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S.F. No. 1989, 2nd Engrossment - 85th Legislative Session (2007-2008) Posted on Mar 22, 2007
1.2relating to higher education; appropriating money for higher education and
1.3related purposes to the Minnesota Office of Higher Education, the Board of 1.4Trustees of the Minnesota State Colleges and Universities, the board of Regents 1.5of the University of Minnesota, and the Mayo Clinic, with certain conditions; 1.6requiring certain studies; making technical changes; eliminating certain report 1.7requirements; permitting certain interest rate savings and other agreements; 1.8requiring summary statistics in required reports; repealing certain data sharing 1.9and collecting requirements; modifying financial aid programs; establishing the 1.10Minnesota GI bill program; regulating private higher education institutions; 1.11providing penalties;amending Minnesota Statutes 2006, sections 13.322, 1.12subdivision 3; 135A.01; 135A.031, subdivisions 1, 7; 135A.034, subdivision 1.131; 135A.14, subdivision 1; 135A.52, subdivisions 1, 2; 136A.01, subdivision 1.142; 136A.031, subdivision 5; 136A.0411; 136A.08, subdivision 7; 136A.101, 1.15subdivisions 4, 5a; 136A.121, subdivisions 6, 7a, by adding a subdivision; 1.16136A.125, subdivisions 2, 4; 136A.15, subdivisions 1, 6; 136A.16, subdivisions 1.171, 2, 5, 8, 9, 10, by adding a subdivision; 136A.17, subdivision 1; 136A.1701, 1.18subdivisions 1, 2, 5; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.62, 1.19subdivision 3; 136A.63; 136A.65, subdivision 1, by adding a subdivision; 1.20136A.653; 136A.657, subdivisions 1, 2, 3, by adding a subdivision; 136A.66; 1.21136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3, 6; 1.22136F.02, subdivisions 1, 2; 136F.03, subdivision 3; 136F.42, subdivision 1; 1.23136F.58; 136F.70, by adding a subdivision; 136F.71, subdivision 2, by adding 1.24a subdivision; 136G.11, subdivision 5; 137.0245, subdivision 4; 137.0246, 1.25subdivision 2; 141.21, subdivisions 1a, 5; 141.25, subdivisions 1, 5, 7, 9, 10, 12; 1.26141.255, subdivision 2; 141.265, subdivision 2; 141.271, subdivisions 10, 12; 1.27141.28, subdivision 1; 141.32; 141.35; 197.775, subdivision 4; proposing coding 1.28for new law in Minnesota Statutes, chapters 135A; 136A; 141; 197; repealing 1.29Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 5, 6; 135A.032; 1.30135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; 136A.1702; 1.31136A.61; Laws 2001, First Special Session chapter 1, article 1, sections 3, 1.32subdivision 3; 4, subdivision 5. 1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
2.5summarize direct appropriations, by fund, made in this article. 2.11 Subd. 2. Summary By Agency - All Funds. The amounts shown in this subdivision 2.12summarize direct appropriations, by agency, made in this article.
2.26agencies and for the purposes specified in this article. The appropriations are from the 2.27general fund, or another named fund, and are available for the fiscal years indicated 2.28for each purpose. The figures "2008" and "2009" used in this article mean that the 2.29appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.30June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.31year 2009. "The biennium" is fiscal years 2008 and 2009. Appropriations for the fiscal 2.32year ending June 30, 2007, are effective the day following final enactment.
3.5purpose are specified in the following 3.6subdivisions.
3.9either year is insufficient, the appropriation 3.10for the other year is available for it. 3.11For the biennium, the tuition and fee 3.12maximum shall be $9,838 for students 3.13enrolled in four-year programs and $6,836 3.14for students enrolled in two-year programs. 3.15This appropriation sets the living and 3.16miscellaneous expense allowance at $5,550 3.17each year.
3.20spouses and children of veterans as provided 3.21under Minnesota Statutes, section 197.791. 3.22If the appropriation in this subdivision for 3.23either year is insufficient, the appropriation 3.24for the other year is available for it. 3.25Of this appropriation, $152,000 the first 3.26year and $104,000 the second year are for 3.27the administrative costs of operating this 3.28program. $104,000 is added to the agency's 3.29base funding for program administration.
3.32benefits under Minnesota Statutes, section 3.33299A.45, to dependent children under age 4.123 and the spouses of public safety officers 4.2killed in the line of duty.
4.5either year is insufficient, the appropriation 4.6for the other year is available to meet 4.7reciprocity contract obligations.
4.18each year may be used for administrative 4.19expenses for the program under Minnesota 4.20Statutes, section
4.23student and parent information and the get 4.24ready outreach program. 4.25$150,000 each year is for grants to increase 4.26campus-community collaboration and service 4.27learning statewide. For every $1 in state 4.28funding, grant recipients must contribute $2 4.29in campus or community-based support. 4.30$250,000 in fiscal year 2008 is for a grant to 4.31Augsburg College for the Step UP program, 4.32which provides educational opportunities 5.1to chemically dependent students. This is a 5.2onetime appropriation. 5.3$150,000 each year is for transfer to the 5.4University of Minnesota to establish a 5.5Dakota language program. 5.6$100,000 each year must be transferred to 5.7the Loan Repayment Assistance Program, 5.8Inc., for loan repayment assistance awards 5.9to attorneys who enter public interest law to 5.10ensure that low-income and disadvantaged 5.11populations have access to competent legal 5.12counsel. 5.13$50,000 in fiscal year 2008 is for the 5.14Washington Center for Internships and 5.15Academic Seminars for a pilot program 5.16for scholarships for students enrolling in a 5.17Minnesota four-year college or university 5.18beginning in the fall semester of 2007. 5.19The appropriation shall be available only 5.20on a dollar-for-dollar match basis for 5.21funds received from nonstate sources. 5.22The Washington Center for Internships 5.23and Academic Seminars must work with 5.24Minnesota Colleges and Universities to 5.25ensure that the scholarships will go to 5.26economically disadvantaged Minnesota 5.27students, students with demonstrated need of 5.28financial assistance, and students traditionally 5.29underrepresented in higher education, and 5.30will work to ensure racial, ethnic, and gender 5.31diversity, as well as urban/rural balance. This 5.32is a onetime appropriation.
6.2residency program. This appropriation 6.3shall be used to support up to 18 resident 6.4physicians each year in family practice at 6.5United Family Medicine residency programs 6.6and shall prepare doctors to practice family 6.7care medicine in underserved rural and 6.8urban areas of the state. It is intended that 6.9this program will improve health care in 6.10underserved communities, provide affordable 6.11access to appropriate medical care, and 6.12manage the treatment of patients in a more 6.13cost-effective manner. The funding base for 6.14this program is $410,000 in fiscal year 2010 6.15and $430,000 in fiscal year 2011.
6.18appropriations from which state employee 6.19compensation is paid from any fund, include 6.20an amount sufficient to fund compensation 6.21increases of at least 3.25 percent of the 6.222007 compensation base for the first year, 6.23compounded at the rate of 3.25 percent for 6.24the second year. This amount must be used 6.25for that purpose and no other.
6.28does not cancel, but is available for the 6.29second year.
6.32may transfer unencumbered balances from 6.33the appropriations in this section to the state 6.34grant appropriation, the interstate tuition 7.1reciprocity appropriation, the child care 7.2grant appropriation, the state work study 7.3appropriation, the public safety officers' 7.4survivors appropriation, and the Minnesota 7.5college savings plan appropriation. Transfers 7.6from the child care or state work study 7.7appropriations may only be made to the 7.8extent there is a projected surplus in the 7.9appropriation. A transfer may be made 7.10only with the prior written approval of the 7.11commissioner of finance and prior written 7.12notice to the chairs of the senate and house 7.13committees with jurisdiction over higher 7.14education finance.
7.20purpose are specified in the following 7.21subdivisions.
7.24Higher Education to provide educational 7.25programs and academic support services to 7.26remote regions in northeastern Minnesota. 7.27Cook County Higher Education must 7.28continue to provide information to the Board 7.29of Trustees of the Minnesota State Colleges 7.30and Universities on the number of students 7.31served, credit hours delivered, and services 7.32provided to students. 7.33This appropriation includes amounts 7.34for inflation; funding for technology 7.35infrastructure improvements to deliver 8.1more online programs and services, protect 8.2sensitive data and enhance computer network 8.3security, increase online learning, improve 8.4student services, and improve management 8.5of business processes; and funding for 8.6initiatives to recruit and retain students 8.7traditionally underrepresented in higher 8.8education to help prepare students for 8.9college, encourage their enrollment, and 8.10provide services that enable them to continue 8.11successfully to graduation. Any amounts 8.12allocated to initiatives to recruit and retain 8.13students traditionally underrepresented 8.14in higher education must be used to fund 8.15activities determined by the Board of 8.16Trustees to be best practices for the stated 8.17purpose. 8.18If the Board of Trustees decides to implement 8.19other "Strategic Advancements" initiatives, 8.20funding must be from internal reallocation 8.21of existing resources. 8.22$3,923,000 in fiscal year 2008 and 8.23$4,079,000 in fiscal year 2009 are for 8.24elimination of nonresident undergraduate 8.25tuition at community colleges, technical 8.26colleges, and consolidated community and 8.27technical colleges under Minnesota Statutes, 8.28section 136F.70, subdivision 1a. 8.29Any amounts in the base budget allocated 8.30to pay competitive compensation under 8.31Laws 2005, chapter 107, article 1, section 3, 8.32subdivision 2, must be used only in efforts to 8.33recruit or retain quality faculty. 8.34$200,000 of this appropriation in fiscal year 8.352008 must be provided to one campus in 9.1the system, that has a full-time equivalent 9.2enrollment of at least 1,500 students, for 9.3the start-up costs of a pilot textbook rental 9.4program. The rental program must be 9.5operated to become self-sustaining. The 9.6campus is authorized to adopt policies and 9.7procedures to implement the program. The 9.8campus shall, by January 31, 2010, report to 9.9the Board of Trustees, the Minnesota Office 9.10of Higher Education, and the senate and 9.11house committees with primary jurisdiction 9.12over higher education policy and finance on 9.13progress towards implementing the program. 9.14The report shall evaluate the program 9.15including, but not limited to, the following 9.16information: 9.17(1) policies and procedures established to implement the program; 9.18(2) cost-savings achieved for students renting textbooks; 9.19(3) student satisfaction with and participation in the program; 9.20(4) faculty satisfaction with the program; and 9.21(5) administrative costs associated with implementing the program.
9.30purpose are specified in the following 9.31subdivisions.
9.34advance the University of Minnesota's efforts 9.35to sustain quality and competitiveness, 10.1including funds to support a general 10.2compensation increase for University 10.3of Minnesota employees; funding for the 10.4"Advancing Education" initiatives to improve 10.5undergraduate writing, expand academic 10.6advising, offer undergraduate research 10.7opportunities, increase financial support for 10.8graduate students, and invest in libraries; 10.9and funding for investments in technology 10.10and infrastructure to enhance research 10.11capabilities, security, basic classroom 10.12technology, and student services. 10.13This appropriation also includes 10.14amounts to support the University of 10.15Minnesota's "Creating Minnesota's Future" 10.16initiatives, including funds for competitive 10.17compensation to attract and retain quality 10.18faculty and staff; funding for science and 10.19engineering initiatives to address Minnesota's 10.20challenging problems in energy, health, 10.21the environment, and medicine through 10.22innovative, cross-disciplinary research; 10.23funding for initiatives in environment, 10.24agricultural systems, and renewable energy 10.25to address dependence on fossil-based 10.26fuels, ensure food safety, and protect animal 10.27and human health; and funding for health 10.28workforce and clinical sciences initiatives to 10.29address the continuing shortage of advanced 10.30practice nurses and a critical shortage of 10.31allied health professionals. 10.32$10,000,000 in fiscal year 2010 and 10.33$10,000,000 in fiscal year 2011 are included 10.34in the funding base for the University of 10.35Minnesota for the collaborative research 10.36partnership between the University of 11.1Minnesota and the Mayo Foundation for 11.2research in biotechnology and medical 11.3genomics. The annual report in Laws 2005, 11.4First Special Session chapter 1, article 3, 11.5section 2, must continue to be submitted.
