1.2relating to higher education; modernizing, streamlining, and clarifying various
1.3statutes; eliminating unnecessary or redundant laws and rules; deleting
1.4obsolete language and unnecessary verbiage;amending Minnesota Statutes
1.52012, sections 135A.051, subdivision 3; 135A.14, subdivision 6a; 136A.002;
1.6136A.01, as amended; 136A.05, subdivision 1; 136A.06; 136A.08, subdivisions
1.72, 7; 136A.101, subdivisions 7, 7a, 7b, by adding a subdivision; 136A.121,
1.8subdivisions 2, 9; 136A.125, subdivision 1; 136A.126, subdivisions 2, 4;
1.9136A.1311; 136A.15, subdivision 8; 136A.16, subdivisions 1, 5; 136A.162;
1.10136A.1701, subdivision 1; 136A.171; 136A.232; 136A.233, subdivisions 1,
1.114; 136A.65, subdivision 6; 136A.685; 136A.861, subdivision 6; 136F.01;
1.12136F.02, subdivision 1; 136F.03, subdivision 1; 136F.04, subdivision 2;
1.13136F.045; 136F.05; 136F.10; 136F.12; 136F.14; 136F.18; 136F.23; 136F.28,
1.14subdivision 1; 136F.48; 136F.482; 136F.581, subdivision 1; 136F.60, subdivision
1.151; 136F.65; 136F.705; 136F.90, subdivision 1; 136F.92; 136F.93; 136F.94;
1.16136F.95; 136F.96; 136F.97; 136F.98, subdivisions 1, 3; 136G.09, subdivision
1.178; 137.52; Minnesota Statutes 2013 Supplement, sections 136A.03; 136A.125,
1.18subdivision 2; 136A.126, subdivision 1; 136A.129, subdivision 2; 136A.1795,
1.19subdivisions 2, 3, 4, 5; 136A.1796, subdivisions 2, 3, 4; 136A.233, subdivision
1.202; 136A.861, subdivisions 1, 3; repealing Minnesota Statutes 2012, sections
1.21135A.14, subdivision 6; 136A.05, subdivision 2; 136A.101, subdivision 2;
1.22136A.15, subdivisions 3, 5; 136A.16, subdivisions 3, 4, 6, 7; 136A.17; 136A.62,
1.23subdivision 2; 136F.11; 136F.44, subdivision 2; 136F.49; 136F.90, subdivision 6;
1.24137.02, subdivision 1; 137.59; Minnesota Statutes 2013 Supplement, sections
1.25136A.101, subdivision 3; 136A.15, subdivision 4; 136A.16, subdivision
1.2610; Minnesota Rules, parts 4810.2100; 4810.2200; 4810.2300; 4810.2400;
1.274810.2500; 4810.2600; 4810.2700; 4810.2800; 4830.5000; 4830.5100;
1.284830.5200, subparts 1, 3; 4830.5300; 4830.5400.
1.29BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.30    Section 1. Minnesota Statutes 2012, section 135A.051, subdivision 3, is amended to
1.31read:
2.1    Subd. 3. Applicability. The provisions of this section apply to a student enrolled
2.2in a technical college, community college, state university, and the University of public
2.3postsecondary institution in Minnesota.

2.4    Sec. 2. Minnesota Statutes 2012, section 135A.14, subdivision 6a, is amended to read:
2.5    Subd. 6a. Hepatitis and meningitis information. Each public and private
2.6postsecondary institution shall provide information on the transmission, treatment, and
2.7prevention of hepatitis A, B, and C, and the risks of meningococcal disease and on the
2.8availability and effectiveness of any vaccine to each individual who is a first-time enrollee
2.9and who resides in on-campus student housing all persons who are first-time enrollees.
2.10The institution may provide the information in an electronic format. The institution must
2.11consult with the Department of Health on the preparation of the informational materials
2.12provided under this subdivision.

2.13    Sec. 3. Minnesota Statutes 2012, section 136A.002, is amended to read:
2.14136A.002 DEFINITIONS.
2.15    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section
2.16have the meanings given them.
2.17    Subd. 2. Office of Higher Education or office. "Office of Higher Education" or
2.18 "Office" means the Minnesota Office of Higher Education.
2.19    Subd. 3. Commissioner. "Commissioner" means the commissioner of the Office of
2.20Higher Education.
2.21    Subd. 4. Province and provincial. "Province" and "provincial" mean the Canadian
2.22province of Manitoba.
2.23    Subd. 5. Term. "Term" means a quarter or semester, or the equivalent.

2.24    Sec. 4. Minnesota Statutes 2012, section 136A.01, as amended by Laws 2013, chapter
2.2599, article 2, section 29, is amended to read:
2.26136A.01 MINNESOTA OFFICE OF HIGHER EDUCATION.
2.27    Subdivision 1. Creation. An office for higher education in the state of Minnesota, to
2.28be known as The Minnesota Office of Higher Education, is created with a commissioner
2.29appointed by the governor with the advice and consent of the senate and serving at the
2.30pleasure of the governor.
2.31    Subd. 2. Responsibilities. (a) The Minnesota office of Higher Education is
2.32responsible for:
3.1(1) necessary state level administration of financial aid programs, including
3.2accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
3.3financial aid programs to the governor and the legislature;
3.4(2) approval, registration, licensing, and financial aid eligibility of private collegiate
3.5and career schools, under sections 136A.61 to 136A.71 and chapter 141;
3.6(3) negotiating and administering reciprocity agreements;
3.7(4) publishing and distributing financial aid information and materials, and other
3.8information and materials under section 136A.87, to students and parents;
3.9(5) collecting and maintaining student enrollment and financial aid data and
3.10reporting data on students and postsecondary institutions to develop and implement a
3.11process to measure and report on the effectiveness of postsecondary institutions;
3.12(6) administering the federal programs that affect students and institutions on a
3.13statewide basis; and
3.14(7) prescribing policies, procedures, and rules under chapter 14 necessary to
3.15administer the programs under its supervision.
3.16(b) The office may match individual student data from the student record enrollment
3.17database with individual student financial aid data collected and maintained by the office
3.18in order to audit or evaluate federal or state supported education programs as permitted by
3.19United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title
3.2034, section 99.35. The office shall not release data that personally identifies parents or
3.21students other than to employees and contractors of the office.

3.22    Sec. 5. Minnesota Statutes 2013 Supplement, section 136A.03, is amended to read:
3.23136A.03 EXECUTIVE OFFICERS; EMPLOYEES.
3.24The Minnesota office of Higher Education shall be under the administrative control
3.25of the commissioner. The commissioner shall serve in the unclassified service of the state
3.26civil service. The commissioner, or the commissioner's designated representative, on
3.27behalf of the office is authorized to sign contracts and execute all instruments necessary
3.28or appropriate to carry out the purposes of sections 136A.01 to 136A.178 for the office.
3.29The salary of the commissioner shall be established according to section 15A.0815. The
3.30commissioner may appoint other professional employees who shall serve in the unclassified
3.31service of the state civil service. All other employees shall be in the classified civil service.
3.32An employee appointed by the commissioner to serve in the unclassified service as
3.33provided in this section, is must be a person who has studied higher education or a related
3.34field at the graduate level or has similar experience and who is qualified for a career in
3.35financial aid and other aspects of higher education and for activities in keeping with
4.1the planning and administrative responsibilities of the office and who is appointed to
4.2assume responsibility for administration of educational programs or research in matters
4.3of higher education.

4.4    Sec. 6. Minnesota Statutes 2012, section 136A.05, subdivision 1, is amended to read:
4.5    Subdivision 1. Cooperation. All public institutions of higher education and all
4.6state departments and agencies shall cooperate with and supply information requested by
4.7the Minnesota office of Higher Education in order to enable it to carry out and perform
4.8its duties. Private postsecondary institutions are requested to cooperate and provide
4.9information.

4.10    Sec. 7. Minnesota Statutes 2012, section 136A.06, is amended to read:
4.11136A.06 FEDERAL FUNDS.
4.12The Minnesota office of Higher Education is designated the state agency to apply
4.13for, receive, accept, and disburse to both public and private institutions of higher education
4.14all federal funds which that are allocated to the state of Minnesota to support higher
4.15education programs, construction, or other activities and which that require administration
4.16by a state higher education agency under the Higher Education Facilities Act of 1963, and
4.17any amendments thereof, the Higher Education Act of 1965, and any amendments thereof,
4.18and any other law which enacted by the Congress of the United States that provides funds
4.19for higher education and requires administration by a state higher education agency
4.20as enacted or may be enacted by the Congress of the United States; provided that no
4.21commitment shall be made that shall bind binds the legislature to make appropriations
4.22beyond current allocations of funds. The office may apply for, receive, accept, and
4.23disburse all administrative funds available to the office for administering federal funds to
4.24support higher education programs, construction, or other activities. The office also may
4.25apply for, receive, accept, and disburse any research, planning, or program funds which
4.26 that are available for purposes consistent with the provisions of this chapter. In making
4.27application for and administering federal funds the office may comply with any and all
4.28requirements of federal law and federal rules and regulations to enable it to receive and
4.29accept such the funds. The expenditure of any such the funds received shall be governed
4.30by the laws of the state, except insofar as federal regulations may otherwise provide. The
4.31office may contract with both public and private institutions in administering federal
4.32funds, and such the contracts shall are not be subject to the provisions of chapter 16C.
4.33All such The federal money received by the office shall be deposited in the state treasury
4.34and, subject to section 3.3005, are hereby is appropriated to it annually for the purpose
5.1for which such funds are the money was received. None of such moneys shall The
5.2appropriation does not cancel but shall be and is available until expended.

