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SF 1989

1st Unofficial Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to higher education; appropriating money; establishing the Minnesota
1.3GI Bill program; amending certain Minnesota Office of Higher Education
1.4provisions; establishing new grant and loan repayment programs; amending
1.5higher education programs; amending certain grant programs; amending certain
1.6higher education provisions; eliminating obsolete references; making technical
1.7changes; authorizing control of certain decreasing students' share of attendance;
1.8establishing a college readiness assessment; increasing revenue bond limits;
1.9authorizing control of certain deposits; authorizing lease agreements; authorizing
1.10interest rate swap; providing for the Textbook Disclosure, Pricing and Access
1.11Act; amending certain private postsecondary institution provisions;amending
1.12Minnesota Statutes 2006, sections 13.322, subdivision 3; 16B.70, by adding
1.13a subdivision; 41D.01, subdivision 1; 120B.023, subdivision 2; 120B.024;
1.14135A.031, subdivision 7; 135A.053, subdivision 2; 135A.14, subdivision 1;
1.15135A.51, subdivision 2; 135A.52, subdivisions 1, 2; 136A.01, subdivision 2;
1.16136A.031, subdivision 5; 136A.0411; 136A.08, subdivision 7; 136A.101,
1.17subdivision 4; 136A.121, subdivision 5; 136A.125, subdivision 2; 136A.15,
1.18subdivisions 1, 6; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.61;
1.19136A.62, subdivision 3; 136A.63; 136A.64; 136A.65; 136A.653; 136A.657;
1.20136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3,
1.216; 136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by
1.22adding a subdivision; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25,
1.23subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2;
1.24141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; proposing
1.25coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 141; 197;
1.26repealing Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5,
1.276; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 137.0245; 137.0246.
1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.29ARTICLE 1
1.30HIGHER EDUCATION APPROPRIATIONS

1.31
Section 1. SUMMARY OF APPROPRIATIONS.
1.32    The amounts shown in this section summarize direct appropriations, by fund, made
1.33in this article.
2.1
2008
2009
Total
2.2
General
$
1,561,448,000
$
1,644,178,000
$
3,205,626,000
2.3
Health Care Access
2,157,000
2,157,000
4,314,000
2.4
Total
$
1,563,605,000
$
1,646,335,000
$
3,209,940,000

2.5
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.6    The sums shown in the columns marked "Appropriations" are appropriated to the
2.7agencies and for the purposes specified in this article. The appropriations are from the
2.8general fund, or another named fund, and are available for the fiscal years indicated
2.9for each purpose. The figures "2008" and "2009" used in this article mean that the
2.10appropriations listed under them are available for the fiscal year ending June 30, 2008, or
2.11June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
2.12year 2009. "The biennium" is fiscal years 2008 and 2009.
2.13
APPROPRIATIONS
2.14
Available for the Year
2.15
Ending June 30
2.16
2008
2009

2.17
2.18
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
2.19
Subdivision 1.Total Appropriation
$
197,933,000
$
198,654,000
2.20The amounts that may be spent for each
2.21purpose are specified in the following
2.22subdivisions.
2.23
Subd. 2.Minnesota GI Bill
10,000,000
10,000,000
2.24For grants to eligible veterans or the eligible
2.25spouses and children of veterans as provided
2.26under Minnesota Statutes, section 197.791.
2.27Of this appropriation, $152,000 the first
2.28year and $104,000 the second year are for
2.29the administrative costs of operating this
2.30program. For the 2010-2011 biennium,
2.31the base for this program's administrative
2.32costs must be included within the agency
2.33administration program activity.
2.34
Subd. 3.State Grants
150,154,000
151,124,000
3.1If the appropriation in this subdivision for
3.2either year is insufficient, the appropriation
3.3for the other year is available for it.
3.4For the biennium, the tuition maximum for
3.5students in four-year programs is $9,957 in
3.6each year for students in four-year programs,
3.7and for students in two-year programs, is
3.8$4,717 in the first year and $4,859 in the
3.9second year.
3.10This appropriation sets the living and
3.11miscellaneous expense allowance at $6,241
3.12each year.
3.13
Subd. 4.Safety Officers Survivors
100,000
100,000
3.14This appropriation is to provide educational
3.15benefits under Minnesota Statutes, section
3.16299A.45, to dependent children under age 23
3.17and to the spouses of public safety officers
3.18killed in the line of duty.
3.19If the appropriation in this subdivision for
3.20either year is insufficient, the appropriation
3.21for the other year is available for it.
3.22
Subd. 5.Interstate Tuition Reciprocity
2,000,000
2,000,000
3.23If the appropriation in this subdivision for
3.24either year is insufficient, the appropriation
3.25for the other year is available to meet
3.26reciprocity contract obligations.
3.27
Subd. 6.State Work Study
12,444,000
12,444,000
3.28
Subd. 7.Child Care Grants
4,934,000
4,934,000
3.29
Subd. 8.Minitex
5,881,000
5,881,000
3.30
Subd. 9.MnLINK Gateway
400,000
400,000
3.31
Subd. 10.Learning Network of Minnesota
4,800,000
4,800,000
3.32
Subd. 11.Minnesota College Savings Plan
1,020,000
1,020,000
4.1
Subd. 12.Midwest Higher Education Compact
90,000
90,000
4.2
Subd. 13.Other Small Programs
1,960,000
1,670,000
4.3This appropriation includes funding for
4.4postsecondary service learning, student and
4.5parent information, get ready, outreach, and
4.6intervention for college attendance programs.
4.7$265,000 each year is for grants to increase
4.8campus-community collaboration and service
4.9learning statewide, including operations of
4.10the Minnesota campus compact, grants to
4.11member institutions and grants for member
4.12institution initiatives. For every $1 in state
4.13funding, grant recipients must contribute $2
4.14in campus or community-based support.
4.15$100,000 each year is for a grant to the
4.16Loan Repayment Assistance Program
4.17of Minnesota, Inc. for loan repayment
4.18assistance awards.
4.19$500,000 each year is for the teacher
4.20education and compensation helps (TEACH)
4.21and the Minnesota early childhood teacher
4.22retention programs in Minnesota Statutes,
4.23section 136A.126. This is a onetime
4.24appropriation.
4.25$250,000 in the first year is for a grant to
4.26Augsburg College for the purpose of its
4.27Step UP program to provide educational
4.28opportunities to chemically dependent
4.29students and to work with other public
4.30and private colleges in Minnesota to help
4.31replicate this program. This is a onetime
4.32appropriation.
4.33$40,000 in the first year is for a grant to
4.34the Washington Center for Internships and
5.1Academic Seminars for a pilot program
5.2for scholarships for students enrolling in a
5.3Minnesota four-year college or university
5.4beginning in the fall semester of 2007. The
5.5grant is available only with a dollar-for-dollar
5.6match from nonstate sources.
5.7
5.8
5.9
Subd. 14.Access to College and Helping
Individuals Everywhere Value Education and
Rural Pilot Programs
1,000,000
1,000,000
5.10For Access to College and Helping
5.11Individuals Everywhere Value Education
5.12pilot projects that provide distance-learning
5.13opportunities through the Minnesota State
5.14Colleges and Universities for high school
5.15students living in remote and underserved
5.16areas where the school district lacks
5.17the resources to provide academically
5.18challenging educational opportunities,
5.19including Advanced Placement and
5.20International Baccalaureate programs.
5.21Students who successfully complete a course
5.22must receive college credit at no cost to the
5.23student or the participating school district.
5.24The office must report to the committees of
5.25the legislature with responsibility for higher
5.26education finance by January 15, 2009, on the
5.27program outcomes with recommendations on
5.28continuing and expanding the program.
5.29
5.30
Subd. 15.United Family Medicine Residency
Program
360,000
360,000
5.31For a grant to the united family medicine
5.32residency program. This appropriation
5.33must be used to support up to 18 resident
5.34physicians each year in family practice at
5.35united family medicine residency programs
5.36and must prepare doctors to practice family
6.1care medicine in underserved rural and
6.2urban areas of the state. The legislature
6.3intends this program to improve health
6.4care in underserved communities, provide
6.5affordable access to appropriate medical
6.6care, and manage the treatment of patients in
6.7a more cost-effective manner.
6.8
Subd. 16.Agency Administration
2,690,000
2,731,000
6.9Of this appropriation, $39,000 the first
6.10year and $80,000 the second year are for
6.11compensation-related costs associated with
6.12the delivery of the office's services and
6.13programs.
6.14
Subd. 17.Balances Forward
6.15A balance in the first year under this section
6.16does not cancel, but is available for the
6.17second year.
6.18
Subd. 18.Transfers
6.19The Minnesota Office of Higher Education
6.20may transfer unencumbered balances from
6.21the appropriations in subdivisions 2 to 15 to
6.22the state grant appropriation, the safety officer
6.23survivors appropriation, the interstate tuition
6.24reciprocity appropriation, the Minnesota
6.25college savings plan appropriation, the child
6.26care appropriation, and the state work study
6.27appropriation.
6.28
Subd. 19.Reporting
6.29(a) By November 1 and February 15, the
6.30Minnesota Office of Higher Education
6.31must provide updated state grant spending
6.32projections, taking into account the most
6.33current and projected enrollment and tuition
6.34and fee information, economic conditions,
7.1and other relevant factors. Before submitting
7.2state grant spending projections, the office
7.3must meet and consult with representatives of
7.4public and private postsecondary education,
7.5the Department of Finance, the governor's
7.6office, legislative staff, and financial aid
7.7administrators.
7.8(b) The Minnesota Office of Higher
7.9Education shall report to the higher education
7.10divisions of the house and senate finance
7.11committees on participation in postsecondary
7.12education by income, and persistence and
7.13graduation rates of state grant recipients
7.14compared to students who did not receive
7.15state grants. The office is authorized to match
7.16individual student data from the student
7.17record enrollment database with individual
7.18student data from the state grant database on
7.19data elements necessary to perform the study.

7.20
7.21
7.22
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
7.23
Subdivision 1.Total Appropriation
$
668,388,000
$
704,288,000
7.24The amounts that may be spent for each
7.25purpose are specified in the following
7.26subdivisions.
7.27
7.28
Subd. 2.Central Office and Shared Services
Unit
$
40,170,550
$
40,170,550
7.29For the office of the chancellor and the shared
7.30services division.
7.31
Subd. 3.Operations and Maintenance
$
628,217,450
$
664,118,000
7.32(a) This appropriation includes funding
7.33for the board's initiatives on recruiting and
7.34retaining underrepresented students, strategic
8.1educational advancements, STEM initiatives,
8.2and infrastructure and technology, and for
8.3the costs of inflation. This appropriation
8.4also includes funding to reduce the tuition
8.5rate increase to two percent from the
8.6board-approved plan of a four percent annual
8.7increase.
8.8(b) Appropriations for technology and
8.9infrastructure under this subdivision must
8.10not be used to increase permanent positions
8.11in the office of the chancellor or the shared
8.12services office. Any new positions funded
8.13from the technology and infrastructure
8.14appropriation must be at a campus.
8.15(c) $400,000 each year is for
8.16community-based energy development
8.17pilot projects at Mesabi Range Technical
8.18and Community College, the Minnesota
8.19West Community and Technical College,
8.20and Riverland Community College. Each
8.21campus must establish partnerships for
8.22community-based energy development pilot
8.23projects that involve students and faculty. An
8.24allocation for the pilot project is available
8.25to the participating institutions and the
8.26partnerships for the biennium ending June
8.2730, 2009.
8.28(d) $750,000 in the first year is for a modular
8.29clean-room research and training facility
8.30at St. Paul College. This is a onetime
8.31appropriation and is available until expended.
8.32(e) $300,000 the first year is for a grant to
8.33the Range Association of Municipalities
8.34and Schools for a study of student demand
8.35and employer needs for higher education in
9.1the Mesabi Range region of northeastern
9.2Minnesota including the cities of Grand
9.3Rapids through Eveleth to Ely. The
9.4association must coordinate and contract for
9.5a study in cooperation with the Board of
9.6Regents of the University of Minnesota and
9.7the Board of Trustees of the Minnesota State
9.8Colleges and Universities. The governing
9.9boards must advise on which of the identified
9.10needs can be met by University of Minnesota
9.11courses and which can be met by the
9.12Minnesota State Colleges and Universities,
9.13and which degree programs may be offered
9.14jointly. The final report must be submitted to
9.15the committees of the legislature responsible
9.16for higher education finance by January 15,
9.172008, with recommendations and plans for
9.18the region.
9.19(f) $120,000 in each year is for the Cook
9.20County Higher Education Board to provide
9.21educational programs and academic support
9.22services. The base appropriation for this
9.23program is $120,000 in each year of the
9.24biennium ending June 30, 2011.
9.25(g) $2,000,000 the first year and $1,000,000
9.26the second year are for a pilot project with
9.27the Northeast Minnesota Higher Education
9.28District and high schools in its area. Up to
9.29$1,200,000 of the first year appropriation
9.30must be used to purchase equipment that is
9.31necessary to reestablish a technical education
9.32curriculum in the area high schools to
9.33provide the students with the technical
9.34skills necessary for the workforce. Students
9.35from area high schools may also access
9.36the facilities and faculty of the Northeast
10.1Minnesota Higher Education District
10.2for state-of-the-art technical education
10.3opportunities, including MnSCU's 2+2
10.4Pathways initiative. $1,000,000 is added to
10.5the base for this project.
10.6(h) $50,000 in the first year is for St. Paul
10.7College to collaborate with the United Auto
10.8Workers Local 879 to purchase a Ford
10.9Ranger pickup truck to retrofit to run on a
10.10battery-powered motor. This vehicle must
10.11be retrofitted to serve as a prototype that
10.12could be mass-produced at the St. Paul Ford
10.13assembly plant.
10.14(i) $100,000 each year is for a grant to a
10.15Minnesota public postsecondary institution
10.16with a total student enrollment under 7,000
10.17students, that has an existing women's
10.18hockey team competing in Division I in the
10.19Western Collegiate Hockey Association.
10.20The institution may use the grant for
10.21equipment, facility improvements, travel and
10.22compensation for coaches, trainers, and other
10.23necessary personnel.
10.24(j) $450,000 each year is to establish a center
10.25for workforce and economic development
10.26at the Mesabi Range Community and
10.27Technical College and to enhance eFolio
10.28Minnesota. The board, in cooperation with
10.29the Iron Range Resources and Rehabilitation
10.30Board (IRRRB) and the Department of
10.31Employment and Economic Development,
10.32must establish the center to provide on-site
10.33and Internet-based support and technical
10.34assistance to users of the state's eFolio
10.35Minnesota system to promote workforce and
11.1economic development. The center must
11.2assist local economic development agencies
11.3and officials to enable them to access
11.4workforce information generated through the
11.5eFolio Minnesota system. The board must
11.6enhance the eFolio Minnesota system as
11.7necessary to serve these purposes. The center
11.8must report annually to the IRRRB and the
11.9Department of Employment and Economic
11.10Development on the outcomes of the center's
11.11activities.
11.12(k) $1,000,000 the first year is to identify
11.13and improve on practices for selecting and
11.14purchasing textbooks and course materials
11.15that are used by students. The board, in
11.16collaboration with the Minnesota State
11.17University Student Association (MSUSA)
11.18and the Minnesota State College Student
11.19Association (MSCSA) must develop
11.20and implement pilot projects with this
11.21appropriation to address the financial burden
11.22that textbook prices and requirements place
11.23on students. These projects may include
11.24textbook rental programs, cooperative
11.25purchasing efforts, training, and education
11.26and awareness programs for students and
11.27faculty on cost considerations and textbook
11.28options. The student associations must
11.29be fully involved in the development and
11.30implementation of any project using this
11.31appropriation. Each student association
11.32must vote to approve a project before it is
11.33implemented. MSUSA and MSCSA must
11.34report to the committees of the legislature
11.35responsible for higher education finance by
11.36February 15, 2009, on the success of the pilot
12.1projects. This money is available until June
12.230, 2009.
12.3
Subd. 4.Board Policies
12.4(a) The board must adopt a policy that allows
12.5students to add the cost of textbooks and
12.6required course materials purchased at a
12.7campus bookstore, owned by or operated
12.8under a contract with the campus, to the
12.9existing waivers or payment plans for tuition
12.10and fees.
12.11(b) The board must adopt a policy setting
12.12the maximum number of semester credits
12.13required for a baccalaureate degree at 120
12.14semester credits or the equivalent and the
12.15number of semester credits required for an
12.16associate degree at 60 semester credits or the
12.17equivalent.