11.8access fund.
11.12Minnesota Extension Service. This 11.13appropriation includes funding to promote 11.14alternative livestock research and outreach 11.15and to promote sustainable and organic 11.16agriculture research and education.
11.19and $346,000 in 2009 are to support up to 11.2012 resident physicians each year in the St. 11.21Cloud Hospital family practice residency 11.22program. The program must prepare doctors 11.23to practice primary care medicine in the rural 11.24areas of the state. The legislature intends 11.25this program to improve health care in rural 11.26communities, provide affordable access to 11.27appropriate medical care, and manage the 11.28treatment of patients in a more cost-effective 11.29manner. 11.30The remainder of this appropriation is for 11.31the rural physicians associates program, the 11.32Veterinary Diagnostic Laboratory, health 11.33sciences research, dental care, and the 11.34Biomedical Engineering Center.
12.3youth mathematics program.
12.6money, industrial relations education, Natural 12.7Resources Research Institute, Center for 12.8Urban and Regional Affairs, Bell Museum of 12.9Natural History, and the Humphrey exhibit. 12.10This appropriation includes an additional 12.11$150,000 each year for industrial relations 12.12education. The Board of Regents of the 12.13University of Minnesota is requested to 12.14refrain from implementing corresponding 12.15reductions in funding for this purpose.
12.19purpose are specified in the following 12.20subdivisions.
12.23each year for each student who is a resident 12.24of Minnesota. The appropriation may be 12.25transferred between years of the biennium to 12.26accommodate enrollment fluctuations. The 12.27funding base for this program is $595,000 in 12.28fiscal year 2010 and $625,000 in fiscal year 12.292011. 12.30It is intended that during the biennium the 12.31Mayo Foundation use the capitation money 12.32to increase the number of doctors practicing 12.33in rural areas in need of doctors.
13.4for up to 27 residents each year. The funding 13.5base for this program is $615,000 in fiscal 13.6year 2010 and $645,000 in fiscal year 2011. 13.7 Sec. 7. STATE GRANT PROGRAM STUDY. 13.8 The Minnesota Office of Higher Education must conduct an analysis and evaluation 13.9of the state grant program to provide information to the legislature concerning the role of 13.10the program in promoting affordable access to higher education in Minnesota, including 13.11promoting access for students traditionally underrepresented in higher education. 13.12Whenever possible, the analysis should include the distributional effects, by income 13.13quintile, of state grant program parameters on students and families. The analysis and 13.14evaluation must include: 13.15 (1) evaluation of the assigned student share compared to the current and future 13.16income of a student, and analysis of the number of hours a student must work to meet the 13.17assigned student share without borrowing; 13.18 (2) evaluation of the assigned family contribution, how it is determined under the 13.19federal needs analysis, and how it compares to expectations of families in other public 13.20programs; 13.21 (3) analysis of the ways that students and families pay the assigned student share and 13.22the assigned family contribution; 13.23 (4) analysis of the recognized cost of attendance compared to actual attendance 13.24costs and the ability of individuals and families at various income levels in Minnesota to 13.25pay the cost of attendance; 13.26 (5) analysis of the actual living and miscellaneous expenses of students, with 13.27particular attention to differences between traditional and nontraditional students, and 13.28comparison to the amount currently applied in the state grant formula; and 13.29 (6) analysis of other parameters of the program considered relevant by the office, 13.30including prorating the state grant amount instead of the budget for the cost of attendance 13.31and changing the definition of full-time enrollment. 13.32 Whenever possible, the report must include cost estimates and information on how 13.33recommended changes affect students at various income levels and at different higher 13.34education institutions in Minnesota. 14.1The Minnesota Office of Higher Education also shall assess the feasibility of 14.2expanding the eligibility for state grants to include graduate students pursuing degree 14.3programs deemed to be important to the workforce needs of the state. The Minnesota 14.4Office of Higher Education must report their findings and make recommendations to the 14.5committees in the house and senate with primary jurisdiction over higher education policy 14.6and finance by January 31, 2008, on options to enhance the targeting of financial aid 14.7to state grant recipients. 14.8 Sec. 8. POSTSECONDARY EDUCATION PARTICIPATION STUDY. 14.9The Minnesota Office of Higher Education shall, by January 15, 2008, report to the 14.10house and senate committees with jurisdiction over higher education policy and finance 14.11on participation in postsecondary education by income, and persistence and graduation 14.12rates of state grant recipients compared to students who did not receive state grants. The 14.13Minnesota Office of Higher Education is authorized to match individual student data from 14.14the student record enrollment database with individual student data from the state grant 14.15database on data elements necessary to perform the study. 14.16 Sec. 9. LOAN REPAYMENT PROGRAM REPORT. 14.17The Minnesota Office of Higher Education must examine, and make 14.18recommendations regarding, the feasibility of implementing loan repayment programs 14.19for professions deemed to be of economic or social importance to the state. The report 14.20must consider the availability of existing public and private loan repayment programs and 14.21the need and ability of the state to promote economic growth or stability in particular 14.22professions with additional resources. The report must be submitted to the house and 14.23senate committees with primary jurisdiction over higher education policy and finance by 14.24January 31, 2008. 14.25 Sec. 10. INDIAN SCHOLARSHIPS. 14.26The Minnesota Office of Higher Education shall study and make recommendations 14.27to the legislature regarding the feasibility of transferring the American Indian Scholarship 14.28Program under Minnesota Statutes, section 124D.84, from the Department of Education to 14.29the Minnesota Office of Higher Education. The report must be submitted to the house 14.30and senate committees with primary jurisdiction over education finance and policy by 14.31January 31, 2008. 14.32 Sec. 11. NONRESIDENT UNDERGRADUATE TUITION PLANS. 15.1The Board of Trustees of the Minnesota State Colleges and Universities must 15.2prepare to eliminate undergraduate tuition rates that are different for nonresident students 15.3than for resident students by the beginning of the 2009-2010 academic term, except 15.4undergraduate tuition rates for a resident of a state that has entered into a reciprocity 15.5agreement under Minnesota Statutes, section 136A.08, beginning at community and 15.6technical colleges. The board must, by January 15, 2008, submit the plan to the chairs of 15.7the legislative committees with jurisdiction over higher education finance. 15.8 Sec. 12. PROMOTING STUDENT SUCCESS IN POSTSECONDARY 15.9EDUCATION. 15.10 The Higher Education Advisory Council (HEAC) shall study and make 15.11recommendations regarding (1) the role of merit and need-based scholarships and other 15.12mechanisms in improving the participation and rate of student success in rigorous high 15.13school courses; and (2) mechanisms to facilitate the subsequent access to, persistence in, 15.14and completion of postsecondary degrees by students. The HEAC may collaborate with 15.15the P-16 Education Partnership in developing its recommendations. The Minnesota Office 15.16of Higher Education shall provide support, as needed, to complete the study. In completing 15.17the study and developing recommendations, the following issues shall be addressed: 15.18 (i) the parameters used to identify a course as being rigorous; 15.19 (ii) the curricular prerequisites of courses identified to be rigorous; 15.20 (iii) the extent to which rigorous courses are available to high school students 15.21throughout the state; 15.22 (iv) the capacity of high schools to provide rigorous courses to students; 15.23 (v) the capacity of high schools to collaborate with postsecondary institutions 15.24to offer rigorous courses; 15.25 (vi) the programmatic and financial resources required to increase the participation 15.26of students in rigorous courses; 15.27 (vii) the role of college awareness programs and postsecondary institution outreach 15.28efforts in informing students and families about the importance of adequate preparation 15.29for all postsecondary education endeavors; 15.30 (viii) the interventions required, and entities responsible for, assuring students have 15.31completed the prerequisite subject matter required to enroll in rigorous courses; 15.32 (ix) the programmatic and financial resources required to assure the retention 15.33and successful degree completion of low-income students and students traditionally 15.34underrepresented in higher education; and 16.1 (x) other issues deemed critical to the preparation for and success of students in 16.2postsecondary education. 16.3The Higher Education Advisory Council shall, by December 15, 2007, make 16.4recommendations to the senate and house committees with jurisdiction over higher 16.5education policy and finance regarding the strategies that best inform and prepare students 16.6for postsecondary education and work and career choices, with particular attention to 16.7strategies targeted to low-income students and students traditionally underrepresented 16.8in higher education. 16.9 Sec. 13. TEXTBOOK RENTAL STUDY. 16.10The Board of Trustees of the Minnesota State Colleges and Universities shall 16.11study and explore rental programs, lease programs, or other programs available for 16.12course material. The board shall consult with students, faculty, administrators, bookstore 16.13operators and managers, and staff members from the office of the chancellor. The Board 16.14of Trustees shall approve and release a public report on its findings and recommendations 16.15to the chairs of the committees of the legislature with primary jurisdiction over higher 16.16education policy and finance prior to February 14, 2008. 16.17 Sec. 14. EDUCATIONAL STRATEGIES. 16.18During the biennium ending June 30, 2008, the Minnesota Office of Higher 16.19Education shall work with postsecondary institutions to develop educational materials 16.20based upon the findings of the Minnesota Textbook Advisory Task Force recommendations 16.21and other relevant information; convene and sponsor meetings and workshops; and 16.22provide educational materials for faculty, students, administrators, institutions, bookstores, 16.23and publishers in order to educate all interested parties on strategies for reducing the costs 16.24of course materials for students attending postsecondary institutions. For the purpose of 16.25this section, "postsecondary institution" means all institutions located in the state eligible 16.26to participate in the state grant program under Minnesota Statutes, section 136A.121. 16.27 Sec. 15. MESABI RANGE HIGHER EDUCATION NEEDS STUDY. 16.28 The Board of Regents of the University of Minnesota through the Duluth campus 16.29is requested to coordinate a study of student demand and employer needs for higher 16.30education in the Mesabi Range region of northeastern Minnesota, including the cities of 16.31Grand Rapids through Eveleth to Ely. The Board of Regents may contract for all or part of 16.32the study. The Board of Trustees of the Minnesota State Colleges and Universities will 16.33participate as partners in the study to advise on which of the identified needs can be met by 17.1University of Minnesota courses and which can be met by the Minnesota State Colleges 17.2and Universities, and which degree programs may be offered jointly. The final report must 17.3be submitted to the committees of the legislature responsible for higher education finance 17.4by January 15, 2008, with recommendations and plans for the region. 17.7 Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read: 17.8 Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 17.9involving the Minnesota Office of Higher Education and other institutions is governed 17.10by 17.11 (b) Student financial aid. Data collected and used by the Minnesota Office of 17.12Higher Education on applicants for financial assistance are classified under section 17.14 (c) Minnesota college savings plan data. Account owner data, account data, and 17.15data on beneficiaries of accounts under the Minnesota college savings plan are classified 17.16under section 17.17 (d) School financial records. Financial records submitted by schools registering 17.18with the Minnesota Office of Higher Education are classified under section 17.19 (e) Enrollment and financial aid data. Data collected from eligible institutions on 17.20student enrollment and federal and state financial aid are governed by sections 136A.121, 17.21subdivision 18, and 136A.1701, subdivision 11. 17.22 Sec. 2. Minnesota Statutes 2006, section 135A.01, is amended to read: 17.23135A.01 FUNDING POLICY. 17.24 It is the policy of the legislature to provide stable funding 17.25 17.26that the state and students share the cost of 17.27The legislature intends to provide at least 67 percent of the 17.28 17.29University of Minnesota, and state general fund appropriations to public postsecondary 17.30institutions. It is also the policy of the legislature that the budgetary process serves to 17.31support high quality public postsecondary education. 17.32 Sec. 3. [135A.011] STATE HIGHER EDUCATION OBJECTIVES. 18.1 Subdivision 1. Statewide objectives. Minnesota's higher education investment 18.2is made in pursuit of the following objectives: (1) to ensure quality by providing a 18.3level of excellence that is competitive on a national and international level, through 18.4high quality teaching, scholarship, and learning in a broad range of arts and sciences, 18.5technical education, and professional fields; (2) to foster student success by enabling 18.6and encouraging students to choose institutions and programs that are best suited for 18.7their talents and abilities, and to provide an educational climate that supports students 18.8in pursuing their goals and aspirations; (3) to promote democratic values and enhance 18.9Minnesota's quality of life by developing understanding and appreciation of a free and 18.10diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, 18.11regardless of personal circumstances, to participate in higher education; and (5) to enhance 18.12the economy by assisting the state in being competitive in the world market, and to prepare 18.13a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs. 18.14 Sec. 4. Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read: 18.15 Subdivision 1. Determination of appropriation. The 18.16 18.17 18.18 18.19 18.20by considering the biennial budget documents submitted under section 135A.034, 18.21performance in advancing the objectives under section 135A.011, available resources 18.22according to the state budget forecast, the relative balance between state support for 18.23students and public postsecondary institutions, and other factors the legislature considers 18.24important in determining the level of state appropriations for public postsecondary 18.25education. 18.26 Sec. 5. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read: 18.27 Subd. 7. Reports. (a) Instructional and noninstructional expenditure data and 18.28enrollment data 18.29 18.30This report must include a description of the methodology for determining instructional 18.31and noninstructional expenditures and estimates of inflation in higher education and the 18.32methodology or index used to determine the inflation rate. 18.33 (b) By February 1 of each even-numbered year, the Board of Regents of the 18.34University of Minnesota and the Board of Trustees of the Minnesota State Colleges 19.1and Universities must submit a report to the chairs of the legislative committees with 19.2jurisdiction over higher education policy and finance. The report must describe the 19.3following: 19.4 (1) how state appropriations made to the system in the previous odd-numbered year 19.5were allocated and the methodology used to determine the allocation; 19.6 (2) data describing how the institution reallocated resources to advance the priorities 19.7set forth in the budget submitted under section 135A.034 and the statewide objectives 19.8under section 135A.011. The information must indicate whether instruction and support 19.9programs received a reduction in or additional resources. The total amount reallocated 19.10must be clearly explained; 19.11 (3) the tuition rates and fees established by the governing board in each of the past 19.12ten years and comparison data for peer institutions and national averages; 19.13 (4) data on the number and proportion of students graduating within four, five, 19.14and six years from universities and within three years from colleges as reported in the 19.15integrated postsecondary education data system. These data must be provided for each 19.16institution by race, ethnicity, and gender. Data and information must be submitted that 19.17describe the system's plan and progress toward attaining the goals set forth in the plan 19.18to increase the number and proportion of students that graduate within four, five, or six 19.19years from a university or within three years from a college; 19.20 (5) data on, and the methodology used to measure, the number of students 19.21traditionally underrepresented in higher education enrolled at the system's institutions. 19.22Data and information must be submitted that describe the system's plan and progress 19.23toward attaining the goals set forth in the plan to increase the recruitment, retention, and 19.24timely graduation of students traditionally underrepresented in higher education; and 19.25 (6) data on the revenue received from all sources to support research or workforce 19.26development activities or the system's efforts to license, sell, or otherwise market products, 19.27ideas, technology, and related inventions created in whole or in part by the system. Data 19.28and information must be submitted that describe the system's plan and progress toward 19.29attaining the goals set forth in the plan to increase the revenue received to support research 19.30or workforce development activities or revenue received from the licensing, sale, or other 19.31marketing and technology transfer activities by the system. 19.32 Sec. 6. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read: 19.33 Subdivision 1. Operating budget. The governing boards of the University of 19.34Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 19.35legislative and executive branch acceptance, its highest budget priorities in accordance 20.1with statewide objectives for higher education under section 135A.011. 20.2 20.3 20.4 20.5 20.6 Sec. 7. [135A.043] RESIDENT TUITION AND PRIVATE FINANCIAL AID 20.7ELIGIBILITY. 20.8 Subdivision 1. Tuition. (a) A student shall qualify for a resident tuition rate or its 20.9equivalent at state universities and colleges, including the University of Minnesota, if the 20.10student meets all of the following requirements: 20.11 (1) high school attendance within the state for three or more years; 20.12 (2) graduation from a state high school or attainment within the state of the 20.13equivalent of high school graduation; and 20.14 (3) registration as an entering student at, or current enrollment in, a public institution 20.15of higher education. 20.16 (b) This section is in addition to any other statute, rule, or higher education 20.17institution regulation or policy providing eligibility for a resident tuition rate or its 20.18equivalent to a student. 20.19 (c) To qualify for resident tuition under this section an individual who is not a citizen 20.20or permanent resident of the United States must provide the college or university with 20.21an affidavit that the individual will file an application to become a permanent resident at 20.22the earliest opportunity the individual is eligible to do so. 20.23 Subd. 2. Scholarships and financial aid. A student who meets the criteria 20.24established in subdivision 1, paragraph (a), for a resident tuition rate is not disqualified 20.25on the basis of the student's immigration status from scholarships or financial aid funded 20.26by private sources and provided by a state college or university or by the University of 20.27Minnesota, except when immigration status is an eligibility criterion of the particular 20.28scholarship or financial aid program. 20.29EFFECTIVE DATE.This section is effective the day following final enactment 20.30and applies to tuition or scholarships or financial aid for school terms commencing on or 20.31after that date. 20.32 Sec. 8. [135A.135] PERSONAL FINANCIAL MANAGEMENT. 20.33 During initial student registration, each technical college, community college, or 20.34state university shall, and the University of Minnesota is requested to, provide each 21.1student information on personal financial management. Students should understand and 21.2be able to manage personal finances including, but not limited to, the responsible use of 21.3consumer credit. This requirement may be waived for a student who enrolls in a college 21.4course providing similar instruction. 21.5 Sec. 9. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read: 21.6 Subdivision 1. Definitions. As used in this section, the following terms have the 21.7meanings given them. 21.8 (a) "Administrator" means the administrator of the institution or other person with 21.9general control and supervision of the institution. 21.10 (b) "Public or private postsecondary educational institution" or "institution" means 21.11any of the following institutions having an enrollment of more than 100 persons during 21.12any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 21.13(2) the state universities; (3) the state community colleges; (4) public technical colleges; 21.14(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 21.15and (7) schools subject to either chapter 141, sections 21.16schools exempt under section 21.17state for an academic year greater than six consecutive months. An institution's report to 21.18the Minnesota Office of Higher Education or the Minnesota Department of Education may 21.19be considered when determining enrollment. 21.20 (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 21.21high school in 1997 or later, and who is (1) registering for more than one class during 21.22a full academic term, such as a quarter or a semester or (2) housed on campus and is 21.23registering for one or more classes. Student does not include persons enrolled in extension 21.24classes only or correspondence classes only. 21.25 Sec. 10. [135A.145] SALE OF STUDENT INFORMATION; MARKETING 21.26CREDIT CARDS TO STUDENTS. 21.27 Subdivision 1. Prohibited practices. No public or private postsecondary 21.28educational institution, including its agents, employees, student or alumni organizations, 21.29or affiliates, may: 21.30 (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone 21.31number, or other contact information of a student at the postsecondary educational 21.32institution without the student's consent; or 21.33 (2) enter into any agreement to market credit cards to students at a postsecondary 21.34educational institution. 22.1 For purposes of this section, the terms "credit," "credit card," and "card issuer" 22.2have the meanings given them in the Truth in Lending Act, United States Code, title 15, 22.3section 1602. 22.4 Subd. 2. Violations. The attorney general may seek the penalties and remedies 22.5available under section 22.6EFFECTIVE DATE.This section is effective July 1, 2007, except that it applies to 22.7existing agreements to market credit cards upon the later of the expiration of the original 22.8term of the agreement or the expiration of an extension of the original agreement if the 22.9extension is in effect on July 1, 2007. 22.10 Sec. 11. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read: 22.11 Subdivision 1. Fees and tuition. Except for an administration fee established by the 22.12governing board at a level to recover costs, to be collected only when a course is taken for 22.13credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 22.14of tuition or activity fees to attend courses offered for credit, audit any courses offered 22.15for credit, or enroll in any noncredit courses in any state supported institution of higher 22.16education in Minnesota when space is available after all tuition-paying students have been 22.17accommodated. A senior citizen enrolled under this section must pay any materials, 22.18personal property, or service charges for the course. In addition, a senior citizen who is 22.19enrolled in a course for credit must pay an administrative fee in an amount established 22.20by the governing board of the institution to recover 22.21administrative fee charges to a senior citizen auditing a course. For the purposes of this 22.22section and section 22.23designed and offered specifically and exclusively for senior citizens. 22.24 The provisions of this section and section 22.25designed and offered by the University of Minnesota, and the Minnesota State Colleges 22.26and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 22.27under the provisions of this section and section 22.28institutions in their computation of full-time equivalent students when requesting staff 22.29or appropriations. 22.30 Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read: 22.31 Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 22.32shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 22.33courses, nor income limitation imposed in determining eligibility. 23.1 (b) A senior citizen enrolled in a closed enrollment contract training 23.2 23.3 Sec. 13. [136A.002] DEFINITIONS. 23.4 Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section 23.5have the meanings given them. 23.6 Subd. 2. Office of Higher Education; office. "Office of Higher Education" or 23.7"office" means the Minnesota Office of Higher Education. 23.8 Sec. 14. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read: 23.9 Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 23.10for: 23.11 (1) necessary state level administration of financial aid and Minnesota GI Bill 23.12programs, including accounting, auditing, and disbursing state and federal financial aid 23.13funds, and reporting on financial aid programs to the governor and the legislature; 23.14 (2) approval, registration, licensing, and financial aid eligibility of private collegiate 23.15and career schools, under sections 23.16 (3) administering the Learning Network of Minnesota; 23.17 (4) negotiating and administering reciprocity agreements; 23.18 (5) publishing and distributing financial aid information and materials, and other 23.19information and materials under section 23.20 (6) collecting and maintaining student enrollment and financial aid data and 23.21reporting data on students and postsecondary institutions to develop and implement a 23.22process to measure and report on the effectiveness of postsecondary institutions; 23.23 (7) administering the federal programs that affect students and institutions on a 23.24statewide basis; and 23.25 (8) prescribing policies, procedures, and rules under chapter 14 necessary to 23.26administer the programs under its supervision. 23.27 Sec. 15. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read: 23.28 Subd. 5. Expiration. Notwithstanding section 23.29groups established in this section expire on June 30, 23.30 Sec. 16. Minnesota Statutes 2006, section 136A.0411, is amended to read: 23.31136A.0411 COLLECTING FEES. 24.1 The office may charge fees for seminars, conferences, workshops, services, and 24.2materials. The office may collect fees for registration and licensure of private institutions 24.3under sections 24.4appropriated to the office. 24.5 Sec. 17. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read: 24.6 Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 24.7before the last day in January, submit a report to the committees in the house of 24.8representatives and the senate with responsibility for higher education finance on: 24.9 (1) participation in the tuition reciprocity program by Minnesota students and 24.10students from other states attending Minnesota postsecondary institutions under a 24.11reciprocity agreement; 24.12 (2) reciprocity and resident tuition rates at each institution; 24.13 (3) interstate payments and obligations for each state participating in the tuition 24.14reciprocity program in the prior year 24.15 (4) summary statistics on number of graduates by institution, degree granted, and 24.16year of graduation for reciprocity students who attended Minnesota postsecondary 24.17institutions. 