1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; making technical 
  1.8             changes to student-related higher education 
  1.9             provisions; modifying financial assistance provisions; 
  1.10            establishing a health care grant program; modifying 
  1.11            certain curriculum provisions for Minnesota state 
  1.12            colleges and universities; clarifying and changing 
  1.13            requirements of private trade schools; amending 
  1.14            Minnesota Statutes 1998, sections 135A.14, by adding a 
  1.15            subdivision; 135A.155; 136A.031, subdivision 3; 
  1.16            136A.101, subdivision 7a; 136A.121, subdivision 5; 
  1.17            136A.125, subdivisions 2 and 3; 136A.243, subdivision 
  1.18            7; 136A.244, subdivision 2; 136A.245, subdivision 6; 
  1.19            136F.04, subdivision 1; 136F.22, subdivision 1; 
  1.20            136F.32, subdivision 2, and by adding a subdivision; 
  1.21            141.21, subdivisions 3, 5, 6, and by adding 
  1.22            subdivisions; 141.22; 141.25, subdivisions 1, 2, 3, 5, 
  1.23            6, 7, 8, 9, 10, and 12; 141.26, subdivision 2; 
  1.24            141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12; 
  1.25            141.28, subdivisions 3 and 5; 141.29, subdivision 1; 
  1.26            141.31; 141.32; 141.35; 471.59, subdivision 1; and 
  1.27            583.22, subdivision 5; Laws 1986, chapter 398, article 
  1.28            1, section 18, as amended; Laws 1998, chapter 398, 
  1.29            article 9, section 7, subdivisions 1 and 2; proposing 
  1.30            coding for new law in Minnesota Statutes, chapters 
  1.31            136A; 136F; and 141; repealing Minnesota Statutes 
  1.32            1998, sections 136A.1359; 136A.136; 141.25, 
  1.33            subdivisions 9a, 9b, and 11; and 141.36; Laws 1998, 
  1.34            chapter 398, article 9, section 7, subdivision 3. 
  1.35  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.36                             ARTICLE 1 
  1.37                           APPROPRIATIONS 
  1.38  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.39     The sums in the columns marked "APPROPRIATIONS" are 
  1.40  appropriated from the general fund, or other named fund, to the 
  2.1   agencies and for the purposes specified in this article.  The 
  2.2   listing of an amount under the figure "2000" or "2001" in this 
  2.3   article indicates that the amount is appropriated to be 
  2.4   available for the fiscal year ending June 30, 2000, or June 30, 
  2.5   2001, respectively.  "The first year" is fiscal year 2000.  "The 
  2.6   second year" is fiscal year 2001.  "The biennium" is fiscal 
  2.7   years 2000 and 2001. 
  2.8                           SUMMARY BY FUND
  2.9                             2000          2001           TOTAL
  2.10  General            $1,272,631,000 $1,332,806,000 $2,605,437,000
  2.11  Health Care
  2.12  Access                  2,937,000      2,937,000      5,874,000
  2.13  Lottery Prize Fund        250,000        -0-            250,000
  2.14                   SUMMARY BY AGENCY - ALL FUNDS
  2.15                            2000          2001           TOTAL
  2.16  Higher Education Services Office
  2.17                        167,638,000    171,104,000    338,742,000
  2.18  Board of Trustees of the Minnesota
  2.19  State Colleges and Universities
  2.20                        531,197,000    567,905,000  1,099,102,000
  2.21  Board of Regents of the University
  2.22  of Minnesota
  2.23                        575,437,000    595,097,000  1,170,534,000
  2.24  Mayo Medical Foundation
  2.25                          1,546,000      1,637,000      3,183,000
  2.26                                             APPROPRIATIONS 
  2.27                                         Available for the Year 
  2.28                                             Ending June 30 
  2.29                                            2000         2001 
  2.30  Sec. 2.  HIGHER EDUCATION
  2.31  SERVICES OFFICE
  2.32  Subdivision 1.  Total
  2.33  Appropriation                        167,638,000    171,104,000
  2.34  The amounts that may be spent from this 
  2.35  appropriation for each purpose are 
  2.36  specified in the following subdivisions.
  2.37  Subd. 2.  State Grants
  2.38      136,532,000       139,952,000
  2.39  If the appropriation in this 
  2.40  subdivision for either year is 
  2.41  insufficient, the appropriation for the 
  2.42  other year is available for it.  
  3.1   The legislature intends that the higher 
  3.2   education services office make full 
  3.3   grant awards in each year of the 
  3.4   biennium.  
  3.5   For the biennium, the private 
  3.6   institution tuition maximum shall be 
  3.7   $8,300 in the first year and $8,550 in 
  3.8   the second year for four-year 
  3.9   institutions and $6,390 in the first 
  3.10  year and $6,580 in the second year for 
  3.11  two-year institutions. 
  3.12  This appropriation contains money to 
  3.13  set the living and miscellaneous 
  3.14  expense allowance at $4,885 for each 
  3.15  year. 
  3.16  Notwithstanding Minnesota Statutes, 
  3.17  section 136A.121, subdivision 5, clause 
  3.18  (1), savings in the state grant program 
  3.19  resulting from an increase in the 
  3.20  maximum federal Pell grant from the 
  3.21  anticipated level of $3,125 shall be 
  3.22  used by the office to reduce the 
  3.23  percentage of assigned student 
  3.24  responsibility. 
  3.25  This appropriation contains money for 
  3.26  the National Service Scholars program 
  3.27  to match scholarship grants made under 
  3.28  the National Service Scholars program 
  3.29  of the Corporation for National Service 
  3.30  to students attending Minnesota high 
  3.31  schools and who will attend a Minnesota 
  3.32  post-secondary institution.  Not more 
  3.33  than one matching grant of $500 may be 
  3.34  made for each high school per year.  
  3.35  Subd. 3.  Interstate Tuition
  3.36  Reciprocity
  3.37       4,500,000      4,500,000
  3.38  If the appropriation in this 
  3.39  subdivision for either year is 
  3.40  insufficient, the appropriation for the 
  3.41  other year is available to meet 
  3.42  reciprocity contract obligations. 
  3.43  Subd. 4.  State Work Study
  3.44      11,194,000     11,194,000
  3.45  Subd. 5.  Minitex Library Program
  3.46       4,063,000      3,988,000
  3.47  Subd. 6.  Learning Network of Minnesota
  3.48       5,178,000      5,179,000
  3.49  Subd. 7.  MnLINK
  3.50         900,000        900,000
  3.51  Subd. 8.  Health Care and Human Services
  3.52  Education Grant Program
  3.53         100,000        100,000
  4.1   This appropriation is from the Health 
  4.2   Care Access Fund. 
  4.3   Subd. 9.  Income Contingent Loans
  4.4   The higher education services office 
  4.5   shall administer an income contingent 
  4.6   loan repayment program to assist 
  4.7   graduates of Minnesota schools in 
  4.8   medicine, dentistry, pharmacy, 
  4.9   chiropractic medicine, public health, 
  4.10  and veterinary medicine, and Minnesota 
  4.11  residents graduating from optometry and 
  4.12  osteopathy programs.  Applicant data 
  4.13  collected by the higher education 
  4.14  services office for this program may be 
  4.15  disclosed to a consumer credit 
  4.16  reporting agency under the same 
  4.17  conditions as apply to the supplemental 
  4.18  loan program under Minnesota Statutes, 
  4.19  section 136A.162.  No new applicants 
  4.20  may be accepted after June 30, 1995. 
  4.21  Subd. 10.  Edvest 
  4.22       1,520,000      1,520,000 
  4.23  Notwithstanding Minnesota Statutes, 
  4.24  section 16C.05, subdivision 2, the 
  4.25  higher education services office may, 
  4.26  on a one-time basis, enter into a 
  4.27  contract up to eight years with a third 
  4.28  party vendor for purposes of starting 
  4.29  the Edvest program authorized in 
  4.30  Minnesota Statutes, section 136A.241. 
  4.31  Subd. 11.  Agency Administration
  4.32       3,571,000      3,691,000
  4.33  This appropriation includes money for 
  4.34  the Minnesota Minority Education 
  4.35  Partnership. 
  4.36  Notwithstanding Laws 1994, chapter 643, 
  4.37  section 69, subdivision 2, the library 
  4.38  planning task force shall expire on 
  4.39  June 30, 2001. 
  4.40  Subd. 12.  Balances Forward 
  4.41  An unencumbered balance in the first 
  4.42  year under a subdivision in this 
  4.43  section does not cancel but is 
  4.44  available for the second year. 
  4.45  Subd. 13.  Transfers 
  4.46  The higher education services office 
  4.47  may transfer unencumbered balances from 
  4.48  the appropriations in this section to 
  4.49  the state grant appropriation, the 
  4.50  interstate tuition reciprocity 
  4.51  appropriation, the child care 
  4.52  appropriation, and the state work study 
  4.53  appropriation. 
  4.54  Sec. 3.  BOARD OF TRUSTEES OF THE
  4.55  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  4.56  Subdivision 1.  Total
  5.1   Appropriation                       531,197,000    567,905,000
  5.2   The amounts that may be spent from this 
  5.3   appropriation for each purpose are 
  5.4   specified in the following subdivisions.
  5.5   Subd. 2.  Estimated Expenditures 
  5.6   and Appropriations 
  5.7   The legislature estimates that 
  5.8   instructional expenditures will be 
  5.9   $671,929,000 in the first year and 
  5.10  $714,333,000 in the second year. 
  5.11  The legislature estimates that 
  5.12  noninstructional expenditures will be 
  5.13  $59,583,000 in the first year and 
  5.14  $61,534,000 in the second year. 
  5.15  During the biennium neither the board 
  5.16  nor campuses shall plan or develop 
  5.17  doctoral level programs or degrees 
  5.18  until after they have received the 
  5.19  recommendation of the house and senate 
  5.20  committees on education, finance, and 
  5.21  ways and means. 
  5.22  The commissioner of finance shall not 
  5.23  release $2,000,000 of this 
  5.24  appropriation until the board certifies 
  5.25  to the commissioner that it has 
  5.26  submitted a systemwide space 
  5.27  utilization report to the legislature. 
  5.28  This appropriation includes $100,000 
  5.29  for the biennium for the agriculture 
  5.30  program at the Staples campus of the 
  5.31  Central Lakes college. 
  5.32  Metropolitan state university may 
  5.33  retain any money saved from a reduction 
  5.34  in lease costs at the 730 Hennepin 
  5.35  Avenue South site.  The money shall be 
  5.36  used for online course and program 
  5.37  development and for consolidation of 
  5.38  locations for program offerings onto 
  5.39  the Minneapolis community and technical 
  5.40  college campus. 
