1.1 	A bill for an act
1.2 	relating to education; appropriating money for higher education and related 
1.3 	purposes to the Office of Higher Education, the Board of Trustees of the 
1.4 	Minnesota State Colleges and Universities, the board of Regents of the 
1.5 	University of Minnesota, and the Mayo Clinic, with certain conditions; increasing 
1.6 	amounts of matching grants; defining terms; making technical changes; 
1.7 	eliminating certain report requirements; eliminating certain Legislative Advisory 
1.8 	Commission approval requirements; permitting certain interest rate savings and 
1.9 	other agreements; amending certain Pell grant requirements; requiring summary 
1.10 	statistics in required reports; repealing certain data sharing and collecting 
1.11 	requirements; modifying certain aspects of financial aid programs; establishing a 
1.12 	scholarship program for high achieving high school students; establishing the 
1.13 	Minnesota GI bill program; requiring reports; prohibiting issuance, manufacture, 
1.14 	or use of false or fraudulent academic credentials; providing penalties;amending 
1.15 	Minnesota Statutes 2006, sections 13.322, subdivision 3; 135A.031, subdivision 
1.16 	7; 135A.034, subdivision 1; 135A.053, subdivision 2; 135A.14, subdivision 
1.17 	1; 136A.01, subdivision 2; 136A.0411; 136A.08, subdivision 7; 136A.101, 
1.18 	subdivisions 4, 5a; 136A.121, subdivision 5; 136A.125, subdivision 2; 136A.15, 
1.19 	subdivisions 1, 6; 136A.16, subdivisions 1, 2, 5, 8, 9, 10, by adding a subdivision; 
1.20 	136A.17, subdivision 1; 136A.1701, subdivisions 1, 2, 5; 136A.233, subdivision 
1.21 	3; 136A.62, subdivision 3; 136A.63; 136A.65, subdivision 1, by adding a 
1.22 	subdivision; 136A.653; 136A.657, subdivisions 1, 2, 3, by adding a subdivision; 
1.23 	136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 
1.24 	3, 6; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25, subdivisions 
1.25 	1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 141.271, 
1.26 	subdivisions 10, 12; 141.28, subdivision 1; 141.35; proposing coding for new law 
1.27 	in Minnesota Statutes, chapters 136A; 141; 197; repealing Minnesota Statutes 
1.28 	2006, sections 135A.01; 135A.031, subdivisions 1, 2, 3, 4, 5, 6; 135A.032; 
1.29 	135A.033; 136A.07; 136A.08, subdivision 8; 136A.1702; 136A.61.
1.30 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.31 	ARTICLE 1
1.32 	HIGHER EDUCATION APPROPRIATIONS

1.33	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
2.1 	The amounts shown in this section summarize direct appropriations, by fund, made 
2.2 	in this article.

2.3			2008
		2009
		Total
	
2.4	General
	$
	1,597,964,000
	$
	1,618,253,000
	$
	3,216,217,000
	
2.5	Health Care Access
		2,157,000
		2,157,000
		4,314,000
	
2.6	Total
	$
	1,600,121,000
	$
	1,620,410,000
	$
	3,220,531,000

2.7	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.8 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.9 	agencies and for the purposes specified in this article. The appropriations are from the 
2.10 	general fund, or another named fund, and are available for the fiscal years indicated 
2.11 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
2.12 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.13 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.14 	year 2009. "The biennium" is fiscal years 2008 and 2009.

2.15				APPROPRIATIONS
	
2.16				Available for the Year
	
2.17				Ending June 30
	
2.18					2008
		2009

2.19
2.20	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.21	Subdivision 1.Total Appropriation
 	$
	245,393,000
	$
	246,404,000
	
2.22 	The amounts that may be spent for each 
2.23 	purpose are specified in the following 
2.24 	subdivisions.

2.25	Subd. 2.ACHIEVE
 		46,000,000
		46,000,000
	
2.26 	For grants to eligible postsecondary students 
2.27 	under Minnesota Statutes, section 136A.127.
2.28 	Of this appropriation, $249,000 the first 
2.29 	year and $101,000 the second year are for 
2.30 	the administrative costs of operating this 
2.31 	program. For the 2010-2011 biennium, 
2.32 	the base for this program's administrative 
2.33 	costs must be included within the agency 
2.34 	administration program activity.

3.1	Subd. 3.Minnesota GI Bill
 		15,000,000
		15,000,000
	
3.2 	For grants to eligible veterans or the eligible 
3.3 	spouses and children of veterans as provided 
3.4 	under Minnesota Statutes, section 197.791.
3.5 	Of this appropriation, $152,000 the first 
3.6 	year and $104,000 the second year are for 
3.7 	the administrative costs of operating this 
3.8 	program. For the 2010-2011 biennium, 
3.9 	the base for this program's administrative 
3.10 	costs must be included within the agency 
3.11 	administration program activity.

3.12	Subd. 4.State Grants
 		150,254,000
		151,224,000
	
3.13 	If the appropriation in this subdivision for 
3.14 	either year is insufficient, the appropriation 
3.15 	for the other year is available for it.
3.16 	For the biennium, the private institution 
3.17 	tuition maximum is set at $9,838 in each 
3.18 	year for students in four-year programs, and 
3.19 	$6,836 in each year for students in two-year 
3.20 	programs.
3.21 	This appropriation sets the living and 
3.22 	miscellaneous expense allowance at $5,550 
3.23 	each year.

3.24	Subd. 5.Safety Officers Survivors
 		100,000
		100,000
	
3.25 	This appropriation is to provide educational 
3.26 	benefits under Minnesota Statutes, section 
3.27 	299A.45, to dependent children under age 23 
3.28 	and to the spouses of public safety officers 
3.29 	killed in the line of duty.
3.30 	If the appropriation in this subdivision for 
3.31 	either year is insufficient, the appropriation 
3.32 	for the other year is available for it.

3.33	Subd. 6.Interstate Tuition Reciprocity
 		2,000,000
		2,000,000
	
4.1 	If the appropriation in this subdivision for 
4.2 	either year is insufficient, the appropriation 
4.3 	for the other year is available to meet 
4.4 	reciprocity contract obligations.

4.5	Subd. 7.State Work Study
 		12,444,000
		12,444,000

4.6	Subd. 8.Child Care Grants
 		4,934,000
		4,934,000

4.7	Subd. 9.Minitex
 		4,381,000
		4,381,000

4.8	Subd. 10.MnLINK Gateway
 		400,000
		400,000

4.9	Subd. 11.Learning Network of Minnesota
 		4,800,000
		4,800,000

4.10	Subd. 12.Minnesota College Savings Plan
 		1,120,000
		1,120,000

4.11	Subd. 13.Midwest Higher Education Compact
 		90,000
		90,000

4.12	Subd. 14.Other Small Programs
 		920,000
		920,000
	
4.13 	This appropriation includes funding for 
4.14 	postsecondary service learning, student and 
4.15 	parent information, get ready, outreach, and 
4.16 	intervention for college attendance programs.
4.17 	Of this appropriation, $115,000 each year is 
4.18 	for grants to increase campus-community 
4.19 	collaboration and service learning statewide. 
4.20 	For every $1 in state funding, grant 
4.21 	recipients must contribute $2 in campus or 
4.22 	community-based support.

4.23
4.24	Subd. 15.United Family Medicine Residency 
Program
 		360,000
		360,000
	
4.25 	For a grant to the United Family Medicine 
4.26 	residency program. This appropriation 
4.27 	must be used to support up to 18 resident 
4.28 	physicians each year in family practice at 
4.29 	United Family Medicine residency programs 
4.30 	and must prepare doctors to practice family 
4.31 	care medicine in underserved rural and 
4.32 	urban areas of the state. The legislature 
4.33 	intends this program to improve health 
5.1 	care in underserved communities, provide 
5.2 	affordable access to appropriate medical 
5.3 	care, and manage the treatment of patients in 
5.4 	a more cost-effective manner.

5.5	Subd. 16.Agency Administration
 		2,690,000
		2,731,000
	
5.6 	Of this appropriation, $39,000 the first 
5.7 	year and $80,000 the second year are for 
5.8 	compensation-related costs associated with 
5.9 	the delivery of the office's services and 
5.10 	programs.

5.11	Subd. 17.Balances Forward
 					
5.12 	A balance in the first year under this section 
5.13 	does not cancel, but is available for the 
5.14 	second year.

5.15	Subd. 18.Transfers
 					
5.16 	The Office Of Higher Education may 
5.17 	transfer unencumbered balances from the 
5.18 	appropriations in subdivisions 4 to 16 to the 
5.19 	state grant appropriation, the safety officer 
5.20 	survivors appropriation, the interstate tuition 
5.21 	reciprocity appropriation, the Minnesota 
5.22 	college savings plan appropriation, the child 
5.23 	care appropriation, and the state work study 
5.24 	appropriation.

5.25	Subd. 19.Reporting
 					
5.26 	(a) By November 1 and February 15, the 
5.27 	office must provide updated state grant 
5.28 	spending projections taking into account 
5.29 	the most current and projected enrollment 
5.30 	and tuition and fee information, economic 
5.31 	conditions, and other relevant factors. 
5.32 	Before submitting state grant spending 
5.33 	projections, the office must meet and consult 
5.34 	with representatives of public and private 
6.1 	postsecondary education, the Department of 
6.2 	Finance, governor's office, legislative staff, 
6.3 	and financial aid administrators.
6.4 	(b) The Minnesota Office of Higher 
6.5 	Education shall report to the higher education 
6.6 	divisions of the house and senate finance 
6.7 	committees on participation in postsecondary 
6.8 	education by income, and persistence and 
6.9 	graduation rates of state grant recipients 
6.10 	compared to students who did not receive 
6.11 	state grants. The office is authorized to match 
6.12 	individual student data from the student 
6.13 	record enrollment database with individual 
6.14 	student data from the state grant database on 
6.15 	data elements necessary to perform the study.

6.16
6.17
6.18	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

6.19	Subdivision 1.Total Appropriation
 	$
	664,194,000
	$
	663,194,000
	
6.20 	The amounts that may be spent for each 
6.21 	purpose are specified in the following 
6.22 	subdivisions.

6.23	Subd. 2.General Appropriation
 		664,194,000
		638,194,000
	
6.24 	Of this appropriation, $6,000,000 each year 
6.25 	is for the board to develop or strengthen 
6.26 	projects to improve campus recruitment and 
6.27 	retention of underserved or underrepresented 
6.28 	students.
6.29 	Of this appropriation, $1,500,000 each year 
6.30 	is for the board to develop curricula in allied 
6.31 	health programs, including instruction in 
6.32 	electronic medical record technology.
6.33 	Of this appropriation, $1,500,000 each year 
6.34 	is for the board to select, as provided under 
6.35 	Minnesota Statutes, section 136F.31, and 
7.1 	provide support to one additional center of 
7.2 	excellence in the area of biosciences at the 
7.3 	program or campus level.
7.4 	Of this appropriation, $5,000,000 each year 
7.5 	is for the board to improve and expand 
7.6 	educational offerings in the areas of science, 
7.7 	technical, engineering, and math education.
7.8 	Of this appropriation, $3,000,000 the 
7.9 	first year and $7,000,000 the second year 
7.10 	is to provide resources for the board to 
7.11 	implement management innovations that 
7.12 	remove internal barriers to innovation and 
7.13 	responsiveness.
7.14 	Of this appropriation, $45,000,000 the 
7.15 	first year and $15,000,000 the second 
7.16 	year is for the board to upgrade and 
7.17 	support MnSCUa??s technology environment, 
7.18 	including enhanced security management, 
7.19 	network modernization, and new technology 
7.20 	architecture.

