<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to higher education; clarifying data disclosure provisions; authorizing <br />
         		<a id="pl.1.3"></a><var>1.3</var>data matching; modifying institution eligibility; establishing award procedures; <br />
         		<a id="pl.1.4"></a><var>1.4</var>modifying fees; modifying security requirements; requiring certain notice; <br />
         		<a id="pl.1.5"></a><var>1.5</var>establishing a central system office; governing credit transfers; requiring <br />
         		<a id="pl.1.6"></a><var>1.6</var>system office streamlining; providing postretirement premium reimbursement; <br />
         		<a id="pl.1.7"></a><var>1.7</var>establishing a pilot project; making technical corrections; defining and clarifying <br />
         		<a id="pl.1.8"></a><var>1.8</var>terms; governing appropriation reductions;amending Minnesota Statutes 2008, <br />
         		<a id="pl.1.9"></a><var>1.9</var>sections 13.32, subdivision 3; 135A.51, subdivision 2; 136A.101, subdivision <br />
         		<a id="pl.1.10"></a><var>1.10</var>10; 136A.126, by adding a subdivision; 136A.15, subdivision 6; 136A.16, <br />
         		<a id="pl.1.11"></a><var>1.11</var>subdivision 14; 136A.62, subdivision 3; 136A.645; 136A.646; 136A.69, <br />
         		<a id="pl.1.12"></a><var>1.12</var>subdivisions 1, 3, 4; 141.25, subdivisions 7, 13, by adding a subdivision; <br />
         		<a id="pl.1.13"></a><var>1.13</var>141.251, subdivision 2; 141.255; 141.28, subdivision 2; Minnesota Statutes 2009 <br />
         		<a id="pl.1.14"></a><var>1.14</var>Supplement, sections 136A.01, subdivision 2; 136A.101, subdivision 4; Laws <br />
         		<a id="pl.1.15"></a><var>1.15</var>2009, chapter 95, article 1, section 3, subdivision 21; proposing coding for new <br />
         		<a id="pl.1.16"></a><var>1.16</var>law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota Statutes <br />
         		<a id="pl.1.17"></a><var>1.17</var>2008, section 136A.1701, subdivision 5.<br />
         		<a id="pl.1.18"></a><var>1.18</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.19"></a><var>1.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 13.32, subdivision 3, is amended to read:<br />
         		<a id="pl.1.20"></a><var>1.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3.  <b>Private data; when disclosure is permitted.</b> Except as provided in <br />
         		<a id="pl.1.21"></a><var>1.21</var>subdivision 5, educational data is private data on individuals and shall not be disclosed <br />
         		<a id="pl.1.22"></a><var>1.22</var>except as follows: <br />
         		<a id="pl.1.23"></a><var>1.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) pursuant to section 
         <statute_ref>13.05</statute_ref>; <br />
         		<a id="pl.1.24"></a><var>1.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) pursuant to a valid court order; <br />
         		<a id="pl.1.25"></a><var>1.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) pursuant to a statute specifically authorizing access to the private data; <br />
         		<a id="pl.1.26"></a><var>1.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) to disclose information in health, including mental health, and safety emergencies <br />
         		<a id="pl.1.27"></a><var>1.27</var>pursuant to the provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code <br />
         		<a id="pl.1.28"></a><var>1.28</var>of Federal Regulations, title 34, section 
         <statute_ref>99.36</statute_ref>; <br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1), <br />
         		<a id="pl.2.2"></a><var>2.2</var>(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3), (b)(6), (b)(7), and (i), and Code of Federal <br />
         		<a id="pl.2.3"></a><var>2.3</var>Regulations, title 34, sections 
         <statute_ref>99.31</statute_ref>, 
         <statute_ref>99.32</statute_ref>, 
         <statute_ref>99.33</statute_ref>, 
         <statute_ref>99.34</statute_ref>, 
         <statute_ref>99.35</statute_ref>, and 
         <statute_ref>99.39</statute_ref>; <br />
         		<a id="pl.2.4"></a><var>2.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) to appropriate health authorities to the extent necessary to administer <br />
         		<a id="pl.2.5"></a><var>2.5</var>immunization programs and for bona fide epidemiologic investigations which the <br />
         		<a id="pl.2.6"></a><var>2.6</var>commissioner of health determines are necessary to prevent disease or disability to <br />
         		<a id="pl.2.7"></a><var>2.7</var>individuals in the public educational agency or institution in which the investigation <br />
         		<a id="pl.2.8"></a><var>2.8</var>is being conducted; <br />
         		<a id="pl.2.9"></a><var>2.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) when disclosure is required for institutions that participate in a program under <br />
         		<a id="pl.2.10"></a><var>2.10</var>title IV of the Higher Education Act, United States Code, title 20, section 1092; <br />
         		<a id="pl.2.11"></a><var>2.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) to the appropriate school district officials to the extent necessary under <br />
         		<a id="pl.2.12"></a><var>2.12</var>subdivision 6, annually to indicate the extent and content of remedial instruction, including <br />
         		<a id="pl.2.13"></a><var>2.13</var>the results of assessment testing and academic performance at a postsecondary institution <br />
         		<a id="pl.2.14"></a><var>2.14</var>during the previous academic year by a student who graduated from a Minnesota school <br />
         		<a id="pl.2.15"></a><var>2.15</var>district within two years before receiving the remedial instruction; <br />
         		<a id="pl.2.16"></a><var>2.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) to appropriate authorities as provided in United States Code, title 20, section <br />
         		<a id="pl.2.17"></a><var>2.17</var>1232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the <br />
         		<a id="pl.2.18"></a><var>2.18</var>system to effectively serve, prior to adjudication, the student whose records are released; <br />
         		<a id="pl.2.19"></a><var>2.19</var>provided that the authorities to whom the data are released submit a written request for <br />
         		<a id="pl.2.20"></a><var>2.20</var>the data that certifies that the data will not be disclosed to any other person except as <br />
         		<a id="pl.2.21"></a><var>2.21</var>authorized by law without the written consent of the parent of the student and the request <br />
         		<a id="pl.2.22"></a><var>2.22</var>and a record of the release are maintained in the student's file; <br />
         		<a id="pl.2.23"></a><var>2.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) to volunteers who are determined to have a legitimate educational interest in <br />
         		<a id="pl.2.24"></a><var>2.24</var>the data and who are conducting activities and events sponsored by or endorsed by the <br />
         		<a id="pl.2.25"></a><var>2.25</var>educational agency or institution for students or former students; <br />
         		<a id="pl.2.26"></a><var>2.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(k) to provide student recruiting information, from educational data held by colleges <br />
         		<a id="pl.2.27"></a><var>2.27</var>and universities, as required by and subject to Code of Federal Regulations, title 32, <br />
         		<a id="pl.2.28"></a><var>2.28</var>section 216; <br />
         		<a id="pl.2.29"></a><var>2.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(l) to the juvenile justice system if information about the behavior of a student who <br />
         		<a id="pl.2.30"></a><var>2.30</var>poses a risk of harm is reasonably necessary to protect the health or safety of the student <br />
         		<a id="pl.2.31"></a><var>2.31</var>or other individuals; <br />
         		<a id="pl.2.32"></a><var>2.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(m) with respect to Social Security numbers of students in the adult basic education <br />
         		<a id="pl.2.33"></a><var>2.33</var>system, to Minnesota State Colleges and Universities and the Department of Employment <br />
         		<a id="pl.2.34"></a><var>2.34</var>and Economic Development for the purpose and in the manner described in section <br />
         		