  5.41  This appropriation includes $400,000 
  5.42  for the biennium for the Center for 
  5.43  Research and Innovation at Bemidji 
  5.44  State University. 
  5.45  This appropriation includes an increase 
  5.46  of $5,000,000 in each year for 
  5.47  customized training.  The board shall 
  5.48  increase the annual budget for 
  5.49  customized training above the amount 
  5.50  budgeted in fiscal year 1999 by this 
  5.51  amount in each year of the biennium. 
  5.52  This appropriation includes an increase 
  5.53  of $5,100,000 for the biennium for 
  5.54  repair and replacement of 
  5.55  state-financed facilities.  
  5.56  Notwithstanding Minnesota Statutes, 
  5.57  section 136F.71, subdivision 1, a state 
  5.58  college shall retain revenues in excess 
  5.59  of costs for delivering customized 
  6.1   training programs.  The excess revenues 
  6.2   shall be used for expanding and 
  6.3   developing customized training programs.
  6.4   Subd. 3.  Itasca Community College 
  6.5   The board of trustees of the Minnesota 
  6.6   state colleges and universities is 
  6.7   authorized to construct the following 
  6.8   facilities at Itasca community college: 
  6.9   (1) a two-classroom addition to be 
  6.10  located between the college center 
  6.11  building and Davies Hall.  The project 
  6.12  shall be paid for from lease revenue 
  6.13  supplied from nonstate sources; and (2) 
  6.14  an addition to the existing child care 
  6.15  center.  The project shall be paid for 
  6.16  from the appropriation in Laws 1997, 
  6.17  chapter 183, article 1, section 3, 
  6.18  subdivision 3, for pilot infant child 
  6.19  care programs and from matching money 
  6.20  supplied from nonstate sources. 
  6.21  Subd. 4.  Pine Technical College 
  6.22  The board may accept federal money for 
  6.23  and is authorized to construct an 
  6.24  advanced technology center building at 
  6.25  Pine technical college.  The 
  6.26  construction of the technology center 
  6.27  is contingent upon the receipt of the 
  6.28  federal money. 
  6.29  Subd. 5.  Student Assistance
  6.30  During the biennium, technical and 
  6.31  consolidated colleges shall make use of 
  6.32  instructional advisory committees 
  6.33  consisting of employers, students, and 
  6.34  instructors.  The instructional 
  6.35  advisory committee shall be consulted 
  6.36  when a technical program is proposed to 
  6.37  be created, modified, or eliminated.  
  6.38  If a decision is made to eliminate a 
  6.39  program, a college shall adequately 
  6.40  notify students and make plans to 
  6.41  assist students affected by the closure.
  6.42  This appropriation contains money for 
  6.43  implementing the degree audit reporting 
  6.44  system, which is to provide students 
  6.45  with comprehensive information about 
  6.46  their progress toward meeting program 
  6.47  requirements and credit transfer 
  6.48  information.  The system shall be 
  6.49  implemented consistently across all 
  6.50  institutions. 
  6.51  This appropriation includes money for 
  6.52  the Virtual University and ISEEK. 
  6.53  This appropriation includes $400,000 in 
  6.54  each year for increased tuition 
  6.55  assistance for farm business management 
  6.56  programs.  
  6.57  $15,000 each year is for southwest Asia 
  6.58  veterans tuition relief, pursuant to 
  6.59  Minnesota Statutes, section 136F.28. 
  6.60  Sec. 4.  BOARD OF REGENTS OF THE 
  7.1   UNIVERSITY OF MINNESOTA 
  7.2   Subdivision 1.  Total
  7.3   Appropriation                        575,437,000    595,097,000
  7.4   The amounts that may be spent from this 
  7.5   appropriation for each purpose are 
  7.6   specified in the following subdivisions.
  7.7   Subd. 2.  Operations and
  7.8   Maintenance                          503,458,000    523,088,000
  7.9   (a) Estimated Expenditures 
  7.10  and Appropriations 
  7.11  The legislature estimates that 
  7.12  instructional expenditures will be 
  7.13  $446,472,000 in the first year and 
  7.14  $463,847,000 in the second year. 
  7.15  The legislature estimates that 
  7.16  noninstructional expenditures will be 
  7.17  $210,682,000 in the first year and 
  7.18  $214,605,000 in the second year.  
  7.19  $2,837,000 each year is appropriated 
  7.20  from the health care access fund for 
  7.21  primary care education initiatives, 
  7.22  which is an increase of $300,000 each 
  7.23  year over the base funding. 
  7.24  This appropriation includes money for 
  7.25  the Virtual University and ISEEK. 
  7.26  This appropriation includes an increase 
  7.27  of $9,100,000 for the biennium for 
  7.28  repair and replacement of 
  7.29  state-financed facilities.  
  7.30  Notwithstanding Minnesota Statutes 
  7.31  1998, section 137.022, subdivision 4, 
  7.32  in fiscal year 2000 the first $250,000 
  7.33  of permanent university fund income 
  7.34  from royalties for mining under state 
  7.35  mineral leases shall be allocated by 
  7.36  the board of regents to the department 
  7.37  of landscape architecture to develop a 
  7.38  long-range plan for the reclamation of 
  7.39  taconite mining lands. 
  7.40  (b) University of Minnesota-Rochester
  7.41  The board of regents of the University 
  7.42  of Minnesota is designated as the board 
  7.43  responsible for the governance and 
  7.44  administration of University 
  7.45  Center-Rochester.  The board shall 
  7.46  implement a single administrative 
  7.47  structure and coordinate program 
  7.48  delivery.  The board of trustees of the 
  7.49  Minnesota state colleges and 
  7.50  universities shall cooperate and 
  7.51  provide services as necessary to 
  7.52  achieve the foregoing. 
  7.53  (c) Inventory of Land
  7.54          50,000        -0-   
  7.55  The chancellor of the University of 
  7.56  Minnesota Duluth is requested to direct 
  8.1   the school of business and economics to 
  8.2   conduct an inventory of state-owned 
  8.3   land located within the boundary waters 
  8.4   canoe area for the purpose of providing 
  8.5   the legislature and state officers with 
  8.6   more precise information as to the 
  8.7   nature, extent, and value of the land.  
  8.8   The inventory must include the 
  8.9   following:  (1) a list of the tracts of 
  8.10  state-owned land within the area, 
  8.11  together with the available legal 
  8.12  description by government tract, 
  8.13  insofar as possible.  "State-owned 
  8.14  land" is defined as any class of 
  8.15  state-owned land, whether it is granted 
  8.16  land such as school, university, 
  8.17  swampland, or internal improvement, or 
  8.18  whether it is tax-forfeited, acquired, 
  8.19  or state-owned land of any other 
  8.20  classification; (2) the number of 
  8.21  linear feet of shoreline in each tract, 
  8.22  together with a general description of 
  8.23  that shoreline, whether it is rocky, 
  8.24  sandy, or swampy, or some other 
  8.25  descriptive system that generally 
  8.26  describes the shoreland; (3) the 
  8.27  acreage of each tract; (4) a general 
  8.28  description of the surface of each 
  8.29  tract, including topography and the 
  8.30  predominant vegetative cover for each 
  8.31  tract and any known unique surface 
  8.32  features, such as areas of virgin and 
  8.33  other old growth timber; and (5) using 
  8.34  available real estate market value 
  8.35  information and accepted real estate 
  8.36  valuation techniques, assign estimates 
  8.37  of the value for each tract, exclusive 
  8.38  of minerals and mineral interests, 
  8.39  using each of the real estate valuation 
  8.40  techniques adopted for the inventory.  
  8.41  At the request of the university, the 
  8.42  commissioner of natural resources shall 
  8.43  promptly provide the university with 
  8.44  all published maps, whether federal, 
  8.45  state, or county, together with a 
  8.46  descriptive list of state-owned land in 
  8.47  the area, using available legal 
  8.48  descriptions, forest inventories, and 
  8.49  other factual information, published 
  8.50  data, and photographs that are 
  8.51  necessary for the university's 
  8.52  inventory.  From these maps, lists, 
  8.53  data, and other information, the 
  8.54  university is requested to prepare a 
  8.55  report of its inventory.  The 
  8.56  university shall submit its report to 
  8.57  the legislature by February 1, 2000. 
  8.58  (d) Research Funding and Drug Reimbursement
  8.59  $150,000 from the lottery prize fund 
  8.60  shall be appropriated on a one-time 
  8.61  basis to the board of regents of the 
  8.62  University of Minnesota to be awarded 
  8.63  for a competitive grant to a researcher 
  8.64  or researchers for completion of a 
  8.65  longitudinal treatment effectiveness 
  8.66  follow-up study for compulsive 
  8.67  gambling.  The commissioner shall make 
  8.68  all data from the state-funded 
  8.69  treatment programs available to the 
  9.1   selected researcher.  The researcher 
  9.2   shall study the effectiveness of 
  9.3   treatment as determined by outcomes for 
  9.4   treated persons several years after 
  9.5   departure from treatment.  An attempt 
  9.6   will be made to differentiate outcomes 
  9.7   according to the characterization of 
  9.8   treated persons.  The researcher shall 
  9.9   submit a report to the legislature by 
  9.10  January 15, 2001. 
  9.11  $100,000 from the lottery prize fund 
  9.12  shall be appropriated on a one-time 
  9.13  basis to the board of regents of the 
  9.14  University of Minnesota, to be awarded 
  9.15  to a researcher at the university to 
  9.16  reimburse drug expenses associated with 
  9.17  patients undergoing clinical trials for 
  9.18  treatment of compulsive gambling at a 
  9.19  Minnesota hospital.  Money remaining at 
  9.20  the end of the 2000-2001 biennium shall 
  9.21  be returned to the lottery prize fund. 
  9.22  Subd. 3.  Special
  9.23  Appropriation                         71,979,000     72,009,000
  9.24  The amounts expended for each program 
  9.25  in the four categories of special 
  9.26  appropriations shall be stated in the 
  9.27  2001 biennial budget document. 
  9.28  (a) Agriculture and Extension Service 
  9.29      57,288,000     57,088,000
  9.30  This appropriation is for the 
  9.31  Agricultural Experiment Station, 
  9.32  Minnesota Extension Service, regional 
  9.33  sustainable agriculture partnerships, 
  9.34  initiatives designed to sustain 
  9.35  Minnesota's renewable natural 
  9.36  resource-based industries and for a 
  9.37  rapid agricultural response fund to 
  9.38  conduct research to solve problems 
  9.39  affecting agricultural products 
  9.40  including, but not limited to spring 
  9.41  wheat, barley, potatoes, grapes and 
  9.42  wine, canola, and turkeys. 