12.18
12.19
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
12.20
Subdivision 1.Total Appropriation
$
696,082,000
$
742,143,000
12.21The amounts that may be spent for each
12.22purpose are specified in the following
12.23subdivisions.
12.24
Subd. 2.Operations and Maintenance
611,112,000
667,550,000
12.25(a) This appropriation includes amounts for
12.26the board:
12.27(1) to make investments in the university's
12.28technology and related infrastructure;
12.29(2) to award faculty and staff compensation
12.30increases differentially;
12.31(3) for the board's health workforce and
12.32clinical sciences initiative;
12.33(4) initiatives in science and engineering;
13.1(5) initiatives relating to the environment,
13.2agriculture, and renewable energy; and
13.3(6) for advancing education, including an
13.4Ojibwe Indian language program on the
13.5Duluth campus.
13.6(b) $2,250,000 each year is to establish
13.7banded tuition at the Morris, Crookston, and
13.8Duluth campuses to reduce tuition costs for
13.9students.
13.10(c) $7,000,000 for the biennium is for
13.11scholarships to mitigate the effects of rising
13.12tuition on Minnesota students and families.
13.13This appropriation must be matched with
13.14$2 of nonstate money for each $1 of state
13.15money.
13.16(d) $12,404,000 in the second year is to
13.17reduce the proposed tuition rate increase.
13.18Any of this amount that is not used by the
13.19board to reduce tuition cancels to the general
13.20fund.
13.21(e) $300,000 the first year is for the Center
13.22for Transportation Studies to complete a
13.23study to assess public policy options for
13.24reducing the volume of greenhouse gases
13.25emitted from the transportation sector in
13.26Minnesota. The Center for Transportation
13.27Studies must report its preliminary findings
13.28to the legislature by February 1, 2008, and
13.29must issue its full report by June 1, 2008.
13.30This is a onetime appropriation.
13.31(f) $250,000 each year is to establish an India
13.32Center to improve and promote relations with
13.33India and Southeast Asia. The center must
13.34partner with public and private organizations
13.35in Minnesota to:
14.1(1) foster an understanding of the history,
14.2culture, and values of India;
14.3(2) serve as a resource and catalyst to
14.4promote economic, governmental, and
14.5academic pursuits involving India; and
14.6(3) facilitate educational and business
14.7exchanges and partnerships, collaborative
14.8research, and teaching and training activities
14.9for Minnesota students and teachers.
14.10The Board of Regents may establish an
14.11advisory council to facilitate the mission
14.12and objectives of the India Center and must
14.13report on the progress of the India Center by
14.14February 15, 2008, to the governor and chairs
14.15of the legislative committees responsible for
14.16higher education finance. This is a onetime
14.17appropriation.
14.18(g) $750,000 in the first year is to assist in
14.19the formation of the neighborhood alliance
14.20and for projects identified in section 8. The
14.21alliance, the Board of Regents, and the city of
14.22Minneapolis may cooperate on the projects
14.23and may use a public services of other entities
14.24to complete all or a portion of a project.
14.25(h) $300,000 the first year is to establish a
14.26Dakota language teacher training immersion
14.27program on the Twin Cities campus to
14.28prepare teachers to teach in Dakota language
14.29immersion programs. This is a onetime
14.30appropriation.
14.31(i) $400,000 each year is for the Minnesota
14.32Institute for Sustainable Agriculture to
14.33provide funds for on-station and on-farm
14.34field scale research and outreach to develop
14.35and test the agronomic and economic
15.1requirements of diverse strands of prairie
15.2plants and other perennials for bioenergy
15.3systems including but not limited to
15.4multiple species selection and establishment,
15.5ecological management between planting
15.6and harvest, harvest technologies, financial
15.7and agronomic risk management, farmer
15.8goal setting and adoption of technologies,
15.9integration of wildlife habitat into
15.10management approaches, evaluation of
15.11carbon and other benefits, and robust polices
15.12needed to induce farmer conversion on
15.13marginal lands.
15.14
Subd. 3.Health Care Access Fund
2,157,000
2,157,000
15.15This appropriation is from the health care
15.16access fund and is for primary care education
15.17initiatives.
15.18
Subd. 4.Special Appropriation
65,813,000
65,436,000
15.19
(a) Agriculture and Extension Service
52,625,000
52,275,000
15.20(1) For the Agricultural Experiment
15.21Station, Minnesota Extension Service. This
15.22appropriation includes funding to promote
15.23alternative livestock research and outreach
15.24at the Minnesota Institute for Sustainable
15.25Agriculture, and to promote sustainable and
15.26organic agricultural research and education.
15.27(2) This appropriation includes funding
15.28for research efforts that demonstrate a
15.29renewed emphasis on the needs of the state's
15.30production agriculture community and a
15.31continued focus on renewable energy derived
15.32from Minnesota biomass resources including
15.33agronomic crops, plant and animal wastes,
15.34and native plants or trees, with priority for
16.1extending the Minnesota vegetable growing
16.2season; fertilizer and soil fertility research
16.3and development; treating and curing human
16.4diseases utilizing plant and livestock cells;
16.5using biofuel production coproducts as
16.6feed for livestock; and a rapid agricultural
16.7response fund for current or emerging
16.8animal, plant, and insect problems affecting
16.9production or food safety. In addition, the
16.10appropriation may be used to secure a facility
16.11and retain current faculty levels for poultry
16.12research currently conducted at UMore Park.
16.13(3) In the area of renewable energy, priority
16.14should be given to projects pertaining to:
16.15biofuel and other energy production from
16.16small grains; alternative bioenergy crops and
16.17cropping systems; and growing, harvesting,
16.18and transporting biomass plant material.
16.19(4) This appropriation includes funding for
16.20the college of food, agricultural, and natural
16.21resources sciences to establish and maintain
16.22a statewide organic research and education
16.23initiative to provide leadership for organic
16.24agronomic, horticultural, livestock, and food
16.25systems research, education, and outreach
16.26and for the purchase of state-of-the-art
16.27laboratory, planting, tilling, harvesting, and
16.28processing equipment necessary for this
16.29project.
16.30(5) By February 1, 2009, the Board
16.31of Regents must report to the legislative
16.32committees with responsibility for agriculture
16.33and higher education finance on the research
16.34and initiatives under this paragraph.
17.1(6) The base appropriation is $51,775,000
17.2each year of the biennium ending June 30,
17.32011.
17.4
(b) Health Sciences
5,275,000
5,275,000
17.5$346,000 each year is to support up to 12
17.6resident physicians each year in the St.
17.7Cloud Hospital family practice residency
17.8program. The program must prepare doctors
17.9to practice primary care medicine in the rural
17.10areas of the state. The legislature intends
17.11this program to improve health care in rural
17.12communities, provide affordable access to
17.13appropriate medical care, and manage the
17.14treatment of patients in a more cost-effective
17.15manner.
17.16The remainder of this appropriation is for
17.17the rural physicians associates program, the
17.18Veterinary Diagnostic Laboratory, health
17.19sciences research, dental care, and the
17.20Biomedical Engineering Center.
17.21
(c) Institute of Technology
1,387,000
1,387,000
17.22For the Geological Survey and the talented
17.23youth mathematics program.
17.24
(d) System Specials
6,526,000
6,526,000
17.25For general research, student loans matching
17.26money, industrial relations education,
17.27Natural Resources Research Institute, Center
17.28for Urban and Regional Affairs, and the Bell
17.29Museum of Natural History. $100,000 is
17.30added to the base appropriation for industrial
17.31relations education.
17.32
17.33
Subd. 5.University of Minnesota and Mayo
Foundation Partnership
17,000,000
7,000,000
18.1For the direct and indirect expenses of the
18.2collaborative research partnership between
18.3the University of Minnesota and the Mayo
18.4Foundation for research in biotechnology
18.5and medical genomics. $7,000,000 is added
18.6to the base. This appropriation is available
18.7until expended. An annual report on the
18.8expenditure of these funds must be submitted
18.9to the governor and the chairs of the senate
18.10and house committees responsible for higher
18.11education and economic development by
18.12June 30 of each fiscal year.
18.13
Subd. 6.Academic Health Center
18.14The appropriation for Academic Health
18.15Center funding under Minnesota Statutes,
18.16section 297F.10, is $22,250,000 each year.

18.17
Sec. 6. MAYO CLINIC
18.18
Subdivision 1.Total Appropriation
$
1,202,000
$
1,250,000
18.19The amounts that may be spent for each
18.20purpose are specified in the following
18.21subdivisions.
18.22
Subd. 2.Medical School
591,000
615,000
18.23The state of Minnesota must pay a capitation
18.24each year for each student who is a resident
18.25of Minnesota. The appropriation may be
18.26transferred between years of the biennium to
18.27accommodate enrollment fluctuations. The
18.28funding base for this program is $640,000 in
18.29fiscal year 2010 and $665,000 in fiscal year
18.302011.
18.31It is intended that during the biennium the
18.32Mayo Clinic use the capitation money to
18.33increase the number of doctors practicing in
18.34rural areas in need of doctors.
19.1
19.2
Subd. 3.Family Practice and Graduate
Residency Program
611,000
635,000
19.3The state of Minnesota must pay stipend
19.4support for up to 27 residents each year. The
19.5funding base for this program is $660,000 in
19.6fiscal year 2010 and $686,000 in fiscal year
19.72011.

19.8    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.
19.9    Subdivision 1. Membership. A 12-member legislative commission on
19.10postsecondary funding is established consisting of six members of the house of
19.11representatives appointed by the speaker and six members of the senate appointed by
19.12the Subcommittee on Committees of the Committee on Rules and Administration. The
19.13commission may elect a chair and other officers as necessary.
19.14    Subd. 2. Charge. The commission must develop an alternative funding formula
19.15or funding method for postsecondary education that creates incentives for high quality
19.16postsecondary education while maintaining access for students. In developing the formula
19.17or funding method, the commission must consider and address:
19.18    (1) both institutional aid and direct student aid;
19.19    (2) the major cost drivers in postsecondary education, such as inflation and
19.20enrollment;
19.21    (3) federal postsecondary funding and tax incentives for postsecondary education;
19.22and
19.23    (4) funding the formula or funding method within the projected constraints on the
19.24state budget in the coming decade.
19.25    Subd. 3. Report. The commission must report its recommendations to the house
19.26Division on Higher Education and Workforce Development Policy and Finance, and the
19.27senate Higher Education Budget and Policy Division by June 30, 2008.
19.28    Subd. 4. Expiration. The commission expires June 30, 2008.

19.29    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA
19.30NEIGHBORHOOD ALLIANCE.
19.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
19.32have the meanings given them.
20.1    (b) "Alliance" means a representative body of the constituencies, including, but
20.2not limited to, the University of Minnesota, the city of Minneapolis, and the recognized
20.3neighborhood organizations and business associations referenced in the report.
20.4    (c) "Board" means the Board of Regents of the University of Minnesota.
20.5    (d) "Report" means the report and appendix entitled Moving Forward Together:
20.6University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to
20.7the legislature in February 2007.
20.8    (e) "University partnership district" or "district" means the area located within the
20.9city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East
20.10Como, Prospect Park, and University, as they are defined by the city, and the university's
20.11Minneapolis campus.
20.12    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that
20.13house significant numbers of university students and staff. Transportation and housing
20.14policy analysis and planning must include these areas but they must not be included in
20.15the projects funded through the alliance.
20.16    (g) "University" means the University of Minnesota.
20.17    Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage
20.18projects with the board, city, or other public or private entities that are intended to
20.19maintain the university partnership district as a viable place to study, research, and live.
20.20Projects may include, but are not limited to, those outlined in the report, as well as
20.21efforts to involve students in activities to maintain and improve the university partnership
20.22district; cooperative university and university partnership district long-term planning; and
20.23incentives to increase homeownership within the district with particular emphasis on
20.24employees of the university and of other major employers located within the district.
20.25    Subd. 3. Report. The board must report to the legislature by January 15, 2009, on
20.26the expenditure of funds appropriated under section 3.

20.27    Sec. 9. MINNESOTA OFFICE OF HIGHER EDUCATION FINANCIAL AID
20.28STUDY.
20.29    The Minnesota Office of Higher Education must review and evaluate the existing
20.30financial aid programs that provide loans and grants to students in postsecondary education
20.31and the needs of the workforce for occupations that are currently or will be in demand.
20.32The study must evaluate how effective the financial aid programs are at linking the needs
20.33of the workforce with student need for financial aid. The study must also identify options
20.34for designing financial aid programs including loan forgiveness and loan repayment
20.35programs that target the needs of the workforce and provide incentives to students to
21.1pursue postsecondary education in fields with identified workforce needs. By February
21.215, 2008, the office must report to the legislative committees responsible for higher
21.3education and workforce development on the findings of the study and provide options
21.4and recommendations on how to deliver financial aid, provide incentives for students,
21.5and meet the needs of the workforce for occupations that include speech pathologists
21.6and other occupations with unmet need.