7.21	Subd. 3.Performance Bonus
 		-0-
		25,000,000
	
7.22 	(a) This is a onetime appropriation in the 
7.23 	second year that is available after the board 
7.24 	meets the requirements of this subdivision.
7.25 	(b) The board, on or before April 1, 2008, 
7.26 	must report to the house Higher Education 
7.27 	and Work Force Development Finance and 
7.28 	Policy Division, the senate Higher Education 
7.29 	Budget and Policy Division, and the Office of 
7.30 	Higher Education on the board's attainment 
7.31 	of each performance goal specified in this 
7.32 	subdivision.
7.33 	(c) The appropriation is available after the 
7.34 	board demonstrates to the commissioner of 
8.1 	finance that the board has met at least three 
8.2 	of the following five performance goals:
8.3 	(1) an increase in the percentage of students 
8.4 	who take college-level courses in science, 
8.5 	technology, engineering, and math of at least 
8.6 	five percent over fiscal year 2007 levels;
8.7 	(2) an increase in the enrollment of upper 
8.8 	division-designated center of excellence 
8.9 	programs by at least five percent each year 
8.10 	over fiscal year 2007 levels;
8.11 	(3) an increase in the number of students 
8.12 	trained on the use of electronic medical 
8.13 	record technology by at least 1,400 over 
8.14 	fiscal year 2007 levels;
8.15 	(4) an increase in the number of students 
8.16 	taking online courses, or an increase in the 
8.17 	number of online course offerings, by at least 
8.18 	ten percent over fiscal year 2007 levels; and 
8.19 	(5) an expansion by at least ten percent over 
8.20 	2006-2007 biennium levels in the reach 
8.21 	or utilization of "awards of excellence" 
8.22 	or other initiatives that reward member 
8.23 	institutions, faculty, administrators, or 
8.24 	staff for innovations designed to advance 
8.25 	excellence and efficiency.
8.26 	(d) By October 1, 2007, the board and the 
8.27 	Office of Higher Education must agree on 
8.28 	specific numerical indicators and definitions 
8.29 	for each of the five goals that will be used to 
8.30 	demonstrate the Minnesota State Colleges 
8.31 	and Universities' attainment of each goal.

8.32
8.33	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

8.34	Subdivision 1.Total Appropriation
 	$
	689,332,000
	$
	709,562,000
	
9.1 	The amounts that may be spent for each 
9.2 	purpose are specified in the following 
9.3 	subdivisions.

9.4	Subd. 2.Operations and Maintenance
 		623,462,000
		618,692,000
	
9.5 	Of this amount, $38,000,000 in fiscal year 
9.6 	2008 is for the direct and indirect expenses 
9.7 	of the collaborative research partnership 
9.8 	between the University and the Mayo 
9.9 	Foundation for research in biotechnology 
9.10 	and medical genomics. This is a onetime 
9.11 	appropriation that is available until expended. 
9.12 	An annual report on the expenditure of these 
9.13 	funds must be submitted to the governor and 
9.14 	to the chairs of the senate Higher Education 
9.15 	and Economic Development Budget 
9.16 	Divisions, and the house Higher Education 
9.17 	and Work Force Development Policy and 
9.18 	Finance Division by June 30 of each fiscal 
9.19 	year until the appropriation is expended.
9.20 	Of this amount, $3,450,000 each year 
9.21 	is for the board to make investments in 
9.22 	the university's technology and related 
9.23 	infrastructure.
9.24 	Of this amount, $9,800,000 the first year and 
9.25 	$18,700,000 the second year are to award 
9.26 	faculty and staff compensation increases 
9.27 	differentially.
9.28 	Of this amount, $8,800,000 the first year 
9.29 	and $19,100,000 the second year are for 
9.30 	the board's health workforce and clinical 
9.31 	sciences initiative.
9.32 	Of this amount, $4,100,000 the first year 
9.33 	and $11,500,000 the second year are for the 
9.34 	board's initiatives in science and engineering.
10.1 	Of this amount, $3,100,000 the first year 
10.2 	and $8,400,000 the second year are for 
10.3 	the board's initiatives relating to the 
10.4 	environment, agriculture, and renewable 
10.5 	energy.

10.6	Subd. 3.Performance Bonus
 		-0-
		25,000,000
	
10.7 	(a) This is a onetime appropriation in the 
10.8 	second year that is available after the board 
10.9 	meets the requirements of this subdivision.
10.10 	(b) The board, on or before April 1, 2008, 
10.11 	must report to the house Higher Education 
10.12 	and Work Force Development Finance and 
10.13 	Policy Division, the senate Higher Education 
10.14 	Budget and Policy Division, and the Office of 
10.15 	Higher Education on the board's attainment 
10.16 	of each performance goal specified in this 
10.17 	subdivision.
10.18 	(c) The appropriation is available after the 
10.19 	board demonstrates to the commissioner of 
10.20 	finance that the board has met at least three 
10.21 	of the following five performance goals:
10.22 	(1) an increase in the percentage of national 
10.23 	faculty awards in arts, humanities, science, 
10.24 	engineering, and health of at least five 
10.25 	percent over fiscal year 2007 levels;
10.26 	(2) to maintain or improve the universitya??s 
10.27 	rank in its national share of funding from 
10.28 	the National Institutes of Health over 2007 
10.29 	levels;
10.30 	(3) an increase in the percentage of 
10.31 	postdoctoral appointees of at least five 
10.32 	percent over fiscal year 2007 levels;
10.33 	(4) an increase in the amount of financial 
10.34 	support from key funders of renewable 
11.1 	energy research by at least five percent over 
11.2 	fiscal year 2007 levels; and 
11.3 	(5) an increase of at least five in the number 
11.4 	of "high value licenses" to a Minnesota-based 
11.5 	commercial partner, or in the number of 
11.6 	"venture-quality start-up companies" in 
11.7 	Minnesota that are identified and developed 
11.8 	by the universitya??s Office of Technology 
11.9 	Commercialization over the number of these 
11.10 	licenses or start-up companies that were 
11.11 	identified or developed by the university in 
11.12 	the 2006-2007 biennium.
11.13 	(d) By October 1, 2007, the board and the 
11.14 	Office of Higher Education, must agree on 
11.15 	specific numerical indicators and definitions 
11.16 	for each of the five goals that will be used 
11.17 	to demonstrate the university's attainment of 
11.18 	each goal.

11.19	Subd. 4.Health Care Access Fund
 		2,157,000
		2,157,000
	
11.20 	This appropriation is from the health care 
11.21 	access fund and is for primary care education 
11.22 	initiatives.

11.23	Subd. 5.Special Appropriation
 		63,713,000
		63,713,000

11.24	(a) Agriculture and Extension Service
		50,625,000
		50,625,000
	
11.25 	This appropriation is for the Agricultural 
11.26 	Experiment Station, Minnesota Extension 
11.27 	Service.

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

12.11	(c) Institute of Technology
		1,387,000
		1,387,000
	
12.12 	This appropriation is for the geological 
12.13 	survey and the talented youth mathematics 
12.14 	program.

12.15	(d) System Specials
		6,426,000
		6,426,000
	
12.16 	This appropriation is for general research, 
12.17 	student loans matching money, industrial 
12.18 	relations education, Natural Resources 
12.19 	Research Institute, Center for Urban and 
12.20 	Regional Affairs, Bell Museum of Natural 
12.21 	History, and the Humphrey exhibit.

12.22	Subd. 6.Academic Health Center
 					
12.23 	The appropriation for Academic Health 
12.24 	Center funding under Minnesota Statutes, 
12.25 	section 297F.10, is $22,250,000 each year.

12.26	Sec. 6. MAYO CLINIC

12.27	Subdivision 1.Total Appropriation
 	$
	1,202,000
	$
	1,250,000
	
12.28 	The amounts that may be spent for each 
12.29 	purpose are specified in the following 
12.30 	subdivisions.

12.31	Subd. 2.Medical School
 		591,000
		615,000
	
12.32 	The state of Minnesota must pay a capitation 
12.33 	each year for each student who is a resident 
13.1 	of Minnesota. The appropriation may be 
13.2 	transferred between years of the biennium to 
13.3 	accommodate enrollment fluctuations. The 
13.4 	funding base for this program is $640,000 in 
13.5 	fiscal year 2010 and $665,000 in fiscal year 
13.6 	2011.
13.7 	It is intended that during the biennium the 
13.8 	Mayo Clinic use the capitation money to 
13.9 	increase the number of doctors practicing in 
13.10 	rural areas in need of doctors.

13.11
13.12	Subd. 3.Family Practice and Graduate 
Residency Program
 		611,000
		635,000
	
13.13 	The state of Minnesota must pay stipend 
13.14 	support for up to 27 residents each year. The 
13.15 	funding base for this program is $660,000 in 
13.16 	fiscal year 2010 and $686,000 in fiscal year 
13.17 	2011.

13.18 	ARTICLE 2
13.19 	RELATED HIGHER EDUCATION PROVISIONS

13.20 	Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
13.21 		Subd. 3.Minnesota Office of Higher Education. (a) General. Data sharing 
13.22 	involving the Minnesota Office of Higher Education and other institutions is governed 
13.23 	by sections section136A.05 and 136A.08, subdivision 8. 
13.24 	(b) Student financial aid. Data collected and used by the Minnesota Office of 
13.25 	Higher Education on applicants for financial assistance are classified under section 
13.26 	136A.162. 
13.27 	(c) Minnesota college savings plan data. Account owner data, account data, and 
13.28 	data on beneficiaries of accounts under the Minnesota college savings plan are classified 
13.29 	under section 136G.05, subdivision 10. 
13.30 	(d) School financial records. Financial records submitted by schools registering 
13.31 	with the Minnesota Office of Higher Education are classified under section 136A.64. 
13.32 	(e) Enrollment and financial aid data. Data collected from eligible institutions on 
13.33 	student enrollment and federal and state financial aid are governed by sections 136A.121, 
13.34 	subdivision 18, and 136A.1701, subdivision 11.