  9.43  Any salary increases granted by the 
  9.44  university to personnel paid from the 
  9.45  Minnesota Extension appropriation must 
  9.46  not result in a reduction of the county 
  9.47  portion of the salary payments. 
  9.48  During the biennium, the university 
  9.49  shall maintain an advisory council 
  9.50  system for each experiment station.  
  9.51  The advisory councils must be broadly 
  9.52  representative of range of size and 
  9.53  income distribution of farms and 
  9.54  agribusinesses and must not 
  9.55  disproportionately represent those from 
  9.56  the upper half of the size and income 
  9.57  distributions. 
  9.58  (b) Health Sciences 
  9.59       5,789,000      5,846,000
  9.60  This appropriation is for the rural 
 10.1   physicians associates program, the 
 10.2   Veterinary Diagnostic Laboratory, 
 10.3   health sciences research, dental care, 
 10.4   and the Biomedical Engineering Center. 
 10.5   (c) Institute of Technology  
 10.6        1,600,000      1,645,000
 10.7   This appropriation is for the 
 10.8   Geological Survey and the Talented 
 10.9   Youth Mathematics Program. 
 10.10  (d) System Specials 
 10.11       7,302,000      7,430,000
 10.12  This appropriation is for general 
 10.13  research, student loans matching money, 
 10.14  industrial relations education, Natural 
 10.15  Resources Research Institute, Center 
 10.16  for Urban and Regional Affairs, Bell 
 10.17  Museum of Natural History, and the 
 10.18  Humphrey exhibit. 
 10.19  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.20  Subdivision 1.  Total
 10.21  Appropriation                           1,546,000       1,637,000
 10.22  The amounts that may be spent from this 
 10.23  appropriation for each purpose are 
 10.24  specified in the following subdivisions.
 10.25  Subd. 2.  Medical School
 10.26         554,000        605,000
 10.27  The state of Minnesota shall pay a 
 10.28  capitation of $13,200 in the first year 
 10.29  and $14,405 in the second year for each 
 10.30  student who is a resident of 
 10.31  Minnesota.  The appropriation may be 
 10.32  transferred between years of the 
 10.33  biennium to accommodate enrollment 
 10.34  fluctuations. 
 10.35  The legislature intends that during the 
 10.36  biennium the Mayo foundation use the 
 10.37  capitation money to increase the number 
 10.38  of doctors practicing in rural areas in 
 10.39  need of doctors.  
 10.40  Subd. 3.  Family Practice and
 10.41  Graduate Residency Program
 10.42         601,000        625,000
 10.43  The state of Minnesota provides a 
 10.44  capitation of $21,455 in the first year 
 10.45  and $22,315 in the second year for each 
 10.46  student.  The rural training program 
 10.47  capitation is $42,910 the first year 
 10.48  and $44,630 the second year for one 
 10.49  resident. 
 10.50  Subd. 4.  St. Cloud Hospital-Mayo 
 10.51  Family Practice Residency Program 
 10.52         391,000        407,000
 11.1   This appropriation is to the Mayo 
 11.2   foundation to support 12 resident 
 11.3   physicians each year in the St. Cloud 
 11.4   Hospital-Mayo Family Practice Residency 
 11.5   program.  The program shall prepare 
 11.6   doctors to practice primary care 
 11.7   medicine in the rural areas of the 
 11.8   state.  It is intended that this 
 11.9   program will improve health care in 
 11.10  rural communities, provide affordable 
 11.11  access to appropriate medical care, and 
 11.12  manage the treatment of patients in a 
 11.13  more cost-effective manner. 
 11.14                             ARTICLE 2 
 11.15                           STUDENT ISSUES 
 11.16     Section 1.  Minnesota Statutes 1998, section 135A.14, is 
 11.17  amended by adding a subdivision to read: 
 11.18     Subd. 6.  [HEPATITIS INFORMATION.] All public and private 
 11.19  post-secondary educational institutions shall provide 
 11.20  information regarding the transmission, treatment, and 
 11.21  prevention of hepatitis A, B, and C, to all persons who are 
 11.22  first-time enrollees.  The department of health shall be 
 11.23  consulted regarding the preparation of these materials. 
 11.24     Sec. 2.  Minnesota Statutes 1998, section 135A.155, is 
 11.25  amended to read: 
 11.26     135A.155 [HAZING POLICY.] 
 11.27     The board of trustees of the Minnesota state colleges and 
 11.28  universities shall, and the University of Minnesota is requested 
 11.29  to, adopt a clear, understandable written policy on student 
 11.30  conduct, including hazing.  The policy must include procedures 
 11.31  for reporting incidents of inappropriate hazing and for 
 11.32  disciplinary actions against individual violators and 
 11.33  organizations.  The policy must be provided to students when 
 11.34  they register and must be shall be made available to students by 
 11.35  appropriate means as determined by each institution, which may 
 11.36  include publication in a student handbook or other institutional 
 11.37  publication, or posting by electronic display on the Internet, 
 11.38  and shall be posted at appropriate locations on campus.  A 
 11.39  private post-secondary institution that is an eligible 
 11.40  institution as defined in section 136A.101, subdivision 4, must 
 11.41  adopt a policy that meets the requirements of this section.  
 11.42     Sec. 3.  Minnesota Statutes 1998, section 136A.031, 
 12.1   subdivision 3, is amended to read: 
 12.2      Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
 12.3   council (SAC) to the higher education services council is 
 12.4   established.  The members of SAC shall include:  the chair of 
 12.5   the University of Minnesota student senate,; the state chair of 
 12.6   the Minnesota state university student association, the 
 12.7   president of the Minnesota community college student 
 12.8   association, the president of the Minnesota technical college 
 12.9   student association,; the president of the Minnesota state 
 12.10  college student association and an officer of the Minnesota 
 12.11  state college student association, one in a community college 
 12.12  course of study and one in a technical college course of study; 
 12.13  the president of the Minnesota association of private college 
 12.14  students,; and a student who is enrolled in a private vocational 
 12.15  school, to be appointed by the Minnesota association of private 
 12.16  post-secondary schools.  A member may be represented by a 
 12.17  student designee who attends an institution from the same system 
 12.18  that the absent member represents.  The SAC shall select one of 
 12.19  its members to serve as chair. 
 12.20     The higher education services council shall inform the SAC 
 12.21  of all matters related to student issues under consideration and 
 12.22  shall refer all proposals to the SAC before taking action or 
 12.23  sending the proposals to the governor or legislature.  The SAC 
 12.24  shall report to the higher education services council quarterly 
 12.25  and at other times that the SAC considers desirable.  The SAC 
 12.26  shall determine its meeting times, but it shall also meet with 
 12.27  the council within 30 days after the director's request for a 
 12.28  meeting. 
 12.29     The SAC shall: 
 12.30     (1) bring to the attention of the higher education services 
 12.31  council any matter that the SAC believes needs the attention of 
 12.32  the council; 
 12.33     (2) make recommendations to the higher education services 
 12.34  council as it finds appropriate; 
 12.35     (3) appoint student members to the higher education 
 12.36  services council advisory groups as provided in subdivision 4; 
 13.1   and 
 13.2      (4) provide any reasonable assistance to the council. 
 13.3      Sec. 4.  Minnesota Statutes 1998, section 136A.101, 
 13.4   subdivision 7a, is amended to read: 
 13.5      Subd. 7a.  [FULL TIME.] "Full time" means enrollment in a 
 13.6   minimum of 15 12 credits per quarter or semester, or the 
 13.7   equivalent. 
 13.8      Sec. 5.  Minnesota Statutes 1998, section 136A.121, 
 13.9   subdivision 5, is amended to read: 
 13.10     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 13.11  based on a sharing of responsibility for covering the recognized 
 13.12  cost of attendance by the applicant, the applicant's family, and 
 13.13  the government.  The amount of a financial stipend must not 
 13.14  exceed a grant applicant's recognized cost of attendance, as 
 13.15  defined in subdivision 6, after deducting the following:  
 13.16     (1) the assigned student responsibility of at least 47 45 
 13.17  percent of the cost of attending the institution of the 
 13.18  applicant's choosing; 
 13.19     (2) the assigned family responsibility as defined in 
 13.20  section 136A.101; and 
 13.21     (3) the amount of a federal Pell grant award for which the 
 13.22  grant applicant is eligible. 
 13.23     The minimum financial stipend is $300 per academic year. 
 13.24     Sec. 6.  Minnesota Statutes 1998, section 136A.125, 
 13.25  subdivision 2, is amended to read: 
 13.26     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
 13.27  a child care grant if the applicant: 
 13.28     (1) is a resident of the state of Minnesota; 
 13.29     (2) has a child 12 years of age or younger, or 14 years of 
 13.30  age or younger who is handicapped as defined in section 125A.02, 
 13.31  and who is receiving or will receive care on a regular basis 
 13.32  from a licensed or legal, nonlicensed caregiver; 
 13.33     (3) is income eligible as determined by the office's 
 13.34  policies and rules, but and is not a recipient of assistance 
 13.35  from either aid to families with dependent children or eligible 
 13.36  for child care assistance for educational purposes under the 
 14.1   Minnesota family investment program-statewide program; 
 14.2      (4) has not earned a baccalaureate degree and has been 
 14.3   enrolled full time less than eight semesters, 12 quarters, or 
 14.4   the equivalent; 
 14.5      (5) is pursuing a nonsectarian program or course of study 
 14.6   that applies to an undergraduate degree, diploma, or 
 14.7   certificate; 
 14.8      (6) is enrolled at least half time in an eligible 
 14.9   institution; and 
 14.10     (7) is in good academic standing and making satisfactory 
 14.11  academic progress. 
 14.12     Sec. 7.  Minnesota Statutes 1998, section 136A.125, 
 14.13  subdivision 3, is amended to read: 
 14.14     Subd. 3.  [ELIGIBLE POST-SECONDARY INSTITUTION.] A 
 14.15  Minnesota public post-secondary institution, a Minnesota 
 14.16  private, baccalaureate degree granting college or university, or 
 14.17  a Minnesota nonprofit two-year vocational technical school 
 14.18  granting associate degrees is eligible to receive child care 
 14.19  funds from the office and disburse them to eligible 
 14.20  students "Eligible post-secondary institution" means any 
 14.21  post-secondary institution eligible for participation in the 
 14.22  Minnesota state grant program as specified in section 136A.101, 
 14.23  subdivision 4. 