5.3    Sec. 8. Minnesota Statutes 2012, section 136A.08, subdivision 2, is amended to read:
5.4    Subd. 2. Authorization. The Minnesota office of Higher Education, in consultation
5.5with the commissioner of management and budget and each affected public postsecondary
5.6board, may enter into agreements, on subjects that include remission of nonresident
5.7tuition for designated categories of students at public postsecondary institutions, with
5.8appropriate state or provincial agencies and public postsecondary institutions in other
5.9states or provinces. The agreements shall be for the purpose of the mutual improvement
5.10of educational advantages for residents of this state and other states or provinces with
5.11whom agreements are made.

5.12    Sec. 9. Minnesota Statutes 2012, section 136A.08, subdivision 7, is amended to read:
5.13    Subd. 7. Reporting. The Minnesota office of Higher Education must annually,
5.14before the last day in January, submit a report to the committees in the house of
5.15representatives and the senate with responsibility for higher education finance on:
5.16    (1) participation in the tuition reciprocity program by Minnesota students and
5.17students from other states attending Minnesota postsecondary institutions under a
5.18reciprocity agreement;
5.19    (2) reciprocity and resident tuition rates at each institution;
5.20    (3) interstate payments and obligations for each state participating in the tuition
5.21reciprocity program in the prior year; and
5.22    (4) summary statistics on number of graduates by institution, degree granted, and year
5.23of graduation for reciprocity students who attended Minnesota postsecondary institutions.

5.24    Sec. 10. Minnesota Statutes 2012, section 136A.101, subdivision 7, is amended to read:
5.25    Subd. 7. Student. "Student" means a person who is enrolled for at least three credits
5.26per quarter or semester, or the equivalent term, in a program or course of study that applies
5.27to a degree, diploma, or certificate. Credit equivalencies assigned by an institution that are
5.28applicable to federal Pell grant calculations shall be counted as part of a student's credit load.

5.29    Sec. 11. Minnesota Statutes 2012, section 136A.101, subdivision 7a, is amended to read:
5.30    Subd. 7a. Full time. "Full time" means enrollment in a minimum of 15 credits per
5.31quarter or semester, or the equivalent term.

6.1    Sec. 12. Minnesota Statutes 2012, section 136A.101, subdivision 7b, is amended to
6.2read:
6.3    Subd. 7b. Half time. "Half time" means enrollment in a minimum of six credits per
6.4quarter or semester, or the equivalent term.

6.5    Sec. 13. Minnesota Statutes 2012, section 136A.101, is amended by adding a
6.6subdivision to read:
6.7    Subd. 11. Award year. "Award year" has the meaning given in the Higher
6.8Education Act of 1965, title 4, section 481.20, as amended.

6.9    Sec. 14. Minnesota Statutes 2012, section 136A.121, subdivision 2, is amended to read:
6.10    Subd. 2. Eligibility for grants. (a) An applicant is eligible to be considered for
6.11a grant, regardless of the applicant's sex, creed, race, color, national origin, or ancestry,
6.12under sections 136A.095 to 136A.131 if the office finds that the applicant:
6.13(1) is a resident of the state of Minnesota;
6.14(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
6.15and has met all requirements for admission as a student to an eligible college or technical
6.16college of choice as defined in sections 136A.095 to 136A.131;
6.17(3) has met the financial need criteria established in Minnesota Rules;
6.18(4) is not in default, as defined by the office, of any federal or state student
6.19educational loan; and
6.20(5) is not more than 30 days in arrears in court-ordered child support that is collected
6.21or enforced by the public authority responsible for child support enforcement or, if the
6.22applicant is more than 30 days in arrears in court-ordered child support that is collected
6.23or enforced by the public authority responsible for child support enforcement, but is
6.24complying with a written payment agreement under section 518A.69 or order for arrearages.
6.25(b) A student who withdraws from enrollment for active military service after
6.26December 31, 2002, because the student was ordered to active military service as defined
6.27in section 190.05, subdivision 5b or 5c, or who withdraws from enrollment for a major
6.28illness, while under the care of a medical professional, that substantially limits the
6.29student's ability to complete the term is entitled to an additional semester or the equivalent
6.30of grant eligibility.

6.31    Sec. 15. Minnesota Statutes 2012, section 136A.121, subdivision 9, is amended to read:
6.32    Subd. 9. Awards. An undergraduate student who meets the office's requirements
6.33is eligible to apply for and receive a grant in any year of undergraduate study unless the
7.1student has obtained a baccalaureate degree or previously has been enrolled full time
7.2or the equivalent for eight semesters or the equivalent, excluding courses taken from a
7.3Minnesota school or postsecondary institution which is not participating in the state grant
7.4program and from which a student transferred no credit. A student who withdraws from
7.5enrollment for active military service, or for a major illness, while under the care of a
7.6medical professional, that substantially limits the student's ability to complete the term is
7.7entitled to an additional semester or the equivalent of grant eligibility. A student enrolled
7.8in a two-year program at a four-year institution is only eligible for the tuition and fee
7.9maximums established by law for two-year institutions.

7.10    Sec. 16. Minnesota Statutes 2012, section 136A.125, subdivision 1, is amended to read:
7.11    Subdivision 1. Establishment. A child care grant program is established under the
7.12supervision of the Minnesota office of Higher Education. The program makes money
7.13available to eligible students to reduce the costs of child care while attending an eligible
7.14postsecondary institution. The office shall develop policies and adopt rules as necessary to
7.15implement and administer the program.

7.16    Sec. 17. Minnesota Statutes 2013 Supplement, section 136A.125, subdivision 2,
7.17is amended to read:
7.18    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
7.19the applicant:
7.20    (1) is a resident of the state of Minnesota;
7.21    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
7.22disabled as defined in section 125A.02, and who is receiving or will receive care on a
7.23regular basis from a licensed or legal, nonlicensed caregiver;
7.24    (3) is income eligible as determined by the office's policies and rules, but is not a
7.25recipient of assistance from the Minnesota family investment program;
7.26    (4) has not earned a baccalaureate degree and has been enrolled full time less than
7.27eight semesters or the equivalent;
7.28    (5) is pursuing a nonsectarian program or course of study that applies to an
7.29undergraduate degree, diploma, or certificate;
7.30    (6) is enrolled at least half time in an eligible institution; and
7.31    (7) is in good academic standing and making satisfactory academic progress.
7.32    (b) A student who withdraws from enrollment for active military service after
7.33December 31, 2002, because the student was ordered to active military service as defined
7.34in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a
8.1medical professional, that substantially limits the student's ability to complete the term
8.2is entitled to an additional semester or the equivalent of grant eligibility and will be
8.3considered to be in continuing enrollment status upon return.

8.4    Sec. 18. Minnesota Statutes 2013 Supplement, section 136A.126, subdivision 1,
8.5is amended to read:
8.6    Subdivision 1. Student eligibility. The commissioner of the Office of Higher
8.7Education shall establish procedures for the distribution of scholarships to a Minnesota
8.8resident student as defined under section 136A.101, subdivision 8, who:
8.9    (1) is of one-fourth or more Indian ancestry;
8.10    (2) has applied for other existing state and federal scholarship and grant programs;
8.11    (3) is meeting satisfactory academic progress as defined under section 136A.101,
8.12subdivision 10;
8.13(4) is not in default, as defined by the office, of a federal or state student educational
8.14loan;
8.15(5) if enrolled in an undergraduate program, is eligible or would be eligible to
8.16receive a federal Pell Grant or a state grant based on the federal needs analysis and is
8.17enrolled for nine semester credits per term or more, or the equivalent; and
8.18    (6) if enrolled in a graduate program, demonstrates a remaining financial need in
8.19the award amount calculation and is enrolled, per term, on a half-time basis or more as
8.20defined by the postsecondary institution; and.
8.21    (7) in the opinion of the commissioner of the Office of Higher Education, based
8.22upon postsecondary institution recommendations, has the capabilities to benefit from
8.23further education.

