1.1 	A bill for an act
1.2 	relating to higher education; appropriating money for higher education and 
1.3 	related purposes to the Office of Higher Education, the Board of Trustees of 
1.4 	the Minnesota State Colleges and Universities, the board of Regents of the 
1.5 	University of Minnesota, and the Mayo Clinic, with certain conditions; requiring 
1.6 	certain studies; creating a task force to reduce costs of course materials; making 
1.7 	technical changes; eliminating certain report requirements; permitting certain 
1.8 	interest rate savings and other agreements; requiring summary statistics in 
1.9 	required reports; repealing certain data sharing and collecting requirements; 
1.10 	modifying financial aid programs; establishing a scholarship program for high 
1.11 	achieving high school students; establishing the Minnesota GI bill program; 
1.12 	regulating private higher education institutions; providing penalties;amending 
1.13 	Minnesota Statutes 2006, sections 13.322, subdivision 3; 135A.01; 135A.031, 
1.14 	subdivisions 1, 7; 135A.034, subdivision 1; 135A.14, subdivision 1; 135A.52, 
1.15 	subdivisions 1, 2; 136A.01, subdivision 2; 136A.031, subdivision 5; 136A.0411; 
1.16 	136A.08, subdivision 7; 136A.101, subdivisions 4, 5a; 136A.121, subdivision 
1.17 	7a, by adding a subdivision; 136A.125, subdivisions 2, 4; 136A.15, subdivisions 
1.18 	1, 6; 136A.16, subdivisions 1, 2, 5, 8, 9, 10, by adding a subdivision; 136A.17, 
1.19 	subdivision 1; 136A.1701, subdivisions 1, 2, 5; 136A.233, subdivision 3; 
1.20 	136A.29, subdivision 9; 136A.62, subdivision 3; 136A.63; 136A.65, subdivision 
1.21 	1, by adding a subdivision; 136A.653; 136A.657, subdivisions 1, 2, 3, by adding 
1.22 	a subdivision; 136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, 
1.23 	subdivisions 1, 2, 3, 6; 136F.02, subdivisions 1, 2; 136F.03, subdivision 3; 
1.24 	136F.42, subdivision 1; 136F.58; 136F.70, by adding a subdivision; 136F.71, 
1.25 	subdivision 2, by adding a subdivision; 136G.11, subdivision 5; 137.0245, 
1.26 	subdivision 4; 137.0246, subdivision 2; 141.21, subdivisions 1a, 5; 141.25, 
1.27 	subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 
1.28 	141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; 197.775, 
1.29 	subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 
1.30 	135A; 136A; 141; 197; repealing Minnesota Statutes 2006, sections 135A.031, 
1.31 	subdivisions 2, 3, 5, 6; 135A.032; 135A.033; 135A.045; 135A.053; 136A.07; 
1.32 	136A.08, subdivision 8; 136A.1702; 136A.61; Laws 2001, First Special Session 
1.33 	chapter 1, article 1, sections 3, subdivision 3; 4, subdivision 5.
1.34 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	HIGHER EDUCATION APPROPRIATIONS

2.3 | Section 1.  SUMMARY OF APPROPRIATIONS.
2.4 		Subdivision 1.Summary By Fund. The amounts shown in this subdivision 
2.5 	summarize direct appropriations, by fund, made in this article.

2.6 | SUMMARY BY FUND
2.7 | | | 2008 | | 2009 | | Total
2.8 | General | $ | 1,509,963,000 | $ | 1,588,057,000 | $ | 3,098,020,000
2.9 | Health Care Access | $ | 2,157,000 | $ | 2,157,000 | $ | 4,314,000
2.10 | Total | $ | 1,512,120,000 | $ | 1,590,214,000 | $ | 3,102,334,000
2.11 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
2.12 	summarize direct appropriations, by agency, made in this article.

2.13 | SUMMARY BY AGENCY - ALL FUNDS
2.14 | | | 2008 | | 2009 | | Total
2.15 | Office of Higher Education | $ | 181,892,000 | $ | 195,700,000 | $ | 377,592,000
2.16
2.17

2.18

Board of Trustees of the 
Minnesota State Colleges and 
Universities

$

651,942,000

$

688,498,000

$

1,340,440,000

2.19

2.20

Board of Regents of the 
University of Minnesota

$

677,188,000

$

704,864,000

$

1,382,052,000

2.21 | Mayo Medical Foundation | $ | 1,098,000 | $ | 1,152,000 | $ | 2,250,000
2.22 | Total | $ | 1,512,120,000 | $ | 1,590,214,000 | $ | 3,102,334,000

2.23 | Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.24 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.25 	agencies and for the purposes specified in this article.  The appropriations are from the 
2.26 	general fund, or another named fund, and are available for the fiscal years indicated 
2.27 	for each purpose.  The figures "2008" and "2009" used in this article mean that the 
2.28 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.29 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.30 	year 2009. "The biennium" is fiscal years 2008 and 2009.  Appropriations for the fiscal 
2.31 	year ending June 30, 2007, are effective the day following final enactment.

2.32 | | | | APPROPRIATIONS
2.33 | | | | Available for the Year
2.34 | | | | Ending June 30
2.35 | | | | | 2008 | | 2009

3.1

3.2

Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

3.3 | Subdivision 1.Total Appropriation | $ | 181,892,000 | $ | 195,700,000
3.4 	The amounts that may be spent for each 
3.5 	purpose are specified in the following 
3.6 	subdivisions.

3.7 | Subd.  2.State Grant Program | | 138,604,000 | | 139,824,000
3.8 	If the appropriation in this subdivision for 
3.9 	either year is insufficient, the appropriation 
3.10 	for the other year is available for it. 
3.11 	For the biennium, the tuition and fee 
3.12 	maximum shall be $9,838 for students 
3.13 	enrolled in four-year programs and $6,836 
3.14 	for students enrolled in two-year programs.
3.15 	This appropriation sets the living and 
3.16 	miscellaneous expense allowance at $5,550 
3.17 	each year.

3.18 | Subd. 3.Minnesota GI Bill Program | | 5,000,000 | | 5,000,000
3.19 	For grants to eligible veterans or the eligible 
3.20 	spouses and children of veterans as provided 
3.21 	under Minnesota Statutes, section 197.791. 
3.22 	If the appropriation in this subdivision for 
3.23 	either year is insufficient, the appropriation 
3.24 	for the other year is available for it.
3.25 	Of this appropriation, $152,000 the first 
3.26 	year and $104,000 the second year are for 
3.27 	the administrative costs of operating this 
3.28 	program. $104,000 is added to the agency's 
3.29 	base funding for program administration.

3.30 | Subd. 4.ACHIEVE Scholarship Grants | | -0- | | 13,000,000
3.31 	For scholarship awards under Minnesota 
3.32 	Statutes, section 136A.127. The funding 
4.1 	base for this program is $6,500,000 in fiscal 
4.2 	years 2010 and 2011.

4.3 | Subd. 5.Public Safety Officers' Survivors | | 100,000 | | 100,000
4.4 	This appropriation is to provide educational 
4.5 	benefits under Minnesota Statutes, section 
4.6 	299A.45, to dependent children under age 
4.7 	23 and the spouses of public safety officers 
4.8 	killed in the line of duty.

4.9 | Subd. 6.Interstate Tuition Reciprocity | | 2,000,000 | | 2,000,000
4.10 	If the appropriation in this subdivision for 
4.11 	either year is insufficient, the appropriation 
4.12 	for the other year is available to meet 
4.13 	reciprocity contract obligations.

4.14 | Subd. 7.State Work Study | | 12,444,000 | | 12,444,000

4.15 | Subd. 8.Child Care Grants | | 6,411,000 | | 6,411,000

4.16 | Subd. 9.Minitex | | 6,003,000 | | 5,806,000

4.17 | Subd. 10.MnLINK Gateway | | 400,000 | | 400,000

4.18 | Subd. 11.Learning Network of Minnesota | | 4,800,000 | | 4,800,000

4.19 | Subd. 12.Minnesota College Savings Plan | | 1,020,000 | | 1,020,000

4.20 | Subd. 13.Midwest Higher Education Compact | | 90,000 | | 90,000

4.21

4.22

Subd. 14.Intervention for College Attendance 
Program Grants

624,000

624,000

4.23 	No more than $50,000 of this appropriation 
4.24 	each year may be used for administrative 
4.25 	expenses for the program under Minnesota 
4.26 	Statutes, section 136A.861. 

4.27 | Subd. 15.Other Programs | | 1,310,000 | | 1,010,000
4.28 	This appropriation includes funding for 
4.29 	student and parent information and the get 
4.30 	ready outreach program.
4.31 	$150,000 each year is for grants to increase 
4.32 	campus-community collaboration and service 
5.1 	learning statewide. For every $1 in state 
5.2 	funding, grant recipients must contribute $2 
5.3 	in campus or community-based support.
5.4 	$250,000 in fiscal year 2008 is for a grant to 
5.5 	Augsburg College for the Step UP program, 
5.6 	which provides educational opportunities 
5.7 	to chemically dependent students. This is a 
5.8 	onetime appropriation.
5.9 	$150,000 each year is for making one or 
5.10 	more grants to nonprofit training entities 
5.11 	to train teachers of indigenous Native 
5.12 	American languages. The director may 
5.13 	solicit requests for proposals for grants and 
5.14 	shall award grants based on the proposal's 
5.15 	potential for training teachers of indigenous 
5.16 	Native American languages. All grantees are 
5.17 	required to contribute a 50 percent nonstate 
5.18 	match to grant funds. The match may be in 
5.19 	cash or an in-kind contribution.
5.20 	$100,000 each year must be transferred to 
5.21 	the Loan Repayment Assistance Program, 
5.22 	Inc., for loan repayment assistance awards 
5.23 	to attorneys who enter public interest law to 
5.24 	ensure that low-income and disadvantaged 
5.25 	populations have access to competent legal 
5.26 	counsel.
5.27 	$50,000 in fiscal year 2008 is for the 
5.28 	Washington Center for Internships and 
5.29 	Academic Seminars for a pilot program 
5.30 	for scholarships for students enrolling in a 
5.31 	Minnesota four-year college or university 
5.32 	beginning in the fall semester of 2007. 
5.33 	The appropriation shall be available only 
5.34 	on a dollar-for-dollar match basis for 
5.35 	funds received from nonstate sources. 
6.1 	The Washington Center for Internships 
6.2 	and Academic Seminars must work with 
6.3 	Minnesota Colleges and Universities to 
6.4 	ensure that the scholarships will go to 
6.5 	economically disadvantaged Minnesota 
6.6 	students, students with demonstrated need of 
6.7 	financial assistance, and students traditionally 
6.8 	underrepresented in higher education, and 
6.9 	will work to ensure racial, ethnic, and gender 
6.10 	diversity, as well as urban/rural balance. This 
6.11 	is a onetime appropriation.

6.12

6.13

Subd. 16.United Family Medicine Residency 
Program

371,000

390,000

6.14 	For a grant to the United Family Medicine 
6.15 	residency program. This appropriation 
6.16 	shall be used to support up to 18 resident 
6.17 	physicians each year in family practice at 
6.18 	United Family Medicine residency programs 
6.19 	and shall prepare doctors to practice family 
6.20 	care medicine in underserved rural and 
6.21 	urban areas of the state. It is intended that 
6.22 	this program will improve health care in 
6.23 	underserved communities, provide affordable 
6.24 	access to appropriate medical care, and 
6.25 	manage the treatment of patients in a more 
6.26 	cost-effective manner. The funding base for 
6.27 	this program is $410,000 in fiscal year 2010 
6.28 	and $430,000 in fiscal year 2011.

6.29 | Subd. 17.Agency Administration | | 2,715,000 | | 2,781,000
6.30 	These appropriations, and any statutory 
6.31 	appropriations from which state employee 
6.32 	compensation is paid from any fund, include 
6.33 	an amount sufficient to fund compensation 
6.34 	increases of at least 3.25 percent of the 
6.35 	2007 compensation base for the first year, 
7.1 	compounded at the rate of 3.25 percent for 
7.2 	the second year. This amount must be used 
7.3 	for that purpose and no other.

7.4 | Subd. 18.Balances Forward | | | |
7.5 	A balance in the first year under this section 
7.6 	does not cancel, but is available for the 
7.7 	second year.

7.8 | Subd. 19.Transfers | | | |
7.9 	The Minnesota Office of Higher Education 
7.10 	may transfer unencumbered balances from 
7.11 	the appropriations in this section to the state 
7.12 	grant appropriation, the interstate tuition 
7.13 	reciprocity appropriation, the child care 
7.14 	grant appropriation, the state work study 
7.15 	appropriation, the public safety officers' 
7.16 	survivors appropriation, and the Minnesota 
7.17 	college savings plan appropriation. Transfers 
7.18 	from the child care or state work study 
7.19 	appropriations may only be made to the 
7.20 	extent there is a projected surplus in the 
7.21 	appropriation. A transfer may be made 
7.22 	only with the prior written approval of the 
7.23 	commissioner of finance and prior written 
7.24 	notice to the chairs of the senate and house 
7.25 	committees with jurisdiction over higher 
7.26 	education finance.

7.27
7.28

7.29

Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

7.30 | Subdivision 1. Total Appropriation | $ | 651,942,000 | $ | 688,498,000
7.31 	The amounts that may be spent for each 
7.32 	purpose are specified in the following 
7.33 	subdivisions.

