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S.F. No. 1989, 3rd Engrossment - 85th Legislative Session (2007-2008) Posted on May 09, 2007
1.2relating to higher education; appropriating money; amending certain Minnesota
1.3Office of Higher Education provisions; establishing new grant and loan 1.4repayment programs; amending higher education programs; requiring certain 1.5studies; making technical changes; requiring summary statistics in required 1.6reports; repealing certain data sharing and collecting requirements; modifying 1.7financial aid programs; establishing the Minnesota GI Bill program; regulating 1.8private higher education institutions; providing penalties; amending certain 1.9grant programs; eliminating obsolete references; authorizing control of certain 1.10decreasing students' share of attendance; increasing revenue bond limits; 1.11authorizing control of certain deposits; authorizing lease agreements; authorizing 1.12interest rate swap; providing for the Textbook Disclosure, Pricing, and Access 1.13Act;amending Minnesota Statutes 2006, sections 13.322, subdivision 3; 1.1416B.70, by adding a subdivision; 41D.01, subdivision 1; 135A.01; 135A.031, 1.15subdivisions 1, 7; 135A.034, subdivision 1; 135A.51, subdivision 2; 135A.52, 1.16subdivisions 1, 2; 136A.031, subdivision 5; 136A.08, subdivision 7; 136A.101, 1.17subdivisions 4, 5a; 136A.121, subdivisions 5, 7a, by adding a subdivision; 1.18136A.125, subdivisions 2, 4; 136A.15, subdivisions 1, 6; 136A.16, subdivision 1.198, by adding a subdivision; 136A.1702; 136A.233, subdivision 3; 136A.29, 1.20subdivision 9; 136A.61; 136A.62, subdivision 3; 136A.63; 136A.64; 136A.65; 1.21136A.657, by adding a subdivision; 136A.66; 136A.67; 136A.68; 136A.69; 1.22136A.861, subdivisions 1, 2, 3, 6; 136F.02, subdivision 1; 136F.03, subdivisions 1.233, 4; 136F.42, subdivision 1; 136F.58; 136F.71, subdivision 2, by adding a 1.24subdivision; 136G.11, subdivision 5; 137.0246; 141.21, subdivisions 1a, 1.255; 141.25, subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, 1.26subdivision 2; 141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 1.27141.35; 197.775, subdivision 4; proposing coding for new law in Minnesota 1.28Statutes, chapters 135A; 136A; 136F; 137; 141; 197; repealing Minnesota 1.29Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, 6; 135A.032; 1.30135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; Laws 2001, 1.31First Special Session chapter 1, article 1, sections 3, subdivision 3; 4, subdivision 1.325. 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.
2.28agencies and for the purposes specified in this article. The appropriations are from the 2.29general fund, or another named fund, and are available for the fiscal years indicated 2.30for each purpose. The figures "2008" and "2009" used in this article mean that the 2.31appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.32June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.33year 2009. "The biennium" is fiscal years 2008 and 2009.
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 maximum for 3.12students in four-year programs is $9,838 in 3.13each year for students in four-year programs, 3.14and for students in two-year programs, is 3.15$6,114 in the first year and $5,808 in the 3.16second year. 3.17This appropriation sets the living and 3.18miscellaneous expense allowance at $5,900 3.19each year.
3.22benefits under Minnesota Statutes, section 3.23299A.45, to dependent children under age 23 3.24and to the spouses of public safety officers 3.25killed in the line of duty. 3.26If the appropriation in this subdivision for 3.27either year is insufficient, the appropriation 3.28for the other year is available for it.
3.31either year is insufficient, the appropriation 3.32for the other year is available to meet 3.33reciprocity contract obligations.
4.11each year may be used for administrative 4.12expenses for the program under Minnesota 4.13Statutes, section
4.17transfer to the University of Minnesota and 4.18$1,000,000 is for transfer to the Minnesota 4.19State Colleges and Universities to provide 4.20courses under Minnesota Statutes, section 4.21124D.09, subdivision 10, to high school 4.22students living in remote and underserved 4.23areas where the school district lacks the 4.24resources to provide academically rigorous 4.25educational opportunities, such as Advanced 4.26Placement and International Baccalaureate 4.27programs. Courses may be delivered by 4.28a high school or postsecondary faculty 4.29member, online, or through distance 4.30education. Students who successfully 4.31complete a course must receive college 4.32credit at no cost to the student. The office 4.33must report to the committees of the 4.34legislature with responsibility for higher 5.1education finance by January 15, 2009, on the 5.2program outcomes with recommendations on 5.3continuing and expanding the program. 5.4(b) Of this amount, $2,000,000 is to increase 5.5Intervention for College Attendance Program 5.6(ICAP) grants under Minnesota Statutes, 5.7section 136A.861. In addition to other 5.8grants, at least two grants must be awarded 5.9to applicants that include a scholarship 5.10component to the project for which they are 5.11seeking funding. The scholarships must be 5.12awarded to individuals who are participating 5.13in ICAP and successfully completed a 5.14sequence of rigorous courses as identified 5.15by the school district the student attended. 5.16Money for the scholarship component of the 5.17project must be raised from private funds.
5.20student and parent information and the get 5.21ready outreach program. 5.22$240,000 each year is for grants to increase 5.23campus-community collaboration and service 5.24learning statewide, including operations of 5.25the Minnesota campus compact, grants to 5.26member institutions and grants for member 5.27institution initiatives. For every $1 in state 5.28funding, grant recipients must contribute $2 5.29in campus or community-based support. 5.30$250,000 in the first year is for a grant to 5.31Augsburg College for the purpose of its 5.32Step UP program to provide educational 5.33opportunities to chemically dependent 5.34students and to work with other public 5.35and private colleges in Minnesota to help 6.1replicate this program. This is a onetime 6.2appropriation. 6.3$100,000 each year must be transferred to 6.4the Loan Repayment Assistance Program, 6.5Inc., for loan repayment assistance awards 6.6to attorneys who enter public interest law to 6.7ensure that low-income and disadvantaged 6.8populations have access to competent legal 6.9counsel. 6.10$50,000 in fiscal year 2008 is for the 6.11Washington Center for Internships and 6.12Academic Seminars for a pilot program 6.13for scholarships for students enrolling in a 6.14Minnesota four-year college or university 6.15beginning in the fall semester of 2007. 6.16The appropriation shall be available only 6.17on a dollar-for-dollar match basis for 6.18funds received from nonstate sources. 6.19The Washington Center for Internships 6.20and Academic Seminars must work with 6.21Minnesota Colleges and Universities to 6.22ensure that the scholarships will go to 6.23economically disadvantaged Minnesota 6.24students, students with demonstrated need of 6.25financial assistance, and students traditionally 6.26underrepresented in higher education, and 6.27will work to ensure racial, ethnic, and gender 6.28diversity, as well as urban/rural balance. This 6.29is a onetime appropriation. 6.30$250,000 each year is for the teacher 6.31education and compensation helps (TEACH) 6.32and the Minnesota early childhood teacher 6.33programs in Minnesota Statutes, section 6.34136A.126.
7.2residency program. This appropriation 7.3shall be used to support up to 18 resident 7.4physicians each year in family practice at 7.5United Family Medicine residency programs 7.6and shall prepare doctors to practice family 7.7care medicine in underserved rural and 7.8urban areas of the state. It is intended that 7.9this program will improve health care in 7.10underserved communities, provide affordable 7.11access to appropriate medical care, and 7.12manage the treatment of patients in a more 7.13cost-effective manner. The funding base for 7.14this program is $448,000 in fiscal year 2010 7.15and $467,000 in fiscal year 2011.
7.19does not cancel, but is available for the 7.20second year.
7.23may transfer unencumbered balances from 7.24the appropriations in this section to the state 7.25grant appropriation, the interstate tuition 7.26reciprocity appropriation, the child care 7.27grant appropriation, the state work study 7.28appropriation, the public safety officers' 7.29survivors appropriation, and the Minnesota 7.30college savings plan appropriation. Transfers 7.31from the child care or state work study 7.32appropriations may only be made to the 7.33extent there is a projected surplus in the 7.34appropriation. A transfer may be made 7.35only with the prior written approval of the 8.1commissioner of finance and prior written 8.2notice to the chairs of the senate and house 8.3committees with jurisdiction over higher 8.4education finance.
8.10purpose are specified in the following 8.11subdivisions.
8.14increase in each year for Cook County 8.15Higher Education to provide educational 8.16programs and academic support services to 8.17remote regions in northeastern Minnesota. 8.18Cook County Higher Education must 8.19continue to provide information to the Board 8.20of Trustees of the Minnesota State Colleges 8.21and Universities on the number of students 8.22served, credit hours delivered, and services 8.23provided to students. 8.24This appropriation includes funding 8.25for operation and maintenance of the 8.26system, including technology infrastructure 8.27improvements to deliver more online 8.28programs and services to students; and 8.29funding for initiatives to recruit and retain 8.30students traditionally underrepresented in 8.31higher education to help prepare students 8.32for college, encourage their enrollment, and 8.33provide services that enable them to continue 8.34successfully to graduation. 9.1If the Board of Trustees decides to implement 9.2other "Strategic Advancements" initiatives, 9.3funding must be from internal reallocation of 9.4existing resources or enhanced productivity. 9.5It is the expectation of the legislature that the 9.6board will hold tuition increases to no more 9.7than four percent per year for fiscal years 9.82008 and 2009. 9.9This appropriation includes funding to 9.10eliminate nonresident undergraduate 9.11tuition at Saint Paul College, Minneapolis 9.12Community and Technical College, 9.13Rochester Community and Technical 9.14College, Inver Hills Community College, St. 9.15Cloud Technical College, and Normandale 9.16Community College. In addition, the Board 9.17of Trustees must not implement a nonresident 9.18undergraduate tuition rate at a community 9.19college, technical college, or consolidated 9.20community and technical college that does 9.21not have such a rate as of May 1, 2007, except 9.22for a student who is a resident of a state that 9.23has entered into a reciprocity agreement 9.24under Minnesota Statutes, section 136A.08. 9.25This appropriation includes funding 9.26to identify and improve on practices 9.27for selecting and purchasing textbooks 9.28and course materials that are used by 9.29students. The board, in collaboration with 9.30the Minnesota State University Student 9.31Association (MSUSA) and the Minnesota 9.32State College Student Association (MSCSA) 9.33must develop and implement pilot projects 9.34with this appropriation to address the 9.35financial burden that textbook prices and 9.36requirements place on students. These 10.1projects may include textbook rental 10.2programs, cooperative purchasing efforts, 10.3training, and education and awareness 10.4programs for students and faculty on cost 10.5considerations and textbook options. The 10.6student associations must be fully involved in 10.7the development and implementation of any 10.8project using this appropriation. The board 10.9must report, with input from MSUSA and 10.10MSCSA, to the committees of the legislature 10.11responsible for higher education finance by 10.12February 15, 2009, on the success of the pilot 10.13projects. This money is available until June 10.1430, 2009. 10.15This appropriation includes funding for 10.16community-based energy development 10.17pilot projects at Mesabi Range Technical 10.18and Community College, the Minnesota 10.19West Community and Technical College, 10.20Riverland Community College, and Inver 10.21Hills Community College. Inver Hills 10.22Community College must partner with 10.23the city of Inver Grove Heights on a 10.24community-based pilot project and each 10.25of the other campuses must establish 10.26partnerships for community-based energy 10.27development pilot projects that involve 10.28students and faculty. An allocation for the 10.29pilot project is available to the participating 10.30institutions and the partnerships for the 10.31biennium ending June 30, 2009. 10.32This appropriation includes funding for a 10.33modular clean-room research and training 10.34facility at St. Paul College. This is a onetime 10.35appropriation and is available until expended. 11.1This appropriation includes funding for a 11.2pilot project with the Northeast Minnesota 11.3Higher Education District and high schools 11.4in its area. Up to one-half of the first year's 11.5appropriation may be used to purchase 11.6equipment that is necessary to reestablish 11.7a technical education curriculum in the 11.8area high schools to provide the students 11.9with the technical skills necessary for the 11.10workforce. Students from area high schools 11.11may also access the facilities and faculty of 11.12the Northeast Minnesota Higher Education 11.13District for state-of-the-art technical 11.14education opportunities, including MnSCU's 11.152+2 Pathways initiative. 11.16This appropriation includes funding for St. 11.17Paul College to collaborate with the United 11.18Auto Workers Local 879 to purchase a Ford 11.19Ranger pickup truck to retrofit to run on a 11.20battery-powered motor. This vehicle must 11.21be retrofitted to serve as a prototype that 11.22could be mass-produced at the St. Paul 11.23Ford assembly plant. This is a onetime 11.24appropriation. 11.25This appropriation includes funding for a 11.26grant to a Minnesota public postsecondary 11.27institution with a total student enrollment 11.28under 7,000 students, that has an existing 11.29women's hockey team competing in 11.30Division I in the Western Collegiate Hockey 11.31Association. The institution may use the 11.32grant for equipment, facility improvements, 11.33travel and compensation for coaches, 11.34trainers, and other necessary personnel. This 11.35is a onetime appropriation. 12.1This appropriation includes funding for a 12.2study of student demand and employer needs 12.3for higher education in the Mesabi Range 12.4region of northeastern Minnesota including 12.5the cities of Grand Rapids through Eveleth 12.6to Ely. The board must contract for the 12.7study which must be done in cooperation 12.8with the Board of Regents of the University 12.9of Minnesota, the University of Minnesota, 12.10Duluth, and the Range Association of 12.11Municipalities and Schools, which must act 12.12as the lead agency in coordinating the study. 12.13The study must specify how the identified 12.14regional educational needs can be met by the 12.15University of Minnesota, by the Minnesota 12.16State Colleges and Universities, or through 12.17degree programs offered jointly. The final 12.18report must be submitted to the committees 12.19of the legislature responsible for higher 12.20education finance by January 15, 2008, with 12.21recommendations and plans for the region. 12.22This appropriation includes funding for a 12.23project to establish a center at the Mesabi 12.24Range Community and Technical College in 12.25cooperation with the Iron Range Resources 12.26and Rehabilitation Board (IRRRB) to 12.27enhance the use of eFolio Minnesota by 12.28providing on-site and Internet-based support 12.29and technical assistance to eFolio users to 12.30promote workforce development and access 12.31to workforce information generated through 12.32the eFolio Minnesota system. The board 12.33must enhance the eFolio Minnesota system 12.34as necessary to serve these purposes and 12.35report annually to the legislative committees 13.1responsible for higher education finance on 13.2the outcomes of the center's activities. 13.3Any amounts in the base budget allocated 13.4to pay competitive compensation under 13.5Laws 2005, chapter 107, article 1, section 3, 13.6subdivision 2, must be used only to recruit or 13.7retain quality faculty.