         <statute_ref><a id="pl.2.35"></a><var>2.35</var>124D.52, subdivision 7
         </statute_ref>; <br />
         		<a id="pl.3.1"></a><var>3.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(n) to the commissioner of education for purposes of an assessment or investigation <br />
         		<a id="pl.3.2"></a><var>3.2</var>of a report of alleged maltreatment of a student as mandated by section 
         <statute_ref>626.556</statute_ref>. Upon <br />
         		<a id="pl.3.3"></a><var>3.3</var>request by the commissioner of education, data that are relevant to a report of maltreatment <br />
         		<a id="pl.3.4"></a><var>3.4</var>and are from charter school and school district investigations of alleged maltreatment of a <br />
         		<a id="pl.3.5"></a><var>3.5</var>student must be disclosed to the commissioner, including, but not limited to, the following: <br />
         		<a id="pl.3.6"></a><var>3.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) information regarding the student alleged to have been maltreated; <br />
         		<a id="pl.3.7"></a><var>3.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) information regarding student and employee witnesses; <br />
         		<a id="pl.3.8"></a><var>3.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) information regarding the alleged perpetrator; and <br />
         		<a id="pl.3.9"></a><var>3.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) what corrective or protective action was taken, if any, by the school facility in <br />
         		<a id="pl.3.10"></a><var>3.10</var>response to a report of maltreatment by an employee or agent of the school or school <br />
         		<a id="pl.3.11"></a><var>3.11</var>district; <br />
         		<a id="pl.3.12"></a><var>3.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(o) when the disclosure is of the final results of a disciplinary proceeding on a charge <br />
         		<a id="pl.3.13"></a><var>3.13</var>of a crime of violence or nonforcible sex offense to the extent authorized under United <br />
         		<a id="pl.3.14"></a><var>3.14</var>States Code, title 20, section 1232g(b)(6)(A) and (B) and Code of Federal Regulations, <br />
         		<a id="pl.3.15"></a><var>3.15</var>title 34, sections 
         <statute_ref>99.31</statute_ref>(a)(13) and (14); <br />
         		<a id="pl.3.16"></a><var>3.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(p) when the disclosure is information provided to the institution under United States <br />
         		<a id="pl.3.17"></a><var>3.17</var>Code, title 42, section 14071, concerning registered sex offenders to the extent authorized <br />
         		<a id="pl.3.18"></a><var>3.18</var>under United States Code, title 20, section 1232g(b)(7); or <br />
         		<a id="pl.3.19"></a><var>3.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(q) when the disclosure is to a parent of a student at an institution of postsecondary <br />
         		<a id="pl.3.20"></a><var>3.20</var>education regarding the student's violation of any federal, state, or local law or of any <br />
         		<a id="pl.3.21"></a><var>3.21</var>rule or policy of the institution, governing the use or possession of alcohol or of a <br />
         		<a id="pl.3.22"></a><var>3.22</var>controlled substance, to the extent authorized under United States Code, title 20, section <br />
         		<a id="pl.3.23"></a><var>3.23</var>1232g(i), and Code of Federal Regulations, title 34, section 
         <statute_ref>99.31</statute_ref>(a)(15), and provided the <br />
         		<a id="pl.3.24"></a><var>3.24</var>institution has an information release form signed by the student authorizing disclosure <br />
         		<a id="pl.3.25"></a><var>3.25</var>to a parent. The institution must notify parents and students about the purpose and <br />
         		<a id="pl.3.26"></a><var>3.26</var>availability of the information release forms. At a minimum, the institution must distribute <br />
         		<a id="pl.3.27"></a><var>3.27</var>the information release forms at parent and student orientation meetings. <br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.3.28"></a><var>3.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read:<br />
         		<a id="pl.3.29"></a><var>3.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Senior citizen.</b> "Senior citizen" means a person who has reached 62 66 <br />
         		<a id="pl.3.30"></a><var>3.30</var>years of age before the beginning of any term, semester or quarter, in which a course of <br />
         		<a id="pl.3.31"></a><var>3.31</var>study is pursued, or a person receiving a railroad retirement annuity who has reached 60 <br />
         		<a id="pl.3.32"></a><var>3.32</var>years of age before the beginning of the term.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.3.33"></a><var>3.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is <br />
         		<a id="pl.3.34"></a><var>3.34</var>amended to read:<br />
         		<a id="pl.4.1"></a><var>4.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Responsibilities.</b> (a) The Minnesota Office of Higher Education is <br />
         		<a id="pl.4.2"></a><var>4.2</var>responsible for:<br />
         		<a id="pl.4.3"></a><var>4.3</var>(1) necessary state level administration of financial aid programs, including <br />
         		<a id="pl.4.4"></a><var>4.4</var>accounting, auditing, and disbursing state and federal financial aid funds, and reporting on <br />
         		<a id="pl.4.5"></a><var>4.5</var>financial aid programs to the governor and the legislature;<br />
         		<a id="pl.4.6"></a><var>4.6</var>(2) approval, registration, licensing, and financial aid eligibility of private collegiate <br />
         		<a id="pl.4.7"></a><var>4.7</var>and career schools, under sections 
         <statute_ref>136A.61</statute_ref> to 
         <statute_ref>136A.71</statute_ref> and chapter 141;<br />
         		<a id="pl.4.8"></a><var>4.8</var>(3) negotiating and administering reciprocity agreements;<br />
         		<a id="pl.4.9"></a><var>4.9</var>(4) publishing and distributing financial aid information and materials, and other <br />
         		<a id="pl.4.10"></a><var>4.10</var>information and materials under section 
         <statute_ref>136A.87</statute_ref>, to students and parents;<br />
         		<a id="pl.4.11"></a><var>4.11</var>(5) collecting and maintaining student enrollment and financial aid data and <br />
         		<a id="pl.4.12"></a><var>4.12</var>reporting data on students and postsecondary institutions to develop and implement a <br />
         		<a id="pl.4.13"></a><var>4.13</var>process to measure and report on the effectiveness of postsecondary institutions;<br />
         		<a id="pl.4.14"></a><var>4.14</var>(6) administering the federal programs that affect students and institutions on a <br />
         		<a id="pl.4.15"></a><var>4.15</var>statewide basis; and<br />
         		<a id="pl.4.16"></a><var>4.16</var>(7) prescribing policies, procedures, and rules under chapter 14 necessary to <br />
         		<a id="pl.4.17"></a><var>4.17</var>administer the programs under its supervision.<br />
         		<a id="pl.4.18"></a><var>4.18</var>(b) The office is authorized to match individual student data from the student record <br />
         		<a id="pl.4.19"></a><var>4.19</var>enrollment database with individual student financial aid data collected and maintained <br />
         		<a id="pl.4.20"></a><var>4.20</var>by the office in order to audit or evaluate federal or state supported education programs <br />
         		<a id="pl.4.21"></a><var>4.21</var>as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal <br />
         		<a id="pl.4.22"></a><var>4.22</var>Regulations, title 34, section 99.35. The office may match data from the following <br />
         		<a id="pl.4.23"></a><var>4.23</var>financial aid program databases with data from the student record enrollment database: <br />
         		<a id="pl.4.24"></a><var>4.24</var>tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary <br />
         		<a id="pl.4.25"></a><var>4.25</var>child care grant; the American Indian Scholarship; and the Achieve Scholarship. The <br />
         		<a id="pl.4.26"></a><var>4.26</var>office shall conduct the study in a manner that does not permit personal identification of <br />
         		<a id="pl.4.27"></a><var>4.27</var>parents or students by individuals other than representatives of the office.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.4.28"></a><var>4.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is <br />
         		<a id="pl.4.29"></a><var>4.29</var>amended to read:<br />
         		<a id="pl.4.30"></a><var>4.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Eligible institution.</b> "Eligible institution" means a postsecondary <br />
         		<a id="pl.4.31"></a><var>4.31</var>educational institution located in this state or in a state with which the office has entered <br />
         		<a id="pl.4.32"></a><var>4.32</var>into a higher education reciprocity agreement on state student aid programs that (1) is <br />
         		<a id="pl.4.33"></a><var>4.33</var>operated by this state or the Board of Regents of the University of Minnesota, or (2) <br />
         		<a id="pl.4.34"></a><var>4.34</var>is operated privately and, as determined by the office, meets all of the following: (i) <br />