7.34 | Subd.  2.General Appropriation | | 651,942,000 | | 688,498,000
8.1 	$120,000 in each year is for Cook County 
8.2 	Higher Education to provide educational 
8.3 	programs and academic support services to 
8.4 	remote regions in northeastern Minnesota. 
8.5 	Cook County Higher Education must 
8.6 	continue to provide information to the Board 
8.7 	of Trustees of the Minnesota State Colleges 
8.8 	and Universities on the number of students 
8.9 	served, credit hours delivered, and services 
8.10 	provided to students.
8.11 	This appropriation includes amounts 
8.12 	for inflation; funding for technology 
8.13 	infrastructure improvements to deliver 
8.14 	more online programs and services, protect 
8.15 	sensitive data and enhance computer network 
8.16 	security, increase online learning, improve 
8.17 	student services, and improve management 
8.18 	of business processes; and funding for 
8.19 	initiatives to recruit and retain students 
8.20 	traditionally underrepresented in higher 
8.21 	education to help prepare students for 
8.22 	college, encourage their enrollment, and 
8.23 	provide services that enable them to continue 
8.24 	successfully to graduation. Any amounts 
8.25 	allocated to initiatives to recruit and retain 
8.26 	students traditionally underrepresented 
8.27 	in higher education must be used to fund 
8.28 	activities determined by the Board of 
8.29 	Trustees to be best practices for the stated 
8.30 	purpose.
8.31 	Amounts for other "Strategic Advancements" 
8.32 	initiatives must be the result of internal 
8.33 	reallocation by the Board of Trustees.
8.34 	$3,923,000 in fiscal year 2008 and 
8.35 	$4,079,000 in fiscal year 2009 are for 
9.1 	elimination of nonresident undergraduate 
9.2 	tuition at community and technical colleges 
9.3 	under Minnesota Statutes, section 136F.70, 
9.4 	subdivision 1a.
9.5 	Any amounts in the base budget allocated 
9.6 	to pay competitive compensation under 
9.7 	Laws 2005, chapter 107, article 1, section 3, 
9.8 	subdivision 2, must be used only in efforts to 
9.9 	recruit or retain quality faculty.
9.10 	$200,000 of this appropriation in fiscal year 
9.11 	2008 must be provided to one campus in 
9.12 	the system, that has a full-time equivalent 
9.13 	enrollment of at least 1,500 students, for 
9.14 	the start-up costs of a pilot textbook rental 
9.15 	program. The rental program must be 
9.16 	operated to become self-sustaining. The 
9.17 	campus is authorized to adopt policies and 
9.18 	procedures to implement the program. The 
9.19 	campus shall, by January 31, 2010, report to 
9.20 	the Board of Trustees, the Minnesota Office 
9.21 	of Higher Education, and the senate and 
9.22 	house committees with primary jurisdiction 
9.23 	over higher education policy and finance on 
9.24 	progress towards implementing the program. 
9.25 	The report shall evaluate the program 
9.26 	including, but not limited to, the following 
9.27 	information:
9.28 	(1) policies and procedures established to implement the program;
9.29 	(2) cost-savings achieved for students renting textbooks;
9.30 	(3) student satisfaction with and participation in the program;
9.31 	(4) faculty satisfaction with the program; and
9.32 	(5) administrative costs associated with implementing the program.

9.33

9.34

Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

9.35 | Subdivision 1.Total Appropriation | $ | 677,188,000 | $ | 704,864,000

10.1 | Appropriations by Fund
10.2 | | 2008 | 2009
10.3 | General | 675,031,000 | 702,707,000
10.4 | Health Care Access | 2,157,000 | 2,157,000
10.5 	The amounts that may be spent for each 
10.6 	purpose are specified in the following 
10.7 	subdivisions.

10.8 | Subd.  2.Operations and Maintenance | | 610,668,000 | | 638,344,000
10.9 	This appropriation includes amounts to 
10.10 	advance the University of Minnesota's efforts 
10.11 	to sustain quality and competitiveness, 
10.12 	including funds to support a general 
10.13 	compensation increase for University 
10.14 	of Minnesota employees; funding for the 
10.15 	"Advancing Education" initiatives to improve 
10.16 	undergraduate writing, expand academic 
10.17 	advising, offer undergraduate research 
10.18 	opportunities, increase financial support for 
10.19 	graduate students, and invest in libraries; 
10.20 	and funding for investments in technology 
10.21 	and infrastructure to enhance research 
10.22 	capabilities, security, basic classroom 
10.23 	technology, and student services.
10.24 	This appropriation also includes 
10.25 	amounts to support the University of 
10.26 	Minnesota's "Creating Minnesota's Future" 
10.27 	initiatives, including funds for competitive 
10.28 	compensation to attract and retain quality 
10.29 	faculty and staff; funding for science and 
10.30 	engineering initiatives to address Minnesota's 
10.31 	challenging problems in energy, health, 
10.32 	the environment, and medicine through 
10.33 	innovative, cross-disciplinary research; 
10.34 	funding for initiatives in environment, 
10.35 	agricultural systems, and renewable energy 
11.1 	to address dependence on fossil-based 
11.2 	fuels, ensure food safety, and protect animal 
11.3 	and human health; and funding for health 
11.4 	workforce and clinical sciences initiatives to 
11.5 	address the continuing shortage of advanced 
11.6 	practice nurses and a critical shortage of 
11.7 	allied health professionals.
11.8 	$10,000,000 in fiscal year 2010 and 
11.9 	$10,000,000 in fiscal year 2011 are included 
11.10 	in the funding base for the University of 
11.11 	Minnesota for the collaborative research 
11.12 	partnership between the University of 
11.13 	Minnesota and the Mayo Foundation for 
11.14 	research in biotechnology and medical 
11.15 	genomics. The annual report in Laws 2005, 
11.16 	First Special Session chapter 1, article 3, 
11.17 	section 2, must continue to be submitted.

11.18 | Subd.  3.Primary Care Education Initiatives | | 2,157,000 | | 2,157,000
11.19 	This appropriation is from the health care 
11.20 	access fund.

11.21 | Subd.  4.Special Appropriations | | | |

11.22 | (a) Agriculture and Extension Service | | 51,125,000 | | 51,125,000
11.23 	For the Agricultural Experiment Station, 
11.24 	Minnesota Extension Service. This 
11.25 	appropriation includes funding to promote 
11.26 	alternative livestock research and outreach 
11.27 	and to promote sustainable and organic 
11.28 	agriculture research and education.

11.29 | (b) Health Sciences | | 5,275,000 | | 5,275,000
11.30 	Of this appropriation, $346,000 in 2008 
11.31 	and $346,000 in 2009 are to support up to 
11.32 	12 resident physicians each year in the St. 
11.33 	Cloud Hospital family practice residency 
11.34 	program. The program must prepare doctors 
12.1 	to practice primary care medicine in the rural 
12.2 	areas of the state. The legislature intends 
12.3 	this program to improve health care in rural 
12.4 	communities, provide affordable access to 
12.5 	appropriate medical care, and manage the 
12.6 	treatment of patients in a more cost-effective 
12.7 	manner.
12.8 	The remainder of this appropriation is for 
12.9 	the rural physicians associates program, the 
12.10 	Veterinary Diagnostic Laboratory, health 
12.11 	sciences research, dental care, and the 
12.12 	Biomedical Engineering Center.

12.13 | (c) Institute of Technology | | 1,387,000 | | 1,387,000
12.14 	For the geological survey and the talented 
12.15 	youth mathematics program.

12.16 | (d) System Specials | | 6,576,000 | | 6,576,000
12.17 	For general research, student loans matching 
12.18 	money, industrial relations education, Natural 
12.19 	Resources Research Institute, Center for 
12.20 	Urban and Regional Affairs, Bell Museum of 
12.21 	Natural History, and the Humphrey exhibit.
12.22 	This appropriation includes an additional 
12.23 	$150,000 each year for industrial relations 
12.24 	education. The Board of Regents of the 
12.25 	University of Minnesota is requested to 
12.26 	refrain from implementing corresponding 
12.27 	reductions in funding for this purpose.

12.28 | Sec. 6. MAYO MEDICAL FOUNDATION | | | |

12.29 | Subdivision 1.Total Appropriation | $ | 1,098,000 | $ | 1,152,000
12.30 	The amounts that may be spent for each 
12.31 	purpose are specified in the following 
12.32 	subdivisions.

12.33 | Subd.  2.Medical School | | 540,000 | | 567,000
13.1 	The state of Minnesota must pay a capitation 
13.2 	each year for each student who is a resident 
13.3 	of Minnesota. The appropriation may be 
13.4 	transferred between years of the biennium to 
13.5 	accommodate enrollment fluctuations. The 
13.6 	funding base for this program is $595,000 in 
13.7 	fiscal year 2010 and $625,000 in fiscal year 
13.8 	2011.
13.9 	It is intended that during the biennium the 
13.10 	Mayo Foundation use the capitation money 
13.11 	to increase the number of doctors practicing 
13.12 	in rural areas in need of doctors.

13.13

13.14

Subd.  3.Family Practice and Graduate 
Residency Program

558,000

585,000

13.15 	The state of Minnesota must pay a capitation 
13.16 	for up to 27 residents each year. The funding 
13.17 	base for this program is $615,000 in fiscal 
13.18 	year 2010 and $645,000 in fiscal year 2011.

13.19 	Sec. 7. STATE GRANT PROGRAM STUDY.
 13.20 	The Minnesota Office of Higher Education must conduct an analysis and evaluation 
13.21 	of the state grant program to provide information to the legislature concerning the role of 
13.22 	the program in promoting affordable access to higher education in Minnesota, including 
13.23 	promoting access for students traditionally underrepresented in higher education. 
13.24 	Whenever possible, the analysis should include the distributional effects, by income 
13.25 	quintile, of state grant program parameters on students and families. The analysis and 
13.26 	evaluation must include:
13.27 	(1) evaluation of the assigned student share compared to the current and future 
13.28 	income of a student, and analysis of the number of hours a student must work to meet the 
13.29 	assigned student share without borrowing;
13.30 	(2) evaluation of the assigned family contribution, how it is determined under the 
13.31 	federal needs analysis, and how it compares to expectations of families in other public 
13.32 	programs;
13.33 	(3) analysis of the ways that students and families pay the assigned student share and 
13.34 	the assigned family contribution;
14.1 	(4) analysis of the recognized cost of attendance compared to actual attendance 
14.2 	costs and the ability of individuals and families at various income levels in Minnesota to 
14.3 	pay the cost of attendance;
14.4 	(5) analysis of the actual living and miscellaneous expenses of students, with 
14.5 	particular attention to differences between traditional and nontraditional students, and 
14.6 	comparison to the amount currently applied in the state grant formula; and
14.7 	(6) analysis of other parameters of the program considered relevant by the office, 
14.8 	including prorating the state grant amount instead of the budget for the cost of attendance 
14.9 	and changing the definition of full-time enrollment.
14.10 	Whenever possible, the report must include cost estimates and information on how 
14.11 	recommended changes affect students at various income levels and at different higher 
14.12 	education institutions in Minnesota.
14.13 	The Minnesota Office of Higher Education also shall assess the feasibility of 
14.14 	expanding the eligibility for state grants to include graduate students pursuing degree 
14.15 	programs deemed to be important to the workforce needs of the state. The Minnesota 
14.16 	Office of Higher Education must report their findings and make recommendations to the 
14.17 	committees in the house and senate with primary jurisdiction over higher education policy 
14.18 	and finance by January 31, 2008, on options to enhance the targeting of financial aid 
14.19 	to state grant recipients.

14.20 	Sec. 8. POSTSECONDARY EDUCATION PARTICIPATION STUDY.
 14.21 	The Minnesota Office of Higher Education shall, by January 15, 2008, report to the 
14.22 	house and senate committees with jurisdiction over higher education policy and finance 
14.23 	on participation in postsecondary education by income, and persistence and graduation 
14.24 	rates of state grant recipients compared to students who did not receive state grants. The 
14.25 	Minnesota Office of Higher Education is authorized to match individual student data from 
14.26 	the student record enrollment database with individual student data from the state grant 
14.27 	database on data elements necessary to perform the study.

14.28 	Sec. 9. LOAN REPAYMENT PROGRAM REPORT.
 14.29 	The Minnesota Office of Higher Education must examine, and make 
14.30 	recommendations regarding, the feasibility of implementing loan repayment programs 
14.31 	for professions deemed to be of economic or social importance to the state. The report 
14.32 	must consider the availability of existing public and private loan repayment programs and 
14.33 	the need and ability of the state to promote economic growth or stability in particular 
14.34 	professions with additional resources. The report must be submitted to the house and 
15.1 	senate committees with primary jurisdiction over higher education policy and finance by 
15.2 	January 31, 2008.

15.3 	Sec. 10. INDIAN SCHOLARSHIPS.
 15.4 	The Minnesota Office of Higher Education shall study and make recommendations 
15.5 	to the legislature regarding the feasibility of transferring the American Indian Scholarship 
15.6 	Program under Minnesota Statutes, section 124D.84, from the Department of Education to 
15.7 	the Office of Higher Education. The report must be submitted to the house and senate 
15.8 	committees with primary jurisdiction over higher education finance and policy by January 
15.9 	31, 2008.

15.10 	Sec. 11. NONRESIDENT UNDERGRADUATE TUITION PLANS.
 15.11 	The Board of Trustees of the Minnesota State Colleges and Universities must 
15.12 	prepare to eliminate undergraduate tuition rates, except undergraduate tuition rates for a 
15.13 	resident of a state that has entered into a reciprocity agreement under Minnesota Statutes, 
15.14 	section 136A.08, beginning at community and technical colleges, that are different 
15.15 	for nonresident students than for resident students by the beginning of the 2009-2010 
15.16 	academic term. The board must, by January 15, 2008, submit the plan to the chairs of the 
15.17 	legislative committees with jurisdiction over higher education finance.

15.18 	Sec. 12. ACHIEVE MERIT SCHOLARSHIP STUDY.
 15.19 	The Higher Education Advisory Council (HEAC) shall convene a working group 
15.20 	to study and make recommendations regarding (a) the role of merit and need-based 
15.21 	scholarships and other mechanisms in increasing the participation in rigorous high school 
15.22 	courses of students traditionally underrepresented in higher education; and (b) mechanisms 
15.23 	to facilitate the subsequent access to, persistence in, and completion of postsecondary 
15.24 	degrees among students in this group. HEAC and its working group may collaborate with 
15.25 	the P-16 Education Partnership in developing its recommendations. The Minnesota Office 
15.26 	of Higher Education shall provide staff for the working group. In completing the study 
15.27 	and developing recommendations, the following issues shall be addressed:
15.28 	(1) the parameters used to identify a course as being rigorous;
15.29 	(2) the curricular prerequisites of courses identified to be rigorous for the purposes 
15.30 	of the ACHIEVE program;
15.31 	(3) the availability of rigorous courses to high school students in school districts 
15.32 	around the state;
15.33 	(4) the capacity of high schools to provide rigorous courses to students;
16.1 	(5) the additional programmatic and financial resources required to increase the 
16.2 	participation of students traditionally underrepresented in higher education in rigorous 
16.3 	courses while in high school;
16.4 	(6) the additional programmatic and financial resources required to ensure students 
16.5 	traditionally underrepresented in higher education complete a postsecondary degree; and
16.6 	(7) other issues deemed relevant to the study.
16.7 	The Higher Education Advisory Council shall, by January 15, 2008, make 
16.8 	recommendations to the senate and house committees with primary jurisdiction over 
16.9 	higher education policy and finance regarding their findings and the role of students, 
16.10 	parents, school districts, postsecondary institutions, and college access programs in 
16.11 	addressing the needs of students in this group.

16.12 	Sec. 13. TASK FORCE CONVENED.
 16.13 	The Board of Trustees of the Minnesota State Colleges and Universities shall, to the 
16.14 	extent it considers necessary, convene a task force to study and explore rental programs, 
16.15 	lease programs, or other programs available for course material. The task force shall 
16.16 	consist of but not be limited to students, faculty, administrators, bookstore operators and 
16.17 	managers, and staff members from the office of the chancellor. The Board of Trustees 
16.18 	shall approve and release a public report on any findings and recommendations of the task 
16.19 	force to the chairs of the committees of the legislature with primary jurisdiction over 
16.20 	higher education policy and finance prior to February 14, 2008.