13.10students to add the cost of textbooks and 13.11required course materials purchased at a 13.12campus bookstore, owned by or operated 13.13under a contract with the campus, to the 13.14existing waivers or payment plans for tuition 13.15and fees. 13.16(b) By January 1, 2009, the board must adopt 13.17a policy setting the maximum number of 13.18semester credits required for a baccalaureate 13.19degree at 120 semester credits or the 13.20equivalent and the number of semester 13.21credits required for an associate degree at 13.2260 semester credits or the equivalent. The 13.23board policy may provide for a process 13.24for granting waivers for specific degree 13.25programs in which industry or professional 13.26accreditation standards require a greater 13.27number of semester credits.
14.2purpose are specified in the following 14.3subdivisions.
14.6operation and maintenance of the system 14.7including amounts to advance the University 14.8of Minnesota's efforts to sustain quality 14.9and competitiveness; and funding for the 14.10"Advancing Education" initiatives including 14.11an Ojibwe Indian language program on the 14.12Duluth campus. 14.13This appropriation includes funding to 14.14establish banded tuition at the Morris, 14.15Crookston, and Duluth campuses to reduce 14.16tuition costs for students. 14.17This appropriation includes funding for 14.18scholarships for undergraduate Minnesota 14.19resident students with family income under 14.20$150,000 per year. This appropriation must 14.21be matched with $1.50 of nonstate money for 14.22each $1 of state money. 14.23This appropriation includes funding for the 14.24Center for Transportation Studies to complete 14.25a study to assess public policy options for 14.26reducing the volume of greenhouse gases 14.27emitted from the transportation sector in 14.28Minnesota. The Center for Transportation 14.29Studies must report its preliminary findings 14.30to the legislature by February 1, 2008, and 14.31must issue its full report by June 1, 2008. 14.32This is a onetime appropriation. 14.33This appropriation includes funding to 14.34establish an India Center to improve and 14.35promote relations with India and Southeast 15.1Asia. The center must partner with public 15.2and private organizations in Minnesota to: 15.3(1) foster an understanding of the history, 15.4culture, and values of India; 15.5(2) serve as a resource and catalyst to 15.6promote economic, governmental, and 15.7academic pursuits involving India; and 15.8(3) facilitate educational and business 15.9exchanges and partnerships, collaborative 15.10research, and teaching and training activities 15.11for Minnesota students and teachers. 15.12The Board of Regents may establish an 15.13advisory council to facilitate the mission 15.14and objectives of the India Center and must 15.15report on the progress of the India Center 15.16by February 15, 2008, to the governor 15.17and chairs of the legislative committees 15.18responsible for higher education finance. 15.19This appropriation must be matched by an 15.20equal amount of nonstate money. This is a 15.21onetime appropriation. 15.22This appropriation includes funding to assist 15.23in the formation of the neighborhood alliance 15.24and for projects identified in section 10. The 15.25alliance, the Board of Regents, and the city of 15.26Minneapolis may cooperate on the projects 15.27and may use public services of other entities 15.28to complete all or a portion of a project. This 15.29is a onetime appropriation. 15.30This appropriation includes funding to 15.31establish a Dakota language teacher training 15.32immersion program on the Twin Cities 15.33campus to prepare teachers to teach in 15.34Dakota language immersion programs.
16.3access fund.
16.7Station, Minnesota Extension Service. This 16.8appropriation includes additional funding 16.9to promote alternative livestock research 16.10and outreach, and for an ongoing organic 16.11research and education program. 16.12(2) This appropriation includes funding 16.13for research efforts that demonstrate a 16.14renewed emphasis on the needs of the state's 16.15production agriculture community and a 16.16continued focus on renewable energy derived 16.17from Minnesota biomass resources including 16.18agronomic crops, plant and animal wastes, 16.19and native plants or trees, with priority for 16.20extending the Minnesota vegetable growing 16.21season; fertilizer and soil fertility research 16.22and development; treating and curing human 16.23diseases utilizing plant and livestock cells; 16.24using biofuel production coproducts as 16.25feed for livestock; and a rapid agricultural 16.26response fund for current or emerging 16.27animal, plant, and insect problems affecting 16.28production or food safety. In addition, the 16.29appropriation may be used to secure a facility 16.30and retain current faculty levels for poultry 16.31research currently conducted at UMore Park. 16.32(3) In the area of renewable energy, priority 16.33should be given to projects pertaining to: 16.34biofuel and other energy production from 17.1small grains; alternative bioenergy crops and 17.2cropping systems; and growing, harvesting, 17.3and transporting biomass plant material. 17.4(4) This appropriation includes funding for 17.5the college of food, agricultural, and natural 17.6resources sciences to establish and maintain 17.7a statewide organic research and education 17.8initiative to provide leadership for organic 17.9agronomic, horticultural, livestock, and food 17.10systems research, education, and outreach 17.11and for the purchase of state-of-the-art 17.12laboratory, planting, tilling, harvesting, and 17.13processing equipment necessary for this 17.14project. 17.15(5) By February 1, 2009, the Board 17.16of Regents must report to the legislative 17.17committees with responsibility for agriculture 17.18and higher education finance on the research 17.19and initiatives under this paragraph. 17.20(6) The base appropriation is $52,175,000 17.21each year of the biennium ending June 30, 17.222011. 17.23(7) The Board of Regents of the University 17.24of Minnesota is requested to refrain from 17.25implementing corresponding reductions in 17.26funding for the purposes for which additional 17.27funding is provided.
17.30resident physicians each year in the St. 17.31Cloud Hospital family practice residency 17.32program. The program must prepare doctors 17.33to practice primary care medicine in the rural 17.34areas of the state. The legislature intends 17.35this program to improve health care in rural 18.1communities, provide affordable access to 18.2appropriate medical care, and manage the 18.3treatment of patients in a more cost-effective 18.4manner. 18.5The remainder of this appropriation is for 18.6the rural physicians associates program, the 18.7Veterinary Diagnostic Laboratory, health 18.8sciences research, dental care, and the 18.9Biomedical Engineering Center.
18.12youth mathematics program.
18.15money, industrial relations education, Natural 18.16Resources Research Institute, Center for 18.17Urban and Regional Affairs, Bell Museum of 18.18Natural History, and the Humphrey exhibit. 18.19This appropriation includes additional 18.20funding each year for industrial relations 18.21education. The Board of Regents of the 18.22University of Minnesota is requested to 18.23refrain from implementing corresponding 18.24reductions in funding for this purpose.
18.28collaborative research partnership between 18.29the University of Minnesota and the Mayo 18.30Foundation for research in biotechnology 18.31and medical genomics. For fiscal years 2010 18.32and 2011, the base shall be $8,000,000 in 18.33each year. This appropriation is available 18.34until expended. An annual report on the 19.1expenditure of these funds must be submitted 19.2to the governor and the chairs of the senate 19.3and house committees responsible for higher 19.4education and economic development by 19.5June 30 of each fiscal year.
19.8Center funding under Minnesota Statutes, 19.9section 297F.10, is $22,250,000 each year.
19.13purpose are specified in the following 19.14subdivisions.
19.17each year for each student who is a resident 19.18of Minnesota. The appropriation may be 19.19transferred between years of the biennium to 19.20accommodate enrollment fluctuations. The 19.21funding base for this program is $640,000 in 19.22fiscal year 2010 and $665,000 in fiscal year 19.232011. 19.24It is intended that during the biennium the 19.25Mayo Clinic use the capitation money to 19.26increase the number of doctors practicing in 19.27rural areas in need of doctors.
19.31support for up to 27 residents each year. The 19.32funding base for this program is $660,000 in 20.1fiscal year 2010 and $686,000 in fiscal year 20.22011.
20.6spouses and children of veterans as provided 20.7under Minnesota Statutes, section 197.791. 20.8If the appropriation in this subdivision for 20.9either year is insufficient, the appropriation 20.10for the other year is available for it. 20.11Of this appropriation, no more than three 20.12percent each year may be used for the 20.13administrative costs of operating this 20.14program. 20.15 Sec. 8. FINANCIAL AID PROGRAM STUDIES. 20.16 Subdivision 1. State grant. The Minnesota Office of Higher Education must 20.17conduct an analysis and evaluation of the state grant program to provide information 20.18to the legislature concerning the role of the program in promoting affordable access to 20.19higher education in Minnesota, including promoting access for students traditionally 20.20underrepresented in higher education. The analysis and evaluation must include: 20.21 (1) evaluation of the assigned student share compared to the current and future 20.22income of a student, and analysis of the number of hours a student must work to meet the 20.23assigned student share without borrowing; 20.24 (2) evaluation of the assigned family contribution, how it is determined under the 20.25federal needs analysis, and how it compares to expectations of families in other public 20.26programs; 20.27 (3) analysis of the ways that students and families pay the assigned student share and 20.28the assigned family contribution; 20.29 (4) analysis of the recognized cost of attendance compared to actual attendance 20.30costs and the ability of individuals and families at various income levels in Minnesota to 20.31pay the cost of attendance; 20.32 (5) analysis of the actual living and miscellaneous expenses of students, with 20.33particular attention to differences between traditional and nontraditional students, and 20.34comparison to the amount currently used in the state grant formula; and 21.1 (6) analysis of other parameters of the program considered relevant by the office, 21.2including prorating the state grant amount instead of the budget for the cost of attendance 21.3and changing the definition of full-time enrollment. 21.4Whenever possible, the analysis must include: 21.5 (i) cost estimates and information on how recommended changes affect students at 21.6various income levels and at different higher education institutions in Minnesota; and 21.7 (ii) the distributional effects, by income quintile, of state grant program parameters 21.8on students and families. 21.9The office also shall assess the feasibility of expanding the eligibility for state grants to 21.10include graduate and first professional students pursuing degree programs deemed to be 21.11important to the workforce needs of the state. By February 15, 2008, the Minnesota 21.12Office of Higher Education must report its preliminary findings and recommendations to 21.13the committees in the house of representatives and senate with primary jurisdiction over 21.14higher education policy and finance and workforce development on options to enhance 21.15the targeting of financial aid to state grant recipients, with the final report submitted by 21.16October 1, 2008. 21.17 Subd. 2. Workforce needs. The Minnesota Office of Higher Education must 21.18examine existing financial aid programs that provide loans and grants to students, and the 21.19needs of the workforce for occupations that are currently in demand or are projected to 21.20be in demand in the future and: 21.21 (1) evaluate how effective the financial aid programs are in linking the needs of the 21.22workforce with the student's financial aid needs; 21.23 (2) identify financial aid program options, including loan forgiveness and loan 21.24repayment programs, that provide incentives to students to pursue degrees in occupations: 21.25 (i) with identified unmet workforce needs like speech pathologists; and 21.26 (ii) of social or economic importance to the state; and 21.27 (3) identify mechanisms, such as additional resources, to promote the growth of 21.28occupations of social or economic importance to the state. By February 15, 2008, the office 21.29must report its preliminary findings to the legislative committees with primary jurisdiction 21.30over higher education policy and finance and workforce development, and provide options 21.31and recommendations on ways to enhance the delivery of financial aid to meet the needs of 21.32both students and the state's workforce, with the final report submitted by October 1, 2008. 21.33 Sec. 9. POSTSECONDARY EDUCATION PARTICIPATION STUDY. 21.34 The Minnesota Office of Higher Education shall, by January 15, 2008, report to the 21.35house and senate committees with jurisdiction over higher education policy and finance 22.1on participation in postsecondary education by income, and persistence and graduation 22.2rates of state grant recipients compared to students who did not receive state grants. The 22.3Minnesota Office of Higher Education is authorized to match individual student data from 22.4the student record enrollment database with individual student data from the state grant 22.5database on data elements necessary to perform the study. 22.6 Sec. 10. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 22.7NEIGHBORHOOD ALLIANCE. 22.8 Subdivision 1. Definitions. (a) For purposes of this section, the following terms 22.9have the meanings given them. 22.10 (b) "Alliance" means a representative body of the constituencies, including, but 22.11not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 22.12neighborhood organizations and business associations referenced in the report. 22.13 (c) "Board" means the Board of Regents of the University of Minnesota. 22.14 (d) "Report" means the report and appendix entitled Moving Forward Together: 22.15University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 22.16the legislature in February 2007. 22.17 (e) "University partnership district" or "district" means the area located within the 22.18city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 22.19Como, Prospect Park, and University, as they are defined by the city, and the university's 22.20Minneapolis campus. 22.21 (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 22.22house significant numbers of university students and staff. Transportation and housing 22.23policy analysis and planning must include these areas but they must not be included in 22.24the projects funded through the alliance. 22.25 (g) "University" means the University of Minnesota. 22.26 Subd. 2. Alliance; functions. The alliance may facilitate, initiate, or manage 22.27projects with the board, city, or other public or private entities that are intended to 22.28maintain the university partnership district as a viable place to study, research, and live. 22.29Projects may include, but are not limited to, those outlined in the report, as well as 22.30efforts to involve students in activities to maintain and improve the university partnership 22.31district; cooperative university and university partnership district long-term planning; and 22.32incentives to increase homeownership within the district with particular emphasis on 22.33employees of the university and of other major employers located within the district. 22.34 Subd. 3. Report. The board must report to the legislature by January 15, 2009, on 22.35the expenditure of funds appropriated under section 3. 23.3 Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read: 23.4 Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 23.5involving the Minnesota Office of Higher Education and other institutions is governed 23.6by 23.7 (b) Student financial aid. Data collected and used by the Minnesota Office of 23.8Higher Education on applicants for financial assistance are classified under section 23.10 (c) Minnesota college savings plan data. Account owner data, account data, and 23.11data on beneficiaries of accounts under the Minnesota college savings plan are classified 23.12under section 23.13 (d) School financial records. Financial records submitted by schools registering 23.14with the Minnesota Office of Higher Education are classified under section 23.15 (e) Enrollment and financial aid data. Data collected from eligible institutions on 23.16student enrollment and federal and state financial aid are governed by sections 136A.121, 23.17subdivision 18, and 136A.1701, subdivision 11. 23.18 Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 23.19to read: 23.20 Subd. 4. Construction management education surcharge and account. (a) 23.21For nonresidential construction building permits, the surcharge under subdivision 1 23.22is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 23.23whichever amount is greater, and designated for and deposited in the construction 23.24management education account. 23.25 (b) The construction management education account is created as an account in the 23.26special revenue fund, administered by the Minnesota Office of Higher Education for 23.27the purpose of enhancing construction management education in public postsecondary 23.28institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the 23.29director of the Minnesota Office of Higher Education for the purposes of section 136A.127. 