         		<a id="pl.4.35"></a><var>4.35</var>maintains academic standards substantially equivalent to those of comparable institutions <br />
         		<a id="pl.5.1"></a><var>5.1</var>operated in this state; (ii) is licensed or registered as a postsecondary institution by the <br />
         		<a id="pl.5.2"></a><var>5.2</var>office or another state agency; and (iii) by July 1, 2013, is participating in the federal Pell <br />
         		<a id="pl.5.3"></a><var>5.3</var>Grant program under Title IV of the Higher Education Act of 1965, as amended. an <br />
         		<a id="pl.5.4"></a><var>5.4</var>institution that meets the eligibility requirements under section 136A.103.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.5.5"></a><var>5.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read:<br />
         		<a id="pl.5.6"></a><var>5.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Satisfactory academic progress.</b> "Satisfactory academic progress" <br />
         		<a id="pl.5.7"></a><var>5.7</var>means that: satisfactory academic progress as defined under Code of Federal Regulations, <br />
         		<a id="pl.5.8"></a><var>5.8</var>title 34, sections 668.16(e), 668.32(f), and 668.34.<br />
         		<a id="pl.5.9"></a><var>5.9</var>(1) by the end of a student's second academic year of attendance at an institution, the <br />
         		<a id="pl.5.10"></a><var>5.10</var>student has at least a cumulative grade point average of C or its equivalent, or academic <br />
         		<a id="pl.5.11"></a><var>5.11</var>standing consistent with the institution's graduation requirements; and<br />
         		<a id="pl.5.12"></a><var>5.12</var>(2) by the end of the first term of the third and fourth academic year of attendance, <br />
         		<a id="pl.5.13"></a><var>5.13</var>the student has a cumulative grade point average of at least a C or its equivalent.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.5.14"></a><var>5.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>[136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS.</b><br />
         		<a id="pl.5.15"></a><var>5.15</var>(a) A postsecondary institution is eligible for state student aid under chapter 136A <br />
         		<a id="pl.5.16"></a><var>5.16</var>and sections 197.791 and 299A.45, if the institution is located in this state or in a state <br />
         		<a id="pl.5.17"></a><var>5.17</var>with which the office has entered into a higher education reciprocity agreement on state <br />
         		<a id="pl.5.18"></a><var>5.18</var>student aid programs that:<br />
         		<a id="pl.5.19"></a><var>5.19</var>(1) is operated by this state or the Board of Regents of the University of Minnesota; <br />
         		<a id="pl.5.20"></a><var>5.20</var>or <br />
         		<a id="pl.5.21"></a><var>5.21</var>(2) is operated privately and, as determined by the office, meets the requirements of <br />
         		<a id="pl.5.22"></a><var>5.22</var>paragraph (b).<br />
         		<a id="pl.5.23"></a><var>5.23</var>(b) A private institution must:<br />
         		<a id="pl.5.24"></a><var>5.24</var>(1) maintain academic standards substantially equivalent to those of comparable <br />
         		<a id="pl.5.25"></a><var>5.25</var>institutions operated in this state;<br />
         		<a id="pl.5.26"></a><var>5.26</var>(2) be licensed or registered as a postsecondary institution by the office; and <br />
         		<a id="pl.5.27"></a><var>5.27</var>(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of <br />
         		<a id="pl.5.28"></a><var>5.28</var>the Higher Education Act of 1965, as amended; or<br />
         		<a id="pl.5.29"></a><var>5.29</var>(ii) if an institution was participating in state student aid programs as of June 30, <br />
         		<a id="pl.5.30"></a><var>5.30</var>2010, and the institution did not participate in the federal Pell Grant program by June 30, <br />
         		<a id="pl.5.31"></a><var>5.31</var>2010, the institution must require every student who enrolls to sign a disclosure form, <br />
         		<a id="pl.5.32"></a><var>5.32</var>provided by the office, stating that the institution is not participating in the federal Pell <br />
         		<a id="pl.5.33"></a><var>5.33</var>Grant program.<br />
         		<a id="pl.6.1"></a><var>6.1</var>(c) An institution that offers only graduate-level degrees or graduate-level nondegree <br />
         		<a id="pl.6.2"></a><var>6.2</var>programs, or that offers only degrees or programs that do not meet the required minimum <br />
         		<a id="pl.6.3"></a><var>6.3</var>program length to participate in the federal Pell Grant program, is an eligible institution if <br />
         		<a id="pl.6.4"></a><var>6.4</var>the institution is licensed or registered as a postsecondary institution by the office.<br />
         		<a id="pl.6.5"></a><var>6.5</var>(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes <br />
         		<a id="pl.6.6"></a><var>6.6</var>ownership as defined in section 136A.63, subdivision 2, must participate in the federal <br />
         		<a id="pl.6.7"></a><var>6.7</var>Pell Grant program within four calendar years of the first ownership change to continue <br />
         		<a id="pl.6.8"></a><var>6.8</var>eligibility.<br />
         		<a id="pl.6.9"></a><var>6.9</var>(e) An institution that loses its eligibility for the federal Pell Grant program is not an <br />
         		<a id="pl.6.10"></a><var>6.10</var>eligible institution.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.6.11"></a><var>6.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 136A.126, is amended by adding a <br />
         		<a id="pl.6.12"></a><var>6.12</var>subdivision to read:<br />
         		<a id="pl.6.13"></a><var>6.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Awarding procedure.</b> (a) Complete applications are ranked in order of <br />
         		<a id="pl.6.14"></a><var>6.14</var>completion date. If there are multiple applications with identical completion dates, those <br />
         		<a id="pl.6.15"></a><var>6.15</var>applications are further sorted by application receipt date.<br />
         		<a id="pl.6.16"></a><var>6.16</var>(b) Awards must be made on a first-come, first-served basis in the order complete <br />
         		<a id="pl.6.17"></a><var>6.17</var>applications are received.<br />
         		<a id="pl.6.18"></a><var>6.18</var>(c) Awards are made to eligible students until the appropriation is expended.<br />
         		<a id="pl.6.19"></a><var>6.19</var>(d) Applicants not receiving a grant and for whom the office has received a <br />
         		<a id="pl.6.20"></a><var>6.20</var>completed application are placed on a waiting list in order of application completion date.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.6.21"></a><var>6.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>[136A.129] LEGISLATIVE NOTICE.</b><br />
         		<a id="pl.6.22"></a><var>6.22</var>The office shall notify the chairs of the legislative committees with primary <br />
         		<a id="pl.6.23"></a><var>6.23</var>jurisdiction over higher education finance of any proposed material change to the <br />
         		<a id="pl.6.24"></a><var>6.24</var>administration of any of the grant or financial aid programs in sections 136A.095 to <br />
         		<a id="pl.6.25"></a><var>6.25</var>136A.128.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.6.26"></a><var>6.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read:<br />
         		<a id="pl.6.27"></a><var>6.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Eligible institution.</b> "Eligible institution" means a postsecondary <br />
         		<a id="pl.6.28"></a><var>6.28</var>educational institution that (1) is operated or regulated by this state or the Board of Regents <br />
         		<a id="pl.6.29"></a><var>6.29</var>of the University of Minnesota; (2) is operated publicly or privately in another state, is <br />
         		<a id="pl.6.30"></a><var>6.30</var>approved by the United States Secretary of Education, and, as determined by the office, <br />
         		<a id="pl.6.31"></a><var>6.31</var>maintains academic standards substantially equal to those of comparable institutions <br />
         		<a id="pl.6.32"></a><var>6.32</var>operated in this state; (3) is licensed or registered as a postsecondary institution by the <br />
         		<a id="pl.6.33"></a><var>6.33</var>office or another state agency; and (4) by July 1, 2011, is participating in the federal Pell <br />
         		<a id="pl.7.1"></a><var>7.1</var>Grant program under Title IV of the Higher Education Act of 1965, as amended. It also <br />
         		<a id="pl.7.2"></a><var>7.2</var>includes any institution chartered in a province. an institution that meets the eligibility <br />
         		<a id="pl.7.3"></a><var>7.3</var>requirements under section 136A.155.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.7.4"></a><var>7.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[136A.155] ADDITIONAL INSTITUTION ELIGIBILITY </b><br />
         		<a id="pl.7.5"></a><var>7.5</var><b>REQUIREMENTS.</b><br />
         		<a id="pl.7.6"></a><var>7.6</var>A postsecondary institution is an eligible institution for purposes of sections <br />
         		<a id="pl.7.7"></a><var>7.7</var>136A.15 to 136A.1702, if the institution:<br />