8.24    Sec. 19. Minnesota Statutes 2012, section 136A.126, subdivision 2, is amended to read:
8.25    Subd. 2. Eligible programs. Scholarships must be for accredited degree programs
8.26in accredited Minnesota colleges or universities or for courses in accredited Minnesota
8.27business, technical, or vocational schools enrollment at an eligible institution that is
8.28accredited. Scholarships may also be given to students attending Minnesota colleges
8.29 eligible institutions that are in candidacy status for obtaining full accreditation, and are
8.30eligible for and receiving federal financial aid programs. Students are also eligible for
8.31scholarships when enrolled as students in Minnesota higher education eligible institutions
8.32that have joint programs with other accredited higher education institutions.

8.33    Sec. 20. Minnesota Statutes 2012, section 136A.126, subdivision 4, is amended to read:
9.1    Subd. 4. Award amount. (a) Each student shall be awarded a scholarship based
9.2on the federal need analysis. Applicants are encouraged to apply for all other sources of
9.3financial aid. The amount of the award must not exceed the applicant's cost of attendance,
9.4as defined in subdivision 3, after deducting:
9.5    (1) the expected family contribution as calculated by the federal need analysis;
9.6    (2) the amount of a federal Pell Grant award for which the applicant is eligible;
9.7    (3) the amount of the state grant;
9.8    (4) the sum of all federal Supplemental Educational Opportunity Grant, federal
9.9Academic Competitiveness Grant, and federal Science and Mathematics Access to Retain
9.10Talent Grant (SMART Grant) awards;
9.11    (5) the sum of all institutional grants, scholarships, tuition waivers, and tuition
9.12remission amounts;
9.13    (6) the sum of all tribal scholarships;
9.14    (7) the amount of any other state and federal gift aid; and
9.15    (8) the amount of any private grants or scholarships.
9.16    (b) The award shall be paid directly to the postsecondary institution where the
9.17student receives federal financial aid.
9.18    (c) Awards are limited as follows:
9.19    (1) the maximum award for an undergraduate is $4,000 per academic award year;
9.20    (2) the maximum award for a graduate student is $6,000 per academic award year; and
9.21    (3) the minimum award for all students is $100 per academic award year.
9.22    (d) Scholarships may not be given to any Indian student for more than three years of
9.23study for a two-year degree, certificate, or diploma program or five years of study for a
9.24four-year degree program at the undergraduate level and for more than five years at the
9.25graduate level. Students may acquire only one degree per level and one terminal graduate
9.26degree. Scholarships may not be given to any student for more than ten years including
9.27five years of undergraduate study and five years of graduate study.

9.28    Sec. 21. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 2,
9.29is amended to read:
9.30    Subd. 2. Program established. The office of Higher Education shall administer
9.31a greater Minnesota internship program through eligible institutions to provide credit at
9.32the eligible institution for internships and tax credits for eligible employers who hire
9.33interns for employment in greater Minnesota.

10.1    Sec. 22. Minnesota Statutes 2012, section 136A.1311, is amended to read:
10.2136A.1311 CASH FLOW.
10.3The Minnesota office of Higher Education may ask the commissioner of management
10.4and budget to lend general fund money to the grant account to ease cash flow difficulties.
10.5The Minnesota office of Higher Education must first certify to the commissioner that there
10.6will be adequate refunds to the account to repay the loan. The commissioner shall use the
10.7refunds to make repayment to the general fund of the full amount loaned. Money necessary
10.8to meet cash flow difficulties in the state grant program is appropriated to the commissioner
10.9of management and budget for loans to the Minnesota office of Higher Education.

10.10    Sec. 23. Minnesota Statutes 2012, section 136A.15, subdivision 8, is amended to read:
10.11    Subd. 8. Eligible student. "Eligible student" means a student who is officially
10.12registered or accepted for enrollment at an eligible institution in Minnesota or a Minnesota
10.13resident who is officially registered as a student or accepted for enrollment at an eligible
10.14institution in another state or province. Eligible student, except for purposes of section
10.15136A.1701, includes parents of an eligible student as the term "parent" is defined in the
10.16Higher Education Act of 1965, as amended, and applicable regulations. Except for
10.17the purposes of section 136A.1701, eligible student also includes students eligible for
10.18auxiliary loans as the term "auxiliary" is defined in the Higher Education Act of 1965, as
10.19amended, and applicable regulations. An eligible student, for section 136A.1701, means a
10.20student who gives informed consent authorizing the disclosure of data specified in section
10.21136A.162, paragraph (b) (c) , to a consumer credit reporting agency.

10.22    Sec. 24. Minnesota Statutes 2012, section 136A.16, subdivision 1, is amended to read:
10.23    Subdivision 1. Designation. Notwithstanding chapter 16C, the Minnesota office
10.24of Higher Education is designated as the administrative agency for carrying out the
10.25purposes and terms of sections 136A.15 to 136A.1702. The office may establish one
10.26or more loan programs.

10.27    Sec. 25. Minnesota Statutes 2012, section 136A.16, subdivision 5, is amended to read:
10.28    Subd. 5. Agencies. The office may contract with guarantee agencies, insurance
10.29agencies loan servicers, collection agencies, credit bureaus, or any other person, to carry
10.30out the purposes of sections 136A.15 to 136A.1702.

10.31    Sec. 26. Minnesota Statutes 2012, section 136A.162, is amended to read:
10.32136A.162 CLASSIFICATION OF DATA.
11.1(a) Except as provided in paragraphs (b) and (c), data on applicants for financial
11.2assistance collected and used by the Minnesota office of Higher Education for student
11.3financial aid programs administered by that office are private data on individuals as
11.4defined in section 13.02, subdivision 12.
11.5(b) Data on applicants may be disclosed to the commissioner of human services to the
11.6extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5).
11.7(c) The following data collected in the Minnesota supplemental loan program under
11.8section 136A.1701 may be disclosed to a consumer credit reporting agency only if the
11.9borrower and the cosigner give informed consent, according to section 13.05, subdivision
11.104 , at the time of application for a loan:
11.11(1) the lender-assigned borrower identification number;
11.12(2) the name and address of borrower;
11.13(3) the name and address of cosigner;
11.14(4) the date the account is opened;
11.15(5) the outstanding account balance;
11.16(6) the dollar amount past due;
11.17(7) the number of payments past due;
11.18(8) the number of late payments in previous 12 months;
11.19(9) the type of account;
11.20(10) the responsibility for the account; and
11.21(11) the status or remarks code.

11.22    Sec. 27. Minnesota Statutes 2012, section 136A.1701, subdivision 1, is amended to
11.23read:
11.24    Subdivision 1. Establishment of program. The Minnesota office of Higher
11.25Education may provide for programs of loans which may be made in lieu of or in addition
11.26to loans authorized under sections 136A.15 to 136A.1702 and applicable provisions of
11.27federal law as provided in this section.

11.28    Sec. 28. Minnesota Statutes 2012, section 136A.171, is amended to read:
11.29136A.171 REVENUE BONDS; ISSUANCE; PROCEEDS.
11.30The Minnesota office of Higher Education may issue revenue bonds to obtain funds
11.31for loans made in accordance with the provisions of this chapter. The aggregate amount of
11.32revenue bonds, issued directly by the office, outstanding at any one time, not including
11.33refunded bonds or otherwise defeased or discharged bonds, shall not exceed $850,000,000.
11.34Proceeds from the issuance of bonds may be held and invested by the office pending
12.1disbursement in the form of loans. All interest and profits from the investments shall inure
12.2to the benefit of the office and shall be available to the office for the same purposes as the
12.3proceeds from the sale of revenue bonds including, but not limited to, costs incurred in
12.4administering loans under this chapter and loan reserve funds.

12.5    Sec. 29. Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 2,
12.6is amended to read:
12.7    Subd. 2. Establishment; administration. (a) The commissioner of the Minnesota
12.8Office of Higher Education shall establish and administer a loan forgiveness program for
12.9large animal veterinarians who:
12.10(1) agree to practice in designated rural areas that are considered underserved; and
12.11(2) work full time in a practice that is at least 50 percent involved with the care of
12.12food animals.
12.13(b) Appropriations made to the program do not cancel and are available until
12.14expended.

12.15    Sec. 30. Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 3,
12.16is amended to read:
12.17    Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program,
12.18an individual must:
12.19(1) be a veterinarian who has been awarded a veterinary medicine degree within
12.20three years of submitting an application under this section, or be enrolled in the
12.21veterinarian degree program and making satisfactory progress in the College of Veterinary
12.22Medicine, University of Minnesota; and
12.23(2) submit an application to the commissioner of the Minnesota Office of Higher
12.24Education in the form and manner prescribed by the commissioner.
12.25(b) An applicant selected to participate must sign a contract agreeing to complete a
12.26five-year service obligation to practice as required under subdivision 2, paragraph (a).

