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HF 3448

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 04/15/2010 01:13pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/08/2010
1st Engrossment Posted on 04/15/2010
Committee Engrossments
1st Committee Engrossment Posted on 04/12/2010

Current Version - 1st Engrossment

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A bill for an act
relating to higher education; authorizing data matching; modifying institution
eligibility; establishing award procedures; establishing a grant program;
modifying security requirements; requiring certain notice; establishing a
central system office; modifying bonding limits; authorizing bonding authority
transfer; providing for certain refunds; requiring certain studies and reports;
governing credit transfers; requiring system office streamlining; providing
postretirement premium reimbursement; establishing pilot projects; making
technical corrections; requesting certain public education; defining and clarifying
terms; governing appropriation reductions; amending Minnesota Statutes
2008, sections 135A.15, subdivision 1; 135A.155; 135A.51, subdivision 2;
136A.101, subdivision 10; 136A.121, subdivision 6; 136A.126, by adding
a subdivision; 136A.15, subdivision 6; 136A.16, subdivision 14; 136A.62,
subdivision 3; 136A.645; 136A.646; 141.25, subdivisions 7, 13, by adding a
subdivision; 141.251, subdivision 2; 141.28, subdivision 2; 474A.04, subdivision
6; 474A.091, subdivision 3; Minnesota Statutes 2009 Supplement, sections
136A.01, subdivision 2; 136A.101, subdivision 4; 136F.98, subdivision 1; Laws
2010, chapter 215, article 2, sections 4, subdivision 3; 6; proposing coding for
new law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota
Statutes 2009 Supplement, section 136A.121, subdivision 9b.

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

Section 1.

Minnesota Statutes 2008, section 135A.15, subdivision 1, is amended to
read:


Subdivision 1.

Policy required.

The Board of Trustees of the Minnesota State
Colleges and Universities shall, and the University of Minnesota is requested to, adopt
a clear, understandable written policy on sexual harassment and sexual violence that
informs victims of their rights under the crime victims bill of rights, including the right to
assistance from the Crime Victims Reparations Board and the commissioner of public
safety. The policy must apply to students and employees and must provide information
about their rights and duties. The policy must apply to criminal incidents occurring on
property owned by the postsecondary system or institution in which the victim is a
student or employee of that system or institution. It must include procedures for reporting
incidents of sexual harassment or sexual violence and for disciplinary actions against
violators. During student registration, each technical college, community college, or state
university shall, and the University of Minnesota is requested to, provide each student with
information regarding its policy. A copy of the policy also shall be posted at appropriate
locations on campus at all times. Each private postsecondary institution that is an eligible
institution as defined in section deleted text begin136A.101, subdivision 4deleted text endnew text begin 136A.155new text end, must adopt a policy
that meets the requirements of this section.

Sec. 2.

Minnesota Statutes 2008, section 135A.155, is amended to read:


135A.155 HAZING POLICY.

The board of trustees of the Minnesota State Colleges and Universities shall, and
the University of Minnesota is requested to, adopt a clear, understandable written policy
on student conduct, including hazing. The policy must include procedures for reporting
incidents of inappropriate hazing and for disciplinary actions against individual violators
and organizations. The policy shall be made available to students by appropriate means as
determined by each institution, which may include publication in a student handbook or
other institutional publication, or posting by electronic display on the Internet, and shall
be posted at appropriate locations on campus. A private postsecondary institution that
is an eligible institution as defined in section deleted text begin136A.101, subdivision 4deleted text endnew text begin 136A.155new text end, must
adopt a policy that meets the requirements of this section.

Sec. 3.

Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read:


Subd. 2.

Senior citizen.

"Senior citizen" means a person who has reached deleted text begin62deleted text endnew text begin 66new text end
years of age before the beginning of any term, semester or quarter, in which a course of
study is pursued, or a person receiving a railroad retirement annuity who has reached 60
years of age before the beginning of the term.

Sec. 4.

Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is
amended to read:


Subd. 2.