24.18 Sec. 18. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read: 24.19 Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 24.20educational institution located in this state or in a state with which the office has entered 24.21into a higher education reciprocity agreement on state student aid programs that 24.22is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 24.23operated 24.24(i) maintains academic standards substantially equivalent to those of comparable 24.25institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 24.26by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 24.27Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. 24.28 Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 24.29read: 24.30 Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means 24.31the amount of a 24.32by a federal need analysis. For dependent students, the assigned family responsibility is 24.3395 percent of the parental contribution. For independent students with dependents other 25.1than a spouse, the assigned family responsibility is 79 percent of the student contribution. 25.2For independent students without dependents other than a spouse, the assigned family 25.3responsibility is 25.4 25.5 Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 6, is amended to read: 25.6 Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of 25.7allowances specified in law for living and miscellaneous expenses, and an allowance for 25.8tuition and fees equal to the lesser of the 25.9institution, or the tuition and fee maximums established in law. 25.10 (b) For a student registering for less than full time, the office shall prorate the cost of 25.11attendance to the actual number of credits for which the student is enrolled. 25.12 The recognized cost of attendance for a student who is confined to a Minnesota 25.13correctional institution shall consist of the tuition and fee component in paragraph (a), 25.14with no allowance for living and miscellaneous expenses. 25.15 For the purpose of this subdivision, "fees" include only those fees that are mandatory 25.16and charged to full-time resident students attending the institution. Fees do not include 25.17charges for tools, equipment, computers, or other similar materials where the student 25.18retains ownership. Fees include charges for these materials if the institution retains 25.19ownership. Fees do not include optional or punitive fees. 25.20 Sec. 21. Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to 25.21read: 25.22 Subd. 7a. Surplus appropriation. If the amount appropriated is determined by the 25.23office to be more than sufficient to fund projected grant demand in the second year of the 25.24biennium, the office may increase the living and miscellaneous expense allowance in the 25.25second year of the biennium by up to an amount that retains sufficient appropriations 25.26to fund the projected grant demand. The adjustment may be made one or more times. 25.27In making the determination that there are more than sufficient funds, the office shall 25.28balance the need for sufficient resources to meet the projected demand for grants with the 25.29goal of fully allocating the appropriation for state grants. An increase in the living and 25.30miscellaneous expense allowance under this subdivision does not carry forward into a 25.31subsequent biennium. This subdivision expires June 30, 25.32 Sec. 22. Minnesota Statutes 2006, section 136A.121, is amended by adding a 25.33subdivision to read: 26.1 Subd. 19. Reporting. By November 1 and February 15, the Office of Higher 26.2Education must provide updated state grant spending projections taking into account 26.3the most current and projected enrollment and tuition and fee information, economic 26.4conditions, and other relevant factors. Before submitting state grant spending projections, 26.5the Office of Higher Education must meet and consult with representatives of public and 26.6private postsecondary institutions, the Department of Finance, the Governor's Office, 26.7legislative staff, and financial aid administrators. 26.8 Sec. 23. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read: 26.9 Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 26.10the applicant: 26.11 (1) is a resident of the state of Minnesota; 26.12 (2) has a child 12 years of age or younger, or 14 years of age or younger who is 26.13disabled as defined in section 26.14regular basis from a licensed or legal, nonlicensed caregiver; 26.15 (3) is income eligible as determined by the office's policies and rules, but is not a 26.16recipient of assistance from the Minnesota family investment program; 26.17 (4) has not earned a baccalaureate degree and has been enrolled full time less than 26.18eight semesters or the equivalent; 26.19 (5) is pursuing a nonsectarian program or course of study that applies to an 26.20undergraduate degree, diploma, or certificate; 26.21 (6) is enrolled at least half time in an eligible institution; and 26.22 (7) is in good academic standing and making satisfactory academic progress. 26.23 (b) A student who withdraws from enrollment for active military service is entitled 26.24to an additional semester or the equivalent of grant eligibility and will be considered to be 26.25in continuing enrollment status upon return. 26.26 Sec. 24. Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read: 26.27 Subd. 4. Amount and length of grants. The amount of a child care grant must be 26.28based on: 26.29 (1) the income of the applicant and the applicant's spouse; 26.30 (2) the number in the applicant's family, as defined by the office; and 26.31 (3) the number of eligible children in the applicant's family. 26.32 The maximum award to the applicant shall be 26.33per academic year, except that the campus financial aid officer may apply to the office for 26.34approval to increase grants by up to ten percent to compensate for higher market charges 27.1for infant care in a community. The office shall develop policies to determine community 27.2market costs and review institutional requests for compensatory grant increases to ensure 27.3need and equal treatment. The office shall prepare a chart to show the amount of a grant 27.4that will be awarded per child based on the factors in this subdivision. The chart shall 27.5include a range of income and family size. 27.6 Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read: 27.7 Subdivision 1. Scope. For purposes of sections 27.8the terms defined in this section have the meanings 27.9 Sec. 26. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read: 27.10 Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 27.11educational institution that 27.12Regents of the University of Minnesota; (2) is operated publicly or privately in another 27.13state, is approved by the United States Secretary of Education, and, as determined by 27.14the office, maintains academic standards substantially equal to those of comparable 27.15institutions operated in this state; (3) is licensed or registered as a postsecondary institution 27.16by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 27.17Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 27.18also includes any institution chartered in a province. 27.19 Sec. 27. Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read: 27.20 Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota Office of 27.21Higher Education is designated as the administrative agency for carrying out the purposes 27.22and terms of sections 27.23or more loan programs. 27.24 Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read: 27.25 Subd. 2. Rules. The office shall adopt policies and prescribe appropriate rules to 27.26carry out the purposes of sections 27.27rules except as they relate to loans under section 27.28the provisions of the National Vocational Student Loan Insurance Act of 1965 and the 27.29provisions of title IV of the Higher Education Act of 1965, and any amendments thereof. 27.30 Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read: 28.1 Subd. 5. Agencies. The office may contract with guarantee agencies, insurance 28.2agencies, collection agencies, or any other person, to carry out the purposes of sections 28.4 Sec. 30. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read: 28.5 Subd. 8. Investment. Money made available to the office that is not immediately 28.6needed for the purposes of sections 28.7by the office. The money must be invested in bonds, certificates of indebtedness, and 28.8other fixed income securities, except preferred stocks, which are legal investments for the 28.9permanent school fund. The money may also be invested in prime quality commercial 28.10paper that is eligible for investment in the state employees retirement fund. All interest 28.11and profits from such investments inure to the benefit of the office or may be pledged for 28.12security of bonds issued by the office or its 28.13 28.14 Sec. 31. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read: 28.15 Subd. 9. Staff. The office may employ the professional and clerical staff the 28.16director deems necessary for the proper administration of the loan programs established 28.17and defined by sections 28.18 Sec. 32. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read: 28.19 Subd. 10. Director. Subject to its directives and review, the office may delegate to 28.20the director the responsibility for issuance of public information concerning provisions of 28.21sections 28.22prescribing procedures for submission of applications for loans. 28.23 Sec. 33. Minnesota Statutes 2006, section 136A.16, is amended by adding a 28.24subdivision to read: 28.25 Subd. 16. Interest rate swaps and other agreements. (a) The office may enter into 28.26interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 28.27or other comparable interest rate protection agreements with a third party in connection 28.28with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 28.29comparable interest rate protection agreements. 28.30 (b) The agreements authorized by this subdivision include without limitation master 28.31agreements, options, or contracts to enter into those agreements in the future and related 29.1agreements, including, without limitation, agreements to provide credit enhancement, 29.2liquidity, or remarketing. 29.3 (c) The agreements authorized by this subdivision may be entered into on the basis 29.4of negotiation with a qualified third party or through a competitive proposal process on 29.5terms and conditions as and with covenants and provisions approved by the office and 29.6may include, without limitation: 29.7 (1) provisions establishing reserves; 29.8 (2) pledging assets or revenues of the office for current or other payments or 29.9termination payments; 29.10 (3) contracting with the other parties to the agreements to provide for the custody, 29.11collection, securement, investment, and payment of money of the office or money held 29.12in trust; or 29.13 (4) requiring the issuance of bonds or other agreements authorized by this section 29.14in the future. 29.15 (d) With respect to bonds or notes outstanding or proposed to be issued bearing 29.16interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 29.17or at a different variable rate determined in accordance with a formula set out in the 29.18agreement on an amount not exceeding the outstanding principal amount of the bonds or 29.19notes at the time of payment in exchange for an agreement by the third party to pay sums 29.20equal to interest on a like amount at a variable rate determined according to a formula 29.21set out in the agreement. 29.22 (e) With respect to bonds or notes outstanding or proposed to be issued bearing 29.23interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 29.24variable rate determined in accordance with a formula set out in the agreement on an 29.25amount not exceeding the outstanding principal amount of the bonds or notes at the time of 29.26payment in exchange for an agreement by the third party to pay sums equal to interest on a 29.27like amount at a fixed rate or rates determined according to a formula set in the agreement. 29.28 (f) Subject to any applicable covenants of the office, payments required to be made 29.29by the office under the agreement, including termination payments, may be made from 29.30amounts pledged or available to pay debt service on the bonds or notes with respect to 29.31which the agreement was made or from assets of the loan capital fund of the office. 29.32The office may issue bonds or notes to provide for any payments, including, without 29.33limitation, a termination payment due or to become due under an agreement authorized 29.34under this section. 29.35 Sec. 34. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read: 30.1 Subdivision 1. Eligibility. A student is eligible to apply for a loan under sections 30.3as defined in those sections and is eligible for a loan under federal laws and regulations 30.4governing the federal guaranteed student loan programs. 30.5 Sec. 35. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to 30.6read: 30.7 Subdivision 1. Establishment of program. The Minnesota Office of Higher 30.8Education may provide for programs of loans which may be made in lieu of or in addition 30.9to loans authorized under sections 30.10provisions of federal law as provided in this section. 30.11 Sec. 36. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to 30.12read: 30.13 Subd. 2. Purpose of program. The purpose of the loan programs under this section 30.14is to provide financial assistance for the postsecondary education of students who are 30.15eligible students whether or not such students qualify for a loan or loans under other 30.16provisions of sections 30.17 Loans granted to students may be used solely for educational purposes. 30.18 Sec. 37. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to 30.19read: 30.20 Subd. 5. Maximum loans for students. Loans made under this section or sections 30.22may be made for a maximum of three academic years or their equivalent and loans made 30.23to any other individual eligible student may be made for a maximum of eight academic 30.24years or their equivalent. 30.25 Sec. 38. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read: 30.26 Subd. 3. Payments. Work-study payments shall be made to eligible students by 30.27postsecondary institutions as provided in this subdivision. 