12.27    Sec. 31. Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 4,
12.28is amended to read:
12.29    Subd. 4. Loan forgiveness. (a) The commissioner of the Minnesota Office of
12.30Higher Education may select a maximum of five applicants each year for participation
12.31in the loan forgiveness program, within the limits of available funding. Applicants are
12.32responsible for securing their own qualified educational loans.
13.1(b) The commissioner must select participants based on their suitability for
13.2practice serving the designated rural area, as indicated by experience or training. The
13.3commissioner must give preference to applicants closest to completing their training.
13.4(c) The commissioner must make annual disbursements directly to the participant of
13.5$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
13.6for each year that a participant meets the service obligation required under subdivision 3,
13.7paragraph (b), up to a maximum of five years.
13.8(d) Before receiving loan repayment disbursements and as requested, the participant
13.9must complete and return to the commissioner an affidavit of practice form provided by
13.10the commissioner verifying that the participant is practicing as required under subdivision
13.112, paragraph (a). The participant must provide the commissioner with verification that the
13.12full amount of loan repayment disbursement received by the participant has been applied
13.13toward the designated loans. After each disbursement, verification must be received by
13.14the commissioner and approved before the next loan repayment disbursement is made.
13.15(e) Participants who move their practice remain eligible for loan repayment as long
13.16as they practice as required under subdivision 2, paragraph (a).

13.17    Sec. 32. Minnesota Statutes 2013 Supplement, section 136A.1795, subdivision 5,
13.18is amended to read:
13.19    Subd. 5. Penalty for nonfulfillment. If a participant does not fulfill the required
13.20minimum commitment of service required under subdivision 3, paragraph (b), the
13.21commissioner of the Minnesota Office of Higher Education must collect from the
13.22participant the total amount paid to the participant under the loan forgiveness program
13.23plus interest at a rate established according to section 270C.40. The commissioner must
13.24deposit the money collected in the state general fund. The commissioner must allow
13.25waivers of all or part of the money owed the commissioner as a result of a nonfulfillment
13.26penalty if emergency circumstances prevented fulfillment of the service obligation.

13.27    Sec. 33. Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 2,
13.28is amended to read:
13.29    Subd. 2. Eligibility; grant assistance. (a) A tribally controlled college is eligible to
13.30receive supplemental grant assistance from the office of Higher Education, as provided in
13.31this section, for nonbeneficiary student enrollment if the college is not otherwise eligible
13.32to receive federal grant funding for those students under United States Code, title 25,
13.33section 1808.
14.1(b) The office shall make grants to tribally controlled colleges to defray the costs
14.2of education associated with the enrollment of nonbeneficiary students. Grants made
14.3pursuant to this section must be provided directly to the recipient college.

14.4    Sec. 34. Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 3,
14.5is amended to read:
14.6    Subd. 3. Grant application. To receive a grant under this section, a tribally
14.7controlled college must submit an application in the manner required by the office of
14.8Higher Education. Upon submission of a completed application indicating that the tribally
14.9controlled college is eligible, the office shall distribute to the college, during each year of
14.10the biennium, a grant of $5,300 for each nonbeneficiary student on a full-time equivalent
14.11basis. If the amount appropriated for grants under this section is insufficient to cover
14.12the total amount of grant eligibility, the office shall distribute a prorated amount per
14.13nonbeneficiary student on a full-time equivalent basis.

14.14    Sec. 35. Minnesota Statutes 2013 Supplement, section 136A.1796, subdivision 4,
14.15is amended to read:
14.16    Subd. 4. Reporting by recipient institutions. Each tribally controlled college
14.17receiving a grant under this section shall provide to the office of Higher Education,
14.18on an annual basis, an accurate and detailed account of the expenditures of the grant
14.19funds received by the college, and a copy of the college's most recent audit report and
14.20documentation of the enrollment status and ethnic status of each nonbeneficiary student
14.21for which grant assistance is sought under this section.

14.22    Sec. 36. Minnesota Statutes 2012, section 136A.232, is amended to read:
14.23136A.232 ADMINISTRATION; AGREEMENTS WITH EDUCATIONAL
14.24FACILITIES.
14.25The Minnesota office of Higher Education shall develop and administer a work-study
14.26program. The office shall enter into agreements with institutions of postsecondary
14.27education.

14.28    Sec. 37. Minnesota Statutes 2012, section 136A.233, subdivision 1, is amended to read:
14.29    Subdivision 1. Allocation to institutions. The Minnesota office of Higher Education
14.30 shall allocate work-study money to eligible postsecondary institutions according to the
14.31resident full-time equivalent enrollment of all eligible postsecondary institutions that
14.32apply to participate in the program, and the amount of the allocation that an institution
15.1spent during the previous academic year. Each institution wishing to participate in the
15.2work-study program must submit, in accordance with policies and procedures established
15.3by the office, an estimate of the amount of funds needed by the institution. Any funds
15.4allocated to an institution that exceed the actual need of the institution shall be reallocated
15.5by the office to other institutions. An institution may carry forward or backward the same
15.6percentage of its initial allocation that is authorized under federal work-study provisions.

15.7    Sec. 38. Minnesota Statutes 2013 Supplement, section 136A.233, subdivision 2,
15.8is amended to read:
15.9    Subd. 2. Definitions. For purposes of sections 136A.231 to 136A.233, the words
15.10defined in this subdivision have the meanings ascribed to them.
15.11    (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
15.12least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
15.13institution.
15.14    (b) "Minnesota resident" means a student who meets the conditions in section
15.15136A.101, subdivision 8 .
15.16    (c) "Financial need" means the need for financial assistance in order to attend a
15.17postsecondary institution as determined by a postsecondary institution according to
15.18guidelines established by the Minnesota office of Higher Education.
15.19    (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
15.20nonsectarian agency or state institution located in the state of Minnesota, a disabled person
15.21or a person over 65 who employs a student to provide personal services in or about the
15.22person's residence, or a private, for-profit employer employing a student as an intern in a
15.23position directly related to the student's field of study that will enhance the student's
15.24knowledge and skills in that field.
15.25    (e) "Eligible postsecondary institution" means any postsecondary institution eligible
15.26for participation in the Minnesota state grant program as specified in section 136A.101,
15.27subdivision 4 .
15.28    (f) "Independent student" has the meaning given under title IV of the Higher
15.29Education Act of 1965, as amended, and applicable regulations.
15.30    (g) "Half time" for undergraduates has the meaning given in section 136A.101,
15.31subdivision 7b , and for graduate students is defined by the institution.

15.32    Sec. 39. Minnesota Statutes 2012, section 136A.233, subdivision 4, is amended to read:
15.33    Subd. 4. Cooperation with local schools. Each campus using the state work study
15.34program is encouraged to cooperate with its local public elementary and secondary schools
16.1to place college work study students in activities in the schools, such as tutoring. Students
16.2must be placed in meaningful activities that directly assist students in kindergarten through
16.3grade 12 in meeting graduation standards including the profiles of learning. College
16.4students shall work under direct supervision; therefore, school hiring authorities are not
16.5required to request criminal background checks on these students under section 123B.03.

16.6    Sec. 40. Minnesota Statutes 2012, section 136A.65, subdivision 6, is amended to read:
16.7    Subd. 6. Name. A degree-granting school may use the term "academy" or "institute"
16.8in its name without meeting any additional requirements. A school may use the term
16.9"college" in its name if it offers at least one program leading to an associate or higher
16.10degree. A school may use the term "university" in its name if it offers at least one program
16.11leading to a master's or doctorate degree.

16.12    Sec. 41. Minnesota Statutes 2012, section 136A.685, is amended to read:
16.13136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR
16.14MISREPRESENTATION.
16.15The office shall not provide registration or degree or name approval to a
16.16school if there has been a criminal, civil, or administrative adjudication of fraud or
16.17misrepresentation in Minnesota or in another state or jurisdiction against the school or its
16.18owner, officers, agents, or sponsoring organization. Such an The adjudication of fraud or
16.19misrepresentation shall be is sufficient cause for the office to determine that a school:
16.20(1) does not qualify for exemption under section 136A.657; or
16.21(2) is not approved to grant degrees or to use the term "academy," "college,"
16.22 "institute," or "university" in its name.

