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S.F. No. 1989, 2nd Unofficial Engrossment - 85th Legislative Session (2007-2008) Posted on Apr 20, 2007
1.2relating to higher education; appropriating money; establishing the Minnesota
1.3GI Bill program; amending certain Minnesota Office of Higher Education 1.4provisions; establishing new grant and loan repayment programs; amending 1.5higher education programs; amending certain grant programs; amending certain 1.6higher education provisions; eliminating obsolete references; making technical 1.7changes; authorizing control of certain decreasing students' share of attendance; 1.8establishing a college readiness assessment; increasing revenue bond limits; 1.9authorizing control of certain deposits; authorizing lease agreements; authorizing 1.10interest rate swap; providing for the Textbook Disclosure, Pricing and Access 1.11Act; amending certain private postsecondary institution provisions;amending 1.12Minnesota Statutes 2006, sections 13.322, subdivision 3; 16B.70, by adding 1.13a subdivision; 41D.01, subdivision 1; 120B.023, subdivision 2; 120B.024; 1.14135A.031, subdivision 7; 135A.053, subdivision 2; 135A.14, subdivision 1; 1.15135A.51, subdivision 2; 135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 1.16136A.031, subdivision 5; 136A.0411; 136A.08, subdivision 7; 136A.101, 1.17subdivision 4; 136A.121, subdivision 5; 136A.125, subdivision 2; 136A.15, 1.18subdivisions 1, 6; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.61; 1.19136A.62, subdivision 3; 136A.63; 136A.64; 136A.65; 136A.653; 136A.657; 1.20136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3, 1.216; 136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by 1.22adding a subdivision; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25, 1.23subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 1.24141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; proposing 1.25coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 141; 197; 1.26repealing Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, 1.276; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 137.0245; 137.0246. 1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.33in this article.
2.7agencies and for the purposes specified in this article. The appropriations are from the 2.8general fund, or another named fund, and are available for the fiscal years indicated 2.9for each purpose. The figures "2008" and "2009" used in this article mean that the 2.10appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.11June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.12year 2009. "The biennium" is fiscal years 2008 and 2009.
2.21purpose are specified in the following 2.22subdivisions.
2.25spouses and children of veterans as provided 2.26under Minnesota Statutes, section 197.791. 2.27Of this appropriation, $152,000 the first 2.28year and $104,000 the second year are for 2.29the administrative costs of operating this 2.30program. For the 2010-2011 biennium, 2.31the base for this program's administrative 2.32costs must be included within the agency 2.33administration program activity.
3.2either year is insufficient, the appropriation 3.3for the other year is available for it. 3.4For the biennium, the tuition maximum for 3.5students in four-year programs is $9,957 in 3.6each year for students in four-year programs, 3.7and for students in two-year programs, is 3.8$4,717 in the first year and $4,859 in the 3.9second year. 3.10This appropriation sets the living and 3.11miscellaneous expense allowance at $6,241 3.12each year.
3.15benefits under Minnesota Statutes, section 3.16299A.45, to dependent children under age 23 3.17and to the spouses of public safety officers 3.18killed in the line of duty. 3.19If the appropriation in this subdivision for 3.20either year is insufficient, the appropriation 3.21for the other year is available for it.
3.24either year is insufficient, the appropriation 3.25for the other year is available to meet 3.26reciprocity contract obligations.
4.4postsecondary service learning, student and 4.5parent information, get ready, outreach, and 4.6intervention for college attendance programs. 4.7$265,000 each year is for grants to increase 4.8campus-community collaboration and service 4.9learning statewide, including operations of 4.10the Minnesota campus compact, grants to 4.11member institutions and grants for member 4.12institution initiatives. For every $1 in state 4.13funding, grant recipients must contribute $2 4.14in campus or community-based support. 4.15$100,000 each year is for a grant to the 4.16Loan Repayment Assistance Program 4.17of Minnesota, Inc. for loan repayment 4.18assistance awards. 4.19$500,000 each year is for the teacher 4.20education and compensation helps (TEACH) 4.21and the Minnesota early childhood teacher 4.22retention programs in Minnesota Statutes, 4.23section 136A.126. This is a onetime 4.24appropriation. 4.25$250,000 in the first year is for a grant to 4.26Augsburg College for the purpose of its 4.27Step UP program to provide educational 4.28opportunities to chemically dependent 4.29students and to work with other public 4.30and private colleges in Minnesota to help 4.31replicate this program. This is a onetime 4.32appropriation. 4.33$40,000 in the first year is for a grant to 4.34the Washington Center for Internships and 5.1Academic Seminars for a pilot program 5.2for scholarships for students enrolling in a 5.3Minnesota four-year college or university 5.4beginning in the fall semester of 2007. The 5.5grant is available only with a dollar-for-dollar 5.6match from nonstate sources.
5.11Individuals Everywhere Value Education 5.12pilot projects that provide distance-learning 5.13opportunities through the Minnesota State 5.14Colleges and Universities for high school 5.15students living in remote and underserved 5.16areas where the school district lacks 5.17the resources to provide academically 5.18challenging educational opportunities, 5.19including Advanced Placement and 5.20International Baccalaureate programs. 5.21Students who successfully complete a course 5.22must receive college credit at no cost to the 5.23student or the participating school district. 5.24The office must report to the committees of 5.25the legislature with responsibility for higher 5.26education finance by January 15, 2009, on the 5.27program outcomes with recommendations on 5.28continuing and expanding the program.
5.32residency program. This appropriation 5.33must be used to support up to 18 resident 5.34physicians each year in family practice at 5.35united family medicine residency programs 5.36and must prepare doctors to practice family 6.1care medicine in underserved rural and 6.2urban areas of the state. The legislature 6.3intends this program to improve health 6.4care in underserved communities, provide 6.5affordable access to appropriate medical 6.6care, and manage the treatment of patients in 6.7a more cost-effective manner.
6.10year and $80,000 the second year are for 6.11compensation-related costs associated with 6.12the delivery of the office's services and 6.13programs.
6.16does not cancel, but is available for the 6.17second year.
6.20may transfer unencumbered balances from 6.21the appropriations in subdivisions 2 to 15 to 6.22the state grant appropriation, the safety officer 6.23survivors appropriation, the interstate tuition 6.24reciprocity appropriation, the Minnesota 6.25college savings plan appropriation, the child 6.26care appropriation, and the state work study 6.27appropriation.
6.30Minnesota Office of Higher Education 6.31must provide updated state grant spending 6.32projections, taking into account the most 6.33current and projected enrollment and tuition 6.34and fee information, economic conditions, 7.1and other relevant factors. Before submitting 7.2state grant spending projections, the office 7.3must meet and consult with representatives of 7.4public and private postsecondary education, 7.5the Department of Finance, the governor's 7.6office, legislative staff, and financial aid 7.7administrators. 7.8(b) The Minnesota Office of Higher 7.9Education shall report to the higher education 7.10divisions of the house and senate finance 7.11committees on participation in postsecondary 7.12education by income, and persistence and 7.13graduation rates of state grant recipients 7.14compared to students who did not receive 7.15state grants. The office is authorized to match 7.16individual student data from the student 7.17record enrollment database with individual 7.18student data from the state grant database on 7.19data elements necessary to perform the study.
7.25purpose are specified in the following 7.26subdivisions.
7.30services division.
7.33for the board's initiatives on recruiting and 7.34retaining underrepresented students, strategic 8.1educational advancements, STEM initiatives, 8.2and infrastructure and technology, and for 8.3the costs of inflation. This appropriation 8.4also includes funding to reduce the tuition 8.5rate increase to two percent in the first 8.6year and zero in the second year from the 8.7board-approved plan of a four percent annual 8.8increase. 8.9(b) Appropriations for technology and 8.10infrastructure under this subdivision must 8.11not be used to increase permanent positions 8.12in the office of the chancellor or the shared 8.13services office. Any new positions funded 8.14from the technology and infrastructure 8.15appropriation must be at a campus. 8.16(c) $400,000 each year is for 8.17community-based energy development 8.18pilot projects at Mesabi Range Technical 8.19and Community College, the Minnesota 8.20West Community and Technical College, 8.21and Riverland Community College. Each 8.22campus must establish partnerships for 8.23community-based energy development pilot 8.24projects that involve students and faculty. An 8.25allocation for the pilot project is available 8.26to the participating institutions and the 8.27partnerships for the biennium ending June 8.2830, 2009. 8.29(d) $750,000 in the first year is for a modular 8.30clean-room research and training facility 8.31at St. Paul College. This is a onetime 8.32appropriation and is available until expended. 8.33(e) $300,000 the first year is for a grant to 8.34the Range Association of Municipalities 8.35and Schools for a study of student demand 9.1and employer needs for higher education in 9.2the Mesabi Range region of northeastern 9.3Minnesota including the cities of Grand 9.4Rapids through Eveleth to Ely. The 9.5association must coordinate and contract for 9.6a study in cooperation with the Board of 9.7Regents of the University of Minnesota and 9.8the Board of Trustees of the Minnesota State 9.9Colleges and Universities. The governing 9.10boards must advise on which of the identified 9.11needs can be met by University of Minnesota 9.12courses and which can be met by the 9.13Minnesota State Colleges and Universities, 9.14and which degree programs may be offered 9.15jointly. The final report must be submitted to 9.16the committees of the legislature responsible 9.17for higher education finance by January 15, 9.182008, with recommendations and plans for 9.19the region. 9.20(f) $120,000 in each year is for the Cook 9.21County Higher Education Board to provide 9.22educational programs and academic support 9.23services. The base appropriation for this 9.24program is $120,000 in each year of the 9.25biennium ending June 30, 2011. 9.26(g) $2,000,000 the first year and $1,000,000 9.27the second year are for a pilot project with 9.28the Northeast Minnesota Higher Education 9.29District and high schools in its area. Up to 9.30$1,200,000 of the first year appropriation 9.31must be used to purchase equipment that is 9.32necessary to reestablish a technical education 9.33curriculum in the area high schools to 9.34provide the students with the technical 9.35skills necessary for the workforce. Students 9.36from area high schools may also access 10.1the facilities and faculty of the Northeast 10.2Minnesota Higher Education District 10.3for state-of-the-art technical education 10.4opportunities, including MnSCU's 2+2 10.5Pathways initiative. $1,000,000 is added to 10.6the base for this project. 10.7(h) $50,000 in the first year is for St. Paul 10.8College to collaborate with the United Auto 10.9Workers Local 879 to purchase a Ford 10.10Ranger pickup truck to retrofit to run on a 10.11battery-powered motor. This vehicle must 10.12be retrofitted to serve as a prototype that 10.13could be mass-produced at the St. Paul Ford 10.14assembly plant. 10.15(i) $100,000 each year is for a grant to a 10.16Minnesota public postsecondary institution 10.17with a total student enrollment under 7,000 10.18students, that has an existing women's 10.19hockey team competing in Division I in the 10.20Western Collegiate Hockey Association. 10.21The institution may use the grant for 10.22equipment, facility improvements, travel and 10.23compensation for coaches, trainers, and other 10.24necessary personnel. 10.25(j) $450,000 each year is to establish a center 10.26for workforce and economic development 10.27at the Mesabi Range Community and 10.28Technical College and to enhance eFolio 10.29Minnesota. The board, in cooperation with 10.30the Iron Range Resources and Rehabilitation 10.31Board (IRRRB) and the Department of 10.32Employment and Economic Development, 10.33must establish the center to provide on-site 10.34and Internet-based support and technical 10.35assistance to users of the state's eFolio 11.1Minnesota system to promote workforce and 11.2economic development. The center must 11.3assist local economic development agencies 11.4and officials to enable them to access 11.5workforce information generated through the 11.6eFolio Minnesota system. The board must 11.7enhance the eFolio Minnesota system as 11.8necessary to serve these purposes. The center 11.9must report annually to the IRRRB and the 11.10Department of Employment and Economic 11.11Development on the outcomes of the center's 11.12activities. 11.13(k) $1,000,000 the first year is to identify 11.14and improve on practices for selecting and 11.15purchasing textbooks and course materials 11.16that are used by students. The board, in 11.17collaboration with the Minnesota State 11.18University Student Association (MSUSA) 11.19and the Minnesota State College Student 11.20Association (MSCSA) must develop 11.21and implement pilot projects with this 11.22appropriation to address the financial burden 11.23that textbook prices and requirements place 11.24on students. These projects may include 11.25textbook rental programs, cooperative 11.26purchasing efforts, training, and education 11.27and awareness programs for students and 11.28faculty on cost considerations and textbook 11.29options. The student associations must 11.30be fully involved in the development and 11.31implementation of any project using this 11.32appropriation. Each student association 11.33must vote to approve a project before it is 11.34implemented. MSUSA and MSCSA must 11.35report to the committees of the legislature 11.36responsible for higher education finance by 12.1February 15, 2009, on the success of the pilot 12.2projects. This money is available until June 12.330, 2009.
12.6students to add the cost of textbooks and 12.7required course materials purchased at a 12.8campus bookstore, owned by or operated 12.9under a contract with the campus, to the 12.10existing waivers or payment plans for tuition 12.11and fees. 12.12(b) The board must adopt a policy setting 12.13the maximum number of semester credits 12.14required for a baccalaureate degree at 120 12.15semester credits or the equivalent and the 12.16number of semester credits required for an 12.17associate degree at 60 semester credits or the 12.18equivalent.
12.23purpose are specified in the following 12.24subdivisions.