         		<a id="pl.7.8"></a><var>7.8</var>(1) meets the eligibility requirements under section 136A.103; or<br />
         		<a id="pl.7.9"></a><var>7.9</var>(2) is operated publicly or privately in another state, is approved by the United States <br />
         		<a id="pl.7.10"></a><var>7.10</var>Secretary of Education, and, as determined by the office, maintains academic standards <br />
         		<a id="pl.7.11"></a><var>7.11</var>substantially equal to those of comparable institutions operated in this state.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.7.12"></a><var>7.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 136A.16, subdivision 14, is amended to read:<br />
         		<a id="pl.7.13"></a><var>7.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Notes.</b> The office may sell at public or private sale, at the price or prices <br />
         		<a id="pl.7.14"></a><var>7.14</var>determined by the office, any note or other instrument or obligation evidencing or securing <br />
         		<a id="pl.7.15"></a><var>7.15</var>a loan made by the office or its predecessor, including the Minnesota Higher Education <br />
         		<a id="pl.7.16"></a><var>7.16</var>Coordinating Board and the Minnesota Higher Education Services Office.<br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.7.17"></a><var>7.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 136A.62, subdivision 3, is amended to read:<br />
         		<a id="pl.7.18"></a><var>7.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>School.</b> "School" means: <br />
         		<a id="pl.7.19"></a><var>7.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) any partnership, company, firm, society, trust, association, corporation, or any <br />
         		<a id="pl.7.20"></a><var>7.20</var>combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary <br />
         		<a id="pl.7.21"></a><var>7.21</var>education institution; (ii) is, owns, or operates a private, for-profit postsecondary education <br />
         		<a id="pl.7.22"></a><var>7.22</var>institution; or (iii) provides a postsecondary instructional program or course leading to a <br />
         		<a id="pl.7.23"></a><var>7.23</var>degree whether or not for profit; <br />
         		<a id="pl.7.24"></a><var>7.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) any public or private postsecondary educational institution located in another <br />
         		<a id="pl.7.25"></a><var>7.25</var>state or country which offers or makes available to a Minnesota resident any course, <br />
         		<a id="pl.7.26"></a><var>7.26</var>program or educational activity which does not require the leaving of the state for its <br />
         		<a id="pl.7.27"></a><var>7.27</var>completion; or<br />
         		<a id="pl.7.28"></a><var>7.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) any individual, entity, or postsecondary institution located in another state <br />
         		<a id="pl.7.29"></a><var>7.29</var>that contracts with any school located within the state of Minnesota for the purpose of <br />
         		<a id="pl.7.30"></a><var>7.30</var>providing educational programs, training programs, or awarding postsecondary credits <br />
         		<a id="pl.7.31"></a><var>7.31</var>or continuing education credits to Minnesota residents that may be applied to a degree <br />
         		<a id="pl.7.32"></a><var>7.32</var>program.<br />
         		<br />
         		<a id="bill.0.13.0"></a><a id="pl.8.1"></a><var>8.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2008, section 136A.645, is amended to read:<br />
         		<a id="pl.8.2"></a><var>8.2</var><b>136A.645 SCHOOL CLOSURE.</b><br />
         		<a id="pl.8.3"></a><var>8.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) When a school decides to cease postsecondary education operations, it must <br />
         		<a id="pl.8.4"></a><var>8.4</var>cooperate with the office in assisting students to find alternative means to complete their <br />
         		<a id="pl.8.5"></a><var>8.5</var>studies with a minimum of disruption, and inform the office of the following:<br />
         		<a id="pl.8.6"></a><var>8.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the planned date for termination of postsecondary education operations;<br />
         		<a id="pl.8.7"></a><var>8.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the planned date for the transfer of the student records;<br />
         		<a id="pl.8.8"></a><var>8.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) confirmation of the name and address of the organization to receive and hold <br />
         		<a id="pl.8.9"></a><var>8.9</var>the student records; and<br />
         		<a id="pl.8.10"></a><var>8.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the official at the organization receiving the student records who is designated to <br />
         		<a id="pl.8.11"></a><var>8.11</var>provide official copies of records or transcripts upon request.<br />
         		<a id="pl.8.12"></a><var>8.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon notice from a school of its intention to cease operations, the office shall <br />
         		<a id="pl.8.13"></a><var>8.13</var>notify the school of the date on which it must cease the enrollment of students and all <br />
         		<a id="pl.8.14"></a><var>8.14</var>postsecondary educational operations.<br />
         		<a id="pl.8.15"></a><var>8.15</var>Without limitation as to other circumstance, a school shall be deemed to have ceased <br />
         		<a id="pl.8.16"></a><var>8.16</var>operations when the school:<br />
         		<a id="pl.8.17"></a><var>8.17</var>(1) has an unscheduled nonemergency closure or cancellation of classes for more <br />
         		<a id="pl.8.18"></a><var>8.18</var>than 24 hours without prior notice to the office;<br />
         		<a id="pl.8.19"></a><var>8.19</var>(2) announces it is closed or closing; or <br />
         		<a id="pl.8.20"></a><var>8.20</var>(3) files for bankruptcy.<br />
         		<br />
         		<a id="bill.0.14.0"></a><a id="pl.8.21"></a><var>8.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2008, section 136A.646, is amended to read:<br />
         		<a id="pl.8.22"></a><var>8.22</var><b>136A.646 ADDITIONAL SECURITY.</b><br />
         		<a id="pl.8.23"></a><var>8.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event any registered institution is notified by the United States Department <br />
         		<a id="pl.8.24"></a><var>8.24</var>of Education that it has fallen below minimum financial standards and that its continued <br />
         		<a id="pl.8.25"></a><var>8.25</var>participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, <br />
         		<a id="pl.8.26"></a><var>8.26</var>Code of Federal Regulations, title 34, section 
         <statute_ref>668.175</statute_ref>, paragraph (f), or a Letter of Credit <br />
         		<a id="pl.8.27"></a><var>8.27</var>Alternative, Code of Federal Regulations, title 34, section 
         <statute_ref>668.175</statute_ref>, paragraph (c), the <br />
         		<a id="pl.8.28"></a><var>8.28</var>institution shall provide a surety bond conditioned upon the faithful performance of all <br />
         		<a id="pl.8.29"></a><var>8.29</var>contracts and agreements with students in a sum equal to the "letter of credit" required by <br />
         		<a id="pl.8.30"></a><var>8.30</var>the United States Department of Education in the Letter of Credit Alternative, but in no <br />
         		<a id="pl.8.31"></a><var>8.31</var>event shall such bond be less than $10,000 nor more than $250,000.<br />
         		<a id="pl.8.32"></a><var>8.32</var>(b) In lieu of a bond, the institution may deposit with the commissioner of finance: <br />
         		<a id="pl.8.33"></a><var>8.33</var>(1) a sum equal to the amount of the required surety bond in cash; or <br />
         		<a id="pl.8.34"></a><var>8.34</var>(2) securities, as may be legally purchased by savings banks or for trust funds, in an <br />
         		<a id="pl.8.35"></a><var>8.35</var>aggregate market value equal to the amount of the required surety bond.<br />
         		<br />
         		<a id="bill.0.15.0"></a><a id="pl.9.1"></a><var>9.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:<br />
         		<a id="pl.9.2"></a><var>9.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1.  <b>Registration fees.</b> (a) The office shall collect reasonable registration <br />
         		<a id="pl.9.3"></a><var>9.3</var>fees that are sufficient to recover, but do not exceed, its costs of administering the <br />
         		<a id="pl.9.4"></a><var>9.4</var>registration program. The office shall charge $1,100 for initial registration fees and $950 <br />
         		<a id="pl.9.5"></a><var>9.5</var>for annual renewal fees. the fees listed in paragraphs (b) and (c) for new registrations. <br />
         		<a id="pl.9.6"></a><var>9.6</var>(b) A new school offering no more than one degree at each level during its first year <br />
         		<a id="pl.9.7"></a><var>9.7</var>must pay registration fees for each applicable level in the following amounts:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="40"></col>
            <col width="25"></col>
            <tr>
               <td><a id="pl.9.8"></a><var>9.8</var><br />
                  		
