HF 1240

as introduced - 87th Legislature (2011 - 2012) Posted on 03/21/2011 09:58am

A bill for an act
relating to higher education; amending postsecondary education provisions;
modifying definitions; modifying SELF loan revenue bonds provisions; making
changes to eligibility requirements for safety officer's survivor education
benefits; phasing out Minnesota college savings plan matching grants; making
technical changes; ending the achieve scholarship program; appropriating
money; amending Minnesota Statutes 2010, sections 136A.101, subdivision
8; 136A.1787; 136A.87; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05,
subdivisions 1, 6, 8; 299A.45, subdivision 1; repealing Minnesota Statutes
2010, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 10, 10a, 11, 14;
136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; Laws 2009, chapter 95, article
2, section 39.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin Subdivision 1. new text end

new text begin Summary By Fund. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by fund, made in this article.
new text end

new text begin SUMMARY BY FUND new text end
		new text begin 2012 new text end		new text begin 2013 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 1,372,787,000 new text end	new text begin $ new text end	new text begin 1,372,885,000 new text end	new text begin $ new text end	new text begin 2,745,672,000 new text end
new text begin Health Care Access new text end		new text begin 2,157,000 new text end		new text begin 2,157,000 new text end		new text begin 4,314,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,374,944,000 new text end	new text begin $ new text end	new text begin 1,375,042,000 new text end	new text begin $ new text end	new text begin 2,749,986,000 new text end

new text begin Subd. 2. new text end

new text begin Summary By Agency - All Funds. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by agency, made in this article.
new text end

new text begin SUMMARY BY AGENCY - ALL FUNDS new text end
		new text begin 2012 new text end		new text begin 2013 new text end		new text begin Total new text end
new text begin Minnesota Office of Higher Education new text end	new text begin $ new text end	new text begin 175,284,000 new text end	new text begin $ new text end	new text begin 175,382,000 new text end	new text begin $ new text end	new text begin 350,666,000 new text end
new text begin Mayo Clinic new text end		new text begin 1,351,000 new text end		new text begin 1,351,000 new text end		new text begin 2,702,000 new text end
new text begin Board of Trustees of the Minnesota State Colleges and Universities new text end		new text begin 592,530,000 new text end		new text begin 592,530,000 new text end		new text begin 1,185,060,000 new text end
new text begin Board of Regents of the University of Minnesota new text end		new text begin 605,779,000 new text end		new text begin 605,779,000 new text end		new text begin 1,211,558,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,374,944,000 new text end	new text begin $ new text end	new text begin 1,375,042,000 new text end	new text begin $ new text end	new text begin 2,749,986,000 new text end

Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2012" and "2013" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2012, or
June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
year 2013. "The biennium" is fiscal years 2012 and 2013.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2012 new text end		new text begin 2013 new text end

Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 175,284,000 new text end

new text begin $ new text end

new text begin 175,382,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Grants new text end

new text begin 144,238,000 new text end

new text begin 144,238,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin For the biennium, the tuition maximum
is $10,488 in each year for students in
four-year programs, and $5,808 for students
in two-year programs.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $7,000
each year.
new text end

new text begin This appropriation includes the amount
needed for the safety officer's survivor grant
program under Minnesota Statutes, section
299A.45.
new text end

new text begin Subd. 3. new text end new text begin Child Care Grants new text end

new text begin 6,350,000 new text end

new text begin 6,350,000 new text end

new text begin Subd. 4. new text end new text begin State Work-Study new text end

new text begin 9,889,000 new text end

new text begin 10,239,000 new text end

new text begin Subd. 5. new text end new text begin Indian Scholarships new text end

new text begin 1,900,000 new text end

new text begin 1,900,000 new text end

new text begin The director must contract with at least one
person with demonstrated competence in
American Indian culture and residing in or
near the city of Bemidji to assist students
with the scholarships under Minnesota
Statutes, section 136A.126, and with other
information about financial aid for which
the students may be eligible. Bemidji State
University must provide office space at
no cost to the Minnesota Office of Higher
Education for purposes of administering the
American Indian scholarship program under
Minnesota Statutes, section 136A.126.
new text end

new text begin Subd. 6. new text end new text begin Intervention for College Attendance Program Grants new text end

