HF 708

Introduction - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo Medical 
  1.7             Foundation, with certain conditions; amending 
  1.8             Minnesota Statutes 2002, section 136A.121, 
  1.9             subdivisions 7, 9, 13; repealing Minnesota Statutes 
  1.10            2002, sections 93.2235, subdivision 2; 124D.95; 
  1.11            136A.124. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1 
  1.14                           APPROPRIATIONS 
  1.15  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.16     The sums in the columns marked "APPROPRIATIONS" are 
  1.17  appropriated from the general fund, or other named fund, to the 
  1.18  agencies and for the purposes specified in this article.  The 
  1.19  listing of an amount under the figure "2004" or "2005" in this 
  1.20  article indicates that the amount is appropriated to be 
  1.21  available for the fiscal year ending June 30, 2004, or June 30, 
  1.22  2005, respectively.  "The first year" is fiscal year 2004.  "The 
  1.23  second year" is fiscal year 2005.  "The biennium" is fiscal 
  1.24  years 2004 and 2005. 
  1.25                          SUMMARY BY FUND 
  1.26                            2004          2005           TOTAL
  1.27  General            $1,281,558,000 $1,270,898,000 $2,552,456,000
  1.28  Health Care
  1.29  Access                  2,157,000      2,157,000      4,314,000
  2.1                    SUMMARY BY AGENCY - ALL FUNDS
  2.2                             2004          2005           TOTAL
  2.3   Higher Education Services Office
  2.4                         185,002,000    185,002,000    370,004,000
  2.5   Board of Trustees of the Minnesota
  2.6   State Colleges and Universities
  2.7                         553,381,000    540,194,000  1,093,575,000
  2.8   Board of Regents of the University
  2.9   of Minnesota
  2.10                        542,881,000    546,044,000  1,088,925,000
  2.11  Mayo Medical Foundation
  2.12                          1,391,000      1,391,000      2,782,000
  2.13                                            APPROPRIATIONS 
  2.14                                         Available for the Year 
  2.15                                             Ending June 30 
  2.16                                            2004         2005 
  2.17  Sec. 2.  HIGHER EDUCATION
  2.18  SERVICES OFFICE
  2.19  Subdivision 1. Total
  2.20  Appropriation                     $  185,002,000 $  185,002,000 
  2.21  The amounts that may be spent from this 
  2.22  appropriation for each purpose are 
  2.23  specified in the following subdivisions.
  2.24  Notwithstanding Minnesota Statutes, 
  2.25  section 136A.1211, savings in the state 
  2.26  grant program in fiscal years 2004 and 
  2.27  2005 resulting from any increases in 
  2.28  the maximum federal grant must be used 
  2.29  as provided in this section. 
  2.30  Subd. 2.  State Grants               150,575,000    150,575,000 
  2.31  If the appropriation in this 
  2.32  subdivision for either year is 
  2.33  insufficient, the appropriation for the 
  2.34  other year is available for it.  
  2.35  For the biennium, the private 
  2.36  institution tuition maximum shall be 
  2.37  $8,983 in the first year and $8,983 in 
  2.38  the second year for four-year 
  2.39  institutions and $6,913 in the first 
  2.40  year and $6,913 in the second year for 
  2.41  two-year institutions. 
  2.42  This appropriation contains money to 
  2.43  set the living and miscellaneous 
  2.44  expense allowance at $5,405 in each 
  2.45  year. 
  2.46  Subd. 3.  Interstate Tuition
  2.47  Reciprocity                            3,600,000      3,600,000 
  2.48  If the appropriation in this 
  2.49  subdivision for either year is 
  2.50  insufficient, the appropriation for the 
  3.1   other year is available to meet 
  3.2   reciprocity contract obligations. 
  3.3   Subd. 4.  State Work Study            12,444,000     12,444,000 
  3.4   Subd. 5.  Child Care Grants            4,743,000      4,743,000 
  3.5   Subd. 6.  Minitex                      4,381,000      4,381,000 
  3.6   Subd. 7.  MnLINK                         450,000        450,000 
  3.7   The base appropriation for MnLINK 
  3.8   operations is $400,000 each year in 
  3.9   fiscal years 2006 and 2007. 
  3.10  Any unexpended funds from the 
  3.11  appropriation in Laws 1997, chapter 
  3.12  183, article 1, section 2, subdivision 
  3.13  8, shall cancel on June 30, 2005. 