14.1 	Sec. 2. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
14.2 		Subd. 7.Reports. Instructional expenditure and enrollment data for each 
14.3 	instructional category shall be submitted by the public postsecondary systems to the 
14.4 	Minnesota Office of Higher Education and the Department of Finance and included in the 
14.5 	biennial budget document. The specific data shall be submitted only after the director of 
14.6 	the Minnesota Office of Higher Education has consulted with a data advisory task force to 
14.7 	determine the need, content, and detail of the information.

14.8 	Sec. 3. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read:
14.9 		Subdivision 1.Operating budget. The governing boards of the University of 
14.10 	Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 
14.11 	legislative and executive branch acceptance, its highest budget priorities in accordance 
14.12 	with statewide objectives for higher education. It is the intent of the legislature to 
14.13 	appropriate at least 67 percent of the total cost of instruction after adjusting for inflation 
14.14 	and enrollment changes. However, in the event of a budget shortfall, or if funding of 
14.15 	inflation is not possible, available funding shall first be applied to the agreed upon budget 
14.16 	priorities.

14.17 	Sec. 4. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:
14.18 		Subd. 2.Performance and accountability. Higher education systems and 
14.19 	campuses are expected to achieve the objectives in subdivision 1 and will be held 
14.20 	accountable for doing so. The legislature is increasing the flexibility of the systems and 
14.21 	campuses to provide greater responsibility to higher education in deciding how to achieve 
14.22 	statewide objectives, and to decentralize authority so that those decisions can be made 
14.23 	at the level where the education is delivered. To demonstrate their accountability, the 
14.24 	legislature expects each system and campus to measure and report on its performance, 
14.25 	using meaningful indicators that are critical to achieving the objectives in subdivision 1, 
14.26 	as provided in section 135A.033. Nothing in this section precludes a system or campus 
14.27 	from determining its own objectives and performance measures beyond those identified 
14.28 	in this section. 

14.29 	Sec. 5. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:
14.30 		Subdivision 1.Definitions. As used in this section, the following terms have the 
14.31 	meanings given them.
14.32 	(a) "Administrator" means the administrator of the institution or other person with 
14.33 	general control and supervision of the institution.
15.1 	(b) "Public or private postsecondary educational institution" or "institution" means 
15.2 	any of the following institutions having an enrollment of more than 100 persons during 
15.3 	any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 
15.4 	(2) the state universities; (3) the state community colleges; (4) public technical colleges; 
15.5 	(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 
15.6 	and (7) schools subject to either chapter 141, sections 136A.61136A.615 to 136A.71, or 
15.7 	schools exempt under section 136A.657, and which offer educational programs within the 
15.8 	state for an academic year greater than six consecutive months. An institution's report to 
15.9 	the Minnesota Office of Higher Education or the Minnesota Department of Education may 
15.10 	be considered when determining enrollment. 
15.11 	(c) "Student" means a person born after 1956 who did not graduate from a Minnesota 
15.12 	high school in 1997 or later, and who is (1) registering for more than one class during 
15.13 	a full academic term, such as a quarter or a semester or (2) housed on campus and is 
15.14 	registering for one or more classes. Student does not include persons enrolled in extension 
15.15 	classes only or correspondence classes only.

15.16 	Sec. 6. [136A.002] DEFINITIONS.
15.17 		Subdivision 1.Scope. For purposes of this chapter, the terms defined in this section 
15.18 	have the meanings given them.
15.19 		Subd. 2.Office of Higher Education; office. "Office of Higher Education" or 
15.20 	"office" means the Minnesota Office of Higher Education.

15.21 	Sec. 7. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:
15.22 		Subd. 2.Responsibilities. The Minnesota Office of Higher Education is responsible 
15.23 	for:
15.24 	(1) necessary state level administration of financial aid programs, including 
15.25 	accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 
15.26 	financial aid programs to the governor and the legislature;
15.27 	(2) approval, registration, licensing, and financial aid eligibility of private collegiate 
15.28 	and career schools, under sections 136A.61136A.615 to 136A.71 and chapter 141;
15.29 	(3) administering the Learning Network of Minnesota;
15.30 	(4) negotiating and administering reciprocity agreements;
15.31 	(5) publishing and distributing financial aid information and materials, and other 
15.32 	information and materials under section 136A.87, to students and parents;
16.1 	(6) collecting and maintaining student enrollment and financial aid data and 
16.2 	reporting data on students and postsecondary institutions to develop and implement a 
16.3 	process to measure and report on the effectiveness of postsecondary institutions;
16.4 	(7) administering the federal programs that affect students and institutions on a 
16.5 	statewide basis; and
16.6 	(8) prescribing policies, procedures, and rules under chapter 14 necessary to 
16.7 	administer the programs under its supervision.

16.8 	Sec. 8. Minnesota Statutes 2006, section 136A.0411, is amended to read:
16.9 	136A.0411 COLLECTING FEES.
16.10 	The office may charge fees for seminars, conferences, workshops, services, and 
16.11 	materials. The office may collect fees for registration and licensure of private institutions 
16.12 	under sections 136A.61136A.615 to 136A.71 and chapter 141. The money is annually 
16.13 	appropriated to the office. 

16.14 	Sec. 9. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
16.15 		Subd. 7.Reporting. The Minnesota Office of Higher Education must annually, 
16.16 	before the last day in January, submit a report to the committees in the house of 
16.17 	representatives and the senate with responsibility for higher education finance on:
16.18 	(1) participation in the tuition reciprocity program by Minnesota students and 
16.19 	students from other states attending Minnesota postsecondary institutions under a 
16.20 	reciprocity agreement;
16.21 	(2) reciprocity and resident tuition rates at each institution; and
16.22 	(3) interstate payments and obligations for each state participating in the tuition 
16.23 	reciprocity program in the prior year.; and
16.24 	(4) summary statistics on number of graduates by institution, degree granted, and 
16.25 	year of graduation for reciprocity students who attended Minnesota postsecondary 
16.26 	institutions.

16.27 	Sec. 10. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
16.28 		Subd. 4.Eligible institution. "Eligible institution" means a postsecondary 
16.29 	educational institution located in this state or in a state with which the office has entered 
16.30 	into a higher education reciprocity agreement on state student aid programs that either (1) 
16.31 	is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 
16.32 	operated publicly or privately and, as determined by the office, meets all of the following: 
16.33 	(i) maintains academic standards substantially equivalent to those of comparable 
17.1 	institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 
17.2 	by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 
17.3 	Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

17.4 	Sec. 11. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 
17.5 	read:
17.6 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
17.7 	the amount of a familyfamily's contribution to a student's cost of attendance, as determined 
17.8 	by a federal need analysis. For dependent students, the assigned family responsibility is 
17.9 	95 percent of the parental contribution. For independent students with dependents other 
17.10 	than a spouse, the assigned family responsibility is 85 percent of the student contribution. 
17.11 	For independent students without dependents other than a spouse, the assigned family 
17.12 	responsibility is 7267 percent of the student contribution. The assigned family 
17.13 	responsibility for all other independent students is 90 percent of the student contribution.

17.14 	Sec. 12. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
17.15 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
17.16 	responsibility for covering the recognized cost of attendance by the applicant, the 
17.17 	applicant's family, and the government. The amount of a financial stipend must not 
17.18 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
17.19 	deducting the following:
17.20 	(1) the assigned student responsibility of at least 46 percent of the cost of attending 
17.21 	the institution of the applicant's choosing;
17.22 	(2) the assigned family responsibility as defined in section 136A.101; and 
17.23 	(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
17.24 	In the case of a student who is confined to a Minnesota correctional institution, the amount 
17.25 	of the federal Pell grant for which the student would have been eligible if the student 
17.26 	were not incarcerated will be subtracted.
17.27 	The minimum financial stipend is $100 per academic year.

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

17.29 	Sec. 13. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
17.30 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
17.31 	the applicant:
17.32 	(1) is a resident of the state of Minnesota;
18.1 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
18.2 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
18.3 	regular basis from a licensed or legal, nonlicensed caregiver;
18.4 	(3) is income eligible as determined by the office's policies and rules, but is not a 
18.5 	recipient of assistance from the Minnesota family investment program;
18.6 	(4) has not earned a baccalaureate degree and has been enrolled full time less than 
18.7 	eight semesters or the equivalent;
18.8 	(5) is pursuing a nonsectarian program or course of study that applies to an 
18.9 	undergraduate degree, diploma, or certificate;
18.10 	(6) is enrolled at least half time in an eligible institution; and
18.11 	(7) is in good academic standing and making satisfactory academic progress.
18.12 	(b) A student who withdraws from enrollment for active military service is entitled 
18.13 	to an additional semester or the equivalent of grant eligibility and will be considered to be 
18.14 	in continuing enrollment status upon return.

18.15 	Sec. 14. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
18.16 		Subdivision 1.Scope. For purposes of sections 136A.15 to 136A.1702 136A.1701, 
18.17 	the terms defined in this section have the meanings ascribed togiven them. 

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

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

19.1 	Sec. 17. Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:
19.2 		Subd. 2.Rules. The office shall adopt policies and prescribe appropriate rules to 
19.3 	carry out the purposes of sections 136A.15 to 136A.1702 136A.1701. The policies and 
19.4 	rules except as they relate to loans under section 136A.1701 must be compatible with 
19.5 	the provisions of the National Vocational Student Loan Insurance Act of 1965 and the 
19.6 	provisions of title IV of the Higher Education Act of 1965, and any amendments thereof. 

19.7 	Sec. 18. Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:
19.8 		Subd. 5.Agencies. The office may contract with guarantee agencies, insurance 
19.9 	agencies, collection agencies, or any other person, to carry out the purposes of sections 
19.10 	136A.15 to 136A.1702 136A.1701. 

19.11 	Sec. 19. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:
19.12 		Subd. 8.Investment. Money made available to the office that is not immediately 
19.13 	needed for the purposes of sections 136A.15 to 136A.1702 136A.1701 may be invested 
19.14 	by the office. The money must be invested in bonds, certificates of indebtedness, and 
19.15 	other fixed income securities, except preferred stocks, which are legal investments for the 
19.16 	permanent school fund. The money may also be invested in prime quality commercial 
19.17 	paper that is eligible for investment in the state employees retirement fund. All interest 
19.18 	and profits from such investments inure to the benefit of the office or may be pledged for 
19.19 	security of bonds issued by the office or its predecessor, the Minnesota Higher Education 
19.20 	Coordinating Board. 

19.21 	Sec. 20. Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:
19.22 		Subd. 9.Staff. The office may employ the professional and clerical staff the 
19.23 	director deems necessary for the proper administration of the loan programs established 
19.24 	and defined by sections 136A.15 to 136A.1702 136A.1701. 

19.25 	Sec. 21. Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:
19.26 		Subd. 10.Director. Subject to its directives and review, the office may delegate to 
19.27 	the director the responsibility for issuance of public information concerning provisions of 
19.28 	sections 136A.15 to 136A.1702 136A.1701, for design of loan application forms, and for 
19.29 	prescribing procedures for submission of applications for loans. 