16.23    Sec. 42. Minnesota Statutes 2013 Supplement, section 136A.861, subdivision 1,
16.24is amended to read:
16.25    Subdivision 1. Grants. (a) The commissioner of the Minnesota Office of Higher
16.26Education shall award grants to foster postsecondary attendance and retention by
16.27providing outreach services to historically underserved students in grades six through 12
16.28and historically underrepresented college students. Grants must be awarded to programs
16.29that provide precollege services, including, but not limited to:
16.30    (1) academic counseling;
16.31    (2) mentoring;
16.32    (3) fostering and improving parental involvement in planning for and facilitating a
16.33college education;
17.1    (4) services for students with English as a second language;
17.2    (5) academic enrichment activities;
17.3    (6) tutoring;
17.4    (7) career awareness and exploration;
17.5    (8) orientation to college life;
17.6    (9) assistance with high school course selection and information about college
17.7admission requirements; and
17.8    (10) financial aid counseling.
17.9    (b) Grants shall be awarded to postsecondary institutions, professional organizations,
17.10community-based organizations, or others deemed appropriate by the commissioner.
17.11    (c) Grants shall be awarded for one year and may be renewed for a second year
17.12with documentation to the Minnesota office of Higher Education of successful program
17.13outcomes.

17.14    Sec. 43. Minnesota Statutes 2013 Supplement, section 136A.861, subdivision 3,
17.15is amended to read:
17.16    Subd. 3. Application process. (a) The commissioner of the Minnesota Office of
17.17Higher Education shall develop a grant application process. The commissioner shall
17.18attempt to support projects in a manner that ensures that eligible students throughout
17.19the state have access to program services.
17.20    (b) The grant application must include, at a minimum, the following information:
17.21    (1) a description of the characteristics of the students to be served reflective of the
17.22need for services listed in subdivision 1;
17.23    (2) a description of the services to be provided and a timeline for implementation of
17.24the activities;
17.25    (3) a description of how the services provided will foster postsecondary attendance
17.26and support postsecondary retention;
17.27    (4) a description of how the services will be evaluated to determine whether the
17.28program goals were met; and
17.29    (5) other information as identified by the commissioner.
17.30Grant recipients must specify both program and student outcome goals, and performance
17.31measures for each goal.

17.32    Sec. 44. Minnesota Statutes 2012, section 136A.861, subdivision 6, is amended to read:
17.33    Subd. 6. Program evaluation. Each grant recipient must annually submit a report
17.34to the Minnesota office of Higher Education delineating its program and student outcome
18.1goals, and activities implemented to achieve the stated outcomes. The goals must be
18.2clearly stated and measurable. Grant recipients are required to collect, analyze, and report
18.3on participation and outcome data that enable the office to verify that the program goals
18.4were met. The office shall maintain:
18.5    (1) information about successful precollege program and undergraduate student
18.6retention program activities for dissemination to individuals throughout the state interested
18.7in adopting or replicating successful program practices; and
18.8    (2) data on the success of the funded projects in increasing the high school
18.9graduation, college participation, and college graduation rates of students served by the
18.10grant recipients. The office may convene meetings of the grant recipients, as needed, to
18.11discuss issues pertaining to the implementation of precollege services and undergraduate
18.12retention programs.

18.13    Sec. 45. Minnesota Statutes 2012, section 136F.01, is amended to read:
18.14136F.01 DEFINITIONS.
18.15    Subdivision 1. Scope. For the purpose of this chapter, the following terms have
18.16the meanings given them.
18.17    Subd. 2. Board or board of trustees. "Board" or "board of trustees" means the
18.18Board of Trustees of the Minnesota State Colleges and Universities.
18.19    Subd. 3. Chancellor. "Chancellor" means the chancellor of the Minnesota State
18.20Colleges and Universities.
18.21    Subd. 4. State colleges and universities. "State colleges and universities" means
18.22Minnesota state colleges and universities governed by the board of trustees.
18.23    Subd. 5. Student activities. "Student activities" means lectures, concerts, and other
18.24functions contributing to the mental, moral, and cultural development of the student body
18.25and community in which they live, athletic activities, including intercollegiate contests,
18.26forensics, dramatics, and such other activities of any nature as in the opinion of the board
18.27contribute to the educational, cultural, or physical well being of the student body.

18.28    Sec. 46. Minnesota Statutes 2012, section 136F.02, subdivision 1, is amended to read:
18.29    Subdivision 1. Membership. The board consists of 15 members appointed by the
18.30governor, including three members who are students who have attended an institution for
18.31at least one year and are currently enrolled at the time of appointment at least half time
18.32in a degree, diploma, or certificate program in an institution governed by the board. The
18.33student members shall include one member from a community college, one member from
18.34a state university, and one member from a technical college. One member representing
19.1labor must be appointed after considering the recommendations made under section
19.2136F.045 . The governor is not bound by the recommendations. Appointments to the
19.3board are with the advice and consent of the senate. At least one member of the board
19.4must be a resident of each congressional district. All other members must be appointed to
19.5represent the state at large. In selecting appointees, the governor must consider the needs
19.6of the board of trustees and the balance of the board membership with respect to labor and
19.7business representation and racial, gender, geographic, and ethnic composition.
19.8A commissioner of a state agency may not serve as a member of the board.

19.9    Sec. 47. Minnesota Statutes 2012, section 136F.03, subdivision 1, is amended to read:
19.10    Subdivision 1. Purpose. A Candidate Advisory Council for the board of Trustees of
19.11the Minnesota State Colleges and Universities shall assist the governor in determining
19.12criteria for, and identifying and recruiting qualified candidates for, nonstudent membership
19.13on the board.

19.14    Sec. 48. Minnesota Statutes 2012, section 136F.04, subdivision 2, is amended to read:
19.15    Subd. 2. Criteria. After consulting with the board of Trustees Candidate Advisory
19.16Council, the student associations shall jointly develop a statement of the selection criteria
19.17to be applied to potential candidates.

19.18    Sec. 49. Minnesota Statutes 2012, section 136F.045, is amended to read:
19.19136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION
19.20PROCESS.
19.21    The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to
19.22be recommended to the governor for appointment to the board. The organization must
19.23develop a process for selecting candidates, and a statement of selection criteria for board
19.24membership that is consistent with the requirements under section 136F.02, subdivision 1.
19.25The organization must recommend at least two and no more than four candidates to the
19.26governor beginning in 2010 and every six years thereafter or sooner if vacancies in the
19.27labor seat occur. Recommendations must be made to the governor and to the chairs and
19.28ranking minority members of the legislative committees with primary jurisdiction over
19.29higher education policy and finance by April 15 of the year in which the governor makes
19.30appointments to the board. The governor is not bound by the recommendations.

19.31    Sec. 50. Minnesota Statutes 2012, section 136F.05, is amended to read:
19.32136F.05 MISSIONS.
20.1The mission of the board is to provide programs of study that meet the needs
20.2of students for occupational, general, baccalaureate, and graduate education. The state
20.3universities, community colleges, and technical colleges shall have distinct missions
20.4as provided in section 135A.052, subdivision 1. Within that statutory definition and
20.5subject to the approval of the board, each community college, state university, and
20.6technical college may develop its own distinct campus mission. The board shall develop
20.7administrative arrangements that make possible the efficient use of the facilities and staff
20.8of the technical colleges, community colleges, and state universities for providing these
20.9several different programs of study, so that students may have the benefit of improved
20.10and broader course offerings, ease of transfer among schools and programs, integrated
20.11course credit, coordinated degree programs, and coordinated financial aid. In carrying out
20.12the merger of the three separate systems, The board shall control administrative costs by
20.13eliminating duplicative administrative positions and course offerings.

20.14    Sec. 51. Minnesota Statutes 2012, section 136F.10, is amended to read:
20.15136F.10 DESIGNATION.
20.16    The following are designated as the Minnesota State Colleges and Universities: the
20.17community state community, technical, and consolidated colleges located at Alexandria,
20.18Albert Lea, Anoka, Austin, Bemidji, Bloomington, Brainerd, Brooklyn Park, Cambridge,
20.19Canby, Cloquet, Coon Rapids, Detroit Lakes, Duluth, East Grand Forks, Eden Prairie,
20.20Ely, Eveleth, Faribault, Fergus Falls, Grand Rapids, Granite Falls, Hibbing, Hutchinson,
20.21International Falls, Inver Grove Heights, Jackson, Mahtomedi, Minneapolis, Moorhead,
20.22North Mankato, Owatonna, Pine City, Pipestone, Red Wing, Rochester, Rosemount,
20.23St. Cloud, St. Paul, Staples, Thief River Falls, Virginia, Wadena, White Bear Lake,
20.24Willmar, Winona, and Worthington; the community college centers located at Cambridge,
20.25Duluth, and Owatonna; and the state universities located at Bemidji, Mankato, Marshall,
20.26Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan area; and the technical
20.27colleges located at Alexandria, Albert Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn
20.28Park, Canby, Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, Faribault,
20.29Granite Falls, Hibbing, Hutchinson, Jackson, Minneapolis, Mahtomedi, Moorhead, North
20.30Mankato, Pine City, Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul,
20.31Staples, Thief River Falls, Wadena, Willmar, and Winona seven-county metropolitan area.