               </td>
               <td>associate degree<br />
                  		
               </td>
               <td>$2,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.9"></a><var>9.9</var><br />
                  		
               </td>
               <td>baccalaureate degree<br />
                  		
               </td>
               <td>$2,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.10"></a><var>9.10</var><br />
                  		
               </td>
               <td>master's degree<br />
                  		
               </td>
               <td>$3,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.11"></a><var>9.11</var><br />
                  		
               </td>
               <td>doctorate degree<br />
                  		
               </td>
               <td>$3,500<br />
                  		
               </td>
            </tr>
         </table><a id="pl.9.12"></a><var>9.12</var>(c) A new school that will offer more than one degree per level during its first <br />
         		<a id="pl.9.13"></a><var>9.13</var>year must pay registration fees in an amount equal to the fee for the first degree at each <br />
         		<a id="pl.9.14"></a><var>9.14</var>degree level under paragraph (b), plus fees for each additional nondegree program or <br />
         		<a id="pl.9.15"></a><var>9.15</var>degree as follows:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="40"></col>
            <col width="25"></col>
            <tr>
               <td><a id="pl.9.16"></a><var>9.16</var><br />
                  		
               </td>
               <td>nondegree program<br />
                  		
               </td>
               <td>$250<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.17"></a><var>9.17</var><br />
                  		
               </td>
               <td>additional associate degree<br />
                  		
               </td>
               <td>$250<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.18"></a><var>9.18</var><br />
                  		
               </td>
               <td>additional baccalaureate degree<br />
                  		
               </td>
               <td>$500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.19"></a><var>9.19</var><br />
                  		
               </td>
               <td>additional master's degree<br />
                  		
               </td>
               <td>$750<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.20"></a><var>9.20</var><br />
                  		
               </td>
               <td>additional doctorate degree<br />
                  		
               </td>
               <td>$1,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.9.21"></a><var>9.21</var>(d) The annual renewal registration fee is $1,200.<br />
         		<br />
         		<a id="bill.0.16.0"></a><a id="pl.9.22"></a><var>9.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:<br />
         		<a id="pl.9.23"></a><var>9.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3.  <b>Degree or nondegree program addition fee.</b> The office processing fee <br />
         		<a id="pl.9.24"></a><var>9.24</var>fees for adding a degree or nondegree program that represents a significant departure in <br />
         		<a id="pl.9.25"></a><var>9.25</var>the objectives, content, or method of delivery of degree or nondegree programs that are <br />
         		<a id="pl.9.26"></a><var>9.26</var>currently offered by the school is $500 per degree or nondegree program. are as follows:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="50"></col>
            <col width="15"></col>
            <tr>
               <td><a id="pl.9.27"></a><var>9.27</var><br />
                  		
               </td>
               <td>nondegree program that is a part of an existing degree<br />
                  		
               </td>
               <td align="right">-0-<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.28"></a><var>9.28</var><br />
                  		
               </td>
               <td>nondegree program that is not a part of an existing degree<br />
                  		
               </td>
               <td align="right">$250 each<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.29"></a><var>9.29</var><br />
                  		<a id="pl.9.30"></a><var>9.30</var><br />
                  		
               </td>
               <td>majors, specializations, emphasis areas, concentrations, and other <br />
                  		similar areas of emphasis<br />
                  		
               </td>
               <td align="right" valign="top">$250 each<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.31"></a><var>9.31</var><br />
                  		