12.27the board: 12.28(1) to make investments in the university's 12.29technology and related infrastructure; 12.30(2) to award faculty and staff compensation 12.31increases differentially; 12.32(3) for the board's health workforce and 12.33clinical sciences initiative; 13.1(4) initiatives in science and engineering; 13.2(5) initiatives relating to the environment, 13.3agriculture, and renewable energy; and 13.4(6) for advancing education, including an 13.5Ojibwe Indian language program on the 13.6Duluth campus. 13.7(b) $2,250,000 each year is to establish 13.8banded tuition at the Morris, Crookston, and 13.9Duluth campuses to reduce tuition costs for 13.10students. 13.11(c) $7,000,000 for the biennium is for 13.12scholarships to mitigate the effects of rising 13.13tuition on Minnesota students and families. 13.14This appropriation must be matched with 13.15$2 of nonstate money for each $1 of state 13.16money. 13.17(d) $12,404,000 in the second year is to 13.18reduce the proposed tuition rate increase. 13.19Any of this amount that is not used by the 13.20board to reduce tuition cancels to the general 13.21fund. 13.22(e) $300,000 the first year is for the Center 13.23for Transportation Studies to complete a 13.24study to assess public policy options for 13.25reducing the volume of greenhouse gases 13.26emitted from the transportation sector in 13.27Minnesota. The Center for Transportation 13.28Studies must report its preliminary findings 13.29to the legislature by February 1, 2008, and 13.30must issue its full report by June 1, 2008. 13.31This is a onetime appropriation. 13.32(f) $250,000 each year is to establish an India 13.33Center to improve and promote relations with 13.34India and Southeast Asia. The center must 14.1partner with public and private organizations 14.2in Minnesota to: 14.3(1) foster an understanding of the history, 14.4culture, and values of India; 14.5(2) serve as a resource and catalyst to 14.6promote economic, governmental, and 14.7academic pursuits involving India; and 14.8(3) facilitate educational and business 14.9exchanges and partnerships, collaborative 14.10research, and teaching and training activities 14.11for Minnesota students and teachers. 14.12The Board of Regents may establish an 14.13advisory council to facilitate the mission 14.14and objectives of the India Center and must 14.15report on the progress of the India Center by 14.16February 15, 2008, to the governor and chairs 14.17of the legislative committees responsible for 14.18higher education finance. This is a onetime 14.19appropriation. 14.20(g) $750,000 in the first year is to assist in 14.21the formation of the neighborhood alliance 14.22and for projects identified in section 8. The 14.23alliance, the Board of Regents, and the city of 14.24Minneapolis may cooperate on the projects 14.25and may use a public services of other entities 14.26to complete all or a portion of a project. 14.27(h) $300,000 the first year is to establish a 14.28Dakota language teacher training immersion 14.29program on the Twin Cities campus to 14.30prepare teachers to teach in Dakota language 14.31immersion programs. This is a onetime 14.32appropriation. 14.33(i) $400,000 each year is for the Minnesota 14.34Institute for Sustainable Agriculture to 15.1provide funds for on-station and on-farm 15.2field scale research and outreach to develop 15.3and test the agronomic and economic 15.4requirements of diverse strands of prairie 15.5plants and other perennials for bioenergy 15.6systems including but not limited to 15.7multiple species selection and establishment, 15.8ecological management between planting 15.9and harvest, harvest technologies, financial 15.10and agronomic risk management, farmer 15.11goal setting and adoption of technologies, 15.12integration of wildlife habitat into 15.13management approaches, evaluation of 15.14carbon and other benefits, and robust polices 15.15needed to induce farmer conversion on 15.16marginal lands.
15.19access fund and is for primary care education 15.20initiatives.
15.24Station, Minnesota Extension Service. This 15.25appropriation includes funding to promote 15.26alternative livestock research and outreach 15.27at the Minnesota Institute for Sustainable 15.28Agriculture, and to promote sustainable and 15.29organic agricultural research and education. 15.30(2) This appropriation includes funding 15.31for research efforts that demonstrate a 15.32renewed emphasis on the needs of the state's 15.33production agriculture community and a 15.34continued focus on renewable energy derived 16.1from Minnesota biomass resources including 16.2agronomic crops, plant and animal wastes, 16.3and native plants or trees, with priority for 16.4extending the Minnesota vegetable growing 16.5season; fertilizer and soil fertility research 16.6and development; treating and curing human 16.7diseases utilizing plant and livestock cells; 16.8using biofuel production coproducts as 16.9feed for livestock; and a rapid agricultural 16.10response fund for current or emerging 16.11animal, plant, and insect problems affecting 16.12production or food safety. In addition, the 16.13appropriation may be used to secure a facility 16.14and retain current faculty levels for poultry 16.15research currently conducted at UMore Park. 16.16(3) In the area of renewable energy, priority 16.17should be given to projects pertaining to: 16.18biofuel and other energy production from 16.19small grains; alternative bioenergy crops and 16.20cropping systems; and growing, harvesting, 16.21and transporting biomass plant material. 16.22(4) This appropriation includes funding for 16.23the college of food, agricultural, and natural 16.24resources sciences to establish and maintain 16.25a statewide organic research and education 16.26initiative to provide leadership for organic 16.27agronomic, horticultural, livestock, and food 16.28systems research, education, and outreach 16.29and for the purchase of state-of-the-art 16.30laboratory, planting, tilling, harvesting, and 16.31processing equipment necessary for this 16.32project. 16.33(5) By February 1, 2009, the Board 16.34of Regents must report to the legislative 16.35committees with responsibility for agriculture 17.1and higher education finance on the research 17.2and initiatives under this paragraph. 17.3(6) The base appropriation is $51,775,000 17.4each year of the biennium ending June 30, 17.52011.
17.8resident physicians each year in the St. 17.9Cloud Hospital family practice residency 17.10program. The program must prepare doctors 17.11to practice primary care medicine in the rural 17.12areas of the state. The legislature intends 17.13this program to improve health care in rural 17.14communities, provide affordable access to 17.15appropriate medical care, and manage the 17.16treatment of patients in a more cost-effective 17.17manner. 17.18The remainder of this appropriation is for 17.19the rural physicians associates program, the 17.20Veterinary Diagnostic Laboratory, health 17.21sciences research, dental care, and the 17.22Biomedical Engineering Center.
17.25youth mathematics program.
17.28money, industrial relations education, 17.29Natural Resources Research Institute, Center 17.30for Urban and Regional Affairs, and the Bell 17.31Museum of Natural History. $100,000 is 17.32added to the base appropriation for industrial 17.33relations education.
18.4collaborative research partnership between 18.5the University of Minnesota and the Mayo 18.6Foundation for research in biotechnology 18.7and medical genomics. $7,000,000 is added 18.8to the base. This appropriation is available 18.9until expended. An annual report on the 18.10expenditure of these funds must be submitted 18.11to the governor and the chairs of the senate 18.12and house committees responsible for higher 18.13education and economic development by 18.14June 30 of each fiscal year.
18.17Center funding under Minnesota Statutes, 18.18section 297F.10, is $22,250,000 each year.
18.22purpose are specified in the following 18.23subdivisions.
18.26each year for each student who is a resident 18.27of Minnesota. The appropriation may be 18.28transferred between years of the biennium to 18.29accommodate enrollment fluctuations. The 18.30funding base for this program is $640,000 in 18.31fiscal year 2010 and $665,000 in fiscal year 18.322011. 19.1It is intended that during the biennium the 19.2Mayo Clinic use the capitation money to 19.3increase the number of doctors practicing in 19.4rural areas in need of doctors.
19.8support for up to 27 residents each year. The 19.9funding base for this program is $660,000 in 19.10fiscal year 2010 and $686,000 in fiscal year 19.112011. 19.12 Sec. 7. [135A.035] ACCOMMODATIONS. 19.13 The Board of Regents of the University of Minnesota is strongly encouraged not to 19.14authorize and the Board of Trustees of the Minnesota State Colleges and Universities may 19.15not authorize the use of funds appropriated by the legislature to modify any of its facilities 19.16or otherwise to accommodate the practices of a specific religious group unless the system 19.17makes an equal amount of funds appropriated by the legislature to that system available 19.18for any other religious group requesting modification of the system's facilities or other 19.19accommodation of that specific religious group's practices. 19.20 Sec. 8. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING. 19.21 Subdivision 1. Membership. A 12-member legislative commission on 19.22postsecondary funding is established consisting of six members of the house of 19.23representatives appointed by the speaker and six members of the senate appointed by 19.24the Subcommittee on Committees of the Committee on Rules and Administration. The 19.25commission may elect a chair and other officers as necessary. 19.26 Subd. 2. Charge. The commission must develop an alternative funding formula 19.27or funding method for postsecondary education that creates incentives for high quality 19.28postsecondary education while maintaining access for students. In developing the formula 19.29or funding method, the commission must consider and address: 19.30 (1) both institutional aid and direct student aid; 19.31 (2) the major cost drivers in postsecondary education, such as inflation and 19.32enrollment; 19.33 (3) federal postsecondary funding and tax incentives for postsecondary education; 19.34and 20.1 (4) funding the formula or funding method within the projected constraints on the 20.2state budget in the coming decade. 20.3 Subd. 3. Report. The commission must report its recommendations to the house 20.4Division on Higher Education and Workforce Development Policy and Finance, and the 20.5senate Higher Education Budget and Policy Division by June 30, 2008. 20.6 Subd. 4. Expiration. The commission expires June 30, 2008. 20.7 Sec. 9. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 20.8NEIGHBORHOOD ALLIANCE. 20.9 Subdivision 1. Definitions. (a) For purposes of this section, the following terms 20.10have the meanings given them. 20.11 (b) "Alliance" means a representative body of the constituencies, including, but 20.12not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 20.13neighborhood organizations and business associations referenced in the report. 20.14 (c) "Board" means the Board of Regents of the University of Minnesota. 20.15 (d) "Report" means the report and appendix entitled Moving Forward Together: 20.16University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 20.17the legislature in February 2007. 20.18 (e) "University partnership district" or "district" means the area located within the 20.19city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 20.20Como, Prospect Park, and University, as they are defined by the city, and the university's 20.21Minneapolis campus. 20.22 (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 20.23house significant numbers of university students and staff. Transportation and housing 20.24policy analysis and planning must include these areas but they must not be included in 20.25the projects funded through the alliance. 20.26 (g) "University" means the University of Minnesota. 20.27 Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage 20.28projects with the board, city, or other public or private entities that are intended to 20.29maintain the university partnership district as a viable place to study, research, and live. 20.30Projects may include, but are not limited to, those outlined in the report, as well as 20.31efforts to involve students in activities to maintain and improve the university partnership 20.32district; cooperative university and university partnership district long-term planning; and 20.33incentives to increase homeownership within the district with particular emphasis on 20.34employees of the university and of other major employers located within the district. 21.1 Subd. 3. Report. The board must report to the legislature by January 15, 2009, on 21.2the expenditure of funds appropriated under section 3. 21.3 Sec. 10. MINNESOTA OFFICE OF HIGHER EDUCATION FINANCIAL AID 21.4STUDY. 21.5 The Minnesota Office of Higher Education must review and evaluate the existing 21.6financial aid programs that provide loans and grants to students in postsecondary education 21.7and the needs of the workforce for occupations that are currently or will be in demand. 21.8The study must evaluate how effective the financial aid programs are at linking the needs 21.9of the workforce with student need for financial aid. The study must also identify options 21.10for designing financial aid programs including loan forgiveness and loan repayment 21.11programs that target the needs of the workforce and provide incentives to students to 21.12pursue postsecondary education in fields with identified workforce needs. By February 21.1315, 2008, the office must report to the legislative committees responsible for higher 21.14education and workforce development on the findings of the study and provide options 21.15and recommendations on how to deliver financial aid, provide incentives for students, 21.16and meet the needs of the workforce for occupations that include speech pathologists 21.17and other occupations with unmet need. 21.20 Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 21.21read: 21.22 Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 21.23for: 21.24 (1) necessary state level administration of financial aid and Minnesota GI Bill 21.25programs, including accounting, auditing, and disbursing state and federal financial aid 21.26funds, and reporting on financial aid programs to the governor and the legislature; 21.27 (2) approval, registration, licensing, and financial aid eligibility of private collegiate 21.28and career schools, under sections 21.29 (3) administering the Learning Network of Minnesota; 21.30 (4) negotiating and administering reciprocity agreements; 21.31 (5) publishing and distributing financial aid information and materials, and other 21.32information and materials under section 22.1 (6) collecting and maintaining student enrollment and financial aid data and 22.2reporting data on students and postsecondary institutions to develop and implement a 22.3process to measure and report on the effectiveness of postsecondary institutions; 22.4 (7) administering the federal programs that affect students and institutions on a 22.5statewide basis; and 22.6 (8) prescribing policies, procedures, and rules under chapter 14 necessary to 22.7administer the programs under its supervision. 22.8EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 22.9qualifying coursework taken on or after that date. 22.10 Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM. 22.11 Subdivision 1. Policy. It is the policy of the state of Minnesota to provide 22.12postsecondary educational assistance to Minnesota veterans who have provided honorable 22.13service to this state and nation as members of the United States armed forces, whether 22.14in peacetime or in war, and to the spouses and children of Minnesota veterans who have 22.15become severely disabled or deceased during or as the direct result of military service. 22.16 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section. 22.17 (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 22.18specified. 22.19 (c) "Cost of attendance" for both undergraduate and graduate students has the 22.20meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2. 22.21 (d) "Child" means a natural or adopted child of a person described in subdivision 5, 22.22paragraph (a), clause (1), item (i) or (ii). 22.23 (e) "Director" means the director of the Minnesota Office of Higher Education. 22.24 (f) "Eligible institution" means a postsecondary institution located in this state 22.25that either (1) is operated by this state; or (2) is operated publicly or privately and, as 22.26determined by the office, maintains academic standards substantially equivalent to those 22.27of comparable institutions operated in this state. 22.28 (g) "Eligible student" means a person who: 22.29 (1) if the student is an undergraduate student, has applied for the federal Pell Grant 22.30and the Minnesota State Grant; 22.31 (2) is maintaining satisfactory academic progress as defined by the institution for 22.32students participating in federal Title IV programs; 22.33 (3) is enrolled in an education program leading to a certificate, diploma, or degree 22.34at an eligible institution; 23.1 (4) has applied for educational assistance under the Minnesota GI Bill program prior 23.2to the end of the academic term for which the assistance is being requested. 23.3 (5) is in compliance with child support payment requirements under section 23.4136A.121, subdivision 2, clause (5). 