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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 214-H.F.No. 2380 
                  An act relating to education; appropriating money for 
                  higher education and related purposes to the higher 
                  education services office, board of trustees of the 
                  Minnesota state colleges and universities, board of 
                  regents of the University of Minnesota, and the Mayo 
                  medical foundation, with certain conditions; requiring 
                  post-secondary institutions to provide certain 
                  information; modifying financial aid provisions; 
                  making technical changes to membership and terms of 
                  certain advisory councils, boards, and student 
                  associations; modifying curriculum provisions for 
                  Minnesota state colleges and universities; extending 
                  and transferring the farmer-lender mediation program 
                  to the Minnesota extension service; requiring certain 
                  reports to the legislature; clarifying and changing 
                  requirements of private career schools; amending 
                  Minnesota Statutes 1998, sections 16B.465, subdivision 
                  4; 135A.14, by adding a subdivision; 135A.155; 
                  136A.031, subdivision 3; 136A.121, subdivision 5; 
                  136A.125, subdivision 4; 136A.243, subdivision 7; 
                  136A.244, subdivision 2; 136A.245, subdivision 6; 
                  136F.02, subdivision 2; 136F.04, subdivision 1; 
                  136F.22, subdivision 1; 136F.32, subdivision 2, and by 
                  adding a subdivision; 141.21, subdivisions 3, 5, 6, 
                  and by adding subdivisions; 141.25, subdivisions 1, 2, 
                  3, 5, 6, 7, 8, 9, 10, and 12; 141.26, subdivision 2; 
                  141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12; 
                  141.28, subdivisions 3 and 5; 141.29, subdivision 1; 
                  141.31; 141.32; 141.35; 471.59, subdivision 1; and 
                  583.22, subdivision 5; Laws 1986, chapter 398, article 
                  1, section 18, as amended; proposing coding for new 
                  law in Minnesota Statutes, chapters 136A; 137; and 
                  141; repealing Minnesota Statutes 1998, sections 
                  136A.1359; 136A.136; 141.22; 141.25, subdivisions 9a, 
                  9b, and 11; and 141.36. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                                 APPROPRIATIONS 
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The sums in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or other named fund, to the 
        agencies and for the purposes specified in this article.  The 
        listing of an amount under the figure "2000" or "2001" in this 
        article indicates that the amount is appropriated to be 
        available for the fiscal year ending June 30, 2000, or June 30, 
        2001, respectively.  "The first year" is fiscal year 2000.  "The 
        second year" is fiscal year 2001.  "The biennium" is fiscal 
        years 2000 and 2001. 
                                SUMMARY BY FUND 
                                  2000          2001           TOTAL
        General            $1,277,440,000 $1,338,000,000 $2,615,440,000
        Health Care
        Access                  2,937,000      2,937,000      5,874,000
        Lottery Prize Fund        250,000        -0-            250,000
                         SUMMARY BY AGENCY - ALL FUNDS
                                  2000          2001           TOTAL
        Higher Education Services Office
                              149,926,000    160,527,000    310,453,000
        Board of Trustees of the Minnesota
        State Colleges and Universities
                              543,597,000    572,394,000  1,115,991,000
        Board of Regents of the University
        of Minnesota
                              585,558,000    606,379,000  1,191,937,000
        Mayo Medical Foundation
                                1,546,000      1,637,000      3,183,000
                                                  APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  2000         2001 
        Sec. 2.  HIGHER EDUCATION
        SERVICES OFFICE
        Subdivision 1.  Total
        Appropriation                        149,926,000    160,527,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  State Grants
            117,907,000       128,367,000
        If the appropriation in this 
        subdivision for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        The legislature intends that the higher 
        education services office make full 
        grant awards in each year of the 
        biennium.  
        For the biennium, the private 
        institution tuition maximum shall be 
        $8,300 in the first year and $8,550 in 
        the second year for four-year 
        institutions and $6,390 in the first 
        year and $6,580 in the second year for 
        two-year institutions. 
        This appropriation contains money to 
        set the living and miscellaneous 
        expense allowance at $5,075 in the 
        first year and $5,185 in the second 
        year. 
        This appropriation contains money to 
        match scholarship grants made under the 
        National Service Scholars program of 
        the Corporation for National Service to 
        students attending Minnesota high 
        schools and who will attend a Minnesota 
        post-secondary institution.  Not more 
        than one matching grant of $500 may be 
        made for each high school per year.  
        Subd. 3.  Interstate Tuition
        Reciprocity
             4,500,000      4,500,000
        If the appropriation in this 
        subdivision for either year is 
        insufficient, the appropriation for the 
        other year is available to meet 
        reciprocity contract obligations. 
        Subd. 4.  State Work Study
            12,444,000     12,444,000
        To assist the legislature in future 
        policy and appropriation decisions, the 
        office shall collect information from 
        all participating institutions on the 
        use of child care and work study 
        allocations.  For each program, the 
        data shall include at least the number 
        of recipients, the hours for which they 
        receive state money, payment per hour, 
        location of service, unmet demand, 
        returned and additional allocations, 
        and any institutional/system policies 
        that affect recipients.  The office 
        shall provide this information to the 
        higher education finance committees by 
        January 15, 2000. 
        Subd. 5.  Minitex Library Program
             4,948,000      4,968,000
        This appropriation is for Minitex and 
        MnLINK operations, the Minnesota 
        Library Access Center, licensing for 
        online table of contents, and licensing 
        for online journals including online 
        databases for MnLINK. 
        Subd. 6.  Learning Network of Minnesota
             5,178,000      5,179,000
        Subd. 7.  Income Contingent Loans
        The higher education services office 
        shall administer an income contingent 
        loan repayment program to assist 
        graduates of Minnesota schools in 
        medicine, dentistry, pharmacy, 
        chiropractic medicine, public health, 
        and veterinary medicine, and Minnesota 
        residents graduating from optometry and 
        osteopathy programs.  Applicant data 
        collected by the office for this 
        program may be disclosed to a consumer 
        credit reporting agency under the same 
        conditions as apply to the supplemental 
        loan program under Minnesota Statutes, 
        section 136A.162.  No new applicants 
        may be accepted after June 30, 1995.  
        The higher education services office 
        shall work with the office of the 
        senior vice-president for health 
        sciences at the University of Minnesota 
        to determine the borrowing and 
        repayment problems of students in the 
        academic health center.  The higher 
        education services office shall report 
        any findings and recommendations to the 
        higher education finance committees by 
        February 1, 2000. 
        Subd. 8.  Edvest 
             1,520,000      1,520,000 
        Notwithstanding Minnesota Statutes, 
        section 16C.05, subdivision 2, the 
        higher education services office may, 
        on a one-time basis, enter into a 
        contract up to eight years with a third 
        party vendor for purposes of starting 
        the Edvest program authorized in 
        Minnesota Statutes, section 136A.241. 
        Subd. 9.  Agency Administration
             3,429,000      3,549,000
        This appropriation includes money for 
        the Minnesota Minority Education 
        Partnership.  This appropriation 
        includes funding to foster 
        post-secondary attendance by providing 
        outreach services to historically 
        underserved groups of Minnesota 
        elementary and secondary students.  The 
        office may retain the entire 
        appropriation or contract with other 
        agencies or nonprofit organizations for 
        specific services in this effort. 
        Notwithstanding Laws 1994, chapter 643, 
        section 69, subdivision 2, the library 
        planning task force shall expire on 
        June 30, 2001. 
        Subd. 10.  Balances Forward 
        An unencumbered balance in the first 
        year under a subdivision in this 
        section does not cancel but is 
        available for the second year. 
        Subd. 11.  Transfers 
        The higher education services office 
        may transfer unencumbered balances from 
        the appropriations in this section to 
        the state grant appropriation, the 
        interstate tuition reciprocity 
        appropriation, the child care 
        appropriation, and the state work study 
        appropriation. 
        Sec. 3.  BOARD OF TRUSTEES OF THE
        MINNESOTA STATE COLLEGES AND UNIVERSITIES
        Subdivision 1.  Total
        Appropriation                        543,597,000    572,394,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Estimated Expenditures and Appropriations 
        The legislature estimates that 
        instructional expenditures will be 
        $678,729,000 in the first year and 
        $713,533,000 in the second year. 
        The legislature estimates that 
        noninstructional expenditures will be 
        $65,093,000 in the first year and 
        $66,723,000 in the second year. 