20.32    Sec. 52. Minnesota Statutes 2012, section 136F.12, is amended to read:
20.33136F.12 FOND DU LAC CAMPUS.
21.1    Subdivision 1. Unique missions. The Fond du Lac campus has a unique mission
21.2among two-year colleges to serve the lower division general education needs in Carlton
21.3and south St. Louis Counties, and the education needs of American Indians throughout the
21.4state and especially in northern Minnesota. The campus has a further unique mission to
21.5provide programs in support of its federal land grant status. Accordingly, while the college
21.6is governed by the board of Trustees, its governance is accomplished in conjunction with
21.7the board of directors of Fond du Lac Tribal College.
21.8    Subd. 2. Selected programs. Notwithstanding section 135A.052, subdivision
21.91 , to better meet the education needs of Minnesota's American Indian students, and
21.10in furtherance of the unique missions provided in subdivision 1, Fond du Lac Tribal
21.11and Community College may offer a baccalaureate program in elementary education, as
21.12approved by the board of Trustees of the Minnesota State Colleges and Universities, and
21.13the board of directors of Fond du Lac Tribal and Community College.
21.14    Subd. 3. Bargaining unit assignment. Notwithstanding section 179A.10,
21.15subdivision 2 , the state university instructional unit shall include faculty who teach upper
21.16division courses at the Fond du Lac Tribal and Community College.

21.17    Sec. 53. Minnesota Statutes 2012, section 136F.14, is amended to read:
21.18136F.14 CAMPUS MERGER OR REORGANIZATION.
21.19The board may merge or reorganize campuses or centers for the purpose of increased
21.20efficiency, use of personnel, placement of programs, student access, and other needs as
21.21determined by the board. The board shall report its action to the legislature.

21.22    Sec. 54. Minnesota Statutes 2012, section 136F.18, is amended to read:
21.23136F.18 CAMPUS CLOSING.
21.24The board may close a campus or center under its jurisdiction according to policies
21.25adopted by the board. Prior to closing a campus or center, the board shall hold a public
21.26hearing on the issue in the area which would be affected by the closing. At the hearing
21.27affected persons shall have an opportunity to present testimony.

21.28    Sec. 55. Minnesota Statutes 2012, section 136F.23, is amended to read:
21.29136F.23 STUDENT ASSOCIATIONS; PURCHASING AUTHORITY.
21.30Notwithstanding chapter 16A or 16C, the student associations recognized by the
21.31board of Trustees of the Minnesota State Colleges and Universities may purchase goods
21.32or materials through state purchasing authority for the ordinary day-to-day operations of
22.1the associations. The student associations must be nonprofit 501(c)(3) organizations in
22.2order to qualify for this authority. The Department of Administration may require that the
22.3purchase documents be approved by appropriate officials in the board's central office.

22.4    Sec. 56. Minnesota Statutes 2012, section 136F.28, subdivision 1, is amended to read:
22.5    Subdivision 1. Grants. A Southwest Asia veteran who enrolls in a technical college
22.6program, and who is a Minnesota resident whose entire education has not included
22.7completion of at least one technical college program is eligible for a state grant of $500
22.8per year if the veteran has GI Montgomery Bill benefits, or $1,000 per year if the veteran
22.9does not have GI Montgomery Bill benefits, until the veteran has completed the lesser of
22.10(1) 115 credits in a technical college program, or (2) one technical college program. The
22.11grant is based on full-time attendance and shall be prorated if the student is attending less
22.12than full time. To be eligible for the tuition relief, a veteran who is discharged before July
22.131, 1993, must enroll in a technical college by July 1, 1995, and a veteran who is discharged
22.14on or after July 1, 1993, must enroll in a technical college within two years of the date
22.15of discharge. All veterans enrolled under this program must maintain a minimum of six
22.16credits per quarter. Total grants may not exceed the available appropriation.

22.17    Sec. 57. Minnesota Statutes 2012, section 136F.48, is amended to read:
22.18136F.48 EMPLOYER-PAID HEALTH INSURANCE.
22.19(a) This section applies to a person who:
22.20(1) retires from the Minnesota State Colleges and Universities system with at least
22.21ten years of combined service credit in a system under the jurisdiction of the board of
22.22Trustees of the Minnesota State Colleges and Universities;
22.23(2) was employed on a full-time basis immediately preceding retirement as a
22.24faculty member or as an unclassified administrator in the Minnesota State Colleges and
22.25Universities system;
22.26(3) begins drawing a retirement benefit from the Individual Retirement Account Plan
22.27or an annuity from the Teachers Retirement Association, from the General State Employees
22.28Retirement Plan or the Unclassified State Employees Retirement Program of the
22.29Minnesota State Retirement System, or from a first class city teacher retirement plan; and
22.30(4) returns to work on not less than a one-third time basis and not more than a
22.31two-thirds time basis in the system from which the person retired under an agreement.
22.32(b) Initial participation, the amount of time worked, and the duration of participation
22.33under this section must be mutually agreed upon by the president of the institution where
22.34the person returns to work and the employee. The president may require up to one-year
23.1notice of intent to participate in the program as a condition of participation under this
23.2section. The president shall determine the time of year the employee shall work. The
23.3employer or the president may not require a person to waive any rights under a collective
23.4bargaining agreement as a condition of participation under this section.
23.5(c) For a person eligible under paragraphs (a) and (b), the employing board shall
23.6make the same employer contribution for hospital, medical, and dental benefits as would
23.7be made if the person were employed full time.
23.8(d) For work under paragraph (a), a person must receive a percentage of the person's
23.9salary at the time of retirement that is equal to the percentage of time the person works
23.10compared to full-time work.
23.11(e) If a collective bargaining agreement covering a person provides for an early
23.12retirement incentive that is based on age, the incentive provided to the person must be
23.13based on the person's age at the time employment under this section ends. However, the
23.14salary used to determine the amount of the incentive must be the salary that would have
23.15been paid if the person had been employed full time for the year immediately preceding
23.16the time employment under this section ends.
23.17(f) A person who returns to work under this section is a member of the appropriate
23.18bargaining unit and is covered by the appropriate collective bargaining contract. Except
23.19as provided in this section, the person's coverage is subject to any part of the contract
23.20limiting rights of part-time employees.

23.21    Sec. 58. Minnesota Statutes 2012, section 136F.482, is amended to read:
23.22136F.482 APPLICATION OF OTHER LAWS.
23.23Unilateral implementation of section 136F.481 by the board of Trustees of the
23.24Minnesota State Colleges and Universities, by the chancellor, or by a president of a college
23.25or university is not an unfair labor practice under chapter 179A.

23.26    Sec. 59. Minnesota Statutes 2012, section 136F.581, subdivision 1, is amended to read:
23.27    Subdivision 1. Authority for purchases and contracts. The board and the colleges
23.28and universities are subject to the provisions of section 471.345. In addition to the
23.29contracting authority under this chapter, the board of Trustees may utilize any contracting
23.30options available to the commissioner of administration under chapter 16A, 16B, or 16C.

23.31    Sec. 60. Minnesota Statutes 2012, section 136F.60, subdivision 1, is amended to read:
23.32    Subdivision 1. Purchase of neighboring property. The board may purchase
23.33property adjacent to or in the vicinity of the campuses as necessary for the development of
24.1a state college or university. Before taking action, the board shall consult with the chairs of
24.2the senate Finance Committee and the house of representatives Ways and Means Committee
24.3about the proposed action. The board shall explain the need to acquire property, specify
24.4the property to be acquired, and indicate the source and amount of money needed for the
24.5acquisition. The amount funds needed may be spent from sums previously appropriated
24.6for purposes of the state colleges and universities, including, but not limited to, general
24.7fund appropriations for instructional or noninstructional expenditures, general fund
24.8appropriations carried forward, or state college and university activity fund appropriations.
24.9The board may pay relocation costs, at its discretion, when acquiring property.

24.10    Sec. 61. Minnesota Statutes 2012, section 136F.65, is amended to read:
24.11136F.65 ACCEPTANCE OF FEDERAL MONEY.
24.12The board of Trustees is hereby designated the state agency empowered to accept
24.13any and all money provided for or made available to this state by the United States of
24.14America or any department or agency thereof for the construction and equipping of any
24.15building under the control of the board of Trustees in accordance with the provisions of
24.16federal law and any rules or regulations promulgated thereunder and are further authorized
24.17to do any and all things required of this state by such federal law and the rules and
24.18regulations promulgated thereunder in order to obtain such federal money.