23.5 (h) "Part-time student" means an undergraduate student enrolled for fewer than 12 23.6credits in a semester or the equivalent, or a graduate student as defined by the student's 23.7eligible institution. 23.8 (i) "Program" means the Minnesota GI Bill program established in this section, 23.9unless otherwise specified. 23.10 (j) "Service-connected" has the meaning given by the United States Department 23.11of Veterans Affairs. 23.12 (k) "Veteran" has the meaning given in section 197.447, and also includes a service 23.13member who has fulfilled the requirements for being a veteran but is still serving actively 23.14in the United States armed forces. 23.15 Subd. 3. Program established. There is established a program to provide 23.16postsecondary educational assistance to eligible Minnesota veterans and to the children 23.17and spouses of deceased and severely disabled Minnesota veterans. This program may be 23.18cited as the "Minnesota GI Bill program." 23.19 The director, in consultation with the commissioner and in cooperation with 23.20eligible postsecondary educational institutions, shall expend a biennial appropriation 23.21for the purpose of providing postsecondary educational assistance to eligible persons 23.22in accordance with this program. Each public postsecondary educational institution in 23.23the state must participate in the program and each private postsecondary educational 23.24institution in the state is encouraged to participate in the program. Any participating 23.25private institution may suspend or terminate its participation in the program at the end 23.26of any semester or other academic term. 23.27 Subd. 4. Duties; responsibilities. (a) The director, in consultation with the 23.28commissioner, shall establish policies and procedures including, but not limited to, 23.29procedures for student application record keeping, information sharing, payment to 23.30participating eligible institutions, and other procedures the director considers appropriate 23.31and necessary for effective and efficient administration of the program established in 23.32this section. 23.33 (b) The director, in consultation with the commissioner, may delegate part or 23.34all of the administrative procedures for the program to responsible representatives of 23.35participating eligible institutions. 24.1 Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this 24.2section if: 24.3 (1) the person is: 24.4 (i) a veteran who is serving or has served honorably in any branch or unit of the 24.5United States armed forces at any time on or after August 2, 1990; 24.6 (ii) a nonveteran who has served honorably for a total of 16 years or more 24.7cumulatively as a member of the Minnesota national guard or any other active or reserve 24.8component of the United States armed forces, and any part of that service occurred on 24.9or after August 2, 1990; 24.10 (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as 24.11a direct result of that military service; or 24.12 (iv) the spouse or child of a person described in (i) or (ii) who has a total 24.13and permanent service-connected disability as rated by the United States veterans 24.14administration; 24.15 (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's 24.16state of residence at the time of the person's initial enlistment or any reenlistment in 24.17the United States armed forces; 24.18 (3) the person receiving the educational assistance is a Minnesota resident, as 24.19defined in section 136A.101, subdivision 8; and 24.20 (4) the person receiving the educational assistance is an eligible student. 24.21 (b) A person's eligibility terminates when the person becomes eligible for benefits 24.22under section 135A.52. 24.23 (c) As proof of honorable service and disability or death status for a veteran or 24.24service member, the director, by policy and in consultation with the commissioner, may 24.25require official documentation, including the person's federal form DD-214 or other official 24.26military discharge papers, correspondence from the United States veterans administration, 24.27birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed 24.28affidavits, proof of residency, proof of identity, or any other official documentation the 24.29director considers necessary to determine an applicant's eligibility status. 24.30 (d) The director, in consultation with the commissioner, may deny eligibility or 24.31terminate benefits under this section to any person who has not provided sufficient proof of 24.32eligibility for the program. An applicant may appeal the director's eligibility determination 24.33in writing to the director at any time. The director must rule on any application or appeal 24.34within 30 days of receipt of all documentation that the director requires. Upon receiving 24.35an application with insufficient documentation, the director must notify the applicant 24.36within 30 days of receipt of the application that the application is being suspended pending 25.1receipt by the director of sufficient documentation from the applicant. The decision of the 25.2director regarding an appeal is final; however, an applicant whose appeal of an eligibility 25.3determination has been rejected by the director may submit an additional appeal of that 25.4determination in writing to the director at any time that the applicant is able to provide 25.5substantively significant additional information relating to the person's eligibility for the 25.6program. An approval of an applicant's eligibility by the director following an appeal by 25.7the applicant is not retroactively effective beyond the later of one year previously or the 25.8semester of the person's original application. 25.9 Subd. 6. Benefit amount. (a) On approval by the director of an applicant's 25.10eligibility for the program, the applicant shall be awarded, on a funds-available basis, the 25.11educational assistance under the program for use at any time according to program rules 25.12at any eligible institution. Eligibility for the program terminates upon exhaustion of a 25.13person's benefits as specified in paragraph (c). 25.14 (b) The amount of educational assistance in any semester or term for an eligible 25.15person must be determined by subtracting from the eligible person's cost of attendance 25.16at that eligible public institution, or in the case of an eligible private institution the cost 25.17of attendance for a comparable program at the Twin Cities campus of the University of 25.18Minnesota, the amount the person received or was eligible to receive in that semester 25.19or term from: 25.20 (1) the federal Pell Grant; 25.21 (2) the state grant under section 136A.121; and 25.22 (3) any federal military or veterans educational benefits, including, but not limited 25.23to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 25.24vocational rehabilitation benefits, and any other federal benefits associated with the 25.25person's status as a veteran, except veterans disability payments from the United States 25.26Department of Veterans Affairs. 25.27 (c) The amount of education assistance for any eligible person must not exceed any 25.28of the following amounts: 25.29 (1) $1,250 per semester or term of enrollment, or in the case of a part-time student 25.30$625 per semester or term of enrollment; 25.31 (2) $3,570 per state fiscal year; and 25.32 (3) $10,000 total. 25.33EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 25.34qualifying coursework taken on or after that date. 25.35 Sec. 3. ANNUAL REVIEW AND RECOMMENDATION. 26.1 The commissioner of veterans affairs, in consultation with the director of higher 26.2education, must annually review veterans' participation level in and expenditures for the 26.3Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15 26.4each year, must make recommendations to the chairs of the senate and house committees 26.5having oversight responsibility for veterans affairs regarding adjustment of individual 26.6benefit levels and program funding. 26.9 Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read: 26.10 Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 26.11involving the Minnesota Office of Higher Education and other institutions is governed 26.12by 26.13 (b) Student financial aid. Data collected and used by the Minnesota Office of 26.14Higher Education on applicants for financial assistance are classified under section 26.16 (c) Minnesota college savings plan data. Account owner data, account data, and 26.17data on beneficiaries of accounts under the Minnesota college savings plan are classified 26.18under section 26.19 (d) School financial records. Financial records submitted by schools registering 26.20with the Minnesota Office of Higher Education are classified under section 26.21 (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.22student enrollment and federal and state financial aid are governed by sections 136A.121, 26.23subdivision 18, and 136A.1701, subdivision 11. 26.24 Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 26.25to read: 26.26 Subd. 4. Construction management education surcharge and account. (a) 26.27For nonresidential construction building permits, the surcharge under subdivision 1 26.28is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 26.29whichever amount is greater, and designated for and deposited in the construction 26.30management education account. 26.31 (b) The construction management education account is created as an account in the 26.32special revenue fund, administered by the Minnesota Office of Higher Education for 26.33the purpose of enhancing construction management education in public postsecondary 27.1institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the 27.2director of the Minnesota Office of Higher Education for the purposes of section 136A.127. 27.3 Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read: 27.4 Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 27.5Education Leadership Council is established. The council is composed of 27.6as follows: 27.7 (1) the chair of the University of Minnesota agricultural education program; 27.8 (2) a representative of the commissioner of education; 27.9 (3) a representative of the Minnesota State Colleges and Universities recommended 27.10by the chancellor; 27.11 (4) the president and the president-elect of the Minnesota Association of Agriculture 27.12Educators; 27.13 (5) a representative of the Future Farmers of America Foundation; 27.14 (6) a representative of the commissioner of agriculture; 27.15 (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 27.16University of Minnesota; 27.17 (8) a representative of the Minnesota Private Colleges Council; 27.18 (9) two members representing agriculture education and agriculture business 27.19appointed by the governor; 27.20 27.21and Veterans Affairs; 27.22 27.23 27.24General Legislation and Veterans Affairs, and a member of the senate Education 27.25Committee designated by the Subcommittee on Committees of the Committee on Rules 27.26and Administration; and 27.27 27.28member of the house Education Committee designated by the speaker. 27.29 (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 27.30 27.31member representing the same constituency. 27.32 Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read: 27.33 Subd. 2. Revisions and reviews required. (a) The commissioner of education must 27.34revise and appropriately embed technology and information literacy standards consistent 28.1with recommendations from school media specialists into the state's academic standards 28.2and graduation requirements and implement a review cycle for state academic standards 28.3and related benchmarks, consistent with this subdivision. During each review cycle, the 28.4commissioner also must examine the alignment of each required academic standard and 28.5related benchmark with the knowledge and skills students need for college readiness and 28.6advanced work in the particular subject area. 28.7 (b) The commissioner in the 2006-2007 school year must revise and align the state's 28.8academic standards and high school graduation requirements in mathematics to require 28.9that students satisfactorily complete the revised mathematics standards, beginning in the 28.102010-2011 school year. Under the revised standards: 28.11 (1) students must satisfactorily complete an algebra I credit by the end of eighth 28.12grade; and 28.13 (2) students scheduled to graduate in the 2014-2015 school year or later must 28.14satisfactorily complete an algebra II credit or its equivalent. 28.15The commissioner also must ensure that the statewide mathematics assessments 28.16administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 28.17school year are aligned with the state academic standards in mathematics. The statewide 28.1811th grade mathematics test administered to students under clause (2) beginning in 28.19the 2013-2014 school year must include algebra II test items that are aligned with 28.20corresponding state academic standards in mathematics. The commissioner, in 28.21collaboration with the Minnesota State Colleges and Universities, must ensure that passing 28.22score for the statewide 11th grade mathematics test represents readiness for college so that 28.23a student who achieves a passing score on this test, upon graduation, is immediately ready 28.24to take college courses for college credit in a two-year or a four-year institution, consistent 28.25with section 135A.104. The commissioner must implement a review of the academic 28.26standards and related benchmarks in mathematics beginning in the 2015-2016 school year. 28.27 (c) The commissioner in the 2007-2008 school year must revise and align the state's 28.28academic standards and high school graduation requirements in the arts to require that 28.29students satisfactorily complete the revised arts standards beginning in the 2010-2011 28.30school year. The commissioner must implement a review of the academic standards and 28.31related benchmarks in arts beginning in the 2016-2017 school year. 28.32 (d) The commissioner in the 2008-2009 school year must revise and align the state's 28.33academic standards and high school graduation requirements in science to require that 28.34students satisfactorily complete the revised science standards, beginning in the 2011-2012 28.35school year. Under the revised standards, students scheduled to graduate in the 2014-2015 28.36school year or later must satisfactorily complete a chemistry or physics credit. The 29.1commissioner must implement a review of the academic standards and related benchmarks 29.2in science beginning in the 2017-2018 school year. 29.3 (e) The commissioner in the 2009-2010 school year must revise and align the state's 29.4academic standards and high school graduation requirements in language arts to require 29.5that students satisfactorily complete the revised language arts standards beginning in the 29.62012-2013 school year. The commissioner, in collaboration with the Minnesota State 29.7Colleges and Universities, must ensure that the passing score for the statewide tenth 29.8grade reading and language arts test represents readiness for college so that a student who 29.9achieves a passing score on this test, upon graduation, is immediately ready to take college 29.10courses for college credit in a two-year or a four-year institution, consistent with section 29.11135A.104. The commissioner must implement a review of the academic standards and 29.12related benchmarks in language arts beginning in the 2018-2019 school year. 29.13 (f) The commissioner in the 2010-2011 school year must revise and align the state's 29.14academic standards and high school graduation requirements in social studies to require 29.15that students satisfactorily complete the revised social studies standards beginning in the 29.162013-2014 school year. The commissioner must implement a review of the academic 29.17standards and related benchmarks in social studies beginning in the 2019-2020 school year. 29.18 (g) School districts and charter schools must revise and align local academic 29.19standards and high school graduation requirements in health, physical education, world 29.20languages, and career and technical education to require students to complete the revised 29.21standards beginning in a school year determined by the school district or charter school. 29.22School districts and charter schools must formally establish a periodic review cycle for 29.23the academic standards and related benchmarks in health, physical education, world 29.24languages, and career and technical education. 29.25 Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read: 29.26120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS. 29.27 (a) Students beginning 9th grade in the 2004-2005 school year and later must 29.28successfully complete the following high school level course credits for graduation: 29.29 (1) four credits of language arts; 29.30 (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 29.31and probability sufficient to satisfy the academic standard; 29.32 (3) three credits of science, including at least one credit in biology; 29.33 (4) three and one-half credits of social studies, encompassing at least United 29.34States history, geography, government and citizenship, world history, and economics or 29.35three credits of social studies encompassing at least United States history, geography, 30.1government and citizenship, and world history, and one-half credit of economics taught in 30.2a school's social studies, agriculture education, or business department; 30.3 (5) one credit in the arts; and 30.4 (6) a minimum of seven elective course credits. 30.5 A course credit is equivalent to a student successfully completing an academic 30.6year of study or a student mastering the applicable subject matter, as determined by the 30.7local school district. 