        The legislature intends that state 
        appropriations be used to strengthen 
        and support education of students.  To 
        this end, all money appropriated in 
        this section, except that in direct 
        support of system office activities, 
        shall be allocated by the board 
        directly to the colleges and 
        universities. 
        During the biennium, neither the board 
        nor campuses shall plan or develop 
        doctoral level programs or degrees 
        until after they have received the 
        recommendation of the house and senate 
        committees on education, finance, and 
        ways and means. 
        This appropriation includes an increase 
        of $5,000,000 in each year for 
        customized training and leveraged 
        equipment purchases.  
        This appropriation includes money for 
        repair and replacement of 
        state-financed facilities, a degree 
        audit reporting system, technology 
        infrastructure, Y2K, virtual 
        university, and ISEEK. 
        This appropriation includes $5,000,000 
        per year for grants to historically 
        underfunded institutions demonstrating 
        financial distress.  Grants must not 
        exceed $500,000.  The money must be 
        spent in support of instructional 
        programs or student services.  By 
        December 31 of each year, the system 
        shall report to the chairs of the 
        higher education finance committees on 
        the distribution of the grants. 
        This appropriation includes money to 
        increase access to the farm and small 
        business management programs by 
        expanding the capacity of the programs 
        and providing additional tuition 
        subsidies. 
        This appropriation includes money for 
        the Center for Research and Innovation 
        at Bemidji State University. 
        This appropriation includes money for 
        start-up funding for a rural research 
        center at Southwest State University. 
        This appropriation includes money for 
        the agriculture program at the Staples 
        campus of the Central Lakes college. 
        Metropolitan State University may 
        retain any money saved from a reduction 
        in lease costs at the 730 Hennepin 
        Avenue South site. 
        During the biennium, technical and 
        consolidated colleges shall make use of 
        instructional advisory committees 
        consisting of employers, students, and 
        instructors.  The instructional 
        advisory committee shall be consulted 
        when a technical program is proposed to 
        be created, modified, or eliminated.  
        If a decision is made to eliminate a 
        program, a college shall adequately 
        notify students and make plans to 
        assist students affected by the closure.
        The system shall prepare a budget plan 
        for the system office.  The plan shall 
        include budgeted expenditures for each 
        major division or program of the system 
        office.  The plan also shall include a 
        review of the current functions, 
        services, and programs managed or 
        provided by the system office.  The 
        review shall describe the purpose of 
        these activities and their cost; 
        analyze whether they are necessary and 
        how they benefit the colleges and 
        universities; and identify unnecessary 
        duplication of programs and services 
        provided at the system and 
        institutional levels.  The board shall 
        report to the higher education finance 
        committees by February 15, 2000, on its 
        findings and articulate an 
        organizational plan for the system 
        office. 
        In each year, the board of trustees 
        shall increase the percentage of the 
        total general fund expenditures for 
        direct instruction and academic 
        support, as reported in the federal 
        Integrated Postsecondary Education Data 
        System (IPEDS).  By February 15 of 2000 
        and 2001, the board of trustees shall 
        report to the higher education finance 
        committees the percentage of total 
        general fund expenditures spent on 
        direct instruction and on academic 
        support during the previous fiscal year 
        by institution and for the system as a 
        whole. 
        Before commencing any new program not 
        specifically authorized by law for 
        teachers of color and urban teachers, 
        the board shall evaluate existing 
        programs and determine whether to 
        expand or modify an existing program or 
        create a new program. 
        The board may waive tuition for 
        eligible Southwest Asia veterans, as 
        provided in Minnesota Statutes, section 
        136F.28. 
        Notwithstanding Minnesota Statutes, 
        section 136F.71, subdivision 1, a state 
        college shall retain revenues in excess 
        of costs for delivering customized 
        training programs.  The excess revenues 
        shall be used for expanding and 
        developing customized training programs.
        Subd. 3.  Health Care and Human
        Services Tuition Waiver
               100,000        100,000 
        This appropriation is from the health 
        care access fund for the board of 
        trustees to provide tuition waivers to 
        employees of health care or human 
        services providers located in this 
        state that are members of qualifying 
        consortia operating under sections to 
        be codified as Minnesota Statutes, 
        sections 116L.10 to 116L.15, as 
        provided in article 11, sections 3 to 8 
        of S.F. No. 2225, the second 
        engrossment, if enacted.  The 
        legislature intends that future funding 
        for this program not come from higher 
        education appropriations.* (The 
        preceding subdivision was vetoed by the 
        governor.) 
        Subd. 4.  Itasca Community College 
        The board of trustees of the Minnesota 
        state colleges and universities is 
        authorized to construct the following 
        facilities at Itasca community college: 
        (1) a two-classroom addition to be 
        located between the college center 
        building and Davies Hall.  The project 
        shall be paid for from lease revenue 
        supplied from nonstate sources; and (2) 
        an addition to the existing child care 
        center.  The project shall be paid for 
        from the appropriation in Laws 1997, 
        chapter 183, article 1, section 3, 
        subdivision 3, for pilot infant child 
        care programs and from matching money 
        from nonstate sources. 
        Subd. 5.  Winona State University Land
        Notwithstanding Minnesota Statutes, 
        sections 94.09 to 94.16, the board of 
        trustees may sell a parcel of Winona 
        State University land for no less than 
        its appraised value in a private sale 
        to resolve conflicting property 
        boundaries.  Money from the sale is 
        appropriated to the board to be 
        allocated to Winona State University. 
        Subd. 6.  Pine Technical College 
        The board may accept federal money for 
        and is authorized to construct an 
        advanced technology center building at 
        Pine technical college.  The 
        construction of the technology center 
        is contingent upon the receipt of the 
        federal money. 
        Sec. 4.  BOARD OF REGENTS OF THE 
        UNIVERSITY OF MINNESOTA 
        Subdivision 1.  Total
        Appropriation                        585,558,000    606,379,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Operations and
        Maintenance                          513,279,000    533,870,000
        Estimated Expenditures 
        and Appropriations 
        The legislature estimates that 
        instructional expenditures will be 
        $461,521,000 in the first year and 
        $484,679,000 in the second year. 
        The legislature estimates that 
        noninstructional expenditures will be 
        $202,367,000 in the first year and 
        $201,717,000 in the second year.  
        By January 30, 2000, the University 
        shall submit to the governor and the 
        legislature a master academic plan for 
        the Rochester region that clearly 
        defines the academic needs of the 
        region, short and long-term plans to 
        address those needs including the 
        designation of responsibility among the 
        partner institutions, short and 
        long-term demographic and enrollment 
        projections, physical plant capacity 
        and needs, and a delineation of 
        missions among the partner institutions 
        to avoid competition and duplication. 
        Notwithstanding Minnesota Statutes 
        1998, section 137.022, subdivision 4, 
        in fiscal year 2001 the first $200,000 
        of permanent university fund income 
        from royalties for mining under state 
        mineral leases designated for the 
        natural resources research institute 
        shall be allocated by the board of 
        regents to the department of landscape 
        architecture to develop a long-range 
        plan for the reclamation of taconite 
        mining lands.  The board shall allocate 
        the money only if an equal or greater 
        amount of matching money from nonstate 
        sources has been pledged to support the 
        project by June 30, 2000. 
        The University of Minnesota academic 
        health center, after consultation with 
        the health care community and medical 
        education and research costs advisory 
        committee, shall report by January 15, 
        2000, to the higher education finance 
        committees on the strategic direction 
        of its health professional programs.  
        The plans shall include a programmatic 
        and financial model for health 
        professional education that will meet 
        the state's future workforce needs, 
        maintain the integrity of the education 
        process, provide an appropriate level 
        of ongoing financial support, and 
        provide a framework for the health 
        community and academic health center to 
        work together in meeting the health 
        needs of the state.  The academic 
        health center is requested to provide 
        the report also to the commissioner of 
        health and the legislative commission 
        on health care access. 
        Subd. 3.  Health Care Access Fund 
        $2,837,000 each year is appropriated 
        from the health care access fund for 
        primary care education initiatives, 
        which is a one-time increase of 
        $300,000 each year over the base 
        funding. 
        Subd. 4.  Compulsive Gambling Research Funding 
        $250,000 from the lottery prize fund 
        shall be appropriated on a one-time 
        basis to the board of regents of the 
        University of Minnesota for the 
        academic health center to conduct 
        research, clinical work, treatment, or 
        teaching related to compulsive gambling 
        addiction.* (The preceding subdivision 
        was vetoed by the governor.) 
        Subd. 5.  Special
        Appropriation                         72,279,000     72,509,000
        The amounts expended for each program 
        in the four categories of special 
        appropriations shall be separately 
        identified in the 2001 biennial budget 
        document. 