               </td>
               <td>associate degrees<br />
                  		
               </td>
               <td align="right">$500 each<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.32"></a><var>9.32</var><br />
                  		
               </td>
               <td>baccalaureate degrees<br />
                  		
               </td>
               <td align="right">$500 each<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.33"></a><var>9.33</var><br />
                  		
               </td>
               <td>master's degrees<br />
                  		
               </td>
               <td align="right">$750 each<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.9.34"></a><var>9.34</var><br />
                  		
               </td>
               <td>doctorate degrees<br />
                  		
               </td>
               <td align="right">$2,000 each<br />
                  		
               </td>
            </tr>
         </table><br />
         		<a id="bill.0.17.0"></a><a id="pl.9.35"></a><var>9.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:<br />
         		<a id="pl.10.1"></a><var>10.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4.  <b>Visit or consulting fee.</b> If the office determines that a fact-finding visit <br />
         		<a id="pl.10.2"></a><var>10.2</var>or outside consultant is necessary to review or evaluate any new or revised degree or <br />
         		<a id="pl.10.3"></a><var>10.3</var>nondegree program, the office shall be reimbursed for the expenses incurred related to the <br />
         		<a id="pl.10.4"></a><var>10.4</var>review as follows: <br />
         		<a id="pl.10.5"></a><var>10.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) $300 $400 for the team base fee or for a paper review conducted by a consultant <br />
         		<a id="pl.10.6"></a><var>10.6</var>if the office determines that a fact-finding visit is not required; <br />
         		<a id="pl.10.7"></a><var>10.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) $300 for each day or part thereof on site per team member; and <br />
         		<a id="pl.10.8"></a><var>10.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the actual cost of customary meals, lodging, and related travel expenses incurred <br />
         		<a id="pl.10.9"></a><var>10.9</var>by team members. <br />
         		<br />
         		<a id="bill.0.18.0"></a><a id="pl.10.10"></a><var>10.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b>[136F.08] CENTRAL SYSTEM OFFICE.</b><br />
         		<a id="pl.10.11"></a><var>10.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Establishment.</b> A central system office is established for the <br />
         		<a id="pl.10.12"></a><var>10.12</var>Minnesota State Colleges and Universities to provide central support to the institutions <br />
         		<a id="pl.10.13"></a><var>10.13</var>enrolling students and to assist the board in fulfilling its missions under section 136F.05. <br />
         		<a id="pl.10.14"></a><var>10.14</var>The central office must not assume responsibility for services that are most effectively <br />
         		<a id="pl.10.15"></a><var>10.15</var>and efficiently provided at the institution level. The central system office is under the <br />
         		<a id="pl.10.16"></a><var>10.16</var>direction of the chancellor.<br />
         		<a id="pl.10.17"></a><var>10.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>General duties.</b> The central system office must coordinate system level <br />
         		<a id="pl.10.18"></a><var>10.18</var>responsibilities for financial management, personnel management, facilities management, <br />
         		<a id="pl.10.19"></a><var>10.19</var>information technology, credit transfer, legal affairs, government relations, and auditing. <br />
         		<a id="pl.10.20"></a><var>10.20</var>The central system office shall coordinate its services with the services provided at the <br />
         		<a id="pl.10.21"></a><var>10.21</var>institution level so as not to duplicate any functions that are provided by institutions.<br />
         		<br />
         		<a id="bill.0.19.0"></a><a id="pl.10.22"></a><var>10.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. <b>[136F.302] CREDIT TRANSFER.</b><br />
         		<a id="pl.10.23"></a><var>10.23</var>The board of trustees must develop and maintain a systemwide effective and <br />
         		<a id="pl.10.24"></a><var>10.24</var>efficient mechanism for seamless student transfer between system institutions that has a <br />
         		<a id="pl.10.25"></a><var>10.25</var>goal of minimal loss of credits for transferring students. The Degree Audit and Reporting <br />
         		<a id="pl.10.26"></a><var>10.26</var>System (DARS) and the u.select database, and successor databases, housed within the <br />
         		<a id="pl.10.27"></a><var>10.27</var>office of the chancellor shall be the official repository of course equivalencies between <br />
         		<a id="pl.10.28"></a><var>10.28</var>system colleges and universities. Each system college and university shall be responsible <br />
         		<a id="pl.10.29"></a><var>10.29</var>for ensuring the accuracy and completeness of course equivalencies listed for courses <br />
         		<a id="pl.10.30"></a><var>10.30</var>offered by that college or university. The development and maintenance of the system <br />
         		<a id="pl.10.31"></a><var>10.31</var>must, at a minimum, address the following:<br />
         		<a id="pl.10.32"></a><var>10.32</var>(1) alignment of institution curriculum and its communication to stakeholders;<br />
         		<a id="pl.10.33"></a><var>10.33</var>(2) transfer between similar programs;<br />
         		<a id="pl.10.34"></a><var>10.34</var>(3) documentation for transfer-related agreements between institutions;<br />
         		<a id="pl.11.1"></a><var>11.1</var>(4) systemwide transfer information on the Internet that is easily accessible and <br />
         		<a id="pl.11.2"></a><var>11.2</var>maintained in a current and accurate status;<br />
         		<a id="pl.11.3"></a><var>11.3</var>(5) training for campus-level staff to provide accurate and consistent advice to <br />
         		<a id="pl.11.4"></a><var>11.4</var>students;<br />
         		<a id="pl.11.5"></a><var>11.5</var>(6) institutional rather than student obligation to provide prompt required <br />
         		<a id="pl.11.6"></a><var>11.6</var>documentation for course equivalency determinations; and<br />
         		<a id="pl.11.7"></a><var>11.7</var>(7) consistency of transfer policies among institutions in compliance with a system <br />
         		<a id="pl.11.8"></a><var>11.8</var>policy.<br />
         		<br />
         		<a id="bill.0.20.0"></a><a id="pl.11.9"></a><var>11.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision <br />
         		<a id="pl.11.10"></a><var>11.10</var>to read:<br />
         		<a id="pl.11.11"></a><var>11.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Refunds.</b> If a contract is deemed unenforceable under subdivision 2, a <br />
         		<a id="pl.11.12"></a><var>11.12</var>school must refund tuition, fees, and other charges received from a student or on behalf <br />
         		<a id="pl.11.13"></a><var>11.13</var>of a student within 30 days of receiving written notification and demand for refund from <br />
         		<a id="pl.11.14"></a><var>11.14</var>the Minnesota Office of Higher Education.<br />
         		<br />
         		<a id="bill.0.21.0"></a><a id="pl.11.15"></a><var>11.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read:<br />
         		<a id="pl.11.16"></a><var>11.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Minimum standards.</b> A license shall be issued if the office first <br />
         		<a id="pl.11.17"></a><var>11.17</var>determines:<br />
         		<a id="pl.11.18"></a><var>11.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) that the applicant has a sound financial condition with sufficient resources <br />
         		<a id="pl.11.19"></a><var>11.19</var>available to:<br />
         		<a id="pl.11.20"></a><var>11.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) meet the school's financial obligations;<br />
         		<a id="pl.11.21"></a><var>11.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) refund all tuition and other charges, within a reasonable period of time, in the <br />
         		<a id="pl.11.22"></a><var>11.22</var>event of dissolution of the school or in the event of any justifiable claims for refund against <br />
         		<a id="pl.11.23"></a><var>11.23</var>the school by the student body;<br />
         		<a id="pl.11.24"></a><var>11.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) provide adequate service to its students and prospective students; and<br />
         		<a id="pl.11.25"></a><var>11.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) maintain and support the school;<br />
         		<a id="pl.11.26"></a><var>11.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) that the applicant has satisfactory facilities with sufficient tools and equipment <br />
         		<a id="pl.11.27"></a><var>11.27</var>and the necessary number of work stations to prepare adequately the students currently <br />
         		<a id="pl.11.28"></a><var>11.28</var>enrolled, and those proposed to be enrolled;<br />
         		<a id="pl.11.29"></a><var>11.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) that the applicant employs a sufficient number of qualified teaching personnel to <br />
         		<a id="pl.11.30"></a><var>11.30</var>provide the educational programs contemplated;<br />
         		<a id="pl.11.31"></a><var>11.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) that the school has an organizational framework with administrative and <br />
         		<a id="pl.11.32"></a><var>11.32</var>instructional personnel to provide the programs and services it intends to offer;<br />
         		<a id="pl.11.33"></a><var>11.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) that the premises and conditions under which the students work and study are <br />
         		<a id="pl.11.34"></a><var>11.34</var>sanitary, healthful, and safe, according to modern standards;<br />
         		<a id="pl.12.1"></a><var>12.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) that the quality and content of each occupational course or program of study <br />
         		<a id="pl.12.2"></a><var>12.2</var>provides education and adequate preparation to enrolled students for entry level positions <br />
         		<a id="pl.12.3"></a><var>12.3</var>in the occupation for which prepared;<br />
         		<a id="pl.12.4"></a><var>12.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) that the living quarters which are owned, maintained, recommended, or approved <br />
         		<a id="pl.12.5"></a><var>12.5</var>by the applicant for students are sanitary and safe;<br />
         		<a id="pl.12.6"></a><var>12.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) that the contract or enrollment agreement used by the school complies with <br />
         		<a id="pl.12.7"></a><var>12.7</var>the provisions in section 
         <statute_ref>141.265</statute_ref>; <br />
         		<a id="pl.12.8"></a><var>12.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) that contracts and agreements do not contain a wage assignment provision or a <br />
         		<a id="pl.12.9"></a><var>12.9</var>confession of judgment clause; and<br />
         		<a id="pl.12.10"></a><var>12.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) that there has been no adjudication of fraud or misrepresentation in any <br />
         		<a id="pl.12.11"></a><var>12.11</var>criminal, civil, or administrative proceeding in any jurisdiction against the school or its <br />
         		<a id="pl.12.12"></a><var>12.12</var>owner, officers, agents, or sponsoring organization.<br />
         		<br />
         		<a id="bill.0.22.0"></a><a id="pl.12.13"></a><var>12.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read:<br />
         		<a id="pl.12.14"></a><var>12.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13.  <b>Schools licensed by another state agency or board.</b> A school required <br />