 14.24     Sec. 8.  [136A.138] [HEALTH CARE EDUCATION GRANT PROGRAM.] 
 14.25     Subdivision 1.  [ESTABLISHMENT.] A health care and human 
 14.26  services education grant program is established under the 
 14.27  supervision of the higher education services office to provide 
 14.28  grants to Minnesota health care and human services employees to 
 14.29  complete a post-secondary degree or certificate in a field 
 14.30  related to health care or human services. 
 14.31     Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
 14.32  a person must be: 
 14.33     (1) a resident of the state of Minnesota; 
 14.34     (2) an employee of a health care or human services provider 
 14.35  located in this state that is a member of a qualifying 
 14.36  consortium operating under sections to be codified as 116L.10 to 
 15.1   116L.15 as provided in article 11, sections 3 to 8, of S. F. No. 
 15.2   2225, the second engrossment, if enacted; and 
 15.3      (3) enrolled in a post-secondary education program in 
 15.4   Minnesota that offers a degree or certificate in a field related 
 15.5   to health care or human services in which a critical worker 
 15.6   shortage exists. 
 15.7      Subd. 3.  [GRANTS FOR ONE YEAR; RENEWABLE.] The grant must 
 15.8   be awarded for one academic year or the length of the program, 
 15.9   if less than one year, but is renewable up to a total maximum of 
 15.10  six semesters or nine quarters of full-time study or their 
 15.11  equivalent.  Each grant must be for a minimum of $1,000 but must 
 15.12  not exceed $4,000.  The grant must be used for tuition, fees, 
 15.13  and books.  Priority in awarding grants shall be given to 
 15.14  persons with the greatest financial need. 
 15.15     Subd. 4.  [RESPONSIBILITY OF HIGHER EDUCATION SERVICES 
 15.16  OFFICE.] Within the limits of available appropriations 
 15.17  specifically for this purpose, the higher education services 
 15.18  office shall award grants under this section.  The office shall 
 15.19  establish an application process for the grants. 
 15.20     Sec. 9.  Minnesota Statutes 1998, section 136A.245, 
 15.21  subdivision 6, is amended to read: 
 15.22     Subd. 6.  [PRIVATE CONTRIBUTIONS.] (a) The office may 
 15.23  solicit and accept contributions from private corporations, 
 15.24  other businesses, foundations, employers, or individuals to 
 15.25  provide: 
 15.26     (1) matching grants under this section in addition to those 
 15.27  funded with direct appropriations; or 
 15.28     (2) grants to students who withdraw money from accounts 
 15.29  established under the program; or 
 15.30     (3) contributions to an account on behalf of a beneficiary. 
 15.31     (b) Amounts contributed may only be used for those 
 15.32  purposes.  Amounts contributed are appropriated to the director 
 15.33  to make grants for the purposes of this subdivision. 
 15.34     (c) Contributors may designate a specific field of study, 
 15.35  geographic area, or other criteria that govern use of the grants 
 15.36  funded with their contributions, but may not discriminate on the 
 16.1   basis of race, ethnicity, or gender.  The office may refuse 
 16.2   contributions that are subject, in the judgment of the director, 
 16.3   to unacceptable conditions on their use. 
 16.4      Sec. 10.  Minnesota Statutes 1998, section 136F.04, 
 16.5   subdivision 1, is amended to read: 
 16.6      Subdivision 1.  [RESPONSIBILITY.] Notwithstanding section 
 16.7   136F.03, the statewide community college student association, 
 16.8   state university student association, and technical the state 
 16.9   college student association shall each have the responsibility 
 16.10  for recruiting, screening, and recommending qualified candidates 
 16.11  for its their student member members of the board. 
 16.12     Sec. 11.  Minnesota Statutes 1998, section 136F.22, 
 16.13  subdivision 1, is amended to read: 
 16.14     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
 16.15  statewide student association for the community colleges, one 
 16.16  for the state universities, and one for the community and 
 16.17  technical colleges.  Each campus student association shall be 
 16.18  affiliated with its statewide student association and all 
 16.19  students enrolled on those campuses shall be members of their 
 16.20  respective statewide association. 
 16.21     Sec. 12.  Minnesota Statutes 1998, section 136F.32, 
 16.22  subdivision 2, is amended to read: 
 16.23     Subd. 2.  [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 
 16.24  (a) A technical college or consolidated technical community 
 16.25  college shall offer students the option of pursuing diplomas and 
 16.26  certificates in each technical education program, unless the 
 16.27  board determines that this is not practicable for certain 
 16.28  programs a degree is the only acceptable credential for career 
 16.29  entry in a specific field.  All vocational and technical credits 
 16.30  earned for a diploma or certificate shall be applicable toward 
 16.31  any available degree in the same program.  
 16.32     (b) Certificates and diplomas are credentials that 
 16.33  demonstrate competence in a vocational or technical area and, 
 16.34  therefore, may include a general education component only as 
 16.35  part of an articulation agreement or to meet occupational 
 16.36  requirements as established by the trade or profession, or by 
 17.1   the program advisory committee.  Students shall be provided with 
 17.2   applied training in general studies as necessary for competence 
 17.3   in the program area.  Students who have earned a certificate or 
 17.4   diploma may earn a degree in the same field if they complete the 
 17.5   general education and other degree requirements. 
 17.6      Sec. 13.  Minnesota Statutes 1998, section 136F.32, is 
 17.7   amended by adding a subdivision to read: 
 17.8      Subd. 3.  [ASSESSMENT.] To reduce barriers to enrollment 
 17.9   and to train a skilled work force, students may be assessed for 
 17.10  skills necessary for competency in a technical or vocational 
 17.11  field as part of their program.  The results of standardized 
 17.12  assessment tests shall not prohibit enrollment in a student's 
 17.13  certificate or diploma program. 
 17.14     Sec. 14.  [136F.37] [SHORT-TERM HEALTH CARE CURRICULA.] 
 17.15     By July 1, 2000, the board, in consultation with relevant 
 17.16  industries, shall develop a short-term, competency-based, 
 17.17  standardized curricula in health care patient services and 
 17.18  community support services for persons with long-term care 
 17.19  needs.  The standardized curricula must provide knowledge that 
 17.20  is applicable to persons employed in a wide range of health care 
 17.21  settings and human services settings, including home health care 
 17.22  assistants, personal care assistants, and certified nursing 
 17.23  assistants.  Effective July 1, 2000, the board shall offer 
 17.24  certificates and two-year associate degrees that articulate into 
 17.25  four-year educational programs in health care services and in 
 17.26  human services.  The board shall report to the legislature by 
 17.27  February 15, 2000, on its progress on implementing this section. 
 17.28                             ARTICLE 3 
 17.29                          OTHER PROVISIONS 
 17.30     Section 1.  Minnesota Statutes 1998, section 136A.243, 
 17.31  subdivision 7, is amended to read: 
 17.32     Subd. 7.  [MARKETING.] The director shall make parents and 
 17.33  other interested individuals aware of the availability and 
 17.34  advantages of the program as a way to save for higher education 
 17.35  costs.  The cost of these promotional efforts must be paid 
 17.36  entirely from state general fund appropriations and may not be 
 18.1   funded with fees imposed on participants. 
 18.2      Sec. 2.  Minnesota Statutes 1998, section 136A.244, 
 18.3   subdivision 2, is amended to read: 
 18.4      Subd. 2.  [PERMITTED INVESTMENTS.] The board may invest the 
 18.5   accounts in any permitted investment under section 11A.24, 
 18.6   except that the accounts may be invested without limit in 
 18.7   investment options from open-ended investment companies 
 18.8   registered under the federal Investment Company Act of 1940, 
 18.9   United States Code, title 15, sections 80a-1 to 80a-64.  
 18.10     Sec. 3.  Minnesota Statutes 1998, section 471.59, 
 18.11  subdivision 1, is amended to read: 
 18.12     Subdivision 1.  [AGREEMENT.] Two or more governmental 
 18.13  units, by agreement entered into through action of their 
 18.14  governing bodies, may jointly or cooperatively exercise any 
 18.15  power common to the contracting parties or any similar powers, 
 18.16  including those which are the same except for the territorial 
 18.17  limits within which they may be exercised.  The agreement may 
 18.18  provide for the exercise of such powers by one or more of the 
 18.19  participating governmental units on behalf of the other 
 18.20  participating units.  The term "governmental unit" as used in 
 18.21  this section includes every city, county, town, school district, 
 18.22  other political subdivision of this or another state, another 
 18.23  state, the University of Minnesota, and any agency of the state 
 18.24  of Minnesota or the United States, and includes any 
 18.25  instrumentality of a governmental unit.  For the purpose of this 
 18.26  section, an instrumentality of a governmental unit means an 
 18.27  instrumentality having independent policy making and 
 18.28  appropriating authority. 
 18.29     Sec. 4.  Minnesota Statutes 1998, section 583.22, 
 18.30  subdivision 5, is amended to read: 
 18.31     Subd. 5.  [DIRECTOR.] "Director" means the director of 
 18.32  the conflict and change center at the University of Minnesota's 
 18.33  Humphrey Institute Minnesota extension service or the director's 
 18.34  designee. 
 18.35     Sec. 5.  Laws 1986, chapter 398, article 1, section 18, as 
 18.36  amended by Laws 1987, chapter 292, section 37; Laws 1989, 
 19.1   chapter 350, article 16, section 8; Laws 1990, chapter 525, 
 19.2   section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
 19.3   Special Session chapter 2, article 6, section 2; Laws 1995, 
 19.4   chapter 212, article 2, section 11; Laws 1997, chapter 183, 
 19.5   article 3, section 29; Laws 1998, chapter 395, section 7; and 
 19.6   Laws 1998, chapter 402, section 6, is amended to read: 
 19.7      Sec. 18.  [REPEALER.] 
 19.8      Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
 19.9   subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
 19.10  and 583.305, are repealed on July 1, 1999 2001. 
 19.11     Sec. 6.  Laws 1998, chapter 398, article 9, section 7, 
 19.12  subdivision 1, is amended to read:  
 19.13     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
 19.14  children, families, and learning and the director of the higher 
 19.15  education services office shall establish a program to provide 
 19.16  statewide licenses to commercial electronic databases of 
 19.17  periodicals, encyclopedias, and associated reference materials 
 19.18  for school media centers and, public libraries, state government 
 19.19  agency libraries, and public or private college or university 
 19.20  libraries.  The commissioner, in consultation with Minitex and 
 19.21  in cooperation with the Library Planning Task Force, shall 
 19.22  solicit proposals for access licenses to commercial vendors of 
 19.23  the databases.  Responses to those proposals shall be evaluated 
 19.24  by staff of the office of library development and services in 
 19.25  the department of children, families, and learning, Minitex 
 19.26  staff, and a representative panel of librarians and school media 
 19.27  specialists and public librarians. 