        (a) Agriculture and Extension Service 
            57,588,000     57,588,000
        This appropriation is for the 
        Agricultural Experiment Station, 
        Minnesota Extension Service, regional 
        sustainable agriculture partnerships, 
        initiatives designed to sustain 
        Minnesota's renewable natural 
        resource-based industries, and for a 
        rapid agricultural response fund to 
        conduct research to solve problems 
        affecting agricultural products 
        including, but not limited to spring 
        wheat, barley, potatoes, grapes and 
        wine, canola, and turkeys. 
        Any salary increases granted by the 
        University to personnel paid from the 
        Minnesota Extension appropriation must 
        not result in a reduction of the county 
        responsibility for the salary payments. 
        During the biennium, the University 
        shall maintain an advisory council 
        system for each experiment station.  
        The advisory councils must be broadly 
        representative of range of size and 
        income distribution of farms and 
        agribusinesses and must not 
        disproportionately represent those from 
        the upper half of the size and income 
        distributions.  
        (b) Health Sciences 
             5,789,000      5,846,000
        This appropriation is for rural 
        physicians associates program, the 
        Veterinary Diagnostic Laboratory, 
        health sciences research, dental care, 
        and the Biomedical Engineering Center. 
        (c) Institute of Technology  
             1,600,000      1,645,000
        This appropriation is for the 
        Geological Survey and the Talented 
        Youth Mathematics Program. 
        (d) System Specials 
             7,302,000      7,430,000
        This appropriation is for general 
        research, student loans matching money, 
        industrial relations education, Natural 
        Resources Research Institute, Center 
        for Urban and Regional Affairs, Bell 
        Museum of Natural History, and the 
        Humphrey exhibit. 
        Sec. 5.  MAYO MEDICAL FOUNDATION 
        Subdivision 1.  Total
        Appropriation                           1,546,000       1,637,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Medical School
               554,000        605,000
        The state of Minnesota shall pay a 
        capitation of $13,200 in the first year 
        and $14,405 in the second year for each 
        student who is a resident of 
        Minnesota.  The appropriation may be 
        transferred between years of the 
        biennium to accommodate enrollment 
        fluctuations. 
        The legislature intends that during the 
        biennium the Mayo foundation use the 
        capitation money to increase the number 
        of doctors practicing in rural areas in 
        need of doctors.  
        Subd. 3.  Family Practice and
        Graduate Residency Program
               601,000        625,000
        The state of Minnesota provides a 
        capitation of $21,455 in the first year 
        and $22,315 in the second year for each 
        student.  The rural training program 
        capitation is $42,910 the first year 
        and $44,630 the second year for one 
        resident. 
        Subd. 4.  St. Cloud Hospital-Mayo 
        Family Practice Residency Program 
               391,000        407,000
        This appropriation is to the Mayo 
        foundation to support 12 resident 
        physicians each year in the St. Cloud 
        Hospital-Mayo Family Practice Residency 
        program.  The program shall prepare 
        doctors to practice primary care 
        medicine in the rural areas of the 
        state.  It is intended that this 
        program will improve health care in 
        rural communities, provide affordable 
        access to appropriate medical care, and 
        manage the treatment of patients in a 
        more cost-effective manner. 
                                   ARTICLE 2 
                               RELATED PROVISIONS 
           Section 1.  Minnesota Statutes 1998, section 16B.465, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
        require the participation of state agencies, and the state board 
        of education, and the board of trustees of the Minnesota state 
        colleges and universities and may request the participation of 
        the board of regents of the University of Minnesota and the 
        board of trustees of the Minnesota state colleges and 
        universities, in the planning and implementation of the network 
        to provide interconnective technologies.  The commissioner shall 
        establish reimbursement rates in cooperation with the 
        commissioner of finance to be billed to participating agencies 
        and educational institutions sufficient to cover the operating, 
        maintenance, and administrative costs of the system. 
           (b) A direct appropriation made to an educational 
        institution for usage costs associated with the state 
        information infrastructure must only be used by the educational 
        institution for payment of usage costs of the network as billed 
        by the commissioner of administration. 
           Sec. 2.  Minnesota Statutes 1998, section 135A.14, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [HEPATITIS INFORMATION.] All public and private 
        post-secondary education institutions shall provide information 
        regarding the transmission, treatment, and prevention of 
        hepatitis A, B, and C, to all persons who are first-time 
        enrollees.  The department of health shall be consulted 
        regarding the preparation of these materials. 
           Sec. 3.  Minnesota Statutes 1998, 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 must be provided to students when 
        they register and must be 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 post-secondary institution that is an eligible 
        institution as defined in section 136A.101, subdivision 4, must 
        adopt a policy that meets the requirements of this section.  
           Sec. 4.  Minnesota Statutes 1998, section 136A.031, 
        subdivision 3, is amended to read: 
           Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
        council (SAC) to the higher education services council is 
        established.  The members of SAC shall include:  the chair of 
        the University of Minnesota student senate,; the state chair of 
        the Minnesota state university student association, the 
        president of the Minnesota community college student 
        association, the president of the Minnesota technical college 
        student association,; the president of the Minnesota state 
        college student association and an officer of the Minnesota 
        state college student association, one in a community college 
        course of study and one in a technical college course of study; 
        the president of the Minnesota association of private college 
        students,; and a student who is enrolled in a private vocational 
        school, to be appointed by the Minnesota association of private 
        post-secondary schools.  A member may be represented by a 
        student designee who attends an institution from the same system 
        that the absent member represents.  The SAC shall select one of 
        its members to serve as chair. 
           The higher education services council shall inform the SAC 
        of all matters related to student issues under consideration and 
        shall refer all proposals to the SAC before taking action or 
        sending the proposals to the governor or legislature.  The SAC 
        shall report to the higher education services council quarterly 
        and at other times that the SAC considers desirable.  The SAC 
        shall determine its meeting times, but it shall also meet with 
        the council within 30 days after the director's request for a 
        meeting. 
           The SAC shall: 
           (1) bring to the attention of the higher education services 
        council any matter that the SAC believes needs the attention of 
        the council; 
           (2) make recommendations to the higher education services 
        council as it finds appropriate; 
           (3) appoint student members to the higher education 
        services council advisory groups as provided in subdivision 4; 
        and 
           (4) provide any reasonable assistance to the council. 
           Sec. 5.  Minnesota Statutes 1998, section 136A.121, 
        subdivision 5, is amended to read: 
           Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
        based on a sharing of responsibility for covering the recognized 
        cost of attendance by the applicant, the applicant's family, and 
        the government.  The amount of a financial stipend must not 
        exceed a grant applicant's recognized cost of attendance, as 
        defined in subdivision 6, after deducting the following:  
           (1) the assigned student responsibility of at least 47 46 
        percent of the cost of attending the institution of the 
        applicant's choosing; 
           (2) the assigned family responsibility as defined in 
        section 136A.101; and 
           (3) the amount of a federal Pell grant award for which the 
        grant applicant is eligible. 
           The minimum financial stipend is $300 $100 per academic 
        year. 
           Sec. 6.  [136A.1211] [USE OF STATE GRANT SAVINGS.] 
           Savings in the state grant program resulting from an 
        increase in the maximum federal Pell grant from the anticipated 
        level of $3,125 shall be used by the office to increase the 
        living and miscellaneous expense allowance. 
           Sec. 7.  Minnesota Statutes 1998, section 136A.125, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
        child care grant must be based on: 
           (1) the income of the applicant and the applicant's spouse, 
        if any; 
           (2) the number in the applicant's family, as defined by the 
        office; and 
           (3) the number of eligible children in the applicant's 
        family.  
           The maximum award to the applicant shall be $2,000 for each 
        eligible child per academic year, except that the campus 
        financial aid officer may apply to the office for approval to 
        increase grants by up to ten percent to compensate for higher 
        market charges for infant care in a community.  The office shall 
        develop policies to determine community market costs and review 
        institutional requests for compensatory grant increases to 
        ensure need and equal treatment.  The office shall prepare a 
        chart to show the amount of a grant that will be awarded per 
        child based on the factors in this subdivision.  The chart shall 
        include a range of income and family size. 
           Sec. 8.  Minnesota Statutes 1998, section 136A.243, 
        subdivision 7, is amended to read: 
           Subd. 7.  [MARKETING.] The director shall make parents and 
        other interested individuals aware of the availability and 
        advantages of the program as a way to save for higher education 
        costs.  The cost of these promotional efforts must be paid 
        entirely from state general fund appropriations and may not be 
        funded with fees imposed on participants. 
