or operates a private deleted text begin ,
nonprofit deleted text end postsecondary education institution; deleted text begin (b) deleted text end new text begin or (ii) new text end provides a postsecondary
instructional program or course leading to a degree whether or not for profit; deleted text begin (c) deleted text end deleted text begin is, owns,
or operates a private, postsecondary education institution which uses the term deleted text end deleted text begin "college",
"academy", "institute" or "university" in its name; deleted text end deleted text begin 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 completion deleted text begin . deleted text end new 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. 3.

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

136A.63 REGISTRATION.

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

Sec. 4.

Minnesota Statutes 2006, section 136A.65, subdivision 1, is amended to read:

Subdivision 1.

Prohibition.

No school subject to registration shall grant a degree
unless such degree new text begin and its underlying curriculum, new text end is approved 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.

Sec. 5.

Minnesota Statutes 2006, section 136A.65, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Accreditation; requirement. new text end

new text begin No school shall be registered or authorized
to offer any degree at any level unless such school is accredited by an agency recognized
by the United States Department of Education for purposes of eligibility to participate in
federal financial aid programs, Title IV.
new text end

Sec. 6.

Minnesota Statutes 2006, section 136A.653, is amended to read:

136A.653 EXEMPTIONS.

Subdivision 1.

Exemption.

A school that is subject to licensing by the office under
chapter 141, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71.
The determination of the office as to whether a particular school is subject to regulation
under chapter 141 is final for the purposes of this exemption.

Subd. 2.

Educational program; nonprofit organizations.

Educational programs
which are sponsored by a bona fide and nonprofit trade, labor, business, professional
or fraternal organization, which programs are conducted solely for that organization's
membership or for the members of the particular industries or professions served by that
organization, and which are not available to the public on a fee basis, are exempted from
the provisions of sections to 136A.71.

Subd. 3.

Educational program; business firms.

Educational programs which are
sponsored by a business firm for the training of its employees or the employees of other
business firms with which it has contracted to provide educational services at no cost to the
employees are exempted from the provisions of sections to 136A.71.

Subd. 4.

Voluntary submission.

Any school or program exempted from the
provisions of sections deleted text begin 136A.61 deleted text end new text begin 136A.615 new text end to 136A.71 by the provisions of this section
may voluntarily submit to the provisions of those sections.

Sec. 7.

Minnesota Statutes 2006, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Any school or any department or branch of a school (a)
which is substantially owned, operated or supported by a bona fide church or religious
organization; (b) 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 (c) 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, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71.

Sec. 8.

Minnesota Statutes 2006, section 136A.657, subdivision 2, is amended to read:

Subd. 2.

Limitation.

This exemption shall not extend to any school or to any
department or branch of a school new text begin , or program of the school, new text end which through advertisements
or solicitations represents to any students or prospective students that the school, its
aims, goals, missions or purposes or its programs are different from those described in
subdivision 1. This exemption shall not extend to any school which represents to any
student or prospective student that the major purpose of its programs is to prepare the
student for a vocation not closely related to that particular religious faith, or to 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 exempt from sections new text begin 136A.615 new text end to 136A.71, and rules adopted
pursuant thereto.

Sec. 9.

Minnesota Statutes 2006, section 136A.657, subdivision 3, is amended to read:

Subd. 3.

Scope.

Nothing in sections deleted text begin 136A.61 deleted text end new text begin 136A.615 new text end to 136A.71, or the rules
adopted pursuant thereto, shall be interpreted as permitting the office to determine the
truth or falsity of any particular set of religious beliefs.

Sec. 10.

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 degree clear.
new text end

Sec. 11.

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

136A.66 LIST.

The office shall maintain a list of deleted text begin schools deleted text end new text begin registered institutions new 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. 12.

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

136A.67 deleted text begin UNAUTHORIZED REPRESENTATIONS deleted text end new text begin DISCLOSURE
REQUIRED new text end .

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 end new text begin A new text end school which is duly registered with the office, or any of its officials or
employees, deleted text begin may represent deleted text end new text begin shall disclose in all advertising, application, and enrollment
materials new text end that the school is registered with the office deleted text begin . deleted text end new text begin by prominently displaying the
following statement:
new text end

new text begin "(Name of school) is registered as a private institution with the Minnesota Office of Higher
Education pursuant to Minnesota Statutes, sections 136A.615 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. 13.

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 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) 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 approved by the office for preserving
student records. The bond shall run to the state of Minnesota.
new text end

Sec. 14.