         		<a id="pl.12.15"></a><var>12.15</var>to obtain a private career school license due to the use of "academy," "institute," "college," <br />
         		<a id="pl.12.16"></a><var>12.16</var>or "university" in its name or licensed for the purpose of participating in state financial aid <br />
         		<a id="pl.12.17"></a><var>12.17</var>under chapter 136A, and which is also licensed by another state agency or board shall be <br />
         		<a id="pl.12.18"></a><var>12.18</var>required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7), <br />
         		<a id="pl.12.19"></a><var>12.19</var>and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12. <br />
         		<br />
         		<a id="bill.0.23.0"></a><a id="pl.12.20"></a><var>12.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read:<br />
         		<a id="pl.12.21"></a><var>12.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Conditions.</b> The office shall adopt rules establishing the conditions for <br />
         		<a id="pl.12.22"></a><var>12.22</var>renewal of a license. The conditions shall permit two levels of renewal based on the record <br />
         		<a id="pl.12.23"></a><var>12.23</var>of the school. A school that has demonstrated the quality of its program and operation <br />
         		<a id="pl.12.24"></a><var>12.24</var>through longevity and performance in the state may renew its license based on a relaxed <br />
         		<a id="pl.12.25"></a><var>12.25</var>standard of scrutiny. A school that has been in operation in Minnesota for a limited period <br />
         		<a id="pl.12.26"></a><var>12.26</var>of time or that has not performed adequately on performance indicators shall renew its <br />
         		<a id="pl.12.27"></a><var>12.27</var>license based on a strict standard of scrutiny. The office shall specify minimum longevity <br />
         		<a id="pl.12.28"></a><var>12.28</var>standards and performance indicators that must be met before a school may be permitted <br />
         		<a id="pl.12.29"></a><var>12.29</var>to operate under the relaxed standard of scrutiny. The performance indicators used in this <br />
         		<a id="pl.12.30"></a><var>12.30</var>determination shall include, but not be limited to: degree granting status, regional or <br />
         		<a id="pl.12.31"></a><var>12.31</var>national accreditation, loan default rates, placement rate of graduates, student withdrawal <br />
         		<a id="pl.12.32"></a><var>12.32</var>rates, audit results, student complaints, and school status with the United States <br />
         		<a id="pl.12.33"></a><var>12.33</var>Department of Education. Schools that meet the requirements established in rule shall be <br />
         		<a id="pl.12.34"></a><var>12.34</var>required to submit a full relicensure report once every four years, and in the interim years <br />
         		<a id="pl.13.1"></a><var>13.1</var>will be exempt from the requirements of section 
         <statute_ref>141.25, subdivision 3</statute_ref>, clauses (4), (5), <br />
         		<a id="pl.13.2"></a><var>13.2</var>and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.<br />
         		<br />
         		<a id="bill.0.24.0"></a><a id="pl.13.3"></a><var>13.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2008, section 141.255, is amended to read:<br />
         		<a id="pl.13.4"></a><var>13.4</var><b>141.255 FEES.</b><br />
         		<a id="pl.13.5"></a><var>13.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Initial licensure fee.</b> The office processing fee for an initial licensure <br />
         		<a id="pl.13.6"></a><var>13.6</var>application is:<br />
         		<a id="pl.13.7"></a><var>13.7</var>(1) $1,500 $2,500 for a school that will offer no more than one program during <br />
         		<a id="pl.13.8"></a><var>13.8</var>its first year of operation;<br />
         		<a id="pl.13.9"></a><var>13.9</var>(2) $2,000 for a school that will offer two or more nondegree level programs $750 <br />
         		<a id="pl.13.10"></a><var>13.10</var>for a school licensed exclusively due to the use of the term "college," "university," <br />
         		<a id="pl.13.11"></a><var>13.11</var>"academy," or "institute" in their name, or licensed exclusively in order to participate in <br />
         		<a id="pl.13.12"></a><var>13.12</var>state grant or SELF loan financial aid programs; and<br />
         		<a id="pl.13.13"></a><var>13.13</var>(3) $2,500, plus $500 for each additional program offered by the school, for a school <br />
         		<a id="pl.13.14"></a><var>13.14</var> during its first year of operation; and.<br />
         		<a id="pl.13.15"></a><var>13.15</var>(3) $2,500 for a school that will offer two or more degree level programs during <br />
         		<a id="pl.13.16"></a><var>13.16</var>its first year of operation.<br />
         		<a id="pl.13.17"></a><var>13.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Renewal licensure fee; late fee.</b> (a) The office processing fee for a <br />
         		<a id="pl.13.18"></a><var>13.18</var>renewal licensure application is:<br />
         		<a id="pl.13.19"></a><var>13.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) for a category A school, as determined by the office, the fee is $865 if the school <br />
         		<a id="pl.13.20"></a><var>13.20</var>offers one program or $1,150 if the school offers two or more programs; and<br />
         		<a id="pl.13.21"></a><var>13.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) for a category B or C school, as determined by the office, the fee is $430 if the <br />
         		<a id="pl.13.22"></a><var>13.22</var>school offers one program or $575 if the school offers two or more programs.<br />
         		<a id="pl.13.23"></a><var>13.23</var>(1) for a school that offers one program, the license renewal fee is $1,150;<br />
         		<a id="pl.13.24"></a><var>13.24</var>(2) for a school that offers more than one program, the license renewal fee is <br />
         		<a id="pl.13.25"></a><var>13.25</var>$1,150, plus $200 for each additional program with a maximum renewal licensing fee <br />
         		<a id="pl.13.26"></a><var>13.26</var>of $2,000; and<br />
         		<a id="pl.13.27"></a><var>13.27</var>(3) schools licensed exclusively due to the use of the term "college," "university," <br />
         		<a id="pl.13.28"></a><var>13.28</var>"academy," or "institute" in their name or licensed exclusively in order to participate in <br />
         		<a id="pl.13.29"></a><var>13.29</var>state grant or SELF loan financial aid programs shall pay a renewal fee of $750.<br />
         		<a id="pl.13.30"></a><var>13.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) If a license renewal application is not received by the office by the close of <br />
         		<a id="pl.13.31"></a><var>13.31</var>business at least 60 days before the expiration of the current license, a late fee of $100 <br />
         		<a id="pl.13.32"></a><var>13.32</var>per business day, not to exceed $3,000, shall be assessed.<br />
         		<a id="pl.13.33"></a><var>13.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Degree level addition fee.</b> The office processing fee for adding a degree <br />
         		<a id="pl.13.34"></a><var>13.34</var>level to an existing program is $2,000 per program.<br />
         		<a id="pl.14.1"></a><var>14.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Program addition fee.</b> The office processing fee for adding a program <br />
         		<a id="pl.14.2"></a><var>14.2</var>that represents a significant departure in the objectives, content, or method of delivery of <br />
         		<a id="pl.14.3"></a><var>14.3</var>programs to those that are currently offered by the school is $500 per program.<br />
         		<a id="pl.14.4"></a><var>14.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Visit or consulting fee.</b> If the office determines that a fact-finding visit <br />
         		<a id="pl.14.5"></a><var>14.5</var>or outside consultant is necessary to review or evaluate any new or revised program, the <br />
         		<a id="pl.14.6"></a><var>14.6</var>office shall be reimbursed for the expenses incurred related to the review as follows:<br />
         		<a id="pl.14.7"></a><var>14.7</var>(1) $300 $400 for the team base fee or for a paper review conducted by a consultant <br />
         		<a id="pl.14.8"></a><var>14.8</var>if the office determines that a fact-finding visit is not required;<br />
         		<a id="pl.14.9"></a><var>14.9</var>(2) $300 for each day or part thereof on site per team member; and<br />
         		<a id="pl.14.10"></a><var>14.10</var>(3) the actual cost of customary meals, lodging, and related travel expenses incurred <br />
         		<a id="pl.14.11"></a><var>14.11</var>by team members.<br />
         		<a id="pl.14.12"></a><var>14.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Modification fee.</b> The fee for modification of any existing program is <br />
         		<a id="pl.14.13"></a><var>14.13</var>$100 and is due if there is:<br />
         		<a id="pl.14.14"></a><var>14.14</var>(1) an increase or decrease of 25 percent or more, from the original date of program <br />
         		<a id="pl.14.15"></a><var>14.15</var>approval, in clock hours, credit hours, or calendar length of an existing program;<br />
         		<a id="pl.14.16"></a><var>14.16</var>(2) a change in academic measurement from clock hours to credit hours or vice <br />
         		<a id="pl.14.17"></a><var>14.17</var>versa; or<br />
         		<a id="pl.14.18"></a><var>14.18</var>(3) an addition or alteration of courses that represent a 25 percent change or more in <br />
         		<a id="pl.14.19"></a><var>14.19</var>the objectives, content, or methods of delivery.<br />
         		<a id="pl.14.20"></a><var>14.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Solicitor permit fee.</b> The solicitor permit fee is $350 and must be paid <br />
         		<a id="pl.14.21"></a><var>14.21</var>annually.<br />
         		<a id="pl.14.22"></a><var>14.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Multiple location fee.</b> Schools wishing to operate at multiple locations <br />
         		<a id="pl.14.23"></a><var>14.23</var>must pay:<br />
         		<a id="pl.14.24"></a><var>14.24</var>(1) $250 per location, for locations two to five locations; and<br />
         		<a id="pl.14.25"></a><var>14.25</var>(2) an additional $50 $100 for each location over five.<br />
         		<a id="pl.14.26"></a><var>14.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Student transcript fee.</b> The fee for a student transcript requested from <br />
         		<a id="pl.14.27"></a><var>14.27</var>a closed school whose records are held by the office is $10 $15, with a maximum of <br />
         		<a id="pl.14.28"></a><var>14.28</var>five transcripts per request.<br />
         		<a id="pl.14.29"></a><var>14.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Public office documents; copies.</b> The office shall establish rates for <br />
         		<a id="pl.14.30"></a><var>14.30</var>copies of any public office document shall be 50 cents per page.<br />
         		<br />
         		<a id="bill.0.25.0"></a><a id="pl.14.31"></a><var>14.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read:<br />
         		<a id="pl.14.32"></a><var>14.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Unlawful designation.</b> No school organized after November 15, 1969, <br />
         		<a id="pl.14.33"></a><var>14.33</var>shall apply to itself either as a part of its name or in any other manner the designation of <br />
         		<a id="pl.14.34"></a><var>14.34</var>"college" or "university" unless such school applies for and receives certification from the <br />
         		<a id="pl.15.1"></a><var>15.1</var>office that it meets appropriate standards and is entitled to such designation. Operating <br />
         		<a id="pl.15.2"></a><var>15.2</var>schools now using such designation may continue use thereof.<br />
         		<br />
         		<a id="bill.0.26.0"></a><a id="pl.15.3"></a><var>15.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21.5"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <col width="2.5"></col>
            <col width="12"></col>
            <tr>
               <td><a id="pl.15.4"></a><var>15.4</var><br />
                  		