new text begin 746,000 new text end

new text begin 746,000 new text end

new text begin For the intervention for college attendance
program under Minnesota Statutes, section
136A.861.
new text end

new text begin Grants shall be awarded for one year and
may be renewed with documentation to the
Office of Higher Education.
new text end

new text begin Subd. 7. new text end new text begin Midwest Higher Education Compact new text end

new text begin 95,000 new text end

new text begin 95,000 new text end

new text begin Subd. 8. new text end new text begin Interstate Tuition Reciprocity new text end

new text begin 3,150,000 new text end

new text begin 3,250,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.
new text end

new text begin Subd. 9. new text end new text begin Minnesota College Savings Plan new text end

new text begin 350,000 new text end

new text begin -0- new text end

new text begin This appropriation is for matching grants
under Minnesota Statutes, section 136G.11,
in the first year.
new text end

new text begin Subd. 10. new text end new text begin MnLINK Gateway and Minitex new text end

new text begin 5,730,000 new text end

new text begin 5,730,000 new text end

new text begin Subd. 11. new text end new text begin Outreach Programs new text end

new text begin 342,000 new text end

new text begin 341,000 new text end

new text begin Subd. 12. new text end new text begin Agency Administration new text end

new text begin 2,494,000 new text end

new text begin 2,493,000 new text end

new text begin Subd. 13. new text end new text begin Balances Forward new text end

new text begin A balance in the first year under this section
does not cancel, but is available for the
second year.
new text end

new text begin Subd. 14. new text end new text begin Transfers new text end

new text begin The Minnesota Office of Higher Education
may transfer unencumbered balances from
the appropriations in this section to the state
grant appropriation, the interstate tuition
reciprocity appropriation, the child care
grant appropriation, the Indian scholarship
appropriation, the state work-study
appropriation, and the get ready program. A
transfer may be made only with prior written
notice to the chairs of the senate and house of
representatives committees with jurisdiction
over higher education finance.
new text end

Sec. 4. new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 592,530,000 new text end

new text begin $ new text end

new text begin 592,530,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Central Office and Shared Services Unit new text end

new text begin 44,249,000 new text end

new text begin 44,249,000 new text end

new text begin For the Office of the Chancellor and the
Shared Services Division.
new text end

new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end

new text begin 543,769,000 new text end

new text begin 543,769,000 new text end

new text begin Subd. 4. new text end new text begin Learning Network of Minnesota new text end

new text begin 4,512,000 new text end

new text begin 4,512,000 new text end

Sec. 5. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 605,779,000 new text end

new text begin $ new text end

new text begin 605,779,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 603,622,000 new text end	new text begin 603,622,000 new text end
new text begin Health Care Access new text end	new text begin 2,157,000 new text end	new text begin 2,157,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end

new text begin 543,668,000 new text end

new text begin 543,668,000 new text end

new text begin This appropriation includes funding for
operation and maintenance of the system.
new text end

new text begin Subd. 3. new text end new text begin Primary Care Education Initiatives new text end

new text begin 2,157,000 new text end

new text begin 2,157,000 new text end

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 4. new text end new text begin Special Appropriations new text end

new text begin (a) Agriculture and Extension Service new text end

new text begin 42,873,000 new text end

new text begin 42,873,000 new text end

new text begin For the Agricultural Experiment Station and
the Minnesota Extension Service.
new text end

new text begin (b) new text begin Health Sciences new text end new text end

new text begin 4,329,000 new text end

new text begin 4,329,000 new text end

new text begin $284,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital
family practice residency program. The
program must prepare doctors to practice
primary care medicine in the rural areas of
the state. The legislature intends this program
to improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner.
new text end

new text begin The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.
new text end

new text begin (c) new text begin Institute of Technology new text end new text end

new text begin 1,138,000 new text end

new text begin 1,138,000 new text end

new text begin For the Geological Survey and the talented
youth mathematics program.
new text end

new text begin (d) System Special new text end

new text begin 5,051,000 new text end

new text begin 5,051,000 new text end

new text begin For general research, industrial relations
education, Natural Resources Research
Institute, Center for Urban and Regional
Affairs, Bell Museum of Natural History, and
the Humphrey exhibit.
new text end

new text begin (e) University of Minnesota and Mayo Foundation Partnership new text end

new text begin 6,563,000 new text end

new text begin 6,563,000 new text end

new text begin For the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. An annual report
on the expenditure of these funds must be
submitted to the governor and the chairs
of the senate and house of representatives
committees responsible for higher education
and economic development by June 30 of
each fiscal year.
new text end

new text begin Subd. 5. new text end new text begin Academic Health Center new text end

new text begin The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is $22,250,000 each year.
new text end