30.28 (a) Students shall be selected for participation in the program by the postsecondary 30.29institution on the basis of student financial need. 30.30 (b) In selecting students for participation, priority must be given to students enrolled 30.31for at least 12 credits. In each academic year, a student may be awarded work-study 31.1payments for one period of nonenrollment or less than half-time enrollment if the student 31.2will enroll on at least a half-time basis during the following academic term. 31.3 (c) Students will be paid for hours actually worked and the maximum hourly rate 31.4of pay shall not exceed the maximum hourly rate of pay permitted under the federal 31.5college work-study program. 31.6 (d) Minimum pay rates will be determined by an applicable federal or state law. 31.7 (e) The office shall annually establish a minimum percentage rate of student 31.8compensation to be paid by an eligible employer. 31.9 (f) Each postsecondary institution receiving money for state work-study grants 31.10shall make a reasonable effort to place work-study students in employment with eligible 31.11employers outside the institution. However, a public employer other than the institution 31.12may not terminate, lay off, or reduce the working hours of a permanent employee for the 31.13purpose of hiring a work-study student, or replace a permanent employee who is on layoff 31.14from the same or substantially the same job by hiring a work-study student. 31.15 (g) The percent of the institution's work-study allocation provided to graduate 31.16students shall not exceed the percent of graduate student enrollment at the participating 31.17institution. 31.18 (h) An institution may use up to 30 percent of its allocation for student internships 31.19with private, for-profit employers. 31.20 Sec. 39. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read: 31.21 Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 31.22to issue revenue bonds whose aggregate principal amount at any time shall not exceed 31.23 31.24refunding bonds of the authority under the provisions of sections 31.25to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 31.26renovating, improving, furnishing, or equipping one or more projects or parts thereof. 31.27 Sec. 40. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read: 31.28 Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 31.29shall award grants to foster postsecondary attendance and retention by providing outreach 31.30services to historically underserved students in grades six through 12 and historically 31.31underrepresented college students. Grants must be awarded to programs that provide 31.32precollege services, including, but not limited to: 31.33 (1) academic counseling; 31.34 (2) mentoring; 32.1 (3) fostering and improving parental involvement in planning for and facilitating a 32.2college education; 32.3 (4) services for students with English as a second language; 32.4 (5) academic enrichment activities; 32.5 (6) tutoring; 32.6 (7) career awareness and exploration; 32.7 (8) orientation to college life; 32.8 (9) assistance with high school course selection and information about college 32.9admission requirements; and 32.10 (10) financial aid counseling. 32.11 Grants shall be awarded to postsecondary institutions, professional organizations, 32.12community-based organizations, or others deemed appropriate by the director. 32.13 Grants shall be awarded for one year and may be renewed for a second year with 32.14documentation to the Minnesota Office of Higher Education of successful program 32.15outcomes. 32.16 Sec. 41. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read: 32.17 Subd. 2. Eligible students. Eligible students include students in grades six through 32.1812 who meet one or more of the following criteria: 32.19 (1) are counted under section 1124(c) of the Elementary and Secondary Education 32.20Act of 1965 (Title I); 32.21 (2) are eligible for free or reduced-price lunch under the National School Lunch Act; 32.22 (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 32.23I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or 32.24 (4) are a member of a group traditionally underrepresented in higher education. 32.25 Eligible undergraduate students include those who met the student eligibility criteria 32.26for grades 6 through 12. 32.27 Sec. 42. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read: 32.28 Subd. 3. Application process. The director of the Minnesota Office of Higher 32.29Education shall develop a grant application process. The director shall attempt to support 32.30projects in a manner that ensures that eligible students throughout the state have access 32.31to 32.32 The grant application must include, at a minimum, the following information: 32.33 (1) a description of the characteristics of the students to be served reflective of the 32.34need for services listed in subdivision 1; 33.1 (2) a description of the services to be provided and a timeline for implementation of 33.2the activities; 33.3 (3) a description of how the services provided will foster postsecondary attendance 33.4and support postsecondary retention; 33.5 (4) a description of how the services will be evaluated to determine whether the 33.6program goals were met; and 33.7 (5) other information as identified by the director. 33.8Grant recipients must specify both program and student outcome goals, and performance 33.9measures for each goal. 33.10 Sec. 43. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read: 33.11 Subd. 6. Program evaluation. Each grant recipient must annually submit a report 33.12to the Minnesota Office of Higher Education delineating its program and student outcome 33.13goals, and activities implemented to achieve the stated outcomes. The goals must be 33.14clearly stated and measurable. Grant recipients are required to collect, analyze, and report 33.15on participation and outcome data that enable the office to verify that the program goals 33.16were met. The office shall maintain: 33.17 (1) information about successful precollege program and undergraduate student 33.18retention program activities for dissemination to individuals throughout the state interested 33.19in adopting or replicating successful program practices; and 33.20 (2) data on the success of the funded projects in increasing the high school 33.21graduation 33.22by the grant recipients. The office may convene meetings of the grant recipients, as 33.23needed, to discuss issues pertaining to the implementation of precollege services and 33.24undergraduate retention programs. 33.25 Sec. 44. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read: 33.26 Subdivision 1. Membership. The board consists of 33.27members appointed by the governor with the advice and consent of the senate, and the 33.28commissioner of employment and economic development as an ex officio, nonvoting 33.29member. At least one member of the board must be a resident of each congressional 33.30district. In selecting appointees, the governor must consider the needs of the Board of 33.31Trustees and the balance of the board membership with respect to labor and business 33.32representation and racial, gender, and ethnic composition. Three members must be 33.33students who are enrolled at least half time in a degree, diploma, or certificate program 33.34or have graduated from an institution governed by the board within one year of the date 34.1of appointment. The student members shall include: one member from a community 34.2college, one member from a state university, and one member from a technical college. 34.3The remaining members must be appointed to represent the state at large. 34.4 Sec. 45. Minnesota Statutes 2006, section 136F.02, subdivision 2, is amended to read: 34.5 Subd. 2. Term; compensation; removal; vacancies. With respect to appointed 34.6members, the compensation, removal 34.7are as provided in section 34.8that the term of each of the student members is two years. Terms end on June 30, except 34.9that members may serve until their successors are appointed. 34.10 Sec. 46. Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read: 34.11 Subd. 3. Duties. (a) The advisory council shall: 34.12 (1) develop a statement of the selection criteria to be applied and a description 34.13of the responsibilities and duties of a member of the board and shall distribute this to 34.14potential candidates; and 34.15 (2) for each position on the board, identify and recruit qualified candidates for the 34.16board, based on the background and experience of the candidates, and their potential for 34.17discharging the responsibilities of a member of the board. 34.18 (b) The selection criteria developed under paragraph (a), clause (1), must include a 34.19criterion that trustees represent diversity in geography; gender; race; occupation, including 34.20business and labor; and experience. 34.21 (c) The selection criterion must include an identification of the membership needs 34.22of the board for individual skills relevant to the governance of the Minnesota State 34.23Colleges and Universities and the needs for certain individual characteristics. Individual 34.24characteristics relate to qualities such as gender, race, and geographic location of residence. 34.25 Sec. 47. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read: 34.26 Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 34.27in consultation with the commissioners of employee relations and finance, may develop 34.28policies to allow system office or campus employees on salaries, as defined in section 34.30time for which leave is taken. 34.31 34.32 35.1 Sec. 48. Minnesota Statutes 2006, section 136F.58, is amended to read: 35.2136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION. 35.3 Subdivision 1. Authorization. A state college or university may operate a bookstore 35.4in a state college or university building, or may allocate space in a state college or 35.5university building and permit a person or corporation to operate a bookstore without rent 35.6at the campus' pleasure and on such conditions as the board may impose. The board may 35.7provide insurance, at no cost to the state, for the inventory of a bookstore a state college or 35.8university conducts in its building. 35.9 Subd. 2. Course material. (a) An instructor shall attempt to provide adequate 35.10notice to a bookstore of the intention to order required or recommended course material 35.11so that the bookstore can provide information for the instructor's consideration prior to 35.12placing an order for the course material. 35.13(b) A bookstore must make reasonable efforts to obtain from publishers or other 35.14sources, prior to the time an instructor requests the bookstore to order course material, 35.15the following information, including, but not limited to: 35.16(1) the title, edition, author, and International Standard Book Number (ISBN) of 35.17the course material; 35.18(2) the price for the course material; 35.19(3) whether the course material is bundled with optional material, whether it can be 35.20unbundled, and the price for each bundled and unbundled component; 35.21(4) whether the material is available in an alternative format and the cost for the 35.22alternatively formatted material; 35.23(5) the availability of the course material currently and in the future; 35.24(6) changes to the course material from the previous edition, the revision date, 35.25availability, and cost for that edition, if available; and 35.26(7) any known plans for future revisions of the course material. 35.27(c) An instructor ordering course material through a bookstore shall consider the 35.28information received from the bookstore prior to placing the final order. 35.29 Subd. 3. Notice to purchase. (a) An instructor shall make reasonable efforts to 35.30notify a bookstore of the final order for required and recommended course material at least 35.3130 days prior to the commencement of the term. 35.32(b) The bookstore must make reasonable efforts to notify students of the following 35.33information concerning the required and recommended course material at least 15 days 35.34prior to the commencement of the term for which the course material is required including, 35.35but not limited to: 36.1(1) the title, edition, author, and International Standard Book Number (ISBN) of 36.2the course material; 36.3(2) the price for the course material; 36.4(3) whether the required course material is bundled with optional material, whether 36.5it can be unbundled, and the price for each bundled and unbundled component; and 36.6(4) whether the material is available in an alternative format and the cost for the 36.7alternatively formatted material. 36.8 Subd. 4. System responsibility. The board shall, to the extent it considers 36.9necessary, adopt uniform forms for bookstores to request information under subdivision 2. 36.10The board shall encourage faculty to utilize the information received under subdivision 2 36.11to achieve the lowest cost to students for course materials consistent with the academic 36.12freedom and choice of the faculty member. 36.13 Sec. 49. Minnesota Statutes 2006, section 136F.70, is amended by adding a subdivision 36.14to read: 36.15 Subd. 1a. Nonresident undergraduate tuition. The board may not set an 36.16undergraduate tuition rate at community colleges, technical colleges, and consolidated 36.17community and technical colleges that is different for nonresident students than for 36.18resident students. This subdivision does not apply to undergraduate tuition rates for a 36.19resident of a state that has entered into a reciprocity agreement under section 136A.08. 36.20EFFECTIVE DATE.This section is effective July 1, 2007. 36.21 Sec. 50. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read: 36.22 Subd. 2. Activity funds. All receipts attributable to the state colleges and 36.23universities activity funds 36.24and are not subject to budgetary control as exercised by the commissioner of finance. 36.25 Sec. 51. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 36.26to read: 36.27 Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall 36.28have authority to control the amount and manner of deposit of all receipts described in 36.29this section in depositories selected by the board. The board's authority shall include 36.30specifying the considerations, financial activities, and conditions required from the 36.31depository, including the requirement of collateral security or a corporate surety bond 36.32as described in section 118A.03. The board may compensate the depository, including 36.33paying a reasonable charge to the depository, maintaining appropriate compensating 37.1balances with the depository, or purchasing non-interest-bearing certificates of deposit 37.2from the depository for performing depository-related services. 37.3 Sec. 52. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read: 37.4 Subd. 5. Amount of matching grant. The amount of the matching grant for a 37.5beneficiary equals: 37.6 (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 37.7of the contributions made to the beneficiary's account during the calendar year, not to 37.8exceed 37.9 (2) if the beneficiary's family income is more than $50,000 but not more than 37.10$80,000, 37.11during the calendar year, not to exceed 37.12 Sec. 53. Minnesota Statutes 2006, section 137.0245, subdivision 4, is amended to read: 37.13 Subd. 4. Recommendations. (a) The advisory council shall recommend at least 37.14two and not more than four candidates. By January 15 of each odd-numbered year, 37.15the advisory council shall submit its recommendations to the governor and to the joint 37.16committee established in section 137.0246, subdivision 2. 37.17 (b) The advisory council must submit a report to the governor and to the joint 37.18committee on the needs criterion identified under subdivision 3, paragraph (c), at the 37.19same time it submits its recommendations. 37.20 Sec. 54. Minnesota Statutes 2006, section 137.0246, subdivision 2, is amended to read: 37.21 Subd. 2. Joint committee. (a) The joint legislative committee consists of 37.22 37.23 37.24 37.25 37.26 37.27 37.28budget divisions 37.29 37.30house is a quorum of the joint committee. 37.31 (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 37.32resolution, the joint legislative committee shall meet to consider the governor's nominees 38.1and all of the regent candidate advisory council's recommendations for regent of the 38.2University of Minnesota for possible presentation to a joint convention of the legislature. 38.3 38.4 38.5 38.6 Sec. 55. Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read: 38.7 Subd. 4. Delayed payment of tuition. A state college or university may not assess 38.8late fees or other late charges for veterans who are eligible to receive federal or state 38.9educational assistance and who have applied for that assistance but not yet received it, 38.10nor may they prevent these students from registering for a subsequent term because of 38.11outstanding tuition charges that arise from delayed federal or state payments. The state 38.12college or university may request without delay the amount of tuition above expected 38.13federal and state educational assistance and may require payment of the full amount of 38.14tuition owed by the veteran within 30 days of receipt of the expected federal or state 38.15educational assistance. 38.16 Sec. 56. [197.791] MINNESOTA GI BILL PROGRAM. 38.17 Subdivision 1. Policy. It is the policy of the state of Minnesota to provide 38.18postsecondary educational assistance to Minnesota veterans who have provided honorable 38.19service to this state and nation as members of the United States armed forces, whether 38.20in peacetime or in war, and to the spouses and children of Minnesota veterans who have 38.21become severely disabled or deceased during or as the direct result of military service. 38.22 Subd. 2. Definitions. (a) The definitions in this subdivision apply to this section. 38.23 (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 38.24specified. 38.25 (c) "Cost of attendance" for both undergraduate and graduate students has the 38.26meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2. 38.27 (d) "Child" means a natural or adopted child of a person described in subdivision 5, 38.28paragraph (a), clause (1), item (i) or (ii). 38.29 (e) "Director" means the director of the Minnesota Office of Higher Education. 38.30 (f) "Eligible institution" means a postsecondary institution located in this state. 38.31 (g) "Eligible student" means a person who: 38.32 (1) if the student is an undergraduate student, has applied for the federal Pell Grant 38.33and the Minnesota State Grant; 39.1 (2) is maintaining satisfactory academic progress as defined by the institution for 39.2students participating in federal Title IV programs; 39.3 (3) is enrolled in an education program leading to a certificate, diploma, or degree 39.4at an eligible institution; 39.5 (4) has applied for educational assistance under the Minnesota GI Bill program prior 39.6to the end of the academic term for which the assistance is being requested; and 39.7 (5) is in compliance with child support payment requirements under section 39.8136A.121, subdivision 2, clause (5). 39.9 (h) "Program" means the Minnesota GI Bill program established in this section, 39.10unless otherwise specified. 39.11 (i) "Time of hostilities" means any action by the armed forces of the United 39.12States that is recognized by the issuance of a presidential proclamation or a presidential 39.13executive order and in which the armed forces expeditionary medal or other campaign 39.14service medals are awarded according to presidential executive order, and any additional 39.15period or place that the commissioner determines and designates, after consultation with 39.16the United States Department of Defense, to be a period or place where the United States 39.17is in a conflict that places persons at such a risk that service in a foreign country during 39.18that period or in that place should be considered to be included. 39.19 (j) "Veteran" has the meaning given in section 197.447, and also includes a service 39.20member who has received an honorable discharge after leaving each period of federal 39.21active duty service and has: 39.22 (1) served 90 days or more of federal active duty in a foreign country during a time 39.23of hostilities in that country; or 39.24 (2) received a service-related medical discharge from any period of service in a 39.25foreign country during a time of hostilities in that country. 39.26A service member who has fulfilled the requirements for being a veteran under this 39.27paragraph but is still serving actively in the United States armed forces is also a veteran 39.28for the purposes of this section. 39.29 Subd. 3. Program established. There is established a program to provide 39.30postsecondary educational assistance to eligible Minnesota veterans and to the children 39.31and spouses of deceased and severely disabled Minnesota veterans. This program may be 39.32cited as the "Minnesota GI Bill program." 39.33 The director, in consultation with the commissioner and in cooperation with 39.34eligible postsecondary educational institutions, shall expend a biennial appropriation 39.35for the purpose of providing postsecondary educational assistance to eligible persons 39.36in accordance with this program. Each public postsecondary educational institution in 40.1the state must participate in the program and each private postsecondary educational 40.2institution in the state is encouraged to participate in the program. Any participating 40.3private institution may suspend or terminate its participation in the program at the end 40.4of any semester or other academic term. 40.5 Subd. 4. Duties; responsibilities. (a) The director, in consultation with the 40.6commissioner, shall establish policies and procedures including, but not limited to, 40.7procedures for student application record keeping, information sharing, payment to 40.8participating eligible institutions, and other procedures the director considers appropriate 40.9and necessary for effective and efficient administration of the program established in 40.10this section. 40.11 (b) The director, in consultation with the commissioner, may delegate part or 40.12all of the administrative procedures for the program to responsible representatives of 40.13participating eligible institutions. 40.14 Subd. 5. Eligibility. (a) A person is eligible for educational assistance under this 40.15section if: 40.16 (1) the person is: 40.17 (i) a veteran who is serving or has served honorably in any branch or unit of the 40.18United States armed forces at any time on or after August 2, 1990; 40.19 (ii) a nonveteran who has served honorably for a total of 16 years or more 40.20cumulatively as a member of the Minnesota national guard or any other active or reserve 40.21component of the United States armed forces, and any part of that service occurred on 40.22or after August 2, 1990; 40.23 (iii) the surviving spouse or child of a person who has served in the military at 40.24any time on or after August 2, 1990, and who has died as a direct result of that military 40.25service; or 40.26 (iv) the spouse or child of a person who has served in the military at any time on or 40.27after August 2, 1990, and who has a total and permanent service-connected disability as 40.28rated by the United States Veterans Administration; 40.29 (2) the person providing the military service described in clause (1), items (i) to (iv), 40.30was a Minnesota resident within six months of the time of the person's initial enlistment or 40.31any reenlistment in the United States armed forces; 40.32 (3) the person receiving the educational assistance is a Minnesota resident, as 40.33defined in section 136A.101, subdivision 8; and 40.34 (4) the person receiving the educational assistance is an eligible student. 40.35 (b) A person's eligibility terminates when the person becomes eligible for benefits 40.36under section 135A.52. 41.1 (c) As proof of honorable service and disability or death status for a veteran or 41.2service member, the director, by policy and in consultation with the commissioner, may 41.3require official documentation, including the person's federal form DD-214 or other official 41.4military discharge papers; correspondence from the United States Veterans Administration; 41.5birth certificate; marriage certificate; proof of enrollment at an eligible institution; signed 41.6affidavits; proof of residency; proof of identity; or any other official documentation the 41.7director considers necessary to determine an applicant's eligibility status. 41.8 (d) The director, in consultation with the commissioner, may deny eligibility or 41.9terminate benefits under this section to any person who has not provided sufficient proof of 41.10eligibility for the program. An applicant may appeal the director's eligibility determination 41.11in writing to the director at any time. The director must rule on any application or appeal 41.12within 30 days of receipt of all documentation that the director requires. Upon receiving 41.13an application with insufficient documentation, the director must notify the applicant 41.14within 30 days of receipt of the application that the application is being suspended pending 41.15receipt by the director of sufficient documentation from the applicant. The decision of the 41.16director regarding an appeal is final; however, an applicant whose appeal of an eligibility 41.17determination has been rejected by the director may submit an additional appeal of that 41.18determination in writing to the director at any time that the applicant is able to provide 41.19substantively significant additional information regarding the applicant's eligibility for the 41.20program. An approval of an applicant's eligibility by the director following an appeal by 41.21the applicant is not retroactively effective for more than one year or the semester of the 41.22person's original application, whichever is later. 41.23 Subd. 6. Benefit amount. (a) On approval by the director of an applicant's 41.24eligibility for the program, the applicant shall be awarded, on a funds-available basis, 41.25the educational assistance under the program for use at any time according to program 41.26rules at any eligible institution. 41.27 (b) The amount of educational assistance in any semester or term for an eligible 41.28person must be determined by subtracting from the eligible person's cost of attendance 41.29at that eligible public institution or, in the case of an eligible private institution, the cost 41.30of attendance for a comparable program at the Twin Cities campus of the University of 41.31Minnesota, the amount the person received or was eligible to receive in that semester 41.32or term from: 41.33 (1) the federal Pell Grant; 41.34 (2) the state grant program under section 136A.121; 41.35 (3) the tuition and textbook reimbursement grant program under section 192.501, 41.36subdivision 2; and 42.1 (4) any federal military or veterans educational benefits including but not limited 42.2to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 42.3vocational rehabilitation benefits, and any other federal benefits associated with the 42.4person's status as a veteran, except veterans disability payments from the United States 42.5Veterans Administration. 42.6 (c) The amount of education assistance for any eligible person who is a full-time 42.7student must not exceed any of the following amounts: 42.8(1) $1,000 per semester or term of enrollment; 42.9(2) $3,000 per state fiscal year; and 42.10(3) $10,000 total. 42.11For a part-time student, the amount of education assistance must not exceed $500 42.12per semester or term of enrollment. For the purpose of this paragraph, a part-time 42.13undergraduate student is a student taking fewer than 12 credits for a semester or term 42.14of enrollment and a part-time graduate student is a student considered part time by the 42.15eligible institution the graduate student is attending. 42.16EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 42.17qualifying coursework taken on or after that date. 42.18 Sec. 57. REPEALER. 42.19(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 5, and 6; 42.20135A.032; 135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; and 42.21136A.1702, are repealed. 42.22(b) Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; 42.23and 4, subdivision 5, are repealed. 42.26 Section 1. [136A.615] CITATION. 42.27 Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 42.28Out-of-State Public Postsecondary Education Act." 42.29 Sec. 2. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read: 42.30 Subd. 3. School. "School" means: 42.31 (1) any individual, partnership, company, firm, society, trust, association, 42.32corporation, or any combination thereof, which 43.1 43.2instructional program or course leading to a degree whether or not for profit; 43.3 43.4 43.5 43.6 43.7 43.8 (2) any public postsecondary educational institution located in another state or 43.9country which offers or makes available to a Minnesota resident any course, program or 43.10educational activity which does not require the leaving of the state for its completion 43.11 (3) any individual, entity, or postsecondary institution located in another state 43.12that contracts with any school located within the state of Minnesota for the purpose of 43.13providing educational programs, training programs, or awarding postsecondary credits 43.14or continuing education credits to Minnesota residents that may be applied to a degree 43.15program. 