16.21 	Sec. 14. EDUCATIONAL STRATEGIES.
 16.22 	During the biennium ending June 30, 2008, the Minnesota Office of Higher 
16.23 	Education shall work with postsecondary institutions to develop educational materials 
16.24 	based upon the findings of the Minnesota Textbook Advisory Task Force recommendations 
16.25 	and other relevant information; convene and sponsor meetings and workshops; and 
16.26 	provide educational materials for faculty, students, administrators, institutions, bookstores, 
16.27 	and publishers in order to educate all interested parties on strategies for reducing the costs 
16.28 	of course materials for students attending postsecondary institutions. For the purpose of 
16.29 	this section, "postsecondary institution" means all institutions located in the state eligible 
16.30 	to participate in the state grant program under Minnesota Statutes, section 136A.121.

16.31 	ARTICLE 2
16.32 	RELATED HIGHER EDUCATION PROVISIONS

16.33 	Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
17.1 		Subd. 3.Minnesota Office of Higher Education. (a) General. Data sharing 
17.2 	involving the Minnesota Office of Higher Education and other institutions is governed 
17.3 	by ~~sections~~ section136A.05 ~~and 136A.08, subdivision 8~~. 
17.4 	(b) Student financial aid. Data collected and used by the Minnesota Office of 
17.5 	Higher Education on applicants for financial assistance are classified under section 
17.6 	136A.162. 
17.7 	(c) Minnesota college savings plan data. Account owner data, account data, and 
17.8 	data on beneficiaries of accounts under the Minnesota college savings plan are classified 
17.9 	under section 136G.05, subdivision 10. 
17.10 	(d) School financial records. Financial records submitted by schools registering 
17.11 	with the Minnesota Office of Higher Education are classified under section 136A.64. 
17.12 	(e) Enrollment and financial aid data. Data collected from eligible institutions on 
17.13 	student enrollment and federal and state financial aid are governed by sections 136A.121, 
17.14 	subdivision 18, and 136A.1701, subdivision 11.

17.15 	Sec. 2. Minnesota Statutes 2006, section 135A.01, is amended to read:
17.16 	135A.01 FUNDING POLICY.
17.17 	It is the policy of the legislature to provide stable funding~~, including recognition of~~ 
17.18 	~~the effects of inflation,~~ for ~~instructional services at~~ public postsecondary institutions and 
17.19 	that the state and students share the cost of ~~those services~~ public postsecondary education. 
17.20 	The legislature intends to provide at least 67 percent of the ~~instructional services costs~~ 
17.21 	~~for each postsecondary system~~ combined revenue from tuition, the university fee at the 
17.22 	University of Minnesota, and state general fund appropriations to public postsecondary 
17.23 	institutions. It is also the policy of the legislature that the budgetary process serves to 
17.24 	support high quality public postsecondary education.

17.25 	Sec. 3. [135A.011] STATE HIGHER EDUCATION OBJECTIVES.
17.26 		Subdivision 1.Statewide objectives. Minnesota's higher education investment 
17.27 	is made in  pursuit of the following objectives: (1) to ensure quality by providing a 
17.28 	level of excellence that is competitive on a national and  international level, through 
17.29 	high quality teaching, scholarship, and learning in a broad range of  arts and sciences, 
17.30 	technical education, and professional fields; (2) to foster student success by enabling 
17.31 	and encouraging students to choose institutions and  programs that are best suited for 
17.32 	their talents and abilities, and to provide an educational climate  that supports students 
17.33 	in pursuing their goals and aspirations; (3) to promote democratic values and enhance 
17.34 	Minnesota's quality of life by developing  understanding and appreciation of a free and 
18.1 	diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, 
18.2 	regardless of personal circumstances, to participate in higher education; and (5) to enhance 
18.3 	the economy by assisting the state in being competitive in the world market,  and to prepare 
18.4 	a highly skilled and adaptable workforce that meets Minnesota's opportunities  and needs.

18.5 	Sec. 4. Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read:
18.6 		Subdivision 1.Determination of appropriation. The ~~direct appropriation to each~~ 
18.7 	~~board for instructional services shall equal 67 percent of the estimated total cost of~~ 
18.8 	~~instruction~~appropriations for the University of Minnesota~~, the state universities, and the~~ 
18.9 	~~community colleges, and, for technical colleges, at least 67 percent of the estimated total~~ 
18.10 	~~cost of instruction~~ and the Minnesota State Colleges and Universities are determined 
18.11 	by considering the biennial budget documents submitted under section 135A.034, 
18.12 	performance in advancing the objectives under section 135A.011, available resources 
18.13 	according to the state budget forecast, the relative balance between state support for 
18.14 	students and public postsecondary institutions, and other factors the legislature considers 
18.15 	important in determining the level of state appropriations for public postsecondary 
18.16 	education.

18.17 	Sec. 5. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
18.18 		Subd. 7.Reports. (a) Instructional and noninstructional expenditure data and 
18.19 	enrollment data ~~for each instructional category shall be submitted in the biennial budget~~ 
18.20 	~~document~~  must be submitted in the biennial budget document under section 135A.034. 
18.21 	This report must include a description of the methodology for determining instructional 
18.22 	and noninstructional expenditures and estimates of inflation in higher education and the 
18.23 	methodology or index used to determine the inflation rate.
18.24 	(b) By February 1 of each even-numbered year, the Board of Regents of the 
18.25 	University of Minnesota and the Board of Trustees of the Minnesota State Colleges 
18.26 	and Universities must submit a report to the chairs of the legislative committees with 
18.27 	jurisdiction over higher education policy and finance. The report must describe the 
18.28 	following:
18.29 	(1) how state appropriations made to the system in the previous odd-numbered year 
18.30 	were allocated and the methodology used to determine the allocation;
18.31 	(2) data describing how the institution reallocated resources to advance the priorities 
18.32 	set forth in the budget submitted under section 135A.034 and the statewide objectives 
18.33 	under section 135A.011. The information must indicate whether instruction and support 
19.1 	programs received a reduction in or additional resources. The total amount reallocated 
19.2 	must be clearly explained;
19.3 	(3) the tuition rates and fees established by the governing board in each of the past 
19.4 	ten years and comparison data for peer institutions and national averages;
19.5 	(4) data on the number and proportion of students graduating within four, five, 
19.6 	and six years from universities and within three years from colleges as reported in the 
19.7 	integrated postsecondary education data system. These data must be provided for each 
19.8 	institution by race, ethnicity, and gender. Data and information must be submitted that 
19.9 	describe the system's plan and progress toward attaining the goals set forth in the plan 
19.10 	to increase the number and proportion of students that graduate within four, five, or six 
19.11 	years from a university or within three years from a college;
19.12 	(5) data on, and the methodology used to measure, the number of students 
19.13 	traditionally underrepresented in higher education enrolled at the system's institutions. 
19.14 	Data and information must be submitted that describe the system's plan and progress 
19.15 	toward attaining the goals set forth in the plan to increase the recruitment, retention, and 
19.16 	timely graduation of students traditionally underrepresented in higher education; and
19.17 	(6) data on the revenue received from all sources to support research or workforce 
19.18 	development activities or the system's efforts to license, sell, or otherwise market products, 
19.19 	ideas, technology, and related inventions created in whole or in part by the system. Data 
19.20 	and information must be submitted that describe the system's plan and progress toward 
19.21 	attaining the goals set forth in the plan to increase the revenue received to support research 
19.22 	or workforce development activities or revenue received from the licensing, sale, or other 
19.23 	marketing and technology transfer activities by the system.

19.24 	Sec. 6. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read:
19.25 		Subdivision 1.Operating budget. The governing boards of the University of 
19.26 	Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 
19.27 	legislative and executive branch acceptance, its highest budget priorities in accordance 
19.28 	with statewide objectives for higher education under section 135A.011. ~~It is the intent~~ 
19.29 	~~of the legislature to appropriate at least 67 percent of the total cost of instruction after~~ 
19.30 	~~adjusting for inflation and enrollment changes. However, in the event of a budget shortfall,~~ 
19.31 	~~or if funding of inflation is not possible, available funding shall first be applied to the~~ 
19.32 	~~agreed upon budget priorities.~~

19.33 	Sec. 7. [135A.043] RESIDENT TUITION.
20.1 	(a) A student shall qualify for a resident tuition rate or its equivalent at state 
20.2 	universities and colleges, including the University of Minnesota, if the student meets 
20.3 	all of the following requirements:
20.4 	(1) high school attendance within the state for three or more years;
20.5 	(2) graduation from a state high school or attainment within the state of the 
20.6 	equivalent of high school graduation; and
20.7 	(3) registration as an entering student at, or current enrollment in, a public institution 
20.8 	of higher education.
20.9 	(b) This section is in addition to any other statute, rule, or higher education 
20.10 	institution regulation or policy providing eligibility for a resident tuition rate or its 
20.11 	equivalent to a student.
20.12 	(c) To qualify for resident tuition under this section an individual who is not a citizen 
20.13 	or permanent resident of the United States must provide the college or university with 
20.14 	an affidavit that the individual will file an application to become a permanent resident at 
20.15 	the earliest opportunity the individual is eligible to do so.

20.16 	EFFECTIVE DATE. This section is effective the day following final enactment 
20.17 	and applies to tuition for school terms commencing on or after that date.

20.18 	Sec. 8. [135A.135] PERSONAL FINANCIAL MANAGEMENT.
20.19 	During initial student registration, each technical college, community college, or 
20.20 	state university shall, and the University of Minnesota is requested to, provide each 
20.21 	student information on personal financial management. Students should understand and 
20.22 	be able to manage personal finances including, but not limited to, the responsible use of 
20.23 	consumer credit. This requirement may be waived for a student who enrolls in a college 
20.24 	course providing similar instruction.

20.25 	Sec. 9. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
20.26 		Subdivision 1.Definitions. As used in this section, the following terms have the 
20.27 	meanings given them.
20.28 	(a) "Administrator" means the administrator of the institution or other person with 
20.29 	general control and supervision of the institution.
20.30 	(b) "Public or private postsecondary educational institution" or "institution" means 
20.31 	any of the following institutions having an enrollment of more than 100 persons during 
20.32 	any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 
20.33 	(2) the state universities; (3) the state community colleges; (4) public technical colleges; 
20.34 	(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 
21.1 	and (7) schools subject to either chapter 141, sections ~~136A.61~~136A.615 to 136A.71, or 
21.2 	schools exempt under section 136A.657, and which offer educational programs within the 
21.3 	state for an academic year greater than six consecutive months. An institution's report to 
21.4 	the Minnesota Office of Higher Education or the Minnesota Department of Education may 
21.5 	be considered when determining enrollment. 
21.6 	(c) "Student" means a person born after 1956 who did not graduate from a Minnesota 
21.7 	high school in 1997 or later, and who is (1) registering for more than one class during 
21.8 	a full academic term, such as a quarter or a semester or (2) housed on campus and is 
21.9 	registering for one or more classes. Student does not include persons enrolled in extension 
21.10 	classes only or correspondence classes only.

21.11 	Sec. 10. [135A.145] SALE OF STUDENT INFORMATION; MARKETING 
21.12 	CREDIT CARDS TO STUDENTS.
21.13 		Subdivision 1.Prohibited practices. No public or private postsecondary 
21.14 	educational institution, including its agents, employees, student or alumni organizations, 
21.15 	or affiliates, may:
21.16 	 (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone 
21.17 	number, or other contact information of a student at the postsecondary educational 
21.18 	institution without the student's consent; or 
21.19 	 (2) enter into any agreement to market credit cards to students at a postsecondary 
21.20 	educational institution.
21.21 	 For purposes of this section, the terms "credit," "credit card," and "card issuer" 
21.22 	have the meanings given them in the Truth in Lending Act, United States Code, title 15, 
21.23 	section 1602.
21.24 		Subd. 2.Violations. The attorney general may seek the penalties and remedies 
21.25 	available under section 8.31 against any person who violates this section.

21.26 	EFFECTIVE DATE. This section is effective July 1, 2007, except that it applies to 
21.27 	existing agreements to market credit cards upon the later of the expiration of the original 
21.28 	term of the agreement or the expiration of an extension of the original agreement if the 
21.29 	extension is in effect on July 1, 2007.

21.30 	Sec. 11. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
21.31 		Subdivision 1.Fees and tuition. Except for an administration fee established by the 
21.32 	governing board at a level to recover costs, to be collected only when a course is taken for 
21.33 	credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 
21.34 	of tuition or activity fees to attend courses offered for credit, audit any courses offered 
22.1 	for credit, or enroll in any noncredit courses in any state supported institution of higher 
22.2 	education in Minnesota when space is available after all tuition-paying students have been 
22.3 	accommodated. A senior citizen enrolled under this section must pay any materials, 
22.4 	personal property, or service charges for the course. In addition, a senior citizen who is 
22.5 	enrolled in a course for credit must pay an administrative fee in an amount established 
22.6 	by the governing board of the institution to recover ~~the course~~ costs. There shall be no 
22.7 	administrative fee charges to a senior citizen auditing a course. For the purposes of this 
22.8 	section and section 135A.51, the term "noncredit courses" shall not include those courses 
22.9 	designed and offered specifically and exclusively for senior citizens.
22.10 	The provisions of this section and section 135A.51 do not apply to noncredit courses 
22.11 	designed and offered by the University of Minnesota, and the Minnesota State Colleges 
22.12 	and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 
22.13 	under the provisions of this section and section 135A.51 shall not be included by such 
22.14 	institutions in their computation of full-time equivalent students when requesting staff 
22.15 	or appropriations.

22.16 	Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
22.17 		Subd. 2.Term; income of senior citizens. (a) Except under paragraph (b), there 
22.18 	shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 
22.19 	courses, nor income limitation imposed in determining eligibility.
22.20 	(b) A senior citizen enrolled in a closed enrollment contract training ~~or professional~~ 
22.21 	~~continuing education~~ program is not eligible for benefits under subdivision 1.

22.22 	Sec. 13. [136A.002] DEFINITIONS.
22.23 		Subdivision 1.Scope. For purposes of this chapter, the terms defined in this section 
22.24 	have the meanings given them.
22.25 		Subd. 2.Office of Higher Education; office. "Office of Higher Education" or 
22.26 	"office" means the Minnesota Office of Higher Education.

22.27 	Sec. 14. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
22.28 		Subd. 2.Responsibilities. The Minnesota Office of Higher Education is responsible 
22.29 	for:
22.30 	(1) necessary state level administration of financial aid and Minnesota GI Bill 
22.31 	programs, including accounting, auditing, and disbursing state and federal financial aid 
22.32 	funds, and reporting on financial aid programs to the governor and the legislature;
23.1 	(2) approval, registration, licensing, and financial aid eligibility of private collegiate 
23.2 	and career schools, under sections ~~136A.61~~136A.615 to 136A.71 and chapter 141;
23.3 	(3) administering the Learning Network of Minnesota;
23.4 	(4) negotiating and administering reciprocity agreements;
23.5 	(5) publishing and distributing financial aid information and materials, and other 
23.6 	information and materials under section 136A.87, to students and parents;
23.7 	(6) collecting and maintaining student enrollment and financial aid data and 
23.8 	reporting data on students and postsecondary institutions to develop and implement a 
23.9 	process to measure and report on the effectiveness of postsecondary institutions;
23.10 	(7) administering the federal programs that affect students and institutions on a 
23.11 	statewide basis; and
23.12 	(8) prescribing policies, procedures, and rules under chapter 14 necessary to 
23.13 	administer the programs under its supervision.