Responsibilities.

new text begin(a) new text endThe Minnesota Office of Higher Education is
responsible for:

(1) necessary state level administration of financial aid programs, including
accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate
and career schools, under sections 136A.61 to 136A.71 and chapter 141;

(3) negotiating and administering reciprocity agreements;

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

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

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

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

new text begin (b) The office is authorized to match individual student data from the student record
enrollment database with individual student financial aid data collected and maintained
by the office in order to audit or evaluate federal or state supported education programs
as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal
Regulations, title 34, section 99.35. The office may match data from the following
financial aid program databases with data from the student record enrollment database:
tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary
child care grant; the American Indian Scholarship; and the achieve scholarship. The office
shall conduct the study in a manner that does not permit personal identification of parents
or students by individuals other than representatives of the office.
new text end

Sec. 5.

Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is
amended to read:


Subd. 4.

Eligible institution.

"Eligible institution" means deleted text begina postsecondary
educational institution located in this state or in a state with which the office has entered
into a higher education reciprocity agreement on state student aid programs that (1) is
operated by this state or the Board of Regents of the University of Minnesota, or (2)
is operated privately and, as determined by the office, meets all of the following: (i)
maintains academic standards substantially equivalent to those of comparable institutions
operated in this state; (ii) is licensed or registered as a postsecondary institution by the
office or another state agency; and (iii) by July 1, 2013, is participating in the federal
Pell Grant program under Title IV of the Higher Education Act of 1965, as amended
deleted text endnew text begin an
institution that meets the eligibility requirements under section 136A.103
new text end.

Sec. 6.

Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read:


Subd. 10.

Satisfactory academic progress.

"Satisfactory academic progress"
means deleted text beginthat:deleted text endnew text begin satisfactory academic progress as defined under Code of Federal Regulations,
title 34, sections 668.16(e), 668.32(f), and 668.34.
new text end

deleted text begin (1) by the end of a student's second academic year of attendance at an institution, the
student has at least a cumulative grade point average of C or its equivalent, or academic
standing consistent with the institution's graduation requirements; and
deleted text end

deleted text begin (2) by the end of the first term of the third and fourth academic year of attendance,
the student has a cumulative grade point average of at least a C or its equivalent.
deleted text end

Sec. 7.

new text begin [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS.
new text end

new text begin (a) A postsecondary institution is eligible for state student aid under chapter 136A
and sections 197.791 and 299A.45, if the institution is located in this state or in a state
with which the office has entered into a higher education reciprocity agreement on state
student aid programs that:
new text end

new text begin (1) is operated by this state or the Board of Regents of the University of Minnesota;
or
new text end

new text begin (2) is operated privately and, as determined by the office, meets the requirements of
paragraph (b).
new text end

new text begin (b) A private institution must:
new text end

new text begin (1) maintain academic standards substantially equivalent to those of comparable
institutions operated in this state;
new text end

new text begin (2) be licensed or registered as a postsecondary institution by the office; and
new text end

new text begin (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
the Higher Education Act of 1965, as amended; or
new text end

new text begin (ii) if an institution was participating in state student aid programs as of June 30,
2010, and the institution did not participate in the federal Pell Grant program by June 30,
2010, the institution must require every student who enrolls to sign a disclosure form,
provided by the office, stating that the institution is not participating in the federal Pell
Grant program.
new text end

new text begin (c) An institution that offers only graduate-level degrees or graduate-level nondegree
programs, or that offers only degrees or programs that do not meet the required minimum
program length to participate in the federal Pell Grant program, is an eligible institution if
the institution is licensed or registered as a postsecondary institution by the office.
new text end

new text begin (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
ownership as defined in section 136A.63, subdivision 2, must participate in the federal
Pell Grant program within four calendar years of the first ownership change to continue
eligibility.
new text end

new text begin (e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution.
new text end

Sec. 8.

Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:


Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of
allowances specified in law for living and miscellaneous expenses, and an allowance
for tuition and fees equal to the lesser of the average tuition and fees charged by the
institution, deleted text beginordeleted text end the tuition and fee maximums established in lawnew text begin, or for students at for-profit
institutions, the average tuition and fee amount for public two-year institutions for a
student in a two-year program or the average tuition and fee amount for a state university
for students in four-year programs
new text end.

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance to the actual number of credits for which the student is enrolled.