19.30 	Sec. 22. Minnesota Statutes 2006, section 136A.16, is amended by adding a 
19.31 	subdivision to read:
20.1 		Subd. 16.Interest rate swaps and other agreements. (a) The office may enter into 
20.2 	interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 
20.3 	or other comparable interest rate protection agreements with a third party in connection 
20.4 	with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 
20.5 	comparable interest rate protection agreements.
20.6 	(b) The agreements authorized by this subdivision include, without limitation, master 
20.7 	agreements, options, or contracts to enter into those agreements in the future and related 
20.8 	agreements, including, without limitation, agreements to provide credit enhancement, 
20.9 	liquidity, or remarketing.
20.10 	(c) The agreements authorized by this subdivision may be entered into on the basis 
20.11 	of negotiation with a qualified third party or through a competitive proposal process on 
20.12 	terms and conditions as and with covenants and provisions approved by the office and 
20.13 	may include, without limitation:
20.14 	(1) provisions establishing reserves;
20.15 	(2) pledging assets or revenues of the office for current or other payments or 
20.16 	termination payments;
20.17 	(3) contracting with the other parties to the agreements to provide for the custody, 
20.18 	collection, securing, investment, and payment of money of the office or money held in 
20.19 	trust; or
20.20 	(4) requiring the issuance of bonds or other agreements authorized by this section 
20.21 	in the future.
20.22 	(d) With respect to bonds or notes outstanding or proposed to be issued bearing 
20.23 	interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 
20.24 	or at a different variable rate determined in accordance with a formula set out in the 
20.25 	agreement on an amount not exceeding the outstanding principal amount of the bonds or 
20.26 	notes at the time of payment in exchange for an agreement by the third party to pay sums 
20.27 	equal to interest on a like amount at a variable rate determined according to a formula 
20.28 	set out in the agreement.
20.29 	(e) With respect to bonds or notes outstanding or proposed to be issued bearing 
20.30 	interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 
20.31 	variable rate determined in accordance with a formula set out in the agreement on an 
20.32 	amount not exceeding the outstanding principal amount of the bonds or notes at the time of 
20.33 	payment in exchange for an agreement by the third party to pay sums equal to interest on a 
20.34 	like amount at a fixed rate or rates determined according to a formula set in the agreement.
20.35 	(f) Subject to any applicable covenants of the office, payments required to be made 
20.36 	by the office under the agreement, including termination payments, may be made from 
21.1 	amounts pledged or available to pay debt service on the bonds or notes with respect to 
21.2 	which the agreement was made or from assets of the loan capital fund of the office. 
21.3 	The office may issue bonds or notes to provide for any payments, including, without 
21.4 	limitation, a termination payment due or to become due under an agreement authorized 
21.5 	under this section.

21.6 	Sec. 23. Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:
21.7 		Subdivision 1.Eligibility. A student is eligible to apply for a loan under sections 
21.8 	136A.15 to 136A.1702 136A.1701 if the office finds that the student is an eligible student 
21.9 	as defined in those sections and is eligible for a loan under federal laws and regulations 
21.10 	governing the federal guaranteed student loan programs. 

21.11 	Sec. 24. Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to 
21.12 	read:
21.13 		Subdivision 1.Establishment of program. The Minnesota Office of Higher 
21.14 	Education may provide for programs of loans which may be made in lieu of or in addition 
21.15 	to loans authorized under sections 136A.15 to 136A.1702 136A.1701 and applicable 
21.16 	provisions of federal law as provided in this section. 

21.17 	Sec. 25. Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to 
21.18 	read:
21.19 		Subd. 2.Purpose of program. The purpose of the loan programs under this section 
21.20 	is to provide financial assistance for the postsecondary education of students who are 
21.21 	eligible students whether or not such students qualify for a loan or loans under other 
21.22 	provisions of sections 136A.15 to 136A.1702 136A.1701. 
21.23 	Loans granted to students may be used solely for educational purposes.

21.24 	Sec. 26. Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to 
21.25 	read:
21.26 		Subd. 5.Maximum loans for students. Loans made under this section or sections 
21.27 	136A.15 to 136A.1702 136A.1701 to an individual eligible student for vocational study 
21.28 	may be made for a maximum of three academic years or their equivalent and loans made 
21.29 	to any other individual eligible student may be made for a maximum of eight academic 
21.30 	years or their equivalent. 

21.31 	Sec. 27. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
22.1 		Subd. 3.Payments. Work-study payments shall be made to eligible students by 
22.2 	postsecondary institutions as provided in this subdivision.
22.3 	(a) Students shall be selected for participation in the program by the postsecondary 
22.4 	institution on the basis of student financial need.
22.5 	(b) In selecting students for participation, priority must be given to students enrolled 
22.6 	for at least 12 credits. In each academic year, a student may be awarded work-study 
22.7 	payments for one period of nonenrollment or less than half-time enrollment if the student 
22.8 	will enroll on at least a half-time basis during the following academic term.
22.9 	(c) Students will be paid for hours actually worked and the maximum hourly rate 
22.10 	of pay shall not exceed the maximum hourly rate of pay permitted under the federal 
22.11 	college work-study program.
22.12 	(d) Minimum pay rates will be determined by an applicable federal or state law.
22.13 	(e) The office shall annually establish a minimum percentage rate of student 
22.14 	compensation to be paid by an eligible employer.
22.15 	(f) Each postsecondary institution receiving money for state work-study grants 
22.16 	shall make a reasonable effort to place work-study students in employment with eligible 
22.17 	employers outside the institution. However, a public employer other than the institution 
22.18 	may not terminate, lay off, or reduce the working hours of a permanent employee for the 
22.19 	purpose of hiring a work-study student, or replace a permanent employee who is on layoff 
22.20 	from the same or substantially the same job by hiring a work-study student.
22.21 	(g) The percent of the institution's work-study allocation provided to graduate 
22.22 	students shall not exceed the percent of graduate student enrollment at the participating 
22.23 	institution.
22.24 	(h) An institution may use up to 30 percent of its allocation for student internships 
22.25 	with private, for-profit employers.

22.26 	Sec. 28. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
22.27 		Subdivision 1.Grants. The director of the Minnesota Office of Higher Education 
22.28 	shall award grants to foster postsecondary attendance and retention by providing outreach 
22.29 	services to historically underserved students in grades six through 12 and historically 
22.30 	underrepresented college students. Grants must be awarded to programs that provide 
22.31 	precollege services, including, but not limited to:
22.32 	(1) academic counseling;
22.33 	(2) mentoring;
22.34 	(3) fostering and improving parental involvement in planning for and facilitating a 
22.35 	college education;
23.1 	(4) services for students with English as a second language;
23.2 	(5) academic enrichment activities;
23.3 	(6) tutoring;
23.4 	(7) career awareness and exploration;
23.5 	(8) orientation to college life;
23.6 	(9) assistance with high school course selection and information about college 
23.7 	admission requirements; and
23.8 	(10) financial aid counseling.
23.9 	Grants shall be awarded to postsecondary institutions, professional organizations, 
23.10 	community-based organizations, or others deemed appropriate by the director.
23.11 	Grants shall be awarded for one year and may be renewed for a second year with 
23.12 	documentation to the Minnesota Office of Higher Education of successful program 
23.13 	outcomes.

23.14 	Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
23.15 		Subd. 2.Eligible students. Eligible students include students in grades six through 
23.16 	12 who meet one or more of the following criteria:
23.17 	(1) are counted under section 1124(c) of the Elementary and Secondary Education 
23.18 	Act of 1965 (Title I);
23.19 	(2) are eligible for free or reduced-price lunch under the National School Lunch Act;
23.20 	(3) receive assistance under the Temporary Assistance for Needy Families Law (Title 
23.21 	I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
23.22 	(4) are a member of a group traditionally underrepresented in higher education.
23.23 	Eligible undergraduate students include those who met the student eligibility criteria 
23.24 	as 6th through 12th graders.

23.25 	Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
23.26 		Subd. 3.Application process. The director of the Minnesota Office of Higher 
23.27 	Education shall develop a grant application process. The director shall attempt to support 
23.28 	projects in a manner that ensures that eligible students throughout the state have access 
23.29 	to precollegeprogram services.
23.30 	The grant application must include, at a minimum, the following information:
23.31 	(1) a description of the characteristics of the students to be served reflective of the 
23.32 	need for services listed in subdivision 1;
23.33 	(2) a description of the services to be provided and a timeline for implementation of 
23.34 	the activities;
24.1 	(3) a description of how the services provided will foster postsecondary attendance
24.2 	and support postsecondary retention;
24.3 	(4) a description of how the services will be evaluated to determine whether the 
24.4 	program goals were met; and
24.5 	(5) other information as identified by the director.
24.6 	Grant recipients must specify both program and student outcome goals, and performance 
24.7 	measures for each goal.

24.8 	Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
24.9 		Subd. 6.Program evaluation. Each grant recipient must annually submit a report 
24.10 	to the Minnesota Office of Higher Education delineating its program and student outcome 
24.11 	goals, and activities implemented to achieve the stated outcomes. The goals must be 
24.12 	clearly stated and measurable. Grant recipients are required to collect, analyze, and report 
24.13 	on participation and outcome data that enable the office to verify that the program goals 
24.14 	were met. The office shall maintain:
24.15 	(1) information about successful precollege program and undergraduate student 
24.16 	retention program activities for dissemination to individuals throughout the state interested 
24.17 	in adopting or replicating successful program practices; and
24.18 	(2) data on the success of the funded projects in increasing the high school 
24.19 	graduation and, college participation, and college graduation rates of students served 
24.20 	by the grant recipients. The office may convene meetings of the grant recipients, as 
24.21 	needed, to discuss issues pertaining to the implementation of precollege services and 
24.22 	undergraduate retention programs.

24.23 	Sec. 32. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
24.24 		Subd. 5.Amount of matching grant. The amount of the matching grant for a 
24.25 	beneficiary equals:
24.26 	(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 
24.27 	of the contributions made to the beneficiary's account during the calendar year, not to 
24.28 	exceed $300 $400; and
24.29 	(2) if the beneficiary's family income is more than $50,000 but not more than 
24.30 	$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 
24.31 	during the calendar year, not to exceed $300 $400.

24.32 	Sec. 33.  REPEALER.
 25.1 	Minnesota Statutes 2006, sections 135A.01; 135A.031, subdivisions 1, 2, 3, 4, 5, and 
25.2 	6; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; and 136A.1702, are repealed.