21.7ARTICLE 2
21.8MINNESOTA GI BILL FOR VETERANS

21.9    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to
21.10read:
21.11    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
21.12for:
21.13    (1) necessary state level administration of financial aid and Minnesota GI Bill
21.14programs, including accounting, auditing, and disbursing state and federal financial aid
21.15funds, and reporting on financial aid programs to the governor and the legislature;
21.16    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
21.17and career schools, under sections 136A.61 to 136A.71 and chapter 141;
21.18    (3) administering the Learning Network of Minnesota;
21.19    (4) negotiating and administering reciprocity agreements;
21.20    (5) publishing and distributing financial aid information and materials, and other
21.21information and materials under section 136A.87, to students and parents;
21.22    (6) collecting and maintaining student enrollment and financial aid data and
21.23reporting data on students and postsecondary institutions to develop and implement a
21.24process to measure and report on the effectiveness of postsecondary institutions;
21.25    (7) administering the federal programs that affect students and institutions on a
21.26statewide basis; and
21.27    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
21.28administer the programs under its supervision.
21.29EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
21.30qualifying coursework taken on or after that date.

21.31    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.
21.32    Subdivision 1. Policy. It is the policy of the state of Minnesota to provide
21.33postsecondary educational assistance to Minnesota veterans who have provided honorable
22.1service to this state and nation as members of the United States armed forces, whether
22.2in peacetime or in war, and to the spouses and children of Minnesota veterans who have
22.3become severely disabled or deceased during or as the direct result of military service.
22.4    Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section.
22.5    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
22.6specified.
22.7    (c) "Cost of attendance" for both undergraduate and graduate students has the
22.8meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
22.9    (d) "Child" means a natural or adopted child of a person described in subdivision 5,
22.10paragraph (a), clause (1), item (i) or (ii).
22.11    (e) "Director" means the director of the Minnesota Office of Higher Education.
22.12    (f) "Eligible institution" means a postsecondary institution located in this state
22.13that either (1) is operated by this state; or (2) is operated publicly or privately and, as
22.14determined by the office, maintains academic standards substantially equivalent to those
22.15of comparable institutions operated in this state.
22.16    (g) "Eligible student" means a person who:
22.17    (1) if the student is an undergraduate student, has applied for the federal Pell Grant
22.18and the Minnesota State Grant;
22.19    (2) is maintaining satisfactory academic progress as defined by the institution for
22.20students participating in federal Title IV programs;
22.21    (3) is enrolled in an education program leading to a certificate, diploma, or degree
22.22at an eligible institution;
22.23    (4) has applied for educational assistance under the Minnesota GI Bill program prior
22.24to the end of the academic term for which the assistance is being requested.
22.25    (5) is in compliance with child support payment requirements under section
22.26136A.121, subdivision 2, clause (5).
22.27    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12
22.28credits in a semester or the equivalent, or a graduate student as defined by the student's
22.29eligible institution.
22.30    (i) "Program" means the Minnesota GI Bill program established in this section,
22.31unless otherwise specified.
22.32    (j) "Service-connected" has the meaning given by the United States Department
22.33of Veterans Affairs.
22.34    (k) "Veteran" has the meaning given in section 197.447, and also includes a service
22.35member who has fulfilled the requirements for being a veteran but is still serving actively
22.36in the United States armed forces.
23.1    Subd. 3. Program established. There is established a program to provide
23.2postsecondary educational assistance to eligible Minnesota veterans and to the children
23.3and spouses of deceased and severely disabled Minnesota veterans. This program may be
23.4cited as the "Minnesota GI Bill program."
23.5    The director, in consultation with the commissioner and in cooperation with
23.6eligible postsecondary educational institutions, shall expend a biennial appropriation
23.7for the purpose of providing postsecondary educational assistance to eligible persons
23.8in accordance with this program. Each public postsecondary educational institution in
23.9the state must participate in the program and each private postsecondary educational
23.10institution in the state is encouraged to participate in the program. Any participating
23.11private institution may suspend or terminate its participation in the program at the end
23.12of any semester or other academic term.
23.13    Subd. 4. Duties; responsibilities. (a) The director, in consultation with the
23.14commissioner, shall establish policies and procedures including, but not limited to,
23.15procedures for student application record keeping, information sharing, payment to
23.16participating eligible institutions, and other procedures the director considers appropriate
23.17and necessary for effective and efficient administration of the program established in
23.18this section.
23.19    (b) The director, in consultation with the commissioner, may delegate part or
23.20all of the administrative procedures for the program to responsible representatives of
23.21participating eligible institutions.
23.22    Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this
23.23section if:
23.24    (1) the person is:
23.25    (i) a veteran who is serving or has served honorably in any branch or unit of the
23.26United States armed forces at any time on or after August 2, 1990;
23.27    (ii) a nonveteran who has served honorably for a total of 16 years or more
23.28cumulatively as a member of the Minnesota national guard or any other active or reserve
23.29component of the United States armed forces, and any part of that service occurred on
23.30or after August 2, 1990;
23.31    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as
23.32a direct result of that military service; or
23.33    (iv) the spouse or child of a person described in (i) or (ii) who has a total
23.34and permanent service-connected disability as rated by the United States veterans
23.35administration;
24.1    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's
24.2state of residence at the time of the person's initial enlistment or any reenlistment in
24.3the United States armed forces;
24.4    (3) the person receiving the educational assistance is a Minnesota resident, as
24.5defined in section 136A.101, subdivision 8; and
24.6    (4) the person receiving the educational assistance is an eligible student.
24.7    (b) A person's eligibility terminates when the person becomes eligible for benefits
24.8under section 135A.52.
24.9    (c) As proof of honorable service and disability or death status for a veteran or
24.10service member, the director, by policy and in consultation with the commissioner, may
24.11require official documentation, including the person's federal form DD-214 or other official
24.12military discharge papers, correspondence from the United States veterans administration,
24.13birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed
24.14affidavits, proof of residency, proof of identity, or any other official documentation the
24.15director considers necessary to determine an applicant's eligibility status.
24.16    (d) The director, in consultation with the commissioner, may deny eligibility or
24.17terminate benefits under this section to any person who has not provided sufficient proof of
24.18eligibility for the program. An applicant may appeal the director's eligibility determination
24.19in writing to the director at any time. The director must rule on any application or appeal
24.20within 30 days of receipt of all documentation that the director requires. Upon receiving
24.21an application with insufficient documentation, the director must notify the applicant
24.22within 30 days of receipt of the application that the application is being suspended pending
24.23receipt by the director of sufficient documentation from the applicant. The decision of the
24.24director regarding an appeal is final; however, an applicant whose appeal of an eligibility
24.25determination has been rejected by the director may submit an additional appeal of that
24.26determination in writing to the director at any time that the applicant is able to provide
24.27substantively significant additional information relating to the person's eligibility for the
24.28program. An approval of an applicant's eligibility by the director following an appeal by
24.29the applicant is not retroactively effective beyond the later of one year previously or the
24.30semester of the person's original application.
24.31    Subd. 6. Benefit amount. (a) On approval by the director of an applicant's
24.32eligibility for the program, the applicant shall be awarded, on a funds-available basis, the
24.33educational assistance under the program for use at any time according to program rules
24.34at any eligible institution. Eligibility for the program terminates upon exhaustion of a
24.35person's benefits as specified in paragraph (c).
25.1    (b) The amount of educational assistance in any semester or term for an eligible
25.2person must be determined by subtracting from the eligible person's cost of attendance
25.3at that eligible public institution, or in the case of an eligible private institution the cost
25.4of attendance for a comparable program at the Twin Cities campus of the University of
25.5Minnesota, the amount the person received or was eligible to receive in that semester
25.6or term from:
25.7    (1) the federal Pell Grant;
25.8    (2) the state grant under section 136A.121; and
25.9    (3) any federal military or veterans educational benefits, including, but not limited
25.10to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
25.11vocational rehabilitation benefits, and any other federal benefits associated with the
25.12person's status as a veteran, except veterans disability payments from the United States
25.13Department of Veterans Affairs.
25.14    (c) The amount of education assistance for any eligible person must not exceed any
25.15of the following amounts:
25.16    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student
25.17$625 per semester or term of enrollment;
25.18    (2) $3,570 per state fiscal year; and
25.19    (3) $10,000 total.
25.20EFFECTIVE DATE.This section is effective July 1, 2007, and applies to
25.21qualifying coursework taken on or after that date.

25.22    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.
25.23    The commissioner of veterans affairs, in consultation with the director of higher
25.24education, must annually review veterans' participation level in and expenditures for the
25.25Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15
25.26each year, must make recommendations to the chairs of the senate and house committees
25.27having oversight responsibility for veterans affairs regarding adjustment of individual
25.28benefit levels and program funding.

25.29ARTICLE 3
25.30RELATED HIGHER EDUCATION

25.31    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
26.1    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing
26.2involving the Minnesota Office of Higher Education and other institutions is governed
26.3by sections section 136A.05 and 136A.08, subdivision 8.
26.4    (b) Student financial aid. Data collected and used by the Minnesota Office of
26.5Higher Education on applicants for financial assistance are classified under section
26.6136A.162 .
26.7    (c) Minnesota college savings plan data. Account owner data, account data, and
26.8data on beneficiaries of accounts under the Minnesota college savings plan are classified
26.9under section 136G.05, subdivision 10.
26.10    (d) School financial records. Financial records submitted by schools registering
26.11with the Minnesota Office of Higher Education are classified under section 136A.64.
26.12    (e) Enrollment and financial aid data. Data collected from eligible institutions on
26.13student enrollment and federal and state financial aid are governed by sections 136A.121,
26.14subdivision 18, and 136A.1701, subdivision 11.

26.15    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision
26.16to read:
26.17    Subd. 4. Construction management education surcharge and account. (a)
26.18For nonresidential construction building permits, the surcharge under subdivision 1
26.19is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents,
26.20whichever amount is greater, and designated for and deposited in the construction
26.21management education account.
26.22    (b) The construction management education account is created as an account in the
26.23special revenue fund, administered by the Minnesota Office of Higher Education for
26.24the purpose of enhancing construction management education in public postsecondary
26.25institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the
26.26director of the Minnesota Office of Higher Education for the purposes of section 136A.127.

26.27    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:
26.28    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture
26.29Education Leadership Council is established. The council is composed of 16 17 members
26.30as follows:
26.31    (1) the chair of the University of Minnesota agricultural education program;
26.32    (2) a representative of the commissioner of education;
26.33    (3) a representative of the Minnesota State Colleges and Universities recommended
26.34by the chancellor;
27.1    (4) the president and the president-elect of the Minnesota Association of Agriculture
27.2Educators;
27.3    (5) a representative of the Future Farmers of America Foundation;
27.4    (6) a representative of the commissioner of agriculture;
27.5    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the
27.6University of Minnesota;
27.7    (8) a representative of the Minnesota Private Colleges Council;
27.8    (9) two members representing agriculture education and agriculture business
27.9appointed by the governor;
27.10    (9) (10) the chair of the senate Committee on Agriculture, General Legislation
27.11and Veterans Affairs;
27.12    (10) (11) the chair of the house Committee on Agriculture;
27.13    (11) (12) the ranking minority member of the senate Committee on Agriculture,
27.14General Legislation and Veterans Affairs, and a member of the senate Education
27.15Committee designated by the Subcommittee on Committees of the Committee on Rules
27.16and Administration; and
27.17    (12) (13) the ranking minority member of the house Agriculture Committee, and a
27.18member of the house Education Committee designated by the speaker.
27.19    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7),
27.20(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement
27.21member representing the same constituency.

27.22    Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:
27.23    Subd. 2. Revisions and reviews required. (a) The commissioner of education must
27.24revise and appropriately embed technology and information literacy standards consistent
27.25with recommendations from school media specialists into the state's academic standards
27.26and graduation requirements and implement a review cycle for state academic standards
27.27and related benchmarks, consistent with this subdivision. During each review cycle, the
27.28commissioner also must examine the alignment of each required academic standard and
27.29related benchmark with the knowledge and skills students need for college readiness and
27.30advanced work in the particular subject area.
27.31    (b) The commissioner in the 2006-2007 school year must revise and align the state's
27.32academic standards and high school graduation requirements in mathematics to require
27.33that students satisfactorily complete the revised mathematics standards, beginning in the
27.342010-2011 school year. Under the revised standards:
28.1    (1) students must satisfactorily complete an algebra I credit by the end of eighth
28.2grade; and
28.3    (2) students scheduled to graduate in the 2014-2015 school year or later must
28.4satisfactorily complete an algebra II credit or its equivalent.
28.5The commissioner also must ensure that the statewide mathematics assessments
28.6administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
28.7school year are aligned with the state academic standards in mathematics. The statewide
28.811th grade mathematics test administered to students under clause (2) beginning in
28.9the 2013-2014 school year must include algebra II test items that are aligned with
28.10corresponding state academic standards in mathematics. The commissioner, in
28.11collaboration with the Minnesota State Colleges and Universities, must ensure that passing
28.12score for the statewide 11th grade mathematics test represents readiness for college so that
28.13a student who achieves a passing score on this test, upon graduation, is immediately ready
28.14to take college courses for college credit in a two-year or a four-year institution, consistent
28.15with section 135A.104. The commissioner must implement a review of the academic
28.16standards and related benchmarks in mathematics beginning in the 2015-2016 school year.
28.17    (c) The commissioner in the 2007-2008 school year must revise and align the state's
28.18academic standards and high school graduation requirements in the arts to require that
28.19students satisfactorily complete the revised arts standards beginning in the 2010-2011
28.20school year. The commissioner must implement a review of the academic standards and
28.21related benchmarks in arts beginning in the 2016-2017 school year.
28.22    (d) The commissioner in the 2008-2009 school year must revise and align the state's
28.23academic standards and high school graduation requirements in science to require that
28.24students satisfactorily complete the revised science standards, beginning in the 2011-2012
28.25school year. Under the revised standards, students scheduled to graduate in the 2014-2015
28.26school year or later must satisfactorily complete a chemistry or physics credit. The
28.27commissioner must implement a review of the academic standards and related benchmarks
28.28in science beginning in the 2017-2018 school year.
28.29    (e) The commissioner in the 2009-2010 school year must revise and align the state's
28.30academic standards and high school graduation requirements in language arts to require
28.31that students satisfactorily complete the revised language arts standards beginning in the
28.322012-2013 school year. The commissioner, in collaboration with the Minnesota State
28.33Colleges and Universities, must ensure that the passing score for the statewide tenth
28.34grade reading and language arts test represents readiness for college so that a student who
28.35achieves a passing score on this test, upon graduation, is immediately ready to take college
28.36courses for college credit in a two-year or a four-year institution, consistent with section
29.1135A.104. The commissioner must implement a review of the academic standards and
29.2related benchmarks in language arts beginning in the 2018-2019 school year.
29.3    (f) The commissioner in the 2010-2011 school year must revise and align the state's
29.4academic standards and high school graduation requirements in social studies to require
29.5that students satisfactorily complete the revised social studies standards beginning in the
29.62013-2014 school year. The commissioner must implement a review of the academic
29.7standards and related benchmarks in social studies beginning in the 2019-2020 school year.
29.8    (g) School districts and charter schools must revise and align local academic
29.9standards and high school graduation requirements in health, physical education, world
29.10languages, and career and technical education to require students to complete the revised
29.11standards beginning in a school year determined by the school district or charter school.
29.12School districts and charter schools must formally establish a periodic review cycle for
29.13the academic standards and related benchmarks in health, physical education, world
29.14languages, and career and technical education.