23.14 	Sec. 15. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
23.15 		Subd. 5.Expiration. Notwithstanding section 15.059, subdivision 5, the advisory 
23.16 	groups established in this section expire on June 30, ~~2007~~ 2009.

23.17 	Sec. 16. Minnesota Statutes 2006, section 136A.0411, is amended to read:
23.18 	136A.0411 COLLECTING FEES.
23.19 	The office may charge fees for seminars, conferences, workshops, services, and 
23.20 	materials. The office may collect fees for registration and licensure of private institutions 
23.21 	under sections ~~136A.61~~136A.615 to 136A.71 and chapter 141. The money is annually 
23.22 	appropriated to the office. 

23.23 	Sec. 17. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
23.24 		Subd. 7.Reporting. The Minnesota Office of Higher Education must annually, 
23.25 	before the last day in January, submit a report to the committees in the house of 
23.26 	representatives and the senate with responsibility for higher education finance on:
23.27 	(1) participation in the tuition reciprocity program by Minnesota students and 
23.28 	students from other states attending Minnesota postsecondary institutions under a 
23.29 	reciprocity agreement;
23.30 	(2) reciprocity and resident tuition rates at each institution; ~~and~~
23.31 	(3) interstate payments and obligations for each state participating in the tuition 
23.32 	reciprocity program in the prior year~~.~~; and
24.1 	(4) summary statistics on number of graduates by institution, degree granted, and 
24.2 	year of graduation for reciprocity students who attended Minnesota postsecondary 
24.3 	institutions.

24.4 	Sec. 18. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
24.5 		Subd. 4.Eligible institution. "Eligible institution" means a postsecondary 
24.6 	educational institution located in this state or in a state with which the office has entered 
24.7 	into a higher education reciprocity agreement on state student aid programs that ~~either~~ (1) 
24.8 	is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 
24.9 	operated ~~publicly or~~ privately and, as determined by the office, meets all of the following: 
24.10 	(i) maintains academic standards substantially equivalent to those of comparable 
24.11 	institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 
24.12 	by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 
24.13 	Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

24.14 	Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 
24.15 	read:
24.16 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
24.17 	the amount of a ~~family~~family's contribution to a student's cost of attendance, as determined 
24.18 	by a federal need analysis. For dependent students, the assigned family responsibility is 
24.19 	95 percent of the parental contribution. For independent students with dependents other 
24.20 	than a spouse, the assigned family responsibility is 85 percent of the student contribution. 
24.21 	For independent students without dependents other than a spouse, the assigned family 
24.22 	responsibility is ~~72~~67 percent of the student contribution. ~~The assigned family~~ 
24.23 	~~responsibility for all other independent students is 90 percent of the student contribution.~~

24.24 	Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to 
24.25 	read:
24.26 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
24.27 	office to be more than sufficient to fund projected grant demand in the second year of the 
24.28 	biennium, the office may increase the living and miscellaneous expense allowance in the 
24.29 	second year of the biennium by up to an amount that retains sufficient appropriations 
24.30 	to fund the projected grant demand. The adjustment may be made one or more times. 
24.31 	In making the determination that there are more than sufficient funds, the office shall 
24.32 	balance the need for sufficient resources to meet the projected demand for grants with the 
24.33 	goal of fully allocating the appropriation for state grants. An increase in the living and 
25.1 	miscellaneous expense allowance under this subdivision does not carry forward into a 
25.2 	subsequent biennium. ~~This subdivision expires June 30, 2007.~~

25.3 	Sec. 21. Minnesota Statutes 2006, section 136A.121, is amended by adding a 
25.4 	subdivision to read:
25.5 		Subd. 19.Reporting. By November 1 and February 15, the Office of Higher 
25.6 	Education must provide updated state grant spending projections taking into account 
25.7 	the most current and projected enrollment and tuition and fee information, economic 
25.8 	conditions, and other relevant factors. Before submitting state grant spending projections, 
25.9 	the Office of Higher Education must meet and consult with representatives of public and 
25.10 	private postsecondary institutions, the Department of Finance, the Governor's Office, 
25.11 	legislative staff, and financial aid administrators.

25.12 	Sec. 22. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
25.13 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
25.14 	the applicant:
25.15 	(1) is a resident of the state of Minnesota;
25.16 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
25.17 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
25.18 	regular basis from a licensed or legal, nonlicensed caregiver;
25.19 	(3) is income eligible as determined by the office's policies and rules, but is not a 
25.20 	recipient of assistance from the Minnesota family investment program;
25.21 	(4) has not earned a baccalaureate degree and has been enrolled full time less than 
25.22 	eight semesters or the equivalent;
25.23 	(5) is pursuing a nonsectarian program or course of study that applies to an 
25.24 	undergraduate degree, diploma, or certificate;
25.25 	(6) is enrolled at least half time in an eligible institution; and
25.26 	(7) is in good academic standing and making satisfactory academic progress.
25.27 	(b) A student who withdraws from enrollment for active military service is entitled 
25.28 	to an additional semester or the equivalent of grant eligibility and will be considered to be 
25.29 	in continuing enrollment status upon return.

25.30 	Sec. 23. Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read:
25.31 		Subd. 4.Amount and length of grants. The amount of a child care grant must be 
25.32 	based on:
25.33 	(1) the income of the applicant and the applicant's spouse;
26.1 	(2) the number in the applicant's family, as defined by the office; and
26.2 	(3) the number of eligible children in the applicant's family.
26.3 	The maximum award to the applicant shall be ~~$2,300~~$2,600 for each eligible child 
26.4 	per academic year, except that the campus financial aid officer may apply to the office for 
26.5 	approval to increase grants by up to ten percent to compensate for higher market charges 
26.6 	for infant care in a community. The office shall develop policies to determine community 
26.7 	market costs and review institutional requests for compensatory grant increases to ensure 
26.8 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
26.9 	that will be awarded per child based on the factors in this subdivision. The chart shall 
26.10 	include a range of income and family size.

26.11 	Sec. 24. [136A.127] ACADEMIC COMPETITIVENESS HIGHLIGHTING 
26.12 	INDIVIDUAL EXCELLENCE AND VALUING EDUCATION SCHOLARSHIP 
26.13 	PROGRAM.
26.14 		Subdivision 1.Establishment. The academic competitiveness highlighting 
26.15 	individual excellence and valuing education (ACHIEVE) scholarship program is 
26.16 	established  to reward Minnesota students for taking rigorous courses in high school.
26.17 		Subd. 2.Definition; qualifying course. For the purposes of this section, a 
26.18 	"qualifying course" means a course that is equivalent to at least one course credit in high 
26.19 	school, as defined in section 120B.024, and that is a rigorous course as determined by 
26.20 	the local school district. An eligible course must not include a course that provides for 
26.21 	postsecondary education credit at course completion.
26.22 		Subd. 3.Documentation of qualifying courses. The student shall request a 
26.23 	transcript from the high school. The high school shall provide a transcript to the Office 
26.24 	of Higher Education documenting the qualifying courses the student took. High schools 
26.25 	shall certify on the transcript which courses on the transcript are qualifying courses and 
26.26 	provide a total number of qualifying courses for each student.
26.27 		Subd. 4.Review panel. The director of the office shall appoint a review panel to 
26.28 	monitor the implementation of ACHIEVE scholarships. The review panel may assist the 
26.29 	director in examining appeals of whether high school courses qualify for the scholarships. 
26.30 	The review panel shall include representatives of public and private high schools and 
26.31 	postsecondary institutions.
26.32 		Subd. 5.Student eligibility. To be eligible to receive a scholarship under this 
26.33 	section, in addition to the requirements listed under section 136A.121, a student must:
27.1 	(1) take qualifying courses or earn credits equivalent to courses in grades 9 through 
27.2 	12 in a Minnesota high school, or be home-schooled pursuant to section 120A.22, and 
27.3 	graduate from high school;
27.4 	(2) have a family adjusted gross income in the last complete calendar year prior to 
27.5 	the academic year of postsecondary attendance of less than $50,000;
27.6 	(3) be a United States citizen or eligible noncitizen as defined in section 484 of the 
27.7 	Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and 
27.8 	Code of Federal Regulations, title 34, section 668.33; and
27.9 	(4) be a Minnesota resident as defined in section 136A.101, subdivision 8.
27.10 		Subd. 6.Administration. ACHIEVE scholarships shall be administered by the 
27.11 	Minnesota Office of Higher Education.
27.12 		Subd. 7.Documentation of qualifying family income. The parents of the students 
27.13 	must document a qualifying family income by declaration on the application stating that 
27.14 	they meet the income requirement. The Office of Higher Education or the postsecondary 
27.15 	institution may request copies of federal individual income tax returns as documentation.
27.16 		Subd. 8.Scholarships awards. Minnesota ACHIEVE scholarships shall consist of 
27.17 	$314 per qualifying course taken while the student attended a Minnesota high school. The 
27.18 	scholarships may be used to pay for qualifying expenses at eligible institutions.
27.19 		Subd. 9.Qualifying expenses. Qualifying expenses are components included 
27.20 	under the cost of attendance used for federal student financial aid programs as defined 
27.21 	in section 472 of the Higher Education Act, United States Code, title 20, sections 1091 
27.22 	et seq., as amended.
27.23 		Subd. 10.Eligible institutions. Eligible institutions are Minnesota State Colleges 
27.24 	and Universities institutions, University of Minnesota campuses, Minnesota not-for-profit 
27.25 	institutions, and Minnesota degree-granting for-profit institutions. Private institutions 
27.26 	must either be accredited, registered, or licensed with the Minnesota Office of Higher 
27.27 	Education and participating in the Minnesota state grant program.
27.28 		Subd. 11.Availability of scholarship funds. Each scholarship is available for 
27.29 	up to four academic years immediately following high school graduation; after that 
27.30 	date, the scholarship is no longer available to the student. The office must certify to the 
27.31 	commissioner of finance by October 1 of each year the amounts to be canceled from 
27.32 	scholarship eligibility that has expired.
27.33 		Subd. 12.Disbursement of scholarships. The office shall provide payment to the 
27.34 	postsecondary institution on behalf of the student.

27.35 	EFFECTIVE DATE. This section is effective July 1, 2008.

28.1 	Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
28.2 		Subdivision 1.Scope. For purposes of sections 136A.15 to ~~136A.1702~~ 136A.1701, 
28.3 	the terms defined in this section have the meanings ~~ascribed to~~given them. 

28.4 	Sec. 26. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
28.5 		Subd. 6.Eligible institution. "Eligible institution" means a postsecondary 
28.6 	educational institution that ~~either~~ (1) is operated or regulated by this state~~,~~ or the Board of 
28.7 	Regents of the University of Minnesota; (2) is operated publicly or privately in another 
28.8 	state, is approved by the United States Secretary of Education, and, as determined by 
28.9 	the office, maintains academic standards substantially equal to those of comparable 
28.10 	institutions operated in this state; (3) is licensed or registered as a postsecondary institution 
28.11 	by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 
28.12 	Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 
28.13 	also includes any institution chartered in a province.

28.14 	Sec. 27. Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:
28.15 		Subdivision 1.Designation. Notwithstanding chapter 16C, the Minnesota Office of 
28.16 	Higher Education is designated as the administrative agency for carrying out the purposes 
28.17 	and terms of sections 136A.15 to ~~136A.1702~~ 136A.1701. The office may establish one 
28.18 	or more loan programs. 

28.19 	Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:
28.20 		Subd. 2.Rules. The office shall adopt policies and prescribe appropriate rules to 
28.21 	carry out the purposes of sections 136A.15 to ~~136A.1702~~ 136A.1701. The policies and 
28.22 	rules except as they relate to loans under section 136A.1701 must be compatible with 
28.23 	the provisions of the National Vocational Student Loan Insurance Act of 1965 and the 
28.24 	provisions of title IV of the Higher Education Act of 1965, and any amendments thereof. 

28.25 	Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:
28.26 		Subd. 5.Agencies. The office may contract with guarantee agencies, insurance 
28.27 	agencies, collection agencies, or any other person, to carry out the purposes of sections 
28.28 	136A.15 to ~~136A.1702~~ 136A.1701. 

28.29 	Sec. 30. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:
28.30 		Subd. 8.Investment. Money made available to the office that is not immediately 
28.31 	needed for the purposes of sections 136A.15 to ~~136A.1702~~ 136A.1701 may be invested 
29.1 	by the office. The money must be invested in bonds, certificates of indebtedness, and 
29.2 	other fixed income securities, except preferred stocks, which are legal investments for the 
29.3 	permanent school fund. The money may also be invested in prime quality commercial 
29.4 	paper that is eligible for investment in the state employees retirement fund. All interest 
29.5 	and profits from such investments inure to the benefit of the office or may be pledged for 
29.6 	security of bonds issued by the office or its ~~predecessor, the Minnesota Higher Education~~ 
29.7 	~~Coordinating Board~~ predecessors. 

29.8 	Sec. 31. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:
29.9 		Subd. 9.Staff. The office may employ the professional and clerical staff the 
29.10 	director deems necessary for the proper administration of the loan programs established 
29.11 	and defined by sections 136A.15 to ~~136A.1702~~ 136A.1701. 

29.12 	Sec. 32. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:
29.13 		Subd. 10.Director. Subject to its directives and review, the office may delegate to 
29.14 	the director the responsibility for issuance of public information concerning provisions of 
29.15 	sections 136A.15 to ~~136A.1702~~ 136A.1701, for design of loan application forms, and for 
29.16 	prescribing procedures for submission of applications for loans. 