(c) The recognized cost of attendance for a student who is confined to a Minnesota
correctional institution shall consist of the tuition and fee component in paragraph (a),
with no allowance for living and miscellaneous expenses.

(d) For the purpose of this subdivision, "fees" include only those fees that are
mandatory and charged to full-time resident students attending the institution. Fees do
not include charges for tools, equipment, computers, or other similar materials where the
student retains ownership. Fees include charges for these materials if the institution retains
ownership. Fees do not include optional or punitive fees.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for grants made beginning on July
1, 2010.
new text end

Sec. 9.

Minnesota Statutes 2008, section 136A.126, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Awarding procedure. new text end

new text begin (a) Complete applications are ranked in order of
completion date. If there are multiple applications with identical completion dates, those
applications are further sorted by application receipt date.
new text end

new text begin (b) Awards must be made on a first-come, first-served basis in the order complete
applications are received.
new text end

new text begin (c) Awards are made to eligible students until the appropriation is expended.
new text end

new text begin (d) Applicants not receiving a grant and for whom the office has received a
completed application are placed on a waiting list in order of application completion date.
new text end

Sec. 10.

new text begin [136A.129] ONETIME GRANT FOR HIGH SCHOOL-TO-COLLEGE
DEVELOPMENTAL TRANSITION PROGRAM.
new text end

new text begin (a) Within the limits of appropriations, a student who enrolls in a program under
section 135A.61 is eligible for a onetime grant to help pay expenses to attend the program.
The amount of the grant must be determined according to section 136A.121, subdivision
5, except as modified by paragraph (b). The requirement in 136A.121, subdivision 9a,
that subtracts a federal Pell Grant award for which a student would be eligible, even if
the student has exhausted the federal Pell Grant award, does not apply to a student who
receives a grant under this subdivision in the award year in which the grant is received.
The maximum grant under this subdivision must be reduced by the average amount a
student would earn working in an on-campus work-study position for ten hours per
week during a summer term. The office must determine an amount for student earnings
in a summer term, using available data about earnings, before determining the amount
awarded under this subdivision.
new text end

new text begin (b) For a student with an expected family contribution of zero, the maximum amount
of the grant is the cost of attendance under section 136A.121, subdivision 6.
new text end

new text begin (c) A grant under this subdivision counts as one of the eight semesters of eligibility
under section 136A.121, subdivision 9. A grant under this subdivision must not be
awarded for the same term for which another grant is awarded under this section.
new text end

new text begin (d) Beginning in fiscal year 2012, up to $1,000,000 each year may be used for
grants under this section.
new text end

Sec. 11.

new text begin [136A.1291] LEGISLATIVE NOTICE.
new text end

new text begin The office shall notify the chairs of the legislative committees with primary
jurisdiction over higher education finance of any proposed material change to the
administration of any of the grant or financial aid programs in sections 136A.095 to
136A.128.
new text end

Sec. 12.

Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read:


Subd. 6.

Eligible institution.

"Eligible institution" means deleted text begina postsecondary
educational institution that (1) is operated or regulated by this state or the Board of Regents
of the University of Minnesota; (2) is operated publicly or privately in another state, is
approved by the United States Secretary of Education, and, as determined by the office,
maintains academic standards substantially equal to those of comparable institutions
operated in this state; (3) is licensed or registered as a postsecondary institution by the
office or another state agency; and (4) by July 1, 2011, is participating in the federal Pell
Grant program under Title IV of the Higher Education Act of 1965, as amended. It also
includes any institution chartered in a province
deleted text endnew text begin an institution that meets the eligibility
requirements under section 136A.155
new text end.

Sec. 13.

new text begin [136A.155] ADDITIONAL INSTITUTION ELIGIBILITY
REQUIREMENTS.
new text end

new text begin A postsecondary institution is an eligible institution for purposes of sections
136A.15 to 136A.1702, if the institution:
new text end

new text begin (1) meets the eligibility requirements under section 136A.103; or
new text end

new text begin (2) is operated publicly or privately in another state, is approved by the United States
Secretary of Education, and, as determined by the office, maintains academic standards
substantially equal to those of comparable institutions operated in this state.
new text end

Sec. 14.