29.15    Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read:
29.16120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.
29.17    (a) Students beginning 9th grade in the 2004-2005 school year and later must
29.18successfully complete the following high school level course credits for graduation:
29.19    (1) four credits of language arts;
29.20    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
29.21and probability sufficient to satisfy the academic standard;
29.22    (3) three credits of science, including at least one credit in biology;
29.23    (4) three and one-half credits of social studies, encompassing at least United
29.24States history, geography, government and citizenship, world history, and economics or
29.25three credits of social studies encompassing at least United States history, geography,
29.26government and citizenship, and world history, and one-half credit of economics taught in
29.27a school's social studies, agriculture education, or business department;
29.28    (5) one credit in the arts; and
29.29    (6) a minimum of seven elective course credits.
29.30    A course credit is equivalent to a student successfully completing an academic
29.31year of study or a student mastering the applicable subject matter, as determined by the
29.32local school district.
29.33    (b) An agriculture science course may fulfill a science credit requirement in addition
29.34to the specified science credits in biology and chemistry or physics under paragraph (a),
29.35clause (3).
30.1    (c) The commissioner, in collaboration with the Minnesota State Colleges and
30.2Universities, must develop and implement a statewide plan to communicate with all
30.3Minnesota high school students no later than the beginning of ninth grade the state's
30.4expectations for college readiness, consistent with sections 120B.023, subdivision 2,
30.5paragraphs (b) and (e), and 135A.104.

30.6    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
30.7    Subd. 7. Reports. Instructional expenditure and enrollment data for each
30.8instructional category shall be submitted by the public postsecondary systems to the
30.9Minnesota Office of Higher Education and the Department of Finance and included in the
30.10biennial budget document. The specific data shall be submitted only after the director of
30.11the Minnesota Office of Higher Education has consulted with a data advisory task force to
30.12determine the need, content, and detail of the information.

30.13    Sec. 7. [135A.043] RESIDENT TUITION.
30.14    (a) A student shall qualify for a resident tuition rate or its equivalent at state
30.15universities and colleges, including the University of Minnesota, if the student meets
30.16all of the following requirements:
30.17    (1) high school attendance within the state for three or more years;
30.18    (2) graduation from a state high school or attainment within the state of the
30.19equivalent of high school graduation; and
30.20    (3) registration as an entering student at, or current enrollment in, a public institution
30.21of higher education.
30.22    (b) This section is in addition to any other statute, rule, or higher education
30.23institution regulation or policy providing eligibility for a resident tuition rate or its
30.24equivalent to a student.
30.25    (c) To qualify for resident tuition under this section an individual who is not a citizen
30.26or permanent resident of the United States must provide the college or university with
30.27an affidavit that the individual will file an application to become a permanent resident at
30.28the earliest opportunity the individual is eligible to do so.
30.29EFFECTIVE DATE.This section is effective the day following final enactment
30.30and applies to tuition for school terms commencing on or after that date.

30.31    Sec. 8. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:
30.32    Subd. 2. Performance and accountability. Higher education systems and
30.33campuses are expected to achieve the objectives in subdivision 1 and will be held
31.1accountable for doing so. The legislature is increasing the flexibility of the systems and
31.2campuses to provide greater responsibility to higher education in deciding how to achieve
31.3statewide objectives, and to decentralize authority so that those decisions can be made
31.4at the level where the education is delivered. To demonstrate their accountability, the
31.5legislature expects each system and campus to measure and report on its performance,
31.6using meaningful indicators that are critical to achieving the objectives in subdivision 1,
31.7as provided in section 135A.033. Nothing in this section precludes a system or campus
31.8from determining its own objectives and performance measures beyond those identified
31.9in this section.

31.10    Sec. 9. [135A.104] COLLEGE READINESS.
31.11    (a) Minnesota State Colleges and Universities must collaborate with the
31.12commissioner of education in establishing passing scores on the Minnesota comprehensive
31.13assessments in reading for grade 10 and in mathematics for grade 11 under section
31.14120B.30 so that "passing score" performances on those two assessments represent a
31.15student's college readiness. For purposes of this section and chapter 120B, "college
31.16readiness" means that a student who graduates from a public high school is immediately
31.17ready to take college courses for college credit in a two-year or a four-year institution.
31.18Minnesota State Colleges and Universities also must collaborate with the commissioner of
31.19education to develop and implement a statewide plan to communicate with all Minnesota
31.20high school students no later than the beginning of ninth grade the state's expectations for
31.21college readiness.
31.22    (b) The entrance and admission materials that the Minnesota State Colleges and
31.23Universities provide to prospective students must clearly indicate the level of academic
31.24preparation that the students must have in order to be ready to immediately take college
31.25courses for college credit in two-year and four-year institutions.

31.26    Sec. 10. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
31.27    Subdivision 1. Definitions. As used in this section, the following terms have the
31.28meanings given them.
31.29    (a) "Administrator" means the administrator of the institution or other person with
31.30general control and supervision of the institution.
31.31    (b) "Public or private postsecondary educational institution" or "institution" means
31.32any of the following institutions having an enrollment of more than 100 persons during
31.33any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
31.34(2) the state universities; (3) the state community colleges; (4) public technical colleges;
32.1(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
32.2and (7) schools subject to either chapter 141, sections 136A.61 136A.615 to 136A.71, or
32.3schools exempt under section 136A.657, and which offer educational programs within the
32.4state for an academic year greater than six consecutive months. An institution's report to
32.5the Minnesota Office of Higher Education or the Minnesota Department of Education may
32.6be considered when determining enrollment.
32.7    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota
32.8high school in 1997 or later, and who is (1) registering for more than one class during
32.9a full academic term, such as a quarter or a semester or (2) housed on campus and is
32.10registering for one or more classes. Student does not include persons enrolled in extension
32.11classes only or correspondence classes only.

32.12    Sec. 11. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:
32.13    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years
32.14of age before the beginning of any term, semester or quarter, in which a course of study
32.15is pursued, or a person receiving a railroad retirement annuity who has reached 60 years
32.16of age before the beginning of the term.

32.17    Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
32.18    Subdivision 1. Fees and tuition. Except for an administration fee established by the
32.19governing board at a level to recover costs, to be collected only when a course is taken for
32.20credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
32.21of tuition or activity fees to attend courses offered for credit, audit any courses offered
32.22for credit, or enroll in any noncredit courses in any state supported institution of higher
32.23education in Minnesota when space is available after all tuition-paying students have been
32.24accommodated. A senior citizen enrolled under this section must pay any materials,
32.25personal property, or service charges for the course. In addition, a senior citizen who is
32.26enrolled in a course for credit must pay an administrative fee in an amount established
32.27by the governing board of the institution to recover the course costs. There shall be no
32.28administrative fee charges to a senior citizen auditing a course. For the purposes of this
32.29section and section 135A.51, the term "noncredit courses" shall not include those courses
32.30designed and offered specifically and exclusively for senior citizens.
32.31    The provisions of this section and section 135A.51 do not apply to noncredit courses
32.32designed and offered by the University of Minnesota, and the Minnesota State Colleges
32.33and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
32.34under the provisions of this section and section 135A.51 shall not be included by such
33.1institutions in their computation of full-time equivalent students when requesting staff
33.2or appropriations.

33.3    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
33.4    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there
33.5shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
33.6courses, nor income limitation imposed in determining eligibility.
33.7    (b) A senior citizen enrolled in a closed enrollment contract training or professional
33.8continuing education program is not eligible for benefits under subdivision 1.

33.9    Sec. 14. [136A.002] DEFINITIONS.
33.10    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
33.11have the meanings given them.
33.12    Subd. 2. Office of Higher Education or office. "Office of Higher Education" or
33.13"office" means the Minnesota Office of Higher Education.

33.14    Sec. 15. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
33.15    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible
33.16for:
33.17    (1) necessary state level administration of financial aid programs, including
33.18accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
33.19financial aid programs to the governor and the legislature;
33.20    (2) approval, registration, licensing, and financial aid eligibility of private collegiate
33.21and career schools, under sections 136A.61 136A.615 to 136A.71 and chapter 141;
33.22    (3) administering the Learning Network of Minnesota;
33.23    (4) negotiating and administering reciprocity agreements;
33.24    (5) publishing and distributing financial aid information and materials, and other
33.25information and materials under section 136A.87, to students and parents;
33.26    (6) collecting and maintaining student enrollment and financial aid data and
33.27reporting data on students and postsecondary institutions to develop and implement a
33.28process to measure and report on the effectiveness of postsecondary institutions;
33.29    (7) administering the federal programs that affect students and institutions on a
33.30statewide basis; and
33.31    (8) prescribing policies, procedures, and rules under chapter 14 necessary to
33.32administer the programs under its supervision.

34.1    Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
34.2    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory
34.3groups established in this section do not expire on June 30, 2007.

34.4    Sec. 17. Minnesota Statutes 2006, section 136A.0411, is amended to read:
34.5136A.0411 COLLECTING FEES.
34.6    The office may charge fees for seminars, conferences, workshops, services, and
34.7materials. The office may collect fees for registration and licensure of private institutions
34.8under sections 136A.61 136A.615 to 136A.71 and chapter 141. The money is annually
34.9appropriated to the office.

34.10    Sec. 18. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
34.11    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually,
34.12before the last day in January, submit a report to the committees in the house of
34.13representatives and the senate with responsibility for higher education finance on:
34.14    (1) participation in the tuition reciprocity program by Minnesota students and
34.15students from other states attending Minnesota postsecondary institutions under a
34.16reciprocity agreement;
34.17    (2) reciprocity and resident tuition rates at each institution; and
34.18    (3) interstate payments and obligations for each state participating in the tuition
34.19reciprocity program in the prior year.; and
34.20    (4) summary statistics on number of graduates by institution, degree granted, and
34.21year of graduation for reciprocity students who attended Minnesota postsecondary
34.22institutions.

34.23    Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
34.24    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
34.25educational institution located in this state or in a state with which the office has entered
34.26into a higher education reciprocity agreement on state student aid programs that either (1)
34.27is operated by this state or the Board of Regents of the University of Minnesota, or (2) is
34.28operated publicly or privately and, as determined by the office, meets all of the following:
34.29(i) maintains academic standards substantially equivalent to those of comparable
34.30institutions operated in this state; (ii) is licensed or registered as a postsecondary institution
34.31by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
34.32Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

35.1    Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
35.2    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
35.3responsibility for covering the recognized cost of attendance by the applicant, the
35.4applicant's family, and the government. The amount of a financial stipend must not
35.5exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
35.6deducting the following:
35.7    (1) the assigned student responsibility of at least 46 45.5 percent of the cost of
35.8attending the institution of the applicant's choosing;
35.9    (2) the assigned family responsibility as defined in section 136A.101; and
35.10    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.
35.11    The minimum financial stipend is $100 per academic year.

35.12    Sec. 21. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
35.13    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
35.14the applicant:
35.15    (1) is a resident of the state of Minnesota;
35.16    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
35.17disabled as defined in section 125A.02, and who is receiving or will receive care on a
35.18regular basis from a licensed or legal, nonlicensed caregiver;
35.19    (3) is income eligible as determined by the office's policies and rules, but is not a
35.20recipient of assistance from the Minnesota family investment program;
35.21    (4) has not earned a baccalaureate degree and has been enrolled full time less than
35.22eight semesters or the equivalent;
35.23    (5) is pursuing a nonsectarian program or course of study that applies to an
35.24undergraduate degree, diploma, or certificate;
35.25    (6) is enrolled at least half time in an eligible institution; and
35.26    (7) is in good academic standing and making satisfactory academic progress.
35.27    (b) A student who withdraws from enrollment for active military service is entitled
35.28to an additional semester or the equivalent of grant eligibility and will be considered to be
35.29in continuing enrollment status upon return.

35.30    Sec. 22. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS;
35.31MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.
35.32    Subdivision 1. TEACH. The teacher education and compensation helps program
35.33(TEACH) is established to provide tuition scholarships, education incentives, and an early
35.34childhood teacher retention program to provide retention incentives to early care and
36.1education providers. The director shall make a grant with appropriations for this purpose
36.2to a nonprofit organization licensed to administer the TEACH early childhood program.
36.3    Subd. 2. Program components. (a) The nonprofit organization must use the
36.4grant for:
36.5    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally
36.6recognized child development associate credential or college-level courses leading to an
36.7associate's or bachelor's degree in early childhood development and school-age care; and
36.8    (2) education incentives of a minimum of $100 to participants in the tuition
36.9scholarship program if they complete a year of working in the early care and education
36.10field.
36.11    (b) Applicants for the scholarship must be employed by a licensed early childhood
36.12or child care program and working directly with children, a licensed family child care
36.13provider, or an employee in a school-age program exempt from licensing under section
36.14245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in
36.15awarding the tuition scholarships. Scholarship recipients must contribute ten percent of
36.16the total scholarship and must be sponsored by their employers, who must also contribute
36.17ten percent of the total scholarship. Scholarship recipients who are self-employed must
36.18contribute 20 percent of the total scholarship.
36.19    (c) The organization must also use the grant for teacher retention incentives of
36.20$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives
36.21must be employed by a licensed early childhood or child care program and working
36.22directly with children, a licensed family child care provider, or an employee in a
36.23school-age program exempt from licensing under section 245A.03, subdivision 2, clause
36.24(12). Lower wage earners must be given priority for the retention incentives. The amount
36.25of the retention incentive must be based on the applicant's level of education at the time of
36.26application. A provider is eligible for the retention incentive if the provider:
36.27    (1) has worked in the field for at least one year and has been working at the same
36.28location for at least one year at the time of application;
36.29    (2) agrees to remain in the provider's current position for a period of at least one
36.30year; and
36.31    (3) has an associate's or bachelor's degree or a child development associate's degree.
36.32    Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early
36.33childhood teacher retention programs must have an advisory board as prescribed by the
36.34national TEACH organization.