30.8 (b) An agriculture science course may fulfill a science credit requirement in addition 30.9to the specified science credits in biology and chemistry or physics under paragraph (a), 30.10clause (3). 30.11 (c) The commissioner, in collaboration with the Minnesota State Colleges and 30.12Universities, must develop and implement a statewide plan to communicate with all 30.13Minnesota high school students no later than the beginning of ninth grade the state's 30.14expectations for college readiness, consistent with sections 120B.023, subdivision 2, 30.15paragraphs (b) and (e), and 135A.104. 30.16 Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read: 30.17 Subd. 7. Reports. Instructional expenditure and enrollment data 30.18 30.19Minnesota Office of Higher Education and the Department of Finance and included in the 30.20biennial budget document. The specific data shall be submitted only after the director of 30.21the Minnesota Office of Higher Education has consulted with a data advisory task force to 30.22determine the need, content, and detail of the information. 30.23 Sec. 7. [135A.043] RESIDENT TUITION. 30.24 (a) A student shall qualify for a resident tuition rate or its equivalent at state 30.25universities and colleges, including the University of Minnesota, if the student meets 30.26all of the following requirements: 30.27 (1) high school attendance within the state for three or more years; 30.28 (2) graduation from a state high school or attainment within the state of the 30.29equivalent of high school graduation; and 30.30 (3) registration as an entering student at, or current enrollment in, a public institution 30.31of higher education. 30.32 (b) This section is in addition to any other statute, rule, or higher education 30.33institution regulation or policy providing eligibility for a resident tuition rate or its 30.34equivalent to a student. 31.1 (c) To qualify for resident tuition under this section an individual who is not a citizen 31.2or permanent resident of the United States must provide the college or university with 31.3an affidavit that the individual will file an application to become a permanent resident at 31.4the earliest opportunity the individual is eligible to do so. 31.5EFFECTIVE DATE.This section is effective the day following final enactment 31.6and applies to tuition for school terms commencing on or after that date. 31.7 Sec. 8. [135A.044] APPROPRIATION; CONTRACT BUYOUT. 31.8 No appropriation from the state of Minnesota to the governing boards of the 31.9University of Minnesota or the Minnesota State Colleges and Universities shall be used 31.10directly or indirectly for costs related to the early termination of a contract of any person 31.11who reports to the director of athletics at any campus. 31.12 Sec. 9. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read: 31.13 Subd. 2. Performance and accountability. Higher education systems and 31.14campuses are expected to achieve the objectives in subdivision 1 and will be held 31.15accountable for doing so. The legislature is increasing the flexibility of the systems and 31.16campuses to provide greater responsibility to higher education in deciding how to achieve 31.17statewide objectives, and to decentralize authority so that those decisions can be made 31.18at the level where the education is delivered. 31.19 31.20 31.21 31.22from determining its own objectives and performance measures beyond those identified 31.23in this section. 31.24 Sec. 10. [135A.104] COLLEGE READINESS. 31.25 (a) Minnesota State Colleges and Universities must collaborate with the 31.26commissioner of education in establishing passing scores on the Minnesota comprehensive 31.27assessments in reading for grade 10 and in mathematics for grade 11 under section 31.28120B.30 so that "passing score" performances on those two assessments represent a 31.29student's college readiness. For purposes of this section and chapter 120B, "college 31.30readiness" means that a student who graduates from a public high school is immediately 31.31ready to take college courses for college credit in a two-year or a four-year institution. 31.32Minnesota State Colleges and Universities also must collaborate with the commissioner of 31.33education to develop and implement a statewide plan to communicate with all Minnesota 32.1high school students no later than the beginning of ninth grade the state's expectations for 32.2college readiness. 32.3 (b) The entrance and admission materials that the Minnesota State Colleges and 32.4Universities provide to prospective students must clearly indicate the level of academic 32.5preparation that the students must have in order to be ready to immediately take college 32.6courses for college credit in two-year and four-year institutions. 32.7 Sec. 11. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read: 32.8 Subdivision 1. Definitions. As used in this section, the following terms have the 32.9meanings given them. 32.10 (a) "Administrator" means the administrator of the institution or other person with 32.11general control and supervision of the institution. 32.12 (b) "Public or private postsecondary educational institution" or "institution" means 32.13any of the following institutions having an enrollment of more than 100 persons during 32.14any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 32.15(2) the state universities; (3) the state community colleges; (4) public technical colleges; 32.16(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 32.17and (7) schools subject to either chapter 141, sections 32.18schools exempt under section 32.19state for an academic year greater than six consecutive months. An institution's report to 32.20the Minnesota Office of Higher Education or the Minnesota Department of Education may 32.21be considered when determining enrollment. 32.22 (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 32.23high school in 1997 or later, and who is (1) registering for more than one class during 32.24a full academic term, such as a quarter or a semester or (2) housed on campus and is 32.25registering for one or more classes. Student does not include persons enrolled in extension 32.26classes only or correspondence classes only. 32.27 Sec. 12. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read: 32.28 Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 32.29of age before the beginning of any term, semester or quarter, in which a course of study 32.30is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 32.31of age before the beginning of the term. 32.32 Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read: 33.1 Subdivision 1. Fees and tuition. Except for an administration fee established by the 33.2governing board at a level to recover costs, to be collected only when a course is taken for 33.3credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 33.4of tuition or activity fees to attend courses offered for credit, audit any courses offered 33.5for credit, or enroll in any noncredit courses in any state supported institution of higher 33.6education in Minnesota when space is available after all tuition-paying students have been 33.7accommodated. A senior citizen enrolled under this section must pay any materials, 33.8personal property, or service charges for the course. In addition, a senior citizen who is 33.9enrolled in a course for credit must pay an administrative fee in an amount established 33.10by the governing board of the institution to recover 33.11administrative fee charges to a senior citizen auditing a course. For the purposes of this 33.12section and section 33.13designed and offered specifically and exclusively for senior citizens. 33.14 The provisions of this section and section 33.15designed and offered by the University of Minnesota, and the Minnesota State Colleges 33.16and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 33.17under the provisions of this section and section 33.18institutions in their computation of full-time equivalent students when requesting staff 33.19or appropriations. 33.20 Sec. 14. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read: 33.21 Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 33.22shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 33.23courses, nor income limitation imposed in determining eligibility. 33.24 (b) A senior citizen enrolled in a closed enrollment contract training 33.25 33.26 Sec. 15. [136A.002] DEFINITIONS. 33.27 Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section 33.28have the meanings given them. 33.29 Subd. 2. Office of Higher Education or office. "Office of Higher Education" or 33.30"office" means the Minnesota Office of Higher Education. 33.31 Sec. 16. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read: 33.32 Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 33.33for: 34.1 (1) necessary state level administration of financial aid programs, including 34.2accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 34.3financial aid programs to the governor and the legislature; 34.4 (2) approval, registration, licensing, and financial aid eligibility of private collegiate 34.5and career schools, under sections 34.6 (3) administering the Learning Network of Minnesota; 34.7 (4) negotiating and administering reciprocity agreements; 34.8 (5) publishing and distributing financial aid information and materials, and other 34.9information and materials under section 34.10 (6) collecting and maintaining student enrollment and financial aid data and 34.11reporting data on students and postsecondary institutions to develop and implement a 34.12process to measure and report on the effectiveness of postsecondary institutions; 34.13 (7) administering the federal programs that affect students and institutions on a 34.14statewide basis; and 34.15 (8) prescribing policies, procedures, and rules under chapter 14 necessary to 34.16administer the programs under its supervision. 34.17 Sec. 17. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read: 34.18 Subd. 5. Expiration. Notwithstanding section 34.19groups established in this section do not expire 34.20 Sec. 18. Minnesota Statutes 2006, section 136A.0411, is amended to read: 34.21136A.0411 COLLECTING FEES. 34.22 The office may charge fees for seminars, conferences, workshops, services, and 34.23materials. The office may collect fees for registration and licensure of private institutions 34.24under sections 34.25appropriated to the office. 34.26 Sec. 19. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read: 34.27 Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 34.28before the last day in January, submit a report to the committees in the house of 34.29representatives and the senate with responsibility for higher education finance on: 34.30 (1) participation in the tuition reciprocity program by Minnesota students and 34.31students from other states attending Minnesota postsecondary institutions under a 34.32reciprocity agreement; 34.33 (2) reciprocity and resident tuition rates at each institution; 35.1 (3) interstate payments and obligations for each state participating in the tuition 35.2reciprocity program in the prior year 35.3 (4) summary statistics on number of graduates by institution, degree granted, and 35.4year of graduation for reciprocity students who attended Minnesota postsecondary 35.5institutions. 35.6 Sec. 20. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read: 35.7 Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 35.8educational institution located in this state or in a state with which the office has entered 35.9into a higher education reciprocity agreement on state student aid programs that 35.10is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 35.11operated 35.12(i) maintains academic standards substantially equivalent to those of comparable 35.13institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 35.14by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 35.15Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. 35.16 Sec. 21. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read: 35.17 Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 35.18responsibility for covering the recognized cost of attendance by the applicant, the 35.19applicant's family, and the government. The amount of a financial stipend must not 35.20exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 35.21deducting the following: 35.22 (1) the assigned student responsibility of at least 35.23attending the institution of the applicant's choosing; 35.24 (2) the assigned family responsibility as defined in section 35.25 (3) the amount of a federal Pell grant award for which the grant applicant is eligible. 35.26 The minimum financial stipend is $100 per academic year. 35.27 Sec. 22. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read: 35.28 Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 35.29the applicant: 35.30 (1) is a resident of the state of Minnesota; 35.31 (2) has a child 12 years of age or younger, or 14 years of age or younger who is 35.32disabled as defined in section 35.33regular basis from a licensed or legal, nonlicensed caregiver; 36.1 (3) is income eligible as determined by the office's policies and rules, but is not a 36.2recipient of assistance from the Minnesota family investment program; 36.3 (4) has not earned a baccalaureate degree and has been enrolled full time less than 36.4eight semesters or the equivalent; 36.5 (5) is pursuing a nonsectarian program or course of study that applies to an 36.6undergraduate degree, diploma, or certificate; 36.7 (6) is enrolled at least half time in an eligible institution; and 36.8 (7) is in good academic standing and making satisfactory academic progress. 36.9 (b) A student who withdraws from enrollment for active military service is entitled 36.10to an additional semester or the equivalent of grant eligibility and will be considered to be 36.11in continuing enrollment status upon return. 36.12 Sec. 23. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 36.13MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS. 36.14 Subdivision 1. TEACH. The teacher education and compensation helps program 36.15(TEACH) is established to provide tuition scholarships, education incentives, and an early 36.16childhood teacher retention program to provide retention incentives to early care and 36.17education providers. The director shall make a grant with appropriations for this purpose 36.18to a nonprofit organization licensed to administer the TEACH early childhood program. 36.19 Subd. 2. Program components. (a) The nonprofit organization must use the 36.20grant for: 36.21 (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 36.22recognized child development associate credential or college-level courses leading to an 36.23associate's or bachelor's degree in early childhood development and school-age care; and 36.24 (2) education incentives of a minimum of $100 to participants in the tuition 36.25scholarship program if they complete a year of working in the early care and education 36.26field. 36.27 (b) Applicants for the scholarship must be employed by a licensed early childhood 36.28or child care program and working directly with children, a licensed family child care 36.29provider, or an employee in a school-age program exempt from licensing under section 36.30245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 36.31awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 36.32the total scholarship and must be sponsored by their employers, who must also contribute 36.33ten percent of the total scholarship. Scholarship recipients who are self-employed must 36.34contribute 20 percent of the total scholarship. 37.1 (c) The organization must also use the grant for teacher retention incentives of 37.2$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives 37.3must be employed by a licensed early childhood or child care program and working 37.4directly with children, a licensed family child care provider, or an employee in a 37.5school-age program exempt from licensing under section 245A.03, subdivision 2, clause 37.6(12). Lower wage earners must be given priority for the retention incentives. The amount 37.7of the retention incentive must be based on the applicant's level of education at the time of 37.8application. A provider is eligible for the retention incentive if the provider: 37.9 (1) has worked in the field for at least one year and has been working at the same 37.10location for at least one year at the time of application; 37.11 (2) agrees to remain in the provider's current position for a period of at least one 37.12year; and 37.13 (3) has an associate's or bachelor's degree or a child development associate's degree. 37.14 Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early 37.15childhood teacher retention programs must have an advisory board as prescribed by the 37.16national TEACH organization. 37.17 Sec. 24. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 37.18PROGRAM. 37.19 Subdivision 1. Construction Management Education Account Advisory 37.20Committee. The director must establish an advisory committee for the construction 37.21management education account. Members of the committee must include: the executive 37.22vice-president of the Minnesota Mechanical Contractors association or designee, a 37.23chapter manager of one of the Minnesota chapters of the National Electrical Contractors 37.24Association or designee, the executive director of the Associated General Contractors of 37.25Minnesota or designee, two members of the nonresidential construction industry, and a 37.26construction management program coordinator or director from an accredited construction 37.27management program in the Minnesota State Colleges and Universities. Members serve 37.28three-year terms. Advisory committee members are reimbursed for expenses related to 37.29committee activities. The director may accept funds from federal, state, or local public 37.30agencies, or from private foundations or individuals for deposit into the construction 37.31management education account under section 16B.70. All money in the account must 37.32be used for the purposes of this section. 