Sec. 6. new text begin MAYO CLINIC new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,351,000 new text end

new text begin $ new text end

new text begin 1,351,000 new text end

new text begin The amounts that may be spent for the
purposes are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Medical School new text end

new text begin 665,000 new text end

new text begin 665,000 new text end

new text begin The state of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations.
new text end

new text begin It is intended that during the biennium the
Mayo Clinic use the capitation money to
increase the number of doctors practicing in
rural areas in need of doctors.
new text end

new text begin Subd. 3. new text end new text begin Family Practice and Graduate Residency Program new text end

new text begin 686,000 new text end

new text begin 686,000 new text end

new text begin The state of Minnesota must pay stipend
support for up to 27 residents each year.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

Section 1.

Minnesota Statutes 2010, section 136A.101, subdivision 8, is amended to
read:

Subd. 8.

Resident student.

"Resident student" means a student who meets one of
the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary
education for at least 12 months without being enrolled at a postsecondary educational
institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high
school deleted text begin and the student is physically attending a Minnesota postsecondary educational
institution deleted text end ;

(4) a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota;

(5) a member, spouse, or dependent of a member of the armed forces of the United
States stationed in Minnesota on active federal military service as defined in section
190.05, subdivision 5c;

(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
is a Minnesota resident;

(7) a person or spouse of a person who relocated to Minnesota from an area that
is declared a presidential disaster area within the preceding 12 months if the disaster
interrupted the person's postsecondary education; deleted text begin or
deleted text end

(8) a person defined as a refugee under United States Code, title 8, section
1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
continued to reside in Minnesota deleted text begin . deleted text end new text begin ; or
new text end

new text begin (9) with the exception of persons meeting the criteria in clause (3) or (4), a resident
student who leaves Minnesota for more than one year for reasons other than postsecondary
education or military service shall no longer be considered a resident student until the
student subsequently meets one of the criteria in this subdivision. A person who leaves
Minnesota for purposes other than military service or postsecondary education is not a
resident student if the student enrolls exclusively in distance education courses.
new text end

Sec. 2.

Minnesota Statutes 2010, section 136A.1787, is amended to read:

136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF
NEED.

(a) In order to ensure the payment of the principal of and interest on bonds and
notes of the office and the continued maintenance of the loan capital fund under section
136A.1785, the office shall annually determine and certify to the governor, on or before
December 1, the amount, if any:

(1) needed to restore the loan capital fund to the minimum amount required by a
resolution or indenture relating to any bonds or notes of the office, not exceeding the
maximum amount of principal and interest to become due and payable in any subsequent
year on all bonds or notes which are then outstanding;

(2) determined by the office to be needed in the immediately deleted text begin ensuing deleted text end new text begin following new text end
fiscal year, with other funds pledged and estimated to be received during that year, for
the payment of the principal and interest due and payable in that year on all outstanding
bonds and notes; and

(3) needed to restore any debt service reserve fund securing any outstanding bonds
or notes of the office to the amount required in a resolution or indenture relating to such
outstanding bonds or notes.

(b) new text begin If the office determines the need under paragraph (a), clause (2) or (3), to be for
the immediately following fiscal year, new text end the governor shall include and submit the amounts
certified by the office in accordance with this section to the legislature in the governor's
budget for the new text begin immediately new text end following fiscal year deleted text begin , or deleted text end new text begin . If the office determines the need
under paragraph (a), clause (2) or (3), to be for the current fiscal year, the governor shall
include and submit the amounts certified new text end in a governor's supplemental budget if the regular
budget for that year has previously been deleted text begin approved deleted text end new text begin enacted new text end .

Sec. 3.

Minnesota Statutes 2010, section 136A.87, is amended to read:

136A.87 PLANNING INFORMATION FOR POSTSECONDARY
EDUCATION.