37.1    Sec. 23. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION
37.2PROGRAM.
37.3    Subdivision 1. Construction Management Education Account Advisory
37.4Committee. The director must establish an advisory committee for the construction
37.5management education account. Members of the committee must include: the executive
37.6vice-president of the Minnesota Mechanical Contractors association or designee, a
37.7chapter manager of one of the Minnesota chapters of the National Electrical Contractors
37.8Association or designee, the executive director of the Associated General Contractors of
37.9Minnesota or designee, two members of the nonresidential construction industry, and a
37.10construction management program coordinator or director from an accredited construction
37.11management program in the Minnesota State Colleges and Universities. Members serve
37.12three-year terms. Advisory committee members are reimbursed for expenses related to
37.13committee activities. The director may accept funds from federal, state, or local public
37.14agencies, or from private foundations or individuals for deposit into the construction
37.15management education account under section 16B.70. All money in the account must
37.16be used for the purposes of this section.
37.17    Subd. 2. Grants. Grants from the construction management education account must
37.18be used to maintain and increase the quality and availability of education programs for
37.19the construction industry by awarding grants to accredited construction management
37.20programs in the Minnesota State Colleges and Universities. Grants must be used to
37.21maintain and upgrade facilities and provide greater industry access to modern construction
37.22standards and management practices. In making grants, the director, in consultation with
37.23the committee, must:
37.24    (1) confirm the qualifications of any program applying for a grant;
37.25    (2) affirm applications for American Council for Construction Education
37.26accreditation and, when funds are available, award grants to complete the accreditation
37.27process;
37.28    (3) promote close ties between technical and community colleges and four-year
37.29construction management programs; and
37.30    (4) support the development of new educational programs with specific emphasis on
37.31outreach to the construction industry at large.
37.32    Subd. 3. Grant awards. (a) The committee may award grants to a Minnesota State
37.33Colleges and Universities institution to support construction management education and to
37.34promote outreach and continuing education in the construction industry.
37.35    (b) An eligible institution must provide one of the following:
38.1    (1) a bachelor of science construction management degree accredited by the
38.2American Council for Construction Education;
38.3    (2) a degree with an American Council for Construction Education accredited
38.4option, including, but not limited to, Engineering Technology and Industrial Technology;
38.5    (3) a bachelor of science degree program documenting placement of more than 50
38.6percent of their graduates with Minnesota nonresidential contractors; and
38.7    (4) the development of a construction management curriculum to meet the American
38.8Council for Construction Education criteria.
38.9    (c) Grant awards may be made as follows:
38.10    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000
38.11for institutions qualifying under paragraph (b), clause (1);
38.12    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000
38.13for institutions qualifying under paragraph (b), clause (2);
38.14    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the
38.15past academic year to a maximum of $20,000 for institutions qualifying under paragraph
38.16(b), clause (3);
38.17    (4) up to $25,000 for the purpose of becoming accredited by the American Council
38.18for Construction Education for two years which may be renewed if the institution is
38.19continuing progress towards accreditation; and
38.20    (5) for faculty recruitment and development in construction management programs,
38.21including support for postgraduate work leading to advanced degrees, visiting lecturer
38.22compensation and expenses, teaching assistant positions, and faculty positions; and
38.23    (6) to support general classroom and laboratory operating expenses.
38.24    Grants may only be awarded from the construction management education account
38.25to the extent that funds are available. No other state funding may be provided for these
38.26grants.
38.27    Subd. 4. Reports. (a) The director must annually report to the committees of the
38.28legislature responsible for higher education finance by January 15. The report must
38.29include the names of the public postsecondary educational institutions receiving grants, the
38.30amount of the grant, the purposes for each grant, the number of students served, and the
38.31number of placements made to the construction industry for the previous academic year.
38.32    (b) After receiving an initial grant, the president of the public postsecondary
38.33educational institution must annually submit a report to the director listing the amount of
38.34all past grants awarded from the construction management education account and the uses
38.35of those funds. The report must be submitted with a request for a new or continuing grant
38.36and at a minimum must include the following:
39.1    (1) the number of graduates placed with the Minnesota contractors during the
39.2previous academic year;
39.3    (2) the expected enrollment in construction management courses in the upcoming
39.4academic year; and
39.5    (3) continuing education and extension courses offered in construction management
39.6during the previous academic year and their enrollments.
39.7    Subd. 5. Administration. Up to $15,000 per year from the construction
39.8management education account may be used for the administration of this program.

39.9    Sec. 24. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
39.10    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702, the terms
39.11defined in this section have the meanings ascribed to given them.

39.12    Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
39.13    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
39.14educational institution that either (1) is operated or regulated by this state, or the Board of
39.15Regents of the University of Minnesota; (2) is operated publicly or privately in another
39.16state, is approved by the United States Secretary of Education, and, as determined by
39.17the office, maintains academic standards substantially equal to those of comparable
39.18institutions operated in this state; (3) is licensed or registered as a postsecondary institution
39.19by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
39.20Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It
39.21also includes any institution chartered in a province.

39.22    Sec. 26. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
39.23    Subd. 3. Payments. Work-study payments shall be made to eligible students by
39.24postsecondary institutions as provided in this subdivision.
39.25    (a) Students shall be selected for participation in the program by the postsecondary
39.26institution on the basis of student financial need.
39.27    (b) In selecting students for participation, priority must be given to students enrolled
39.28for at least 12 credits. In each academic year, a student may be awarded work-study
39.29payments for one period of nonenrollment or less than half-time enrollment if the student
39.30will enroll on at least a half-time basis during the following academic term.
39.31    (c) Students will be paid for hours actually worked and the maximum hourly rate
39.32of pay shall not exceed the maximum hourly rate of pay permitted under the federal
39.33college work-study program.
40.1    (d) Minimum pay rates will be determined by an applicable federal or state law.
40.2    (e) The office shall annually establish a minimum percentage rate of student
40.3compensation to be paid by an eligible employer.
40.4    (f) Each postsecondary institution receiving money for state work-study grants
40.5shall make a reasonable effort to place work-study students in employment with eligible
40.6employers outside the institution. However, a public employer other than the institution
40.7may not terminate, lay off, or reduce the working hours of a permanent employee for the
40.8purpose of hiring a work-study student, or replace a permanent employee who is on layoff
40.9from the same or substantially the same job by hiring a work-study student.
40.10    (g) The percent of the institution's work-study allocation provided to graduate
40.11students shall not exceed the percent of graduate student enrollment at the participating
40.12institution.
40.13    (h) An institution may use up to 30 percent of its allocation for student internships
40.14with private, for-profit employers.

40.15    Sec. 27. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
40.16    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered
40.17to issue revenue bonds whose aggregate principal amount at any time shall not exceed
40.18$800,000,000 $950,000,000 and to issue notes, bond anticipation notes, and revenue
40.19refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42,
40.20to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling,
40.21renovating, improving, furnishing, or equipping one or more projects or parts thereof.

40.22    Sec. 28. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
40.23    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education
40.24shall award grants to foster postsecondary attendance and retention by providing outreach
40.25services to historically underserved students in grades six through 12 and historically
40.26underrepresented college students. Grants must be awarded to programs that provide
40.27precollege services, including, but not limited to:
40.28    (1) academic counseling;
40.29    (2) mentoring;
40.30    (3) fostering and improving parental involvement in planning for and facilitating a
40.31college education;
40.32    (4) services for students with English as a second language;
40.33    (5) academic enrichment activities;
40.34    (6) tutoring;
41.1    (7) career awareness and exploration;
41.2    (8) orientation to college life;
41.3    (9) assistance with high school course selection and information about college
41.4admission requirements; and
41.5    (10) financial aid counseling.
41.6    Grants shall be awarded to postsecondary institutions, professional organizations,
41.7community-based organizations, or others deemed appropriate by the director.
41.8    Grants shall be awarded for one year and may be renewed for a second year with
41.9documentation to the Minnesota Office of Higher Education of successful program
41.10outcomes.

41.11    Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
41.12    Subd. 2. Eligible students. Eligible students include students in grades six through
41.1312 who meet one or more of the following criteria:
41.14    (1) are counted under section 1124(c) of the Elementary and Secondary Education
41.15Act of 1965 (Title I);
41.16    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;
41.17    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title
41.18I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
41.19    (4) are a member of a group traditionally underrepresented in higher education.
41.20    Eligible undergraduate students include those who met the student eligibility criteria
41.21as 6th through 12th graders.

41.22    Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
41.23    Subd. 3. Application process. The director of the Minnesota Office of Higher
41.24Education shall develop a grant application process. The director shall attempt to support
41.25projects in a manner that ensures that eligible students throughout the state have access
41.26to precollege program services.
41.27    The grant application must include, at a minimum, the following information:
41.28    (1) a description of the characteristics of the students to be served reflective of the
41.29need for services listed in subdivision 1;
41.30    (2) a description of the services to be provided and a timeline for implementation of
41.31the activities;
41.32    (3) a description of how the services provided will foster postsecondary attendance
41.33and support postsecondary retention;
42.1    (4) a description of how the services will be evaluated to determine whether the
42.2program goals were met; and
42.3    (5) other information as identified by the director.
42.4Grant recipients must specify both program and student outcome goals, and performance
42.5measures for each goal.

42.6    Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
42.7    Subd. 6. Program evaluation. Each grant recipient must annually submit a report
42.8to the Minnesota Office of Higher Education delineating its program and student outcome
42.9goals, and activities implemented to achieve the stated outcomes. The goals must be
42.10clearly stated and measurable. Grant recipients are required to collect, analyze, and report
42.11on participation and outcome data that enable the office to verify that the program goals
42.12were met. The office shall maintain:
42.13    (1) information about successful precollege program and undergraduate student
42.14retention program activities for dissemination to individuals throughout the state interested
42.15in adopting or replicating successful program practices; and
42.16    (2) data on the success of the funded projects in increasing the high school
42.17graduation and, college participation, and college graduation rates of students served
42.18by the grant recipients. The office may convene meetings of the grant recipients, as
42.19needed, to discuss issues pertaining to the implementation of precollege services and
42.20undergraduate retention programs.

42.21    Sec. 32. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
42.22    Subdivision 1. Membership. The board consists of 15 17 members appointed by
42.23the governor with the advice and consent of the senate. At least one member of the board
42.24must be a resident of each congressional district. Three members must be students who are
42.25enrolled at least half time in a degree, diploma, or certificate program or have graduated
42.26from an institution governed by the board within one year of the date of appointment. The
42.27student members shall include: one member from a community college, one member from
42.28a state university, and one member from a technical college. Two members must be
42.29members of the AFL-CIO. The remaining members must be appointed to represent the
42.30state at large.

42.31    Sec. 33. [136F.045] UNION MEMBER SELECTION.
42.32    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting,
42.33screening, and recommending qualified candidates for their members of the board. The
43.1AFL-CIO must develop a statement of selection criteria for board membership and a
43.2process for recommending candidates. Beginning in 2008, and every six years thereafter,
43.3the AFL-CIO must recommend four candidates for the two board positions to the governor
43.4by April 15. The governor must appoint two of the candidates to the board of trustees.

43.5    Sec. 34. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
43.6    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board,
43.7in consultation with the commissioners of employee relations and finance, may develop
43.8policies to allow system office or campus employees on salaries, as defined in section
43.943A.17, subdivision 1 , to use negative time reporting in which employees report only that
43.10time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation
43.11with the commissioners of employee relations and finance, shall evaluate the use of
43.12negative time reporting and its potential for use with other state employees.

43.13    Sec. 35. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
43.14    Subd. 2. Activity funds. All receipts attributable to the state colleges and
43.15universities activity funds and deposited in the state treasury are appropriated to the board
43.16and are not subject to budgetary control as exercised by the commissioner of finance.

43.17    Sec. 36. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision
43.18to read:
43.19    Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall
43.20have authority to control the amount and manner of deposit of all receipts described in
43.21this section in depositories selected by the board. The board's authority shall include
43.22specifying the considerations, financial activities, and conditions required from the
43.23depository, including the requirement of collateral security or a corporate surety bond
43.24as described in section 118A.03. The board may compensate the depository, including
43.25paying a reasonable charge to the depository, maintaining appropriate compensating
43.26balances with the depository, or purchasing non-interest-bearing certificates of deposit
43.27from the depository for performing depository-related services.

43.28    Sec. 37. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
43.29    Subd. 5. Amount of matching grant. The amount of the matching grant for a
43.30beneficiary equals:
44.1    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
44.2of the contributions made to the beneficiary's account during the calendar year, not to
44.3exceed $300 $400; and
44.4    (2) if the beneficiary's family income is more than $50,000 but not more than
44.5$80,000, five ten percent of the sum of the contributions made to the beneficiary's account
44.6during the calendar year, not to exceed $300 $400.

44.7    Sec. 38. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE
44.8AT WORTHINGTON; YMCA LEASE AGREEMENT.
44.9    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter
44.10into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on
44.11the Minnesota West Community and Technical College at Worthington campus for the
44.12construction of a YMCA facility. The lease may also include the city of Worthington.
44.13    (b) Siting and design of the facility must be consistent with the college's master
44.14plan and Minnesota State Colleges and Universities' building standards. Minnesota
44.15West Community and Technical College may negotiate for use of the facility for college
44.16purposes. The lease must contain a provision that the lease shall terminate if the improved
44.17property is no longer used for the partial benefit of the students at the Worthington campus.

44.18    Sec. 39. INTEREST RATE SWAP AND OTHER AGREEMENTS;
44.19IMPLEMENTATION PLAN.
44.20    The Minnesota Office of Higher Education must develop a plan for implementing
44.21interest rate exchanges, swaps, or other interest rate protection agreements for its student
44.22loan programs. The plan must be presented in a report to the committees of legislature
44.23responsible for higher education finance by January 15, 2008. The report must address
44.24potential contracting arrangements and options, benefits and risks associated with these
44.25agreements, and the potential impacts on the student loan program, its assets, and its
44.26objectives.