           Sec. 9.  Minnesota Statutes 1998, section 136A.244, 
        subdivision 2, is amended to read: 
           Subd. 2.  [PERMITTED INVESTMENTS.] The board may invest the 
        accounts in any permitted investment under section 11A.24, 
        except that the accounts may be invested without limit in 
        investment options from open-ended investment companies 
        registered under the federal Investment Company Act of 1940, 
        United States Code, title 15, sections 80a-1 to 80a-64.  
           Sec. 10.  Minnesota Statutes 1998, section 136A.245, 
        subdivision 6, is amended to read: 
           Subd. 6.  [PRIVATE CONTRIBUTIONS.] (a) The office may 
        solicit and accept contributions from private corporations, 
        other businesses, foundations, employers, or individuals to 
        provide: 
           (1) matching grants under this section in addition to those 
        funded with direct appropriations; or 
           (2) grants to students who withdraw money from accounts 
        established under the program; or 
           (3) contributions to an account on behalf of a beneficiary. 
           (b) Amounts contributed may only be used for those 
        purposes.  Amounts contributed are appropriated to the director 
        to make grants for the purposes of this subdivision. 
           (c) Contributors may designate a specific field of study, 
        geographic area, or other criteria that govern use of the grants 
        funded with their contributions, but may not discriminate on the 
        basis of race, ethnicity, or gender.  The office may refuse 
        contributions that are subject, in the judgment of the director, 
        to unacceptable conditions on their use. 
           Sec. 11.  Minnesota Statutes 1998, section 136F.02, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 
        compensation, removal of members, and filling of vacancies on 
        the board are as provided in section 15.0575.  Members are 
        appointed for a term of six years, except that the term of each 
        of the student members is two years.  Terms end on June 30, 
        except that members may serve until their successors are 
        appointed. 
           Sec. 12.  Minnesota Statutes 1998, section 136F.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [RESPONSIBILITY.] Notwithstanding section 
        136F.03, the statewide community college student association, 
        state university student association, and technical the state 
        college student association shall each have the responsibility 
        for recruiting, screening, and recommending qualified candidates 
        for its their student member members of the board. 
           Sec. 13.  Minnesota Statutes 1998, section 136F.22, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEWIDE.] The board shall recognize one 
        statewide student association for the community colleges, one 
        for the state universities, and one for the community and 
        technical colleges.  Each campus student association shall be 
        affiliated with its statewide student association and all 
        students enrolled on those campuses shall be members of their 
        respective statewide association. 
           Sec. 14.  Minnesota Statutes 1998, section 136F.32, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 
        (a) A technical college or consolidated technical community 
        college shall offer students the option of pursuing diplomas and 
        certificates in each technical education program, unless the 
        board determines that this is not practicable for certain 
        programs a degree is the only acceptable credential for career 
        entry in a specific field.  All vocational and technical credits 
        earned for a diploma or certificate shall be applicable toward 
        any available degree in the same program.  
           (b) Certificates and diplomas are credentials that 
        demonstrate competence in a vocational or technical area and, 
        therefore, may include a general education component only as 
        part of an articulation agreement or to meet occupational 
        requirements as established by the trade or profession, or by 
        the program advisory committee.  Students shall be provided with 
        applied training in general studies as necessary for competence 
        in the program area.  Students who have earned a certificate or 
        diploma may earn a degree in the same field if they complete the 
        general education and other degree requirements. 
           Sec. 15.  Minnesota Statutes 1998, section 136F.32, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [ASSESSMENT.] To reduce barriers to enrollment 
        and to train a skilled workforce, students may be assessed for 
        skills necessary for competency in a technical or vocational 
        field as part of their program.  The results of standardized 
        assessment tests shall not prohibit enrollment in a student's 
        certificate or diploma program. 
           Sec. 16.  [137.17] [ROCHESTER BRANCH.] 
           Subdivision 1.  [ESTABLISH.] The board of regents may 
        establish a school of professional and graduate studies as a 
        nonresidential branch campus of the University of Minnesota, 
        Rochester, to serve the needs of working adults and other 
        nontraditional students in southeastern Minnesota.  The campus 
        shall be a joint partnership of the University of Minnesota with 
        Rochester community and technical college, and Winona state 
        university.  
           The board of trustees of the Minnesota state colleges and 
        universities shall cooperate to achieve the foregoing. 
           Subd. 2.  [LEADERSHIP.] The legislature intends that the 
        Rochester branch strengthen the existing partnership of 
        institutions in Rochester by providing better coordination and 
        leadership in serving the needs of the region, while maintaining 
        a cooperative basis among the institutions.  The University of 
        Minnesota is expected to take the leadership role in assessing 
        community needs and facilitating the delivery of upper division 
        and graduate academic programming and student services by 
        existing higher education providers.  It is the intent of the 
        legislature that this branch not diminish the role or function 
        of existing higher education institutions in Rochester or 
        elsewhere in the region in which the state already has a 
        significant investment. 
           Subd. 3.  [MISSIONS.] The legislature recognizes that the 
        distinctiveness of each of the partner institutions in Rochester 
        must be maintained to achieve success in serving the higher 
        education needs of the community and the economic goals of the 
        state.  Further, the legislature intends that the University of 
        Minnesota and the other partner institutions avoid duplicative 
        offerings of courses and programs.  Therefore, the University of 
        Minnesota, Winona state university, and Rochester community and 
        technical college shall develop jointly a statement of missions, 
        roles, and responsibilities for the programs and services at 
        Rochester which shall be submitted to the legislature by January 
        30, 2000, and any time thereafter that the missions, roles, and 
        responsibilities change. 
           Subd. 4.  [CHANGES.] Major changes in the missions, 
        programs, services or roles of the partner institutions shall be 
        made in full consultation with the partner institutions and the 
        systems. 
           Sec. 17.  Minnesota Statutes 1998, section 471.59, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AGREEMENT.] Two or more governmental 
        units, by agreement entered into through action of their 
        governing bodies, may jointly or cooperatively exercise any 
        power common to the contracting parties or any similar powers, 
        including those which are the same except for the territorial 
        limits within which they may be exercised.  The agreement may 
        provide for the exercise of such powers by one or more of the 
        participating governmental units on behalf of the other 
        participating units.  The term "governmental unit" as used in 
        this section includes every city, county, town, school district, 
        other political subdivision of this or another state, another 
        state, the University of Minnesota, and any agency of the state 
        of Minnesota or the United States, and includes any 
        instrumentality of a governmental unit.  For the purpose of this 
        section, an instrumentality of a governmental unit means an 
        instrumentality having independent policy making and 
        appropriating authority. 
           Sec. 18.  Minnesota Statutes 1998, section 583.22, 
        subdivision 5, is amended to read: 
           Subd. 5.  [DIRECTOR.] "Director" means the director of 
        the conflict and change center at the University of Minnesota's 
        Humphrey Institute Minnesota extension service or the director's 
        designee. 
           Sec. 19.  Laws 1986, chapter 398, article 1, section 18, as 
        amended by Laws 1987, chapter 292, section 37; Laws 1989, 
        chapter 350, article 16, section 8; Laws 1990, chapter 525, 
        section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
        Special Session chapter 2, article 6, section 2; Laws 1995, 
        chapter 212, article 2, section 11; Laws 1997, chapter 183, 
        article 3, section 29; Laws 1998, chapter 395, section 7; and 
        Laws 1998, chapter 402, section 6, is amended to read: 
           Sec. 18.  [REPEALER.] 
           Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
        subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
        and 583.305, are repealed on July 1, 1999 2001. 
           Sec. 20.  [METRO PLAN AND SPACE UTILIZATION REPORT.] 
           By September 30, 1999, the board of trustees of the 
        Minnesota state colleges and universities shall submit to the 
        legislature the master academic plan for the metropolitan area 
        as required under Laws 1996, chapter 395, section 3, paragraph 
        (e), and a systemwide space utilization report. 
           Sec. 21.  [LEARNING NETWORK II.] 
           The Minnesota education telecommunications council, in 
        conjunction with the higher education advisory council, shall 
        develop a plan for the governance, financing, and implementation 
        of the learning network II.  The councils shall report on the 
        plan to the legislature by January 15, 2000. 
           Sec. 22.  [CHILD CARE STUDY.] 