43.16 Sec. 3. Minnesota Statutes 2006, section 136A.63, is amended to read: 43.17136A.63 REGISTRATION. 43.18 All schools located within Minnesota and all schools located outside Minnesota 43.19which offer degree programs or courses within Minnesota shall register annually with 43.20the office. 43.21 Sec. 4. Minnesota Statutes 2006, section 136A.65, subdivision 1, is amended to read: 43.22 Subdivision 1. Prohibition. No school subject to registration shall grant a degree 43.23unless such degree and its underlying curriculum, is approved by the office, nor shall 43.24any school subject to registration use the name "college," "academy," "institute" or 43.25"university" in its name without approval by the office. 43.26 Sec. 5. Minnesota Statutes 2006, section 136A.65, is amended by adding a subdivision 43.27to read: 43.28 Subd. 1a. Accreditation; requirement. No school shall be registered or authorized 43.29to offer any degree at any level unless such school is accredited by an agency recognized 43.30by the United States Department of Education for purposes of eligibility to participate in 43.31federal financial aid programs, Title IV. 44.1 Sec. 6. Minnesota Statutes 2006, section 136A.653, is amended to read: 44.2136A.653 EXEMPTIONS. 44.3 Subdivision 1. Exemption. A school that is subject to licensing by the office under 44.4chapter 141, is exempt from the provisions of sections 44.5The determination of the office as to whether a particular school is subject to regulation 44.6under chapter 141 is final for the purposes of this exemption. 44.7 Subd. 2. Educational program; nonprofit organizations. Educational programs 44.8which are sponsored by a bona fide and nonprofit trade, labor, business, professional 44.9or fraternal organization, which programs are conducted solely for that organization's 44.10membership or for the members of the particular industries or professions served by that 44.11organization, and which are not available to the public on a fee basis, are exempted from 44.12the provisions of sections 44.13 Subd. 3. Educational program; business firms. Educational programs which are 44.14sponsored by a business firm for the training of its employees or the employees of other 44.15business firms with which it has contracted to provide educational services at no cost to the 44.16employees are exempted from the provisions of sections 44.17 Subd. 4. Voluntary submission. Any school or program exempted from the 44.18provisions of sections 44.19may voluntarily submit to the provisions of those sections. 44.20 Sec. 7. Minnesota Statutes 2006, section 136A.657, subdivision 1, is amended to read: 44.21 Subdivision 1. Exemption. Any school or any department or branch of a school (a) 44.22which is substantially owned, operated or supported by a bona fide church or religious 44.23organization; (b) whose programs are primarily designed for, aimed at and attended by 44.24persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 44.25church or religious organization; and (c) whose programs are primarily intended to prepare 44.26its students to become ministers of, to enter into some other vocation closely related to, or 44.27to conduct their lives in consonance with, the particular faith of that church or religious 44.28organization, is exempt from the provisions of sections 44.29 Sec. 8. Minnesota Statutes 2006, section 136A.657, subdivision 2, is amended to read: 44.30 Subd. 2. Limitation. This exemption shall not extend to any school or to any 44.31department or branch of a school, or program of the school, which through advertisements 44.32or solicitations represents to any students or prospective students that the school, its 44.33aims, goals, missions or purposes or its programs are different from those described in 44.34subdivision 1. This exemption shall not extend to any school which represents to any 45.1student or prospective student that the major purpose of its programs is to prepare the 45.2student for a vocation not closely related to that particular religious faith, or to provide 45.3the student with a general educational program recognized by other schools or the 45.4broader educational, business or social community as being substantially equivalent to 45.5the educational programs offered by schools or departments or branches of schools 45.6which are not exempt from sections 45.7pursuant thereto. 45.8 Sec. 9. Minnesota Statutes 2006, section 136A.657, subdivision 3, is amended to read: 45.9 Subd. 3. Scope. Nothing in sections 45.10adopted pursuant thereto, shall be interpreted as permitting the office to determine the 45.11truth or falsity of any particular set of religious beliefs. 45.12 Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended by adding a 45.13subdivision to read: 45.14 Subd. 4. Statement required; religious nature. Any degree awarded upon 45.15completion of a religiously exempt program shall include descriptive language to make 45.16the religious nature of the degree clear. 45.17 Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read: 45.18136A.66 LIST. 45.19 The office shall maintain a list of 45.20degrees and schools authorized to use the name "college," "academy," "institute" or 45.21"university," and shall make such list available to the public. 45.22 Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read: 45.23136A.67 UNAUTHORIZED REPRESENTATIONS. 45.24 45.25 45.26 45.27employees, may represent in advertising and shall disclose in catalogs, applications, and 45.28enrollment materials that the school is registered with the office by prominently displaying 45.29the following statement: "(Name of school) is registered as a private institution with the 45.30Minnesota Office of Higher Education pursuant to Minnesota Statutes, sections 136A.615 45.31to 136A.71. Registration is not an endorsement of the institution. Credits earned at the 45.32institution may not transfer to all other institutions". 46.1 Sec. 13. Minnesota Statutes 2006, section 136A.68, is amended to read: 46.2136A.68 RECORDS. 46.3 46.4 46.5 46.6 46.7 46.8 46.9record for each student for 50 years from the last date of the student's attendance. A 46.10registered school offering distance instruction to a student located in Minnesota shall 46.11maintain a permanent record for each Minnesota student for 50 years from the last date of 46.12the student's attendance. Records include a student's academic transcript, documents, and 46.13files containing student data about academic credits earned, courses completed, grades 46.14awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 46.15school shall submit a plan that meets the following requirements: 46.16 (1) at least one copy of the records must be held in a secure, fireproof depository or 46.17duplicate records must be maintained off-site in a secure location and manner approved 46.18by the office; 46.19 (2) an appropriate official must be designated to provide a student with copies of 46.20records or a transcript upon request; 46.21 (3) an alternative method approved by the office, of complying with clauses (1) and 46.22(2), must be established if the school ceases to exist; and 46.23 (4) a continuous surety bond must be filed with the office in an amount not to exceed 46.24$20,000 if the school has no binding agreement approved by the office for preserving 46.25student records. The bond shall run to the state of Minnesota. 46.26 Sec. 14. Minnesota Statutes 2006, section 136A.69, is amended to read: 46.27136A.69 FEES. 46.28 Subdivision 1. Registration fees. The office shall collect reasonable registration 46.29fees that are sufficient to recover, but do not exceed, its costs of administering the 46.30registration program. The office shall charge $1,100 for initial registration fees and $950 46.31for annual renewal fees. 46.32 Subd. 2. Degree level addition fee. The office processing fee for adding a degree 46.33level to an existing program is $2,000 per program. 47.1 Subd. 3. Program addition fee. The office processing fee for adding a program 47.2that represents a significant departure in the objectives, content, or method of delivery of 47.3programs that are currently offered by the school is $500 per program. 47.4 Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit 47.5or outside consultant is necessary to review or evaluate any new or revised program, the 47.6office shall be reimbursed for the expenses incurred related to the review as follows: 47.7 (1) $300 for the team base fee or for a paper review conducted by a consultant if the 47.8office determines that a fact-finding visit is not required; 47.9 (2) $300 for each day or part of a day per on-site team member; and 47.10 (3) the actual cost of customary meals, lodging, and related travel expenses incurred 47.11by team members. 47.12 Subd. 5. Modification fee. The fee for modification of any existing program is 47.13$100 and is due if there is: 47.14 (1) an increase or decrease of 25 percent or more, from the original date of program 47.15approval, in clock hours, credit hours, or calendar length of an existing program; 47.16 (2) a change in academic measurement from clock hours to credit hours or vice 47.17versa; or 47.18 (3) an addition or alteration of courses that represent a 25 percent change or more in 47.19the objectives, content, or methods of delivery. 47.20 Sec. 15. [136A.705] PENALTY. 47.21 The director may assess fines for violations of a provision of sections 136A.615 to 47.22136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 47.23shall be a separate violation and fines shall not exceed $500 per day per violation. 47.24Amounts received under this section must be deposited into the special revenue fund and 47.25may be used for the purposes in sections 136A.615 to 136A.71. 47.26 Sec. 16. Minnesota Statutes 2006, section 136A.71, is amended to read: 47.27136A.71 INJUNCTION. 47.28 Upon application of the attorney general the district courts shall have jurisdiction to 47.29enjoin any violations of sections 47.30 Sec. 17. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read: 47.31 Subd. 1a. Office of Higher Education; office. "Office of Higher Education" or 47.32"office" means the Minnesota Office of Higher Education. 48.1 Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read: 48.2 Subd. 5. School. "School" means any person, within or outside the state, who 48.3maintains, advertises, administers, solicits for, or conducts any program 48.4less than an associate degree level 48.5 48.6under sections 136A.615 to 136A.71, and is not specifically exempted by section 48.7or 141.37. 48.8 Sec. 19. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read: 48.9 Subdivision 1. Required. A school must not maintain, advertise, solicit for, 48.10administer, or conduct any program in Minnesota without first obtaining a license from 48.11the office. 48.12 Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read: 48.13 Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 48.14conducts, solicits for, or advertises within the state of Minnesota any program, unless the 48.15applicant files with the office a continuous corporate surety bond written by a company 48.16authorized to do business in Minnesota conditioned upon the faithful performance of all 48.17contracts and agreements with students made by the applicant. 48.18 (b) The amount of the surety bond shall be ten percent of the preceding year's gross 48.19income from student tuition, fees, and other required institutional charges, but in no event 48.20less than $10,000 nor greater than $250,000, except that a school may deposit a greater 48.21amount at its own discretion. A school in each annual application for licensure must 48.22compute the amount of the surety bond and verify that the amount of the surety bond 48.23complies with this subdivision, unless the school maintains a surety bond equal to at least 48.24$250,000. A school that operates at two or more locations may combine gross income 48.25from student tuition, fees, and other required institutional charges for all locations for the 48.26purpose of determining the annual surety bond requirement. The gross tuition and fees 48.27used to determine the amount of the surety bond required for a school having a license for 48.28the sole purpose of recruiting students in Minnesota shall be only that paid to the school 48.29by the students recruited from Minnesota. 48.30 (c) The bond shall run to the state of Minnesota and to any person who may have a 48.31cause of action against the applicant arising at any time after the bond is filed and before it 48.32is canceled for breach of any contract or agreement made by the applicant with any student. 48.33The aggregate liability of the surety for all breaches of the conditions of the bond shall not 48.34exceed the principal sum deposited by the school under paragraph (b). The surety of any 49.1bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 49.2of liability for any breach of condition occurring after the effective date of cancellation. 49.3 (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 49.4sum equal to the amount of the required surety bond in cash, or securities as may be 49.5legally purchased by savings banks or for trust funds in an aggregate market value equal 49.6to the amount of the required surety bond. 49.7 (e) Failure of a school to post and maintain the required surety bond or deposit under 49.8paragraph (d) 49.9 Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read: 49.10 Subd. 7. Minimum standards. A license shall be issued if the office first 49.11determines: 49.12 (1) that the applicant has a sound financial condition with sufficient resources 49.13available to: 49.14 (i) meet the school's financial obligations; 49.15 (ii) refund all tuition and other charges, within a reasonable period of time, in the 49.16event of dissolution of the school or in the event of any justifiable claims for refund against 49.17the school by the student body; 49.18 (iii) provide adequate service to its students and prospective students; and 49.19 (iv) maintain and support the school; 49.20 (2) that the applicant has satisfactory facilities with sufficient tools and equipment 49.21and the necessary number of work stations to prepare adequately the students currently 49.22enrolled, and those proposed to be enrolled; 49.23 (3) that the applicant employs a sufficient number of qualified teaching personnel to 49.24provide the educational programs contemplated; 49.25 (4) that the school has an organizational framework with administrative and 49.26instructional personnel to provide the programs and services it intends to offer; 49.27 (5) that the premises and conditions under which the students work and study are 49.28sanitary, healthful, and safe, according to modern standards; 49.29 (6) that the quality and content of each occupational course or program of study 49.30provides education and adequate preparation to enrolled students for entry level positions 49.31in the occupation for which prepared; 49.32 (7) that the living quarters which are owned, maintained, recommended, or approved 49.33by the applicant for students are sanitary and safe; 49.34 (8) that the contract or enrollment agreement used by the school complies with 49.35the provisions in section 50.1 (9) that contracts and agreements do not contain a wage assignment provision or a 50.2confession of judgment clause; and 50.3 (10) that there has been no adjudication of fraud or misrepresentation in any 50.4criminal, civil, or administrative proceeding in any jurisdiction against the school or its 50.5owner, officers, agents, or sponsoring organization. 