Minnesota Statutes 2008, section 136A.16, subdivision 14, is amended to read:


Subd. 14.

Notes.

The office may sell at public or private sale, at the price or prices
determined by the office, any note or other instrument or obligation evidencing or securing
a loan made by the office or its predecessor, new text beginincluding new text endthe Minnesota Higher Education
Coordinating Boardnew text begin and the Minnesota Higher Education Services Officenew text end.

Sec. 15.

Minnesota Statutes 2008, section 136A.62, subdivision 3, is amended to read:


Subd. 3.

School.

"School" means:

(1) any partnership, company, firm, society, trust, association, corporation, or any
combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary
education institution; (ii) is, owns, or operates a private, for-profit postsecondary education
institution; or (iii) provides a postsecondary instructional program or course leading to a
degree whether or not for profit;

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

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

Sec. 16.

Minnesota Statutes 2008, section 136A.645, is amended to read:


136A.645 SCHOOL CLOSURE.

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

(1) the planned date for termination of postsecondary education operations;

(2) the planned date for the transfer of the student records;

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

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

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

new text begin Without limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:
new text end

new text begin (1) has an unscheduled nonemergency closure or cancellation of classes for more
than 24 hours without prior notice to the office;
new text end

new text begin (2) announces it is closed or closing; or
new text end

new text begin (3) files for bankruptcy.
new text end

Sec. 17.

Minnesota Statutes 2008, section 136A.646, is amended to read:


136A.646 ADDITIONAL SECURITY.

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

new text begin (b) In lieu of a bond, the institution may deposit with the commissioner of finance:
new text end

new text begin (1) a sum equal to the amount of the required surety bond in cash; or
new text end

new text begin (2) securities, as may be legally purchased by savings banks or for trust funds, in an
aggregate market value equal to the amount of the required surety bond.
new text end

Sec. 18.

new text begin [136F.08] CENTRAL SYSTEM OFFICE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A central system office is established for the
Minnesota State Colleges and Universities to provide central support to the institutions
enrolling students and to assist the board in fulfilling its missions under section 136F.05.
The central office must not assume responsibility for services that are most effectively
and efficiently provided at the institution level. The central system office is under the
direction of the chancellor.
new text end

new text begin Subd. 2. new text end

new text begin General duties. new text end

new text begin The central system office must coordinate system level
responsibilities for financial management, personnel management, facilities management,
information technology, credit transfer, legal affairs, government relations, and auditing.
The central system office shall coordinate its services with the services provided at the
institution level so as not to duplicate any functions that are provided by institutions.
new text end

Sec. 19.

Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is
amended to read:


Subdivision 1.

Issuance of bonds.

The Board of Trustees of the Minnesota State
Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
to 136F.97 whose aggregate principal amount at any time may not exceed deleted text begin$200,000,000deleted text endnew text begin
$275,000,000
new text end, and payable from the revenue appropriated to the fund established by
section 136F.94, and use the proceeds together with other public or private money that
may otherwise become available to acquire land, and to acquire, construct, complete,
remodel, and equip structures or portions thereof to be used for dormitory, residence hall,
student union, food service, parking purposes, or for any other similar revenue-producing
building or buildings of such type and character as the board finds desirable for the good
and benefit of the state colleges and universities. Before issuing the bonds or any part
of them, the board shall consult with and obtain the advisory recommendations of the
chairs of the house of representatives Ways and Means Committee and the senate Finance
Committee about the facilities to be financed by the bonds.

Sec. 20.

Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Refunds. new text end

new text begin If a contract is deemed unenforceable under subdivision 2, a
school must refund tuition, fees, and other charges received from a student or on behalf
of a student within 30 days of receiving written notification and demand for refund from
the Minnesota Office of Higher Education.
new text end

Sec. 21.

Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read:


Subd. 7.

Minimum standards.

A license shall be issued if the office first
determines:

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

(i) meet the school's financial obligations;

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

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

(iv) maintain and support the school;

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

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

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

(5) that the premises and conditions under which the students work and study are
sanitary, healthful, and safedeleted text begin, according to modern standardsdeleted text end;

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

(7) that the living quarters which are owned, maintained, recommended, or approved
by the applicant for students are sanitary and safe;

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

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

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

Sec. 22.

Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read:


Subd. 13.

Schools licensed by another state agency or board.

A school required
to obtain a private career school license due to the use of "academy," "institute," "college,"
or "university" in its name new text beginor licensed for the purpose of participating in state financial aid
under chapter 136A,
new text endand which is also licensed by another state agency or board shall be
required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7),
and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.

Sec. 23.

Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read:


Subd. 2.

Conditions.

The office shall adopt rules establishing the conditions for
renewal of a license. The conditions shall permit two levels of renewal based on the record
of the school. A school that has demonstrated the quality of its program and operation
through longevity and performance in the state may renew its license based on a relaxed
standard of scrutiny. A school that has been in operation in Minnesota for a limited period
of time or that has not performed adequately on performance indicators shall renew its
license based on a strict standard of scrutiny. The office shall specify minimum longevity
standards and performance indicators that must be met before a school may be permitted
to operate under the relaxed standard of scrutiny. The performance indicators used in this
determination shall include, but not be limited to: deleted text begindegree granting status,deleted text end regional or
national accreditation, loan default rates, placement rate of graduates, student withdrawal
rates, audit results, student complaints, and school status with the United States
Department of Education. Schools that meet the requirements established in rule shall be
required to submit a full relicensure report once every four years, and in the interim years
will be exempt from the requirements of section 141.25, subdivision 3, clauses (4), (5),
and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.

Sec. 24.

Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read:


Subd. 2.

Unlawful designation.

No school organized after November 15, 1969,
shall apply to itself either as a part of its name or in any other manner the designation of
"college" or "university" deleted text beginunless such school applies for and receives certification from the
office that it meets appropriate standards and is entitled to such designation
deleted text end. Operating
schools now using such designation may continue use thereof.

Sec. 25.

Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to read:


Subd. 6.

Entitlement transfers.

An entitlement issuer may enter into an agreement
with another entitlement issuer whereby the recipient entitlement issuer issues obligations
pursuant to bonding authority allocated to the original entitlement issuer under this
section. An entitlement issuer may enter into an agreement with an issuer which is not
an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to
$100,000 of which are issued pursuant to bonding authority allocated to the original
entitlement issuer under this section. The agreement may be approved and executed by the
mayor of the entitlement issuer with or without approval or review by the city council.new text begin
Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota
Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural
Finance Authority may transfer allocated bonding authority made available under this
chapter to one another under an agreement by each agency and the commissioner.
new text end

Sec. 26.

Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read:


Subd. 3.

Allocation procedure.

(a) The commissioner shall allocate available
bonding authority under this section on the Monday of every other week beginning with
the first Monday in August through and on the last Monday in November. Applications
for allocations must be received by the department by 4:30 p.m. on the Monday preceding
the Monday on which allocations are to be made. If a Monday falls on a holiday, the
allocation will be made or the applications must be received by the next business day
after the holiday.

(b) Prior to October 1, only the following applications shall be awarded allocations
from the unified pool. Allocations shall be awarded in the following order of priority:

(1) applications for residential rental project bonds;

(2) applications for small issue bonds for manufacturing projects; and

(3) applications for small issue bonds for agricultural development bond loan
projects.

(c) On the first Monday in October through the last Monday in November,
allocations shall be awarded from the unified pool in the following order of priority:

(1) applications for student loan bonds issued by or on behalf of the Minnesota
Office of Higher Education;

(2) applications for mortgage bonds;

(3) applications for public facility projects funded by public facility bonds;

(4) applications for small issue bonds for manufacturing projects;

(5) applications for small issue bonds for agricultural development bond loan
projects;

(6) applications for residential rental project bonds;

(7) applications for enterprise zone facility bonds;

(8) applications for governmental bonds; and

(9) applications for redevelopment bonds.

(d) If there are two or more applications for manufacturing projects from the
unified pool and there is insufficient bonding authority to provide allocations for all
manufacturing projects in any one allocation period, the available bonding authority shall
be awarded based on the number of points awarded a project under section 474A.045
with those projects receiving the greatest number of points receiving allocation first. If
two or more applications for manufacturing projects receive an equal amount of points,
available bonding authority shall be awarded by lot unless otherwise agreed to by the
respective issuers.