           The commissioners of human services and children, families, 
        and learning shall review child care program requirements for 
        Minnesota family investment program participants, to determine 
        how to better serve those participants who are approved for a 
        work plan, but are attending school part time without child care 
        eligibility.  As soon as practicable, the commissioners shall 
        implement adjustments to program requirements that they deem 
        appropriate.  The commissioners shall report on adjustments 
        implemented, if any, and their recommendations for necessary 
        statutory changes to the appropriate committees of the 
        legislature by February 1, 2000. 
           Sec. 23.  [SHORT-TERM HEALTH CARE CURRICULA.] 
           By July 1, 2000, the board of trustees of the Minnesota 
        state colleges and universities, in consultation with relevant 
        industries, shall develop a short-term, competency-based, 
        standardized curricula in health care patient services and 
        community support services for persons with long-term care 
        needs.  The standardized curricula must provide knowledge that 
        is applicable to persons employed in a wide range of health care 
        settings and human services settings, including home health care 
        assistants, personal care assistants, and certified nursing 
        assistants.  By July 1, 2000, the board shall offer certificates 
        and two-year associate degrees that articulate into four-year 
        educational programs in health care services and in human 
        services.  The board shall report to the legislature by February 
        15, 2000, on its progress on implementing this section. 
           Sec. 24.  [REPEALER.] 
           Minnesota Statutes 1998, sections 136A.1359; and 136A.136, 
        are repealed June 30, 1999. 
           Sec. 25.  [EFFECTIVE DATE.] 
           (a) Section 1 is effective July 1, 2000. 
           (b) The change in the student share of the cost of 
        attendance under section 5 is effective July 1, 2000. 
           (c) Section 19 is effective the day following final 
        enactment. 
                                   ARTICLE 3 
                             PRIVATE CAREER SCHOOLS 
           Section 1.  [141.20] [CITATION.] 
           Sections 141.20 to 141.35 may be cited as the Private 
        Career School Act. 
           Sec. 2.  Minnesota Statutes 1998, section 141.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SOLICITOR.] "Solicitor" means a person who for a 
        salary or for commission, acts as an agent, independent 
        contractor, salesperson, or counselor in procuring or attempting 
        to procure recruiting students or enrollees for a course of 
        instruction by solicitation in program using any form made 
        method, at any place except on the actual business premises of 
        the school and except for rendering, other than only providing 
        public information service at the invitation or permission of a 
        school or educational organization.  
           Sec. 3.  Minnesota Statutes 1998, section 141.21, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SCHOOL.] "School" means any person, within or 
        without outside the state, that who maintains, advertises, 
        solicits, or conducts any course of instruction program for 
        profit or for a tuition charge at any level other than 
        baccalaureate or graduate programs, and which is not 
        specifically exempted by the provisions of sections 141.21 to 
        141.36 141.35.  
           Sec. 4.  Minnesota Statutes 1998, section 141.21, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COURSE OF INSTRUCTION.] "Course of instruction" 
        means any classroom, correspondence, or extension course of or 
        distance instruction; any subunit of a program; or any 
        combination thereof.  
           Sec. 5.  Minnesota Statutes 1998, section 141.21, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [PROGRAM.] "Program" means any course or grouping 
        of courses that is advertised or listed in a school's catalog, 
        brochures, electronic display, or other publications, or for 
        which the school grants a formal recognition. 
           Sec. 6.  Minnesota Statutes 1998, section 141.21, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [DISTANCE EDUCATION SCHOOL.] "Distance education 
        school" means a school that establishes, keeps, or maintains a 
        facility or location where a program is offered through distance 
        instruction. 
           Sec. 7.  Minnesota Statutes 1998, section 141.21, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [DISTANCE INSTRUCTION.] "Distance instruction" 
        means any method of instruction outside the traditional 
        in-classroom instruction, including, but not limited to, the use 
        of the United States mail and other correspondence; Internet and 
        other online computer-based education; or CD-ROM 
        self-instruction. 
           Sec. 8.  Minnesota Statutes 1998, section 141.21, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [ELECTRONIC DISPLAY.] "Electronic display" means 
        text, images, or sound rendered via any electronic device 
        designed to present information, whether generated by the device 
        or transmitted from another source. 
           Sec. 9.  Minnesota Statutes 1998, section 141.25, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUIRED.] No A school shall must not 
        maintain, advertise, solicit for, or conduct any course of 
        instruction program in Minnesota without first obtaining a 
        license from the office.  
           Sec. 10.  Minnesota Statutes 1998, section 141.25, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTRACT UNENFORCEABLE.] Any A contract entered 
        into with any a person for a course of instruction after 
        November 15, 1969, program by or on behalf of any a person 
        operating any a school to which a license has not been 
        issued pursuant to under sections 141.21 to 141.36 
        141.35, shall be is unenforceable in any action brought 
        thereon.  
           Sec. 11.  Minnesota Statutes 1998, section 141.25, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION.] Application for a license shall be 
        on forms prepared and furnished by the office, and shall contain 
        include the following and such other information as the office 
        may require: 
           (a) (1) the title or name of the school, together with 
        ownership and controlling officers, members, managing employees, 
        and director; 
           (b) (2) the specific fields of instruction programs which 
        will be offered and the specific purposes of such the 
        instruction; 
           (c) (3) the place or places where such the instruction will 
        be given; 
           (d) (4) a listing of the equipment available for 
        instruction in each course of instruction program; 
           (e) (5) the maximum enrollment to be accommodated with 
        equipment available in each specified course of instruction 
        program; 
           (f) (6) the qualifications of instructors and supervisors 
        in each specified course of instruction program; 
           (g) (7) a current balance sheet, income statement, and 
        adequate supporting documentation, prepared and certified by an 
        independent public accountant or CPA; 
           (h) (8) copies of all media advertising and promotional 
        literature and brochures or electronic display currently used or 
        reasonably expected to be used by such the school; 
           (i) (9) copies of all Minnesota enrollment agreement forms 
        and contract forms and all enrollment agreement forms and 
        contract forms used in Minnesota; and 
           (10) gross income earned in the preceding year from student 
        tuition, fees, and other required institutional charges, unless 
        the school files with the office a surety bond equal to at least 
        $50,000 as described in subdivision 5.  
           Sec. 12.  Minnesota Statutes 1998, section 141.25, 
        subdivision 5, is amended to read: 
           Subd. 5.  [BOND.] (a) No license shall be issued to any 
        school which maintains, conducts, solicits for, or advertises 
        within the state of Minnesota any course of instruction program, 
        unless the applicant files with the office a continuous 
        corporate surety bond in the sum of $10,000 written by a company 
        authorized to do business in Minnesota conditioned upon the 
        faithful performance of all contracts and agreements with 
        students made by the applicant.  Such 
           (b) The amount of the surety bond shall be ten percent of 
        the preceding year's gross income from student tuition, fees, 
        and other required institutional charges, but in no event less 
        than $10,000 nor greater than $50,000, except that a school may 
        deposit a greater amount at its own discretion.  A school in 
        each annual application for licensure must compute the amount of 
        the surety bond and verify that the amount of the surety bond 
        complies with this subdivision, unless the school maintains a 
        surety bond equal to at least $50,000.  A school that operates 
        at two or more locations may combine gross income from student 
        tuition, fees, and other required institutional charges for all 
        locations for the purpose of determining the annual surety bond 
        requirement.  The gross tuition and fees used to determine the 
        amount of the surety bond required for a school having a license 
        for the sole purpose of recruiting students in Minnesota shall 
        be only that paid to the school by the students recruited from 
        Minnesota. 
           (c) The bond shall run to the state of Minnesota and to any 
        person who may have a cause of action against the applicant 
        arising at any time after the bond is filed and before it is 
        canceled for breach of any contract or agreement made by the 
        applicant with any student.  The aggregate liability of the 
        surety for all breaches of the conditions of the bond shall not 
        exceed the principal sum of $10,000 deposited by the school 
        under paragraph (b).  The surety of any such bond may cancel it 
        upon giving 60 days' notice in writing to the office and shall 
        be relieved of liability for any breach of condition occurring 
        after the effective date of cancellation. 
           (d) In lieu of bond, the applicant may deposit with the 
        state treasurer the a sum of $10,000 equal to the amount of the 
        required surety bond in cash, or securities such as may be 
        legally purchased by savings banks or for trust funds in an 
        aggregate market value of $10,000 equal to the amount of the 
        required surety bond.  
           (e) Failure of a school to post and maintain the required 
        surety bond or deposit under paragraph (d) may result in denial, 
        suspension, or revocation of the school's license.  