23.30 Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read: 23.31 Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 23.32Education Leadership Council is established. The council is composed of 23.33as follows: 24.1 (1) the chair of the University of Minnesota agricultural education program; 24.2 (2) a representative of the commissioner of education; 24.3 (3) a representative of the Minnesota State Colleges and Universities recommended 24.4by the chancellor; 24.5 (4) the president and the president-elect of the Minnesota Association of Agriculture 24.6Educators; 24.7 (5) a representative of the Future Farmers of America Foundation; 24.8 (6) a representative of the commissioner of agriculture; 24.9 (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 24.10University of Minnesota; 24.11 (8) a representative of the Minnesota Private Colleges Council; 24.12 (9) two members representing agriculture education and agriculture business 24.13appointed by the governor; 24.14 24.15and Veterans Affairs; 24.16 24.17 24.18General Legislation and Veterans Affairs, and a member of the senate Education 24.19Committee designated by the Subcommittee on Committees of the Committee on Rules 24.20and Administration; and 24.21 24.22member of the house Education Committee designated by the speaker. 24.23 (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 24.24 24.25member representing the same constituency. 24.26 Sec. 4. Minnesota Statutes 2006, section 135A.01, is amended to read: 24.27135A.01 FUNDING POLICY. 24.28 It is the policy of the legislature to provide stable funding 24.29 24.30that the state and students share the cost of 24.31The legislature intends to provide at least 67 percent of the 24.32 24.33University of Minnesota, and state general fund appropriations to public postsecondary 24.34institutions. It is also the policy of the legislature that the budgetary process serves to 24.35support high quality public postsecondary education. 25.1 Sec. 5. [135A.011] STATE HIGHER EDUCATION OBJECTIVES. 25.2 Subdivision 1. Statewide objectives. Minnesota's higher education investment 25.3is made in pursuit of the following objectives: (1) to ensure quality by providing a 25.4level of excellence that is competitive on a national and international level, through 25.5high quality teaching, scholarship, and learning in a broad range of arts and sciences, 25.6technical education, and professional fields; (2) to foster student success by enabling 25.7and encouraging students to choose institutions and programs that are best suited for 25.8their talents and abilities, and to provide an educational climate that supports students 25.9in pursuing their goals and aspirations; (3) to promote democratic values and enhance 25.10Minnesota's quality of life by developing understanding and appreciation of a free and 25.11diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, 25.12regardless of personal circumstances, to participate in higher education; and (5) to enhance 25.13the economy by assisting the state in being competitive in the world market, and to prepare 25.14a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs. 25.15 Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read: 25.16 Subdivision 1. Determination of appropriation. The 25.17 25.18 25.19 25.20 25.21by considering the biennial budget documents submitted under section 135A.034, 25.22performance in advancing the objectives under section 135A.011, available resources 25.23according to the state budget forecast, the relative balance between state support for 25.24students and public postsecondary institutions, and other factors the legislature considers 25.25important in determining the level of state appropriations for public postsecondary 25.26education. 25.27 Sec. 7. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read: 25.28 Subd. 7. Reports. (a) Instructional and noninstructional expenditure data and 25.29enrollment data 25.30 25.31This report must include a description of the methodology for determining instructional 25.32and noninstructional expenditures and estimates of inflation in higher education and the 25.33methodology or index used to determine the inflation rate. 26.1 (b) By February 1 of each even-numbered year, the Board of Regents of the 26.2University of Minnesota and the Board of Trustees of the Minnesota State Colleges 26.3and Universities must submit a report to the chairs of the legislative committees with 26.4jurisdiction over higher education policy and finance. The report must describe the 26.5following: 26.6 (1) how state appropriations made to the system in the previous odd-numbered year 26.7were allocated and the methodology used to determine the allocation; 26.8 (2) data describing how the institution reallocated resources to advance the priorities 26.9set forth in the budget submitted under section 135A.034 and the statewide objectives 26.10under section 135A.011. The information must indicate whether instruction and support 26.11programs received a reduction in or additional resources. The total amount reallocated 26.12must be clearly explained; 26.13 (3) the tuition rates and fees established by the governing board in each of the past 26.14ten years and comparison data for peer institutions and national averages; 26.15 (4) data on the number and proportion of students graduating within four, five, 26.16and six years from universities and within three years from colleges as reported in the 26.17integrated postsecondary education data system. These data must be provided for each 26.18institution by race, ethnicity, and gender. Data and information must be submitted that 26.19describe the system's plan and progress toward attaining the goals set forth in the plan 26.20to increase the number and proportion of students that graduate within four, five, or six 26.21years from a university or within three years from a college; 26.22 (5) data on, and the methodology used to measure, the number of students 26.23traditionally underrepresented in higher education enrolled at the system's institutions. 26.24Data and information must be submitted that describe the system's plan and progress 26.25toward attaining the goals set forth in the plan to increase the recruitment, retention, and 26.26timely graduation of students traditionally underrepresented in higher education; and 26.27 (6) data on the revenue received from all sources to support research or workforce 26.28development activities or the system's efforts to license, sell, or otherwise market products, 26.29ideas, technology, and related inventions created in whole or in part by the system. Data 26.30and information must be submitted that describe the system's plan and progress toward 26.31attaining the goals set forth in the plan to increase the revenue received to support research 26.32or workforce development activities or revenue received from the licensing, sale, or other 26.33marketing and technology transfer activities by the system. 26.34 (c) Instructional expenditure and enrollment data shall be submitted by the public 26.35postsecondary systems to the Minnesota Office of Higher Education and the Department of 26.36Finance and included in the biennial budget document. The specific data shall be submitted 27.1only after the director of the Minnesota Office of Higher Education has consulted with a 27.2data advisory task force to determine the need, content, and detail of the information. 27.3 Sec. 8. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read: 27.4 Subdivision 1. Operating budget. The governing boards of the University of 27.5Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 27.6legislative and executive branch acceptance, its highest budget priorities in accordance 27.7with statewide objectives for higher education under section 135A.011. 27.8 27.9 27.10 27.11 27.12 Sec. 9. [135A.135] PERSONAL FINANCIAL MANAGEMENT. 27.13 During initial student registration, each technical college, community college, or 27.14state university shall, and the University of Minnesota is requested to, provide each 27.15student information on personal financial management. Students should understand and 27.16be able to manage personal finances including, but not limited to, the responsible use of 27.17consumer credit. This requirement may be waived for a student who enrolls in a college 27.18course providing similar instruction. 27.19 Sec. 10. [135A.145] SALE OF STUDENT INFORMATION; MARKETING 27.20CREDIT CARDS TO STUDENTS. 27.21 Subdivision 1. Prohibited practices. No public or private postsecondary 27.22educational institution, including its agents, employees, student or alumni organizations, 27.23or affiliates, may: 27.24 (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone 27.25number, or other contact information of an undergraduate student at the postsecondary 27.26educational institution without the student's consent; or 27.27 (2) enter into any agreement to market credit cards to undergraduate students at 27.28a postsecondary educational institution. 27.29 For purposes of this section, the terms "credit," "credit card," and "card issuer" 27.30have the meanings given them in the Truth in Lending Act, United States Code, title 15, 27.31section 1602. 27.32 Subd. 2. Violations. The attorney general may seek the penalties and remedies 27.33available under section 28.1EFFECTIVE DATE.This section is effective July 1, 2007, except that it applies to 28.2existing agreements to market credit cards upon the later of the expiration of the original 28.3term of the agreement or the expiration of an extension of the original agreement if the 28.4extension is in effect on July 1, 2007. 28.5 Sec. 11. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS. 28.6 Subdivision 1. Short title. This section may be cited as the Textbook Disclosure, 28.7Pricing, and Access Act. 28.8 Subd. 2. Course material disclosures required. (a) Beginning January 1, 2009, 28.9any publisher that sells or distributes course material for classroom use in a postsecondary 28.10institution must make the following available in an easily accessible manner to faculty, 28.11bookstores, and postsecondary institutions in Minnesota: 28.12 (1) the title, edition, author, and International Standard Book Number (ISBN) or 28.13other easily identifiable information for all course materials; 28.14 (2) the undiscounted price at which the course materials are available to a bookstore; 28.15 (3) the formats, including bundled and unbundled, in which those course materials 28.16are offered and the undiscounted prices of the various components, both sold separately or 28.17packaged together; 28.18 (4) a summary of revisions between current and previous editions of course 28.19materials; and 28.20 (5) the return policy for course material, including any penalties or conditions for 28.21returns. 28.22 (b) Any publisher that sells or distributes course material for classroom use in a 28.23postsecondary institution must make all bundled course material available to bookstores 28.24and postsecondary institutions in an unbundled form, or must provide notice if unbundled 28.25material is not available. 28.26 (c) Disclosure under this section is not required for mass market and trade books that 28.27are not published, marketed, or sold primarily for classroom use in or by postsecondary 28.28institutions. 28.29 (d) Nothing in this section shall be construed to limit any existing academic freedom 28.30or rights of faculty members to determine the most appropriate course material for the 28.31courses they teach. 28.32 Subd. 3. Educational strategies. Public postsecondary institutions must develop 28.33educational materials considering the recommendations in studies by the Minnesota Office 28.34of Higher Education and others and at least annually convene and sponsor meetings 28.35and workshops, and provide educational strategies for faculty, students, administrators, 29.1institutions, and bookstores to inform all interested parties on strategies for reducing the 29.2costs of course materials for students attending postsecondary institutions. 29.3 Subd. 4. Minnesota Office of Higher Education responsibilities. (a) For private 29.4postsecondary institutions, the Minnesota Office of Higher Education must develop 29.5educational materials considering the recommendations by the Minnesota Office of Higher 29.6Education and others and at least annually convene and sponsor meetings and workshops 29.7and provide educational strategies for faculty, students, administrators, institutions, and 29.8bookstores to inform all interested parties on strategies for reducing the costs of course 29.9materials for students attending postsecondary institutions. 29.10 (b) The Minnesota Office of Higher Education must identify methods to compile and 29.11distribute information on entities that sell or distribute course material for classroom use 29.12in postsecondary institutions in a manner that meets the requirements and complies with 29.13subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make 29.14this information available for use by students and faculty in postsecondary institutions. 29.15 Subd. 5. Bookstores; course materials. The University of Minnesota and private 29.16colleges are encouraged to comply with the requirements for instructors and bookstores 29.17under section 136F.58, subdivision 2. 29.18 Sec. 12. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read: 29.19 Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 29.20of age before the beginning of any term, semester or quarter, in which a course of study 29.21is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 29.22of age before the beginning of the term. 29.23 Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read: 29.24 Subdivision 1. Fees and tuition. Except for an administration fee established by the 29.25governing board at a level to recover costs, to be collected only when a course is taken for 29.26credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 29.27of tuition or activity fees to attend courses offered for credit, audit any courses offered 29.28for credit, or enroll in any noncredit courses in any state supported institution of higher 29.29education in Minnesota when space is available after all tuition-paying students have been 29.30accommodated. A senior citizen enrolled under this section must pay any materials, 29.31personal property, or service charges for the course. In addition, a senior citizen who is 29.32enrolled in a course for credit must pay an administrative fee in an amount established 29.33by the governing board of the institution to recover 29.34administrative fee charges to a senior citizen auditing a course. For the purposes of this 30.1section and section 30.2designed and offered specifically and exclusively for senior citizens. 30.3 The provisions of this section and section 30.4designed and offered by the University of Minnesota, and the Minnesota State Colleges 30.5and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 30.6under the provisions of this section and section 30.7institutions in their computation of full-time equivalent students when requesting staff 30.8or appropriations. 30.9 Sec. 14. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read: 30.10 Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 30.11shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 30.12courses, nor income limitation imposed in determining eligibility. 30.13 (b) A senior citizen enrolled in a closed enrollment contract training 30.14 30.15 Sec. 15. [136A.002] DEFINITIONS. 30.16 Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section 30.17have the meanings given them. 30.18 Subd. 2. Office of Higher Education or office. "Office of Higher Education" or 30.19"office" means the Minnesota Office of Higher Education. 30.20 Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read: 30.21 Subd. 5. Expiration. Notwithstanding section 30.22groups established in this section do not expire 30.23 Sec. 17. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read: 30.24 Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 30.25before the last day in January, submit a report to the committees in the house of 30.26representatives and the senate with responsibility for higher education finance on: 30.27 (1) participation in the tuition reciprocity program by Minnesota students and 30.28students from other states attending Minnesota postsecondary institutions under a 30.29reciprocity agreement; 30.30 (2) reciprocity and resident tuition rates at each institution; 30.31 (3) interstate payments and obligations for each state participating in the tuition 30.32reciprocity program in the prior year 31.1 (4) summary statistics on number of graduates by institution, degree granted, and 31.2year of graduation for reciprocity students who attended Minnesota postsecondary 31.3institutions. 31.4 Sec. 18. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read: 31.5 Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 31.6educational institution located in this state or in a state with which the office has entered 31.7into a higher education reciprocity agreement on state student aid programs that 31.8is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 31.9operated 31.10(i) maintains academic standards substantially equivalent to those of comparable 31.11institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 31.12by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 31.13Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. 31.14 Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 31.15read: 31.16 Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means 31.17the amount of a 31.18by a federal need analysis. For dependent students, the assigned family responsibility is 31.1995 percent of the parental contribution. For independent students with dependents other 31.20than a spouse, the assigned family responsibility is 85 percent of the student contribution. 