25.3 	ARTICLE 3
25.4 	ACHIEVE SCHOLARSHIP

25.5 	Section 1. [136A.127] ACADEMIC COMPETITIVENESS HIGHLIGHTING 
25.6 	INDIVIDUAL EXCELLENCE AND VALUING EDUCATION SCHOLARSHIP 
25.7 	PROGRAM.
25.8 		Subdivision 1.Establishment. The academic competitiveness highlighting 
25.9 	individual excellence and valuing education (ACHIEVE) scholarship program is 
25.10 	established.
25.11 		Subd. 2.Purpose. The purpose of ACHIEVE scholarships is to reward Minnesota 
25.12 	students for taking rigorous courses in high school.
25.13 		Subd. 3.Program goal. The goal of the program is to encourage more low- and 
25.14 	moderate-income Minnesota students to take rigorous college-level academic courses in 
25.15 	high school and provide them with resources to help pay for postsecondary education. 
25.16 	Students who take these courses are more likely to attend and graduate from postsecondary 
25.17 	institutions.
25.18 		Subd. 4.Definition; qualifying course. For the purposes of this section, a 
25.19 	"qualifying course" means a course that is equivalent to at least one course credit in high 
25.20 	school, as defined in section 120B.024, and that is one of the following:
25.21 	(1) advanced placement courses or international baccalaureate courses under section 
25.22 	120B.13;
25.23 	(2) for students who took an advanced placement or international baccalaureate 
25.24 	examination but not a high school course, the number of courses equivalent to credits 
25.25 	earned by taking advanced placement or international baccalaureate examinations under 
25.26 	section 120B.13, subdivision 3a;
25.27 	(3) postsecondary enrollment options courses and programs under section 124D.09;
25.28 	(4) concurrent enrollment courses under section 124D.09, subdivision 10;
25.29 	(5) college in the schools courses under section 124D.09, subdivision 10;
25.30 	(6) the number of courses equivalent to credits earned via the college-level 
25.31 	examination program under section 120B.131; or
25.32 	(7) the number of courses equivalent to credits earned via work-based learning 
25.33 	programs under section 124D.4531, 124D.46, 124D.47, or 124D.49.
25.34 	The courses count toward the scholarship whether or not the postsecondary 
25.35 	institution grants postsecondary credit for them.
26.1 		Subd. 5.Documentation of qualifying courses. The student shall request a 
26.2 	transcript from the high school. The high school shall provide a transcript to the Office 
26.3 	of Higher Education documenting the qualifying courses the student took. High schools 
26.4 	shall certify on the transcript which courses on the transcript are qualifying courses and 
26.5 	provide a total number of qualifying courses for each student.
26.6 		Subd. 6.Review panel. The director of the office shall appoint a review panel to 
26.7 	monitor the implementation of ACHIEVE scholarships. The review panel may assist the 
26.8 	director in examining appeals of whether high school courses qualify for the scholarships. 
26.9 	The review panel shall include representatives of public and private high schools and 
26.10 	postsecondary institutions. This subdivision expires June 30, 2008.
26.11 		Subd. 7.Student eligibility. To be eligible to receive a scholarship under this 
26.12 	section, in addition to the requirements listed under section 136A.121, a student must:
26.13 	(1) take qualifying courses or earn credits equivalent to courses in grades 9 through 
26.14 	12 in a Minnesota high school, or be home-schooled pursuant to section 120A.22, and 
26.15 	graduate from high school;
26.16 	(2) have a family adjusted gross income in the last complete calendar year prior to 
26.17 	the academic year of postsecondary attendance of less than $100,000;
26.18 	(3) be a United States citizen or eligible noncitizen as defined in section 484 of the 
26.19 	Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and 
26.20 	Code of Federal Regulations, title 34, section 668.33; and
26.21 	(4) be a Minnesota resident as defined in section 136A.101, subdivision 8.
26.22 		Subd. 8.Administration. ACHIEVE scholarships shall be administered by the 
26.23 	Minnesota Office of Higher Education.
26.24 		Subd. 9.Documentation of qualifying family income. The parents of the students 
26.25 	must document a qualifying family income by declaration on the application stating that 
26.26 	they meet the income requirement. The Office of Higher Education or the postsecondary 
26.27 	institution may request copies of federal individual income tax returns as documentation.
26.28 		Subd. 10.Scholarships awards. Minnesota ACHIEVE scholarships shall consist of 
26.29 	$314 per qualifying course taken while the student attended a Minnesota high school. The 
26.30 	scholarships may be used to pay for qualifying expenses at eligible institutions.
26.31 		Subd. 11.Qualifying expenses. Qualifying expenses are components included 
26.32 	under the cost of attendance used for federal student financial aid programs as defined 
26.33 	in section 472 of the Higher Education Act, United States Code, title 20, sections 1091 
26.34 	et seq., as amended.
26.35 		Subd. 12.Eligible institutions. Eligible institutions are MnSCU institutions, 
26.36 	University of Minnesota campuses, Minnesota not-for-profit institutions, and Minnesota 
27.1 	degree-granting for-profit institutions. Private institutions must either be accredited 
27.2 	or registered or licensed with the Office of Higher Education and participating in the 
27.3 	Minnesota state grant program.
27.4 		Subd. 13.Availability of scholarship funds. Each scholarship is available for 
27.5 	up to four academic years immediately following high school graduation. After that 
27.6 	date, the scholarship is no longer available to the student. The office must certify to the 
27.7 	commissioner of finance by October 1 of each year the amounts to be canceled from 
27.8 	scholarship eligibility that has expired.
27.9 		Subd. 14.Disbursement of scholarships. The office shall provide payment to the 
27.10 	postsecondary institution on behalf of the student.
27.11 		Subd. 15.Authority to adopt rules. The Minnesota Office of Higher Education 
27.12 	may adopt rules to administer the program.

27.13 	ARTICLE 4
27.14 	MINNESOTA GI BILL

27.15 	Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 
27.16 	read:
27.17 		Subd. 2.Responsibilities. The Minnesota Office of Higher Education is responsible 
27.18 	for:
27.19 	(1) necessary state level administration of financial aid and Minnesota GI Bill 
27.20 	programs, including accounting, auditing, and disbursing state and federal financial aid 
27.21 	funds, and reporting on financial aid programs to the governor and the legislature;
27.22 	(2) approval, registration, licensing, and financial aid eligibility of private collegiate 
27.23 	and career schools, under sections 136A.61 to 136A.71 and chapter 141;
27.24 	(3) administering the Learning Network of Minnesota;
27.25 	(4) negotiating and administering reciprocity agreements;
27.26 	(5) publishing and distributing financial aid information and materials, and other 
27.27 	information and materials under section 136A.87, to students and parents;
27.28 	(6) collecting and maintaining student enrollment and financial aid data and 
27.29 	reporting data on students and postsecondary institutions to develop and implement a 
27.30 	process to measure and report on the effectiveness of postsecondary institutions;
27.31 	(7) administering the federal programs that affect students and institutions on a 
27.32 	statewide basis; and
27.33 	(8) prescribing policies, procedures, and rules under chapter 14 necessary to 
27.34 	administer the programs under its supervision.

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

28.3 	Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.
28.4 		Subdivision 1.Policy. It is the policy of the state of Minnesota to provide 
28.5 	postsecondary educational assistance to Minnesota veterans who have provided honorable 
28.6 	service to this state and nation as members of the United States armed forces, whether 
28.7 	in peacetime or in war, and to the spouses and children of Minnesota veterans who have 
28.8 	become severely disabled or deceased during or as the direct result of military service.
28.9 		Subd. 2.Definitions.  (a) The definitions in this subdivision apply to this section. 
28.10 	(b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 
28.11 	specified.
28.12 	(c) "Cost of attendance" for both undergraduate and graduate students has the 
28.13 	meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
28.14 	(d) "Child" means a natural or adopted child of a person described in subdivision 5, 
28.15 	paragraph (a), clause (1), item (i) or (ii).
28.16 	(e) "Director" means the director of the Minnesota Office of Higher Education.
28.17 	(f)  "Eligible institution" has the meaning given in section 136A.101, subdivision 4.
28.18 	(g) "Eligible student" means a person who:
28.19 	(1) if the student is an undergraduate student, has applied for the federal Pell Grant 
28.20 	and the Minnesota State Grant;
28.21 	(2) is maintaining satisfactory academic progress as defined by the institution for 
28.22 	students participating in federal Title IV programs;
28.23 	(3) is enrolled in an education program leading to a certificate, diploma, or degree 
28.24 	at an eligible institution;
28.25 	(4) is enrolled at least half time as defined in section 136A.101, subdivision 7b, if an 
28.26 	undergraduate student, or is enrolled for four credits or more if a graduate student; and
28.27 	(5) has applied for educational assistance under the Minnesota GI Bill program prior 
28.28 	to the end of the academic term for which the assistance is being requested.
28.29 	(h) "Program" means the Minnesota GI Bill program established in this section, 
28.30 	unless otherwise specified.
28.31 	(i) "Veteran" has the meaning given in section 197.447, and also includes a service 
28.32 	member who has fulfilled the requirements for being a veteran but is still serving actively 
28.33 	in the United States armed forces.
28.34 		Subd. 3.Program established. There is established a program to provide 
28.35 	postsecondary educational assistance to eligible Minnesota veterans and to the children 
29.1 	and spouses of deceased and severely disabled Minnesota veterans. This program may be 
29.2 	cited as the "Minnesota GI Bill program." 
29.3 	The director, in consultation with the commissioner and in cooperation with 
29.4 	eligible postsecondary educational institutions, shall expend a biennial appropriation 
29.5 	for the purpose of providing postsecondary educational assistance to eligible persons 
29.6 	in accordance with this program. Each public postsecondary educational institution in 
29.7 	the state must participate in the program and each private postsecondary educational 
29.8 	institution in the state is encouraged to participate in the program. Any participating 
29.9 	private institution may suspend or terminate its participation in the program at the end 
29.10 	of any semester or other academic term.
29.11 		Subd. 4.Duties; responsibilities. (a) The director, in consultation with the 
29.12 	commissioner, shall establish policies and procedures including, but not limited to, 
29.13 	procedures for student application record keeping, information sharing, payment to 
29.14 	participating eligible institutions, and other procedures the director considers appropriate 
29.15 	and necessary for effective and efficient administration of the program established in 
29.16 	this section.
29.17 	(b) The director, in consultation with the commissioner, may delegate part or 
29.18 	all of the administrative procedures for the program to responsible representatives of 
29.19 	participating eligible institutions.
29.20 		Subd. 5.Eligibility. (a) A person is eligible for educational assistance under this 
29.21 	section if:
29.22 	(1) the person is:
29.23 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
29.24 	United States armed forces at any time on or after August 2, 1990;
29.25 	(ii) a nonveteran who has served honorably for a total of sixteen years or more 
29.26 	cumulatively as a member of the Minnesota national guard or any other active or reserve 
29.27 	component of the United States armed forces, and any part of that service occurred on 
29.28 	or after August 2, 1990;
29.29 	(iii) the surviving spouse or child of a person described in item (i) or (ii) who has 
29.30 	died as a direct result of that military service; or
29.31 	(iv) the spouse or child of a person described in item (i) or (ii) who has a total 
29.32 	and permanent service-connected disability as rated by the United States veterans 
29.33 	administration;
29.34 	(2) the person described in clause (1), item (i) or (ii) had Minnesota as the person's 
29.35 	state of residence at the time of the person's initial enlistment or any reenlistment in 
29.36 	the United States armed forces;
30.1 	(3) the person receiving the educational assistance is a Minnesota resident, as 
30.2 	defined in section 136A.101, subdivision 8; and
30.3 	(4) the person receiving the educational assistance is an eligible student.
30.4 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
30.5 	under section 135A.52.
30.6 	(c) As proof of honorable service and disability or death status for a veteran or 
30.7 	service member, the director, by policy and in consultation with the commissioner, may 
30.8 	require official documentation, including the person's federal form DD-214 or other official 
30.9 	military discharge papers, correspondence from the United States veterans administration, 
30.10 	birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed 
30.11 	affidavits, proof of residency, proof of identity, or any other official documentation the 
30.12 	director considers necessary to determine an applicant's eligibility status.
30.13 	(d) The director, in consultation with the commissioner, may deny eligibility or 
30.14 	terminate benefits under this section to any person the director considers to have not 
30.15 	provided sufficient proof of eligibility for the program. An applicant may appeal the 
30.16 	director's eligibility determination in writing to the director at any time. The director must 
30.17 	rule on any application or appeal within 30 days of receipt of all documentation that the 
30.18 	director requires. Upon receiving an application with insufficient documentation, the 
30.19 	director must notify the applicant within 30 days of receipt of the application that the 
30.20 	application is being suspended pending receipt by the director of sufficient documentation 
30.21 	from the applicant. The decision of the director regarding an appeal is final. However, an 
30.22 	applicant whose appeal of an eligibility determination has been rejected by the director 
30.23 	may submit an additional appeal of that determination in writing to the director at any 
30.24 	time that the applicant is able to provide substantively significant additional information 
30.25 	relating to the person's eligibility for the program. An approval of an applicant's eligibility 
30.26 	by the director following an appeal by the applicant is not retroactively effective beyond 
30.27 	the later of one year previously or the semester of the person's original application.
30.28 		Subd. 6.Benefit entitlement amount. (a) On approval by the director of an 
30.29 	applicant's eligibility for the program, the applicant is entitled to educational assistance 
30.30 	under the program, for use at any time according to program rules at any eligible 
30.31 	postsecondary educational institution in the state. Eligibility for the program terminates 
30.32 	upon exhaustion of a person's benefits as specified in paragraph (c).
30.33 	(b) The amount of educational assistance in any semester or term for an eligible 
30.34 	person must be determined by subtracting from the eligible person's cost of attendance 
30.35 	at that eligible public institution, or in the case of an eligible private institution the cost 
31.1 	of attendance for a comparable program at the Twin Cities campus of the University of 
31.2 	Minnesota, the amount received in that semester or term by that person from:
31.3 	(1) the federal Pell Grant;
31.4 	(2) the state grant program; and
31.5 	(3) any federal military or veterans educational benefits, including, but not limited 
31.6 	to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
31.7 	vocational rehabilitation benefits, and any other federal benefits associated with the 
31.8 	person's status as a veteran, except veterans disability payments from the United States 
31.9 	veterans administration.
31.10 	(c) The amount of education assistance for any eligible person must not exceed any 
31.11 	of the following amounts:
31.12 	(1) $1,000 per semester or term of enrollment;
31.13 	(2) $3,000 per state fiscal year; and
31.14 	(3) $10,000 total. 