37.33 Subd. 2. Grants. Grants from the construction management education account must 37.34be used to maintain and increase the quality and availability of education programs for 37.35the construction industry by awarding grants to accredited construction management 38.1programs in the Minnesota State Colleges and Universities. Grants must be used to 38.2maintain and upgrade facilities and provide greater industry access to modern construction 38.3standards and management practices. In making grants, the director, in consultation with 38.4the committee, must: 38.5 (1) confirm the qualifications of any program applying for a grant; 38.6 (2) affirm applications for American Council for Construction Education 38.7accreditation and, when funds are available, award grants to complete the accreditation 38.8process; 38.9 (3) promote close ties between technical and community colleges and four-year 38.10construction management programs; and 38.11 (4) support the development of new educational programs with specific emphasis on 38.12outreach to the construction industry at large. 38.13 Subd. 3. Grant awards. (a) The committee may award grants to a Minnesota State 38.14Colleges and Universities institution to support construction management education and to 38.15promote outreach and continuing education in the construction industry. 38.16 (b) An eligible institution must provide one of the following: 38.17 (1) a bachelor of science construction management degree accredited by the 38.18American Council for Construction Education; 38.19 (2) a degree with an American Council for Construction Education accredited 38.20option, including, but not limited to, Engineering Technology and Industrial Technology; 38.21 (3) a bachelor of science degree program documenting placement of more than 50 38.22percent of their graduates with Minnesota nonresidential contractors; and 38.23 (4) the development of a construction management curriculum to meet the American 38.24Council for Construction Education criteria. 38.25 (c) Grant awards may be made as follows: 38.26 (1) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.27for institutions qualifying under paragraph (b), clause (1); 38.28 (2) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.29for institutions qualifying under paragraph (b), clause (2); 38.30 (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the 38.31past academic year to a maximum of $20,000 for institutions qualifying under paragraph 38.32(b), clause (3); 38.33 (4) up to $25,000 for the purpose of becoming accredited by the American Council 38.34for Construction Education for two years which may be renewed if the institution is 38.35continuing progress towards accreditation; and 39.1 (5) for faculty recruitment and development in construction management programs, 39.2including support for postgraduate work leading to advanced degrees, visiting lecturer 39.3compensation and expenses, teaching assistant positions, and faculty positions; and 39.4 (6) to support general classroom and laboratory operating expenses. 39.5 Grants may only be awarded from the construction management education account 39.6to the extent that funds are available. No other state funding may be provided for these 39.7grants. 39.8 Subd. 4. Reports. (a) The director must annually report to the committees of the 39.9legislature responsible for higher education finance by January 15. The report must 39.10include the names of the public postsecondary educational institutions receiving grants, the 39.11amount of the grant, the purposes for each grant, the number of students served, and the 39.12number of placements made to the construction industry for the previous academic year. 39.13 (b) After receiving an initial grant, the president of the public postsecondary 39.14educational institution must annually submit a report to the director listing the amount of 39.15all past grants awarded from the construction management education account and the uses 39.16of those funds. The report must be submitted with a request for a new or continuing grant 39.17and at a minimum must include the following: 39.18 (1) the number of graduates placed with the Minnesota contractors during the 39.19previous academic year; 39.20 (2) the expected enrollment in construction management courses in the upcoming 39.21academic year; and 39.22 (3) continuing education and extension courses offered in construction management 39.23during the previous academic year and their enrollments. 39.24 Subd. 5. Administration. Up to $15,000 per year from the construction 39.25management education account may be used for the administration of this program. 39.26 Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read: 39.27 Subdivision 1. Scope. For purposes of sections 39.28defined in this section have the meanings 39.29 Sec. 26. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read: 39.30 Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 39.31educational institution that 39.32Regents of the University of Minnesota; (2) is operated publicly or privately in another 39.33state, is approved by the United States Secretary of Education, and, as determined by 39.34the office, maintains academic standards substantially equal to those of comparable 40.1institutions operated in this state; (3) is licensed or registered as a postsecondary institution 40.2by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 40.3Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 40.4also includes any institution chartered in a province. 40.5 Sec. 27. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read: 40.6 Subd. 3. Payments. Work-study payments shall be made to eligible students by 40.7postsecondary institutions as provided in this subdivision. 40.8 (a) Students shall be selected for participation in the program by the postsecondary 40.9institution on the basis of student financial need. 40.10 (b) In selecting students for participation, priority must be given to students enrolled 40.11for at least 12 credits. In each academic year, a student may be awarded work-study 40.12payments for one period of nonenrollment or less than half-time enrollment if the student 40.13will enroll on at least a half-time basis during the following academic term. 40.14 (c) Students will be paid for hours actually worked and the maximum hourly rate 40.15of pay shall not exceed the maximum hourly rate of pay permitted under the federal 40.16college work-study program. 40.17 (d) Minimum pay rates will be determined by an applicable federal or state law. 40.18 (e) The office shall annually establish a minimum percentage rate of student 40.19compensation to be paid by an eligible employer. 40.20 (f) Each postsecondary institution receiving money for state work-study grants 40.21shall make a reasonable effort to place work-study students in employment with eligible 40.22employers outside the institution. However, a public employer other than the institution 40.23may not terminate, lay off, or reduce the working hours of a permanent employee for the 40.24purpose of hiring a work-study student, or replace a permanent employee who is on layoff 40.25from the same or substantially the same job by hiring a work-study student. 40.26 (g) The percent of the institution's work-study allocation provided to graduate 40.27students shall not exceed the percent of graduate student enrollment at the participating 40.28institution. 40.29 (h) An institution may use up to 30 percent of its allocation for student internships 40.30with private, for-profit employers. 40.31 Sec. 28. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read: 40.32 Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 40.33to issue revenue bonds whose aggregate principal amount at any time shall not exceed 40.34 41.1refunding bonds of the authority under the provisions of sections 41.2to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 41.3renovating, improving, furnishing, or equipping one or more projects or parts thereof. 41.4 Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read: 41.5 Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 41.6shall award grants to foster postsecondary attendance and retention by providing outreach 41.7services to historically underserved students in grades six through 12 and historically 41.8underrepresented college students. Grants must be awarded to programs that provide 41.9precollege services, including, but not limited to: 41.10 (1) academic counseling; 41.11 (2) mentoring; 41.12 (3) fostering and improving parental involvement in planning for and facilitating a 41.13college education; 41.14 (4) services for students with English as a second language; 41.15 (5) academic enrichment activities; 41.16 (6) tutoring; 41.17 (7) career awareness and exploration; 41.18 (8) orientation to college life; 41.19 (9) assistance with high school course selection and information about college 41.20admission requirements; and 41.21 (10) financial aid counseling. 41.22 Grants shall be awarded to postsecondary institutions, professional organizations, 41.23community-based organizations, or others deemed appropriate by the director. 41.24 Grants shall be awarded for one year and may be renewed for a second year with 41.25documentation to the Minnesota Office of Higher Education of successful program 41.26outcomes. 41.27 Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read: 41.28 Subd. 2. Eligible students. Eligible students include students in grades six through 41.2912 who meet one or more of the following criteria: 41.30 (1) are counted under section 1124(c) of the Elementary and Secondary Education 41.31Act of 1965 (Title I); 41.32 (2) are eligible for free or reduced-price lunch under the National School Lunch Act; 41.33 (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 41.34I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or 42.1 (4) are a member of a group traditionally underrepresented in higher education. 42.2 Eligible undergraduate students include those who met the student eligibility criteria 42.3as 6th through 12th graders. 42.4 Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read: 42.5 Subd. 3. Application process. The director of the Minnesota Office of Higher 42.6Education shall develop a grant application process. The director shall attempt to support 42.7projects in a manner that ensures that eligible students throughout the state have access 42.8to 42.9 The grant application must include, at a minimum, the following information: 42.10 (1) a description of the characteristics of the students to be served reflective of the 42.11need for services listed in subdivision 1; 42.12 (2) a description of the services to be provided and a timeline for implementation of 42.13the activities; 42.14 (3) a description of how the services provided will foster postsecondary attendance 42.15and support postsecondary retention; 42.16 (4) a description of how the services will be evaluated to determine whether the 42.17program goals were met; and 42.18 (5) other information as identified by the director. 42.19Grant recipients must specify both program and student outcome goals, and performance 42.20measures for each goal. 42.21 Sec. 32. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read: 42.22 Subd. 6. Program evaluation. Each grant recipient must annually submit a report 42.23to the Minnesota Office of Higher Education delineating its program and student outcome 42.24goals, and activities implemented to achieve the stated outcomes. The goals must be 42.25clearly stated and measurable. Grant recipients are required to collect, analyze, and report 42.26on participation and outcome data that enable the office to verify that the program goals 42.27were met. The office shall maintain: 42.28 (1) information about successful precollege program and undergraduate student 42.29retention program activities for dissemination to individuals throughout the state interested 42.30in adopting or replicating successful program practices; and 42.31 (2) data on the success of the funded projects in increasing the high school 42.32graduation 42.33by the grant recipients. The office may convene meetings of the grant recipients, as 43.1needed, to discuss issues pertaining to the implementation of precollege services and 43.2undergraduate retention programs. 43.3 Sec. 33. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read: 43.4 Subdivision 1. Membership. The board consists of 43.5the governor with the advice and consent of the senate. At least one member of the board 43.6must be a resident of each congressional district. Three members must be students who are 43.7enrolled at least half time in a degree, diploma, or certificate program or have graduated 43.8from an institution governed by the board within one year of the date of appointment. The 43.9student members shall include: one member from a community college, one member from 43.10a state university, and one member from a technical college. Two members must be 43.11members of the AFL-CIO. The remaining members must be appointed to represent the 43.12state at large. 43.13 Sec. 34. [136F.045] UNION MEMBER SELECTION. 43.14 Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting, 43.15screening, and recommending qualified candidates for their members of the board. The 43.16AFL-CIO must develop a statement of selection criteria for board membership and a 43.17process for recommending candidates. Beginning in 2008, and every six years thereafter, 43.18the AFL-CIO must recommend four candidates for the two board positions to the governor 43.19by April 15. The governor must appoint two of the candidates to the board of trustees. 43.20 Sec. 35. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read: 43.21 Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 43.22in consultation with the commissioners of employee relations and finance, may develop 43.23policies to allow system office or campus employees on salaries, as defined in section 43.25time for which leave is taken. 43.26 43.27 43.28 Sec. 36. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read: 43.29 Subd. 2. Activity funds. All receipts attributable to the state colleges and 43.30universities activity funds 43.31and are not subject to budgetary control as exercised by the commissioner of finance. 44.1 Sec. 37. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 44.2to read: 44.3 Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall 44.4have authority to control the amount and manner of deposit of all receipts described in 44.5this section in depositories selected by the board. The board's authority shall include 44.6specifying the considerations, financial activities, and conditions required from the 44.7depository, including the requirement of collateral security or a corporate surety bond 44.8as described in section 118A.03. The board may compensate the depository, including 44.9paying a reasonable charge to the depository, maintaining appropriate compensating 44.10balances with the depository, or purchasing non-interest-bearing certificates of deposit 44.11from the depository for performing depository-related services. 44.12 Sec. 38. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read: 44.13 Subd. 5. Amount of matching grant. The amount of the matching grant for a 44.14beneficiary equals: 44.15 (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 44.16of the contributions made to the beneficiary's account during the calendar year, not to 44.17exceed 44.18 (2) if the beneficiary's family income is more than $50,000 but not more than 44.19$80,000, 44.20during the calendar year, not to exceed 44.21 Sec. 39. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 44.22AT WORTHINGTON; YMCA LEASE AGREEMENT. 44.23 (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 44.24into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 44.25the Minnesota West Community and Technical College at Worthington campus for the 44.26construction of a YMCA facility. The lease may also include the city of Worthington. 44.27 (b) Siting and design of the facility must be consistent with the college's master 44.28plan and Minnesota State Colleges and Universities' building standards. Minnesota 44.29West Community and Technical College may negotiate for use of the facility for college 44.30purposes. The lease must contain a provision that the lease shall terminate if the improved 44.31property is no longer used for the partial benefit of the students at the Worthington campus. 44.32 Sec. 40. INTEREST RATE SWAP AND OTHER AGREEMENTS; 44.33IMPLEMENTATION PLAN. 45.1 The Minnesota Office of Higher Education must develop a plan for implementing 45.2interest rate exchanges, swaps, or other interest rate protection agreements for its student 45.3loan programs. The plan must be presented in a report to the committees of legislature 45.4responsible for higher education finance by January 15, 2008. The report must address 45.5potential contracting arrangements and options, benefits and risks associated with these 45.6agreements, and the potential impacts on the student loan program, its assets, and its 45.7objectives. 45.8 Sec. 41. REPEALER. 