24.19    Sec. 62. Minnesota Statutes 2012, section 136F.705, is amended to read:
24.20136F.705 UNDERGRADUATE TUITION GUARANTEE PLAN.
24.21(a) The board of trustees is encouraged to offer entering students a plan providing
24.22stable tuition for students pursuing two-year or four-year degrees that can provide students
24.23a tuition option designed to meet the goals in this section.
24.24(b) A Minnesota resident student who first enrolls in a degree program at a state
24.25college or university beginning in the spring of 2012 or later is guaranteed a stable tuition
24.26for up to four consecutive academic years.
24.27(c) For an undergraduate student enrolled in a baccalaureate degree program at a
24.28state university, the tuition charged to the student for each semester of enrollment during
24.29a four-year period, beginning with the first semester of enrollment, must not exceed the
24.30amount of tuition that the student was charged for the first semester of enrollment. For a
24.31student who continues to be enrolled after four consecutive academic years, the tuition
24.32rate for each semester in excess of four years is equal to the tuition rate paid by new
24.33enrollees at the state university.
25.1(d) For an undergraduate student enrolled in an associate degree program at a college,
25.2the tuition charged to the student for each semester of enrollment during a two-year period,
25.3beginning with the first semester of enrollment, must not exceed the amount of tuition that
25.4the student was charged for the first semester of enrollment. For a student who continues
25.5to be enrolled after two consecutive academic years, the tuition rate for each semester in
25.6excess of two years is equal to the tuition rate for new enrollees at the college.
25.7(e) Time limits for the stable tuition plan under this section do not apply to a student
25.8in the military while the student is on active military duty.

25.9    Sec. 63. Minnesota Statutes 2012, section 136F.90, subdivision 1, is amended to read:
25.10    Subdivision 1. Duties. For state colleges and universities, the board of Trustees of
25.11the Minnesota State Colleges and Universities may:
25.12    (1) acquire by purchase or otherwise, construct, complete, remodel, equip, operate,
25.13control, and manage residence halls, dormitories, dining halls, student union buildings,
25.14parking facilities, and any other similar revenue-producing buildings of such type and
25.15character as the board finds necessary for the good and benefit of state colleges and
25.16universities, and may acquire property whether real, personal, or mixed, by gift, purchase,
25.17or otherwise; provided that no contract for the construction of any building shall be
25.18entered into until financing has been approved by the legislature;
25.19    (2) maintain and operate any buildings or structures and charge for their use, and
25.20conduct any activities that are commonly conducted in connection with the buildings
25.21or structures;
25.22    (3) enter into contracts for the purposes of sections 136F.90 to 136F.98;
25.23    (4) acquire building sites and buildings or structures by gift, purchase, or otherwise
25.24and pledge the revenues from them for the payment of any bonds issued for that purpose
25.25as provided in sections 136F.90 to 136F.98;
25.26    (5) borrow money and issue and sell bonds in an amount or amounts the legislature
25.27authorizes for the purpose of acquiring, constructing, completing, remodeling, or equipping
25.28any buildings or structures, and acquiring sites, and refund and refinance the bonds by the
25.29issuance and sale of refunding bonds when the board finds that it is in the public interest.
25.30The bonds shall be sold and issued by the board in the manner and upon the terms and
25.31conditions provided by chapter 475, except as otherwise provided in this section. The
25.32bonds are payable only from and secured by an irrevocable pledge of the revenues to be
25.33derived from the operation of any buildings or structures acquired, constructed, completed,
25.34remodeled, or equipped in whole or in part with the proceeds of the bonds and from other
25.35income and revenues described in section 136F.92, clause (1), the board by resolution
26.1specifies, and notwithstanding this limitation all bonds issued under sections 136F.90 to
26.2136F.98 shall have the qualities of negotiable instruments under the laws of this state. The
26.3legislature shall not appropriate money from the general fund to pay for these bonds.

26.4    Sec. 64. Minnesota Statutes 2012, section 136F.92, is amended to read:
26.5136F.92 RESOLUTION OF BOARD.
26.6Upon the determination by the board of Trustees of the Minnesota State Colleges and
26.7Universities or its successor to acquire, construct, complete, remodel, or equip any student
26.8residence halls, dormitories, dining halls, student union buildings, parking facilities, or
26.9other similar revenue-producing building or buildings, the board or its successor shall adopt
26.10a resolution describing generally the contemplated project, the estimated cost, including
26.11legal, engineering and financial expenses and interest on the bonds during the period of
26.12constructing the project and for six months thereafter, fixing the amount of the bonds,
26.13the maturity or maturities, the interest rate, and all details in respect of the bonds. The
26.14resolution shall contain covenants as may be determined by the board or its successor as to:
26.15(1) the pledging of all or any portion of the proceeds of any fees imposed upon
26.16students for student activities, student facilities, or for other purposes, and the net revenues
26.17from other buildings or facilities heretofore or hereafter constructed or acquired at any
26.18state university as additional security for the payment of the bonds;
26.19(2) the regulation as to the use of the buildings or structures to assure maximum
26.20use or occupancy;
26.21(3) the amount and kind of insurance to be carried, including use and occupancy
26.22insurance, the cost of which shall be payable only from the revenues to be derived from
26.23the buildings or structures;
26.24(4) the operation, maintenance, management, accounting and auditing, and the
26.25keeping of records, reports and audits of the buildings or structures;
26.26(5) the obligation of the board or its successor to maintain the buildings or structures
26.27in good condition and to operate them in an economical and efficient manner;
26.28(6) the amendment or modification of the resolution authorizing the issuance of any
26.29bonds, and the manner, terms and conditions, and the amount or percentage of assenting
26.30bonds necessary to effectuate the amendment or modification; and
26.31(7) other covenants as may be deemed necessary or desirable to assure the prompt
26.32and punctual payment of all bonds issued under sections 136F.90 to 136F.98.

26.33    Sec. 65. Minnesota Statutes 2012, section 136F.93, is amended to read:
26.34136F.93 STUDENT ACTIVITIES, FEES CHARGED.
27.1Whenever bonds are issued as provided in sections 136F.90 to 136F.98, it shall be
27.2the duty of the board of Trustees of the Minnesota State Colleges and Universities to
27.3establish charges or fees, including without limitation fees for student activities and fees
27.4for student facilities, for the use of any buildings or structures sufficient at all times to pay
27.5the principal of and interest on the bonds and to create and maintain suitable reserves for
27.6them and the necessary expenses of their operation and maintenance. All revenues derived
27.7from their operation shall be set aside in a separate fund and accounts and be irrevocably
27.8pledged for and used only to pay the principal of and interest upon the bonds issued for the
27.9purpose or purposes set forth and described in the resolution authorizing the issuance of
27.10the bonds, and the necessary expenses of the operation and maintenance of the buildings
27.11and structures; and the charges and fees shall be sufficient at all times for these purposes.

27.12    Sec. 66. Minnesota Statutes 2012, section 136F.94, is amended to read:
27.13136F.94 SPECIAL REVENUE FUND.
27.14(a) The gross total income derived from the sale of bonds, and receipts and income
27.15derived from charges or fees, rentals, and all other revenue established for the use and
27.16service of any buildings or structures shall, within three days after their receipt, be paid to
27.17and held by the treasurer of the board of Trustees of the Minnesota State Colleges and
27.18Universities as a special fund known as, "The Board of Trustees of the Minnesota State
27.19Colleges and Universities Revenue Fund." The treasurer shall be custodian of the special
27.20fund, which fund shall be held and disbursed for the purposes provided in sections 136F.90
27.21to 136F.98. The special fund shall be protected by a corporate surety bond executed by
27.22the treasurer of the board with a surety authorized to do business under the laws of the
27.23state of Minnesota. The amount of the bond shall be fixed by resolution of the board
27.24or its successor and may be increased or diminished at any time. The premiums of the
27.25bonds shall be payable from "The Board of Trustees of the Minnesota State Colleges and
27.26Universities Revenue Fund" and charged as an item of maintenance expense.
27.27(b) A certified copy of each resolution providing for the issuance of bonds under
27.28sections 136F.90 to 136F.98 shall be filed with the treasurer of the board, and it shall be the
27.29duty of the treasurer to keep and maintain separate accounts in the special fund for each
27.30bond issue in accordance with the covenants and the directions set out in the resolution
27.31providing for the issuance of the bonds and to disburse funds from the proper account for
27.32the payment of the principal of and interest on the bonds in accordance with the directions
27.33and covenants of the resolution authorizing the issue. All disbursements for maintenance
27.34and operation costs shall be made from the proper maintenance and operation account
27.35by order of the board or its successor in accordance with the covenants set out in the
28.1resolution authorizing the issuance of bonds. All disbursements for construction costs
28.2shall be made from a separate account in the special fund by order of the board or its
28.3successor in accordance with the covenants set out in the resolution authorizing the bonds.