44.27    Sec. 40. REPEALER.
44.28(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6;
44.29135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.
44.30(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.

45.1ARTICLE 4
45.2TEXTBOOK PRICING AND ACCESS

45.3    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.
45.4    Subdivision 1. Short title. This section may be cited as the Textbook Disclosure,
45.5Pricing, and Access Act.
45.6    Subd. 2. Purpose and intent. The purpose of this act is to ensure that every student
45.7in higher education is offered better and more timely access to affordable course materials
45.8by educating and informing faculty, students, administrators, institutions, bookstores, and
45.9publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the
45.10policy of the state of Minnesota that all involved parties must work together to identify
45.11ways to decrease the cost of course materials for students while protecting the academic
45.12freedom of faculty members to provide high-quality course materials for students.
45.13    Subd. 3. Definitions. For the purposes of this section, the following definitions
45.14have the meanings given.
45.15    (1) "Bundled" means any course material packaged together to be sold for one price.
45.16    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or
45.17has a contract with a postsecondary institution to sell course materials to students enrolled
45.18at the postsecondary institution.
45.19    (3) "Course material" means textbooks as defined in section 297A.67, subdivision
45.2013, custom course materials, and instructional materials as defined in section 297A.67,
45.21subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.
45.22    (4) "Custom course materials" means any combination of textbooks, course
45.23materials, or any part thereof that has been customized, produced, and sold by a distributor
45.24or publisher specifically for a specific course, program, or field of study.
45.25    (5) "Distributor" means an independent contractor, including its employees or agents,
45.26that is in the business of selling, distributing, advertising, marketing, or maintaining an
45.27inventory of course materials for a postsecondary institution or bookstore.
45.28    (6) "Postsecondary institution" means a Minnesota institution defined under section
45.29136A.101, subdivision 4.
45.30    (7) "Publisher" means a publishing house, firm, or business, including its employees
45.31or agents, acting with authority of the publisher that publishes, sells, markets, or maintains
45.32an inventory of course materials to a postsecondary institution or bookstore.
45.33    Subd. 4. Publisher disclosures. (a) Beginning January 1, 2008, a publisher or
45.34distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty
46.1member or other individual at a postsecondary institution responsible for selecting course
46.2material within seven days of a request, at least the following:
46.3    (1) the title, edition, author, and International Standard Book Number (ISBN) of all
46.4course material and custom course materials, if applicable;
46.5    (2) the price for the course material;
46.6    (3) whether the required course material is bundled with optional material, whether
46.7it can be unbundled, and the price for each bundled and unbundled component;
46.8    (4) whether the material is available in an alternative format and the cost for the
46.9alternatively formatted material; and
46.10    (5) summary of revisions to requested course material for the previous edition or
46.11release for materials that have been in circulation for five years or less and a detailed
46.12breakdown of revisions must be made available in writing within seven days of the request.
46.13    (b) A publisher or distributor must make all bundled course materials available to
46.14bookstores or postsecondary institutions in an unbundled form or provide written or verbal
46.15notice within seven days of a request under this subdivision if the unbundled materials are
46.16not available.
46.17    (c) A publisher or distributor must post on its Web site, include in its marketing
46.18materials, or disclose in writing when a request is made under this subdivision for the
46.19return policy for course material, including any penalties or conditions for returns.
46.20    (d) Disclosure under this section is not required for mass market and trade books that
46.21are not published, marketed, or sold primarily for use in or by postsecondary institutions.
46.22    Subd. 5. Payment for course material. Each postsecondary institution must adopt
46.23policies that allow students to add the costs of course material purchased at a bookstore
46.24to existing waivers or payment plans for tuition and fees.
46.25    Subd. 6. Notice to purchase. (a) An instructor shall make reasonable efforts to
46.26notify a bookstore of the final order for required and recommended course material
46.27including, but not limited to, alternative formats, previous editions, or custom course
46.28materials at least 30 days prior to the commencement of the term.
46.29    (b) The bookstore must notify students of the following information concerning the
46.30required and recommended course material at least 15 days prior to the commencement of
46.31the term for which the course material is required, including, but not limited to:
46.32    (1) the title, edition, author, and International Standard Book Number (ISBN) of
46.33the course material;
46.34    (2) the price for the course material;
46.35    (3) whether the required course material is bundled with optional material, whether
46.36it can be unbundled, and the price for each bundled and unbundled component; and
47.1    (4) whether the material is available in an alternative format and the cost for the
47.2alternatively formatted material.
47.3    Subd. 7. Educational strategies. (a) During the biennium ending June 30, 2009,
47.4the Minnesota Office of Higher Education shall work with postsecondary institutions
47.5to develop educational materials based upon the findings of the Minnesota Textbook
47.6Advisory Task Force recommendations and other relevant information, convene and
47.7sponsor meetings and workshops, and provide educational materials for faculty, students,
47.8administrators, institutions, bookstores, and publishers in order to educate all interested
47.9parties on strategies for reducing the costs of course materials for students attending
47.10postsecondary institutions.
47.11    (b) The Minnesota Office of Higher Education must develop and maintain a
47.12standardized request form for publisher disclosure under this section with all required
47.13information. The request form must be in an electronic format that can be downloaded
47.14from the office Web site.

47.15ARTICLE 5
47.16PRIVATE INSTITUTIONS

47.17    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:
47.18136A.61 POLICY.
47.19    The legislature has found and hereby declares that the availability of legitimate
47.20courses and programs leading to academic degrees offered by responsible private not for
47.21profit and for profit institutions of postsecondary education and the existence of legitimate
47.22private colleges and universities are in the best interests of the people of this state. The
47.23legislature has found and declares that the state can provide assistance and protection
47.24for persons choosing private institutions and programs, by establishing policies and
47.25procedures to assure the authenticity and legitimacy of private postsecondary education
47.26institutions and programs. The legislature has also found and declares that this same
47.27policy applies to any private and public postsecondary educational institution located in
47.28another state or country which offers or makes available to a Minnesota resident any
47.29course, program or educational activity which does not require the leaving of the state
47.30for its completion.

47.31    Sec. 2. [136A.615] CITATION.
47.32    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
47.33Out-of-State Public Postsecondary Education Act."

48.1    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
48.2    Subd. 3. School. "School" means:
48.3    (1) any individual, partnership, company, firm, society, trust, association,
48.4corporation, or any combination thereof, which (a) (i) is, owns, or operates a private,
48.5nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for
48.6profit postsecondary education institution; (iii) provides a postsecondary instructional
48.7program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or
48.8operates a private, postsecondary education institution which uses the term "college",
48.9"academy", "institute" or "university" in its name; or (d) operates for profit and provides
48.10programs or courses which are intended to allow an individual to fulfill in part or totally
48.11the requirements necessary to maintain a license to practice an occupation. School shall
48.12also mean
48.13    (2) any public postsecondary educational institution located in another state or
48.14country which offers or makes available to a Minnesota resident any course, program or
48.15educational activity which does not require the leaving of the state for its completion; or
48.16    (3) any individual, entity, or postsecondary institution located in another state
48.17that contracts with any school located within the state of Minnesota for the purpose of
48.18providing educational programs, training programs, or awarding postsecondary credits
48.19or continuing education credits to Minnesota residents that may be applied to a degree
48.20program.

48.21    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:
48.22136A.63 REGISTRATION.
48.23    Subdivision 1. Annual registration. All schools located within Minnesota and
48.24all schools located outside Minnesota which offer degree programs or courses within
48.25Minnesota shall register annually with the office.
48.26    Subd. 2. Sale of an institution. Within 30 days of a change of ownership the school
48.27must submit a registration renewal application, all usual and ordinary information and
48.28materials for an initial registration, and applicable registration fees for a new institution.
48.29For purposes of this subdivision, "change of ownership" means a merger or consolidation
48.30with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
48.31the assets of a school; the transfer of a controlling interest of at least 51 percent of the
48.32school's stock; or a change in the not-for-profit or for profit status of a school.

48.33    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:
48.34136A.64 INFORMATION REQUIRED FOR REGISTRATION.
49.1    Subdivision 1. Schools to provide information. As a basis for registration, schools
49.2shall provide the office with such information as the office needs to determine the nature
49.3and activities of the school, including but not limited to, requirements for admission,
49.4enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty
49.5employed. The office shall have the authority to verify the accuracy of the information
49.6submitted to it by inspection or any other means it deems necessary. the following which
49.7shall be accompanied by an affidavit attesting to its accuracy and truthfulness:
49.8    (1) articles of incorporation, constitution, bylaws, or other operating documents;
49.9    (2) a duly adopted statement of the school's mission and goals;
49.10    (3) evidence of current school or program licenses granted by departments or
49.11agencies of any state;
49.12    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
49.13past fiscal year including any management letters provided by the independent auditor
49.14or, if the school is a public institution outside Minnesota, an income statement for the
49.15immediate past fiscal year;
49.16    (5) all current promotional and recruitment materials and advertisements; and
49.17    (6) the current school catalog and, if not contained in the catalog:
49.18    (i) the members of the board of trustees or directors, if any;
49.19    (ii) the current institutional officers;
49.20    (iii) current full-time and part-time faculty with degrees held or applicable
49.21experience;
49.22    (iv) a description of all school facilities;
49.23    (v) a description of all current course offerings;
49.24    (vi) all requirements for satisfactory completion of courses, programs, and degrees;
49.25    (vii) the school's policy about freedom or limitation of expression and inquiry;
49.26    (viii) a current schedule of fees, charges for tuition, required supplies, student
49.27activities, housing, and all other standard charges;
49.28    (ix) the school's policy about refunds and adjustments;
49.29    (x) the school's policy about granting credit for prior education, training, and
49.30experience; and
49.31    (xi) the school's policies about student admission, evaluation, suspension, and
49.32dismissal.
49.33    Subd. 2. Financial records. The office shall not disclose financial records or
49.34accreditation reports provided to it by a school pursuant to this section except for the
49.35purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its
50.1decision to approve or not to approve the granting of degrees or the use of a name by the
50.2school. Section 15.17, subdivision 4, shall not apply to such records.
50.3    Subd. 3. Additional information. If the office is unable to determine the nature
50.4and activities of a school on the basis of the information in subdivision 1, the office shall
50.5notify the school of additional information needed.
50.6    Subd. 4. Verification of information. The office may verify the accuracy of
50.7submitted information by inspection, visitation, or any other means it considers necessary.
50.8    Subd. 5. Public information. All information submitted to the office is public
50.9information except financial and accreditation records and information. The office may
50.10disclose financial records or information to defend its decision to approve or disapprove
50.11granting of degrees or the use of a name or its decisions to revoke the approval at a hearing
50.12under chapter 14 or other legal proceedings.
50.13    Subd. 6. Late registration penalty. Applications for renewal for any registration
50.14received after the deadline date specified in the renewal materials provided by the office
50.15are subject to a late fee equal to 20 percent of the annual registration renewal fee.
50.16    Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs
50.17associated with a site evaluation visit outside Minnesota if the visit is necessary under
50.18section 136A.64, subdivision 1 or 3.

50.19    Sec. 6. [136A.645] SCHOOL CLOSURE.
50.20    (a) When a school decides to cease postsecondary education operations, or if its
50.21registration is refused, revoked, or suspended it must cooperate with the office in assisting
50.22students to find alternative means to complete their studies with a minimum of disruption,
50.23and inform the office of the following:
50.24    (1) the planned date for termination of postsecondary education operations;
50.25    (2) the planned date for the transfer of the student records;
50.26    (3) confirmation of the name and address of the organization to receive and hold
50.27the student records; and
50.28    (4) the official at the organization receiving the student records who is designated to
50.29provide official copies of records or transcripts upon request.
50.30    (b) Upon notice from a school of its intention to cease operations, or if a school's
50.31registration is revoked, refused, or suspended, the office shall notify the school of the date
50.32on which it must cease the enrollment of students and all postsecondary educational
50.33operations.

50.34    Sec. 7. [136A.646] ADDITIONAL SECURITY.
51.1    In the event any registered institution is notified by the United States Department
51.2of Education that it has fallen below minimum financial standards and that its continued
51.3participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
51.4Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
51.5Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
51.6institution shall provide a surety bond conditioned upon the faithful performance of all
51.7contracts and agreements with students in a sum equal to the "letter of credit" required by
51.8the United States Department of Education in the Letter of Credit Alternative, but in no
51.9event shall such bond be less than $10,000 and not more than $250,000.