29.17 	Sec. 33. Minnesota Statutes 2006, section 136A.16, is amended by adding a 
29.18 	subdivision to read:
29.19 		Subd. 16.Interest rate swaps and other agreements. (a) The office may enter into 
29.20 	interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 
29.21 	or other comparable interest rate protection agreements with a third party in connection 
29.22 	with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 
29.23 	comparable interest rate protection agreements.
29.24 	(b) The agreements authorized by this subdivision include without limitation master 
29.25 	agreements, options, or contracts to enter into those agreements in the future and related 
29.26 	agreements, including, without limitation, agreements to provide credit enhancement, 
29.27 	liquidity, or remarketing.
29.28 	(c) The agreements authorized by this subdivision may be entered into on the basis 
29.29 	of negotiation with a qualified third party or through a competitive proposal process on 
29.30 	terms and conditions as and with covenants and provisions approved by the office and 
29.31 	may include, without limitation:
29.32 	(1) provisions establishing reserves;
30.1 	(2) pledging assets or revenues of the office for current or other payments or 
30.2 	termination payments;
30.3 	(3) contracting with the other parties to the agreements to provide for the custody, 
30.4 	collection, securement, investment, and payment of money of the office or money held 
30.5 	in trust; or
30.6 	(4) requiring the issuance of bonds or other agreements authorized by this section 
30.7 	in the future.
30.8 	(d) With respect to bonds or notes outstanding or proposed to be issued bearing 
30.9 	interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 
30.10 	or at a different variable rate determined in accordance with a formula set out in the 
30.11 	agreement on an amount not exceeding the outstanding principal amount of the bonds or 
30.12 	notes at the time of payment in exchange for an agreement by the third party to pay sums 
30.13 	equal to interest on a like amount at a variable rate determined according to a formula 
30.14 	set out in the agreement.
30.15 	(e) With respect to bonds or notes outstanding or proposed to be issued bearing 
30.16 	interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 
30.17 	variable rate determined in accordance with a formula set out in the agreement on an 
30.18 	amount not exceeding the outstanding principal amount of the bonds or notes at the time of 
30.19 	payment in exchange for an agreement by the third party to pay sums equal to interest on a 
30.20 	like amount at a fixed rate or rates determined according to a formula set in the agreement.
30.21 	(f) Subject to any applicable covenants of the office, payments required to be made 
30.22 	by the office under the agreement, including termination payments, may be made from 
30.23 	amounts pledged or available to pay debt service on the bonds or notes with respect to 
30.24 	which the agreement was made or from assets of the loan capital fund of the office. 
30.25 	The office may issue bonds or notes to provide for any payments, including, without 
30.26 	limitation, a termination payment due or to become due under an agreement authorized 
30.27 	under this section.

30.28 	Sec. 34. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:
30.29 		Subdivision 1.Eligibility. A student is eligible to apply for a loan under sections 
30.30 	136A.15 to ~~136A.1702~~ 136A.1701 if the office finds that the student is an eligible student 
30.31 	as defined in those sections and is eligible for a loan under federal laws and regulations 
30.32 	governing the federal guaranteed student loan programs. 

30.33 	Sec. 35. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to 
30.34 	read:
31.1 		Subdivision 1.Establishment of program. The Minnesota Office of Higher 
31.2 	Education may provide for programs of loans which may be made in lieu of or in addition 
31.3 	to loans authorized under sections 136A.15 to ~~136A.1702~~ 136A.1701 and applicable 
31.4 	provisions of federal law as provided in this section. 

31.5 	Sec. 36. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to 
31.6 	read:
31.7 		Subd. 2.Purpose of program. The purpose of the loan programs under this section 
31.8 	is to provide financial assistance for the postsecondary education of students who are 
31.9 	eligible students whether or not such students qualify for a loan or loans under other 
31.10 	provisions of sections 136A.15 to ~~136A.1702~~ 136A.1701. 
31.11 	Loans granted to students may be used solely for educational purposes.

31.12 	Sec. 37. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to 
31.13 	read:
31.14 		Subd. 5.Maximum loans for students. Loans made under this section or sections 
31.15 	136A.15 to ~~136A.1702~~ 136A.1701 to an individual eligible student for vocational study 
31.16 	may be made for a maximum of three academic years or their equivalent and loans made 
31.17 	to any other individual eligible student may be made for a maximum of eight academic 
31.18 	years or their equivalent. 

31.19 	Sec. 38. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
31.20 		Subd. 3.Payments. Work-study payments shall be made to eligible students by 
31.21 	postsecondary institutions as provided in this subdivision.
31.22 	(a) Students shall be selected for participation in the program by the postsecondary 
31.23 	institution on the basis of student financial need.
31.24 	(b) In selecting students for participation, priority must be given to students enrolled 
31.25 	for at least 12 credits. In each academic year, a student may be awarded work-study 
31.26 	payments for one period of nonenrollment or less than half-time enrollment if the student 
31.27 	will enroll on at least a half-time basis during the following academic term.
31.28 	(c) Students will be paid for hours actually worked and the maximum hourly rate 
31.29 	of pay shall not exceed the maximum hourly rate of pay permitted under the federal 
31.30 	college work-study program.
31.31 	(d) Minimum pay rates will be determined by an applicable federal or state law.
31.32 	(e) The office shall annually establish a minimum percentage rate of student 
31.33 	compensation to be paid by an eligible employer.
32.1 	(f) Each postsecondary institution receiving money for state work-study grants 
32.2 	shall make a reasonable effort to place work-study students in employment with eligible 
32.3 	employers outside the institution. However, a public employer other than the institution 
32.4 	may not terminate, lay off, or reduce the working hours of a permanent employee for the 
32.5 	purpose of hiring a work-study student, or replace a permanent employee who is on layoff 
32.6 	from the same or substantially the same job by hiring a work-study student.
32.7 	(g) The percent of the institution's work-study allocation provided to graduate 
32.8 	students shall not exceed the percent of graduate student enrollment at the participating 
32.9 	institution.
32.10 	(h) An institution may use up to 30 percent of its allocation for student internships 
32.11 	with private, for-profit employers.

32.12 	Sec. 39. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
32.13 		Subd. 9.Revenue bonds; limit. The authority is authorized and empowered 
32.14 	to issue revenue bonds whose aggregate principal amount at any time shall not exceed 
32.15 	~~$800,000,000~~ $950,000,000 and to issue notes, bond anticipation notes, and revenue 
32.16 	refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, 
32.17 	to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 
32.18 	renovating, improving, furnishing, or equipping one or more projects or parts thereof. 

32.19 	Sec. 40. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
32.20 		Subdivision 1.Grants. The director of the Minnesota Office of Higher Education 
32.21 	shall award grants to foster postsecondary attendance and retention by providing outreach 
32.22 	services to historically underserved students in grades six through 12 and historically 
32.23 	underrepresented college students. Grants must be awarded to programs that provide 
32.24 	precollege services, including, but not limited to:
32.25 	(1) academic counseling;
32.26 	(2) mentoring;
32.27 	(3) fostering and improving parental involvement in planning for and facilitating a 
32.28 	college education;
32.29 	(4) services for students with English as a second language;
32.30 	(5) academic enrichment activities;
32.31 	(6) tutoring;
32.32 	(7) career awareness and exploration;
32.33 	(8) orientation to college life;
33.1 	(9) assistance with high school course selection and information about college 
33.2 	admission requirements; and
33.3 	(10) financial aid counseling.
33.4 	Grants shall be awarded to postsecondary institutions, professional organizations, 
33.5 	community-based organizations, or others deemed appropriate by the director.
33.6 	Grants shall be awarded for one year and may be renewed for a second year with 
33.7 	documentation to the Minnesota Office of Higher Education of successful program 
33.8 	outcomes.

33.9 	Sec. 41. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
33.10 		Subd. 2.Eligible students. Eligible students include students in grades six through 
33.11 	12 who meet one or more of the following criteria:
33.12 	(1) are counted under section 1124(c) of the Elementary and Secondary Education 
33.13 	Act of 1965 (Title I);
33.14 	(2) are eligible for free or reduced-price lunch under the National School Lunch Act;
33.15 	(3) receive assistance under the Temporary Assistance for Needy Families Law (Title 
33.16 	I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
33.17 	(4) are a member of a group traditionally underrepresented in higher education.
33.18 	Eligible undergraduate students include those who met the student eligibility criteria 
33.19 	for grades 6 through 12.

33.20 	Sec. 42. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
33.21 		Subd. 3.Application process. The director of the Minnesota Office of Higher 
33.22 	Education shall develop a grant application process. The director shall attempt to support 
33.23 	projects in a manner that ensures that eligible students throughout the state have access 
33.24 	to ~~precollege~~program services.
33.25 	The grant application must include, at a minimum, the following information:
33.26 	(1) a description of the characteristics of the students to be served reflective of the 
33.27 	need for services listed in subdivision 1;
33.28 	(2) a description of the services to be provided and a timeline for implementation of 
33.29 	the activities;
33.30 	(3) a description of how the services provided will foster postsecondary attendance
33.31 	and support postsecondary retention;
33.32 	(4) a description of how the services will be evaluated to determine whether the 
33.33 	program goals were met; and
33.34 	(5) other information as identified by the director.
34.1 	Grant recipients must specify both program and student outcome goals, and performance 
34.2 	measures for each goal.

34.3 	Sec. 43. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
34.4 		Subd. 6.Program evaluation. Each grant recipient must annually submit a report 
34.5 	to the Minnesota Office of Higher Education delineating its program and student outcome 
34.6 	goals, and activities implemented to achieve the stated outcomes. The goals must be 
34.7 	clearly stated and measurable. Grant recipients are required to collect, analyze, and report 
34.8 	on participation and outcome data that enable the office to verify that the program goals 
34.9 	were met. The office shall maintain:
34.10 	(1) information about successful precollege program and undergraduate student 
34.11 	retention program activities for dissemination to individuals throughout the state interested 
34.12 	in adopting or replicating successful program practices; and
34.13 	(2) data on the success of the funded projects in increasing the high school 
34.14 	graduation ~~and~~, college participation, and college graduation rates of students served 
34.15 	by the grant recipients. The office may convene meetings of the grant recipients, as 
34.16 	needed, to discuss issues pertaining to the implementation of precollege services and 
34.17 	undergraduate retention programs.

34.18 	Sec. 44. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
34.19 		Subdivision 1.Membership. The board consists of ~~15~~16 members, including 15 
34.20 	members  appointed by the governor with the advice and consent of the senate, and the 
34.21 	commissioner of employment and economic development as an ex officio, nonvoting 
34.22 	member. At least one member of the board must be a resident of each congressional 
34.23 	district. In selecting appointees, the governor must consider the needs of the Board of 
34.24 	Trustees and the balance of the board membership with respect to labor and business 
34.25 	representation and racial, gender, and ethnic composition. Three members must be 
34.26 	students who are enrolled at least half time in a degree, diploma, or certificate program 
34.27 	or have graduated from an institution governed by the board within one year of the date 
34.28 	of appointment. The student members shall include: one member from a community 
34.29 	college, one member from a state university, and one member from a technical college. 
34.30 	The remaining members must be appointed to represent the state at large.

34.31 	Sec. 45. Minnesota Statutes 2006, section 136F.02, subdivision 2, is amended to read:
34.32 		Subd. 2.Term; compensation; removal; vacancies. With respect to appointed 
34.33 	members, the compensation, removal ~~of members~~, and filling of vacancies on the board 
35.1 	are as provided in section 15.0575. Members are appointed for a term of six years, except 
35.2 	that the term of each of the student members is two years. Terms end on June 30, except 
35.3 	that members may serve until their successors are appointed. 

35.4 	Sec. 46. Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read:
35.5 		Subd. 3.Duties. (a) The advisory council shall:
35.6 	(1) develop a statement of the selection criteria to be applied and a description 
35.7 	of the responsibilities and duties of a member of the board and shall distribute this to 
35.8 	potential candidates; and
35.9 	(2) for each position on the board, identify and recruit qualified candidates for the 
35.10 	board, based on the background and experience of the candidates, and their potential for 
35.11 	discharging the responsibilities of a member of the board.
35.12 	(b) The selection criteria developed under paragraph (a), clause (1), must include a 
35.13 	criterion that trustees represent diversity in geography; gender; race; occupation, including 
35.14 	business and labor; and experience.
35.15 	(c) The selection criterion must include an identification of the membership needs 
35.16 	of the board for individual skills relevant to the governance of the Minnesota State 
35.17 	Colleges and Universities and the needs for certain individual characteristics. Individual 
35.18 	characteristics relate to qualities such as gender, race, and geographic location of residence.

35.19 	Sec. 47. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
35.20 		Subdivision 1.Time reporting. As provided in Executive Order 96-2, the board, 
35.21 	in consultation with the commissioners of employee relations and finance, may develop 
35.22 	policies to allow system office or campus employees on salaries, as defined in section 
35.23 	43A.17, subdivision 1, to use negative time reporting in which employees report only that 
35.24 	time for which leave is taken. ~~By the end of the 1997 fiscal year, the board, in consultation~~ 
35.25 	~~with the commissioners of employee relations and finance, shall evaluate the use of~~ 
35.26 	~~negative time reporting and its potential for use with other state employees.~~

35.27 	Sec. 48. Minnesota Statutes 2006, section 136F.58, is amended to read:
35.28 	136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION.
35.29 		Subdivision 1.Authorization. A state college or university may operate a bookstore 
35.30 	in a state college or university building, or may allocate space in a state college or 
35.31 	university building and permit a person or corporation to operate a bookstore without rent 
35.32 	at the campus' pleasure and on such conditions as the board may impose. The board may 
36.1 	provide insurance, at no cost to the state, for the inventory of a bookstore a state college or 
36.2 	university conducts in its building.
36.3 		Subd. 2.Course material. (a) An instructor shall attempt to provide adequate 
36.4 	notice to a bookstore of the intention to order required or recommended course material 
36.5 	so that the bookstore can provide information for the instructor's consideration prior to 
36.6 	placing an order for the course material.
36.7 	(b) A bookstore must make reasonable efforts to obtain from publishers or other 
36.8 	sources, prior to the time an instructor requests the bookstore to order course material, 
36.9 	the following information, including, but not limited to:
36.10 	(1) the title, edition, author, and International Standard Book Number (ISBN) of 
36.11 	the course material;
36.12 	(2) the price for the course material;
36.13 	(3) whether the course material is bundled with optional material, whether it can be 
36.14 	unbundled, and the price for each bundled and unbundled component;
36.15 	(4) whether the material is available in an alternative format and the cost for the 
36.16 	alternatively formatted material;
36.17 	(5) the availability of the course material currently and in the future;
36.18 	(6) changes to the course material from the previous edition, the revision date, 
36.19 	availability, and cost for that edition, if available; and
36.20 	(7) any known plans for future revisions of the course material.
36.21 	(c) An instructor ordering course material through a bookstore shall consider the 
36.22 	information received from the bookstore prior to placing the final order.
36.23 		Subd. 3.Notice to purchase. (a) An instructor shall make reasonable efforts to 
36.24 	notify a bookstore of the final order for required and recommended course material at least 
36.25 	30 days prior to the commencement of the term.
36.26 	(b) The bookstore must make reasonable efforts to notify students of the following 
36.27 	information concerning the required and recommended course material at least 15 days 
36.28 	prior to the commencement of the term for which the course material is required including, 
36.29 	but not limited to:
36.30 	(1) the title, edition, author, and International Standard Book Number (ISBN) of 
36.31 	the course material;
36.32 	(2) the price for the course material;
36.33 	(3) whether the required course material is bundled with optional material, whether 
36.34 	it can be unbundled, and the price for each bundled and unbundled component; and
36.35 	(4) whether the material is available in an alternative format and the cost for the 
36.36 	alternatively formatted material.
37.1 		Subd. 4.System responsibility. The board shall, to the extent it considers 
37.2 	necessary, adopt uniform forms for bookstores to request information under subdivision 2. 
37.3 	The board shall encourage faculty to utilize the information received under subdivision 2 
37.4 	to achieve the lowest cost to students for course materials consistent with the academic 
37.5 	freedom and choice of the faculty member.