28.4    Sec. 67. Minnesota Statutes 2012, section 136F.95, is amended to read:
28.5136F.95 ALLOCATION OF RECEIPTS.
28.6All moneys in the board of Trustees of the Minnesota State Colleges and Universities
28.7 revenue fund and all income from the operation of residence halls, dormitories, dining
28.8halls, student union buildings, parking facilities and other revenue producing buildings
28.9and structures are appropriated first to the payment of expenses of the operation of the
28.10facilities from which the revenues so appropriated are derived and second to the payment
28.11of the obligations authorized by sections 136F.90 to 136F.98.

28.12    Sec. 68. Minnesota Statutes 2012, section 136F.96, is amended to read:
28.13136F.96 ADMINISTRATION.
28.14The administration of sections 136F.90 to 136F.98 shall be under the board of
28.15Trustees of the Minnesota State Colleges and Universities independent of other authority
28.16and notwithstanding chapters 16A, 16B, and 16C.

28.17    Sec. 69. Minnesota Statutes 2012, section 136F.97, is amended to read:
28.18136F.97 CONTRACTS OF BOARD, PERFORMANCE COMPELLED.
28.19(a) The provisions of sections 136F.90 to 136F.98 and of any resolution or other
28.20proceedings authorizing the issuance of bonds shall constitute a contract with the holders
28.21of the bonds and the provisions shall be enforceable either in law or in equity, by suit,
28.22action, mandamus or other proceeding in any court of competent jurisdiction to enforce or
28.23compel the performance of any duties required by sections 136F.90 to 136F.98 and any
28.24resolution authorizing the issuance of bonds, including the establishment of sufficient
28.25charges or fees for use of any buildings or structures and the application of the income and
28.26revenue from them; and it shall be the duty of the board of Trustees of the Minnesota State
28.27Colleges and Universities or its successor upon the issuance of any bonds under sections
28.28136F.90 to 136F.98 to establish by resolution from time to time the fees or charges to be
28.29made for the use of any buildings or structures, which fees or charges shall be adjusted
28.30from time to time in order to always provide sufficient income for payment of the principal
28.31of and interest on the bonds issued as provided for in sections 136F.90 to 136F.98, and
28.32for the necessary expenses of operation and maintenance.
29.1(b) If the board of Trustees of the Minnesota State Colleges and Universities is
29.2abolished, all contracts made by the board and all things done or actions taken by the
29.3board under sections 136F.90 to 136F.98 shall be deemed to be contracts of, actions taken
29.4and things done by its successor and the successor shall be bound by all contracts, actions
29.5taken and things done by the board and subject to all the obligations and duties of the
29.6board under sections 136F.90 to 136F.98.

29.7    Sec. 70. Minnesota Statutes 2012, section 136F.98, subdivision 1, is amended to read:
29.8    Subdivision 1. Issuance of bonds. The board of Trustees of the Minnesota State
29.9Colleges and Universities or a successor may issue revenue bonds under sections 136F.90
29.10to 136F.97 whose aggregate principal amount at any time may not exceed $405,000,000,
29.11and payable from the revenue appropriated to the fund established by section 136F.94,
29.12and use the proceeds together with other public or private money that may otherwise
29.13become available to acquire land, and to acquire, construct, complete, remodel, and equip
29.14structures or portions thereof to be used for dormitory, residence hall, student union,
29.15food service, parking purposes, or for any other similar revenue-producing building or
29.16buildings of such type and character as the board finds desirable for the good and benefit
29.17of the state colleges and universities. Before issuing the bonds or any part of them, the
29.18board shall consult with and obtain the advisory recommendations of the chairs of the
29.19house of representatives Ways and Means Committee and the senate Finance Committee
29.20about the facilities to be financed by the bonds.

29.21    Sec. 71. Minnesota Statutes 2012, section 136F.98, subdivision 3, is amended to read:
29.22    Subd. 3. Successor. For the purposes of this section, the board of Trustees of the
29.23Minnesota State Colleges and Universities is the successor to the State University Board.

29.24    Sec. 72. Minnesota Statutes 2012, section 136G.09, subdivision 8, is amended to read:
29.25    Subd. 8. Maximum account balance limit. (a) When a contribution is made, the
29.26total account balance of all accounts held for the same beneficiary, including matching
29.27grant accounts, must not exceed the maximum account balance limit as determined under
29.28this subdivision.
29.29(b) The office must establish a maximum account balance limit. The office must
29.30adjust the maximum account balance limit, as necessary, or on January 1 of each year.
29.31The maximum account balance limit must not exceed the amount permitted for the plan to
29.32qualify as a qualified tuition program under section 529 of the Internal Revenue Code. For
29.33calendar years 2004 and 2005, the maximum account balance limit is $235,000.
30.1(c) If the total account balance of all accounts held for a single beneficiary reaches
30.2the maximum account balance limit prior to the end of that calendar year, the beneficiary
30.3may receive an applicable matching grant for that calendar year.

30.4    Sec. 73. Minnesota Statutes 2012, section 137.52, is amended to read:
30.5137.52 RECREATIONAL PROGRAM ASSESSMENT.
30.6(a) The commissioner of natural resources, in cooperation with the Board of Regents
30.7of the University of Minnesota, shall submit to the governor and the legislature by January
30.815, 2007, an assessment of the short-term and long-term programmatic plans for the
30.9development of the land identified in section 137.50, subdivision 6. The assessment shall
30.10include, but is not limited to, a timeline for providing the recreational opportunities, and
30.11the needed restoration including native species of local ecotype, measurable outcomes,
30.12and anticipated costs. The assessment must also include an evaluation of the opportunities
30.13to foster small-scale farm-to-market vegetable farming. The commissioner of natural
30.14resources shall consult with interested stakeholders, including Dakota County, to assist
30.15in the development of the plan.
30.16(b) The board shall, until the issue is resolved, report annually to the legislature on
30.17or before February 1, on its efforts and the efforts of the Department of Defense to remedy
30.18contamination of the university land caused by activities occurring prior to the University
30.19of Minnesota acquiring the land.
30.20(c) The commissioner of natural resources, in consultation with the Pollution Control
30.21Agency, shall report to the legislature by January 7, 2007, on what entities are responsible
30.22for remediating pollution on the university land that occurred prior to May 25, 2006.
30.23(d) The commissioner of natural resources, in cooperation with the board, shall
30.24submit to the governor and the legislature by January 7, 2007, a report regarding the
30.25implementation of section 137.51 and any recommendations for changes in section 137.51
30.26 necessary to carry out the intent of that section. The report must, among other things,
30.27specifically address the issue of whether a process or mechanism is necessary to resolve
30.28disputes between the University of Minnesota, the state, and other parties regarding uses
30.29of the university land.
30.30(e) The commissioner of natural resources must communicate with interested
30.31parties, including the local government units that contain any part of the university land,
30.32regarding the intended activities of the department with respect to the university land.

30.33    Sec. 74. REVISOR'S INSTRUCTION.
31.1(a) Except when amended according to this act, the revisor shall change the phrases
31.2"Office of Higher Education" and "Minnesota Office of Higher Education" to "office"
31.3wherever they appear in Minnesota Statutes, chapter 136A.
31.4(b) The revisor of statutes shall renumber Minnesota Statutes, section 135A.61
31.5as section 136A.862. The revisor shall make any necessary cross-reference changes in
31.6Minnesota Statutes or Minnesota Rules consistent with this renumbering.
31.7(c) Except when amended according to this act, the revisor shall change the
31.8phrases "Board of Trustees" and "Board of Trustees of the Minnesota State College and
31.9Universities" to "board" wherever they appear in Minnesota Statutes, chapter 136F.
31.10(d) The revisor of statutes shall make all necessary cross-reference changes in
31.11Minnesota Statutes consistent with the amendments and repealers in this act. The revisor
31.12shall make changes to sentence structure to preserve the meaning of the text.

31.13    Sec. 75. REPEALER.
31.14(a) Minnesota Statutes 2012, sections 135A.14, subdivision 6; 136A.05, subdivision
31.152; 136A.101, subdivision 2; 136A.15, subdivisions 3 and 5; 136A.16, subdivisions 3, 4,
31.166, and 7; 136A.17; 136A.62, subdivision 2; 136F.11; 136F.44, subdivision 2; 136F.49;
31.17136F.90, subdivision 6; 137.02, subdivision 1; and 137.59, are repealed.
31.18(b) Minnesota Statutes 2013 Supplement, sections 136A.101, subdivision 3;
31.19136A.15, subdivision 4; and 136A.16, subdivision 10, are repealed.
31.20(c) Minnesota Rules, parts 4810.2100; 4810.2200; 4810.2300; 4810.2400;
31.214810.2500; 4810.2600; 4810.2700; 4810.2800; 4830.5000; 4830.5100; 4830.5200,
31.22subparts 1 and 3; 4830.5300; and 4830.5400, are repealed.