51.10    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:
51.11136A.65 APPROVAL OF DEGREES AND NAME.
51.12    Subdivision 1. Prohibition. No school subject to registration shall grant a degree
51.13unless such degree is and its underlying curriculum are approved by the office, nor
51.14shall any school subject to registration use the name "college," "academy," "institute" or
51.15"university" in its name without approval by the office.
51.16    Subd. 1a. Accreditation; requirement. A school must not be registered or
51.17authorized to offer any degree at any level unless the school is accredited by an agency
51.18recognized by the United States Department of Education for purposes of eligibility to
51.19participate in Title IV federal financial aid programs. Any registered school undergoing
51.20institutional accreditation shall inform the office of site visits by the accrediting agency
51.21and provide office staff the opportunity to attend the visits, including any exit interviews.
51.22The institution must provide the office with a copy of the final report upon receipt.
51.23    Subd. 2. Procedures. The office shall establish procedures for approval, including
51.24notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not
51.25granted. If a hearing is requested, no disapproval shall take effect until after such hearing.
51.26    Subd. 3. Application. A school subject to registration shall be granted approval to
51.27use the term "college," "academy," "institute" or "university" in its name whether or not it
51.28offers a program leading to a degree, if it was organized, operating and using such term in
51.29its name on or before August 1, 1975, and if it meets the other policies and standards for
51.30approval established by the office.
51.31    Subd. 4. Criteria for approval. (a) A school applying to be registered and to have
51.32its degree or degrees and name approved must substantially meet the following criteria:
51.33    (1) the school has an organizational framework with administrative and teaching
51.34personnel to provide the educational programs offered;
52.1    (2) the school has financial resources sufficient to meet the school's financial
52.2obligations, including refunding tuition and other charges consistent with its stated policy
52.3if the institution is dissolved, or if claims for refunds are made, to provide service to the
52.4students as promised, and to provide educational programs leading to degrees as offered;
52.5    (3) the school operates in conformity with generally accepted budgeting and
52.6accounting procedures, such as the standards adopted by the National Association of
52.7College and University Business Officers, located at 1 Dupont Circle, Washington, D.C.,
52.820036;
52.9    (4) the school provides an educational program leading to the degree it offers;
52.10    (5) the school provides appropriate and accessible library, laboratory, and other
52.11physical facilities to support the educational program offered;
52.12    (6) the school has a policy on freedom or limitation of expression and inquiry for
52.13faculty and students which is published or available on request;
52.14    (7) the school uses only publications and advertisements which are truthful and do
52.15not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
52.16school, its personnel, programs, services, or occupational opportunities for its graduates
52.17for promotion and student recruitment;
52.18    (8) the school's compensated recruiting agents who are operating in Minnesota
52.19identify themselves as agents of the school when talking to or corresponding with students
52.20and prospective students; and
52.21    (9) the school provides information to students and prospective students concerning:
52.22    (i) comprehensive and accurate policies relating to student admission, evaluation,
52.23suspension, and dismissal;
52.24    (ii) clear and accurate policies relating to granting credit for prior education, training,
52.25and experience and for courses offered by the school;
52.26    (iii) current schedules of fees, charges for tuition, required supplies, student
52.27activities, housing, and all other standard charges;
52.28    (iv) policies regarding refunds and adjustments for withdrawal or modification
52.29of enrollment status; and
52.30    (v) procedures and standards used for selection of recipients and the terms of
52.31payment and repayment for any financial aid program.
52.32    (b) An application for degree approval must also include:
52.33    (i) title of degree and formal recognition awarded;
52.34    (ii) location where such degree will be offered;
52.35    (iii) proposed implementation date of the degree;
52.36    (iv) admissions requirements for the degree;
53.1    (v) length of the degree;
53.2    (vi) projected enrollment for a period of five years;
53.3    (vii) the curriculum required for the degree, including course syllabi or outlines;
53.4    (viii) statement of academic and administrative mechanisms planned for monitoring
53.5the quality of the proposed degree;
53.6    (ix) statement of satisfaction of professional licensure criteria, if applicable;
53.7    (x) documentation of the availability of clinical, internship, externship, or practicum
53.8sites, if applicable; and
53.9    (xi) statement of how the degree fulfills the institution's mission and goals,
53.10complements existing degrees, and contributes to the school's viability.
53.11    Subd. 5. Requirements for degree approval. For each degree a school offers to a
53.12student, where the student does not leave Minnesota for the major portion of the program
53.13or course leading to the degree, the school must have:
53.14    (1) qualified teaching personnel to provide the educational programs for each degree
53.15for which approval is sought;
53.16    (2) appropriate educational programs leading to each degree for which approval
53.17is sought;
53.18    (3) appropriate and accessible library, laboratory, and other physical facilities to
53.19support the educational program for each degree for which approval is sought; and
53.20    (4) a rationale showing that degree programs are consistent with the school's mission
53.21and goals.
53.22    Subd. 6. Name. A school may use the term "academy" or "institute" in its name
53.23without meeting any additional requirements. A school may use the term "college" in its
53.24name if it offers at least one program leading to an associate degree. A school may use
53.25the term "university" in its name if it offers at least one program leading to a master's
53.26or doctorate degree.
53.27    Subd. 7. Grandfathered names. Names used before August 1, 2007, by a school,
53.28organized, operating, and using the term "academy," "institute," "college," or "university"
53.29in its name on or before August 1, 2007, may continue using such term whether or not it
53.30offers a program leading to a degree.
53.31    Subd. 8. Conditional approval. The office may grant conditional approval for a
53.32degree or use of a term in its name for a period of less than one year if doing so would be
53.33in the best interests of currently enrolled students or prospective students.
53.34    Subd. 9. Disapproval of registration appeal. If a school's degree or use of a term
53.35in its name is disapproved by the office, the school may request a hearing under chapter
54.114. The request must be in writing and made to the office within 30 days of the date
54.2the school is notified of the disapproval.
54.3    (a) The office may refuse to renew, revoke, or suspend registration, approval of
54.4a school's degree, or use of a regulated term in its name by giving written notice and
54.5reasons to the school. The school may request a hearing under chapter 14. If a hearing is
54.6requested, no revocation or suspension shall take effect until after the hearing.
54.7    (b) Reasons for revocation or suspension of registration or approval may be for one
54.8or more of the following reasons:
54.9    (1) violating the provisions of sections 136A.615 to 136A.71;
54.10    (2) providing false, misleading, or incomplete information to the office;
54.11    (3) presenting information about the school which is false, fraudulent, misleading,
54.12deceptive, or inaccurate in a material respect to prospective students; or
54.13    (4) refusing to allow reasonable inspection or to supply reasonable information after
54.14a written request by the office has been received.

54.15    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:
54.16136A.653 EXEMPTIONS.
54.17    Subdivision 1. Exemption. A school that is subject to licensing by the office under
54.18chapter 141, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
54.19The determination of the office as to whether a particular school is subject to regulation
54.20under chapter 141 is final for the purposes of this exemption.
54.21    Subd. 2. Educational program; nonprofit organizations. Educational programs
54.22which are sponsored by a bona fide and nonprofit trade, labor, business, professional
54.23or fraternal organization, which programs are conducted solely for that organization's
54.24membership or for the members of the particular industries or professions served by that
54.25organization, and which are not available to the public on a fee basis, are exempted from
54.26the provisions of sections 136A.61 136A.615 to 136A.71.
54.27    Subd. 3. Educational program; business firms. Educational programs which are
54.28sponsored by a business firm for the training of its employees or the employees of other
54.29business firms with which it has contracted to provide educational services at no cost to the
54.30employees are exempted from the provisions of sections 136A.61 136A.615 to 136A.71.
54.31    Subd. 4. Voluntary submission. Any school or program exempted from the
54.32provisions of sections 136A.61 136A.615 to 136A.71 by the provisions of this section
54.33may voluntarily submit to the provisions of those sections.

55.1    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:
55.2136A.657 EXEMPTION; RELIGIOUS SCHOOLS.
55.3    Subdivision 1. Exemption. Any school or any department or branch of a school (a)
55.4which is substantially owned, operated or supported by a bona fide church or religious
55.5organization; (b) whose programs are primarily designed for, aimed at and attended by
55.6persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
55.7church or religious organization; and (c) whose programs are primarily intended to prepare
55.8its students to become ministers of, to enter into some other vocation closely related to, or
55.9to conduct their lives in consonance with, the particular faith of that church or religious
55.10organization, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71.
55.11    Subd. 2. Limitation. This exemption shall not extend to any school or to any
55.12department or branch of a school which through advertisements or solicitations represents
55.13to any students or prospective students that the school, its aims, goals, missions or
55.14purposes or its programs are different from those described in subdivision 1. This
55.15exemption shall not extend to any school which represents to any student or prospective
55.16student that the major purpose of its programs is to prepare the student for a vocation not
55.17closely related to that particular religious faith, or to provide the student with a general
55.18educational program recognized by other schools or the broader educational, business or
55.19social community as being substantially equivalent to the educational programs offered
55.20by schools or departments or branches of schools which are not exempt from sections
55.21136A.61 136A.615 to 136A.71, and rules adopted pursuant thereto.
55.22    Subd. 3. Scope. Nothing in sections 136A.61 136A.615 to 136A.71, or the rules
55.23adopted pursuant thereto, shall be interpreted as permitting the office to determine the
55.24truth or falsity of any particular set of religious beliefs.
55.25    Subd. 4. Statement required; religious nature. Any degree awarded upon
55.26completion of a religiously exempt program shall include descriptive language to make
55.27the religious nature of the award clear.

55.28    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:
55.29136A.66 LIST.
55.30    The office shall maintain a list of schools registered institutions authorized to grant
55.31degrees and schools authorized to use the name "college," "academy," "institute" or
55.32"university," and shall make such list available to the public.

56.1    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:
56.2136A.67 UNAUTHORIZED REPRESENTATIONS.
56.3    No school and none of its officials or employees shall advertise or represent in any
56.4manner that such school is approved or accredited by the office or state of Minnesota
56.5except that any A school which is duly registered with the office, or any of its officials or
56.6employees, may represent in advertising and shall disclose in catalogues, applications,
56.7and enrollment materials that the school is registered with the office. by prominently
56.8displaying the following statement: "(Name of school) is registered as a private institution
56.9with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71.
56.10Registration is not an endorsement of the institution. Credits earned at the institution
56.11may not transfer to all other institutions."

56.12    Sec. 13. [136A.675] RISK ANALYSIS.
56.13    The office shall develop a set of financial and programmatic evaluation metrics to
56.14aid in the detection of the failure or potential failure of a school to meet the standards
56.15established under sections 136A.61 to 136A.71. These metrics shall include indicators
56.16of financial stability, changes in the senior management or the financial aid and senior
56.17administrative staff of an institution, changes in enrollment, changes in program offerings,
56.18and changes in faculty staffing patterns. The development of financial standards shall use
56.19industry standards as benchmarks. The development of the nonfinancial standards shall
56.20include a measure of trends and dramatic changes in trends or practice. The agency must
56.21specify the metrics and standards for each area and provide a copy to each registered
56.22institution and post them on the agency Web site. The agency shall use regularly reported
56.23data submitted to the federal government or other regulatory or accreditation agencies
56.24wherever possible. The agency may require more frequent data reporting by an institution
56.25to ascertain whether the standards are being met.

56.26    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:
56.27136A.68 RECORDS.
56.28    After August 1, 1975, all schools located in this state must maintain permanent
56.29records of all students enrolled therein at any time. The office may require schools to
56.30provide a plan acceptable to the office for preserving all such records for at least ten years.
56.31The office may require that such plan include the filing of a continuous surety bond or a
56.32deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
56.33records after such school ceases to exist. A registered school shall maintain a permanent
56.34record for each student for 50 years from the last date of the student's attendance. A
57.1registered school offering distance instruction to a student located in Minnesota shall
57.2maintain a permanent record for each Minnesota student for 50 years from the last date of
57.3the student's attendance. Records include a student's academic transcript, documents, and
57.4files containing student data about academic credits earned, courses completed, grades
57.5awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
57.6school shall submit a plan that meets the following requirements:
57.7    (1) at least one copy of the records must be held in a secure, fireproof depository
57.8or duplicate records must be maintained off site in a secure location and in a manner
57.9approved by the office;
57.10    (2) an appropriate official must be designated to provide a student with copies of
57.11records or a transcript upon request;
57.12    (3) an alternative method approved by the office of complying with clauses (1) and
57.13(2) must be established if the school ceases to exist; and
57.14    (4) if the school has no binding agreement approved by the office for preserving
57.15student records, a continuous surety bond must be filed with the office in an amount not to
57.16exceed $20,000. The bond shall run to the state of Minnesota.

57.17    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:
57.18136A.69 FEES.
57.19    Subdivision 1. Registration fees. The office shall collect reasonable registration
57.20fees that are sufficient to recover, but do not exceed, its costs of administering the
57.21registration program. The office shall charge $1,100 for initial registration fees and $950
57.22for annual renewal fees.
57.23    Subd. 2. Degree level addition fee. The office processing fee for adding a degree
57.24level to an existing program is $2,000 per program.
57.25    Subd. 3. Program addition fee. The office processing fee for adding a program
57.26that represents a significant departure in the objectives, content, or method of delivery of
57.27programs that are currently offered by the school is $500 per program.
57.28    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
57.29or outside consultant is necessary to review or evaluate any new or revised program, the
57.30office shall be reimbursed for the expenses incurred related to the review as follows:
57.31    (1) $300 for the team base fee or for a paper review conducted by a consultant if the
57.32office determines that a fact-finding visit is not required;
57.33    (2) $300 for each day or part thereof on site per team member; and
57.34    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
57.35by team members.
58.1    Subd. 5. Modification fee. The fee for modification of any existing program is
58.2$100 and is due if there is:
58.3    (1) an increase or decrease of 25 percent or more from the original date of program
58.4approval, in clock hours, credit hours, or calendar length of an existing program;
58.5    (2) a change in academic measurement from clock hours to credit hours or vice
58.6versa; or
58.7    (3) an addition or alteration of courses that represent a 25 percent change or more in
58.8the objectives, content, or methods of delivery.

58.9    Sec. 16. [136A.705] PENALTY.
58.10    The director may assess fines for violations of a provision of sections 136A.615 to
58.11136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71
58.12shall be a separate violation and fines shall not exceed $500 per day per violation.
58.13Amounts received under this section must be deposited in the special revenue fund and
58.14are appropriated in fiscal years 2008 and 2009 for the purposes in sections 136A.615 to
58.15136A.71.

58.16    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:
58.17136A.71 INJUNCTION.
58.18    Upon application of the attorney general the district courts shall have jurisdiction to
58.19enjoin any violations of sections 136A.61 136A.615 to 136A.71.

58.20    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
58.21    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or
58.22"office" means the Minnesota Office of Higher Education.

58.23    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
58.24    Subd. 5. School. "School" means any person, within or outside the state, who
58.25maintains, advertises, administers, solicits for, or conducts any program for profit at
58.26any less than an associate degree level other than baccalaureate or graduate programs,
58.27and is not specifically exempted by sections 141.21 to and is not registered as a private
58.28institution under sections 136A.615 to 136A.71 and is not specifically exempted by
58.29section 141.35 or 141.37.

58.30    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
59.1    Subdivision 1. Required. A school must not maintain, advertise, solicit for,
59.2administer, or conduct any program in Minnesota without first obtaining a license from
59.3the office.

59.4    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
59.5    Subd. 5. Bond. (a) No license shall be issued to any school which maintains,
59.6conducts, solicits for, or advertises within the state of Minnesota any program, unless the
59.7applicant files with the office a continuous corporate surety bond written by a company
59.8authorized to do business in Minnesota conditioned upon the faithful performance of all
59.9contracts and agreements with students made by the applicant.
59.10    (b) The amount of the surety bond shall be ten percent of the preceding year's gross
59.11income from student tuition, fees, and other required institutional charges, but in no event
59.12less than $10,000 nor greater than $250,000, except that a school may deposit a greater
59.13amount at its own discretion. A school in each annual application for licensure must
59.14compute the amount of the surety bond and verify that the amount of the surety bond
59.15complies with this subdivision, unless the school maintains a surety bond equal to at least
59.16$250,000. A school that operates at two or more locations may combine gross income
59.17from student tuition, fees, and other required institutional charges for all locations for the
59.18purpose of determining the annual surety bond requirement. The gross tuition and fees
59.19used to determine the amount of the surety bond required for a school having a license for
59.20the sole purpose of recruiting students in Minnesota shall be only that paid to the school
59.21by the students recruited from Minnesota.
59.22    (c) The bond shall run to the state of Minnesota and to any person who may have a
59.23cause of action against the applicant arising at any time after the bond is filed and before it
59.24is canceled for breach of any contract or agreement made by the applicant with any student.
59.25The aggregate liability of the surety for all breaches of the conditions of the bond shall not
59.26exceed the principal sum deposited by the school under paragraph (b). The surety of any
59.27bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
59.28of liability for any breach of condition occurring after the effective date of cancellation.
59.29    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a
59.30sum equal to the amount of the required surety bond in cash, or securities as may be
59.31legally purchased by savings banks or for trust funds in an aggregate market value equal
59.32to the amount of the required surety bond.
59.33    (e) Failure of a school to post and maintain the required surety bond or deposit under
59.34paragraph (d) may shall result in denial, suspension, or revocation of the school's license.