37.6 	Sec. 49. Minnesota Statutes 2006, section 136F.70, is amended by adding a subdivision 
37.7 	to read:
37.8 		Subd. 1a.Nonresident undergraduate tuition. The board may not set an 
37.9 	undergraduate tuition rate at community and technical colleges that is different for 
37.10 	nonresident students than for resident students. This subdivision does not apply to 
37.11 	undergraduate tuition rates for a resident of a state that has entered into a reciprocity 
37.12 	agreement under section 136A.08.

37.13 	EFFECTIVE DATE. This section is effective July 1, 2007.

37.14 	Sec. 50. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
37.15 		Subd. 2.Activity funds. All receipts attributable to the state colleges and 
37.16 	universities activity funds ~~and deposited in the state treasury~~ are appropriated to the board 
37.17 	and are not subject to budgetary control as exercised by the commissioner of finance.

37.18 	Sec. 51. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 
37.19 	to read:
37.20 		Subd. 4.Banking services. Notwithstanding section 16A.27, the board shall 
37.21 	have authority to control the amount and manner of deposit of all receipts described in 
37.22 	this section in depositories selected by the board. The board's authority shall include 
37.23 	specifying the considerations, financial activities, and conditions required from the 
37.24 	depository, including the requirement of collateral security or a corporate surety bond 
37.25 	as described in section 118A.03. The board may compensate the depository, including 
37.26 	paying a reasonable charge to the depository, maintaining appropriate compensating 
37.27 	balances with the depository, or purchasing non-interest-bearing certificates of deposit 
37.28 	from the depository for performing depository-related services.

37.29 	Sec. 52. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
37.30 		Subd. 5.Amount of matching grant. The amount of the matching grant for a 
37.31 	beneficiary equals:
38.1 	(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 
38.2 	of the contributions made to the beneficiary's account during the calendar year, not to 
38.3 	exceed ~~$300~~ $400; and
38.4 	(2) if the beneficiary's family income is more than $50,000 but not more than 
38.5 	$80,000, ~~five~~ ten percent of the sum of the contributions made to the beneficiary's account 
38.6 	during the calendar year, not to exceed ~~$300~~ $400.

38.7 	Sec. 53. Minnesota Statutes 2006, section 137.0245, subdivision 4, is amended to read:
38.8 		Subd. 4.Recommendations. (a) The advisory council shall recommend at least 
38.9 	two and not more than four candidates. By January 15 of each odd-numbered year, 
38.10 	the advisory council shall submit its recommendations to the governor and to the joint 
38.11 	committee established in section 137.0246, subdivision 2.
38.12 	(b) The advisory council must submit a report to the governor and to the joint 
38.13 	committee on the needs criterion identified under subdivision 3, paragraph (c), at the 
38.14 	same time it submits its recommendations.

38.15 	Sec. 54. Minnesota Statutes 2006, section 137.0246, subdivision 2, is amended to read:
38.16 		Subd. 2.Joint committee. (a) The joint legislative committee consists of ~~20~~ 
38.17 	~~legislator members. Ten members shall be appointed by the speaker of the house. Ten~~ 
38.18 	~~members shall be appointed by the Subcommittee on Committees of the Committee~~ 
38.19 	~~on Rules and Administration from the senate. An equal number of members from the~~ 
38.20 	~~majority and minority party shall be appointed from each house. The members appointed~~ 
38.21 	~~from the minority party must be appointed from among those recommended by the~~ 
38.22 	~~minority leader. The chairs of the education policy committees and of~~ the higher education 
38.23 	budget divisions ~~and the ranking minority member of those committees and divisions~~ 
38.24 	~~must be appointed~~ in each house of the legislature. A majority of the members from each 
38.25 	house is a quorum of the joint committee.
38.26 	(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 
38.27 	resolution, the joint legislative committee shall meet to consider the governor's nominees 
38.28 	and all of the regent candidate advisory council's recommendations for regent of the 
38.29 	University of Minnesota for possible presentation to a joint convention of the legislature.
38.30 	~~(c) The joint committee may only recommend to the joint convention nominees~~ 
38.31 	~~recommended by the governor. If the joint committee does not recommend a governor's~~ 
38.32 	~~nominee, the governor must submit a different nominee for the same vacancy.~~

38.33 	Sec. 55. Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read:
39.1 		Subd. 4.Delayed payment of tuition. A state college or university may not assess 
39.2 	late fees or other late charges for veterans who are eligible to receive federal or state 
39.3 	educational assistance and who have applied for that assistance but not yet received it, 
39.4 	nor may they prevent these students from registering for a subsequent term because of 
39.5 	outstanding tuition charges that arise from delayed federal or state payments. The state 
39.6 	college or university may request without delay the amount of tuition above expected 
39.7 	federal  and state educational assistance and may require payment of the full amount of 
39.8 	tuition owed by the veteran within 30 days of receipt of the expected federal or state 
39.9 	educational assistance.

39.10 	Sec. 56. [197.791] MINNESOTA GI BILL PROGRAM.
39.11 		Subdivision 1.Policy. It is the policy of the state of Minnesota to provide 
39.12 	postsecondary educational assistance to Minnesota veterans who have provided honorable 
39.13 	service to this state and nation as members of the United States armed forces, whether 
39.14 	in peacetime or in war, and to the spouses and children of Minnesota veterans who have 
39.15 	become severely disabled or deceased during or as the direct result of military service.
39.16 		Subd. 2.Definitions.  (a) The definitions in this subdivision apply to this section. 
39.17 	(b) "Commissioner"  means the commissioner of veterans affairs, unless otherwise 
39.18 	specified.
39.19 	(c) "Cost of attendance" for both undergraduate and graduate students has the 
39.20 	meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
39.21 	(d) "Child" means a natural or adopted child of a person described in subdivision 5, 
39.22 	paragraph (a), clause (1), item (i) or (ii).
39.23 	(e) "Director" means the director of the Minnesota Office of Higher Education.
39.24 	(f)  "Eligible institution" means a postsecondary institution located in this state.
39.25 	(g) "Eligible student" means a person who:
39.26 	(1) if the student is an undergraduate student, has applied for the federal Pell Grant 
39.27 	and the Minnesota State Grant;
39.28 	(2) is maintaining satisfactory academic progress as defined by the institution for 
39.29 	students participating in federal Title IV programs;
39.30 	(3) is enrolled in an education program leading to a certificate, diploma, or degree 
39.31 	at an eligible institution; 
39.32 	(4) has applied for educational assistance under the Minnesota GI Bill program prior 
39.33 	to the end of the academic term for which the assistance is being requested; and
39.34 	(5) is in compliance with child support payment requirements under section 
39.35 	136A.121, subdivision 2, clause (5).
40.1 	(h) "Program" means the Minnesota GI Bill program established in this section, 
40.2 	unless otherwise specified.
40.3 	(i) "Time of hostilities" means any action by the armed forces of the United 
40.4 	States that is recognized by the issuance of a presidential proclamation or a presidential 
40.5 	executive order and in which the armed forces expeditionary medal or other campaign 
40.6 	service medals are awarded according to presidential executive order, and any additional 
40.7 	period or place that the commissioner determines and designates, after consultation with 
40.8 	the United States Department of Defense, to be a period or place where the United States 
40.9 	is in a conflict that places persons at such a risk that service in a foreign country during 
40.10 	that period or in that place should be considered to be included.
40.11 	(j) "Veteran" has the meaning given in section 197.447, and also includes a service 
40.12 	member who has received an honorable discharge after leaving each period of federal 
40.13 	active duty service and has: 
40.14 	(1) served 90 days or more of federal active duty in a foreign country during a time 
40.15 	of hostilities in that country; or
40.16 	(2) received a service-related medical discharge from any period of service in a 
40.17 	foreign country during a time of hostilities in that country.
40.18 	A service member who has fulfilled the requirements for being a veteran under this 
40.19 	paragraph but is still serving actively in the United States armed forces is also a veteran 
40.20 	for the purposes of this section.
40.21 		Subd. 3.Program established. There is established a program to provide 
40.22 	postsecondary educational assistance to eligible Minnesota veterans and to the children 
40.23 	and spouses of deceased and severely disabled Minnesota veterans. This program may be 
40.24 	cited as the "Minnesota GI Bill program." 
40.25 	The director, in consultation with the commissioner and in cooperation with 
40.26 	eligible postsecondary educational institutions, shall expend a biennial appropriation 
40.27 	for the purpose of providing postsecondary educational assistance to eligible persons 
40.28 	in accordance with this program. Each public postsecondary educational institution in 
40.29 	the state must participate in the program and each private postsecondary educational 
40.30 	institution in the state is encouraged to participate in the program. Any participating 
40.31 	private institution may suspend or terminate its participation in the program at the end 
40.32 	of any semester or other academic term.
40.33 		Subd. 4.Duties; responsibilities. (a) The director, in consultation with the 
40.34 	commissioner, shall establish policies and procedures including, but not limited to, 
40.35 	procedures for student application record keeping, information sharing, payment to 
40.36 	participating eligible institutions, and other procedures the director considers appropriate 
41.1 	and necessary for effective and efficient administration of the program established in 
41.2 	this section.
41.3 	(b) The director, in consultation with the commissioner, may delegate part or 
41.4 	all of the administrative procedures for the program to responsible representatives of 
41.5 	participating eligible institutions.
41.6 		Subd. 5.Eligibility. (a) A person is eligible for educational assistance under this 
41.7 	section if:
41.8 	(1) the person is:
41.9 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
41.10 	United States armed forces at any time on or after August 2, 1990;
41.11 	(ii) a nonveteran who has served honorably for a total of 16 years or more 
41.12 	cumulatively as a member of the Minnesota national guard or any other active or reserve 
41.13 	component of the United States armed forces, and any part of that service occurred on 
41.14 	or after August 2, 1990;
41.15 	(iii) the surviving spouse or child of a person who has served in the military at 
41.16 	any time on or after August 2, 1990, and who has died as a direct result of that military 
41.17 	service; or
41.18 	(iv) the spouse or child of a person who has served in the military at any time on or 
41.19 	after August 2, 1990, and who has a total and permanent service-connected disability as 
41.20 	rated by the United States Veterans Administration;
41.21 	(2) the person providing the military service described in clause (1), items (i) to (iv), 
41.22 	was a Minnesota resident within six months of the time of the person's initial enlistment or 
41.23 	any reenlistment in the United States armed forces;
41.24 	(3) the person receiving the educational assistance is a Minnesota resident, as 
41.25 	defined in section 136A.101, subdivision 8; and
41.26 	(4) the person receiving the educational assistance is an eligible student.
41.27 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
41.28 	under section 135A.52.
41.29 	(c) As proof of honorable service and disability or death status for a veteran or 
41.30 	service member, the director, by policy and in consultation with the commissioner, may 
41.31 	require official documentation, including the person's federal form DD-214 or other official 
41.32 	military discharge papers; correspondence from the United States Veterans Administration; 
41.33 	birth certificate; marriage certificate; proof of enrollment at an eligible institution; signed 
41.34 	affidavits; proof of residency; proof of identity; or any other official documentation the 
41.35 	director considers necessary to determine an applicant's eligibility status.
42.1 	(d) The director, in consultation with the commissioner, may deny eligibility or 
42.2 	terminate benefits under this section to any person who has not provided sufficient proof of 
42.3 	eligibility for the program. An applicant may appeal the director's eligibility determination 
42.4 	in writing to the director at any time. The director must rule on any application or appeal 
42.5 	within 30 days of receipt of all documentation that the director requires. Upon receiving 
42.6 	an application with insufficient documentation, the director must notify the applicant 
42.7 	within 30 days of receipt of the application that the application is being suspended pending 
42.8 	receipt by the director of sufficient documentation from the applicant. The decision of the 
42.9 	director regarding an appeal is final; however, an applicant whose appeal of an eligibility 
42.10 	determination has been rejected by the director may submit an additional appeal of that 
42.11 	determination in writing to the director at any time that the applicant is able to provide 
42.12 	substantively significant additional information regarding the applicant's eligibility for the 
42.13 	program. An approval of an applicant's eligibility by the director following an appeal by 
42.14 	the applicant is not retroactively effective for more than one year or the semester of the 
42.15 	person's original application, whichever is later.
42.16 		Subd. 6.Benefit amount. (a) On approval by the director of an applicant's 
42.17 	eligibility for the program, the applicant shall be awarded, on a funds-available basis, 
42.18 	the educational assistance under the program for use at any time according to program 
42.19 	rules at any eligible institution.
42.20 	(b) The amount of educational assistance in any semester or term for an eligible 
42.21 	person must be determined by subtracting from the eligible person's cost of attendance 
42.22 	at that eligible public institution or, in the case of an eligible private institution, the cost 
42.23 	of attendance for a comparable program at the Twin Cities campus of the University of 
42.24 	Minnesota, the amount received in that semester or term by that person from:
42.25 	(1) the federal Pell Grant;
42.26 	(2) the state grant program; and
42.27 	(3) any federal military or veterans educational benefits including but not limited 
42.28 	to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
42.29 	vocational rehabilitation benefits, and any other federal benefits associated with the 
42.30 	person's status as a veteran, except veterans disability payments from the United States 
42.31 	Veterans Administration.
42.32 	(c) The amount of education assistance for any eligible person who is a full-time 
42.33 	student must not exceed any of the following amounts:
42.34 	(1) $1,000 per semester or term of enrollment;
42.35 	(2) $3,000 per state fiscal year; and
42.36 	(3) $10,000 total.
43.1 	For a part-time student, the amount of education assistance must not exceed $500 
43.2 	per semester or term of enrollment. For the purpose of this paragraph, a part-time 
43.3 	undergraduate student is a student taking fewer than 12 credits for a semester or term 
43.4 	of enrollment and a part-time graduate student is a student considered part time by the 
43.5 	eligible institution the graduate student is attending.

43.6 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to 
43.7 	qualifying coursework taken on or after that date.

43.8 	Sec. 57.  REPEALER.
 43.9 	(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 5, and 6; 
43.10 	135A.032; 135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; and 
43.11 	136A.1702, are repealed.
43.12 	(b) Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; 
43.13 	and 4, subdivision 5, are repealed.

43.14 	ARTICLE 3
43.15 	PRIVATE INSTITUTIONS

43.16 	Section 1. [136A.615] CITATION.
43.17 	Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 
43.18 	Out-of-State Public Postsecondary Education Act."