31.21For independent students without dependents other than a spouse, the assigned family 31.22responsibility is 31.23 31.24 Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read: 31.25 Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 31.26responsibility for covering the recognized cost of attendance by the applicant, the 31.27applicant's family, and the government. The amount of a financial stipend must not 31.28exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 31.29deducting the following: 31.30 (1) the assigned student responsibility of at least 31.31attending the institution of the applicant's choosing; 31.32 (2) the assigned family responsibility as defined in section 31.33 (3) the amount of a federal Pell grant award for which the grant applicant is eligible. 32.1 The minimum financial stipend is $100 per academic year. 32.2 Sec. 21. Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to 32.3read: 32.4 Subd. 7a. Surplus appropriation. If the amount appropriated is determined by the 32.5office to be more than sufficient to fund projected grant demand in the second year of the 32.6biennium, the office may increase the living and miscellaneous expense allowance in the 32.7second year of the biennium by up to an amount that retains sufficient appropriations 32.8to fund the projected grant demand. The adjustment may be made one or more times. 32.9In making the determination that there are more than sufficient funds, the office shall 32.10balance the need for sufficient resources to meet the projected demand for grants with the 32.11goal of fully allocating the appropriation for state grants. An increase in the living and 32.12miscellaneous expense allowance under this subdivision does not carry forward into a 32.13subsequent biennium. This subdivision expires June 30, 32.14 Sec. 22. Minnesota Statutes 2006, section 136A.121, is amended by adding a 32.15subdivision to read: 32.16 Subd. 19. Reporting. By November 1 and February 15, the Office of Higher 32.17Education must provide updated state grant spending projections taking into account 32.18the most current and projected enrollment and tuition and fee information, economic 32.19conditions, and other relevant factors. Before submitting state grant spending projections, 32.20the Office of Higher Education must meet and consult with representatives of public and 32.21private postsecondary institutions, the Department of Finance, the Governor's Office, 32.22legislative staff, and financial aid administrators. 32.23 Sec. 23. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read: 32.24 Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 32.25the applicant: 32.26 (1) is a resident of the state of Minnesota; 32.27 (2) has a child 12 years of age or younger, or 14 years of age or younger who is 32.28disabled as defined in section 32.29regular basis from a licensed or legal, nonlicensed caregiver; 32.30 (3) is income eligible as determined by the office's policies and rules, but is not a 32.31recipient of assistance from the Minnesota family investment program; 32.32 (4) has not earned a baccalaureate degree and has been enrolled full time less than 32.33eight semesters or the equivalent; 33.1 (5) is pursuing a nonsectarian program or course of study that applies to an 33.2undergraduate degree, diploma, or certificate; 33.3 (6) is enrolled at least half time in an eligible institution; and 33.4 (7) is in good academic standing and making satisfactory academic progress. 33.5 (b) A student who withdraws from enrollment for active military service is entitled 33.6to an additional semester or the equivalent of grant eligibility and will be considered to be 33.7in continuing enrollment status upon return. 33.8 Sec. 24. Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read: 33.9 Subd. 4. Amount and length of grants. The amount of a child care grant must be 33.10based on: 33.11 (1) the income of the applicant and the applicant's spouse; 33.12 (2) the number in the applicant's family, as defined by the office; and 33.13 (3) the number of eligible children in the applicant's family. 33.14 The maximum award to the applicant shall be 33.15per academic year, except that the campus financial aid officer may apply to the office for 33.16approval to increase grants by up to ten percent to compensate for higher market charges 33.17for infant care in a community. The office shall develop policies to determine community 33.18market costs and review institutional requests for compensatory grant increases to ensure 33.19need and equal treatment. The office shall prepare a chart to show the amount of a grant 33.20that will be awarded per child based on the factors in this subdivision. The chart shall 33.21include a range of income and family size. 33.22 Sec. 25. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 33.23MINNESOTA EARLY CHILDHOOD TEACHER EDUCATION INCENTIVE 33.24PROGRAMS. 33.25 Subdivision 1. TEACH. The teacher education and compensation helps program 33.26(TEACH) is established to provide tuition scholarships and education incentives to early 33.27care and education providers. The director shall make a grant with appropriations for this 33.28purpose to a nonprofit organization licensed to administer the TEACH early childhood 33.29program. 33.30 Subd. 2. Program components. (a) The nonprofit organization must use the 33.31grant for: 33.32 (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 33.33recognized child development associate credential or college-level courses leading to an 33.34associate's or bachelor's degree in early childhood development and school-age care; and 34.1 (2) education incentives of a minimum of $100 to participants in the tuition 34.2scholarship program if they complete a year of working in the early care and education 34.3field. 34.4 (b) Applicants for the scholarship must be employed by a licensed early childhood 34.5or child care program and working directly with children, a licensed family child care 34.6provider, or an employee in a school-age program exempt from licensing under section 34.7245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 34.8awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 34.9the total scholarship and must be sponsored by their employers, who must also contribute 34.10ten percent of the total scholarship. Scholarship recipients who are self-employed must 34.11contribute 20 percent of the total scholarship. 34.12 Subd. 3. Advisory committee. The TEACH early childhood and Minnesota early 34.13childhood teacher education incentive programs may have an advisory board as prescribed 34.14by the national TEACH organization. 34.15 Sec. 26. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 34.16PROGRAM. 34.17 Subdivision 1. Construction Management Education Account Advisory 34.18Committee. The director must establish an advisory committee for the construction 34.19management education account. Members of the committee must include: the executive 34.20vice-president of the Minnesota Mechanical Contractors Association or designee, a 34.21chapter manager of one of the Minnesota chapters of the National Electrical Contractors 34.22Association or designee, the executive director of the Associated General Contractors of 34.23Minnesota or designee, two members of the nonresidential construction industry, and 34.24two construction management program coordinators or directors from an accredited 34.25construction management program or a program in candidacy status for accreditation in 34.26the Minnesota State Colleges and Universities and the University of Minnesota. Members 34.27serve three-year terms. Advisory committee members are reimbursed for expenses related 34.28to committee activities. The director may accept funds from federal, state, or local public 34.29agencies, or from private foundations or individuals for deposit into the construction 34.30management education account under section 16B.70. All money in the account must 34.31be used for the purposes of this section. 34.32 Subd. 2. Grants. The director must make grants from the construction management 34.33education account to maintain and increase the quality and availability of education 34.34programs for the construction industry for purposes that include but are not limited to 34.35maintaining and upgrading facilities, and providing greater industry access to modern 35.1construction standards and management practices. In making grants, the director, in 35.2consultation with the committee, must consider the following: 35.3 (1) the qualifications of any program applying for a grant; 35.4 (2) applications for American Council for Construction Education accreditation and, 35.5when funds are available, award grants to complete the accreditation process; 35.6 (3) promotion of close ties between technical and community colleges and four-year 35.7construction management programs; and 35.8 (4) support of the development of new educational programs with specific emphasis 35.9on outreach to the construction industry at large. 35.10 Subd. 3. Grant awards. (a) An eligible program at the Minnesota State Colleges 35.11and Universities or the University of Minnesota may apply for a grant. The director may 35.12award grants to eligible programs to support construction management education and 35.13continuing education, and to promote outreach in the construction industry. 35.14 (b) An eligible program must have one of the following: 35.15 (1) a bachelor of science construction management degree accredited by the 35.16American Council for Construction Education; 35.17 (2) a degree with an American Council for Construction Education accredited 35.18option, including, but not limited to, engineering technology and industrial technology; 35.19 (3) a bachelor of science degree program documenting placement of more than 50 35.20percent of its graduates with Minnesota nonresidential contractors; and 35.21 (4) the development of a construction management curriculum to meet the American 35.22Council for Construction Education criteria. 35.23 (c) Grant awards must be based on: 35.24 (1) the number of program graduates; 35.25 (2) the number of graduates placed with Minnesota nonresidential contractors during 35.26the past academic year; 35.27 (3) plans to be accredited by the American Council for Construction Education 35.28for two years, which may be renewed if the institution is continuing progress towards 35.29accreditation; 35.30 (4) faculty recruitment and development in construction management programs, 35.31including support for postgraduate work leading to advanced degrees, visiting lecturer 35.32compensation and expenses, teaching assistant positions, and faculty positions; and 35.33 (5) support for general classroom and laboratory operating expenses. 35.34 Grants may only be awarded from the construction management education account 35.35to the extent that funds are available. No other state funding may be provided for these 35.36grants. 36.1 Subd. 4. Reports. (a) The director must annually report to the committees of the 36.2legislature responsible for higher education finance by January 15. The report must 36.3include the public postsecondary educational institutions that received grants, grant 36.4amounts and purposes, the number of students served, and the number of placements 36.5made to the construction industry. 36.6 (b) Grant recipients must report to the office on the amount of all past grants 36.7awarded from the construction management education account and the uses of those 36.8funds. The report must be submitted with a request for a new or continuing grant and 36.9include information required by the office. 36.10 Subd. 5. Administration. Up to $15,000 per year from the construction 36.11management education account may be used for the administration of this program. 36.12 Sec. 27. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read: 36.13 Subdivision 1. Scope. For purposes of sections 36.14defined in this section have the meanings 36.15 Sec. 28. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read: 36.16 Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 36.17educational institution that 36.18Regents of the University of Minnesota; (2) is operated publicly or privately in another 36.19state, is approved by the United States Secretary of Education, and, as determined by 36.20the office, maintains academic standards substantially equal to those of comparable 36.21institutions operated in this state; (3) is licensed or registered as a postsecondary institution 36.22by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 36.23Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 36.24also includes any institution chartered in a province. 36.25 Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read: 36.26 Subd. 8. Investment. Money made available to the office that is not immediately 36.27needed for the purposes of sections 36.28The money must be invested in bonds, certificates of indebtedness, and other fixed income 36.29securities, except preferred stocks, which are legal investments for the permanent school 36.30fund. The money may also be invested in prime quality commercial paper that is eligible 36.31for investment in the state employees retirement fund. All interest and profits from such 36.32investments inure to the benefit of the office or may be pledged for security of bonds 37.1issued by the office or its 37.2 37.3 Sec. 30. Minnesota Statutes 2006, section 136A.16, is amended by adding a 37.4subdivision to read: 37.5 Subd. 16. Interest rate swaps and other agreements. (a) The office may enter into 37.6interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 37.7or other comparable interest rate protection agreements with a third party in connection 37.8with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 37.9comparable interest rate protection agreements. 37.10 (b) The agreements authorized by this subdivision include without limitation master 37.11agreements, options, or contracts to enter into those agreements in the future and related 37.12agreements, including, without limitation, agreements to provide credit enhancement, 37.13liquidity, or remarketing. 37.14 (c) The agreements authorized by this subdivision may be entered into on the basis 37.15of negotiation with a qualified third party or through a competitive proposal process on 37.16terms and conditions as and with covenants and provisions approved by the office and 37.17may include, without limitation: 37.18 (1) provisions establishing reserves; 37.19 (2) pledging assets or revenues of the office for current or other payments or 37.20termination payments; 37.21 (3) contracting with the other parties to the agreements to provide for the custody, 37.22collection, securement, investment, and payment of money of the office or money held 37.23in trust; or 37.24 (4) requiring the issuance of bonds or other agreements authorized by this section 37.25in the future. 37.26 (d) With respect to bonds or notes outstanding or proposed to be issued bearing 37.27interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 37.28or at a different variable rate determined in accordance with a formula set out in the 37.29agreement on an amount not exceeding the outstanding principal amount of the bonds or 37.30notes at the time of payment in exchange for an agreement by the third party to pay sums 37.31equal to interest on a like amount at a variable rate determined according to a formula 37.32set out in the agreement. 37.33 (e) With respect to bonds or notes outstanding or proposed to be issued bearing 37.34interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 37.35variable rate determined in accordance with a formula set out in the agreement on an 38.1amount not exceeding the outstanding principal amount of the bonds or notes at the time of 38.2payment in exchange for an agreement by the third party to pay sums equal to interest on a 38.3like amount at a fixed rate or rates determined according to a formula set in the agreement. 38.4 (f) Subject to any applicable covenants of the office, payments required to be made 38.5by the office under the agreement, including termination payments, may be made from 38.6amounts pledged or available to pay debt service on the bonds or notes with respect to 38.7which the agreement was made or from assets of the loan capital fund of the office. 38.8The office may issue bonds or notes to provide for any payments, including, without 38.9limitation, a termination payment due or to become due under an agreement authorized 38.10under this section. 38.11 (g) The authority of the office to enter into interest rate protection agreements under 38.12this section is limited to agreements related to bonds and notes with an aggregate value of 38.13no more than $20,000,000. 38.14 Sec. 31. Minnesota Statutes 2006, section 136A.1702, is amended to read: 38.15136A.1702 38.16 The office shall 38.17chairs of the legislative committees with primary jurisdiction over higher education 38.18finance of any proposed material change to any of its student loan programs prior to 38.19 38.20 38.21 38.22 38.23 38.24 38.25 38.26 38.27 Sec. 32. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read: 38.28 Subd. 3. Payments. Work-study payments shall be made to eligible students by 38.29postsecondary institutions as provided in this subdivision. 38.30 (a) Students shall be selected for participation in the program by the postsecondary 38.31institution on the basis of student financial need. 38.32 (b) In selecting students for participation, priority must be given to students enrolled 38.33for at least 12 credits. In each academic year, a student may be awarded work-study 39.1payments for one period of nonenrollment or less than half-time enrollment if the student 39.2will enroll on at least a half-time basis during the following academic term. 39.3 (c) Students will be paid for hours actually worked and the maximum hourly rate 39.4of pay shall not exceed the maximum hourly rate of pay permitted under the federal 39.5college work-study program. 