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

31.17 	ARTICLE 5
31.18 	PRIVATE INSTITUTIONS

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

31.22 	Sec. 2. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
31.23 		Subd. 3.School. "School" means:
31.24 	(1) any individual, partnership, company, firm, society, trust, association, 
31.25 	corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 
31.26 	nonprofit postsecondary education institution; (b) (ii) provides a postsecondary 
31.27 	instructional program or course leading to a degree whether or not for profit; (c) or (iii)
31.28 	is, owns, or operates a private, postsecondary education institution which uses the term 
31.29 	"college", "academy", "institute" or "university" in its name; or (d) operates for profit and 
31.30 	provides programs or courses which are intended to allow an individual to fulfill in part 
31.31 	or totally the requirements necessary to maintain a license to practice an occupation. 
31.32 	School shall also mean
32.1 	(2) any public postsecondary educational institution located in another state or 
32.2 	country which offers or makes available to a Minnesota resident any course, program or 
32.3 	educational activity which does not require the leaving of the state for its completion.; or 
32.4 	(3) any individual, entity, or postsecondary institution located in another state 
32.5 	that contracts with any school located within the state of Minnesota for the purpose of 
32.6 	providing educational programs, training programs, or awarding postsecondary credits 
32.7 	or continuing education credits to Minnesota residents that may be applied to a degree 
32.8 	program.

32.9 	Sec. 3. Minnesota Statutes 2006, section 136A.63, is amended to read:
32.10 	136A.63 REGISTRATION.
32.11 	All schools located within Minnesota and all schools located outside Minnesota 
32.12 	which offer degree programs or courses within Minnesota shall register annually with 
32.13 	the office.

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

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

32.25 	Sec. 6. Minnesota Statutes 2006, section 136A.653, is amended to read:
32.26 	136A.653 EXEMPTIONS.
32.27 		Subdivision 1.Exemption. A school that is subject to licensing by the office under 
32.28 	chapter 141, is exempt from the provisions of sections 136A.61 136A.615 to 136A.71. 
32.29 	The determination of the office as to whether a particular school is subject to regulation 
32.30 	under chapter 141 is final for the purposes of this exemption. 
32.31 		Subd. 2.Educational program; nonprofit organizations. Educational programs 
32.32 	which are sponsored by a bona fide and nonprofit trade, labor, business, professional 
33.1 	or fraternal organization, which programs are conducted solely for that organization's 
33.2 	membership or for the members of the particular industries or professions served by that 
33.3 	organization, and which are not available to the public on a fee basis, are exempted from 
33.4 	the provisions of sections 136A.61 136A.615 to 136A.71. 
33.5 		Subd. 3.Educational program; business firms. Educational programs which are 
33.6 	sponsored by a business firm for the training of its employees or the employees of other 
33.7 	business firms with which it has contracted to provide educational services at no cost to the 
33.8 	employees are exempted from the provisions of sections 136A.61 136A.615 to 136A.71. 
33.9 		Subd. 4.Voluntary submission. Any school or program exempted from the 
33.10 	provisions of sections 136A.61 136A.615 to 136A.71 by the provisions of this section 
33.11 	may voluntarily submit to the provisions of those sections. 

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

33.21 	Sec. 8. Minnesota Statutes 2006, section 136A.657, subdivision 2, is amended to read:
33.22 		Subd. 2.Limitation. This exemption shall not extend to any school or to 
33.23 	any department or branch of a school, or program of such school, which through 
33.24 	advertisements or solicitations represents to any students or prospective students that 
33.25 	the school, its aims, goals, missions or purposes or its programs are different from 
33.26 	those described in subdivision 1. This exemption shall not extend to any school which 
33.27 	represents to any student or prospective student that the major purpose of its programs 
33.28 	is to prepare the student for a vocation not closely related to that particular religious 
33.29 	faith, or to provide the student with a general educational program recognized by other 
33.30 	schools or the broader educational, business or social community as being substantially 
33.31 	equivalent to the educational programs offered by schools or departments or branches of 
33.32 	schools which are not exempt from sections 136A.61 136A.615 to 136A.71, and rules 
33.33 	adopted pursuant thereto. 

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

34.5 	Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended by adding a 
34.6 	subdivision to read:
34.7 		Subd. 4.Statement required; religious nature. Any degree awarded upon 
34.8 	completion of a religiously exempt program shall include descriptive language to make 
34.9 	the religious nature of the award clear.

34.10 	Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:
34.11 	136A.66 LIST.
34.12 	The office shall maintain a list of schoolsregistered institutions authorized to grant 
34.13 	degrees and schools authorized to use the name "college," "academy," "institute" or 
34.14 	"university," and shall make such list available to the public.

34.15 	Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:
34.16 	136A.67 UNAUTHORIZED REPRESENTATIONS.
34.17 	No school and none of its officials or employees shall advertise or represent in any 
34.18 	manner that such school is approved or accredited by the office or state of Minnesota 
34.19 	except that any school which is duly registered with the office, or any of its officials or 
34.20 	employees, may represent that the school is registered with the office. using one of the 
34.21 	following statements:
34.22 	"(Name of school) is registered as a private institution with the Minnesota Office of 
34.23 	Higher Education. Registration is not an endorsement of the institution. Credits earned at 
34.24 	the institution may not transfer to all other institutions. The educational programs may not 
34.25 	meet the needs of every student or employer."; or
34.26 	"(Name of School) is registered as a private institution by the Minnesota Office of Higher 
34.27 	Education pursuant to Minnesota Statutes, sections 136A.615 to 136A.71."

34.28 	Sec. 13. Minnesota Statutes 2006, section 136A.68, is amended to read:
34.29 	136A.68 RECORDS.
34.30 	After August 1, 1975, all schools located in this state must maintain permanent 
34.31 	records of all students enrolled therein at any time. The office may require schools to 
35.1 	provide a plan acceptable to the office for preserving all such records for at least ten years. 
35.2 	The office may require that such plan include the filing of a continuous surety bond or a 
35.3 	deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 
35.4 	records after such school ceases to exist. A registered school shall maintain a permanent 
35.5 	record for each student for 50 years from the last date of the student's attendance. A 
35.6 	registered school offering distance instruction to a student located in Minnesota shall 
35.7 	maintain a permanent record for each Minnesota student for 50 years from the last date of 
35.8 	the student's attendance. Records include a student's academic transcript, documents, and 
35.9 	files containing student data about academic credits earned, courses completed, grades 
35.10 	awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 
35.11 	school shall submit a plan that meets the following requirements: 
35.12 	(1) at least one copy of the records must be held in a secure, fireproof depository or 
35.13 	duplicate records must be maintained off site in a secure location and manner approved 
35.14 	by the office; 
35.15 	(2) an appropriate official must be designated to provide a student with copies of 
35.16 	records or a transcript upon request;
35.17 	(3) an alternative method approved by the office, of complying with clauses (1) and 
35.18 	(2) must be established if the school ceases to exist; and
35.19 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
35.20 	$20,000 if the school has no binding agreement approved by the office for preserving 
35.21 	student records. The bond shall run to the state of Minnesota.