(e) If there are two or more applications for enterprise zone facility projects from
the unified pool and there is insufficient bonding authority to provide allocations for
all enterprise zone facility projects in any one allocation period, the available bonding
authority shall be awarded based on the number of points awarded a project under section
474A.045 with those projects receiving the greatest number of points receiving allocation
first. If two or more applications for enterprise zone facility projects receive an equal
amount of points, available bonding authority shall be awarded by lot unless otherwise
agreed to by the respective issuers.

(f) If there are two or more applications for residential rental projects from the
unified pool and there is insufficient bonding authority to provide allocations for all
residential rental projects in any one allocation period, the available bonding authority
shall be awarded in the following order of priority: (1) projects that preserve existing
federally subsidized housing; (2) projects that are not restricted to persons who are 55
years of age or older; and (3) other residential rental projects.

(g) From the first Monday in August through the last Monday in November,
$20,000,000 of bonding authority or an amount equal to the total annual amount of
bonding authority allocated to the small issue pool under section 474A.03, subdivision 1,
less the amount allocated to issuers from the small issue pool for that year, whichever is
less, is reserved within the unified pool for small issue bonds to the extent such amounts
are available within the unified pool.

(h) The total amount of allocations for mortgage bonds from the housing pool and
the unified pool may not exceed:

(1) $10,000,000 for any one city; or

(2) $20,000,000 for any number of cities in any one county.

(i) The total amount of allocations for student loan bonds from the unified pool may
not exceed deleted text begin$10,000,000deleted text endnew text begin $25,000,000new text end per year.

(j) If there is insufficient bonding authority to fund all projects within any qualified
bond category other than enterprise zone facility projects, manufacturing projects, and
residential rental projects, allocations shall be awarded by lot unless otherwise agreed to
by the respective issuers.

(k) If an application is rejected, the commissioner must notify the applicant and
return the application deposit to the applicant within 30 days unless the applicant requests
in writing that the application be resubmitted.

(l) The granting of an allocation of bonding authority under this section must be
evidenced by issuance of a certificate of allocation.

Sec. 27.

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


Subd. 3.

Operations and Maintenance

-0-
(9,967,000)

For fiscal years 2012 and 2013, the base for
operations and maintenance is deleted text begin$592,792,000deleted text endnew text begin
$580,802,000
new text end each year.

Sec. 28.

Laws 2010, chapter 215, article 2, section 6, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective the day following final enactmentnew text begin,
for grant awards beginning July 1, 2010
new text end.

Sec. 29. new text beginSTUDY OF CERTIFICATES AND DIPLOMAS; EDUCATIONAL
CAREER PATH.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities, in
conjunction with the Minnesota Chamber of Commerce, representatives of industry
groups, and labor unions, shall study the program requirements for certificates and
diplomas awarded by the Minnesota State Colleges and Universities to determine the
feasibility of designing technical education programs to allow students to have more
opportunities to earn credentials with lower credit requirements that could be combined
into higher level certificates or diplomas. The study must consult with business and
industry representatives as well as labor unions and faculty on the types of credentials that
would be recognized for employment purposes. In addition, the study must address the
feasibility of increasing the capacity to accumulate credentials in related programs into
an educational career path leading to a diploma or degree. The study must also address
the need for workers in other fields and take into account other job training programs
provided by labor unions and business.
new text end

new text begin The board must report the study findings to the committees of the legislature with
responsibility for postsecondary education finance by February 15, 2011.
new text end

Sec. 30. new text beginSTREAMLINED MINNESOTA STATE COLLEGES AND
UNIVERSITIES SYSTEM OFFICE.
new text end

new text begin Notwithstanding any law or policy to the contrary, the Board of Trustees of the
Minnesota State Colleges and Universities shall streamline services provided through
the system's central service office to reduce expenditures, better target the use of state
resources, and provide services at the most appropriate and efficient level so as not
to duplicate any services provided at the institutional level. These actions must be
implemented so as to achieve budgetary savings and efficiencies in delivery of services
and the accomplishment of the academic mission. The board must revise any board
policies in a way that is consistent with the requirements of this section.
new text end