39.6 (d) Minimum pay rates will be determined by an applicable federal or state law. 39.7 (e) The office shall annually establish a minimum percentage rate of student 39.8compensation to be paid by an eligible employer. 39.9 (f) Each postsecondary institution receiving money for state work-study grants 39.10shall make a reasonable effort to place work-study students in employment with eligible 39.11employers outside the institution. However, a public employer other than the institution 39.12may not terminate, lay off, or reduce the working hours of a permanent employee for the 39.13purpose of hiring a work-study student, or replace a permanent employee who is on layoff 39.14from the same or substantially the same job by hiring a work-study student. 39.15 (g) The percent of the institution's work-study allocation provided to graduate 39.16students shall not exceed the percent of graduate student enrollment at the participating 39.17institution. 39.18 (h) An institution may use up to 30 percent of its allocation for student internships 39.19with private, for-profit employers. 39.20 Sec. 33. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read: 39.21 Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 39.22to issue revenue bonds whose aggregate principal amount at any time shall not exceed 39.23 39.24refunding bonds of the authority under the provisions of sections 39.25to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 39.26renovating, improving, furnishing, or equipping one or more projects or parts thereof. 39.27 Sec. 34. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read: 39.28 Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 39.29shall award grants to foster postsecondary attendance and retention by providing outreach 39.30services to historically underserved students in grades six through 12 and historically 39.31underrepresented college students. Grants must be awarded to programs that provide 39.32precollege services, including, but not limited to: 39.33 (1) academic counseling; 39.34 (2) mentoring; 40.1 (3) fostering and improving parental involvement in planning for and facilitating a 40.2college education; 40.3 (4) services for students with English as a second language; 40.4 (5) academic enrichment activities; 40.5 (6) tutoring; 40.6 (7) career awareness and exploration; 40.7 (8) orientation to college life; 40.8 (9) assistance with high school course selection and information about college 40.9admission requirements; and 40.10 (10) financial aid counseling. 40.11 Grants shall be awarded to postsecondary institutions, professional organizations, 40.12community-based organizations, or others deemed appropriate by the director. 40.13 Grants shall be awarded for one year and may be renewed for a second year with 40.14documentation to the Minnesota Office of Higher Education of successful program 40.15outcomes. 40.16 Sec. 35. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read: 40.17 Subd. 2. Eligible students. Eligible students include students in grades six through 40.1812 who meet one or more of the following criteria: 40.19 (1) are counted under section 1124(c) of the Elementary and Secondary Education 40.20Act of 1965 (Title I); 40.21 (2) are eligible for free or reduced-price lunch under the National School Lunch Act; 40.22 (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 40.23I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or 40.24 (4) are a member of a group traditionally underrepresented in higher education. 40.25 Eligible undergraduate students include those who met the student eligibility criteria 40.26as 6th through 12th graders. 40.27 Sec. 36. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read: 40.28 Subd. 3. Application process. The director of the Minnesota Office of Higher 40.29Education shall develop a grant application process. The director shall attempt to support 40.30projects in a manner that ensures that eligible students throughout the state have access 40.31to 40.32 The grant application must include, at a minimum, the following information: 40.33 (1) a description of the characteristics of the students to be served reflective of the 40.34need for services listed in subdivision 1; 41.1 (2) a description of the services to be provided and a timeline for implementation of 41.2the activities; 41.3 (3) a description of how the services provided will foster postsecondary attendance 41.4and support postsecondary retention; 41.5 (4) a description of how the services will be evaluated to determine whether the 41.6program goals were met; and 41.7 (5) other information as identified by the director. 41.8Grant recipients must specify both program and student outcome goals, and performance 41.9measures for each goal. 41.10 Sec. 37. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read: 41.11 Subd. 6. Program evaluation. Each grant recipient must annually submit a report 41.12to the Minnesota Office of Higher Education delineating its program and student outcome 41.13goals, and activities implemented to achieve the stated outcomes. The goals must be 41.14clearly stated and measurable. Grant recipients are required to collect, analyze, and report 41.15on participation and outcome data that enable the office to verify that the program goals 41.16were met. The office shall maintain: 41.17 (1) information about successful precollege program and undergraduate student 41.18retention program activities for dissemination to individuals throughout the state interested 41.19in adopting or replicating successful program practices; and 41.20 (2) data on the success of the funded projects in increasing the high school 41.21graduation 41.22by the grant recipients. The office may convene meetings of the grant recipients, as 41.23needed, to discuss issues pertaining to the implementation of precollege services and 41.24undergraduate retention programs. 41.25 Sec. 38. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read: 41.26 Subdivision 1. Membership. The board consists of 15 members appointed by the 41.27governor with the advice and consent of the senate. At least one member of the board 41.28must be a resident of each congressional district. In selecting appointees, the governor 41.29must consider the needs of the Board of Trustees and the balance of the board membership 41.30with respect to labor and business representation and racial, gender, geographic, and ethnic 41.31composition. Three members must be students who are enrolled at least half time in a 41.32degree, diploma, or certificate program or have graduated from an institution governed 41.33by the board within one year of the date of appointment. The student members shall 41.34include: one member from a community college, one member from a state university, 42.1and one member from a technical college. Two members must be active members of 42.2the largest organized labor organization in Minnesota and two members must be active 42.3members of large business associations. The remaining members must be appointed to 42.4represent the state at large. 42.5 Sec. 39. Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read: 42.6 Subd. 3. Duties. (a) The advisory council shall: 42.7 (1) develop a statement of the selection criteria to be applied and a description 42.8of the responsibilities and duties of a member of the board and shall distribute this to 42.9potential candidates; and 42.10 (2) for each position on the board, identify and recruit qualified candidates for the 42.11board, based on the background and experience of the candidates, and their potential for 42.12discharging the responsibilities of a member of the board. 42.13 (b) Selection criteria developed under this section must include the requirement that 42.14trustees represent diversity in geography, gender, race, occupation, and experience. 42.15 (c) Selection criteria developed under this section must also include the identification 42.16of the membership needs of the board for individual skills relevant to the governance 42.17of the Minnesota State Colleges and Universities and the needs for certain individual 42.18characteristics that include geographic location, gender, race, occupation, and experience. 42.19 Sec. 40. Minnesota Statutes 2006, section 136F.03, subdivision 4, is amended to read: 42.20 Subd. 4. Recommendations. Except for seats filled under sections 136F.04 and 42.21136F.045, the advisory council shall recommend at least two and not more than four 42.22candidates for each seat. By April 15 of each even-numbered year, the advisory council 42.23shall submit its recommendations to the governor. The governor is not bound by these 42.24recommendations. 42.25 Sec. 41. [136F.045] LABOR AND BUSINESS MEMBER SELECTION. 42.26 (a) The largest labor organization in Minnesota is responsible for recruiting, 42.27screening, and recommending qualified candidates for the Board of Trustees. The 42.28organization must develop a statement of selection criteria for board membership and a 42.29process for recommending candidates. By April 15, 2008, and every six years thereafter, 42.30the organization must recommend to the governor four candidates for the two labor 42.31positions on the Board of Trustees. The governor must appoint two of the candidates 42.32recommended under this paragraph to the board. 43.1 (b) The large business associations in Minnesota are responsible for recruiting, 43.2screening, and recommending qualified candidates for the Board of Trustees. The 43.3associations must develop a joint statement of selection criteria for board membership 43.4and a process for recommending candidates. By April 15, 2010, and every six years 43.5thereafter, the associations must jointly recommend to the governor four candidates for the 43.6two business positions on the Board of Trustees. The governor must appoint two of the 43.7candidates recommended under this paragraph to the board. 43.8 Sec. 42. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read: 43.9 Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 43.10in consultation with the commissioners of employee relations and finance, may develop 43.11policies to allow system office or campus employees on salaries, as defined in section 43.13time for which leave is taken. 43.14 43.15 43.16 Sec. 43. Minnesota Statutes 2006, section 136F.58, is amended to read: 43.17136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION. 43.18 Subdivision 1. Authorization. A state college or university may operate a bookstore 43.19in a state college or university building, or may allocate space in a state college or 43.20university building and permit a person or corporation to operate a bookstore without rent 43.21at the campus' pleasure and on such conditions as the board may impose. The board may 43.22provide insurance, at no cost to the state, for the inventory of a bookstore a state college or 43.23university conducts in its building. 43.24 Subd. 2. Course material. (a) An instructor shall attempt to provide adequate 43.25notice to a bookstore of the intention to order required or recommended course material 43.26so that the bookstore can provide information for the instructor's consideration prior to 43.27placing an order for the course material. 43.28 (b) A bookstore must make reasonable efforts to obtain from publishers or other 43.29sources, prior to the time an instructor requests the bookstore to order course material, 43.30the following information, including, but not limited to: 43.31 (1) the title, edition, author, and International Standard Book Number (ISBN) of 43.32the course material; 43.33 (2) the price for the course material; 44.1 (3) whether the course material is bundled with optional material, whether it can be 44.2unbundled, and the price for each bundled and unbundled component; 44.3 (4) whether the material is available in an alternative format and the cost for the 44.4alternatively formatted material; 44.5 (5) the availability of the course material currently and in the future; 44.6 (6) changes to the course material from the previous edition, the revision date, 44.7availability, and cost for that edition, if available; and 44.8 (7) any known plans for future revisions of the course material. 44.9 (c) An instructor ordering course material through a bookstore shall consider the 44.10information received from the bookstore prior to placing the final order. 44.11 Subd. 3. Notice to purchase. (a) An instructor shall make reasonable efforts to 44.12notify a bookstore of the final order for required and recommended course material at least 44.1330 days prior to the commencement of the term. 44.14 (b) The bookstore must make reasonable efforts to notify students of the following 44.15information concerning the required and recommended course material at least 15 days 44.16prior to the commencement of the term for which the course material is required including, 44.17but not limited to: 44.18 (1) the title, edition, author, and International Standard Book Number (ISBN) of 44.19the course material; 44.20 (2) the price for the course material; 44.21 (3) whether the required course material is bundled with optional material, whether 44.22it can be unbundled, and the price for each bundled and unbundled component; and 44.23 (4) whether the material is available in an alternative format and the cost for the 44.24alternatively formatted material. 44.25 Subd. 4. System responsibility. The board shall, to the extent it considers 44.26necessary, adopt uniform forms for bookstores to request information under subdivision 2. 44.27The board shall encourage faculty to utilize the information received under subdivision 2 44.28to achieve the lowest cost to students for course materials consistent with the academic 44.29freedom and choice of the faculty member. 44.30 Sec. 44. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read: 44.31 Subd. 2. Activity funds. All receipts attributable to the state colleges and 44.32universities activity funds 44.33and are not subject to budgetary control as exercised by the commissioner of finance. 45.1 Sec. 45. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 45.2to read: 45.3 Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall 45.4have authority to control the amount and manner of deposit of all receipts described in 45.5this section in depositories selected by the board. The board's authority shall include 45.6specifying the considerations, financial activities, and conditions required from the 45.7depository, including the requirement of collateral security or a corporate surety bond 45.8as described in section 118A.03. The board may compensate the depository, including 45.9paying a reasonable charge to the depository, maintaining appropriate compensating 45.10balances with the depository, or purchasing non-interest-bearing certificates of deposit 45.11from the depository for performing depository-related services. 45.12 Sec. 46. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read: 45.13 Subd. 5. Amount of matching grant. The amount of the matching grant for a 45.14beneficiary equals: 45.15 (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 45.16of the contributions made to the beneficiary's account during the calendar year, not to 45.17exceed 45.18 (2) if the beneficiary's family income is more than $50,000 but not more than 45.19$80,000, 45.20during the calendar year, not to exceed 45.21 Sec. 47. Minnesota Statutes 2006, section 137.0246, is amended to read: 45.22137.0246 REGENT NOMINATION AND ELECTION. 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 Subd. 2. Regent nomination joint committee. (a) The joint legislative committee 45.32consists of 45.33 45.34 46.1 46.2 46.3 46.4higher education budget and policy divisions 46.5 46.6of the divisions from each body shall be cochairs of the joint legislative committee. A 46.7majority of the members from each house is a quorum of the joint committee. 46.8 (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 46.9resolution, the joint legislative committee shall meet to consider the 46.10advisory council's recommendations for regent of the University of Minnesota for possible 46.11presentation to a joint convention of the legislature. 46.12 (c) The joint committee may 46.13candidates recommended by the 46.14nominated by the joint committee. 46.15 46.16A candidate other than those recommended by the advisory council may be nominated 46.17for consideration by the joint committee only if the nomination receives the support of at 46.18least three house of representatives members of the committee and two senate members 46.19of the committee. A candidate must receive a majority vote of members from the house 46.20of representatives and from the senate on the joint committee to be recommended to the 46.21joint convention. The joint committee may recommend no more than one candidate for 46.22each vacancy. In recommending nominees, the joint committee must consider the needs of 46.23the Board of Regents and the balance of the board membership with respect to gender, 46.24racial, and ethnic composition. 46.25 (d) The joint committee must meet twice, approximately one week apart. The first 46.26meeting is for the purpose of interviewing candidates and recommending candidates for 46.27the joint committee to consider. The second meeting is for the purpose of voting for 46.28candidates for recommendation to the joint convention. 46.29 Sec. 48. [137.0252] APPROPRIATION; CONTRACT BUYOUT. 46.30 No appropriation from the state of Minnesota to the governing board of the 46.31University of Minnesota shall be used directly or indirectly for costs related to the early 46.32termination of a contract of a coach who reports to the director of athletics. 46.33 Sec. 49. Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read: 47.1 Subd. 4. Delayed payment of tuition. A state college or university may not assess 47.2late fees or other late charges for veterans who are eligible to receive federal or state 47.3educational assistance and who have applied for that assistance but not yet received it, 47.4nor may they prevent these students from registering for a subsequent term because of 47.5outstanding tuition charges that arise from delayed federal or state payments. The state 47.6college or university may request without delay the amount of tuition above expected 47.7federal and state educational assistance and may require payment of the full amount of 47.8tuition owed by the veteran within 30 days of receipt of the expected federal or state 47.9educational assistance. 47.10 Sec. 50. [197.791] MINNESOTA GI BILL PROGRAM. 47.11 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this 47.12section. 47.13 (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 47.14specified. 47.15 (c) "Cost of attendance" has the meaning given in section 136A.121, subdivision 47.166, multiplied by a factor of 1.1. 47.17 (d) "Child" means a natural or adopted child of a person described in subdivision 4, 47.18paragraph (a), clause (1), item (i) or (ii). 47.19 (e) "Eligible institution" means a postsecondary institution under section 136A.101, 47.20subdivision 4. 47.21 (f) "Program" means the Minnesota GI Bill program established in this section, 47.22unless otherwise specified. 47.23 (g) "Time of hostilities" means any action by the armed forces of the United States 47.24that is recognized by the issuance of a presidential proclamation or a presidential executive 47.25order in which the armed forces expeditionary medal or other campaign service medals 47.26are awarded according to presidential executive order, and any additional period or place 47.27that the commissioner determines and designates, after consultation with the United States 47.28Department of Defense, to be a period or place where the United States is in a conflict that 47.29places persons at such a risk that service in a foreign country during that period or in that 47.30place should be considered to be included. 47.31 (h) "Veteran" has the meaning given in section 197.447. Veteran also includes 47.32a service member who has received an honorable discharge after leaving each period of 47.33federal active duty service and has: 47.34 (1) served 90 days or more of federal active duty in a foreign country during a time 47.35of hostilities in that country; or 48.1 (2) received a service-related medical discharge from any period of service in a 48.2foreign country during a time of hostilities in that country. 48.3A service member who has fulfilled the requirements for being a veteran under this 48.4paragraph but is still serving actively in the United States armed forces is also a veteran 48.5for the purposes of this section. 48.6 Subd. 2. Program established. The Minnesota GI Bill Program is established to 48.7provide postsecondary educational assistance to eligible Minnesota veterans and to the 48.8children and spouses of deceased and severely disabled Minnesota veterans. 48.9 The commissioner, in cooperation with eligible postsecondary educational 48.10institutions, shall administer the program for the purpose of providing postsecondary 48.11educational assistance to eligible persons in accordance with this section. Each public 48.12postsecondary educational institution in the state must participate in the program and each 48.13private postsecondary educational institution in the state is encouraged to participate in the 48.14program. Any participating private institution may suspend or terminate its participation 48.15in the program at the end of any semester or other academic term. 48.16 Subd. 3. Duties; responsibilities. (a) The commissioner shall establish policies 48.17and procedures including, but not limited to, procedures for student application record 48.18keeping, information sharing, payment of educational assistance benefits, and other 48.19procedures the commissioner considers appropriate and necessary for effective and 48.20efficient administration of the program established in this section. 48.21 (b) The commissioner may delegate part or all of the administrative procedures 48.22for the program to responsible representatives of participating eligible institutions. The 48.23commissioner may execute an interagency agreement with the Office of Higher Education 48.24for services the commissioner determines necessary to administer the program. 48.25 Subd. 4. Eligibility. (a) A person is eligible for educational assistance under this 48.26section if: 48.27 (1) the person is: 48.28 (i) a veteran who is serving or has served honorably in any branch or unit of the 48.29United States armed forces at any time on or after September 11, 2001; 48.30 (ii) a nonveteran who has served honorably for a total of five years or more 48.31cumulatively as a member of the Minnesota National Guard or any other active or reserve 48.32component of the United States armed forces, and any part of that service occurred on or 48.33after September 11, 2001; 48.34 (iii) the surviving spouse or child of a person who has served in the military at any 48.35time on or after September 11, 2001, and who has died as a direct result of that military 48.36service; or 49.1 (iv) the spouse or child of a person who has served in the military at any time on or 49.2after September 11, 2001, and who has a total and permanent service-connected disability 49.3as rated by the United States Veterans Administration; 49.4 (2) the person providing the military service described in clause (1), items (i) to (iv), 49.5was a Minnesota resident within six months of the time of the person's initial enlistment or 49.6any reenlistment in the United States armed forces; 49.7 (3) the person receiving the educational assistance is a Minnesota resident, as 49.8defined in section 136A.101, subdivision 8; and 49.9 (4) the person receiving the educational assistance: 49.10 (i) is an undergraduate student at an eligible institution; 49.11 (ii) is maintaining satisfactory academic progress as defined by the institution for 49.12students participating in federal Title IV programs; 49.13 (iii) is enrolled in an education program leading to a certificate, diploma, or degree 49.14at an eligible institution; 49.15 (iv) has applied for educational assistance under this section prior to the end of the 49.16academic term for which the assistance is being requested; 49.17 (v) is in compliance with child support payment requirements under section 49.18136A.121, subdivision 2, clause (5); and 49.19 (vi) has applied for the federal Pell Grant and the Minnesota State Grant. 49.20 (b) A person's eligibility terminates when the person becomes eligible for benefits 49.21under section 135A.52. 49.22 (c) To determine eligibility, the commissioner may require official documentation, 49.23including the person's federal form DD-214 or other official military discharge papers; 49.24correspondence from the United States Veterans Administration; birth certificate; marriage 49.25certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 49.26residency; proof of identity; or any other official documentation the commissioner 49.27considers necessary to determine eligibility. 49.28 (d) The commissioner may deny eligibility or terminate benefits under this section 49.29to any person who has not provided sufficient documentation to determine eligibility for 49.30the program. An applicant may appeal the commissioner's eligibility determination or 49.31termination of benefits in writing to the commissioner at any time. The commissioner 49.32must rule on any application or appeal within 30 days of receipt of all documentation that 49.33the commissioner requires. The decision of the commissioner regarding an appeal is final. 49.34However, an applicant whose appeal of an eligibility determination has been rejected by 49.35the commissioner may submit an additional appeal of that determination in writing to the 49.36commissioner at any time that the applicant is able to provide substantively significant 50.1additional information regarding the applicant's eligibility for the program. An approval 50.2of an applicant's eligibility by the commissioner following an appeal by the applicant is 50.3not retroactively effective for more than one year or the semester of the person's original 50.4application, whichever is later. 50.5 (e) Upon receiving an application with insufficient documentation to determine 50.6eligibility, the commissioner must notify the applicant within 30 days of receipt of the 50.7application that the application is being suspended pending receipt by the commissioner of 50.8sufficient documentation from the applicant to determine eligibility. 50.9 Subd. 5. Benefit amount. (a) On approval by the commissioner of eligibility for 50.10the program, the applicant shall be awarded, on a funds-available basis, the educational 50.11assistance under the program for use at any time according to program rules at any 50.12eligible institution. 50.13 (b) The amount of educational assistance in any semester or term for an eligible 50.14person must be determined by subtracting from the eligible person's cost of attendance the 50.15amount the person received or was eligible to receive in that semester or term from: 50.16 (1) the federal Pell Grant; 50.17 (2) the state grant program under section 136A.121; and 50.18 (3) any federal military or veterans educational benefits including but not limited 50.19to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 50.20vocational rehabilitation benefits, and any other federal benefits associated with the 50.21person's status as a veteran, except veterans disability payments from the United States 50.22Veterans Administration. 50.23 (c) The amount of educational assistance for any eligible person who is a full-time 50.24student must not exceed the following: 50.25 (1) $1,000 per semester or term of enrollment; 50.26 (2) $2,000 per state fiscal year; and 50.27 (3) $10,000 in a lifetime. 50.28For a part-time student, the amount of educational assistance must not exceed $500 per 50.29semester or term of enrollment. For the purpose of this paragraph, a part-time student is a 50.30student taking fewer than 12 credits for a semester or term of enrollment. 50.31 Subd. 6. Insufficient appropriation. If the amount appropriated is determined 50.32by the commissioner to be insufficient to pay the benefit amounts in subdivision 5, the 50.33commissioner must reduce the amounts specified in subdivision 5, paragraph (c), clauses 50.34(1) and (2). 51.1EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 51.2qualifying coursework taken on or after that date. 51.3 Sec. 51. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 51.4AT WORTHINGTON; YMCA LEASE AGREEMENT. 51.5 (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 51.6into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 51.7the Minnesota West Community and Technical College at Worthington campus for the 51.8construction of a YMCA facility. The lease may also include the city of Worthington. 51.9 (b) Siting and design of the facility must be consistent with the college's master 51.10plan and Minnesota State Colleges and Universities' building standards. Minnesota 51.11West Community and Technical College may negotiate for use of the facility for college 51.12purposes. The lease must contain a provision that the lease shall terminate if the improved 51.13property is no longer used for the partial benefit of the students at the Worthington campus. 51.14 Sec. 52. INTEREST RATE PROTECTION AGREEMENTS; REPORT. 51.15 The Office of Higher Education must report by February 1, 2009, to the senate and 51.16house of representatives committees with primary jurisdiction over higher education 51.17finance and policy on the results of the office's interest rate protection agreement activity 51.18under Minnesota Statutes, section 136A.16, subdivision 16. 51.19 Sec. 53. REPEALER. 51.20(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, and 6; 51.21135A.032; 135A.033; 135A.045; 135A.053; 136A.07; and 136A.08, subdivision 8, are 51.22repealed. 51.23(b) Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; 51.24and 4, subdivision 5, are repealed. 51.27 Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read: 51.28136A.61 POLICY. 51.29 The legislature has found and hereby declares that the availability of legitimate 51.30courses and programs leading to academic degrees offered by responsible private 51.31not-for-profit and for-profit institutions of postsecondary education and the existence 51.32of legitimate private colleges and universities are in the best interests of the people of 52.1this state. The legislature has found and declares that the state can provide assistance 52.2and protection for persons choosing private institutions and programs, by establishing 52.3policies and procedures to assure the authenticity and legitimacy of private postsecondary 52.4education institutions and programs. The legislature has also found and declares that 52.5this same policy applies to any private and public postsecondary educational institution 52.6located in another state or country which offers or makes available to a Minnesota resident 52.7any course, program or educational activity which does not require the leaving of the 52.8state for its completion. 52.9 Sec. 2. [136A.615] CITATION. 52.10 Sections 136A.61 to 136A.71 may be cited as the "Minnesota Private and 52.11Out-of-State Public Postsecondary Education Act." 52.12 Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read: 52.13 Subd. 3. School. "School" means: 52.14 (1) any 52.15corporation, or any combination thereof, which 52.16nonprofit postsecondary education institution; 52.17for-profit postsecondary education institution; or (iii) provides a postsecondary 52.18instructional program or course leading to a degree whether or not for profit; 52.19 52.20 52.21 52.22 52.23 52.24 (2) any public postsecondary educational institution located in another state or 52.25country which offers or makes available to a Minnesota resident any course, program or 52.26educational activity which does not require the leaving of the state for its completion; or 52.27 (3) any individual, entity, or postsecondary institution located in another state 52.28that contracts with any school located within the state of Minnesota for the purpose of 52.29providing educational programs, training programs, or awarding postsecondary credits 52.30or continuing education credits to Minnesota residents that may be applied to a degree 52.31program. 52.32 Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read: 52.33136A.63 REGISTRATION. 53.1 Subdivision 1. Annual registration. All schools located within Minnesota and 53.2all schools located outside Minnesota which offer degree programs or courses within 53.3Minnesota shall register annually with the office. 53.4 Subd. 2. Sale of an institution. Within 30 days of a change of its ownership a school 53.5must submit a registration renewal application, all usual and ordinary information and 53.6materials for an initial registration, and applicable registration fees for a new institution. 53.7For purposes of this subdivision, "change of ownership" means a merger or consolidation 53.8with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 53.9the assets of a school; the transfer of a controlling interest of at least 51 percent of the 53.10school's stock; or a change in the not-for-profit or for-profit status of a school. 53.11 Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read: 53.12136A.64 INFORMATION REQUIRED FOR REGISTRATION. 53.13 Subdivision 1. Schools to provide information. As a basis for registration, schools 53.14shall provide the office with such information as the office needs to determine the nature 53.15and activities of the school, including but not limited to 53.16 53.17 53.18 53.19shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 53.20 (1) articles of incorporation, constitution, bylaws, or other operating documents; 53.21 (2) a duly adopted statement of the school's mission and goals; 53.22 (3) evidence of current school or program licenses granted by departments or 53.23agencies of any state; 53.24 (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 53.25past fiscal year including any management letters provided by the independent auditor 53.26or, if the school is a public institution outside Minnesota, an income statement for the 53.27immediate past fiscal year; 53.28 (5) all current promotional and recruitment materials and advertisements; and 53.29 (6) the current school catalog and, if not contained in the catalog: 53.30 (i) the members of the board of trustees or directors, if any; 53.31 (ii) the current institutional officers; 53.32 (iii) current full-time and part-time faculty with degrees held or applicable 53.33experience; 53.34 (iv) a description of all school facilities; 53.35 (v) a description of all current course offerings; 54.1 (vi) all requirements for satisfactory completion of courses, programs, and degrees; 54.2 (vii) the school's policy about freedom or limitation of expression and inquiry; 54.3 (viii) a current schedule of fees, charges for tuition, required supplies, student 54.4activities, housing, and all other standard charges; 54.5 (ix) the school's policy about refunds and adjustments; 54.6 (x) the school's policy about granting credit for prior education, training, and 54.7experience; and 54.8 (xi) the school's policies about student admission, evaluation, suspension, and 54.9dismissal. 54.10 Subd. 2. Financial records. The office shall not disclose financial records or 54.11accreditation reports provided to it by a school pursuant to this section except for the 54.12purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 54.13decision to approve or not to approve the granting of degrees or the use of a name by the 54.14school. Section 54.15 Subd. 3. Additional information. If the office is unable to determine the nature 54.16and activities of a school on the basis of the information in subdivision 1, the office shall 54.17notify the school of additional information needed. 