           Sec. 13.  Minnesota Statutes 1998, section 141.25, 
        subdivision 6, is amended to read: 
           Subd. 6.  [RESIDENT AGENT.] Schools domiciled located 
        outside the state of Minnesota which that offer, advertise, 
        solicit for, or conduct any course of instruction program within 
        the state of Minnesota shall first file with the secretary of 
        state a sworn statement designating a resident agent authorized 
        to receive service of process.  Such The statement shall 
        designate the secretary of state as resident agent for service 
        of process in the absence of an a designated agent otherwise so 
        designated.  In the event If a school fails to file such the 
        statement, the secretary of state is hereby designated as the 
        resident agent authorized to receive service of process.  Such 
        The authorization shall be irrevocable as to causes of action 
        arising out of transactions occurring prior to the filing of 
        written notice of withdrawal from the state of Minnesota filed 
        with the secretary of state.  
           Sec. 14.  Minnesota Statutes 1998, section 141.25, 
        subdivision 7, is amended to read: 
           Subd. 7.  [MINIMUM STANDARDS.] No A license shall be issued 
        unless if the office first determines: 
           (a) (1) that the applicant has a sound financial condition 
        with sufficient resources available to: 
           (i) meet the school's financial obligations; to 
           (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; to 
           (iii) provide adequate service to its students and 
        prospective students; and for the proper use 
           (iv) maintain and support of the school to be maintained; 
           (b) (2) that the applicant has satisfactory training 
        facilities with sufficient tools and equipment and the necessary 
        number of work stations to train prepare adequately the students 
        currently enrolled, and those proposed to be enrolled; 
           (c) (3) that the applicant employs a sufficient number of 
        qualified instructors trained by experience and education 
        teaching personnel to give provide the training educational 
        programs contemplated; 
           (d) (4) that the school has an organizational framework 
        with administrative and instructional personnel to provide the 
        programs and services it intends to offer; 
           (5) that the premises and conditions under which the 
        students work and study are sanitary, healthful, and safe, 
        according to modern standards; 
           (e) (6) that the quality and content of each occupational 
        course or program of instruction or study shall be of such 
        quality and content as to provide provides education and 
        training which will adequately prepare adequate preparation to 
        enrolled students for entry level positions in the occupation 
        for which trained prepared; 
           (f) (7) that the living quarters which are owned, 
        maintained, or approved by the applicant for students are 
        sanitary and safe; 
           (g) (8) that the contract or enrollment agreement used by 
        the school complies with the following provisions: in section 
        141.265; 
           (1) the name and address of the school must be clearly 
        stated; 
           (2) inclusion of a clear and conspicuous disclosure that 
        such agreement becomes a legally binding instrument upon written 
        acceptance of the student by the school unless canceled pursuant 
        to section 141.271; 
           (3) must contain the school's cancellation and refund 
        policy which shall be clearly and conspicuously entitled, 
        "Buyer's Right to Cancel"; 
           (4) the total cost of the course including tuition and all 
        other charges shall be clearly stated; 
           (5) the name and description of the course, including the 
        number of hours or credits of classroom instruction and/or home 
        study lessons shall be included; 
           (6) no contract or agreement shall (9) that contracts and 
        agreements do not contain a wage assignment provision and/or or 
        a confession of judgment clause; and 
           (7) each contract or enrollment agreement shall contain a 
        clear and conspicuous explanation of the form and means of 
        notice the student should use in the event the student elects to 
        cancel the contract or sale, the effective date of cancellation, 
        and the name and address of the seller to which the notice 
        should be sent or delivered; and 
           (h) (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. 15.  Minnesota Statutes 1998, section 141.25, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications An 
        application for an initial license under sections 141.21 
        to 141.36 141.35 shall be accompanied by a nonrefundable 
        application fee established by the office that is sufficient to 
        recover, but not exceed, its administrative costs. 
           (b) All licenses shall expire one year from the date issued 
        by the office, except as provided in section 141.251.  Each 
        renewal application shall be accompanied by a nonrefundable 
        renewal fee established by the office that is sufficient to 
        recover, but does not exceed, its administrative costs.  
           (c) Application for renewal of license shall be made at 
        least 30 days before the expiration of the school's current 
        license.  Each renewal form shall be supplied by the office.  It 
        shall not be necessary for an applicant to supply all 
        information required in the initial application at the time of 
        renewal unless requested by the office.  
           Sec. 16.  Minnesota Statutes 1998, section 141.25, 
        subdivision 9, is amended to read: 
           Subd. 9.  [CATALOG OR, BROCHURE, OR ELECTRONIC DISPLAY.] 
        Before a license is issued to a school, other than one which 
        offers exclusively a correspondence course of instruction, the 
        school shall furnish to the office a catalog or, brochure 
        containing the following, or electronic display including: 
           (1) identifying data, such as volume number and date of 
        publication; 
           (2) name and address of the school and its governing body 
        and officials; 
           (3) a calendar of the school showing legal holidays, 
        beginning and ending dates of each course quarter, term, or 
        semester, and other important dates; 
           (4) the school policy and regulations on enrollment 
        including dates and specific entrance requirements for 
        each course program; 
           (5) the school policy and regulations about leave, 
        absences, class cuts, make-up work, tardiness, and interruptions 
        for unsatisfactory attendance; 
           (6) the school policy and regulations about standards of 
        progress for the student including the grading system of the 
        school, the minimum grades considered satisfactory, conditions 
        for interruption for unsatisfactory grades or progress, a 
        description of any probationary period allowed by the school, 
        and conditions of reentrance for those dismissed for 
        unsatisfactory progress; 
           (7) the school policy and regulations about student conduct 
        and conditions for dismissal for unsatisfactory conduct; 
           (8) a detailed schedule of fees, charges for tuition, 
        books, supplies, tools, student activities, laboratory fees, 
        service charges, rentals, deposits, and all other charges; 
           (9) the school policy and regulations, including an 
        explanation of section 141.271, about refunding tuition, fees, 
        and other charges if the student does not enter the course 
        program, withdraws from the program, or the program is 
        discontinued; 
           (10) a description of the available facilities and 
        equipment; 
           (11) a course outline for each course offered showing 
        course objectives, subjects or units in the course, type of work 
        or skill to be learned, and approximate time, hours, or credits 
        to be spent on each subject or unit; and 
           (12) the school policy and regulations about granting 
        credit for previous education and training preparation; 
           (13) a procedure for investigating and resolving student 
        complaints; and 
           (14) the name and address of the Minnesota higher education 
        services office. 
           A school that is exclusively a distance education school is 
        exempt from clauses (3) and (5). 
           Sec. 17.  Minnesota Statutes 1998, section 141.25, 
        subdivision 10, is amended to read: 
           Subd. 10.  [PLACEMENT RECORDS.] (a) Before a license is 
        issued to a school that offers, advertises or implies a 
        placement service, the school shall file with the office for the 
        past year and thereafter at reasonable intervals determined by 
        the office, a certified copy of the school's placement record, 
        containing a list of graduates, a description of their job jobs, 
        name names of their employer employers, and other information as 
        the office may prescribe.  
           (b) Each school that offers a placement service shall 
        furnish to each prospective student, prior to enrollment, 
        written information concerning the percentage of the previous 
        year's graduates who were placed in the occupation for which 
        trained prepared or in related employment. 
           Sec. 18.  Minnesota Statutes 1998, section 141.25, 
        subdivision 12, is amended to read: 
           Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
        to a school, each A school licensed under this chapter and 
        located in Minnesota shall maintain a permanent records record 
        for all students enrolled at any time each student for 50 years 
        from the last date of the student's attendance.  Each A school 
        licensed under this chapter and offering a correspondence course 
        of instruction distance instruction to a student located in 
        Minnesota shall maintain a permanent records record for each 
        Minnesota students enrolled at any time student for 50 years 
        from the last date of the student's attendance.  Records include 
        school transcripts, documents, and files containing student data 
        about academic credits earned, courses completed, grades 
        awarded, degrees awarded, and periods of attendance.  To 
        preserve permanent records, a school shall submit a plan that 
        meets the following requirements: 
           (a) (1) at least one copy of the records must be held in a 
        secure depository; 
           (b) (2) an appropriate official must be designated to 
        provide a student with copies of records or a transcript upon 
        request; 
           (c) (3) an alternative method of complying with paragraphs 
        (a) and (b) clauses (1) and (2) must be established if the 
        school ceases to exist; and 
           (d) (4) a continuous surety bond must be filed with the 
        office in an amount not to exceed $20,000 if the school has no 
        binding agreement for preserving student records or a trust must 
        be arranged if the school ceases to exist. 