               </td>
               <td colspan="3" align="left" valign="bottom">Subd. 21.<b>Transfers</b><br />
                  		
               </td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom"></td>
               <td align="center" valign="bottom"></td>
               <td align="right" valign="bottom"></td>
            </tr>
         </table><a id="pl.15.5"></a><var>15.5</var>The Minnesota Office of Higher Education <br />
         		<a id="pl.15.6"></a><var>15.6</var>may transfer unencumbered balances from <br />
         		<a id="pl.15.7"></a><var>15.7</var>the appropriations in this section to the state <br />
         		<a id="pl.15.8"></a><var>15.8</var>grant appropriation, the interstate tuition <br />
         		<a id="pl.15.9"></a><var>15.9</var>reciprocity appropriation, the child care <br />
         		<a id="pl.15.10"></a><var>15.10</var>grant appropriation, the Indian scholarship <br />
         		<a id="pl.15.11"></a><var>15.11</var>appropriation, the state work-study <br />
         		<a id="pl.15.12"></a><var>15.12</var>appropriation, the achieve scholarship <br />
         		<a id="pl.15.13"></a><var>15.13</var>appropriation, the public safety officers' <br />
         		<a id="pl.15.14"></a><var>15.14</var>survivors appropriation, and the Minnesota <br />
         		<a id="pl.15.15"></a><var>15.15</var>college savings plan appropriation. Transfers <br />
         		<a id="pl.15.16"></a><var>15.16</var>from the state grant, child care, or state <br />
         		<a id="pl.15.17"></a><var>15.17</var>work-study appropriations may only be made <br />
         		<a id="pl.15.18"></a><var>15.18</var>to the extent there is a projected surplus in <br />
         		<a id="pl.15.19"></a><var>15.19</var>the appropriation. A transfer may be made <br />
         		<a id="pl.15.20"></a><var>15.20</var>only with prior written notice to the chairs <br />
         		<a id="pl.15.21"></a><var>15.21</var>of the senate and house of representatives <br />
         		<a id="pl.15.22"></a><var>15.22</var>committees with jurisdiction over higher <br />
         		<a id="pl.15.23"></a><var>15.23</var>education finance.<br />
         		<a id="pl.15.24"></a><var>15.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.0.27.0"></a><a id="pl.15.25"></a><var>15.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. <b>STREAMLINED MNSCU SYSTEM OFFICE.</b><br />
         		<a id="pl.15.26"></a><var>15.26</var>Notwithstanding any law or policy to the contrary, the Board of Trustees of the <br />
         		<a id="pl.15.27"></a><var>15.27</var>Minnesota State Colleges and Universities shall streamline services provided through <br />
         		<a id="pl.15.28"></a><var>15.28</var>the system's central service office to reduce expenditures, better target the use of state <br />
         		<a id="pl.15.29"></a><var>15.29</var>resources, and provide services at the most appropriate and efficient level so as not <br />
         		<a id="pl.15.30"></a><var>15.30</var>to duplicate any services provided at the institutional level. These actions must be <br />
         		<a id="pl.15.31"></a><var>15.31</var>implemented so as to achieve budgetary savings and efficiencies in delivery of services <br />
         		<a id="pl.15.32"></a><var>15.32</var>and the accomplishment of the academic mission. The board must revise any board <br />
         		<a id="pl.15.33"></a><var>15.33</var>policies in a way that is consistent with the requirements of this section.<br />
         		<br />
         		<a id="bill.0.28.0"></a><a id="pl.16.1"></a><var>16.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. <b>CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND </b><br />
         		<a id="pl.16.2"></a><var>16.2</var><b>UNIVERSITIES.</b><br />
         		<a id="pl.16.3"></a><var>16.3</var>(a) The Board of Trustees of the Minnesota State Colleges and Universities must <br />
         		<a id="pl.16.4"></a><var>16.4</var>develop and implement a plan to improve credit transfers within the system. At a <br />
         		<a id="pl.16.5"></a><var>16.5</var>minimum, the board must:<br />
         		<a id="pl.16.6"></a><var>16.6</var>(1) enhance the availability of easily used information on transferring and tracking <br />
         		<a id="pl.16.7"></a><var>16.7</var>credits;<br />
         		<a id="pl.16.8"></a><var>16.8</var>(2) improve training for all staff involved with credit transfer;<br />
         		<a id="pl.16.9"></a><var>16.9</var>(3) identify barriers to transferring credits including intellectual property issues for <br />
         		<a id="pl.16.10"></a><var>16.10</var>faculty and devise methods to eliminate these barriers; and<br />
         		<a id="pl.16.11"></a><var>16.11</var>(4)  identify discrepancies in the treatment of transferring and accepting credits <br />
         		<a id="pl.16.12"></a><var>16.12</var>by various institutions within the system and devise methods to improve the uniform <br />
         		<a id="pl.16.13"></a><var>16.13</var>treatment of credit transfers.<br />
         		<a id="pl.16.14"></a><var>16.14</var>(b) The board must convene working groups of affected faculty, staff, and <br />
         		<a id="pl.16.15"></a><var>16.15</var>administrators representing institutions and academic and technical disciplines in the <br />
         		<a id="pl.16.16"></a><var>16.16</var>system to work on issues and barriers to credit transfer. The purpose of the working <br />
         		<a id="pl.16.17"></a><var>16.17</var>groups is to develop specific actions that will remove any barriers to credit transfer and to <br />
         		<a id="pl.16.18"></a><var>16.18</var>improve the ease and transparency of credit transfer for students.<br />
         		<a id="pl.16.19"></a><var>16.19</var>(c) The board of trustees must report to the legislature by January 15, 2012, on the <br />
         		<a id="pl.16.20"></a><var>16.20</var>plans for and progress towards improvements in the transfer of credits. Any proposal to <br />
         		<a id="pl.16.21"></a><var>16.21</var>develop and implement a mandatory or voluntary common course numbering system for <br />
         		<a id="pl.16.22"></a><var>16.22</var>the Minnesota State Colleges and Universities must not be required until after the receipt <br />
         		<a id="pl.16.23"></a><var>16.23</var>of the report under this section.<br />
         		<br />
         		<a id="bill.0.29.0"></a><a id="pl.16.24"></a><var>16.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. <b>POSTRETIREMENT HEALTH INSURANCE PREMIUM </b><br />
         		<a id="pl.16.25"></a><var>16.25</var><b>REIMBURSEMENT.</b><br />
         		<a id="pl.16.26"></a><var>16.26</var>The Minnesota State Colleges and Universities (MnSCU) system shall waive <br />
         		<a id="pl.16.27"></a><var>16.27</var>premium reimbursement payments including any late payment charges, fees, penalties, or <br />
         		<a id="pl.16.28"></a><var>16.28</var>interest payments imposed on overdue health insurance premium reimbursements owed <br />
         		<a id="pl.16.29"></a><var>16.29</var>by a college retiree to the college under a contractual or collective bargaining agreement <br />
         		<a id="pl.16.30"></a><var>16.30</var>providing for postretirement health insurance benefits arising from employment under <br />
         		<a id="pl.16.31"></a><var>16.31</var>a contract or collective bargaining agreement with a school district or technical college <br />
         		<a id="pl.16.32"></a><var>16.32</var>prior to July 1, 1995, and who became an employee of Minnesota State Colleges and <br />
         		<a id="pl.16.33"></a><var>16.33</var>Universities on July 1, 1995. This section applies only if the college has failed to bill <br />
         		<a id="pl.16.34"></a><var>16.34</var>the retiree for the premium reimbursement payments as required under the applicable <br />
         		<a id="pl.17.1"></a><var>17.1</var>collective bargaining or contractual agreement, or if not otherwise established, within 90 <br />
         		<a id="pl.17.2"></a><var>17.2</var>days following the date on which the premium was due.<br />
         		<a id="pl.17.3"></a><var>17.3</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br />
         		<br />
         		<a id="bill.0.30.0"></a><a id="pl.17.4"></a><var>17.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. <b>REPORT OF CREDIT TRANSFER ACTIVITIES.</b><br />
         		<a id="pl.17.5"></a><var>17.5</var>The Board of Trustees of the Minnesota State Colleges and Universities shall report <br />
         		<a id="pl.17.6"></a><var>17.6</var>on February 15, 2011, and annually thereafter through 2015, on its activities to achieve <br />
         		<a id="pl.17.7"></a><var>17.7</var>the credit transfer goals of Minnesota Statutes, section 136F.302, and the results of those <br />
         		<a id="pl.17.8"></a><var>17.8</var>activities. The report shall be made to the chairs and ranking minority members of the <br />
         		<a id="pl.17.9"></a><var>17.9</var>legislative committees with primary jurisdiction over higher education policy and finance. <br />
         		<a id="pl.17.10"></a><var>17.10</var>The goals of Minnesota Statutes, section 136F.302, should be fully achieved as soon as <br />
         		<a id="pl.17.11"></a><var>17.11</var>possible, but no later than the start of the 2015-2016 academic year.<br />
         		<br />
         		<a id="bill.0.31.0"></a><a id="pl.17.12"></a><var>17.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. <b>PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF </b><br />
         		<a id="pl.17.13"></a><var>17.13</var><b>MINNESOTA STATE COLLEGES AND UNIVERSITIES.</b><br />
         		<a id="pl.17.14"></a><var>17.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Establishment.</b> To increase the distribution of potential economic <br />
         		<a id="pl.17.15"></a><var>17.15</var>benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and <br />
         		<a id="pl.17.16"></a><var>17.16</var>Universities, a pilot project is established to transfer certain reserve deposits of selected <br />
         		<a id="pl.17.17"></a><var>17.17</var>institutions from the state treasury to a community financial institution. Notwithstanding <br />
         		<a id="pl.17.18"></a><var>17.18</var>Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management <br />
         		<a id="pl.17.19"></a><var>17.19</var>and budget shall transfer the board-required reserve funds of colleges and universities <br />
         		<a id="pl.17.20"></a><var>17.20</var>selected by the board of trustees under subdivision 2, to a community financial institution <br />
         		<a id="pl.17.21"></a><var>17.21</var>designated for each of the participating colleges and universities.<br />
         		<a id="pl.17.22"></a><var>17.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Participating colleges and universities.</b> By June 11, 2010, colleges and <br />
         		<a id="pl.17.23"></a><var>17.23</var>universities must apply to the Board of Trustees of the Minnesota State Colleges and <br />
         		<a id="pl.17.24"></a><var>17.24</var>Universities for participation in the pilot project. Each applicant must designate one or <br />
         		<a id="pl.17.25"></a><var>17.25</var>more community financial institutions for the deposit of board-required reserves, with the <br />
         		<a id="pl.17.26"></a><var>17.26</var>terms of the deposit for each designated community financial institution. The designated <br />
         		<a id="pl.17.27"></a><var>17.27</var>community financial institution must be located within 25 miles of a participating campus. <br />
         		<a id="pl.17.28"></a><var>17.28</var>From the applicants, the board shall select eight postsecondary institutions to participate in <br />
         		<a id="pl.17.29"></a><var>17.29</var>the local deposit pilot project. In making its selection, the board must consider the size <br />
         		<a id="pl.17.30"></a><var>17.30</var>of the institution's reserves and the terms offered by the designated community financial <br />
         		<a id="pl.17.31"></a><var>17.31</var>institutions. Two-year and four-year institutions must be selected to participate in the pilot <br />
         		<a id="pl.17.32"></a><var>17.32</var>project and at least five of the selected institutions must be located in greater Minnesota.<br />
         		<a id="pl.18.1"></a><var>18.1</var>By June 25, 2010, the board must notify the commissioner of management and <br />
         		<a id="pl.18.2"></a><var>18.2</var>budget of the participating colleges and universities and the associated community <br />
         		<a id="pl.18.3"></a><var>18.3</var>financial institutions.<br />
         		<a id="pl.18.4"></a><var>18.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Community financial institution.</b> As used in this section, "community <br />
         		<a id="pl.18.5"></a><var>18.5</var>financial institution" means a federally insured bank or credit union, chartered as a bank <br />
         		<a id="pl.18.6"></a><var>18.6</var>or credit union by the state of Minnesota or the United States, that is headquartered in <br />
         		<a id="pl.18.7"></a><var>18.7</var>Minnesota and that has no more than $2,500,000,000 in assets.<br />
         		<a id="pl.18.8"></a><var>18.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Evaluation and report.</b> The commissioner of management and budget and <br />
         		<a id="pl.18.9"></a><var>18.9</var>the board of trustees shall independently evaluate the effectiveness or harm of the local <br />
         		<a id="pl.18.10"></a><var>18.10</var>deposit pilot project in increasing the use of community financial institutions and providing <br />
         		<a id="pl.18.11"></a><var>18.11</var>wider distribution of the economic benefit of the deposit of postsecondary reserves. Each <br />
         		<a id="pl.18.12"></a><var>18.12</var>evaluation must include the participating colleges, universities, and community financial <br />
         		<a id="pl.18.13"></a><var>18.13</var>institutions. The commissioner and the board shall report the results of the pilot project <br />
         		<a id="pl.18.14"></a><var>18.14</var>evaluation to the appropriate committees of the legislature by December 1, 2011, with <br />
         		<a id="pl.18.15"></a><var>18.15</var>recommendations on the future implementation of the pilot project. <br />
         		<br />
         		<a id="bill.0.32.0"></a><a id="pl.18.16"></a><var>18.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. <b>APPROPRIATION REDUCTIONS.</b><br />
         		<a id="pl.18.17"></a><var>18.17</var>Any reduction in appropriations for the biennium ending June 30, 2011, for the <br />
         		<a id="pl.18.18"></a><var>18.18</var>central system office of Minnesota State Colleges and Universities must not be passed <br />
         		<a id="pl.18.19"></a><var>18.19</var>through to any institution or campus. The Board of Trustees of the Minnesota State <br />
         		<a id="pl.18.20"></a><var>18.20</var>Colleges and Universities must not charge any institution for appropriation reductions <br />
         		<a id="pl.18.21"></a><var>18.21</var>made to the central office.<br />
         		<br />
         		<a id="bill.0.33.0"></a><a id="pl.18.22"></a><var>18.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. <b> REPEALER.</b><br />
         		<a id="pl.18.23"></a><var>18.23</var>Minnesota Statutes 2008, section 136A.1701, subdivision 5, is repealed.<br />
         		
      </div>