45.9(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6; 45.10135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed. 45.11(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed. 45.14 Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS. 45.15 Subdivision 1. Short title. This section may be cited as the Textbook Disclosure, 45.16Pricing, and Access Act. 45.17 Subd. 2. Purpose and intent. The purpose of this act is to ensure that every student 45.18in higher education is offered better and more timely access to affordable course materials 45.19by educating and informing faculty, students, administrators, institutions, bookstores, and 45.20publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the 45.21policy of the state of Minnesota that all involved parties must work together to identify 45.22ways to decrease the cost of course materials for students while protecting the academic 45.23freedom of faculty members to provide high-quality course materials for students. 45.24 Subd. 3. Definitions. For the purposes of this section, the following definitions 45.25have the meanings given. 45.26 (1) "Bundled" means any course material packaged together to be sold for one price. 45.27 (2) "Bookstore" means a store that is affiliated with a postsecondary institution or 45.28has a contract with a postsecondary institution to sell course materials to students enrolled 45.29at the postsecondary institution. 45.30 (3) "Course material" means textbooks as defined in section 297A.67, subdivision 45.3113, custom course materials, and instructional materials as defined in section 297A.67, 45.32subdivision 13a, sold to students by a bookstore in a bundled or unbundled form. 46.1 (4) "Custom course materials" means any combination of textbooks, course 46.2materials, or any part thereof that has been customized, produced, and sold by a distributor 46.3or publisher specifically for a specific course, program, or field of study. 46.4 (5) "Distributor" means an independent contractor, including its employees or agents, 46.5that is in the business of selling, distributing, advertising, marketing, or maintaining an 46.6inventory of course materials for a postsecondary institution or bookstore. 46.7 (6) "Postsecondary institution" means a Minnesota institution defined under section 46.8136A.101, subdivision 4. 46.9 (7) "Publisher" means a publishing house, firm, or business, including its employees 46.10or agents, acting with authority of the publisher that publishes, sells, markets, or maintains 46.11an inventory of course materials to a postsecondary institution or bookstore. 46.12 Subd. 4. Publisher disclosures. (a) Beginning January 1, 2008, a publisher or 46.13distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty 46.14member or other individual at a postsecondary institution responsible for selecting course 46.15material within seven days of a request, at least the following: 46.16 (1) the title, edition, author, and International Standard Book Number (ISBN) of all 46.17course material and custom course materials, if applicable; 46.18 (2) the price for the course material; 46.19 (3) whether the required course material is bundled with optional material, whether 46.20it can be unbundled, and the price for each bundled and unbundled component; 46.21 (4) whether the material is available in an alternative format and the cost for the 46.22alternatively formatted material; and 46.23 (5) summary of revisions to requested course material for the previous edition or 46.24release for materials that have been in circulation for five years or less and a detailed 46.25breakdown of revisions must be made available in writing within seven days of the request. 46.26 (b) A publisher or distributor must make all bundled course materials available to 46.27bookstores or postsecondary institutions in an unbundled form or provide written or verbal 46.28notice within seven days of a request under this subdivision if the unbundled materials are 46.29not available. 46.30 (c) A publisher or distributor must post on its Web site, include in its marketing 46.31materials, or disclose in writing when a request is made under this subdivision for the 46.32return policy for course material, including any penalties or conditions for returns. 46.33 (d) Disclosure under this section is not required for mass market and trade books that 46.34are not published, marketed, or sold primarily for use in or by postsecondary institutions. 47.1 Subd. 5. Payment for course material. Each postsecondary institution must adopt 47.2policies that allow students to add the costs of course material purchased at a bookstore 47.3to existing waivers or payment plans for tuition and fees. 47.4 Subd. 6. Notice to purchase. (a) An instructor shall make reasonable efforts to 47.5notify a bookstore of the final order for required and recommended course material 47.6including, but not limited to, alternative formats, previous editions, or custom course 47.7materials at least 30 days prior to the commencement of the term. 47.8 (b) The bookstore must notify students of the following information concerning the 47.9required and recommended course material at least 15 days prior to the commencement of 47.10the term for which the course material is required, including, but not limited to: 47.11 (1) the title, edition, author, and International Standard Book Number (ISBN) of 47.12the course material; 47.13 (2) the price for the course material; 47.14 (3) whether the required course material is bundled with optional material, whether 47.15it can be unbundled, and the price for each bundled and unbundled component; and 47.16 (4) whether the material is available in an alternative format and the cost for the 47.17alternatively formatted material. 47.18 Subd. 7. Educational strategies. (a) During the biennium ending June 30, 2009, 47.19the Minnesota Office of Higher Education shall work with postsecondary institutions 47.20to develop educational materials based upon the findings of the Minnesota Textbook 47.21Advisory Task Force recommendations and other relevant information, convene and 47.22sponsor meetings and workshops, and provide educational materials for faculty, students, 47.23administrators, institutions, bookstores, and publishers in order to educate all interested 47.24parties on strategies for reducing the costs of course materials for students attending 47.25postsecondary institutions. 47.26 (b) The Minnesota Office of Higher Education must develop and maintain a 47.27standardized request form for publisher disclosure under this section with all required 47.28information. The request form must be in an electronic format that can be downloaded 47.29from the office Web site. 47.32 Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read: 47.33136A.61 POLICY. 47.34 The legislature has found and hereby declares that the availability of legitimate 47.35courses and programs leading to academic degrees offered by responsible private not for 48.1profit and for profit institutions of postsecondary education and the existence of legitimate 48.2private colleges and universities are in the best interests of the people of this state. The 48.3legislature has found and declares that the state can provide assistance and protection 48.4for persons choosing private institutions and programs, by establishing policies and 48.5procedures to assure the authenticity and legitimacy of private postsecondary education 48.6institutions and programs. The legislature has also found and declares that this same 48.7policy applies to any private and public postsecondary educational institution located in 48.8another state or country which offers or makes available to a Minnesota resident any 48.9course, program or educational activity which does not require the leaving of the state 48.10for its completion. 48.11 Sec. 2. [136A.615] CITATION. 48.12 Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 48.13Out-of-State Public Postsecondary Education Act." 48.14 Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read: 48.15 Subd. 3. School. "School" means: 48.16 (1) any 48.17corporation, or any combination thereof, which 48.18nonprofit postsecondary education institution; 48.19profit postsecondary education institution; (iii) provides a postsecondary instructional 48.20program or course leading to a degree whether or not for profit; 48.21operates a private, postsecondary education institution which uses the term "college", 48.22"academy", "institute" or "university" in its name; 48.23 48.24 48.25 48.26 (2) any public postsecondary educational institution located in another state or 48.27country which offers or makes available to a Minnesota resident any course, program or 48.28educational activity which does not require the leaving of the state for its completion; or 48.29 (3) any individual, entity, or postsecondary institution located in another state 48.30that contracts with any school located within the state of Minnesota for the purpose of 48.31providing educational programs, training programs, or awarding postsecondary credits 48.32or continuing education credits to Minnesota residents that may be applied to a degree 48.33program. 49.1 Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read: 49.2136A.63 REGISTRATION. 49.3 Subdivision 1. Annual registration. All schools located within Minnesota and 49.4all schools located outside Minnesota which offer degree programs or courses within 49.5Minnesota shall register annually with the office. 49.6 Subd. 2. Sale of an institution. Within 30 days of a change of ownership the school 49.7must submit a registration renewal application, all usual and ordinary information and 49.8materials for an initial registration, and applicable registration fees for a new institution. 49.9For purposes of this subdivision, "change of ownership" means a merger or consolidation 49.10with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 49.11the assets of a school; the transfer of a controlling interest of at least 51 percent of the 49.12school's stock; or a change in the not-for-profit or for profit status of a school. 49.13 Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read: 49.14136A.64 INFORMATION REQUIRED FOR REGISTRATION. 49.15 Subdivision 1. Schools to provide information. As a basis for registration, schools 49.16shall provide the office with such information as the office needs to determine the nature 49.17and activities of the school, including but not limited to 49.18 49.19 49.20 49.21shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 49.22 (1) articles of incorporation, constitution, bylaws, or other operating documents; 49.23 (2) a duly adopted statement of the school's mission and goals; 49.24 (3) evidence of current school or program licenses granted by departments or 49.25agencies of any state; 49.26 (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 49.27past fiscal year including any management letters provided by the independent auditor 49.28or, if the school is a public institution outside Minnesota, an income statement for the 49.29immediate past fiscal year; 49.30 (5) all current promotional and recruitment materials and advertisements; and 49.31 (6) the current school catalog and, if not contained in the catalog: 49.32 (i) the members of the board of trustees or directors, if any; 49.33 (ii) the current institutional officers; 49.34 (iii) current full-time and part-time faculty with degrees held or applicable 49.35experience; 50.1 (iv) a description of all school facilities; 50.2 (v) a description of all current course offerings; 50.3 (vi) all requirements for satisfactory completion of courses, programs, and degrees; 50.4 (vii) the school's policy about freedom or limitation of expression and inquiry; 50.5 (viii) a current schedule of fees, charges for tuition, required supplies, student 50.6activities, housing, and all other standard charges; 50.7 (ix) the school's policy about refunds and adjustments; 50.8 (x) the school's policy about granting credit for prior education, training, and 50.9experience; and 50.10 (xi) the school's policies about student admission, evaluation, suspension, and 50.11dismissal. 50.12 Subd. 2. Financial records. The office shall not disclose financial records or 50.13accreditation reports provided to it by a school pursuant to this section except for the 50.14purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 50.15decision to approve or not to approve the granting of degrees or the use of a name by the 50.16school. Section 50.17 Subd. 3. Additional information. If the office is unable to determine the nature 50.18and activities of a school on the basis of the information in subdivision 1, the office shall 50.19notify the school of additional information needed. 50.20 Subd. 4. Verification of information. The office may verify the accuracy of 50.21submitted information by inspection, visitation, or any other means it considers necessary. 50.22 Subd. 5. Public information. All information submitted to the office is public 50.23information except financial and accreditation records and information. The office may 50.24disclose financial records or information to defend its decision to approve or disapprove 50.25granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 50.26under chapter 14 or other legal proceedings. 50.27 Subd. 6. Late registration penalty. Applications for renewal for any registration 50.28received after the deadline date specified in the renewal materials provided by the office 50.29are subject to a late fee equal to 20 percent of the annual registration renewal fee. 50.30 Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs 50.31associated with a site evaluation visit outside Minnesota if the visit is necessary under 50.32section 136A.64, subdivision 1 or 3. 50.33 Sec. 6. [136A.645] SCHOOL CLOSURE. 50.34 (a) When a school decides to cease postsecondary education operations, or if its 50.35registration is refused, revoked, or suspended it must cooperate with the office in assisting 51.1students to find alternative means to complete their studies with a minimum of disruption, 51.2and inform the office of the following: 51.3 (1) the planned date for termination of postsecondary education operations; 51.4 (2) the planned date for the transfer of the student records; 51.5 (3) confirmation of the name and address of the organization to receive and hold 51.6the student records; and 51.7 (4) the official at the organization receiving the student records who is designated to 51.8provide official copies of records or transcripts upon request. 51.9 (b) Upon notice from a school of its intention to cease operations, or if a school's 51.10registration is revoked, refused, or suspended, the office shall notify the school of the date 51.11on which it must cease the enrollment of students and all postsecondary educational 51.12operations. 51.13 Sec. 7. [136A.646] ADDITIONAL SECURITY. 51.14 In the event any registered institution is notified by the United States Department 51.15of Education that it has fallen below minimum financial standards and that its continued 51.16participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 51.17Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 51.18Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 51.19institution shall provide a surety bond conditioned upon the faithful performance of all 51.20contracts and agreements with students in a sum equal to the "letter of credit" required by 51.21the United States Department of Education in the Letter of Credit Alternative, but in no 51.22event shall such bond be less than $10,000 and not more than $250,000. 51.23 Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read: 51.24136A.65 APPROVAL OF DEGREES AND NAME. 51.25 Subdivision 1. Prohibition. No school subject to registration shall grant a degree 51.26unless such degree 51.27shall any school subject to registration use the name "college," "academy," "institute" or 51.28"university" in its name without approval by the office. 51.29 Subd. 1a. Accreditation; requirement. A school must not be registered or 51.30authorized to offer any degree at any level unless the school is accredited by an agency 51.31recognized by the United States Department of Education for purposes of eligibility to 51.32participate in Title IV federal financial aid programs. Any registered school undergoing 51.33institutional accreditation shall inform the office of site visits by the accrediting agency 52.1and provide office staff the opportunity to attend the visits, including any exit interviews. 52.2The institution must provide the office with a copy of the final report upon receipt. 52.3 Subd. 2. Procedures. The office shall establish procedures for approval, including 52.4notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 52.5granted. If a hearing is requested, no disapproval shall take effect until after such hearing. 52.6 Subd. 3. Application. A school subject to registration shall be granted approval to 52.7use the term "college," "academy," "institute" or "university" in its name whether or not it 52.8offers a program leading to a degree, if it was organized, operating and using such term in 52.9its name on or before August 1, 1975, and if it meets the other policies and standards for 52.10approval established by the office. 