50.6 Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read: 50.7 Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 50.8a school, the school shall furnish to the office a catalog, brochure, or electronic display 50.9including: 50.10 (1) identifying data, such as volume number and date of publication; 50.11 (2) name and address of the school and its governing body and officials; 50.12 (3) a calendar of the school showing legal holidays, beginning and ending dates of 50.13each course quarter, term, or semester, and other important dates; 50.14 (4) the school policy and regulations on enrollment including dates and specific 50.15entrance requirements for each program; 50.16 (5) the school policy and regulations about leave, absences, class cuts, make-up 50.17work, tardiness, and interruptions for unsatisfactory attendance; 50.18 (6) the school policy and regulations about standards of progress for the student 50.19including the grading system of the school, the minimum grades considered satisfactory, 50.20conditions for interruption for unsatisfactory grades or progress, a description of any 50.21probationary period allowed by the school, and conditions of reentrance for those 50.22dismissed for unsatisfactory progress; 50.23 (7) the school policy and regulations about student conduct and conditions for 50.24dismissal for unsatisfactory conduct; 50.25 (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 50.26activities, laboratory fees, service charges, rentals, deposits, and all other charges; 50.27 (9) the school policy and regulations, including an explanation of section 50.28about refunding tuition, fees, and other charges if the student does not enter the program, 50.29withdraws from the program, or the program is discontinued; 50.30 (10) a description of the available facilities and equipment; 50.31 (11) a course outline syllabus for each course offered showing course objectives, 50.32subjects or units in the course, type of work or skill to be learned, and approximate time, 50.33hours, or credits to be spent on each subject or unit; 50.34 (12) the school policy and regulations about granting credit for previous education 50.35and preparation; 51.1 (13) a notice to students relating to the transferability of any credits earned at the 51.2school to other institutions; 51.3 (14) a procedure for investigating and resolving student complaints; and 51.4 51.5 A school that is exclusively a distance education school is exempt from clauses 51.6(3) and (5). 51.7 Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read: 51.8 Subd. 10. Placement records. (a) Before a license is 51.9that offers, advertises or implies a placement service, the school shall file with the office 51.10for the past year and thereafter at reasonable intervals determined by the office, a certified 51.11copy of the school's placement record, containing a list of graduates, a description of their 51.12jobs, names of their employers, and other information as the office may prescribe. 51.13 (b) Each school that offers a placement service shall furnish to each prospective 51.14student, upon request, prior to enrollment, written information concerning the percentage 51.15of the previous year's graduates who were placed in the occupation for which prepared or 51.16in related employment. 51.17 Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read: 51.18 Subd. 12. Permanent records. A school licensed under this chapter and located 51.19in Minnesota shall maintain a permanent record for each student for 50 years from the 51.20last date of the student's attendance. A school licensed under this chapter and offering 51.21distance instruction to a student located in Minnesota shall maintain a permanent record 51.22for each Minnesota student for 50 years from the last date of the student's attendance. 51.23Records include school transcripts, documents, and files containing student data about 51.24academic credits earned, courses completed, grades awarded, degrees awarded, and 51.25periods of attendance. To preserve permanent records, a school shall submit a plan that 51.26meets the following requirements: 51.27 (1) at least one copy of the records must be held in a secure, fireproof depository; 51.28 (2) an appropriate official must be designated to provide a student with copies of 51.29records or a transcript upon request; 51.30 (3) an alternative method, approved by the office, of complying with clauses (1) and 51.31(2) must be established if the school ceases to exist; and 51.32 (4) a continuous surety bond must be filed with the office in an amount not to exceed 51.33$20,000 if the school has no binding agreement approved by the office, for preserving 52.1student records 52.2to the state of Minnesota. 52.3 Sec. 25. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read: 52.4 Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 52.5renewal licensure application is: 52.6 (1) for a category A school, as determined by the office, the fee is $865 if the school 52.7offers one program or $1,150 if the school offers two or more programs; and 52.8 (2) for a category B or C school, as determined by the office, the fee is $430 if the 52.9school offers one program or $575 if the school offers two or more programs. 52.10 (b) If a license renewal application is not received by the office by the close of 52.11business at least 60 days before the expiration of the current license, a late fee of $100 52.12per business day, not to exceed $3,000, shall be assessed. 52.13 Sec. 26. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read: 52.14 Subd. 2. Contract information. A contract or enrollment agreement used by a 52.15school must include at least the following: 52.16 (1) the name and address of the school, clearly stated; 52.17 (2) a clear and conspicuous disclosure that the agreement is a legally binding 52.18instrument upon written acceptance of the student by the school unless canceled under 52.19section 52.20 (3) the school's cancellation and refund policy that shall be clearly and conspicuously 52.21entitled "Buyer's Right to Cancel"; 52.22 (4) a clear statement of total cost of the program including tuition and all other 52.23charges; 52.24 (5) the name and description of the program, including the number of hours or 52.25credits of classroom instruction, or distance instruction, that shall be included; and 52.26 (6) a clear and conspicuous explanation of the form and means of notice the student 52.27should use in the event the student elects to cancel the contract or sale, the effective 52.28date of cancellation, and the name and address of the seller to which the notice should 52.29be sent or delivered. 52.30 The contract or enrollment agreement must not include a wage assignment provision 52.31or a confession of judgment clause. 52.32 Sec. 27. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read: 53.1 Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 53.2on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 53.3carried, it shall occur on the date the notice is delivered to the school. If a student has not 53.4attended 53.5indicate an intent to continue in school or otherwise making arrangements concerning the 53.6absences, the student is considered to have withdrawn from school for all purposes as of 53.7the student's last documented date of attendance. 53.8 Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read: 53.9 Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 53.10promissory instrument received as payment of tuition or other charge prior to completion 53.11of 50 percent of the program 53.12by assignment to purchasers who shall be subject to all defenses available against the 53.13school named as payee. 53.14 Sec. 29. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read: 53.15 Subdivision 1. 53.16 53.17 53.18agent, or solicitor may 53.19catalogs, applications, and enrollment materials that the school 53.20is duly licensed by the state 53.21statement: 53.22"(Name of school) is licensed as a private career school with the Minnesota Office of 53.23Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 53.24institution may not transfer to all other institutions. 53.25 53.26 Sec. 30. Minnesota Statutes 2006, section 141.32, is amended to read: 53.27141.32 PENALTY. 53.28 53.29 53.30 53.31 53.32violations of a provision of this chapter. Each day's failure to comply with a provision 53.33of this chapter shall be a separate violation and fines shall not exceed $500 per day per 54.1violation. Amounts received under this section must be deposited into the special revenue 54.2fund and may be used for the purposes of this chapter. 54.3 Sec. 31. Minnesota Statutes 2006, section 141.35, is amended to read: 54.4141.35 EXEMPTIONS. 54.5 Sections 54.6 (1) public postsecondary institutions; 54.7 (2) 54.8 54.9 54.10 54.11 (3) schools of nursing accredited by the state Board of Nursing or an equivalent 54.12public board of another state or foreign country; 54.13 (4) private schools complying with the requirements of section 54.144 54.15 (5) courses taught to students in a valid apprenticeship program taught by or 54.16required by a trade union; 54.17 (6) schools exclusively engaged in training physically or mentally disabled persons 54.18for the state of Minnesota; 54.19 (7) schools licensed by boards authorized under Minnesota law to issue licenses; 54.20 (8) schools and educational programs, or training programs, contracted for by 54.21persons, firms, corporations, government agencies, or associations, for the training of their 54.22own employees, for which no fee is charged the employee; 54.23 (9) schools engaged exclusively in the teaching of purely avocational, recreational, 54.24or remedial subjects as determined by the office; 54.25 54.26 54.27 54.28or fraternal organization, solely for that organization's membership; 54.29 54.30under section 54.31the purposes of this clause, "fine arts" means activities resulting in artistic creation or 54.32artistic performance of works of the imagination which are engaged in for the primary 54.33purpose of creative expression rather than commercial sale or employment. In making 54.34this determination the office may seek the advice and recommendation of the Minnesota 54.35Board of the Arts; 55.1 55.2requirements for licensure or certification in a profession, that have been approved by 55.3a legislatively or judicially established board or agency responsible for regulating the 55.4practice of the profession, and that are offered exclusively to an individual practicing 55.5the profession; 55.6 55.7undergraduate, graduate, postgraduate, or occupational licensing and occupational 55.8entrance examinations; 55.9 55.10instruction that are not part of the curriculum for an occupation or entry level employment; 55.11 55.12development, modeling, or acting; 55.13 55.14individual student, that are not part of the curriculum for an occupation or are not intended 55.15to prepare a person for entry level employment; and 55.16 55.17office, engaged exclusively in offering distance instruction that are located in and 55.18regulated by other states or jurisdictions. 55.19 Sec. 32. [141.37] EXEMPTION; RELIGIOUS SCHOOLS. 55.20 Subdivision 1. Exemption. Any school or any department or branch of a school (1) 55.21which is substantially owned, operated, or supported by a bona fide church or religious 55.22organization; (2) whose programs are primarily designed for, aimed at, and attended by 55.23persons who sincerely hold or seek to learn the particular religious faith or beliefs of 55.24that church or religious organization; and (3) whose programs are primarily intended to 55.25prepare its students to become ministers of, to enter into some other vocation closely 55.26related to, or to conduct their lives in consonance with, the particular faith of that church 55.27or religious organization, is exempt from the provisions of sections 141.21 to 141.32. 55.28 Subd. 2. Limitations. This exemption shall not extend to any school or to 55.29any department or branch of a school, or program of such school which, through 55.30advertisements or solicitations, represents to any students or prospective students that 55.31the school, its aims, goals, missions or purposes, or its programs are different from 55.32those described in subdivision 1. This exemption shall not extend to any school which 55.33represents to any student or prospective student that the major purpose of its programs 55.34is to prepare the student for a vocation not closely related to that particular religious 55.35faith, or to provide the student with a general educational program recognized by other 56.1schools or the broader educational, business, or social community as being substantially 56.2equivalent to the educational programs offered by schools or departments or branches of 56.3schools which are not religious in nature and are not exempt from chapter 141 and rules 56.4adopted under this chapter. 56.5 Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be 56.6interpreted as permitting the office to determine the truth or falsity of any particular set 56.7of religious beliefs. 56.8 Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other 56.9formal recognition awarded upon completion of any religiously exempt program shall 56.10include descriptive language to make the religious nature of the award clear. 56.11 Sec. 33. REPEALER. 56.12Minnesota Statutes 2006, section 136A.61, is repealed.
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