54.18 Subd. 4. Verification of information. The office may verify the accuracy of 54.19submitted information by inspection, visitation, or any other means it considers necessary. 54.20 Subd. 5. Public information. All information submitted to the office is public 54.21information except financial and accreditation records and information. The office may 54.22disclose financial records or information to defend its decision to approve or disapprove 54.23granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 54.24under chapter 14 or other legal proceedings. 54.25 Subd. 6. Late registration penalty. Applications for renewal for any registration 54.26received after the deadline date specified in the renewal materials provided by the office 54.27are subject to a late fee equal to 20 percent of the annual registration renewal fee. 54.28 Subd. 7. Out-of-state expenses. A school shall reimburse the office for actual costs 54.29associated with a site evaluation visit outside Minnesota if the visit is necessary under 54.30subdivision 1 or 3. 54.31 Sec. 6. [136A.645] SCHOOL CLOSURE. 54.32 When a school decides to cease postsecondary education operations, it must 54.33cooperate with the office in assisting students to find alternative means to complete their 54.34studies with a minimum of disruption, and inform the office of the following: 54.35 (1) the planned date for termination of postsecondary education operations; 55.1 (2) the planned date for the transfer of the student records; 55.2 (3) confirmation of the name and address of the organization to receive and hold 55.3the student records; and 55.4 (4) the official at the organization receiving the student records who is designated to 55.5provide official copies of records or transcripts upon request. 55.6Upon notice from a school of its intention to cease operations, the office shall notify the 55.7school of the date on which it must cease the enrollment of students and all postsecondary 55.8educational operations. 55.9 Sec. 7. [136A.646] ADDITIONAL SECURITY. 55.10 In the event any registered institution is notified by the United States Department 55.11of Education that it has fallen below minimum financial standards and that its continued 55.12participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 55.13Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 55.14Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 55.15institution shall provide a surety bond conditioned upon the faithful performance of all 55.16contracts and agreements with students in a sum equal to the "letter of credit" required by 55.17the United States Department of Education in the Letter of Credit Alternative, but in no 55.18event shall such bond be less than $10,000 nor more than $250,000. 55.19 Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read: 55.20136A.65 APPROVAL OF DEGREES AND NAME. 55.21 Subdivision 1. Prohibition. No school subject to registration shall grant a degree 55.22unless such degree 55.23shall any school subject to registration use the name "college," "academy," "institute" or 55.24"university" in its name without approval by the office. 55.25 Subd. 1a. Accreditation; requirement. A school must not be registered or 55.26authorized to offer any degree at any level unless the school is accredited by an agency 55.27recognized by the United States Department of Education for purposes of eligibility to 55.28participate in Title IV federal financial aid programs. Any registered school undergoing 55.29institutional accreditation shall inform the office of site visits by the accrediting agency 55.30and provide office staff the opportunity to attend the visits, including any exit interviews. 55.31The institution must provide the office with a copy of the final report upon receipt. 55.32 Subd. 2. Procedures. The office shall establish procedures for approval, including 55.33notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 55.34granted. If a hearing is requested, no disapproval shall take effect until after such hearing. 56.1 Subd. 3. Application. A school subject to registration shall be granted approval 56.2to use the term "college," "academy," "institute" or "university" in its name 56.3 56.4term in its name on or before August 1, 56.5standards for approval established by the office. 56.6 Subd. 4. Criteria for approval. (a) A school applying to be registered and to have 56.7its degree or degrees and name approved must substantially meet the following criteria: 56.8 (1) the school has an organizational framework with administrative and teaching 56.9personnel to provide the educational programs offered; 56.10 (2) the school has financial resources sufficient to meet the school's financial 56.11obligations, including refunding tuition and other charges consistent with its stated policy 56.12if the institution is dissolved, or if claims for refunds are made, to provide service to the 56.13students as promised, and to provide educational programs leading to degrees as offered; 56.14 (3) the school operates in conformity with generally accepted budgeting and 56.15accounting principles; 56.16 (4) the school provides an educational program leading to the degree it offers; 56.17 (5) the school provides appropriate and accessible library, laboratory, and other 56.18physical facilities to support the educational program offered; 56.19 (6) the school has a policy on freedom or limitation of expression and inquiry for 56.20faculty and students which is published or available on request; 56.21 (7) the school uses only publications and advertisements which are truthful and do 56.22not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 56.23school, its personnel, programs, services, or occupational opportunities for its graduates 56.24for promotion and student recruitment; 56.25 (8) the school's compensated recruiting agents who are operating in Minnesota 56.26identify themselves as agents of the school when talking to or corresponding with students 56.27and prospective students; and 56.28 (9) the school provides information to students and prospective students concerning: 56.29 (i) comprehensive and accurate policies relating to student admission, evaluation, 56.30suspension, and dismissal; 56.31 (ii) clear and accurate policies relating to granting credit for prior education, training, 56.32and experience and for courses offered by the school; 56.33 (iii) current schedules of fees, charges for tuition, required supplies, student 56.34activities, housing, and all other standard charges; 56.35 (iv) policies regarding refunds and adjustments for withdrawal or modification 56.36of enrollment status; and 57.1 (v) procedures and standards used for selection of recipients and the terms of 57.2payment and repayment for any financial aid program. 57.3 (b) An application for degree approval must also include: 57.4 (i) title of degree and formal recognition awarded; 57.5 (ii) location where such degree will be offered; 57.6 (iii) proposed implementation date of the degree; 57.7 (iv) admissions requirements for the degree; 57.8 (v) length of the degree; 57.9 (vi) projected enrollment for a period of five years; 57.10 (vii) the curriculum required for the degree, including course syllabi or outlines; 57.11 (viii) statement of academic and administrative mechanisms planned for monitoring 57.12the quality of the proposed degree; 57.13 (ix) statement of satisfaction of professional licensure criteria, if applicable; 57.14 (x) documentation of the availability of clinical, internship, externship, or practicum 57.15sites, if applicable; and 57.16 (xi) statement of how the degree fulfills the institution's mission and goals, 57.17complements existing degrees, and contributes to the school's viability. 57.18 Subd. 5. Requirements for degree approval. For each degree a school offers to a 57.19student, where the student does not leave Minnesota for the major portion of the program 57.20or course leading to the degree, the school must have: 57.21 (1) qualified teaching personnel to provide the educational programs for each degree 57.22for which approval is sought; 57.23 (2) appropriate educational programs leading to each degree for which approval 57.24is sought; 57.25 (3) appropriate and accessible library, laboratory, and other physical facilities to 57.26support the educational program for each degree for which approval is sought; and 57.27 (4) a rationale showing that degree programs are consistent with the school's mission 57.28and goals. 57.29 Subd. 6. Name. A school may use the term "academy" or "institute" in its name 57.30without meeting any additional requirements. A school may use the term "college" in its 57.31name if it offers at least one program leading to an associate degree. A school may use 57.32the term "university" in its name if it offers at least one program leading to a master's 57.33or doctorate degree. 57.34 Subd. 7. Conditional approval. The office may grant conditional approval for a 57.35degree or use of a term in its name for a period of less than one year if doing so would be 57.36in the best interests of currently enrolled students or prospective students. 58.1 Subd. 8. Disapproval of registration appeal. (a) If a school's degree or use of a 58.2term in its name is disapproved by the office, the school may request a hearing under 58.3chapter 14. The request must be in writing and made to the office within 30 days of the 58.4date the school is notified of the disapproval. 58.5 (b) The office may refuse to renew, revoke, or suspend registration, approval of 58.6a school's degree, or use of a regulated term in its name by giving written notice and 58.7reasons to the school. The school may request a hearing under chapter 14. If a hearing is 58.8requested, no revocation or suspension shall take effect until after the hearing. 58.9 (c) Reasons for revocation or suspension of registration or approval may be for one 58.10or more of the following reasons: 58.11 (1) violating the provisions of sections 136A.61 to 136A.71; 58.12 (2) providing false, misleading, or incomplete information to the office; 58.13 (3) presenting information about the school which is false, fraudulent, misleading, 58.14deceptive, or inaccurate in a material respect to students or prospective students; or 58.15 (4) refusing to allow reasonable inspection or to supply reasonable information after 58.16a written request by the office has been received. 58.17 Sec. 9. Minnesota Statutes 2006, section 136A.657, is amended by adding a 58.18subdivision to read: 58.19 Subd. 4. Statement required; religious nature. Any degree awarded upon 58.20completion of a religiously exempt program shall include descriptive language to make 58.21the religious nature of the award clear. 58.22 Sec. 10. Minnesota Statutes 2006, section 136A.66, is amended to read: 58.23136A.66 LIST. 58.24 The office shall maintain a list of 58.25degrees and schools authorized to use the name "college," "academy," "institute" or 58.26"university," and shall make such list available to the public. 58.27 Sec. 11. Minnesota Statutes 2006, section 136A.67, is amended to read: 58.28136A.67 UNAUTHORIZED REPRESENTATIONS. 58.29 58.30 58.31 58.32employees, may represent in advertising and shall disclose in catalogues, applications, 58.33and enrollment materials that the school is registered with the office 59.1displaying the following statement: "(Name of school) is registered as a private institution 59.2with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71. 59.3Registration is not an endorsement of the institution. Credits earned at the institution 59.4may not transfer to all other institutions." 59.5 Sec. 12. Minnesota Statutes 2006, section 136A.68, is amended to read: 59.6136A.68 RECORDS. 59.7 59.8 59.9 59.10 59.11 59.12 59.13record for each student for 50 years from the last date of the student's attendance. A 59.14registered school offering distance instruction to a student located in Minnesota shall 59.15maintain a permanent record for each Minnesota student for 50 years from the last date of 59.16the student's attendance. Records include a student's academic transcript, documents, and 59.17files containing student data about academic credits earned, courses completed, grades 59.18awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 59.19school shall submit a plan that meets the following requirements: 59.20 (1) at least one copy of the records must be held in a secure, fireproof depository 59.21or duplicate records must be maintained off site in a secure location and in a manner 59.22approved by the office; 59.23 (2) an appropriate official must be designated to provide a student with copies of 59.24records or a transcript upon request; 59.25 (3) an alternative method approved by the office of complying with clauses (1) and 59.26(2) must be established if the school ceases to exist; and 59.27 (4) if the school has no binding agreement approved by the office for preserving 59.28student records, a continuous surety bond must be filed with the office in an amount not to 59.29exceed $20,000. The bond shall run to the state of Minnesota. 59.30 Sec. 13. Minnesota Statutes 2006, section 136A.69, is amended to read: 59.31136A.69 FEES. 59.32 Subdivision 1. Registration fees. The office shall collect reasonable registration 59.33fees that are sufficient to recover, but do not exceed, its costs of administering the 60.1registration program. The office shall charge $1,100 for initial registration fees and $950 60.2for annual renewal fees. 60.3 Subd. 2. Degree level addition fee. The office processing fee for adding a degree 60.4level to an existing program is $2,000 per program. 60.5 Subd. 3. Program addition fee. The office processing fee for adding a program 60.6that represents a significant departure in the objectives, content, or method of delivery of 60.7programs that are currently offered by the school is $500 per program. 60.8 Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit 60.9or outside consultant is necessary to review or evaluate any new or revised program, the 60.10office shall be reimbursed for the expenses incurred related to the review as follows: 60.11 (1) $300 for the team base fee or for a paper review conducted by a consultant if the 60.12office determines that a fact-finding visit is not required; 60.13 (2) $300 for each day or part thereof on site per team member; and 60.14 (3) the actual cost of customary meals, lodging, and related travel expenses incurred 60.15by team members. 60.16 Subd. 5. Modification fee. The fee for modification of any existing program is 60.17$100 and is due if there is: 60.18 (1) an increase or decrease of 25 percent or more from the original date of program 60.19approval, in clock hours, credit hours, or calendar length of an existing program; 60.20 (2) a change in academic measurement from clock hours to credit hours or vice 60.21versa; or 60.22 (3) an addition or alteration of courses that represent a 25 percent change or more in 60.23the objectives, content, or methods of delivery. 60.24 Sec. 14. [136A.705] PENALTY. 60.25 The director may assess fines for violations of a provision of sections 136A.61 to 60.26136A.71. Each day's failure to comply with a provision of sections 136A.61 to 136A.71 60.27shall be a separate violation and fines shall not exceed $500 per day per violation. 60.28Amounts received under this section must be deposited in the special revenue fund and are 60.29appropriated to the Office of Higher Education for the purposes in sections 136A.61 to 60.30136A.71. 60.31 Sec. 15. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read: 60.32 Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 60.33"office" means the Minnesota Office of Higher Education. 61.1 Sec. 16. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read: 61.2 Subd. 5. School. "School" means any person, within or outside the state, who 61.3maintains, advertises, administers, solicits for, or conducts any program 61.4less than an associate degree level 61.5 61.6under sections 136A.61 to 136A.71 and is not specifically exempted by section 61.7or 141.37. School also means any person, within or outside the state, who maintains, 61.8advertises, administers, solicits for, or conducts any program at less than an associate 61.9degree level, is not registered as a private institution pursuant to sections 136A.61 to 61.10136A.71, and uses the term, "college," "institute," "academy," or "university" in its name. 61.11 Sec. 17. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read: 61.12 Subdivision 1. Required. A school must not maintain, advertise, solicit for, 61.13administer, or conduct any program in Minnesota without first obtaining a license from 61.14the office. 61.15 Sec. 18. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read: 61.16 Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 61.17conducts, solicits for, or advertises within the state of Minnesota any program, unless the 61.18applicant files with the office a continuous corporate surety bond written by a company 61.19authorized to do business in Minnesota conditioned upon the faithful performance of all 61.20contracts and agreements with students made by the applicant. 61.21 (b) The amount of the surety bond shall be ten percent of the preceding year's gross 61.22income from student tuition, fees, and other required institutional charges, but in no event 61.23less than $10,000 nor greater than $250,000, except that a school may deposit a greater 61.24amount at its own discretion. A school in each annual application for licensure must 61.25compute the amount of the surety bond and verify that the amount of the surety bond 61.26complies with this subdivision, unless the school maintains a surety bond equal to at least 61.27$250,000. A school that operates at two or more locations may combine gross income 61.28from student tuition, fees, and other required institutional charges for all locations for the 61.29purpose of determining the annual surety bond requirement. The gross tuition and fees 61.30used to determine the amount of the surety bond required for a school having a license for 61.31the sole purpose of recruiting students in Minnesota shall be only that paid to the school 61.32by the students recruited from Minnesota. 