           Sec. 19.  [141.251] [LICENSE RENEWAL.] 
           Subdivision 1.  [APPLICATION.] Application for renewal of a 
        license must be made at least 30 days before expiration of the 
        current license on a form provided by the office.  A renewal 
        application shall be accompanied by a nonrefundable fee 
        established by the office that is sufficient to recover, but 
        does not exceed, its administrative costs. 
           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:  degree granting status, 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. 20.  Minnesota Statutes 1998, section 141.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
        the permit shall state the full name, address, previous 
        employment, and such other information concerning the solicitor 
        applicant as the office may require.  
           (b) The application shall have attached to it a certified 
        affidavit signed by a school official and the solicitor 
        attesting to the fact that the applicant has been furnished a 
        copy, has read and has knowledge of the provisions of this 
        chapter and Minnesota Rules, parts 3530.6500 to 3530.7800.  
           Sec. 21.  [141.265] [INFORMATION TO STUDENTS.] 
           Subdivision 1.  [CATALOG, BROCHURE, OR ELECTRONIC DISPLAY.] 
        A school or its agent must provide the catalog, brochure, or 
        electronic display required in section 141.25, subdivision 9, to 
        a prospective student in a time or manner that gives the 
        prospective student at least five days to read the catalog, 
        brochure, or electronic display before signing a contract or 
        enrollment agreement or before being accepted by a school that 
        does not use a written contract or enrollment agreement. 
           Subd. 2.  [CONTRACT INFORMATION.] A contract or enrollment 
        agreement used by a school must include at least the following: 
           (1) the name and address of the school, clearly stated; 
           (2) a clear and conspicuous disclosure that the agreement 
        is a legally binding instrument upon written acceptance of the 
        student by the school unless canceled under section 141.271; 
           (3) the school's cancellation and refund policy that shall 
        be clearly and conspicuously entitled "Buyer's Right to Cancel"; 
           (4) a clear statement of total cost of the program 
        including tuition and all other charges; 
           (5) the name and description of the program, including the 
        number of hours or credits of classroom instruction, or distance 
        instruction, that shall be included; and 
           (6) a clear and conspicuous explanation of the form and 
        means of notice the student should use in the event the student 
        elects to cancel the contract or sale, the effective date of 
        cancellation, and the name and address of the seller to which 
        the notice should be sent or delivered. 
           Subd. 3.  [CONTRACT COPIES.] Immediately upon signing of 
        the enrollment agreement or the contract by a prospective 
        student, the school or agent shall furnish to the prospective 
        student an exact duplicate copy of the enrollment agreement or 
        contract.  
           Sec. 22.  Minnesota Statutes 1998, section 141.271, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT 
        TO REFUND STUDENT.] For the purposes of this section, "student" 
        means the party to the contract, whether the party is the 
        student, the student's parent or guardian, or other person on 
        behalf of the student. 
           Subd. 1a.  [NOTICE; RIGHT TO REFUND.] Every school shall 
        notify each student, in writing, of acceptance or rejection.  In 
        the event that the student is rejected by the school, all 
        tuition, fees and other charges shall be refunded.  
           Sec. 23.  Minnesota Statutes 1998, section 141.271, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOLS USING WRITTEN CONTRACTS.] (a) 
        Notwithstanding anything to the contrary, every a school which 
        utilizes that uses a written contract or enrollment agreement 
        shall refund all tuition, fees and other charges paid by a 
        student, if the student gives written notice of cancellation 
        within five business days after the day on which the contract 
        was executed regardless of whether the course of instruction 
        program has started.  
           (b) With respect to those schools utilizing a written 
        contract or enrollment agreement, When a student has been 
        accepted by the school and has entered into a contractual 
        agreement with the school and gives written notice of 
        cancellation following the fifth business day after the date of 
        execution of contract, but before the start of the course of 
        instruction program in the case of resident schools, or before 
        the first lesson has been serviced by the school in the case of 
        correspondence (home study) distance education schools, all 
        tuition, fees and other charges, except 15 percent of the total 
        cost of the course program but not to exceed $50, shall be 
        refunded to the student. 
           Sec. 24.  Minnesota Statutes 1998, section 141.271, 
        subdivision 3, is amended to read: 
           Subd. 3.  [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 
        Notwithstanding anything to the contrary, every a school which 
        that does not utilize use a written contract or enrollment 
        agreement shall refund all tuition, fees and other charges paid 
        by a student if the student gives written notice of cancellation 
        within five business days after the day on which the student is 
        accepted by the school regardless of whether the course of 
        instruction program has started. 
           (b) With respect to those schools not utilizing a written 
        contract or enrollment agreement, When a student has been 
        accepted by the school and gives written notice of cancellation 
        following the fifth business day after the day of acceptance by 
        the school, but before the start of the course of 
        instruction program, in the case of resident schools, or before 
        the first lesson has been serviced by the school, in the case of 
        correspondence (home study) distance education schools, all 
        tuition, fees and other charges, except 15 percent of the total 
        cost of the course program but not to exceed $50, shall be 
        refunded to the student. 
           Sec. 25.  Minnesota Statutes 1998, section 141.271, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RESIDENT SCHOOLS.] With respect to all schools 
        offering a resident course of instruction, When a student has 
        been accepted by the a school offering a resident program and 
        gives written notice of cancellation after the start of the 
        period of instruction for which the student has been charged, 
        but before completion of 75 percent of the period of instruction 
        for which the student has been charged, the amount charged for 
        tuition, fees, and all other charges for the completed portion 
        of the period of instruction for which the student has been 
        charged shall not exceed the pro rata be prorated as a portion 
        of the total charges for tuition, fees, and all other charges 
        that the length of the completed portion of the period of 
        instruction for which the student has been charged bears to its 
        total length, plus.  An additional 25 percent of the total cost 
        of the period of instruction for which the student has been 
        charged may be added, but shall not to exceed $100.  After 
        completion of 75 percent of the period of instruction for which 
        the student has been charged, no refunds are required.  
           Sec. 26.  Minnesota Statutes 1998, section 141.271, 
        subdivision 5, is amended to read: 
           Subd. 5.  [CORRESPONDENCE HOME STUDY DISTANCE EDUCATION 
        SCHOOLS.] With respect to all schools offering a correspondence 
        (home study) course of instruction, When a student has been 
        accepted by the a distance education school and gives written 
        notice of cancellation after the first lesson has been completed 
        by the student and serviced by the school, but before completion 
        of 75 percent of the course of instruction program, the amount 
        charged for tuition, fees and all other charges for the 
        completed lessons shall not exceed the pro rata be prorated as a 
        portion of the total charges for tuition, fees and all other 
        charges that the number of lessons completed by the student 
        bears to the total number of lessons offered, plus.  An 
        additional 25 percent of the total cost of the course program 
        may be added but shall not to exceed $75.  After completion of 
        75 percent of the course of instruction program, no refunds are 
        required.  
           Sec. 27.  Minnesota Statutes 1998, section 141.271, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COMBINATION CORRESPONDENCE-RESIDENT DISTANCE 
        EDUCATION-RESIDENT SCHOOLS.] With respect to all schools 
        offering a combination correspondence (home study)-resident 
        course of instruction, When a student has been accepted by the a 
        school that offers a combination distance education-resident 
        program and gives written notice of cancellation after the start 
        of the course of instruction program or after the first lesson 
        has been completed by the student and serviced by the school, 
        whichever phase comes first, the school shall refund all 
        tuition, fees and other charges as provided for in subdivision 4 
        if cancellation occurs during the resident portion, and as 
        provided for in subdivision 5 if cancellation occurs during 
        the correspondence distance instruction portion; provided 
        that,.  If the cancellation occurs before the student has 
        commenced one of the phases, the price of that phase shall not 
        be considered in making the proration and the student shall be 
        entitled to a full refund of the price thereof charges.  
        Conversely, if the student has completed a phase of the course 
        program before cancellation, the price thereof charges may be 
        retained by the school provided that the total tuition, fees and 
        other charges for each phase have been stated separately in the 
        school's catalog or electronic display and contract or 
        enrollment agreement.  
           Sec. 28.  Minnesota Statutes 1998, section 141.271, 
        subdivision 12, is amended to read: 
           Subd. 12.  [INSTRUMENT NOT TO BE NEGOTIATED.] No A school 
        shall not negotiate any promissory instrument received as 
        payment of tuition or other charge prior to completion of 50 
        percent of the course of instruction program.  Prior to such 
        that time, such instruments may be transferred by assignment to 
        purchasers who shall be subject to all defenses available 
        against the school named as payee.  