52.11 Subd. 4. Criteria for approval. (a) A school applying to be registered and to have 52.12its degree or degrees and name approved must substantially meet the following criteria: 52.13 (1) the school has an organizational framework with administrative and teaching 52.14personnel to provide the educational programs offered; 52.15 (2) the school has financial resources sufficient to meet the school's financial 52.16obligations, including refunding tuition and other charges consistent with its stated policy 52.17if the institution is dissolved, or if claims for refunds are made, to provide service to the 52.18students as promised, and to provide educational programs leading to degrees as offered; 52.19 (3) the school operates in conformity with generally accepted budgeting and 52.20accounting procedures, such as the standards adopted by the National Association of 52.21College and University Business Officers, located at 1 Dupont Circle, Washington, D.C., 52.2220036; 52.23 (4) the school provides an educational program leading to the degree it offers; 52.24 (5) the school provides appropriate and accessible library, laboratory, and other 52.25physical facilities to support the educational program offered; 52.26 (6) the school has a policy on freedom or limitation of expression and inquiry for 52.27faculty and students which is published or available on request; 52.28 (7) the school uses only publications and advertisements which are truthful and do 52.29not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 52.30school, its personnel, programs, services, or occupational opportunities for its graduates 52.31for promotion and student recruitment; 52.32 (8) the school's compensated recruiting agents who are operating in Minnesota 52.33identify themselves as agents of the school when talking to or corresponding with students 52.34and prospective students; and 52.35 (9) the school provides information to students and prospective students concerning: 53.1 (i) comprehensive and accurate policies relating to student admission, evaluation, 53.2suspension, and dismissal; 53.3 (ii) clear and accurate policies relating to granting credit for prior education, training, 53.4and experience and for courses offered by the school; 53.5 (iii) current schedules of fees, charges for tuition, required supplies, student 53.6activities, housing, and all other standard charges; 53.7 (iv) policies regarding refunds and adjustments for withdrawal or modification 53.8of enrollment status; and 53.9 (v) procedures and standards used for selection of recipients and the terms of 53.10payment and repayment for any financial aid program. 53.11 (b) An application for degree approval must also include: 53.12 (i) title of degree and formal recognition awarded; 53.13 (ii) location where such degree will be offered; 53.14 (iii) proposed implementation date of the degree; 53.15 (iv) admissions requirements for the degree; 53.16 (v) length of the degree; 53.17 (vi) projected enrollment for a period of five years; 53.18 (vii) the curriculum required for the degree, including course syllabi or outlines; 53.19 (viii) statement of academic and administrative mechanisms planned for monitoring 53.20the quality of the proposed degree; 53.21 (ix) statement of satisfaction of professional licensure criteria, if applicable; 53.22 (x) documentation of the availability of clinical, internship, externship, or practicum 53.23sites, if applicable; and 53.24 (xi) statement of how the degree fulfills the institution's mission and goals, 53.25complements existing degrees, and contributes to the school's viability. 53.26 Subd. 5. Requirements for degree approval. For each degree a school offers to a 53.27student, where the student does not leave Minnesota for the major portion of the program 53.28or course leading to the degree, the school must have: 53.29 (1) qualified teaching personnel to provide the educational programs for each degree 53.30for which approval is sought; 53.31 (2) appropriate educational programs leading to each degree for which approval 53.32is sought; 53.33 (3) appropriate and accessible library, laboratory, and other physical facilities to 53.34support the educational program for each degree for which approval is sought; and 53.35 (4) a rationale showing that degree programs are consistent with the school's mission 53.36and goals. 54.1 Subd. 6. Name. A school may use the term "academy" or "institute" in its name 54.2without meeting any additional requirements. A school may use the term "college" in its 54.3name if it offers at least one program leading to an associate degree. A school may use 54.4the term "university" in its name if it offers at least one program leading to a master's 54.5or doctorate degree. 54.6 Subd. 7. Grandfathered names. Names used before August 1, 2007, by a school, 54.7organized, operating, and using the term "academy," "institute," "college," or "university" 54.8in its name on or before August 1, 2007, may continue using such term whether or not it 54.9offers a program leading to a degree. 54.10 Subd. 8. Conditional approval. The office may grant conditional approval for a 54.11degree or use of a term in its name for a period of less than one year if doing so would be 54.12in the best interests of currently enrolled students or prospective students. 54.13 Subd. 9. Disapproval of registration appeal. If a school's degree or use of a term 54.14in its name is disapproved by the office, the school may request a hearing under chapter 54.1514. The request must be in writing and made to the office within 30 days of the date 54.16the school is notified of the disapproval. 54.17 (a) The office may refuse to renew, revoke, or suspend registration, approval of 54.18a school's degree, or use of a regulated term in its name by giving written notice and 54.19reasons to the school. The school may request a hearing under chapter 14. If a hearing is 54.20requested, no revocation or suspension shall take effect until after the hearing. 54.21 (b) Reasons for revocation or suspension of registration or approval may be for one 54.22or more of the following reasons: 54.23 (1) violating the provisions of sections 136A.615 to 136A.71; 54.24 (2) providing false, misleading, or incomplete information to the office; 54.25 (3) presenting information about the school which is false, fraudulent, misleading, 54.26deceptive, or inaccurate in a material respect to prospective students; or 54.27 (4) refusing to allow reasonable inspection or to supply reasonable information after 54.28a written request by the office has been received. 54.29 Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read: 54.30136A.653 EXEMPTIONS. 54.31 Subdivision 1. Exemption. A school that is subject to licensing by the office under 54.32chapter 141, is exempt from the provisions of sections 54.33The determination of the office as to whether a particular school is subject to regulation 54.34under chapter 141 is final for the purposes of this exemption. 55.1 Subd. 2. Educational program; nonprofit organizations. Educational programs 55.2which are sponsored by a bona fide and nonprofit trade, labor, business, professional 55.3or fraternal organization, which programs are conducted solely for that organization's 55.4membership or for the members of the particular industries or professions served by that 55.5organization, and which are not available to the public on a fee basis, are exempted from 55.6the provisions of sections 55.7 Subd. 3. Educational program; business firms. Educational programs which are 55.8sponsored by a business firm for the training of its employees or the employees of other 55.9business firms with which it has contracted to provide educational services at no cost to the 55.10employees are exempted from the provisions of sections 55.11 Subd. 4. Voluntary submission. Any school or program exempted from the 55.12provisions of sections 55.13may voluntarily submit to the provisions of those sections. 55.14 Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read: 55.15136A.657 EXEMPTION; RELIGIOUS SCHOOLS. 55.16 Subdivision 1. Exemption. Any school or any department or branch of a school (a) 55.17which is substantially owned, operated or supported by a bona fide church or religious 55.18organization; (b) whose programs are primarily designed for, aimed at and attended by 55.19persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 55.20church or religious organization; and (c) whose programs are primarily intended to prepare 55.21its students to become ministers of, to enter into some other vocation closely related to, or 55.22to conduct their lives in consonance with, the particular faith of that church or religious 55.23organization, is exempt from the provisions of sections 55.24 Subd. 2. Limitation. This exemption shall not extend to any school or to any 55.25department or branch of a school which through advertisements or solicitations represents 55.26to any students or prospective students that the school, its aims, goals, missions or 55.27purposes or its programs are different from those described in subdivision 1. This 55.28exemption shall not extend to any school which represents to any student or prospective 55.29student that the major purpose of its programs is to prepare the student for a vocation not 55.30closely related to that particular religious faith, or to provide the student with a general 55.31educational program recognized by other schools or the broader educational, business or 55.32social community as being substantially equivalent to the educational programs offered 55.33by schools or departments or branches of schools which are not exempt from sections 56.1 Subd. 3. Scope. Nothing in sections 56.2adopted pursuant thereto, shall be interpreted as permitting the office to determine the 56.3truth or falsity of any particular set of religious beliefs. 56.4 Subd. 4. Statement required; religious nature. Any degree awarded upon 56.5completion of a religiously exempt program shall include descriptive language to make 56.6the religious nature of the award clear. 56.7 Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read: 56.8136A.66 LIST. 56.9 The office shall maintain a list of 56.10degrees and schools authorized to use the name "college," "academy," "institute" or 56.11"university," and shall make such list available to the public. 56.12 Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read: 56.13136A.67 UNAUTHORIZED REPRESENTATIONS. 56.14 56.15 56.16 56.17employees, may represent in advertising and shall disclose in catalogues, applications, 56.18and enrollment materials that the school is registered with the office 56.19displaying the following statement: "(Name of school) is registered as a private institution 56.20with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71. 56.21Registration is not an endorsement of the institution. Credits earned at the institution 56.22may not transfer to all other institutions." 56.23 Sec. 13. [136A.675] RISK ANALYSIS. 56.24 The office shall develop a set of financial and programmatic evaluation metrics to 56.25aid in the detection of the failure or potential failure of a school to meet the standards 56.26established under sections 136A.61 to 136A.71. These metrics shall include indicators 56.27of financial stability, changes in the senior management or the financial aid and senior 56.28administrative staff of an institution, changes in enrollment, changes in program offerings, 56.29and changes in faculty staffing patterns. The development of financial standards shall use 56.30industry standards as benchmarks. The development of the nonfinancial standards shall 56.31include a measure of trends and dramatic changes in trends or practice. The agency must 56.32specify the metrics and standards for each area and provide a copy to each registered 56.33institution and post them on the agency Web site. The agency shall use regularly reported 57.1data submitted to the federal government or other regulatory or accreditation agencies 57.2wherever possible. The agency may require more frequent data reporting by an institution 57.3to ascertain whether the standards are being met. 57.4 Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read: 57.5136A.68 RECORDS. 57.6 57.7 57.8 57.9 57.10 57.11 57.12record for each student for 50 years from the last date of the student's attendance. A 57.13registered school offering distance instruction to a student located in Minnesota shall 57.14maintain a permanent record for each Minnesota student for 50 years from the last date of 57.15the student's attendance. Records include a student's academic transcript, documents, and 57.16files containing student data about academic credits earned, courses completed, grades 57.17awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 57.18school shall submit a plan that meets the following requirements: 57.19 (1) at least one copy of the records must be held in a secure, fireproof depository 57.20or duplicate records must be maintained off site in a secure location and in a manner 57.21approved by the office; 57.22 (2) an appropriate official must be designated to provide a student with copies of 57.23records or a transcript upon request; 57.24 (3) an alternative method approved by the office of complying with clauses (1) and 57.25(2) must be established if the school ceases to exist; and 57.26 (4) if the school has no binding agreement approved by the office for preserving 57.27student records, a continuous surety bond must be filed with the office in an amount not to 57.28exceed $20,000. The bond shall run to the state of Minnesota. 57.29 Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read: 57.30136A.69 FEES. 57.31 Subdivision 1. Registration fees. The office shall collect reasonable registration 57.32fees that are sufficient to recover, but do not exceed, its costs of administering the 57.33registration program. The office shall charge $1,100 for initial registration fees and $950 57.34for annual renewal fees. 58.1 Subd. 2. Degree level addition fee. The office processing fee for adding a degree 58.2level to an existing program is $2,000 per program. 58.3 Subd. 3. Program addition fee. The office processing fee for adding a program 58.4that represents a significant departure in the objectives, content, or method of delivery of 58.5programs that are currently offered by the school is $500 per program. 58.6 Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit 58.7or outside consultant is necessary to review or evaluate any new or revised program, the 58.8office shall be reimbursed for the expenses incurred related to the review as follows: 58.9 (1) $300 for the team base fee or for a paper review conducted by a consultant if the 58.10office determines that a fact-finding visit is not required; 58.11 (2) $300 for each day or part thereof on site per team member; and 58.12 (3) the actual cost of customary meals, lodging, and related travel expenses incurred 58.13by team members. 58.14 Subd. 5. Modification fee. The fee for modification of any existing program is 58.15$100 and is due if there is: 58.16 (1) an increase or decrease of 25 percent or more from the original date of program 58.17approval, in clock hours, credit hours, or calendar length of an existing program; 58.18 (2) a change in academic measurement from clock hours to credit hours or vice 58.19versa; or 58.20 (3) an addition or alteration of courses that represent a 25 percent change or more in 58.21the objectives, content, or methods of delivery. 58.22 Sec. 16. [136A.705] PENALTY. 58.23 The director may assess fines for violations of a provision of sections 136A.615 to 58.24136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 58.25shall be a separate violation and fines shall not exceed $500 per day per violation. 58.26Amounts received under this section must be deposited in the special revenue fund and 58.27are appropriated in fiscal years 2008 and 2009 for the purposes in sections 136A.615 to 58.28136A.71. 58.29 Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read: 58.30136A.71 INJUNCTION. 58.31 Upon application of the attorney general the district courts shall have jurisdiction to 58.32enjoin any violations of sections 58.33 Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read: 59.1 Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 59.2"office" means the Minnesota Office of Higher Education. 59.3 Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read: 59.4 Subd. 5. School. "School" means any person, within or outside the state, who 59.5maintains, advertises, administers, solicits for, or conducts any program 59.6 59.7 59.8institution under sections 136A.615 to 136A.71 and is not specifically exempted by 59.9section 59.10 Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read: 59.11 Subdivision 1. Required. A school must not maintain, advertise, solicit for, 59.12administer, or conduct any program in Minnesota without first obtaining a license from 59.13the office. 59.14 Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read: 59.15 Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 59.16conducts, solicits for, or advertises within the state of Minnesota any program, unless the 59.17applicant files with the office a continuous corporate surety bond written by a company 59.18authorized to do business in Minnesota conditioned upon the faithful performance of all 59.19contracts and agreements with students made by the applicant. 59.20 (b) The amount of the surety bond shall be ten percent of the preceding year's gross 59.21income from student tuition, fees, and other required institutional charges, but in no event 59.22less than $10,000 nor greater than $250,000, except that a school may deposit a greater 59.23amount at its own discretion. A school in each annual application for licensure must 59.24compute the amount of the surety bond and verify that the amount of the surety bond 59.25complies with this subdivision, unless the school maintains a surety bond equal to at least 59.26$250,000. A school that operates at two or more locations may combine gross income 59.27from student tuition, fees, and other required institutional charges for all locations for the 59.28purpose of determining the annual surety bond requirement. The gross tuition and fees 59.29used to determine the amount of the surety bond required for a school having a license for 59.30the sole purpose of recruiting students in Minnesota shall be only that paid to the school 59.31by the students recruited from Minnesota. 