 19.28     Sec. 7.  Laws 1998, chapter 398, article 9, section 7, 
 19.29  subdivision 2, is amended to read: 
 19.30     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
 19.31  shall be made available to a school or school district that is a 
 19.32  member of a multicounty, multitype library system as defined in 
 19.33  Minnesota Statutes, section 134.001, subdivision 6, or a public 
 19.34  library as defined in Minnesota Statutes, section 134.001, 
 19.35  subdivision 2, that is a member of a multicounty, multitype 
 19.36  library system school media center or library that is eligible 
 20.1   to participate in MnLINK.  With appropriate authentication any 
 20.2   user of an eligible library a school media center or library 
 20.3   that is eligible to participate in MnLINK may have access to the 
 20.4   databases from a remote site.  
 20.5      Sec. 8.  [REPEALER.] 
 20.6      (a) Minnesota Statutes 1998, sections 136A.1359; and 
 20.7   136A.136, are repealed June 30, 1999. 
 20.8      (b) Laws 1998, chapter 398, article 9, section 7, 
 20.9   subdivision 3, is repealed. 
 20.10     Sec. 9.  [EFFECTIVE DATE.] 
 20.11     (a) Section 4 is effective July 1, 1999. 
 20.12     (b) Section 5 is effective the day following final 
 20.13  enactment. 
 20.14                             ARTICLE 4 
 20.15                       PRIVATE TRADE SCHOOLS 
 20.16     Section 1.  Minnesota Statutes 1998, section 141.21, 
 20.17  subdivision 3, is amended to read: 
 20.18     Subd. 3.  [SOLICITOR.] "Solicitor" means a person who for a 
 20.19  salary or for commission, acts as an agent, independent 
 20.20  contractor, salesperson, or counselor in procuring or attempting 
 20.21  to procure recruiting students or enrollees for a course of 
 20.22  instruction by solicitation in program using any form made 
 20.23  method, at any place except on the actual business premises of 
 20.24  the school and except for rendering, other than only providing 
 20.25  public information service at the invitation or permission of a 
 20.26  school or educational organization.  
 20.27     Sec. 2.  Minnesota Statutes 1998, section 141.21, 
 20.28  subdivision 5, is amended to read: 
 20.29     Subd. 5.  [SCHOOL.] "School" means any person, within or 
 20.30  without outside the state, that who maintains, advertises, 
 20.31  solicits, or conducts any course of instruction program for 
 20.32  profit or for a tuition charge at any level other than 
 20.33  baccalaureate or graduate programs, and which is not 
 20.34  specifically exempted by the provisions of sections 141.21 to 
 20.35  141.36 141.35.  
 20.36     Sec. 3.  Minnesota Statutes 1998, section 141.21, 
 21.1   subdivision 6, is amended to read: 
 21.2      Subd. 6.  [COURSE OF INSTRUCTION.] "Course of instruction" 
 21.3   means any classroom, correspondence, or extension course of or 
 21.4   long distance instruction; any subunit of a program; or any 
 21.5   combination thereof.  
 21.6      Sec. 4.  Minnesota Statutes 1998, section 141.21, is 
 21.7   amended by adding a subdivision to read: 
 21.8      Subd. 8.  [PROGRAM.] "Program" means any course or grouping 
 21.9   of courses that is advertised or listed in a school's catalog, 
 21.10  brochures, electronic display, or other publications, or for 
 21.11  which the school grants a formal recognition. 
 21.12     Sec. 5.  Minnesota Statutes 1998, section 141.21, is 
 21.13  amended by adding a subdivision to read: 
 21.14     Subd. 9.  [DISTANCE EDUCATION SCHOOL.] "Distance education 
 21.15  school" means a school that establishes, keeps, or maintains a 
 21.16  facility or location where a program is offered through 
 21.17  correspondence, telecommunication, or electronic media. 
 21.18     Sec. 6.  Minnesota Statutes 1998, section 141.21, is 
 21.19  amended by adding a subdivision to read: 
 21.20     Subd. 10.  [LONG DISTANCE INSTRUCTION.] "Long distance 
 21.21  instruction" means any method of instruction outside the 
 21.22  traditional in-classroom instruction, including, but not limited 
 21.23  to, the use of the United States mail and other correspondence; 
 21.24  Internet, Website, and other online computer-based education; 
 21.25  interactive Internet; or CD-ROM self-instruction. 
 21.26     Sec. 7.  Minnesota Statutes 1998, section 141.21, is 
 21.27  amended by adding a subdivision to read: 
 21.28     Subd. 11.  [WEBSITE.] "Website" is a location on the World 
 21.29  Wide Web made up of one or more pages. 
 21.30     Sec. 8.  Minnesota Statutes 1998, section 141.22, is 
 21.31  amended to read: 
 21.32     141.22 [CITATION.] 
 21.33     Sections 141.21 to 141.36 141.35 may be cited as the 
 21.34  Private Business, Trade and Correspondence Career School Act.  
 21.35     Sec. 9.  Minnesota Statutes 1998, section 141.25, 
 21.36  subdivision 1, is amended to read: 
 22.1      Subdivision 1.  [REQUIRED.] No A school shall not maintain, 
 22.2   advertise, solicit for, or conduct any course of instruction 
 22.3   program in Minnesota without first obtaining a license from the 
 22.4   office.  
 22.5      Sec. 10.  Minnesota Statutes 1998, section 141.25, 
 22.6   subdivision 2, is amended to read: 
 22.7      Subd. 2.  [CONTRACT UNENFORCEABLE.] Any A contract entered 
 22.8   into with any a person for a course of instruction program 
 22.9   after November 15, 1969, by or on behalf of any a person 
 22.10  operating any a school to which a license has not been 
 22.11  issued pursuant to under sections 141.21 to 141.36 141.35, shall 
 22.12  be unenforceable in any action brought thereon.  
 22.13     Sec. 11.  Minnesota Statutes 1998, section 141.25, 
 22.14  subdivision 3, is amended to read: 
 22.15     Subd. 3.  [APPLICATION.] Application for a license shall be 
 22.16  on forms prepared and furnished by the office, and shall contain 
 22.17  include the following and such other information as the office 
 22.18  may require: 
 22.19     (a) (1) the title or name of the school, together with 
 22.20  ownership and controlling officers, members, managing employees, 
 22.21  and director; 
 22.22     (b) (2) the specific fields of instruction programs which 
 22.23  will be offered and the specific purposes of such the 
 22.24  instruction; 
 22.25     (c) (3) the place or places where such the instruction will 
 22.26  be given; 
 22.27     (d) (4) a listing of the equipment available for 
 22.28  instruction in each course of instruction program; 
 22.29     (e) (5) the maximum enrollment to be accommodated with 
 22.30  equipment available in each specified course of instruction 
 22.31  program; 
 22.32     (f) (6) the qualifications of instructors and supervisors 
 22.33  in each specified course of instruction program; 
 22.34     (g) (7) a current balance sheet, income statement, and 
 22.35  adequate supporting documentation, prepared and certified by an 
 22.36  independent public accountant or CPA; 
 23.1      (h) (8) copies of all media advertising and promotional 
 23.2   literature and brochures or electronic display currently used or 
 23.3   reasonably expected to be used by such the school; 
 23.4      (i) (9) copies of all Minnesota enrollment agreement forms 
 23.5   and contract forms and all enrollment agreement forms and 
 23.6   contract forms used in Minnesota; and 
 23.7      (10) gross income earned in the preceding year from student 
 23.8   tuition, fees, and other required institutional charges, unless 
 23.9   the school files with the office a surety bond equal to at least 
 23.10  $50,000 as described in subdivision 5.  
 23.11     Sec. 12.  Minnesota Statutes 1998, section 141.25, 
 23.12  subdivision 5, is amended to read: 
 23.13     Subd. 5.  [BOND.] (a) No license shall be issued to any 
 23.14  school which maintains, conducts, solicits for, or advertises 
 23.15  within the state of Minnesota any course of instruction program, 
 23.16  unless the applicant files with the office a continuous 
 23.17  corporate surety bond in the sum of $10,000 written by a company 
 23.18  authorized to do business in Minnesota conditioned upon the 
 23.19  faithful performance of all contracts and agreements with 
 23.20  students made by the applicant.  Such 
 23.21     (b) The amount of the surety bond shall be ten percent of 
 23.22  the preceding year's gross income from student tuition, fees, 
 23.23  and other required institutional charges, but in no event less 
 23.24  than $10,000 nor greater than $50,000, except that a school may 
 23.25  deposit a greater amount at its own discretion.  A school in 
 23.26  each annual application for licensure must compute the amount of 
 23.27  the surety bond and verify that the amount of the surety bond 
 23.28  complies with this subdivision, unless the school maintains a 
 23.29  surety bond equal to at least $50,000.  A school that operates 
 23.30  at two or more locations may combine gross income from student 
 23.31  tuition, fees, and other required institutional charges for all 
 23.32  locations for the purpose of determining the annual surety bond 
 23.33  requirement.  The gross tuition and fees used to determine the 
 23.34  amount of the surety bond required for a school having a license 
 23.35  for the sole purpose of recruiting students in Minnesota shall 
 23.36  be only that paid to the school by the students recruited from 
 24.1   Minnesota. 
 24.2      (c) The bond shall run to the state of Minnesota and to any 
 24.3   person who may have a cause of action against the applicant 
 24.4   arising at any time after the bond is filed and before it is 
 24.5   canceled for breach of any contract or agreement made by the 
 24.6   applicant with any student.  The aggregate liability of the 
 24.7   surety for all breaches of the conditions of the bond shall not 
 24.8   exceed the principal sum of $10,000 deposited by the school 
 24.9   under paragraph (b).  The surety of any such bond may cancel it 
 24.10  upon giving 60 days' notice in writing to the office and shall 
 24.11  be relieved of liability for any breach of condition occurring 
 24.12  after the effective date of cancellation. 
 24.13     (d) In lieu of bond, the applicant may deposit with the 
 24.14  state treasurer the a sum of $10,000 equal to the amount of the 
 24.15  required surety bond in cash, or securities such as may be 
 24.16  legally purchased by savings banks or for trust funds in an 
 24.17  aggregate market value of $10,000 equal to the amount of the 
 24.18  required surety bond.  
 24.19     (e) Failure of a school to post and maintain the required 
 24.20  surety bond or deposit under paragraph (d) may result in denial, 
 24.21  suspension, or revocation of the school's license.  