The office shall make available to all residents beginning in 7th grade through
adulthood information about planning and preparing for postsecondary opportunities.
Information must be provided to all 7th grade students and their parents annually
by September 30 about planning for their postsecondary education. The office may
also provide information to high school students and their parents, to adults, and to
out-of-school youth. The information provided may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions
and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary
education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing
in the state, their respective missions and expectations for students, their preparation
requirements, admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions
and systems;

(9) the costs of postsecondary education and the availability of financial assistance
in meeting these costs, including specific information about the Minnesota Promise deleted text begin and
achieve scholarship program deleted text end ;

(10) the interrelationship of assistance from student financial aid, public assistance,
and job training programs; and

(11) financial planning for postsecondary education.

Sec. 4.

Minnesota Statutes 2010, section 136G.01, is amended to read:

136G.01 PLAN ESTABLISHED.

A college savings plan known as the Minnesota college savings plan is established.
In establishing this plan, the legislature seeks to encourage individuals to save for
postsecondary education by:

(1) providing a qualified tuition plan under federal tax law; new text begin and
new text end

deleted text begin (2) providing matching grants for contributions to the program by low- and
middle-income families; and
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end encouraging individuals, foundations, and businesses to provide additional
grants to participating students.

Sec. 5.

Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:

Subdivision 1.

General.

For purposes of sections 136G.01 to , the
following terms have the meanings given.

Sec. 6.

Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:

Subd. 18.

Matching grant.

"Matching grant" means an amount added to a matching
grant account under section 136G.11 new text begin for eligible account beneficiaries for account
contributions in calendar years 2001 to 2010 new text end .

Sec. 7.

Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:

Subd. 27.

Plan.

"Plan" refers to the plan established under sections 136G.01 to
.

Sec. 8.

Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:

Subdivision 1.

Responsibilities.

(a) The director shall establish the rules, terms,
and conditions for the plan, subject to the requirements of sections 136G.01 to .

(b) The director shall prescribe the application forms, procedures, and other
requirements that apply to the plan.

Sec. 9.

Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:

Subd. 6.

Three-year period for withdrawal of grants.

A matching grant deposited
in deleted text begin the deleted text end new text begin a matching grant new text end account new text begin based on account owner contributions during calendar
years 2001 to 2010 new text end under section 136G.11 may not be withdrawn within three years of the
establishment of the account of the beneficiary. In calculating the three-year period, the
period held in another account is included, if the account includes a rollover from another
account under section 529(c)(3)(C) of the Internal Revenue Code.

Sec. 10.

Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:

Subd. 8.

Administration.

The director shall administer the program, including
accepting and processing applications, maintaining account records, making payments,
deleted text begin making matching grants under section 136G.11, deleted text end and undertaking any other necessary
tasks to administer the program. The office may contract with one or more third parties to
carry out some or all of these administrative duties, including providing incentives and
marketing the program. The office and the board may jointly contract with third-party
providers, if the office and board determine that it is desirable to contract with the same
entity or entities for administration and investment management.

Sec. 11.

Minnesota Statutes 2010, section 299A.45, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

A person is eligible to receive educational benefits under
this section if the person:

(1) is certified under section 299A.44 and in compliance with this section and rules
of the commissioner of public safety and the Minnesota Office of Higher Education;

(2) is enrolled in an undergraduate degree or certificate program after June 30, 1990,
at an eligible Minnesota institution as provided in section 136A.101, subdivision 4;

(3) has not received a baccalaureate degree or been enrolled full time for deleted text begin nine deleted text end new text begin ten new text end
semesters or the equivalent, except that a student who withdraws from enrollment for
active military service is entitled to an additional semester or the equivalent of eligibility;
and

(4) is related in one of the following ways to a public safety officer killed in the
line of duty on or after January 1, 1973:

(i) as a dependent child less than 23 years of age;

(ii) as a surviving spouse; or

(iii) as a dependent child less than 30 years of age who has served on active military
duty 181 consecutive days or more and has been honorably discharged or released to the
dependent child's reserve or National Guard unit.

Sec. 12. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, section 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b,
10, 10a, 11, and 14, new text end new text begin are repealed effective July 1, 2011.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9,
and 10, new text end new text begin are repealed effective July 2, 2012.
new text end

new text begin (c) new text end new text begin Laws 2009, chapter 95, article 2, section 39, new text end new text begin is repealed effective July 1, 2011.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 3 to 10 are effective July 1, 2012.
new text end