Sec. 31. new text beginCREDIT TRANSFER; MINNESOTA STATE COLLEGES AND
UNIVERSITIES.
new text end

new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities must
develop and implement a plan to improve credit transfers within the system. At a
minimum, the board must:
new text end

new text begin (1) enhance the availability of easily used information on transferring and tracking
credits;
new text end

new text begin (2) improve training for all staff involved with credit transfer;
new text end

new text begin (3) identify barriers to transferring credits including intellectual property issues for
faculty and devise methods to eliminate these barriers; and
new text end

new text begin (4) identify discrepancies in the treatment of transferring and accepting credits
by various institutions within the system and devise methods to improve the uniform
treatment of credit transfers.
new text end

new text begin (b) The board must convene working groups of affected faculty, staff, and
administrators representing institutions and academic and technical disciplines in the
system to work on issues and barriers to credit transfer. The purpose of the working
groups is to develop specific actions that will remove any barriers to credit transfer and to
improve the ease and transparency of credit transfer for students.
new text end

new text begin (c) The board must report to the legislature by January 15, 2012, on the plans for and
progress towards improvements in the transfer of credits. Any proposal to develop and
implement a mandatory or voluntary common course numbering system for the Minnesota
State Colleges and Universities must not be required until after the receipt of the report
under this section.
new text end

Sec. 32. new text beginPOSTRETIREMENT HEALTH INSURANCE PREMIUM
REIMBURSEMENT.
new text end

new text begin The Minnesota State Colleges and Universities system shall waive premium
reimbursement payments including any late payment charges, fees, penalties, or interest
payments imposed on overdue health insurance premium reimbursements owed by a
college retiree to the college under a contractual or collective bargaining agreement
providing for postretirement health insurance benefits arising from employment under
a contract or collective bargaining agreement with a school district or technical college
prior to July 1, 1995, and who became an employee of Minnesota State Colleges and
Universities on July 1, 1995. This section applies only if the college has failed to bill
the retiree for the premium reimbursement payments as required under the applicable
collective bargaining or contractual agreement, or if not otherwise established, within 90
days following the date on which the premium was due.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end

Sec. 33. new text beginPILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF
MINNESOTA STATE COLLEGES AND UNIVERSITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin To increase the distribution of potential economic
benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and
Universities, a pilot project is established to transfer certain reserve deposits of selected
institutions from the state treasury to a community financial institution. Notwithstanding
Minnesota Statutes, section 16A.27, by December 31, 2010, the commissioner of
management and budget shall transfer the designated amount of board-required reserve
funds of colleges and universities selected by the Board of Trustees under subdivision
2, to a community financial institution designated for each of the participating colleges
and universities.
new text end

new text begin Subd. 2. new text end

new text begin Participating colleges and universities. new text end

new text begin By August 15, 2010, colleges
and universities must apply to the Board of Trustees of the Minnesota State Colleges and
Universities for participation in the pilot project. Each applicant must designate one or
more community financial institutions for the deposit of board-required reserves with the
terms of the deposit for each designated community financial institution. The designated
community financial institution must be located in the geographic area of a participating
campus. From the applicants, the board shall select up to eight postsecondary institutions
to participate in the local deposit pilot project. In making its selection, the board must
consider the size of the institution's reserves and the terms offered by the designated
community financial institutions. Two-year and four-year institutions must be selected
to participate in the pilot project and the majority of the selected institutions must be
located in greater Minnesota.
new text end

new text begin By December 1, 2010, the board must notify the commissioner of management
and budget of the participating colleges and universities and the associated community
financial institutions.
new text end

new text begin Subd. 3. new text end

new text begin Community financial institution. new text end

new text begin As used in this section, "community
financial institution" means a federally insured bank or credit union, chartered as a bank
or credit union by the state of Minnesota or the United States, that is headquartered in
Minnesota and that has no more than $2,500,000,000 in assets.
new text end

new text begin Subd. 4. new text end

new text begin Evaluation and report. new text end

new text begin The commissioner of management and budget and
the Board of Trustees shall independently evaluate the effectiveness or harm of the local
deposit pilot project in increasing the use of community financial institutions and providing
wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
evaluation must include the participating colleges, universities, and community financial
institutions. The commissioner and the board shall report the results of the pilot project
evaluation to the appropriate committees of the legislature by December 1, 2011, with
recommendations on the future implementation of the pilot project.
new text end