 24.22     Sec. 13.  Minnesota Statutes 1998, section 141.25, 
 24.23  subdivision 6, is amended to read: 
 24.24     Subd. 6.  [RESIDENT AGENT.] Schools domiciled located 
 24.25  outside the state of Minnesota which that offer, advertise, 
 24.26  solicit for, or conduct any course of instruction program within 
 24.27  the state of Minnesota shall first file with the secretary of 
 24.28  state a sworn statement designating a resident agent authorized 
 24.29  to receive service of process.  Such The statement shall 
 24.30  designate the secretary of state as resident agent for service 
 24.31  of process in the absence of an a designated agent otherwise so 
 24.32  designated.  In the event If a school fails to file such the 
 24.33  statement, the secretary of state is hereby designated as the 
 24.34  resident agent authorized to receive service of process.  Such 
 24.35  The authorization shall be irrevocable as to causes of action 
 24.36  arising out of transactions occurring prior to the filing of 
 25.1   written notice of withdrawal from the state of Minnesota filed 
 25.2   with the secretary of state.  
 25.3      Sec. 14.  Minnesota Statutes 1998, section 141.25, 
 25.4   subdivision 7, is amended to read: 
 25.5      Subd. 7.  [MINIMUM STANDARDS.] No A license shall be issued 
 25.6   unless if the office first determines: 
 25.7      (a) (1) that the applicant has a sound financial condition 
 25.8   with sufficient resources available to: 
 25.9      (i) meet the school's financial obligations; to 
 25.10     (ii) refund all tuition and other charges, within a 
 25.11  reasonable period of time, in the event of dissolution of the 
 25.12  school or in the event of any justifiable claims for refund 
 25.13  against the school by the student body; to 
 25.14     (iii) provide adequate service to its students and 
 25.15  prospective students; and for the proper use 
 25.16     (iv) maintain and support of the school to be maintained; 
 25.17     (b) (2) that the applicant has satisfactory training 
 25.18  facilities with sufficient tools and equipment and the necessary 
 25.19  number of work stations to train prepare adequately the students 
 25.20  currently enrolled, and those proposed to be enrolled; 
 25.21     (c) (3) that the applicant employs a sufficient number of 
 25.22  qualified instructors trained by experience and education 
 25.23  teaching personnel to give provide the training educational 
 25.24  programs contemplated; 
 25.25     (d) (4) that the school has an organizational framework 
 25.26  with administrative and instructional personnel to provide the 
 25.27  programs and services it intends to offer; 
 25.28     (5) that the premises and conditions under which the 
 25.29  students work and study are sanitary, healthful, and safe, 
 25.30  according to modern standards; 
 25.31     (e) (6) that the quality and content of each occupational 
 25.32  course or program of instruction or study shall be of such 
 25.33  quality and content as to provide provides education and 
 25.34  training which will adequately prepare adequate preparation to 
 25.35  enrolled students for entry level positions in the occupation 
 25.36  for which trained prepared; 
 26.1      (f) (7) that the living quarters which are owned, 
 26.2   maintained, or approved by the applicant for students are 
 26.3   sanitary and safe; 
 26.4      (g) (8) that the contract or enrollment agreement used by 
 26.5   the school complies with the following provisions: in section 
 26.6   141.265; 
 26.7      (1) the name and address of the school must be clearly 
 26.8   stated; 
 26.9      (2) inclusion of a clear and conspicuous disclosure that 
 26.10  such agreement becomes a legally binding instrument upon written 
 26.11  acceptance of the student by the school unless canceled pursuant 
 26.12  to section 141.271; 
 26.13     (3) must contain the school's cancellation and refund 
 26.14  policy which shall be clearly and conspicuously entitled, 
 26.15  "Buyer's Right to Cancel"; 
 26.16     (4) the total cost of the course including tuition and all 
 26.17  other charges shall be clearly stated; 
 26.18     (5) the name and description of the course, including the 
 26.19  number of hours or credits of classroom instruction and/or home 
 26.20  study lessons shall be included; 
 26.21     (6) no contract or agreement shall (9) that contracts and 
 26.22  agreements do not contain a wage assignment provision and/or or 
 26.23  a confession of judgment clause; and 
 26.24     (7) each contract or enrollment agreement shall contain a 
 26.25  clear and conspicuous explanation of the form and means of 
 26.26  notice the student should use in the event the student elects to 
 26.27  cancel the contract or sale, the effective date of cancellation, 
 26.28  and the name and address of the seller to which the notice 
 26.29  should be sent or delivered; and 
 26.30     (h) (10) that there has been no adjudication of fraud or 
 26.31  misrepresentation in any criminal, civil, or administrative 
 26.32  proceeding in any jurisdiction against the school or its owner, 
 26.33  officers, agents, or sponsoring organization.  
 26.34     Sec. 15.  Minnesota Statutes 1998, section 141.25, 
 26.35  subdivision 8, is amended to read: 
 26.36     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications An 
 27.1   application for an initial license under sections 141.21 
 27.2   to 141.36 141.35 shall be accompanied by a nonrefundable 
 27.3   application fee established by the office that is sufficient to 
 27.4   recover, but not exceed, its administrative costs. 
 27.5      (b) All licenses shall expire one year from the date issued 
 27.6   by the office.  Each renewal application shall be accompanied by 
 27.7   a nonrefundable renewal fee established by the office that is 
 27.8   sufficient to recover, but does not exceed, its administrative 
 27.9   costs.  
 27.10     (c) Application for renewal of license shall be made at 
 27.11  least 30 days before the expiration of the school's current 
 27.12  license.  Each renewal form shall be supplied by the office.  It 
 27.13  shall not be necessary for an applicant to supply all 
 27.14  information required in the initial application at the time of 
 27.15  renewal unless requested by the office.  
 27.16     Sec. 16.  Minnesota Statutes 1998, section 141.25, 
 27.17  subdivision 9, is amended to read: 
 27.18     Subd. 9.  [CATALOG OR BROCHURE.] Before a license is issued 
 27.19  to a school, other than one which offers exclusively a 
 27.20  correspondence course of instruction, the school shall furnish 
 27.21  to the office a catalog or, brochure containing the following, 
 27.22  or electronic display including: 
 27.23     (1) identifying data, such as volume number and date of 
 27.24  publication; 
 27.25     (2) name and address of the school and its governing body 
 27.26  and officials; 
 27.27     (3) a calendar of the school showing legal holidays, 
 27.28  beginning and ending dates of each course quarter, term, or 
 27.29  semester, and other important dates; 
 27.30     (4) the school policy and regulations on enrollment 
 27.31  including dates and specific entrance requirements for 
 27.32  each course program; 
 27.33     (5) the school policy and regulations about leave, 
 27.34  absences, class cuts, make-up work, tardiness, and interruptions 
 27.35  for unsatisfactory attendance; 
 27.36     (6) the school policy and regulations about standards of 
 28.1   progress for the student including the grading system of the 
 28.2   school, the minimum grades considered satisfactory, conditions 
 28.3   for interruption for unsatisfactory grades or progress, a 
 28.4   description of any probationary period allowed by the school, 
 28.5   and conditions of reentrance for those dismissed for 
 28.6   unsatisfactory progress; 
 28.7      (7) the school policy and regulations about student conduct 
 28.8   and conditions for dismissal for unsatisfactory conduct; 
 28.9      (8) a detailed schedule of fees, charges for tuition, 
 28.10  books, supplies, tools, student activities, laboratory fees, 
 28.11  service charges, rentals, deposits, and all other charges; 
 28.12     (9) the school policy and regulations, including an 
 28.13  explanation of section 141.271, about refunding tuition, fees, 
 28.14  and other charges if the student does not enter the course 
 28.15  program, withdraws from the program, or the program is 
 28.16  discontinued; 
 28.17     (10) a description of the available facilities and 
 28.18  equipment; 
 28.19     (11) a course outline for each course offered showing 
 28.20  course objectives, subjects or units in the course, type of work 
 28.21  or skill to be learned, and approximate time, hours, or credits 
 28.22  to be spent on each subject or unit; and 
 28.23     (12) the school policy and regulations about granting 
 28.24  credit for previous education and training preparation; 
 28.25     (13) a procedure for investigating and resolving student 
 28.26  complaints; and 
 28.27     (14) the name and address of the Minnesota higher education 
 28.28  services office. 
 28.29     A school exclusively offering a correspondence program is 
 28.30  exempt from clauses (3) and (5). 
 28.31     Sec. 17.  Minnesota Statutes 1998, section 141.25, 
 28.32  subdivision 10, is amended to read: 
 28.33     Subd. 10.  [PLACEMENT RECORDS.] (a) Before a license is 
 28.34  issued to a school that offers, advertises or implies a 
 28.35  placement service, the school shall file with the office for the 
 28.36  past year and thereafter at reasonable intervals determined by 
 29.1   the office, a certified copy of the school's placement record, 
 29.2   containing a list of graduates, a description of their job jobs, 
 29.3   name names of their employer employers, and other information as 
 29.4   the office may prescribe.  
 29.5      (b) Each school that offers a placement service shall 
 29.6   furnish to each prospective student, prior to enrollment, 
 29.7   written information concerning the percentage of the previous 
 29.8   year's graduates who were placed in the occupation for which 
 29.9   trained prepared or in related employment. 
 29.10     Sec. 18.  Minnesota Statutes 1998, section 141.25, 
 29.11  subdivision 12, is amended to read: 
 29.12     Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
 29.13  to a school, each A school licensed under this chapter and 
 29.14  located in Minnesota shall maintain a permanent records record 
 29.15  for all students enrolled at any time each student for 50 years 
 29.16  from the last date of the student's attendance.  Each A school 
 29.17  licensed under this chapter and offering a correspondence course 
 29.18  of instruction long distance program to a student located in 
 29.19  Minnesota shall maintain a permanent records record for each 
 29.20  Minnesota students enrolled at any time student for 50 years 
 29.21  from the last date of the student's attendance.  Records include 
 29.22  school transcripts, documents, and files containing student data 
 29.23  about academic credits earned, courses completed, grades 
 29.24  awarded, degrees awarded, and periods of attendance.  To 
 29.25  preserve permanent records, a school shall submit a plan that 
 29.26  meets the following requirements: 
 29.27     (a) (1) at least one copy of the records must be held in a 
 29.28  secure depository; 
 29.29     (b) (2) an appropriate official must be designated to 
 29.30  provide a student with copies of records or a transcript upon 
 29.31  request; 
 29.32     (c) (3) an alternative method of complying with paragraphs 
 29.33  (a) and (b) clauses (1) and (2) must be established if the 
 29.34  school ceases to exist; and 
 29.35     (d) (4) a continuous surety bond must be filed with the 
 29.36  office in an amount not to exceed $20,000 if the school has no 
 30.1   binding agreement for preserving student records or a trust must 
 30.2   be arranged if the school ceases to exist. 