43.19 	Sec. 2. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
43.20 		Subd. 3.School. "School" means:
43.21 	(1) any individual, partnership, company, firm, society, trust, association, 
43.22 	corporation, or any combination thereof, which ~~(a)~~ (i) is, owns, or operates a private~~,~~ 
43.23 	~~nonprofit~~ postsecondary education institution; ~~(b)~~ or (ii) provides a postsecondary 
43.24 	instructional program or course leading to a degree whether or not for profit; ~~(c)is, owns,~~ 
43.25 	~~or operates a private, postsecondary education institution which uses the term "college",~~ 
43.26 	~~"academy", "institute" or "university" in its name; or (d) operates for profit and provides~~ 
43.27 	~~programs or courses which are intended to allow an individual to fulfill in part or totally~~ 
43.28 	~~the requirements necessary to maintain a license to practice an occupation. School shall~~ 
43.29 	~~also mean~~
43.30 	(2) any public postsecondary educational institution located in another state or 
43.31 	country which offers or makes available to a Minnesota resident any course, program or 
43.32 	educational activity which does not require the leaving of the state for its completion~~.~~; or 
44.1 	(3) any individual, entity, or postsecondary institution located in another state 
44.2 	that contracts with any school located within the state of Minnesota for the purpose of 
44.3 	providing educational programs, training programs, or awarding postsecondary credits 
44.4 	or continuing education credits to Minnesota residents that may be applied to a degree 
44.5 	program.

44.6 	Sec. 3. Minnesota Statutes 2006, section 136A.63, is amended to read:
44.7 	136A.63 REGISTRATION.
44.8 	All schools located within Minnesota and all schools located outside Minnesota 
44.9 	which offer degree programs or courses within Minnesota shall register annually with 
44.10 	the office.

44.11 	Sec. 4. Minnesota Statutes 2006, section 136A.65, subdivision 1, is amended to read:
44.12 		Subdivision 1.Prohibition. No school subject to registration shall grant a degree 
44.13 	unless such degree and its underlying curriculum, is approved by the office, nor shall 
44.14 	any school subject to registration use the name "college," "academy," "institute" or 
44.15 	"university" in its name without approval by the office.

44.16 	Sec. 5. Minnesota Statutes 2006, section 136A.65, is amended by adding a subdivision 
44.17 	to read:
44.18 		Subd. 1a.Accreditation; requirement. No school shall be registered or authorized 
44.19 	to offer any degree at any level unless such school is accredited by an agency recognized 
44.20 	by the United States Department of Education for purposes of eligibility to participate in 
44.21 	federal financial aid programs, Title IV.

44.22 	Sec. 6. Minnesota Statutes 2006, section 136A.653, is amended to read:
44.23 	136A.653 EXEMPTIONS.
44.24 		Subdivision 1.Exemption. A school that is subject to licensing by the office under 
44.25 	chapter 141, is exempt from the provisions of sections ~~136A.61~~ 136A.615 to 136A.71. 
44.26 	The determination of the office as to whether a particular school is subject to regulation 
44.27 	under chapter 141 is final for the purposes of this exemption. 
44.28 		Subd. 2.Educational program; nonprofit organizations. Educational programs 
44.29 	which are sponsored by a bona fide and nonprofit trade, labor, business, professional 
44.30 	or fraternal organization, which programs are conducted solely for that organization's 
44.31 	membership or for the members of the particular industries or professions served by that 
45.1 	organization, and which are not available to the public on a fee basis, are exempted from 
45.2 	the provisions of sections ~~136A.61~~ 136A.615 to 136A.71. 
45.3 		Subd. 3.Educational program; business firms. Educational programs which are 
45.4 	sponsored by a business firm for the training of its employees or the employees of other 
45.5 	business firms with which it has contracted to provide educational services at no cost to the 
45.6 	employees are exempted from the provisions of sections ~~136A.61~~ 136A.615 to 136A.71. 
45.7 		Subd. 4.Voluntary submission. Any school or program exempted from the 
45.8 	provisions of sections ~~136A.61~~ 136A.615 to 136A.71 by the provisions of this section 
45.9 	may voluntarily submit to the provisions of those sections. 

45.10 	Sec. 7. Minnesota Statutes 2006, section 136A.657, subdivision 1, is amended to read:
45.11 		Subdivision 1.Exemption. Any school or any department or branch of a school (a) 
45.12 	which is substantially owned, operated or supported by a bona fide church or religious 
45.13 	organization; (b) whose programs are primarily designed for, aimed at and attended by 
45.14 	persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 
45.15 	church or religious organization; and (c) whose programs are primarily intended to prepare 
45.16 	its students to become ministers of, to enter into some other vocation closely related to, or 
45.17 	to conduct their lives in consonance with, the particular faith of that church or religious 
45.18 	organization, is exempt from the provisions of sections ~~136A.61~~ 136A.615 to 136A.71. 

45.19 	Sec. 8. Minnesota Statutes 2006, section 136A.657, subdivision 2, is amended to read:
45.20 		Subd. 2.Limitation. This exemption shall not extend to any school or to any 
45.21 	department or branch of a school, or program of the school, which through advertisements 
45.22 	or solicitations represents to any students or prospective students that the school, its 
45.23 	aims, goals, missions or purposes or its programs are different from those described in 
45.24 	subdivision 1. This exemption shall not extend to any school which represents to any 
45.25 	student or prospective student that the major purpose of its programs is to prepare the 
45.26 	student for a vocation not closely related to that particular religious faith, or to provide 
45.27 	the student with a general educational program recognized by other schools or the 
45.28 	broader educational, business or social community as being substantially equivalent to 
45.29 	the educational programs offered by schools or departments or branches of schools 
45.30 	which are not exempt from sections ~~136A.61~~ 136A.615 to 136A.71, and rules adopted 
45.31 	pursuant thereto. 

45.32 	Sec. 9. Minnesota Statutes 2006, section 136A.657, subdivision 3, is amended to read:
46.1 		Subd. 3.Scope. Nothing in sections ~~136A.61~~ 136A.615 to 136A.71, or the rules 
46.2 	adopted pursuant thereto, shall be interpreted as permitting the office to determine the 
46.3 	truth or falsity of any particular set of religious beliefs. 

46.4 	Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended by adding a 
46.5 	subdivision to read:
46.6 		Subd. 4.Statement required; religious nature. Any degree awarded upon 
46.7 	completion of a religiously exempt program shall include descriptive language to make 
46.8 	the religious nature of the degree clear.

46.9 	Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:
46.10 	136A.66 LIST.
46.11 	The office shall maintain a list of ~~schools~~registered institutions authorized to grant 
46.12 	degrees and schools authorized to use the name "college," "academy," "institute" or 
46.13 	"university," and shall make such list available to the public.

46.14 	Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:
46.15 	136A.67 ~~UNAUTHORIZED REPRESENTATIONS~~ DISCLOSURE 
46.16 	REQUIRED.
46.17 	~~No school and none of its officials or employees shall advertise or represent in any~~ 
46.18 	~~manner that such school is approved or accredited by the office or state of Minnesota~~ 
46.19 	~~except that any~~A school which is duly registered with the office, or any of its officials or 
46.20 	employees, ~~may represent~~shall disclose in all advertising, application, and enrollment 
46.21 	materials that the school is registered with the office~~.~~ by prominently displaying the 
46.22 	following statement:
46.23 	"(Name of school) is registered as a private institution with the Minnesota Office of Higher 
46.24 	Education pursuant to Minnesota Statutes, sections 136A.615 to 136A.71. Registration is 
46.25 	not an endorsement of the institution. Credits earned at the institution may not transfer 
46.26 	to all other institutions."

46.27 	Sec. 13. Minnesota Statutes 2006, section 136A.68, is amended to read:
46.28 	136A.68 RECORDS.
46.29 	~~After August 1, 1975, all schools located in this state must maintain permanent~~ 
46.30 	~~records of all students enrolled therein at any time. The office may require schools to~~ 
46.31 	~~provide a plan acceptable to the office for preserving all such records for at least ten years.~~ 
47.1 	~~The office may require that such plan include the filing of a continuous surety bond or a~~ 
47.2 	~~deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving~~ 
47.3 	~~records after such school ceases to exist.~~ A registered school shall maintain a permanent 
47.4 	record for each student for 50 years from the last date of the student's attendance. A 
47.5 	registered school offering distance instruction to a student located in Minnesota shall 
47.6 	maintain a permanent record for each Minnesota student for 50 years from the last date of 
47.7 	the student's attendance. Records include a student's academic transcript, documents, and 
47.8 	files containing student data about academic credits earned, courses completed, grades 
47.9 	awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 
47.10 	school shall submit a plan that meets the following requirements: 
47.11 	(1) at least one copy of the records must be held in a secure, fireproof depository or 
47.12 	duplicate records must be maintained off-site in a secure location and manner approved 
47.13 	by the office; 
47.14 	(2) an appropriate official must be designated to provide a student with copies of 
47.15 	records or a transcript upon request;
47.16 	(3) an alternative method approved by the office, of complying with clauses (1) and 
47.17 	(2), must be established if the school ceases to exist; and
47.18 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
47.19 	$20,000 if the school has no binding agreement approved by the office for preserving 
47.20 	student records. The bond shall run to the state of Minnesota.

47.21 	Sec. 14. Minnesota Statutes 2006, section 136A.69, is amended to read:
47.22 	136A.69 FEES.
47.23 		Subdivision 1.Registration fees. The office shall collect reasonable registration 
47.24 	fees that are sufficient to recover, but do not exceed, its costs of administering the 
47.25 	registration program. The office shall charge $1,100 for initial registration fees and $950 
47.26 	for annual renewal fees.
47.27 		Subd. 2.Degree level addition fee. The office processing fee for adding a degree 
47.28 	level to an existing program is $2,000 per program.
47.29 		Subd. 3.Program addition fee. The office processing fee for adding a program 
47.30 	that represents a significant departure in the objectives, content, or method of delivery of 
47.31 	programs that are currently offered by the school is $500 per program.
47.32 		Subd. 4.Visit or consulting fee. If the office determines that a fact-finding visit 
47.33 	or outside consultant is necessary to review or evaluate any new or revised program, the 
47.34 	office shall be reimbursed for the expenses incurred related to the review as follows:
48.1 	(1) $300 for the team base fee or for a paper review conducted by a consultant if the 
48.2 	office determines that a fact-finding visit is not required;
48.3 	(2) $300 for each day or part of a day per on-site team member; and
48.4 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
48.5 	by team members.
48.6 		Subd. 5.Modification fee. The fee for modification of any existing program is 
48.7 	$100 and is due if there is:
48.8 	(1) an increase or decrease of 25 percent or more, from the original date of program 
48.9 	approval, in clock hours, credit hours, or calendar length of an existing program;
48.10 	(2) a change in academic measurement from clock hours to credit hours or vice 
48.11 	versa; or
48.12 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
48.13 	the objectives, content, or methods of delivery.

48.14 	Sec. 15. [136A.705] PENALTY.
48.15 	The director may assess fines for violations of a provision of sections 136A.615 to 
48.16 	136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 
48.17 	shall be a separate violation and fines shall not exceed $500 per day per violation. 
48.18 	Amounts received under this section must be deposited into the special revenue fund and 
48.19 	may be used for the purposes in sections 136A.615 to 136A.71.

48.20 	Sec. 16. Minnesota Statutes 2006, section 136A.71, is amended to read:
48.21 	136A.71 INJUNCTION.
48.22 	Upon application of the attorney general the district courts shall have jurisdiction to 
48.23 	enjoin any violations of sections ~~136A.61~~ 136A.615 to 136A.71. 

48.24 	Sec. 17. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
48.25 		Subd. 1a.Office of Higher Education; office. "Office of Higher Education" or 
48.26 	"office" means the Minnesota Office of Higher Education.

48.27 	Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
48.28 		Subd. 5.School. "School" means any person, within or outside the state, who 
48.29 	maintains, advertises, administers, solicits for, or conducts any program ~~for profit~~ at ~~any~~
48.30 	less than an associate degree level ~~other than baccalaureate or graduate programs, and is~~ 
48.31 	~~not specifically exempted by sections 141.21 to~~, is not registered as a private institution 
49.1 	under sections 136A.615 to 136A.71, and is not specifically exempted by section 141.35
49.2 	or 141.37. 

49.3 	Sec. 19. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
49.4 		Subdivision 1.Required. A school must not maintain, advertise, solicit for, 
49.5 	administer, or conduct any program in Minnesota without first obtaining a license from 
49.6 	the office.

49.7 	Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
49.8 		Subd. 5.Bond. (a) No license shall be issued to any school which maintains, 
49.9 	conducts, solicits for, or advertises within the state of Minnesota any program, unless the 
49.10 	applicant files with the office a continuous corporate surety bond written by a company 
49.11 	authorized to do business in Minnesota conditioned upon the faithful performance of all 
49.12 	contracts and agreements with students made by the applicant.
49.13 	(b) The amount of the surety bond shall be ten percent of the preceding year's gross 
49.14 	income from student tuition, fees, and other required institutional charges, but in no event 
49.15 	less than $10,000 nor greater than $250,000, except that a school may deposit a greater 
49.16 	amount at its own discretion. A school in each annual application for licensure must 
49.17 	compute the amount of the surety bond and verify that the amount of the surety bond 
49.18 	complies with this subdivision, unless the school maintains a surety bond equal to at least 
49.19 	$250,000. A school that operates at two or more locations may combine gross income 
49.20 	from student tuition, fees, and other required institutional charges for all locations for the 
49.21 	purpose of determining the annual surety bond requirement. The gross tuition and fees 
49.22 	used to determine the amount of the surety bond required for a school having a license for 
49.23 	the sole purpose of recruiting students in Minnesota shall be only that paid to the school 
49.24 	by the students recruited from Minnesota.
49.25 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
49.26 	cause of action against the applicant arising at any time after the bond is filed and before it 
49.27 	is canceled for breach of any contract or agreement made by the applicant with any student. 
49.28 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
49.29 	exceed the principal sum deposited by the school under paragraph (b). The surety of any 
49.30 	bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 
49.31 	of liability for any breach of condition occurring after the effective date of cancellation.
49.32 	(d) In lieu of bond, the applicant may deposit with the commissioner of finance a 
49.33 	sum equal to the amount of the required surety bond in cash, or securities as may be 
50.1 	legally purchased by savings banks or for trust funds in an aggregate market value equal 
50.2 	to the amount of the required surety bond.
50.3 	(e) Failure of a school to post and maintain the required surety bond or deposit under 
50.4 	paragraph (d) ~~may~~shall result in denial, suspension, or revocation of the school's license.