Sec. 34. new text beginNANOTECHNOLOGY REPORT.
new text end

new text begin By February 1, 2011, the Board of Regents of the University of Minnesota and
the Board of Trustees of the Minnesota State Colleges and Universities shall study
nanotechnology research and education and report to the committees of the legislature
with responsibility for higher education, economic development, environment, and
public health on the ethical issues and the principles for nanotechnology research and
development and education they utilize in their institutions and nanotechnology initiatives.
The report must assess ways they ensure that nanotechnology is used responsibly through
standards and guidelines that protect public health and the environment and provide for
occupational health and safety.
new text end

Sec. 35. new text beginSURGICAL TECHNOLOGISTS PILOT PROJECT.
new text end

new text begin Subdivision 1. new text end

new text begin Surgical technologists; training and employment pilot project.
new text end

new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities shall establish
a pilot project to develop partnerships and training and employment opportunities for
surgical technologists. The pilot project must develop partnerships between a health care
facility located within 25 miles of an accredited surgical technologist program offered by a
Minnesota State Colleges and Universities institution and the institution. The partnerships
must promote the employment and retention of the services of individuals to perform
surgical technology tasks or functions who have successfully completed an accredited
educational program for surgical technologists and who hold and maintain a certified
surgical technician credential from a nationally recognized surgical technologist certifying
body accredited by the National Commission for Certifying Agencies and recognized by
the American College of Surgeons and the Association of Surgical Technologists.
new text end

new text begin (b) Nothing in this section prohibits:
new text end

new text begin (1) a participating health care facility from continuing the employment of an
individual who is employed to practice surgical technology in that health care facility on
the effective date of this section;
new text end

new text begin (2) any licensed practitioner from performing surgical technology tasks or functions
if the individual is acting within the scope of that practitioner's license;
new text end

new text begin (3) any student in training to be licensed as a health care practitioner from performing
surgical technology tasks or functions if under the supervision of a licensed physician; or
new text end

new text begin (4) any participating health care facility from employing or retaining the services of
an individual to perform tasks listed in this subdivision, provided the individual maintains
a certified surgical assistant credential from the National Surgical Assistant Association.
new text end

new text begin (c) This subdivision expires June 30, 2014.
new text end

new text begin Subd. 2. new text end

new text begin Report. new text end

new text begin Surgical technologist training programs of the Minnesota State
Colleges and Universities must cooperate with hospitals to assure that graduates meet
the standards set by hospitals for surgical technologists providing services to surgical
patients. The board of trustees shall report on the pilot project under this section to the
appropriate legislative chairs by January 1, 2013, with recommendations to enhance
surgical technologist training and to assure an adequate supply of surgical technologist
graduates to meet the needs of facilities.
new text end

Sec. 36. new text beginAPPROPRIATION REDUCTIONS.
new text end

new text begin Any reduction in appropriations for the biennium ending June 30, 2011, for the
central system office of the Minnesota State Colleges and Universities must not be passed
through to any institution or campus. The Board of Trustees of the Minnesota State
Colleges and Universities must not charge any institution for appropriation reductions
made to the central office.
new text end

Sec. 37. new text beginUNIVERSITY MAYO PARTNERSHIP.
new text end

new text begin Any reductions to the University of Minnesota for operations and maintenance
in fiscal year 2011 must not be allocated to the University of Minnesota and Mayo
Foundation Partnership.
new text end

Sec. 38. new text beginFEDERAL HEALTH CARE REFORM.
new text end

new text begin The regents of the University of Minnesota are requested to direct the University
of Minnesota Extension Service to conduct public education related to the provisions
of federal health care reform legislation, as enacted under the Patient Protection and
Affordable Care Act (Public Law No. 111-148) and the Health Care and Education
Reconciliation Act (Public Law No. 111-152), and the potential benefits of federal health
care reform to Minnesota citizens, employers, and health care providers.
new text end

Sec. 39. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9b, new text end new text begin is repealed.
new text end