35.22 	Sec. 14. Minnesota Statutes 2006, section 136A.69, is amended to read:
35.23 	136A.69 FEES.
35.24 		Subdivision 1.Registration fees. The office shall collect reasonable registration 
35.25 	fees that are sufficient to recover, but do not exceed, its costs of administering the 
35.26 	registration program. The office shall charge $1,100 for initial registration fees and $950 
35.27 	for annual renewal fees.
35.28 		Subd. 2.Degree level addition fee. The office processing fee for adding a degree 
35.29 	level to an existing program is $2,000 per program.
35.30 		Subd. 3.Program addition fee. The office processing fee for adding a program 
35.31 	that represents a significant departure in the objectives, content, or method of delivery of 
35.32 	programs that are currently offered by the school is $500 per program.
35.33 		Subd. 4.Visit or consulting fee. If the office determines that a fact-finding visit 
35.34 	or outside consultant is necessary to review or evaluate any new or revised program, the 
35.35 	office shall be reimbursed for the expenses incurred related to the review as follows:
36.1 	(1) $300 for the team base fee or for a paper review conducted by a consultant if the 
36.2 	office determines that a fact-finding visit is not required;
36.3 	(2) $300 for each day or part thereof on site per team member; and
36.4 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
36.5 	by team members.
36.6 		Subd. 5.Modification fee. The fee for modification of any existing program is 
36.7 	$100 and is due if there is:
36.8 	(1) an increase or decrease of 25 percent or more, from the original date of program 
36.9 	approval, in clock hours, credit hours, or calendar length of an existing program;
36.10 	(2) a change in academic measurement from clock hours to credit hours or vice 
36.11 	versa; or
36.12 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
36.13 	the objectives, content, or methods of delivery.

36.14 	Sec. 15. Minnesota Statutes 2006, section 136A.71, is amended to read:
36.15 	136A.71 INJUNCTION.
36.16 	Upon application of the attorney general the district courts shall have jurisdiction to 
36.17 	enjoin any violations of sections 136A.61 136A.615 to 136A.71. 

36.18 	Sec. 16. [136A.705] PENALTY.
36.19 	Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 
36.20 	to comply with this chapter shall be a separate violation. The office shall adopt rules 
36.21 	establishing a list of civil penalties and the fine associated with each violation. Fines for 
36.22 	violations shall not exceed $500 per day per violation.

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

36.26 	Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
36.27 		Subd. 5.School. "School" means any person, within or outside the state, who 
36.28 	maintains, advertises, solicits, or conducts any program for profit at any level other than 
36.29 	baccalaureate or graduate programs, and is not specifically exempted by sections 141.21
36.30 	to 141.35. School includes any entity within or outside the state, which: maintains, 
36.31 	advertises, solicits for, or conducts any program at any level other than degree granting 
36.32 	and uses the term, "college," "institute," "academy," or "university" in its name.

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

37.5 	Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
37.6 		Subd. 5.Bond. (a) No license shall be issued to any school which maintains, 
37.7 	conducts, solicits for, or advertises within the state of Minnesota any program, unless the 
37.8 	applicant files with the office a continuous corporate surety bond written by a company 
37.9 	authorized to do business in Minnesota conditioned upon the faithful performance of all 
37.10 	contracts and agreements with students made by the applicant.
37.11 	(b) The amount of the surety bond shall be ten percent of the preceding year's gross 
37.12 	income from student tuition, fees, and other required institutional charges, but in no event 
37.13 	less than $10,000 nor greater than $250,000, except that a school may deposit a greater 
37.14 	amount at its own discretion. A school in each annual application for licensure must 
37.15 	compute the amount of the surety bond and verify that the amount of the surety bond 
37.16 	complies with this subdivision, unless the school maintains a surety bond equal to at least 
37.17 	$250,000. A school that operates at two or more locations may combine gross income 
37.18 	from student tuition, fees, and other required institutional charges for all locations for the 
37.19 	purpose of determining the annual surety bond requirement. The gross tuition and fees 
37.20 	used to determine the amount of the surety bond required for a school having a license for 
37.21 	the sole purpose of recruiting students in Minnesota shall be only that paid to the school 
37.22 	by the students recruited from Minnesota.
37.23 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
37.24 	cause of action against the applicant arising at any time after the bond is filed and before it 
37.25 	is canceled for breach of any contract or agreement made by the applicant with any student. 
37.26 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
37.27 	exceed the principal sum deposited by the school under paragraph (b). The surety of any 
37.28 	bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 
37.29 	of liability for any breach of condition occurring after the effective date of cancellation.
37.30 	(d) In lieu of bond, the applicant may deposit with the commissioner of finance a 
37.31 	sum equal to the amount of the required surety bond in cash, or securities as may be 
37.32 	legally purchased by savings banks or for trust funds in an aggregate market value equal 
37.33 	to the amount of the required surety bond.
37.34 	(e) Failure of a school to post and maintain the required surety bond or deposit under 
37.35 	paragraph (d) mayshall result in denial, suspension, or revocation of the school's license.

38.1 	Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
38.2 		Subd. 7.Minimum standards. A license shall be issued if the office first 
38.3 	determines:
38.4 	(1) that the applicant has a sound financial condition with sufficient resources 
38.5 	available to:
38.6 	(i) meet the school's financial obligations;
38.7 	(ii) refund all tuition and other charges, within a reasonable period of time, in the 
38.8 	event of dissolution of the school or in the event of any justifiable claims for refund against 
38.9 	the school by the student body;
38.10 	(iii) provide adequate service to its students and prospective students; and
38.11 	(iv) maintain and support the school;
38.12 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment 
38.13 	and the necessary number of work stations to prepare adequately the students currently 
38.14 	enrolled, and those proposed to be enrolled;
38.15 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
38.16 	provide the educational programs contemplated;
38.17 	(4) that the school has an organizational framework with administrative and 
38.18 	instructional personnel to provide the programs and services it intends to offer;
38.19 	(5) that the premises and conditions under which the students work and study are 
38.20 	sanitary, healthful, and safe, according to modern standards;
38.21 	(6) that the quality and content of each occupational course or program of study 
38.22 	provides education and adequate preparation to enrolled students for entry level positions 
38.23 	in the occupation for which prepared;
38.24 	(7) that the living quarters which are owned, maintained, recommended, or approved 
38.25 	by the applicant for students are sanitary and safe;
38.26 	(8) that the contract or enrollment agreement used by the school complies with 
38.27 	the provisions in section 141.265; 
38.28 	(9) that contracts and agreements do not contain a wage assignment provision or a 
38.29 	confession of judgment clause; and
38.30 	(10) that there has been no adjudication of fraud or misrepresentation in any 
38.31 	criminal, civil, or administrative proceeding in any jurisdiction against the school or its 
38.32 	owner, officers, agents, or sponsoring organization.

38.33 	Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
39.1 		Subd. 9.Catalog, brochure, or electronic display. Before a license is issued to 
39.2 	a school, the school shall furnish to the office a catalog, brochure, or electronic display 
39.3 	including:
39.4 	(1) identifying data, such as volume number and date of publication;
39.5 	(2) name and address of the school and its governing body and officials;
39.6 	(3) a calendar of the school showing legal holidays, beginning and ending dates of 
39.7 	each course quarter, term, or semester, and other important dates;
39.8 	(4) the school policy and regulations on enrollment including dates and specific 
39.9 	entrance requirements for each program;
39.10 	(5) the school policy and regulations about leave, absences, class cuts, make-up 
39.11 	work, tardiness, and interruptions for unsatisfactory attendance;
39.12 	(6) the school policy and regulations about standards of progress for the student 
39.13 	including the grading system of the school, the minimum grades considered satisfactory, 
39.14 	conditions for interruption for unsatisfactory grades or progress, a description of any 
39.15 	probationary period allowed by the school, and conditions of reentrance for those 
39.16 	dismissed for unsatisfactory progress;
39.17 	(7) the school policy and regulations about student conduct and conditions for 
39.18 	dismissal for unsatisfactory conduct;
39.19 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
39.20 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
39.21 	(9) the school policy and regulations, including an explanation of section 141.271, 
39.22 	about refunding tuition, fees, and other charges if the student does not enter the program, 
39.23 	withdraws from the program, or the program is discontinued;
39.24 	(10) a description of the available facilities and equipment;
39.25 	(11) a course outline syllabus for each course offered showing course objectives, 
39.26 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
39.27 	hours, or credits to be spent on each subject or unit;
39.28 	(12) the school policy and regulations about granting credit for previous education 
39.29 	and preparation;
39.30 	(13) a notice to students relating to the transferability of any credits earned at the 
39.31 	school to other institutions; 
39.32 	(14) a procedure for investigating and resolving student complaints; and
39.33 	(14)(15) the name and address of the Minnesota Office of Higher Education.
39.34 	A school that is exclusively a distance education school is exempt from clauses 
39.35 	(3) and (5).

40.1 	Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
40.2 		Subd. 10.Placement records. (a) Before a license is issuedreissued to a school 
40.3 	that offers, advertises or implies a placement service, the school shall file with the office 
40.4 	for the past year and thereafter at reasonable intervals determined by the office, a certified 
40.5 	copy of the school's placement record, containing a list of graduates, a description of their 
40.6 	jobs, names of their employers, and other information as the office may prescribe.
40.7 	(b) Each school that offers a placement service shall furnish to each prospective 
40.8 	student, upon request, prior to enrollment, written information concerning the percentage 
40.9 	of the previous year's graduates who were placed in the occupation for which prepared or 
40.10 	in related employment.

40.11 	Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
40.12 		Subd. 12.Permanent records. A school licensed under this chapter and located 
40.13 	in Minnesota shall maintain a permanent record for each student for 50 years from the 
40.14 	last date of the student's attendance. A school licensed under this chapter and offering 
40.15 	distance instruction to a student located in Minnesota shall maintain a permanent record 
40.16 	for each Minnesota student for 50 years from the last date of the student's attendance. 
40.17 	Records include school transcripts, documents, and files containing student data about 
40.18 	academic credits earned, courses completed, grades awarded, degrees awarded, and 
40.19 	periods of attendance. To preserve permanent records, a school shall submit a plan that 
40.20 	meets the following requirements:
40.21 	(1) at least one copy of the records must be held in a secure, fireproof depository;
40.22 	(2) an appropriate official must be designated to provide a student with copies of 
40.23 	records or a transcript upon request;
40.24 	(3) an alternative method, approved by the office, of complying with clauses (1) and 
40.25 	(2) must be established if the school ceases to exist; and
40.26 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
40.27 	$20,000 if the school has no binding agreement approved by the office, for preserving 
40.28 	student records or a trust must be arranged if the school ceases to exist. The bond shall run 
40.29 	to the state of Minnesota.

40.30 	Sec. 25. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
40.31 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a 
40.32 	renewal licensure application is:
40.33 	(1) for a category A school, as determined by the office, the fee is $865 if the school 
40.34 	offers one program or $1,150 if the school offers two or more programs; and
41.1 	(2) for a category B or C school, as determined by the office, the fee is $430 if the 
41.2 	school offers one program or $575 if the school offers two or more programs.
41.3 	(b) If a license renewal application is not received by the office by the close of 
41.4 	business at least 60 days before the expiration of the current license, a late fee of $100 
41.5 	per business day, not to exceed $3,000, shall be assessed.