59.32 (c) The bond shall run to the state of Minnesota and to any person who may have a 59.33cause of action against the applicant arising at any time after the bond is filed and before it 60.1is canceled for breach of any contract or agreement made by the applicant with any student. 60.2The aggregate liability of the surety for all breaches of the conditions of the bond shall not 60.3exceed the principal sum deposited by the school under paragraph (b). The surety of any 60.4bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 60.5of liability for any breach of condition occurring after the effective date of cancellation. 60.6 (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 60.7sum equal to the amount of the required surety bond in cash, or securities as may be 60.8legally purchased by savings banks or for trust funds in an aggregate market value equal 60.9to the amount of the required surety bond. 60.10 (e) Failure of a school to post and maintain the required surety bond or deposit under 60.11paragraph (d) 60.12 Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read: 60.13 Subd. 7. Minimum standards. A license shall be issued if the office first 60.14determines: 60.15 (1) that the applicant has a sound financial condition with sufficient resources 60.16available to: 60.17 (i) meet the school's financial obligations; 60.18 (ii) refund all tuition and other charges, within a reasonable period of time, in the 60.19event of dissolution of the school or in the event of any justifiable claims for refund against 60.20the school by the student body; 60.21 (iii) provide adequate service to its students and prospective students; and 60.22 (iv) maintain and support the school; 60.23 (2) that the applicant has satisfactory facilities with sufficient tools and equipment 60.24and the necessary number of work stations to prepare adequately the students currently 60.25enrolled, and those proposed to be enrolled; 60.26 (3) that the applicant employs a sufficient number of qualified teaching personnel to 60.27provide the educational programs contemplated; 60.28 (4) that the school has an organizational framework with administrative and 60.29instructional personnel to provide the programs and services it intends to offer; 60.30 (5) that the premises and conditions under which the students work and study are 60.31sanitary, healthful, and safe, according to modern standards; 60.32 (6) that the quality and content of each occupational course or program of study 60.33provides education and adequate preparation to enrolled students for entry level positions 60.34in the occupation for which prepared; 61.1 (7) that the living quarters which are owned, maintained, recommended, or approved 61.2by the applicant for students are sanitary and safe; 61.3 (8) that the contract or enrollment agreement used by the school complies with 61.4the provisions in section 61.5 (9) that contracts and agreements do not contain a wage assignment provision or a 61.6confession of judgment clause; and 61.7 (10) that there has been no adjudication of fraud or misrepresentation in any 61.8criminal, civil, or administrative proceeding in any jurisdiction against the school or its 61.9owner, officers, agents, or sponsoring organization. 61.10 Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read: 61.11 Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 61.12a school, the school shall furnish to the office a catalog, brochure, or electronic display 61.13including: 61.14 (1) identifying data, such as volume number and date of publication; 61.15 (2) name and address of the school and its governing body and officials; 61.16 (3) a calendar of the school showing legal holidays, beginning and ending dates of 61.17each course quarter, term, or semester, and other important dates; 61.18 (4) the school policy and regulations on enrollment including dates and specific 61.19entrance requirements for each program; 61.20 (5) the school policy and regulations about leave, absences, class cuts, make-up 61.21work, tardiness, and interruptions for unsatisfactory attendance; 61.22 (6) the school policy and regulations about standards of progress for the student 61.23including the grading system of the school, the minimum grades considered satisfactory, 61.24conditions for interruption for unsatisfactory grades or progress, a description of any 61.25probationary period allowed by the school, and conditions of reentrance for those 61.26dismissed for unsatisfactory progress; 61.27 (7) the school policy and regulations about student conduct and conditions for 61.28dismissal for unsatisfactory conduct; 61.29 (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 61.30activities, laboratory fees, service charges, rentals, deposits, and all other charges; 61.31 (9) the school policy and regulations, including an explanation of section 61.32about refunding tuition, fees, and other charges if the student does not enter the program, 61.33withdraws from the program, or the program is discontinued; 61.34 (10) a description of the available facilities and equipment; 62.1 (11) a course outline syllabus for each course offered showing course objectives, 62.2subjects or units in the course, type of work or skill to be learned, and approximate time, 62.3hours, or credits to be spent on each subject or unit; 62.4 (12) the school policy and regulations about granting credit for previous education 62.5and preparation; 62.6 (13) a notice to students relating to the transferability of any credits earned at the 62.7school to other institutions; 62.8 (14) a procedure for investigating and resolving student complaints; and 62.9 62.10 A school that is exclusively a distance education school is exempt from clauses 62.11(3) and (5). 62.12 Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read: 62.13 Subd. 10. Placement records. (a) Before a license is 62.14that offers, advertises or implies a placement service, the school shall file with the office 62.15for the past year and thereafter at reasonable intervals determined by the office, a certified 62.16copy of the school's placement record, containing a list of graduates, a description of their 62.17jobs, names of their employers, and other information as the office may prescribe. 62.18 (b) Each school that offers a placement service shall furnish to each prospective 62.19student, upon request, prior to enrollment, written information concerning the percentage 62.20of the previous year's graduates who were placed in the occupation for which prepared or 62.21in related employment. 62.22 Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read: 62.23 Subd. 12. Permanent records. A school licensed under this chapter and located 62.24in Minnesota shall maintain a permanent record for each student for 50 years from the 62.25last date of the student's attendance. A school licensed under this chapter and offering 62.26distance instruction to a student located in Minnesota shall maintain a permanent record 62.27for each Minnesota student for 50 years from the last date of the student's attendance. 62.28Records include school transcripts, documents, and files containing student data about 62.29academic credits earned, courses completed, grades awarded, degrees awarded, and 62.30periods of attendance. To preserve permanent records, a school shall submit a plan that 62.31meets the following requirements: 62.32 (1) at least one copy of the records must be held in a secure, fireproof depository; 62.33 (2) an appropriate official must be designated to provide a student with copies of 62.34records or a transcript upon request; 63.1 (3) an alternative method, approved by the office, of complying with clauses (1) and 63.2(2) must be established if the school ceases to exist; and 63.3 (4) a continuous surety bond must be filed with the office in an amount not to exceed 63.4$20,000 if the school has no binding agreement approved by the office, for preserving 63.5student records 63.6to the state of Minnesota. 63.7 Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read: 63.8 Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 63.9renewal licensure application is: 63.10 (1) for a category A school, as determined by the office, the fee is $865 if the school 63.11offers one program or $1,150 if the school offers two or more programs; and 63.12 (2) for a category B or C school, as determined by the office, the fee is $430 if the 63.13school offers one program or $575 if the school offers two or more programs. 63.14 (b) If a license renewal application is not received by the office by the close of 63.15business at least 60 days before the expiration of the current license, a late fee of $100 63.16per business day, not to exceed $3,000, shall be assessed. 63.17 Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read: 63.18 Subd. 2. Contract information. A contract or enrollment agreement used by a 63.19school must include at least the following: 63.20 (1) the name and address of the school, clearly stated; 63.21 (2) a clear and conspicuous disclosure that the agreement is a legally binding 63.22instrument upon written acceptance of the student by the school unless canceled under 63.23section 63.24 (3) the school's cancellation and refund policy that shall be clearly and conspicuously 63.25entitled "Buyer's Right to Cancel"; 63.26 (4) a clear statement of total cost of the program including tuition and all other 63.27charges; 63.28 (5) the name and description of the program, including the number of hours or 63.29credits of classroom instruction, or distance instruction, that shall be included; and 63.30 (6) a clear and conspicuous explanation of the form and means of notice the student 63.31should use in the event the student elects to cancel the contract or sale, the effective 63.32date of cancellation, and the name and address of the seller to which the notice should 63.33be sent or delivered. 64.1The contract or enrollment agreement must not include a wage assignment provision or a 64.2confession of judgment clause. 64.3 Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read: 64.4 Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 64.5on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 64.6carried, it shall occur on the date the notice is delivered to the school. If a student has not 64.7attended 64.8indicate an intent to continue in school or otherwise making arrangements concerning the 64.9absence, the student is considered to have withdrawn from school for all purposes as of 64.10the student's last documented date of attendance. 64.11 Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read: 64.12 Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 64.13promissory instrument received as payment of tuition or other charge prior to completion 64.14of 50 percent of the program 64.15by assignment to purchasers who shall be subject to all defenses available against the 64.16school named as payee. 64.17 Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read: 64.18 Subdivision 1. 64.19 64.20 64.21school, agent, or solicitor may 64.22in catalogues, applications, and enrollment materials that the school 64.23 64.24statement: 64.25"(Name of school) is licensed as a private career school with the Minnesota Office of 64.26Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 64.27institution may not transfer to all other institutions. 64.28 64.29 Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read: 64.30141.32 PENALTY. 64.31 64.32 65.1 65.2 65.3violations of a provision of this chapter. Each day's failure to comply with a provision 65.4of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed 65.5$500 per day per violation. Amounts received under this section must be deposited in the 65.6special revenue fund and are appropriated in fiscal years 2008 and 2009 for the purposes 65.7of this chapter. 65.8 Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read: 65.9141.35 EXEMPTIONS. 65.10 Sections 65.11 (1) public postsecondary institutions; 65.12 (2) 65.13to 65.14 65.15 65.16 (3) schools of nursing accredited by the state Board of Nursing or an equivalent 65.17public board of another state or foreign country; 65.18 (4) private schools complying with the requirements of section 65.194 65.20 (5) courses taught to students in a valid apprenticeship program taught by or 65.21required by a trade union; 65.22 (6) schools exclusively engaged in training physically or mentally disabled persons 65.23for the state of Minnesota; 65.24 (7) schools licensed by boards authorized under Minnesota law to issue licenses; 65.25 (8) schools and educational programs, or training programs, contracted for by 65.26persons, firms, corporations, government agencies, or associations, for the training of their 65.27own employees, for which no fee is charged the employee; 65.28 (9) schools engaged exclusively in the teaching of purely avocational, recreational, 65.29or remedial subjects as determined by the office; 65.30 (10) 65.31 65.32 65.33fraternal organization, solely for that organization's membership; 65.34 65.35under section 66.1the purposes of this clause, "fine arts" means activities resulting in artistic creation or 66.2artistic performance of works of the imagination which are engaged in for the primary 66.3purpose of creative expression rather than commercial sale or employment. In making 66.4this determination the office may seek the advice and recommendation of the Minnesota 66.5Board of the Arts; 66.6 66.7requirements for licensure or certification in a profession, that have been approved by 66.8a legislatively or judicially established board or agency responsible for regulating the 66.9practice of the profession, and that are offered exclusively to an individual practicing 66.10the profession; 66.11 66.12undergraduate, graduate, postgraduate, or occupational licensing and occupational 66.13entrance examinations; 66.14 66.15instruction that are not part of the curriculum for an occupation or entry level employment; 66.16 66.17development, modeling, or acting; 66.18 66.19individual student, that are not part of the curriculum for an occupation or are not intended 66.20to prepare a person for entry level employment; and 66.21 66.22office, engaged exclusively in offering distance instruction that are located in and 66.23regulated by other states or jurisdictions. 66.24 Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS. 66.25 Subdivision 1. Exemption. Any school or any department or branch of a school: 66.26 (1) which is substantially owned, operated, or supported by a bona fide church 66.27or religious organization; 66.28 (2) whose programs are primarily designed for, aimed at, and attended by persons 66.29who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 66.30religious organization; and 66.31 (3) whose programs are primarily intended to prepare its students to become 66.32ministers of, to enter into some other vocation closely related to, or to conduct their lives 66.33in consonance with the particular faith of that church or religious organization, 66.34is exempt from the provisions of sections 141.21 to 141.32. 67.1 Subd. 2. Limitations. (a) An exemption shall not extend to any school, department 67.2or branch of a school, or program of a school which through advertisements or solicitations 67.3represents to any students or prospective students that the school, its aims, goals, missions, 67.4purposes, or programs are different from those described in subdivision 1. 67.5 (b) An exemption shall not extend to any school which represents to any student or 67.6prospective student that the major purpose of its programs is to: 67.7 (1) prepare the student for a vocation not closely related to that particular religious 67.8faith; or 67.9 (2) provide the student with a general educational program recognized by other 67.10schools or the broader educational, business, or social community as being substantially 67.11equivalent to the educational programs offered by schools or departments or branches of 67.12schools which are not religious in nature and are not exempt from chapter 141 and from 67.13rules adopted pursuant under this chapter. 67.14 Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be 67.15interpreted as permitting the office to determine the truth or falsity of any particular set 67.16of religious beliefs. 67.17 Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other 67.18formal recognition awarded upon completion of any religiously exempt program shall 67.19include such descriptive language as to make the religious nature of the award clear. 67.20 Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS. 67.21 Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71, 67.22shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes, 67.23chapter 141, that qualify for private institution registration after July 1, 2007, shall apply 67.24for and complete the process for registration prior to the expiration of their current private 67.25career school license. Schools currently registered as private institutions pursuant to 67.26Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private 67.27career school license after August 1, 2007, shall apply for and complete the process for 67.28licensure prior to the expiration of the current registration, but in any event no later than 67.29December 31, 2007. The office is authorized to extend existing license or registration for a 67.30reasonable period of time to allow for the completion of the new processes when necessary.
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