61.33 (c) The bond shall run to the state of Minnesota and to any person who may have a 61.34cause of action against the applicant arising at any time after the bond is filed and before it 62.1is canceled for breach of any contract or agreement made by the applicant with any student. 62.2The aggregate liability of the surety for all breaches of the conditions of the bond shall not 62.3exceed the principal sum deposited by the school under paragraph (b). The surety of any 62.4bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 62.5of liability for any breach of condition occurring after the effective date of cancellation. 62.6 (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 62.7sum equal to the amount of the required surety bond in cash, or securities as may be 62.8legally purchased by savings banks or for trust funds in an aggregate market value equal 62.9to the amount of the required surety bond. 62.10 (e) Failure of a school to post and maintain the required surety bond or deposit under 62.11paragraph (d) 62.12 Sec. 19. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read: 62.13 Subd. 7. Minimum standards. A license shall be issued if the office first 62.14determines: 62.15 (1) that the applicant has a sound financial condition with sufficient resources 62.16available to: 62.17 (i) meet the school's financial obligations; 62.18 (ii) refund all tuition and other charges, within a reasonable period of time, in the 62.19event of dissolution of the school or in the event of any justifiable claims for refund against 62.20the school by the student body; 62.21 (iii) provide adequate service to its students and prospective students; and 62.22 (iv) maintain and support the school; 62.23 (2) that the applicant has satisfactory facilities with sufficient tools and equipment 62.24and the necessary number of work stations to prepare adequately the students currently 62.25enrolled, and those proposed to be enrolled; 62.26 (3) that the applicant employs a sufficient number of qualified teaching personnel to 62.27provide the educational programs contemplated; 62.28 (4) that the school has an organizational framework with administrative and 62.29instructional personnel to provide the programs and services it intends to offer; 62.30 (5) that the premises and conditions under which the students work and study are 62.31sanitary, healthful, and safe, according to modern standards; 62.32 (6) that the quality and content of each occupational course or program of study 62.33provides education and adequate preparation to enrolled students for entry level positions 62.34in the occupation for which prepared; 63.1 (7) that the living quarters which are owned, maintained, recommended, or approved 63.2by the applicant for students are sanitary and safe; 63.3 (8) that the contract or enrollment agreement used by the school complies with 63.4the provisions in section 63.5 (9) that contracts and agreements do not contain a wage assignment provision or a 63.6confession of judgment clause; and 63.7 (10) that there has been no adjudication of fraud or misrepresentation in any 63.8criminal, civil, or administrative proceeding in any jurisdiction against the school or its 63.9owner, officers, agents, or sponsoring organization. 63.10 Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read: 63.11 Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 63.12a school, the school shall furnish to the office a catalog, brochure, or electronic display 63.13including: 63.14 (1) identifying data, such as volume number and date of publication; 63.15 (2) name and address of the school and its governing body and officials; 63.16 (3) a calendar of the school showing legal holidays, beginning and ending dates of 63.17each course quarter, term, or semester, and other important dates; 63.18 (4) the school policy and regulations on enrollment including dates and specific 63.19entrance requirements for each program; 63.20 (5) the school policy and regulations about leave, absences, class cuts, make-up 63.21work, tardiness, and interruptions for unsatisfactory attendance; 63.22 (6) the school policy and regulations about standards of progress for the student 63.23including the grading system of the school, the minimum grades considered satisfactory, 63.24conditions for interruption for unsatisfactory grades or progress, a description of any 63.25probationary period allowed by the school, and conditions of reentrance for those 63.26dismissed for unsatisfactory progress; 63.27 (7) the school policy and regulations about student conduct and conditions for 63.28dismissal for unsatisfactory conduct; 63.29 (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 63.30activities, laboratory fees, service charges, rentals, deposits, and all other charges; 63.31 (9) the school policy and regulations, including an explanation of section 63.32about refunding tuition, fees, and other charges if the student does not enter the program, 63.33withdraws from the program, or the program is discontinued; 63.34 (10) a description of the available facilities and equipment; 64.1 (11) a course outline syllabus for each course offered showing course objectives, 64.2subjects or units in the course, type of work or skill to be learned, and approximate time, 64.3hours, or credits to be spent on each subject or unit; 64.4 (12) the school policy and regulations about granting credit for previous education 64.5and preparation; 64.6 (13) a notice to students relating to the transferability of any credits earned at the 64.7school to other institutions; 64.8 (14) a procedure for investigating and resolving student complaints; and 64.9 64.10 A school that is exclusively a distance education school is exempt from clauses 64.11(3) and (5). 64.12 Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read: 64.13 Subd. 10. Placement records. (a) Before a license is 64.14that offers, advertises or implies a placement service, the school shall file with the office 64.15for the past year and thereafter at reasonable intervals determined by the office, a certified 64.16copy of the school's placement record, containing a list of graduates, a description of their 64.17jobs, names of their employers, and other information as the office may prescribe. 64.18 (b) Each school that offers a placement service shall furnish to each prospective 64.19student, upon request, prior to enrollment, written information concerning the percentage 64.20of the previous year's graduates who were placed in the occupation for which prepared or 64.21in related employment. 64.22 Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read: 64.23 Subd. 12. Permanent records. A school licensed under this chapter and located 64.24in Minnesota shall maintain a permanent record for each student for 50 years from the 64.25last date of the student's attendance. A school licensed under this chapter and offering 64.26distance instruction to a student located in Minnesota shall maintain a permanent record 64.27for each Minnesota student for 50 years from the last date of the student's attendance. 64.28Records include school transcripts, documents, and files containing student data about 64.29academic credits earned, courses completed, grades awarded, degrees awarded, and 64.30periods of attendance. To preserve permanent records, a school shall submit a plan that 64.31meets the following requirements: 64.32 (1) at least one copy of the records must be held in a secure, fireproof depository; 64.33 (2) an appropriate official must be designated to provide a student with copies of 64.34records or a transcript upon request; 65.1 (3) an alternative method, approved by the office, of complying with clauses (1) and 65.2(2) must be established if the school ceases to exist; and 65.3 (4) a continuous surety bond must be filed with the office in an amount not to exceed 65.4$20,000 if the school has no binding agreement approved by the office, for preserving 65.5student records 65.6to the state of Minnesota. 65.7 Sec. 23. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read: 65.8 Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 65.9renewal licensure application is: 65.10 (1) for a category A school, as determined by the office, the fee is $865 if the school 65.11offers one program or $1,150 if the school offers two or more programs; and 65.12 (2) for a category B or C school, as determined by the office, the fee is $430 if the 65.13school offers one program or $575 if the school offers two or more programs. 65.14 (b) If a license renewal application is not received by the office by the close of 65.15business at least 60 days before the expiration of the current license, a late fee of $100 65.16per business day, not to exceed $3,000, shall be assessed. 65.17 Sec. 24. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read: 65.18 Subd. 2. Contract information. A contract or enrollment agreement used by a 65.19school must include at least the following: 65.20 (1) the name and address of the school, clearly stated; 65.21 (2) a clear and conspicuous disclosure that the agreement is a legally binding 65.22instrument upon written acceptance of the student by the school unless canceled under 65.23section 65.24 (3) the school's cancellation and refund policy that shall be clearly and conspicuously 65.25entitled "Buyer's Right to Cancel"; 65.26 (4) a clear statement of total cost of the program including tuition and all other 65.27charges; 65.28 (5) the name and description of the program, including the number of hours or 65.29credits of classroom instruction, or distance instruction, that shall be included; and 65.30 (6) a clear and conspicuous explanation of the form and means of notice the student 65.31should use in the event the student elects to cancel the contract or sale, the effective 65.32date of cancellation, and the name and address of the seller to which the notice should 65.33be sent or delivered. 66.1The contract or enrollment agreement must not include a wage assignment provision or a 66.2confession of judgment clause. 66.3 Sec. 25. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read: 66.4 Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 66.5on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 66.6carried, it shall occur on the date the notice is delivered to the school. If a student has not 66.7attended 66.8indicate an intent to continue in school or otherwise making arrangements concerning the 66.9absence, the student is considered to have withdrawn from school for all purposes as of 66.10the student's last documented date of attendance. 66.11 Sec. 26. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read: 66.12 Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 66.13promissory instrument received as payment of tuition or other charge prior to completion 66.14of 50 percent of the program 66.15by assignment to purchasers who shall be subject to all defenses available against the 66.16school named as payee. 66.17 Sec. 27. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read: 66.18 Subdivision 1. 66.19 66.20 66.21school, agent, or solicitor may 66.22in catalogues, applications, and enrollment materials that the school 66.23 66.24statement: 66.25"(Name of school) is licensed as a private career school with the Minnesota Office of 66.26Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. Licensure is 66.27not an endorsement of the institution. Credits earned at the institution may not transfer to 66.28all other institutions. 66.29 66.30 Sec. 28. Minnesota Statutes 2006, section 141.32, is amended to read: 66.31141.32 PENALTY. 67.1 67.2 67.3 67.4 67.5fines for violations of a provision of this chapter. Each day's failure to comply with this 67.6chapter shall be a separate violation and fines shall not exceed $500 per day per violation. 67.7Amounts received under this section must be deposited in the special revenue fund and are 67.8appropriated to the Office of Higher Education for the purposes of this chapter. 67.9 Sec. 29. Minnesota Statutes 2006, section 141.35, is amended to read: 67.10141.35 EXEMPTIONS. 67.11 Sections 67.12 (1) public postsecondary institutions; 67.13 (2) 67.14to 67.15 67.16 67.17 (3) schools of nursing accredited by the state Board of Nursing or an equivalent 67.18public board of another state or foreign country; 67.19 (4) private schools complying with the requirements of section 67.204 67.21 (5) courses taught to students in a valid apprenticeship program taught by or 67.22required by a trade union; 67.23 (6) schools exclusively engaged in training physically or mentally disabled persons 67.24for the state of Minnesota; 67.25 (7) schools licensed by boards authorized under Minnesota law to issue licenses; 67.26 (8) schools and educational programs, or training programs, contracted for by 67.27persons, firms, corporations, government agencies, or associations, for the training of their 67.28own employees, for which no fee is charged the employee; 67.29 (9) schools engaged exclusively in the teaching of purely avocational, recreational, 67.30or remedial subjects as determined by the office; 67.31 (10) 67.32 67.33 67.34fraternal organization, solely for that organization's membership; 68.1 68.2under section 68.3the purposes of this clause, "fine arts" means activities resulting in artistic creation or 68.4artistic performance of works of the imagination which are engaged in for the primary 68.5purpose of creative expression rather than commercial sale or employment. In making 68.6this determination the office may seek the advice and recommendation of the Minnesota 68.7Board of the Arts; 68.8 68.9requirements for licensure or certification in a profession, that have been approved by 68.10a legislatively or judicially established board or agency responsible for regulating the 68.11practice of the profession, and that are offered exclusively to an individual practicing 68.12the profession; 68.13 68.14undergraduate, graduate, postgraduate, or occupational licensing and occupational 68.15entrance examinations; 68.16 68.17instruction that are not part of the curriculum for an occupation or entry level employment; 68.18 68.19development, modeling, or acting; 68.20 68.21individual student, that are not part of the curriculum for an occupation or are not intended 68.22to prepare a person for entry level employment; and 68.23 68.24office, engaged exclusively in offering distance instruction that are located in and 68.25regulated by other states or jurisdictions. 68.26 Sec. 30. [141.37] EXEMPTION; RELIGIOUS SCHOOLS. 68.27 Subdivision 1. Exemption. Any school or any department or branch of a school: 68.28 (1) which is substantially owned, operated, or supported by a bona fide church 68.29or religious organization; 68.30 (2) whose programs are primarily designed for, aimed at, and attended by persons 68.31who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 68.32religious organization; and 68.33 (3) whose programs are primarily intended to prepare its students to become 68.34ministers of, to enter into some other vocation closely related to, or to conduct their lives 68.35in consonance with the particular faith of that church or religious organization, 69.1is exempt from the provisions of sections 141.21 to 141.32. 69.2 Subd. 2. Limitations. (a) An exemption shall not extend to any school, department 69.3or branch of a school, or program of a school which through advertisements or solicitations 69.4represents to any students or prospective students that the school, its aims, goals, missions, 69.5purposes, or programs are different from those described in subdivision 1. 69.6 (b) An exemption shall not extend to any school which represents to any student or 69.7prospective student that the major purpose of its programs is to: 69.8 (1) prepare the student for a vocation not closely related to that particular religious 69.9faith; or 69.10 (2) provide the student with a general educational program recognized by other 69.11schools or the broader educational, business, or social community as being substantially 69.12equivalent to the educational programs offered by schools or departments or branches of 69.13schools which are not religious in nature and are not exempt from chapter 141 and from 69.14rules adopted pursuant under this chapter. 69.15 Subd. 3. Scope. Nothing in this chapter or the rules adopted under it shall be 69.16interpreted as permitting the office to determine the truth or falsity of any particular set 69.17of religious beliefs. 69.18 Subd. 4. Descriptive language required. Any certificate, diploma, degree, or other 69.19formal recognition awarded upon completion of any religiously exempt program shall 69.20include such descriptive language as to make the religious nature of the award clear. 69.21 Sec. 31. EFFECTIVE DATE; TRANSITION PROCESS. 69.22 This article is effective July 1, 2007. Schools licensed pursuant to Minnesota 69.23Statutes, chapter 141, that qualify for private institution registration after July 1, 2007, 69.24shall apply for and complete the process for registration prior to the expiration of their 69.25current private career school license under Minnesota Statutes, chapter 141. Schools 69.26registered as private institutions pursuant to Minnesota Statutes, sections 136A.61 to 69.27136A.71, that are required to obtain a private career school license after July 1, 2007, shall 69.28apply for and complete the process for licensure prior to the expiration of the current 69.29registration, but in any event no later than December 31, 2007. If the office finds it 69.30is necessary to allow for the proper processing of license or registration applications 69.31required by this section, the office is authorized to extend existing license or registration 69.32for a reasonable period of time.
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