60.1    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
60.2    Subd. 7. Minimum standards. A license shall be issued if the office first
60.3determines:
60.4    (1) that the applicant has a sound financial condition with sufficient resources
60.5available to:
60.6    (i) meet the school's financial obligations;
60.7    (ii) refund all tuition and other charges, within a reasonable period of time, in the
60.8event of dissolution of the school or in the event of any justifiable claims for refund against
60.9the school by the student body;
60.10    (iii) provide adequate service to its students and prospective students; and
60.11    (iv) maintain and support the school;
60.12    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
60.13and the necessary number of work stations to prepare adequately the students currently
60.14enrolled, and those proposed to be enrolled;
60.15    (3) that the applicant employs a sufficient number of qualified teaching personnel to
60.16provide the educational programs contemplated;
60.17    (4) that the school has an organizational framework with administrative and
60.18instructional personnel to provide the programs and services it intends to offer;
60.19    (5) that the premises and conditions under which the students work and study are
60.20sanitary, healthful, and safe, according to modern standards;
60.21    (6) that the quality and content of each occupational course or program of study
60.22provides education and adequate preparation to enrolled students for entry level positions
60.23in the occupation for which prepared;
60.24    (7) that the living quarters which are owned, maintained, recommended, or approved
60.25by the applicant for students are sanitary and safe;
60.26    (8) that the contract or enrollment agreement used by the school complies with
60.27the provisions in section 141.265;
60.28    (9) that contracts and agreements do not contain a wage assignment provision or a
60.29confession of judgment clause; and
60.30    (10) that there has been no adjudication of fraud or misrepresentation in any
60.31criminal, civil, or administrative proceeding in any jurisdiction against the school or its
60.32owner, officers, agents, or sponsoring organization.

60.33    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
61.1    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to
61.2a school, the school shall furnish to the office a catalog, brochure, or electronic display
61.3including:
61.4    (1) identifying data, such as volume number and date of publication;
61.5    (2) name and address of the school and its governing body and officials;
61.6    (3) a calendar of the school showing legal holidays, beginning and ending dates of
61.7each course quarter, term, or semester, and other important dates;
61.8    (4) the school policy and regulations on enrollment including dates and specific
61.9entrance requirements for each program;
61.10    (5) the school policy and regulations about leave, absences, class cuts, make-up
61.11work, tardiness, and interruptions for unsatisfactory attendance;
61.12    (6) the school policy and regulations about standards of progress for the student
61.13including the grading system of the school, the minimum grades considered satisfactory,
61.14conditions for interruption for unsatisfactory grades or progress, a description of any
61.15probationary period allowed by the school, and conditions of reentrance for those
61.16dismissed for unsatisfactory progress;
61.17    (7) the school policy and regulations about student conduct and conditions for
61.18dismissal for unsatisfactory conduct;
61.19    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
61.20activities, laboratory fees, service charges, rentals, deposits, and all other charges;
61.21    (9) the school policy and regulations, including an explanation of section 141.271,
61.22about refunding tuition, fees, and other charges if the student does not enter the program,
61.23withdraws from the program, or the program is discontinued;
61.24    (10) a description of the available facilities and equipment;
61.25    (11) a course outline syllabus for each course offered showing course objectives,
61.26subjects or units in the course, type of work or skill to be learned, and approximate time,
61.27hours, or credits to be spent on each subject or unit;
61.28    (12) the school policy and regulations about granting credit for previous education
61.29and preparation;
61.30    (13) a notice to students relating to the transferability of any credits earned at the
61.31school to other institutions;
61.32    (14) a procedure for investigating and resolving student complaints; and
61.33    (14) (15) the name and address of the Minnesota Office of Higher Education.
61.34    A school that is exclusively a distance education school is exempt from clauses
61.35(3) and (5).

62.1    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
62.2    Subd. 10. Placement records. (a) Before a license is issued reissued to a school
62.3that offers, advertises or implies a placement service, the school shall file with the office
62.4for the past year and thereafter at reasonable intervals determined by the office, a certified
62.5copy of the school's placement record, containing a list of graduates, a description of their
62.6jobs, names of their employers, and other information as the office may prescribe.
62.7    (b) Each school that offers a placement service shall furnish to each prospective
62.8student, upon request, prior to enrollment, written information concerning the percentage
62.9of the previous year's graduates who were placed in the occupation for which prepared or
62.10in related employment.

62.11    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
62.12    Subd. 12. Permanent records. A school licensed under this chapter and located
62.13in Minnesota shall maintain a permanent record for each student for 50 years from the
62.14last date of the student's attendance. A school licensed under this chapter and offering
62.15distance instruction to a student located in Minnesota shall maintain a permanent record
62.16for each Minnesota student for 50 years from the last date of the student's attendance.
62.17Records include school transcripts, documents, and files containing student data about
62.18academic credits earned, courses completed, grades awarded, degrees awarded, and
62.19periods of attendance. To preserve permanent records, a school shall submit a plan that
62.20meets the following requirements:
62.21    (1) at least one copy of the records must be held in a secure, fireproof depository;
62.22    (2) an appropriate official must be designated to provide a student with copies of
62.23records or a transcript upon request;
62.24    (3) an alternative method, approved by the office, of complying with clauses (1) and
62.25(2) must be established if the school ceases to exist; and
62.26    (4) a continuous surety bond must be filed with the office in an amount not to exceed
62.27$20,000 if the school has no binding agreement approved by the office, for preserving
62.28student records or a trust must be arranged if the school ceases to exist. The bond shall run
62.29to the state of Minnesota.

62.30    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
62.31    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
62.32renewal licensure application is:
62.33    (1) for a category A school, as determined by the office, the fee is $865 if the school
62.34offers one program or $1,150 if the school offers two or more programs; and
63.1    (2) for a category B or C school, as determined by the office, the fee is $430 if the
63.2school offers one program or $575 if the school offers two or more programs.
63.3    (b) If a license renewal application is not received by the office by the close of
63.4business at least 60 days before the expiration of the current license, a late fee of $100
63.5per business day, not to exceed $3,000, shall be assessed.

63.6    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
63.7    Subd. 2. Contract information. A contract or enrollment agreement used by a
63.8school must include at least the following:
63.9    (1) the name and address of the school, clearly stated;
63.10    (2) a clear and conspicuous disclosure that the agreement is a legally binding
63.11instrument upon written acceptance of the student by the school unless canceled under
63.12section 141.271;
63.13    (3) the school's cancellation and refund policy that shall be clearly and conspicuously
63.14entitled "Buyer's Right to Cancel";
63.15    (4) a clear statement of total cost of the program including tuition and all other
63.16charges;
63.17    (5) the name and description of the program, including the number of hours or
63.18credits of classroom instruction, or distance instruction, that shall be included; and
63.19    (6) a clear and conspicuous explanation of the form and means of notice the student
63.20should use in the event the student elects to cancel the contract or sale, the effective
63.21date of cancellation, and the name and address of the seller to which the notice should
63.22be sent or delivered.
63.23The contract or enrollment agreement must not include a wage assignment provision or a
63.24confession of judgment clause.

63.25    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
63.26    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place
63.27on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
63.28carried, it shall occur on the date the notice is delivered to the school. If a student has not
63.29attended classes class for a period of 21 consecutive days without contacting the school to
63.30indicate an intent to continue in school or otherwise making arrangements concerning the
63.31absence, the student is considered to have withdrawn from school for all purposes as of
63.32the student's last documented date of attendance.

63.33    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
64.1    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any
64.2promissory instrument received as payment of tuition or other charge prior to completion
64.3of 50 percent of the program., except that prior to that time, instruments may be transferred
64.4by assignment to purchasers who shall be subject to all defenses available against the
64.5school named as payee.

64.6    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
64.7    Subdivision 1. Not to advertise state approval Disclosure required. Schools,
64.8agents of schools, and solicitors may not advertise or represent in writing or orally that
64.9such school is approved or accredited by the state of Minnesota, except that any A
64.10school, agent, or solicitor may advertise represent in advertisements and shall disclose
64.11in catalogues, applications, and enrollment materials that the school and solicitor have
64.12been is duly licensed by the state using by prominently displaying the following language
64.13statement:
64.14"(Name of school) is licensed as a private career school with the Minnesota Office of
64.15Higher Education. Licensure is not an endorsement of the institution. Credits earned at the
64.16institution may not transfer to all other institutions. The educational programs may not
64.17meet the needs of every student or employer."

64.18    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:
64.19141.32 PENALTY.
64.20    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
64.21to comply with this chapter shall be a separate violation. The office shall adopt rules
64.22establishing a list of civil penalties and the fine associated with each violation. Fines for
64.23violations shall not exceed $500 per day per violation. The director may assess fines for
64.24violations of a provision of this chapter. Each day's failure to comply with a provision
64.25of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed
64.26$500 per day per violation. Amounts received under this section must be deposited in the
64.27special revenue fund and are appropriated in fiscal years 2008 and 2009 for the purposes
64.28of this chapter.

64.29    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:
64.30141.35 EXEMPTIONS.
64.31    Sections 141.21 to 141.35 141.32 shall not apply to the following:
64.32    (1) public postsecondary institutions;
65.1    (2) private postsecondary institutions registered under sections 136A.61 136A.615
65.2to 136A.71 that are nonprofit, or that are for profit and registered under sections 136A.61
65.3to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate
65.4or postbaccalaureate programs;
65.5    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
65.6public board of another state or foreign country;
65.7    (4) private schools complying with the requirements of section 120A.22, subdivision
65.84
;
65.9    (5) courses taught to students in a valid apprenticeship program taught by or
65.10required by a trade union;
65.11    (6) schools exclusively engaged in training physically or mentally disabled persons
65.12for the state of Minnesota;
65.13    (7) schools licensed by boards authorized under Minnesota law to issue licenses;
65.14    (8) schools and educational programs, or training programs, contracted for by
65.15persons, firms, corporations, government agencies, or associations, for the training of their
65.16own employees, for which no fee is charged the employee;
65.17    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
65.18or remedial subjects as determined by the office;
65.19    (10) driver training schools and instructors as defined in section 171.33, subdivisions
65.201 and 2
;
65.21    (11) classes, courses, or programs conducted by a bona fide trade, professional, or
65.22fraternal organization, solely for that organization's membership;
65.23    (12) (11) programs in the fine arts provided by organizations exempt from taxation
65.24under section 290.05 and registered with the attorney general under chapter 309. For
65.25the purposes of this clause, "fine arts" means activities resulting in artistic creation or
65.26artistic performance of works of the imagination which are engaged in for the primary
65.27purpose of creative expression rather than commercial sale or employment. In making
65.28this determination the office may seek the advice and recommendation of the Minnesota
65.29Board of the Arts;
65.30    (13) (12) classes, courses, or programs intended to fulfill the continuing education
65.31requirements for licensure or certification in a profession, that have been approved by
65.32a legislatively or judicially established board or agency responsible for regulating the
65.33practice of the profession, and that are offered exclusively to an individual practicing
65.34the profession;
66.1    (14) (13) classes, courses, or programs intended to prepare students to sit for
66.2undergraduate, graduate, postgraduate, or occupational licensing and occupational
66.3entrance examinations;
66.4    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of
66.5instruction that are not part of the curriculum for an occupation or entry level employment;
66.6    (16) (15) classes, courses, or programs providing instruction in personal
66.7development, modeling, or acting;
66.8    (17) (16) training or instructional programs, in which one instructor teaches an
66.9individual student, that are not part of the curriculum for an occupation or are not intended
66.10to prepare a person for entry level employment; and
66.11    (18) (17) schools with no physical presence in Minnesota, as determined by the
66.12office, engaged exclusively in offering distance instruction that are located in and
66.13regulated by other states or jurisdictions.

66.14    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
66.15    Subdivision 1. Exemption. Any school or any department or branch of a school:
66.16    (1) which is substantially owned, operated, or supported by a bona fide church
66.17or religious organization;
66.18    (2) whose programs are primarily designed for, aimed at, and attended by persons
66.19who sincerely hold or seek to learn the particular religious faith or beliefs of that church or
66.20religious organization; and
66.21    (3) whose programs are primarily intended to prepare its students to become
66.22ministers of, to enter into some other vocation closely related to, or to conduct their lives
66.23in consonance with the particular faith of that church or religious organization,
66.24is exempt from the provisions of sections 141.21 to 141.32.
66.25    Subd. 2. Limitations. (a) An exemption shall not extend to any school, department
66.26or branch of a school, or program of a school which through advertisements or solicitations
66.27represents to any students or prospective students that the school, its aims, goals, missions,
66.28purposes, or programs are different from those described in subdivision 1.
66.29    (b) An exemption shall not extend to any school which represents to any student or
66.30prospective student that the major purpose of its programs is to:
66.31    (1) prepare the student for a vocation not closely related to that particular religious
66.32faith; or
66.33    (2) provide the student with a general educational program recognized by other
66.34schools or the broader educational, business, or social community as being substantially
66.35equivalent to the educational programs offered by schools or departments or branches of
67.1schools which are not religious in nature and are not exempt from chapter 141 and from
67.2rules adopted pursuant under this chapter.
67.3    Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be
67.4interpreted as permitting the office to determine the truth or falsity of any particular set
67.5of religious beliefs.
67.6    Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other
67.7formal recognition awarded upon completion of any religiously exempt program shall
67.8include such descriptive language as to make the religious nature of the award clear.

67.9    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.
67.10    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71,
67.11shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes,
67.12chapter 141, that qualify for private institution registration after July 1, 2007, shall apply
67.13for and complete the process for registration prior to the expiration of their current private
67.14career school license. Schools currently registered as private institutions pursuant to
67.15Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private
67.16career school license after August 1, 2007, shall apply for and complete the process for
67.17licensure prior to the expiration of the current registration, but in any event no later than
67.18December 31, 2007. The office is authorized to extend existing license or registration for a
67.19reasonable period of time to allow for the completion of the new processes when necessary.