50.5 	Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
50.6 		Subd. 7.Minimum standards. A license shall be issued if the office first 
50.7 	determines:
50.8 	(1) that the applicant has a sound financial condition with sufficient resources 
50.9 	available to:
50.10 	(i) meet the school's financial obligations;
50.11 	(ii) refund all tuition and other charges, within a reasonable period of time, in the 
50.12 	event of dissolution of the school or in the event of any justifiable claims for refund against 
50.13 	the school by the student body;
50.14 	(iii) provide adequate service to its students and prospective students; and
50.15 	(iv) maintain and support the school;
50.16 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment 
50.17 	and the necessary number of work stations to prepare adequately the students currently 
50.18 	enrolled, and those proposed to be enrolled;
50.19 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
50.20 	provide the educational programs contemplated;
50.21 	(4) that the school has an organizational framework with administrative and 
50.22 	instructional personnel to provide the programs and services it intends to offer;
50.23 	(5) that the premises and conditions under which the students work and study are 
50.24 	sanitary, healthful, and safe, according to modern standards;
50.25 	(6) that the quality and content of each occupational course or program of study 
50.26 	provides education and adequate preparation to enrolled students for entry level positions 
50.27 	in the occupation for which prepared;
50.28 	(7) that the living quarters which are owned, maintained, recommended, or approved 
50.29 	by the applicant for students are sanitary and safe;
50.30 	(8) that the contract or enrollment agreement used by the school complies with 
50.31 	the provisions in section 141.265; 
50.32 	(9) that contracts and agreements do not contain a wage assignment provision or a 
50.33 	confession of judgment clause; and
51.1 	(10) that there has been no adjudication of fraud or misrepresentation in any 
51.2 	criminal, civil, or administrative proceeding in any jurisdiction against the school or its 
51.3 	owner, officers, agents, or sponsoring organization.

51.4 	Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
51.5 		Subd. 9.Catalog, brochure, or electronic display. Before a license is issued to 
51.6 	a school, the school shall furnish to the office a catalog, brochure, or electronic display 
51.7 	including:
51.8 	(1) identifying data, such as volume number and date of publication;
51.9 	(2) name and address of the school and its governing body and officials;
51.10 	(3) a calendar of the school showing legal holidays, beginning and ending dates of 
51.11 	each course quarter, term, or semester, and other important dates;
51.12 	(4) the school policy and regulations on enrollment including dates and specific 
51.13 	entrance requirements for each program;
51.14 	(5) the school policy and regulations about leave, absences, class cuts, make-up 
51.15 	work, tardiness, and interruptions for unsatisfactory attendance;
51.16 	(6) the school policy and regulations about standards of progress for the student 
51.17 	including the grading system of the school, the minimum grades considered satisfactory, 
51.18 	conditions for interruption for unsatisfactory grades or progress, a description of any 
51.19 	probationary period allowed by the school, and conditions of reentrance for those 
51.20 	dismissed for unsatisfactory progress;
51.21 	(7) the school policy and regulations about student conduct and conditions for 
51.22 	dismissal for unsatisfactory conduct;
51.23 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
51.24 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
51.25 	(9) the school policy and regulations, including an explanation of section 141.271, 
51.26 	about refunding tuition, fees, and other charges if the student does not enter the program, 
51.27 	withdraws from the program, or the program is discontinued;
51.28 	(10) a description of the available facilities and equipment;
51.29 	(11) a course outline syllabus for each course offered showing course objectives, 
51.30 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
51.31 	hours, or credits to be spent on each subject or unit;
51.32 	(12) the school policy and regulations about granting credit for previous education 
51.33 	and preparation;
51.34 	(13) a notice to students relating to the transferability of any credits earned at the 
51.35 	school to other institutions; 
52.1 	(14) a procedure for investigating and resolving student complaints; and
52.2 	~~(14)~~(15) the name and address of the Minnesota Office of Higher Education.
52.3 	A school that is exclusively a distance education school is exempt from clauses 
52.4 	(3) and (5).

52.5 	Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
52.6 		Subd. 10.Placement records. (a) Before a license is ~~issued~~reissued to a school 
52.7 	that offers, advertises or implies a placement service, the school shall file with the office 
52.8 	for the past year and thereafter at reasonable intervals determined by the office, a certified 
52.9 	copy of the school's placement record, containing a list of graduates, a description of their 
52.10 	jobs, names of their employers, and other information as the office may prescribe.
52.11 	(b) Each school that offers a placement service shall furnish to each prospective 
52.12 	student, upon request, prior to enrollment, written information concerning the percentage 
52.13 	of the previous year's graduates who were placed in the occupation for which prepared or 
52.14 	in related employment.

52.15 	Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
52.16 		Subd. 12.Permanent records. A school licensed under this chapter and located 
52.17 	in Minnesota shall maintain a permanent record for each student for 50 years from the 
52.18 	last date of the student's attendance. A school licensed under this chapter and offering 
52.19 	distance instruction to a student located in Minnesota shall maintain a permanent record 
52.20 	for each Minnesota student for 50 years from the last date of the student's attendance. 
52.21 	Records include school transcripts, documents, and files containing student data about 
52.22 	academic credits earned, courses completed, grades awarded, degrees awarded, and 
52.23 	periods of attendance. To preserve permanent records, a school shall submit a plan that 
52.24 	meets the following requirements:
52.25 	(1) at least one copy of the records must be held in a secure, fireproof depository;
52.26 	(2) an appropriate official must be designated to provide a student with copies of 
52.27 	records or a transcript upon request;
52.28 	(3) an alternative method, approved by the office, of complying with clauses (1) and 
52.29 	(2) must be established if the school ceases to exist; and
52.30 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
52.31 	$20,000 if the school has no binding agreement approved by the office, for preserving 
52.32 	student records ~~or a trust must be arranged if the school ceases to exist~~. The bond shall run 
52.33 	to the state of Minnesota.

53.1 	Sec. 25. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
53.2 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a 
53.3 	renewal licensure application is:
53.4 	(1) for a category A school, as determined by the office, the fee is $865 if the school 
53.5 	offers one program or $1,150 if the school offers two or more programs; and
53.6 	(2) for a category B or C school, as determined by the office, the fee is $430 if the 
53.7 	school offers one program or $575 if the school offers two or more programs.
53.8 	(b) If a license renewal application is not received by the office by the close of 
53.9 	business at least 60 days before the expiration of the current license, a late fee of $100 
53.10 	per business day, not to exceed $3,000, shall be assessed.

53.11 	Sec. 26. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
53.12 		Subd. 2.Contract information. A contract or enrollment agreement used by a 
53.13 	school must include at least the following:
53.14 	(1) the name and address of the school, clearly stated;
53.15 	(2) a clear and conspicuous disclosure that the agreement is a legally binding 
53.16 	instrument upon written acceptance of the student by the school unless canceled under 
53.17 	section 141.271; 
53.18 	(3) the school's cancellation and refund policy that shall be clearly and conspicuously 
53.19 	entitled "Buyer's Right to Cancel";
53.20 	(4) a clear statement of total cost of the program including tuition and all other 
53.21 	charges;
53.22 	(5) the name and description of the program, including the number of hours or 
53.23 	credits of classroom instruction, or distance instruction, that shall be included; and
53.24 	(6) a clear and conspicuous explanation of the form and means of notice the student 
53.25 	should use in the event the student elects to cancel the contract or sale, the effective 
53.26 	date of cancellation, and the name and address of the seller to which the notice should 
53.27 	be sent or delivered.
53.28 	The contract or enrollment agreement must not include a wage assignment provision 
53.29 	or a confession of judgment clause.

53.30 	Sec. 27. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
53.31 		Subd. 10.Cancellation occurrence. Written notice of cancellation shall take place 
53.32 	on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
53.33 	carried, it shall occur on the date the notice is delivered to the school. If a student has not 
53.34 	attended ~~classes~~class for a period of 21 consecutive days without contacting the school to 
54.1 	indicate an intent to continue in school or otherwise making arrangements concerning the 
54.2 	absences, the student is considered to have withdrawn from school for all purposes as of 
54.3 	the student's last documented date of attendance.

54.4 	Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
54.5 		Subd. 12.Instrument not to be negotiated. A school shall not negotiate any 
54.6 	promissory instrument received as payment of tuition or other charge prior to completion 
54.7 	of 50 percent of the program~~.~~, except that prior to that time, instruments may be transferred 
54.8 	by assignment to purchasers who shall be subject to all defenses available against the 
54.9 	school named as payee.

54.10 	Sec. 29. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
54.11 		Subdivision 1.~~Not to advertise state approval~~ Disclosure required. ~~Schools,~~ 
54.12 	~~agents of schools, and solicitors may not advertise or represent in writing or orally that~~ 
54.13 	~~such school is approved or accredited by the state of Minnesota, except that any~~A school, 
54.14 	~~agent, or solicitor may advertise~~ which is duly licensed by the state shall disclose in all 
54.15 	its advertising, application, and enrollment materials that the school ~~and solicitor have~~ 
54.16 	~~been~~ is  duly licensed by the state ~~using~~by prominently displaying the following ~~language~~
54.17 	statement:
54.18 	"(Name of school) is licensed as a private career school with the Minnesota Office of 
54.19 	Higher Education pursuant to Minnesota Statutes, chapter 141. Licensure is not an 
54.20 	endorsement of the institution. Credits earned at the institution may not transfer to all 
54.21 	other institutions. ~~The educational programs may not meet the needs of every student~~ 
54.22 	~~or employer.~~"

54.23 	Sec. 30. Minnesota Statutes 2006, section 141.32, is amended to read:
54.24 	141.32 PENALTY.
54.25 	~~Violation of a provision of this chapter shall be a misdemeanor. Each day's failure~~ 
54.26 	~~to comply with this chapter shall be a separate violation. The office shall adopt rules~~ 
54.27 	~~establishing a list of civil penalties and the fine associated with each violation. Fines for~~ 
54.28 	~~violations shall not exceed $500 per day per violation.~~ The director may assess fines for 
54.29 	violations of a provision of this chapter. Each day's failure to comply with a provision 
54.30 	of this chapter shall be a separate violation and fines shall not exceed $500 per day per 
54.31 	violation. Amounts received under this section must be deposited into the special revenue 
54.32 	fund and may be used for the purposes of this chapter.

55.1 	Sec. 31. Minnesota Statutes 2006, section 141.35, is amended to read:
55.2 	141.35 EXEMPTIONS.
55.3 	Sections 141.21 to ~~141.35~~141.32 shall not apply to the following:
55.4 	(1) public postsecondary institutions;
55.5 	(2) ~~private~~ postsecondary institutions registered under sections ~~136A.61 to 136A.71~~
55.6 	~~that are nonprofit, or that are for profit and registered under sections 136A.61 to~~ 
55.7 	~~136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate or~~ 
55.8 	~~postbaccalaureate programs~~ 136A.615 to 136A.71;
55.9 	(3) schools of nursing accredited by the state Board of Nursing or an equivalent 
55.10 	public board of another state or foreign country;
55.11 	(4) private schools complying with the requirements of section 120A.22, subdivision 
55.12 	4;
55.13 	(5) courses taught to students in a valid apprenticeship program taught by or 
55.14 	required by a trade union;
55.15 	(6) schools exclusively engaged in training physically or mentally disabled persons 
55.16 	for the state of Minnesota;
55.17 	(7) schools licensed by boards authorized under Minnesota law to issue licenses;
55.18 	(8) schools and educational programs, or training programs, contracted for by 
55.19 	persons, firms, corporations, government agencies, or associations, for the training of their 
55.20 	own employees, for which no fee is charged the employee;
55.21 	(9) schools engaged exclusively in the teaching of purely avocational, recreational, 
55.22 	or remedial subjects as determined by the office;
55.23 	~~(10) driver training schools and instructors as defined in section 171.33, subdivisions~~ 
55.24 	~~1 and 2;~~
55.25 	~~(11)~~ (10) classes, courses, or programs conducted by a bona fide trade, professional, 
55.26 	or fraternal organization, solely for that organization's membership;
55.27 	~~(12)~~(11) programs in the fine arts provided by organizations exempt from taxation 
55.28 	under section 290.05 and registered with the attorney general under chapter 309. For 
55.29 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
55.30 	artistic performance of works of the imagination which are engaged in for the primary 
55.31 	purpose of creative expression rather than commercial sale or employment. In making 
55.32 	this determination the office may seek the advice and recommendation of the Minnesota 
55.33 	Board of the Arts;
55.34 	~~(13)~~(12) classes, courses, or programs intended to fulfill the continuing education 
55.35 	requirements for licensure or certification in a profession, that have been approved by 
55.36 	a legislatively or judicially established board or agency responsible for regulating the 
56.1 	practice of the profession, and that are offered exclusively to an individual practicing 
56.2 	the profession;
56.3 	~~(14)~~(13) classes, courses, or programs intended to prepare students to sit for 
56.4 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
56.5 	entrance examinations;
56.6 	~~(15)~~(14) classes, courses, or programs providing 16 or fewer clock hours of 
56.7 	instruction that are not part of the curriculum for an occupation or entry level employment;
56.8 	~~(16)~~(15) classes, courses, or programs providing instruction in personal 
56.9 	development, modeling, or acting;
56.10 	~~(17)~~(16) training or instructional programs, in which one instructor teaches an 
56.11 	individual student, that are not part of the curriculum for an occupation or are not intended 
56.12 	to prepare a person for entry level employment; and
56.13 	~~(18)~~(17) schools with no physical presence in Minnesota, as determined by the 
56.14 	office, engaged exclusively in offering distance instruction that are located in and 
56.15 	regulated by other states or jurisdictions.

56.16 	Sec. 32. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
56.17 		Subdivision 1.Exemption. Any school or any department or branch of a school (1) 
56.18 	which is substantially owned, operated, or supported by a bona fide church or religious 
56.19 	organization; (2) whose programs are primarily designed for, aimed at, and attended by 
56.20 	persons who sincerely hold or seek to learn the particular religious faith or beliefs of 
56.21 	that church or religious organization; and (3) whose programs are primarily intended to 
56.22 	prepare its students to become ministers of, to enter into some other vocation closely 
56.23 	related to, or to conduct their lives in consonance with, the particular faith of that church 
56.24 	or religious organization, is exempt from the provisions of sections 141.21 to 141.32.
56.25 		Subd. 2.Limitations. This exemption shall not extend to any school or to 
56.26 	any department or branch of a school, or program of such school which, through 
56.27 	advertisements or solicitations, represents to any students or prospective students that 
56.28 	the school, its aims, goals, missions or purposes, or its programs are different from 
56.29 	those described in subdivision 1. This exemption shall not extend to any school which 
56.30 	represents to any student or prospective student that the major purpose of its programs 
56.31 	is to prepare the student for a vocation not closely related to that particular religious 
56.32 	faith, or to provide the student with a general educational program recognized by other 
56.33 	schools or the broader educational, business, or social community as being substantially 
56.34 	equivalent to the educational programs offered by schools or departments or branches of 
57.1 	schools which are not religious in nature and are not exempt from chapter 141 and rules 
57.2 	adopted under this chapter.
57.3 		Subd. 3.Scope. Nothing in this chapter or the rules adopted under it shall be 
57.4 	interpreted as permitting the office to determine the truth or falsity of any particular set 
57.5 	of religious beliefs.
57.6 		Subd. 4.Descriptive language required. Any certificate, diploma, degree, or other 
57.7 	formal recognition awarded upon completion of any religiously exempt program shall 
57.8 	include descriptive language to make the religious nature of the award clear.

57.9 	Sec. 33. REPEALER.
 57.10 	Minnesota Statutes 2006, section 136A.61, is repealed.