41.6 	Sec. 26. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
41.7 		Subd. 2.Contract information. A contract or enrollment agreement used by a 
41.8 	school must include at least the following:
41.9 	(1) the name and address of the school, clearly stated;
41.10 	(2) a clear and conspicuous disclosure that the agreement is a legally binding 
41.11 	instrument upon written acceptance of the student by the school unless canceled under 
41.12 	section 141.271; 
41.13 	(3) the school's cancellation and refund policy that shall be clearly and conspicuously 
41.14 	entitled "Buyer's Right to Cancel";
41.15 	(4) a clear statement of total cost of the program including tuition and all other 
41.16 	charges;
41.17 	(5) the name and description of the program, including the number of hours or 
41.18 	credits of classroom instruction, or distance instruction, that shall be included; and
41.19 	(6) a clear and conspicuous explanation of the form and means of notice the student 
41.20 	should use in the event the student elects to cancel the contract or sale, the effective 
41.21 	date of cancellation, and the name and address of the seller to which the notice should 
41.22 	be sent or delivered.
41.23 	The contract or enrollment agreement must not include a wage assignment provision 
41.24 	or a confession of judgment clause.

41.25 	Sec. 27. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
41.26 		Subd. 10.Cancellation occurrence. Written notice of cancellation shall take place 
41.27 	on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
41.28 	carried, it shall occur on the date the notice is delivered to the school. If a student has not 
41.29 	attended a scheduled class or classes for a period of 21 consecutive days, the student 
41.30 	is considered to have withdrawn from school for all purposes as of the student's last 
41.31 	documented date of attendance.

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

42.6 	Sec. 29. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
42.7 		Subdivision 1.Not to advertise state approval. Schools, agents of schools, and 
42.8 	solicitors may not advertise or represent in writing or orally that such school is approved 
42.9 	or accredited by the state of Minnesota, except that any school, agent, or solicitor may 
42.10 	advertise that the school and solicitor have been duly licensed by the state using one of the 
42.11 	following language statements:
42.12 	"(Name of school) is licensed as a private career school with the Minnesota Office of 
42.13 	Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 
42.14 	institution may not transfer to all other institutions. The educational programs may not 
42.15 	meet the needs of every student or employer."; or
42.16 	"(Name of school) is licensed as a private career school by the Minnesota Office of Higher 
42.17 	Education pursuant to Minnesota Statutes, chapter 141."

42.18 	Sec. 30. Minnesota Statutes 2006, section 141.35, is amended to read:
42.19 	141.35 EXEMPTIONS.
42.20 	Sections 141.21 to 141.35141.34 shall not apply to the following:
42.21 	(1) public postsecondary institutions;
42.22 	(2) private postsecondary institutions registered under sections 136A.61 136A.615
42.23 	to 136A.71 that are nonprofit, or that are for profit and registered under sections 136A.61
42.24 	136A.615 to 136A.71 as of December 31, 1998, or are approved to offer exclusively 
42.25 	baccalaureate or postbaccalaureate programs;
42.26 	(3) schools of nursing accredited by the state Board of Nursing or an equivalent 
42.27 	public board of another state or foreign country;
42.28 	(4) private schools complying with the requirements of section 120A.22, subdivision 
42.29 	4;
42.30 	(5) courses taught to students in a valid apprenticeship program taught by or 
42.31 	required by a trade union;
42.32 	(6) schools exclusively engaged in training physically or mentally disabled persons 
42.33 	for the state of Minnesota;
43.1 	(7) schools licensed by boards authorized under Minnesota law to issue licenses;
43.2 	(8) schools and educational programs, or training programs, contracted for by 
43.3 	persons, firms, corporations, government agencies, or associations, for the training of their 
43.4 	own employees, for which no fee is charged the employee;
43.5 	(9) schools engaged exclusively in the teaching of purely avocational, recreational, 
43.6 	or remedial subjects as determined by the office;
43.7 	(10) driver training schools and instructors as defined in section 171.33, subdivisions 
43.8 	1 and 2;
43.9 	(11) (10) classes, courses, or programs conducted by a bona fide trade, professional, 
43.10 	or fraternal organization, solely for that organization's membership;
43.11 	(12)(11) programs in the fine arts provided by organizations exempt from taxation 
43.12 	under section 290.05 and registered with the attorney general under chapter 309. For 
43.13 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
43.14 	artistic performance of works of the imagination which are engaged in for the primary 
43.15 	purpose of creative expression rather than commercial sale or employment. In making 
43.16 	this determination the office may seek the advice and recommendation of the Minnesota 
43.17 	Board of the Arts;
43.18 	(13)(12) classes, courses, or programs intended to fulfill the continuing education 
43.19 	requirements for licensure or certification in a profession, that have been approved by 
43.20 	a legislatively or judicially established board or agency responsible for regulating the 
43.21 	practice of the profession, and that are offered exclusively to an individual practicing 
43.22 	the profession;
43.23 	(14)(13) classes, courses, or programs intended to prepare students to sit for 
43.24 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
43.25 	entrance examinations;
43.26 	(15)(14) classes, courses, or programs providing 16 or fewer clock hours of 
43.27 	instruction that are not part of the curriculum for an occupation or entry level employment;
43.28 	(16)(15) classes, courses, or programs providing instruction in personal 
43.29 	development, modeling, or acting;
43.30 	(17)(16) training or instructional programs, in which one instructor teaches an 
43.31 	individual student, that are not part of the curriculum for an occupation or are not intended 
43.32 	to prepare a person for entry level employment; and
43.33 	(18)(17) schools with no physical presence in Minnesota, as determined by the 
43.34 	office, engaged exclusively in offering distance instruction that are located in and 
43.35 	regulated by other states or jurisdictions.

44.1 	Sec. 31. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
44.2 		Subdivision 1.Exemption. Any school or any department or branch of a school (1) 
44.3 	which is substantially owned, operated, or supported by a bona fide church or religious 
44.4 	organization; (2) whose programs are primarily designed for, aimed at, and attended by 
44.5 	persons who sincerely hold or seek to learn the particular religious faith or beliefs of 
44.6 	that church or religious organization; and (3) whose programs are primarily intended to 
44.7 	prepare its students to become ministers of, to enter into some other vocation closely 
44.8 	related to, or to conduct their lives in consonance with, the particular faith of that church 
44.9 	or religious organization, is exempt from the provisions of sections 141.21 to 141.34.
44.10 		Subd. 2.Limitations. This exemption shall not extend to any school or to any 
44.11 	department or branch of a school, or program of such school which through advertisements 
44.12 	or solicitations represents to any students or prospective students that the school, its 
44.13 	aims, goals, missions or purposes, or its programs are different from those described in 
44.14 	subdivision 1. This exemption shall not extend to any school which represents to any 
44.15 	student or prospective student that the major purpose of its programs is to prepare the 
44.16 	student for a vocation not closely related to that particular religious faith, or to provide the 
44.17 	student with a general educational program recognized by other schools or the broader 
44.18 	educational, business, or social community as being substantially equivalent to the 
44.19 	educational programs offered by schools or departments or branches of schools which are 
44.20 	not religious in nature and are not exempt from chapter 141 and rules adopted pursuant 
44.21 	under this chapter.
44.22 		Subd. 3.Scope. Nothing in this chapter or the rules adopted under it shall be 
44.23 	interpreted as permitting the office to determine the truth or falsity of any particular set 
44.24 	of religious beliefs.
44.25 		Subd. 4.Descriptive language required. Any certificate, diploma, degree, or other 
44.26 	formal recognition awarded upon completion of any religiously exempt program shall 
44.27 	include such descriptive language as to make the religious nature of the award clear.

44.28 	Sec. 32. REPEALER.
 44.29 	Minnesota Statutes 2006, section 136A.61, is repealed.

44.30 	ARTICLE 6
44.31 	HIGHER EDUCATION CRIMINAL PROVISIONS

44.32 	Section 1. [136A.675] FALSE OR FRAUDULENT ACADEMIC DOCUMENT 
44.33 	OR CREDENTIAL; PENALTIES.
45.1 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in this 
45.2 	subdivision have the meanings given them.
45.3 	(b) "False academic credential" means a document such as a degree, diploma, 
45.4 	certificate, list of coursework, or degree credit, including a transcript, that provides 
45.5 	evidence or demonstrates completion of a course of instruction or coursework that results 
45.6 	in attaining a degree at a level of associate or higher which is issued by a person or 
45.7 	institution that is not approved or authorized to issue the degree by the Office of Higher 
45.8 	Education.
45.9 	(c) "Fraudulent or counterfeit academic credential" means a document such as a 
45.10 	degree, diploma, certificate, list of coursework, or degree credit, including a transcript, that 
45.11 	provides evidence or demonstrates completion of a course of instruction or coursework 
45.12 	that results in attaining a degree at a level of associate or higher which has been altered or 
45.13 	modified after its issuance by a duly approved or authorized institution of higher learning.
45.14 	(d) "Duly approved or authorized institution of higher learning" means an institution 
45.15 	that:
45.16 	(1) is approved to operate under sections 136A.61 to 136A.71 or chapter 141;
45.17 	(2) has authorization to operate in this state issued by another Minnesota state 
45.18 	agency that has authority to authorize the operation of a postsecondary institution;
45.19 	(3) is a Minnesota public postsecondary institution;
45.20 	(4) operates in this state and is exempt from this chapter;
45.21 	(5) does not operate in this state and is licensed or otherwise authorized by the 
45.22 	appropriate state agency in its state of domicile if the state's degree-granting criteria are 
45.23 	equivalent to this state's or has been determined by the office to meet academic standards 
45.24 	comparable to those of an institution located in this state that has accreditation recognized 
45.25 	by the United States Department of Education; or
45.26 	(6) does not operate within the United States but has been determined by the office 
45.27 	to meet academic standards comparable to those of an institution located in this state that 
45.28 	has accreditation recognized by the United States Department of Education.
45.29 		Subd. 2.False, fraudulent, counterfeit academic documents. It is unlawful for 
45.30 	any person to knowingly issue or manufacture a false, fraudulent, or counterfeit academic 
45.31 	document, including degrees or student academic transcripts.
45.32 		Subd. 3.Use or claim; false or counterfeit degree. It is unlawful for a person to 
45.33 	knowingly use or claim to have a degree which is false or counterfeit:
45.34 	(1) to obtain employment;
45.35 	(2) to obtain a promotion or higher compensation in employment;
45.36 	(3) to obtain admission to an institution of higher learning; or
46.1 	(4) in connection with any business, trade, profession, or occupation.
46.2 		Subd. 4.Penalties. A person who commits an act described in subdivision 2 or 3 is 
46.3 	guilty of a misdemeanor.

46.4 	Sec. 2. EFFECTIVE DATE.
 46.5 	Section 1 is effective August 1, 2007, and applies to crimes committed on or after 
46.6 	that date.