 30.3      Sec. 19.  [141.251] [LICENSE RENEWAL.] 
 30.4      Subdivision 1.  [CONDITIONS.] The office shall adopt rules 
 30.5   establishing the different conditions for renewal of a license 
 30.6   based on the record of the school.  The conditions shall permit 
 30.7   renewal based on a relaxed standard of scrutiny for a school 
 30.8   that has demonstrated the quality of its program and operation 
 30.9   through longevity and performance.  The office shall specify 
 30.10  minimum longevity standards and performance indicators that must 
 30.11  be met before a school may be permitted to operate under the 
 30.12  relaxed standard of scrutiny. 
 30.13     Subd. 2.  [APPLICATION.] Application for renewal of a 
 30.14  license must be made at least 30 days before expiration of the 
 30.15  current license on a form provided by the office.  A renewal 
 30.16  application shall be accompanied by a nonrefundable fee 
 30.17  established by the office that is sufficient to recover, but 
 30.18  does not exceed, its administrative costs. 
 30.19     Sec. 20.  Minnesota Statutes 1998, section 141.26, 
 30.20  subdivision 2, is amended to read: 
 30.21     Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
 30.22  the permit shall state the full name, address, previous 
 30.23  employment, and such other information concerning the solicitor 
 30.24  applicant as the office may require.  
 30.25     (b) The application shall have attached to it a certified 
 30.26  affidavit signed by a school official and the solicitor 
 30.27  attesting to the fact that the applicant has been furnished a 
 30.28  copy, has read and has knowledge of the provisions of this 
 30.29  chapter and Minnesota Rules, parts 3530.6500 to 3530.7800.  
 30.30     Sec. 21.  [141.265] [INFORMATION TO STUDENTS.] 
 30.31     Subdivision 1.  [CATALOG.] A school or its agent shall 
 30.32  deliver the catalog, brochure, or electronic display required in 
 30.33  section 141.25, subdivision 9, to a prospective student in a 
 30.34  time or manner that provides the prospective student at least 
 30.35  five days to read the catalog, brochure, or electronic display 
 30.36  before signing a contract or enrollment agreement or before 
 31.1   being accepted by a school that does not use a written contract 
 31.2   or enrollment agreement. 
 31.3      Subd. 2.  [CONTRACT INFORMATION.] A contract or enrollment 
 31.4   agreement used by a school must include at least the following: 
 31.5      (1) the name and address of the school, clearly stated; 
 31.6      (2) a clear and conspicuous disclosure that the agreement 
 31.7   is a legally binding instrument upon written acceptance of the 
 31.8   student by the school unless canceled under section 141.271; 
 31.9      (3) the school's cancellation and refund policy that shall 
 31.10  be clearly and conspicuously entitled "Buyer's Right to Cancel"; 
 31.11     (4) a clear statement of total cost of the program 
 31.12  including tuition and all other charges; 
 31.13     (5) the name and description of the program, including the 
 31.14  number of hours or credits of classroom instruction, 
 31.15  correspondence lessons, or other long distance instruction that 
 31.16  shall be included; and 
 31.17     (6) a clear and conspicuous explanation of the form and 
 31.18  means of notice the student should use in the event the student 
 31.19  elects to cancel the contract or sale, the effective date of 
 31.20  cancellation, and the name and address of the seller to which 
 31.21  the notice should be sent or delivered. 
 31.22     Subd. 3.  [CONTRACT COPIES.] Immediately upon signing of 
 31.23  the enrollment agreement or the contract by a prospective 
 31.24  student, the school or agent shall furnish to the prospective 
 31.25  student an exact duplicate copy of the enrollment agreement or 
 31.26  contract.  
 31.27     Sec. 22.  Minnesota Statutes 1998, section 141.271, 
 31.28  subdivision 1, is amended to read: 
 31.29     Subdivision 1.  [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT 
 31.30  TO REFUND STUDENT.] For the purposes of this section, "student" 
 31.31  means the party to the contract, whether the party is the 
 31.32  student, the student's parent or guardian, or other person on 
 31.33  behalf of the student. 
 31.34     Subd. 1a.  [NOTICE; RIGHT TO REFUND.] Every school shall 
 31.35  notify each student, in writing, of acceptance or rejection.  In 
 31.36  the event that the student is rejected by the school, all 
 32.1   tuition, fees and other charges shall be refunded.  
 32.2      Sec. 23.  Minnesota Statutes 1998, section 141.271, 
 32.3   subdivision 2, is amended to read: 
 32.4      Subd. 2.  [SCHOOLS USING WRITTEN CONTRACTS.] (a) 
 32.5   Notwithstanding anything to the contrary, every a school which 
 32.6   that utilizes uses a written contract or enrollment agreement 
 32.7   shall refund all tuition, fees and other charges paid by a 
 32.8   student, if the student gives written notice of cancellation 
 32.9   within five business days after the day on which the contract 
 32.10  was executed regardless of whether the course of instruction 
 32.11  program has started.  
 32.12     (b) With respect to those schools utilizing a written 
 32.13  contract or enrollment agreement, When a student has been 
 32.14  accepted by the school and has entered into a contractual 
 32.15  agreement with the school and gives written notice of 
 32.16  cancellation following the fifth business day after the date of 
 32.17  execution of contract, but before the start of the course of 
 32.18  instruction program in the case of resident schools, or before 
 32.19  the first lesson has been serviced by the school in the case of 
 32.20  correspondence (home study) schools, all tuition, fees and other 
 32.21  charges, except 15 percent of the total cost of the course 
 32.22  program but not to exceed $50, shall be refunded to the student. 
 32.23     Sec. 24.  Minnesota Statutes 1998, section 141.271, 
 32.24  subdivision 3, is amended to read: 
 32.25     Subd. 3.  [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 
 32.26  Notwithstanding anything to the contrary, every a school which 
 32.27  that does not utilize use a written contract or enrollment 
 32.28  agreement shall refund all tuition, fees and other charges paid 
 32.29  by a student if the student gives written notice of cancellation 
 32.30  within five business days after the day on which the student is 
 32.31  accepted by the school regardless of whether the course of 
 32.32  instruction program has started. 
 32.33     (b) With respect to those schools not utilizing a written 
 32.34  contract or enrollment agreement, When a student has been 
 32.35  accepted by the school and gives written notice of cancellation 
 32.36  following the fifth business day after the day of acceptance by 
 33.1   the school, but before the start of the course of 
 33.2   instruction program, in the case of resident schools, or before 
 33.3   the first lesson has been serviced by the school, in the case of 
 33.4   correspondence (home study) distance education schools, all 
 33.5   tuition, fees and other charges, except 15 percent of the total 
 33.6   cost of the course program but not to exceed $50, shall be 
 33.7   refunded to the student. 
 33.8      Sec. 25.  Minnesota Statutes 1998, section 141.271, 
 33.9   subdivision 4, is amended to read: 
 33.10     Subd. 4.  [RESIDENT SCHOOLS.] With respect to all schools 
 33.11  offering a resident course of instruction, When a student has 
 33.12  been accepted by the a school offering a resident program and 
 33.13  gives written notice of cancellation after the start of the 
 33.14  period of instruction for which the student has been charged, 
 33.15  but before completion of 75 percent of the period of instruction 
 33.16  for which the student has been charged, the amount charged for 
 33.17  tuition, fees, and all other charges for the completed portion 
 33.18  of the period of instruction for which the student has been 
 33.19  charged shall not exceed the pro rata be prorated as a portion 
 33.20  of the total charges for tuition, fees, and all other charges 
 33.21  that the length of the completed portion of the period of 
 33.22  instruction for which the student has been charged bears to its 
 33.23  total length, plus.  An additional 25 percent of the total cost 
 33.24  of the period of instruction for which the student has been 
 33.25  charged may be added, but shall not to exceed $100.  After 
 33.26  completion of 75 percent of the period of instruction for which 
 33.27  the student has been charged, no refunds are required.  
 33.28     Sec. 26.  Minnesota Statutes 1998, section 141.271, 
 33.29  subdivision 5, is amended to read: 
 33.30     Subd. 5.  [CORRESPONDENCE HOME STUDY DISTANCE EDUCATION 
 33.31  SCHOOLS.] With respect to all schools offering a correspondence 
 33.32  (home study) course of instruction, When a student has been 
 33.33  accepted by the a distance education school and gives written 
 33.34  notice of cancellation after the first lesson has been completed 
 33.35  by the student and serviced by the school, but before completion 
 33.36  of 75 percent of the course of instruction program, the amount 
 34.1   charged for tuition, fees and all other charges for the 
 34.2   completed lessons shall not exceed the pro rata be prorated as a 
 34.3   portion of the total charges for tuition, fees and all other 
 34.4   charges that the number of lessons completed by the student 
 34.5   bears to the total number of lessons offered, plus.  An 
 34.6   additional 25 percent of the total cost of the course program 
 34.7   may be added but shall not to exceed $75.  After completion of 
 34.8   75 percent of the course of instruction program, no refunds are 
 34.9   required.  
 34.10     Sec. 27.  Minnesota Statutes 1998, section 141.271, 
 34.11  subdivision 6, is amended to read: 
 34.12     Subd. 6.  [COMBINATION CORRESPONDENCE-RESIDENT DISTANCE 
 34.13  EDUCATION-RESIDENT SCHOOLS.] With respect to all schools 
 34.14  offering a combination correspondence (home study)-resident 
 34.15  course of instruction, When a student has been accepted by the a 
 34.16  school that offers a combination distance education-resident 
 34.17  program and gives written notice of cancellation after the start 
 34.18  of the course of instruction program or after the first lesson 
 34.19  has been completed by the student and serviced by the school, 
 34.20  whichever phase comes first, the school shall refund all 
 34.21  tuition, fees and other charges as provided for in subdivision 4 
 34.22  if cancellation occurs during the resident portion, and as 
 34.23  provided for in subdivision 5 if cancellation occurs during the 
 34.24  correspondence portion; provided that,.  If the cancellation 
 34.25  occurs before the student has commenced one of the phases, the 
 34.26  price of that phase shall not be considered in making the 
 34.27  proration and the student shall be entitled to a full refund of 
 34.28  the price thereof charges.  Conversely, if the student has 
 34.29  completed a phase of the course program before cancellation, the 
 34.30  price thereof charges may be retained by the school provided 
 34.31  that the total tuition, fees and other charges for each phase 
 34.32  have been stated separately in the school's catalog or 
 34.33  electronic display and contract or enrollment agreement.  