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 of a day per on-site 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. 15.

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.615 to
136A.71. Each day's failure to comply with a provision of sections 136A.615 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 into the special revenue fund and
may be used for the purposes in sections 136A.615 to 136A.71.
new text end

Sec. 16.

Minnesota Statutes 2006, section 136A.71, is amended to read:

136A.71 INJUNCTION.

Upon application of the attorney general the district courts shall have jurisdiction to
enjoin any violations of sections new text begin 136A.615 new text end to 136A.71.

Sec. 17.

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

Subd. 1a.

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

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

Sec. 18.

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 begin administers, new text end solicits new text begin for new text end , or conducts any program deleted text begin for profit deleted text end at deleted text begin any deleted text end
new text begin less than an associate degree new text end level deleted text begin other than baccalaureate or graduate programs, and is
not specifically exempted by sections 141.21 to deleted text end new text begin , is not registered as a private institution
under sections 136A.615 to 136A.71, and is not specifically exempted by section new text end 141.35 new text begin
or 141.37 new text end .

Sec. 19.

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 end or conduct any program in Minnesota without first obtaining a license from
the office.

Sec. 20.

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 begin may deleted text end new text begin shall new text end result in denial, suspension, or revocation of the school's license.

Sec. 21.

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 begin recommended, new text end or 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. 22.

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 begin a 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 end a procedure for investigating and resolving student complaints; and

deleted text begin (14) deleted text end new 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. 23.

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

Subd. 10.

Placement records.

(a) Before a license is deleted text begin issued deleted text end new text begin reissued new 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 begin upon request, new text end prior 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. 24.

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 begin approved by the office, new text end for preserving
student records deleted text begin or a trust must be arranged if the school ceases to exist deleted text end . new text begin The bond shall run
to the state of Minnesota.
new text end

Sec. 25.

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 day new text begin , not to exceed $3,000, new text end shall be assessed.

Sec. 26.

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. 27.

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 begin classes deleted text end new text begin class new text end for a period of 21 consecutive days new text begin without contacting the school to
indicate an intent to continue in school or otherwise making arrangements concerning the
absences 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. 28.

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 program deleted text begin . deleted text end new text begin , except that new 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. 29.

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

Subdivision 1.

deleted text begin Not to advertise state approval deleted text end new text begin Disclosure required new text end .

deleted text begin Schools,
agents of schools, and solicitors may not advertise or represent in writing or orally that
such school is approved or accredited by the state of Minnesota, except that any deleted text end new text begin A new text end school,
deleted text begin agent, or solicitor may advertise deleted text end new text begin which is duly licensed by the state shall disclose in all
its advertising, application, and enrollment materials new text end that the school deleted text begin and solicitor have
been deleted text end new text begin is new text end duly licensed by the state deleted text begin using deleted text end new text begin by prominently displaying new text end the following deleted text begin language deleted text end new text begin
statement new text end :

"(Name of school) is licensed as a private career school with the Minnesota Office of
Higher Education new text begin pursuant to Minnesota Statutes, chapter 141 new text end . Licensure is not an
endorsement of the institution. Credits earned at the institution may not transfer to all
other institutions. deleted text begin The educational programs may not meet the needs of every student
or employer. deleted text end "

Sec. 30.

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 a provision
of 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 into the special revenue
fund and may be used for the purposes of this chapter.
new text end

Sec. 31.

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

141.35 EXEMPTIONS.

Sections 141.21 to new text begin 141.32 new text end shall not apply to the following:

(1) public postsecondary institutions;

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

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

deleted text begin (11) deleted text end new text begin (10) new 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 end new 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 end new 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 end new 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 end new 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 end new text begin (15) new text end classes, courses, or programs providing instruction in personal
development, modeling, or acting;

deleted text begin (17) deleted text end new 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 end new 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. 32.

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 (1)
which is substantially owned, operated, or supported by a bona fide church or religious
organization; (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 (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, 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 This exemption shall not extend to any school or to
any department or branch of a school, or program of such school which, through
advertisements or solicitations, represents to any students or prospective students that
the school, its aims, goals, missions or purposes, or its programs are different from
those described in subdivision 1. This exemption shall not extend to any school which
represents to any student or prospective student that the major purpose of its programs
is to prepare the student for a vocation not closely related to that particular religious
faith, or to 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 rules
adopted 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 descriptive language to make the religious nature of the award clear.
new text end

Sec. 33. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 136A.61, new text end new text begin is repealed.
new text end