           Sec. 29.  Minnesota Statutes 1998, section 141.28, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FALSE STATEMENTS.] No A school, agent, or 
        solicitor shall not make, or cause to be made, any statement or 
        representation, oral, written or visual, in connection with the 
        offering or publicizing of a course program, if such the school, 
        agent, or solicitor knows or reasonably should have known the 
        statement or representation to be false, fraudulent, deceptive, 
        substantially inaccurate, or misleading.  
           Sec. 30.  Minnesota Statutes 1998, section 141.28, 
        subdivision 5, is amended to read: 
           Subd. 5.  [IMPROBABLE COURSE PROGRAM COMPLETION OR 
        EMPLOYMENT.] No A school, agent, or solicitor shall not enroll a 
        prospective student when it is obvious that the prospective 
        student is unlikely to successfully complete a course of 
        instruction program or is unlikely to qualify for employment in 
        the vocation or field for which the training preparation is 
        designed unless this fact is affirmatively disclosed to the 
        prospective student.  If a prospective student expresses a 
        desire to enroll after such disclosure, a disclaimer may be 
        obtained by the school.  Such The disclaimer shall be signed by 
        the student and shall state substantially as follows one or both 
        of the following:  "I am fully aware that it is unlikely I will 
        be able to successfully complete the course of instruction 
        program" and/or and "I am fully aware of the improbability or 
        impossibility that I will qualify for employment in the vocation 
        or field for which the course program was designed."  
           Sec. 31.  Minnesota Statutes 1998, section 141.29, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GROUNDS.] The office may, after notice and 
        upon providing an opportunity for a hearing, pursuant to under 
        chapter 14 if requested by the parties adversely affected, 
        refuse to issue, refuse to renew, revoke, or suspend any a 
        license or solicitor's permit for any one or any combination of 
        the following grounds: 
           (a) (1) violation of any provisions of sections 141.21 to 
        141.36 141.35 or any rule promulgated adopted by the office; 
           (b) (2) furnishing to the office false, misleading, or 
        incomplete information; 
           (c) (3) presenting to prospective students information 
        relating to the school which that is false, fraudulent, 
        deceptive, substantially inaccurate, or misleading; 
           (d) (4) refusal to allow reasonable inspection or supply 
        reasonable information after written request therefor by the 
        office; 
           (e) (5) the existence of any circumstance which that would 
        be grounds for the refusal of an initial or renewal license 
        under section 141.25.  
           Sec. 32.  Minnesota Statutes 1998, section 141.31, is 
        amended to read: 
           141.31 [INJUNCTION.] 
           Upon application of the attorney general the district 
        courts shall have jurisdiction to enjoin any violation of 
        sections 141.21 to 141.36 141.35.  
           Sec. 33.  Minnesota Statutes 1998, section 141.32, is 
        amended to read: 
           141.32 [PENALTY.] 
           Violation of any provisions a provision of this chapter 
        shall be a misdemeanor.  Each day's failure to comply with this 
        chapter shall be a separate violation.  The office shall adopt 
        rules establishing a list of civil penalties and the fine 
        associated with each violation.  Fines for violations shall not 
        exceed $500 per day per violation.  
           Sec. 34.  Minnesota Statutes 1998, section 141.35, is 
        amended to read: 
           141.35 [EXEMPTIONS.] 
           None of the provisions of Sections 141.21 to 141.36 141.35 
        shall not apply to the following: 
           (a) (1) colleges authorized by the laws of Minnesota or of 
        any other state or foreign country to grant degrees public 
        post-secondary institutions; 
           (2) private post-secondary institutions registered under 
        sections 136A.61 to 136A.71 that are nonprofit, or that are for 
        profit and registered under sections 136A.61 to 136A.71 as of 
        December 31, 1998, or are approved to offer exclusively 
        baccalaureate or postbaccalaureate programs; 
           (b) (3) schools of nursing accredited by the state board of 
        nursing or an equivalent public board of another state or 
        foreign country; 
           (c) public schools as defined in section 120A.05, 
        subdivisions 9, 11, 13, and 17; 
           (d) (4) private schools complying with the requirements of 
        section 120A.22, subdivision 2 4; 
           (e) private and parochial nonprofit schools exempt from 
        taxation under the constitution of Minnesota; 
           (f) (5) courses taught to students in a valid 
        apprenticeship program taught by or required by a trade union; 
           (g) (6) schools exclusively engaged in training physically 
        or mentally handicapped persons for the state of Minnesota; 
           (h) (7) schools now or hereafter licensed by boards 
        authorized under Minnesota law to issue such licenses; 
           (i) (8) schools and educational programs, or training 
        programs, conducted contracted for by persons, firms, 
        corporations, government agencies, or associations, for the 
        training of their own employees, for which no fee is charged the 
        employee; 
           (j) (9) schools engaged exclusively in the teaching of 
        purely avocational, recreational, or remedial subjects as 
        determined by the office.  Private schools teaching a method or 
        procedure to increase the speed with which a student reads are 
        not within this exemption; 
           (k) (10) driver training schools and instructors as defined 
        in section 171.33, subdivisions 1 and 2; 
           (l) (11) classes, courses, or programs conducted by a bona 
        fide trade, professional, or fraternal organization, solely for 
        that organization's membership; 
           (m) courses of instruction (12) programs in the fine arts 
        provided by organizations exempt from taxation pursuant to under 
        section 290.05 and registered with the attorney general pursuant 
        to under chapter 309.  For the purposes of this clause, "fine 
        arts" means activities resulting in artistic creation or 
        artistic performance of works of the imagination which are 
        engaged in for the primary purpose of creative expression rather 
        than commercial sale or employment.  In making this determination 
        the office may seek the advice and recommendation of the 
        Minnesota board of the arts; 
           (n) (13) classes, courses, or programs intended to fulfill 
        the continuing education requirements for licensure or 
        certification in a profession, which classes, courses, or 
        programs that have been approved by a legislatively or 
        judicially established board or agency responsible for 
        regulating the practice of the profession, and which that are 
        offered primarily to a person who currently practices an 
        individual practicing the profession; 
           (o) (14) classes, courses, or programs intended to prepare 
        students to sit for undergraduate, graduate, postgraduate, or 
        occupational licensing and occupational entrance examinations; 
           (p) (15) classes, courses, or programs of a seminar nature 
        providing 16 or fewer clock hours of instruction that are not 
        part of the curriculum for an occupation or are not intended to 
        prepare a person for entry level employment; 
           (q) (16) classes, courses, or programs of a seminar nature 
        providing instruction in personal development, modeling, or 
        acting; and 
           (r) (17) training or instructional programs, in which one 
        instructor teaches an individual student, that are not part of 
        the curriculum for an occupation or are not intended to prepare 
        a person for entry level employment; and 
           (18) schools with no physical presence in Minnesota engaged 
        exclusively in offering distance instruction that are located in 
        and regulated by other states or jurisdictions.  
           Sec. 35.  [REPORT REQUIRED.] 
           (a) The higher education services office shall conduct a 
        study of the licensure and regulation of private, for-profit 
        education and training providers in Minnesota and make 
        recommendations to the legislature regarding: 
           (1) the appropriate level of regulation of providers of 
        accelerated custom-designed training courses or programs; and 
           (2) changes in statutes or rules necessary to reflect the 
        increased availability of courses and programs offered through 
        electronic means and the use of the Internet to communicate 
        information regarding courses and programs. 
           (b) The recommendations submitted shall: 
           (1) identify and define terminology associated with 
        accelerated custom-designed training opportunities; 
           (2) delineate the minimum standards providers must meet; 
           (3) delineate the procedures providers must follow to 
        validate that they have met the standards established; and 
           (4) specify the providers' contractual and financial 
        obligations to individuals participating in the training 
        provided by the providers. 
           (c) In developing its recommendations, the office shall 
        consult with the Minnesota High Technology Association and 
        providers that may be affected by changes in the statutes or 
        rules.  A report of the findings and recommendations shall be 
        submitted to the chairs of the senate higher education budget 
        division and the house higher education finance committee by 
        January 15, 2000. 
           Sec. 36.  [REPEALER.] 
           Minnesota Statutes 1998, sections 141.22; 141.25, 
        subdivisions 9a, 9b, and 11; and 141.36, are repealed. 
           Presented to the governor May 21, 1999 
           Signed by the governor May 25, 1999, 3:41 p.m.