 34.34     Sec. 28.  Minnesota Statutes 1998, section 141.271, 
 34.35  subdivision 12, is amended to read: 
 34.36     Subd. 12.  [INSTRUMENT NOT TO BE NEGOTIATED.] No A school 
 35.1   shall not negotiate any promissory instrument received as 
 35.2   payment of tuition or other charge prior to completion of 50 
 35.3   percent of the course of instruction program.  Prior to such 
 35.4   that time, such instruments may be transferred by assignment to 
 35.5   purchasers who shall be subject to all defenses available 
 35.6   against the school named as payee.  
 35.7      Sec. 29.  Minnesota Statutes 1998, section 141.28, 
 35.8   subdivision 3, is amended to read: 
 35.9      Subd. 3.  [FALSE STATEMENTS.] No A school, agent, or 
 35.10  solicitor shall not make, or cause to be made, any statement or 
 35.11  representation, oral, written or visual, in connection with the 
 35.12  offering or publicizing of a course program, if such the school, 
 35.13  agent, or solicitor knows or reasonably should have known the 
 35.14  statement or representation to be false, fraudulent, deceptive, 
 35.15  substantially inaccurate, or misleading.  
 35.16     Sec. 30.  Minnesota Statutes 1998, section 141.28, 
 35.17  subdivision 5, is amended to read: 
 35.18     Subd. 5.  [IMPROBABLE COURSE PROGRAM COMPLETION OR 
 35.19  EMPLOYMENT.] No A school, agent, or solicitor shall not enroll a 
 35.20  prospective student when it is obvious that the prospective 
 35.21  student is unlikely to successfully complete a course of 
 35.22  instruction program or is unlikely to qualify for employment in 
 35.23  the vocation or field for which the training preparation is 
 35.24  designed unless this fact is affirmatively disclosed to the 
 35.25  prospective student.  If a prospective student expresses a 
 35.26  desire to enroll after such disclosure, a disclaimer may be 
 35.27  obtained by the school.  Such The disclaimer shall be signed by 
 35.28  the student and shall state substantially as follows one or both 
 35.29  of the following:  "I am fully aware that it is unlikely I will 
 35.30  be able to successfully complete the course of instruction 
 35.31  program" and/or "I am fully aware of the improbability or 
 35.32  impossibility that I will qualify for employment in the vocation 
 35.33  or field for which the course program was designed."  
 35.34     Sec. 31.  Minnesota Statutes 1998, section 141.29, 
 35.35  subdivision 1, is amended to read: 
 35.36     Subdivision 1.  [GROUNDS.] The office may, after notice and 
 36.1   upon providing an opportunity for a hearing, pursuant to under 
 36.2   chapter 14 if requested by the parties adversely affected, 
 36.3   refuse to issue, refuse to renew, revoke, or suspend any a 
 36.4   license or solicitor's permit for any one or any combination of 
 36.5   the following grounds: 
 36.6      (a) (1) violation of any provisions of sections 141.21 to 
 36.7   141.36 141.35 or any rule promulgated adopted by the office; 
 36.8      (b) (2) furnishing to the office false, misleading, or 
 36.9   incomplete information; 
 36.10     (c) (3) presenting to prospective students information 
 36.11  relating to the school which that is false, fraudulent, 
 36.12  deceptive, substantially inaccurate, or misleading; 
 36.13     (d) (4) refusal to allow reasonable inspection or supply 
 36.14  reasonable information after written request therefor by the 
 36.15  office; 
 36.16     (e) (5) the existence of any circumstance which that would 
 36.17  be grounds for the refusal of an initial or renewal license 
 36.18  under section 141.25.  
 36.19     Sec. 32.  Minnesota Statutes 1998, section 141.31, is 
 36.20  amended to read: 
 36.21     141.31 [INJUNCTION.] 
 36.22     Upon application of the attorney general the district 
 36.23  courts shall have jurisdiction to enjoin any violation of 
 36.24  sections 141.21 to 141.36 141.35.  
 36.25     Sec. 33.  Minnesota Statutes 1998, section 141.32, is 
 36.26  amended to read: 
 36.27     141.32 [PENALTY.] 
 36.28     Violation of any provisions a provision of this chapter 
 36.29  shall be a misdemeanor.  Each day's failure to comply with this 
 36.30  chapter shall be a separate violation.  The office shall adopt 
 36.31  rules establishing a list of civil penalties and the fine 
 36.32  associated with each violation. 
 36.33     Sec. 34.  Minnesota Statutes 1998, section 141.35, is 
 36.34  amended to read: 
 36.35     141.35 [EXEMPTIONS.] 
 36.36     None of the provisions of Sections 141.21 to 141.36 141.35 
 37.1   shall not apply to the following: 
 37.2      (a) (1) colleges authorized by the laws of Minnesota or of 
 37.3   any other state or foreign country to grant degrees public 
 37.4   post-secondary institutions; 
 37.5      (2) private post-secondary institutions registered under 
 37.6   sections 136A.61 to 136A.71 that are nonprofit, or that are for 
 37.7   profit and registered under sections 136A.61 to 136A.71 as of 
 37.8   December 31, 1998, or are approved to offer exclusively 
 37.9   baccalaureate or postbaccalaureate programs; 
 37.10     (b) (3) schools of nursing accredited by the state board of 
 37.11  nursing or an equivalent public board of another state or 
 37.12  foreign country; 
 37.13     (c) public schools as defined in section 120A.05, 
 37.14  subdivisions 9, 11, 13, and 17; 
 37.15     (d) (4) private schools complying with the requirements of 
 37.16  section 120A.22, subdivision 2 4; 
 37.17     (e) private and parochial nonprofit schools exempt from 
 37.18  taxation under the constitution of Minnesota; 
 37.19     (f) (5) courses taught to students in a valid 
 37.20  apprenticeship program taught by or required by a trade union; 
 37.21     (g) (6) schools exclusively engaged in training physically 
 37.22  or mentally handicapped persons for the state of Minnesota; 
 37.23     (h) (7) schools now or hereafter licensed by boards 
 37.24  authorized under Minnesota law to issue such licenses; 
 37.25     (i) (8) schools and educational programs, or training 
 37.26  programs, conducted by persons, firms, corporations, or 
 37.27  associations, for the training of their own employees, for which 
 37.28  no fee is charged the employee; 
 37.29     (j) (9) schools engaged exclusively in the teaching of 
 37.30  purely avocational, recreational, or remedial subjects as 
 37.31  determined by the office.  Private schools teaching a method or 
 37.32  procedure to increase the speed with which a student reads are 
 37.33  not within this exemption; 
 37.34     (k) (10) driver training schools and instructors as defined 
 37.35  in section 171.33, subdivisions 1 and 2; 
 37.36     (l) (11) classes, courses, or programs conducted by a bona 
 38.1   fide trade, professional, or fraternal organization, solely for 
 38.2   that organization's membership; 
 38.3      (m) courses of instruction (12) programs in the fine arts 
 38.4   provided by organizations exempt from taxation pursuant to under 
 38.5   section 290.05 and registered with the attorney general pursuant 
 38.6   to under chapter 309.  For the purposes of this clause, "fine 
 38.7   arts" means activities resulting in artistic creation or 
 38.8   artistic performance of works of the imagination which are 
 38.9   engaged in for the primary purpose of creative expression rather 
 38.10  than commercial sale or employment. In making this determination 
 38.11  the office may seek the advice and recommendation of the 
 38.12  Minnesota board of the arts; 
 38.13     (n) (13) classes, courses, or programs intended to fulfill 
 38.14  the continuing education requirements for licensure or 
 38.15  certification in a profession, which classes, courses, or 
 38.16  programs that have been approved by a legislatively or 
 38.17  judicially established board or agency responsible for 
 38.18  regulating the practice of the profession, and which that are 
 38.19  offered primarily to a person who currently practices an 
 38.20  individual practicing the profession; 
 38.21     (o) (14) classes, courses, or programs intended to prepare 
 38.22  students to sit for undergraduate, graduate, postgraduate, or 
 38.23  occupational licensing and occupational entrance examinations; 
 38.24     (p) (15) classes, courses, or programs of a seminar nature 
 38.25  providing 16 or fewer clock hours of instruction that are not 
 38.26  part of the curriculum for an occupation or are not intended to 
 38.27  prepare a person for entry level employment; 
 38.28     (q) (16) classes, courses, or programs of a seminar nature 
 38.29  providing instruction in personal development, modeling, or 
 38.30  acting; and 
 38.31     (r) (17) training or instructional programs, in which one 
 38.32  instructor teaches an individual student, that are not part of 
 38.33  the curriculum for an occupation or are not intended to prepare 
 38.34  a person for entry level employment; and 
 38.35     (18) schools with no physical presence in Minnesota engaged 
 38.36  exclusively in offering distance instruction that is located in 
 39.1   and regulated by other states or jurisdictions.  
 39.2      Sec. 35.  [REPORT REQUIRED.] 
 39.3      (a) The higher education services office shall conduct a 
 39.4   study of the licensure and regulation of private, for-profit 
 39.5   education and training providers in Minnesota and make 
 39.6   recommendations to the legislature regarding: 
 39.7      (1) the appropriate level of regulation of providers of 
 39.8   accelerated custom-designed training courses or programs; and 
 39.9      (2) changes in statutes or rules necessary to reflect the 
 39.10  increased availability of courses and programs offered through 
 39.11  electronic means and the use of the Internet to communicate 
 39.12  information regarding courses and programs. 
 39.13     (b) The recommendations submitted shall: 
 39.14     (1) identify and define terminology associated with 
 39.15  accelerated custom-designed training opportunities; 
 39.16     (2) delineate the minimum standards providers must meet; 
 39.17     (3) delineate the procedures providers must follow to 
 39.18  validate that they have met the standards established; and 
 39.19     (4) specify the providers' contractual and financial 
 39.20  obligations to individuals participating in the training 
 39.21  provided by the providers. 
 39.22     (c) In developing its recommendations, the office shall 
 39.23  consult with the Minnesota High Technology Association and 
 39.24  providers that may be affected by changes in the statutes or 
 39.25  rules.  A report of the findings and recommendations shall be 
 39.26  submitted to the chairs of the senate higher education budget 
 39.27  division and the house higher education finance committee by 
 39.28  January 15, 2000. 
 39.29     Sec. 36.  [REPEALER.] 
 39.30     Minnesota Statutes 1998, sections 141.25, subdivisions 9a, 
 39.31  9b, and 11; and 141.36, are repealed.