  3.14  Subd. 8.  Learning Network  
  3.15  of Minnesota                           4,829,000      4,829,000 
  3.16  Subd. 9.  Minnesota College 
  3.17  Savings Plan                           1,120,000      1,120,000 
  3.18  Subd. 10.  Income Contingent
  3.19  Loans
  3.20  The higher education services office 
  3.21  shall administer an income-contingent 
  3.22  loan repayment program to assist 
  3.23  graduates of Minnesota schools in 
  3.24  medicine, dentistry, pharmacy, 
  3.25  chiropractic medicine, public health, 
  3.26  and veterinary medicine, and Minnesota 
  3.27  residents graduating from optometry and 
  3.28  osteopathy programs.  Applicant data 
  3.29  collected by the office for this 
  3.30  program may be disclosed to a consumer 
  3.31  credit reporting agency under the same 
  3.32  conditions as those that apply to the 
  3.33  supplemental loan program under 
  3.34  Minnesota Statutes, section 136A.162.  
  3.35  No new applicants may be accepted after 
  3.36  June 30, 1995. 
  3.37  Subd. 11.  Agency 
  3.38  Administration                         2,860,000      2,860,000 
  3.39  Subd. 12.  Balances Forward 
  3.40  A balance in the first year under this 
  3.41  section does not cancel, but is 
  3.42  available for the second year. 
  3.43  Subd. 13.  Transfers 
  3.44  The higher education services office 
  3.45  may transfer unencumbered balances from 
  3.46  the appropriations in this section to 
  3.47  the state grant appropriation, the 
  3.48  interstate tuition reciprocity 
  3.49  appropriation, the child care 
  3.50  appropriation, and the state work study 
  3.51  appropriation. 
  3.52  Subd. 14.  Reporting
  3.53  The higher education services office 
  3.54  shall collect data monthly from 
  4.1   institutions disbursing state financial 
  4.2   aid.  The data collected shall include, 
  4.3   but is not limited to, expenditures by 
  4.4   type to date and unexpended balances. 
  4.5   The higher education services office 
  4.6   shall evaluate and report monthly on 
  4.7   state financial aid expenditures and 
  4.8   unexpended balances to the chairs of 
  4.9   the higher education finance committees 
  4.10  of the senate and house of 
  4.11  representatives and the commissioner of 
  4.12  finance.  By July 15, December 15, 
  4.13  February 15, and April 15, the services 
  4.14  office shall provide updated state 
  4.15  grant spending projections taking into 
  4.16  account the most current and projected 
  4.17  enrollment and tuition and fee 
  4.18  information, economic conditions, and 
  4.19  other relevant factors.  Before 
  4.20  submitting state grant spending 
  4.21  projections, the office shall meet and 
  4.22  consult with representatives of public 
  4.23  and private postsecondary education, 
  4.24  the department of finance, governor's 
  4.25  office, legislative staff, and 
  4.26  financial aid administrators.  The 
  4.27  institutions are encouraged to provide 
  4.28  tuition information to the higher 
  4.29  education services office no later than 
  4.30  July 1 of each year. 
  4.31  Sec. 3.  BOARD OF TRUSTEES OF THE
  4.32  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  4.33  Subdivision 1.  Total
  4.34  Appropriation                        553,381,000    540,194,000 
  4.35  The amounts that may be spent from this 
  4.36  appropriation for each purpose are 
  4.37  specified in the following subdivisions.
  4.38  The legislature intends that state 
  4.39  appropriations be used to strengthen 
  4.40  and support education of students.  To 
  4.41  this end, all money appropriated in 
  4.42  this section, except that in direct 
  4.43  support of system office activities, 
  4.44  shall be allocated by the board 
  4.45  directly to the colleges and 
  4.46  universities. 
  4.47  Subd. 2.  Accountability 
  4.48  The board shall continue to submit 
  4.49  reports as required by Laws 2001, First 
  4.50  Special Session chapter 1, article 1, 
  4.51  section 3, subdivision 3. 
  4.52  Sec. 4.  BOARD OF REGENTS OF THE 
  4.53  UNIVERSITY OF MINNESOTA 
  4.54  Subdivision 1.  Total
  4.55  Appropriation                        542,881,000    546,044,000 
  4.56  The amounts that may be spent from this 
  4.57  appropriation for each purpose are 
  4.58  specified in the following subdivisions.
  4.59  Subd. 2.  Operations and
  4.60  Maintenance                          477,357,000    480,520,000 
  5.1   Estimated Expenditures 
  5.2   and Appropriations 
  5.3   Subd. 3.  Health Care Access Fund       2,157,000     2,157,000
  5.4   This appropriation is from the health 
  5.5   care access fund for primary care 
  5.6   education initiatives. 
  5.7   Subd. 4.  Special
  5.8   Appropriation                         63,367,000     63,367,000
  5.9   The board may transfer amounts in this 
  5.10  subdivision to the operations and 
  5.11  maintenance appropriations in 
  5.12  subdivision 2. 
  5.13  (a) Agriculture and Extension Service 
  5.14      50,625,000     50,625,000
  5.15  This appropriation is for the 
  5.16  Agricultural Experiment Station, 
  5.17  Minnesota Extension Service. 
  5.18  The university must continue to provide 
  5.19  support for the rapid agricultural 
  5.20  response fund, and sustainable and 
  5.21  organic agriculture initiatives 
  5.22  including, but not limited to, the 
  5.23  alternative swine systems program. 
  5.24  Any salary increases granted by the 
  5.25  University to personnel paid from the 
  5.26  Minnesota Extension appropriation must 
  5.27  not result in a reduction of the county 
  5.28  responsibility for the salary payments. 
  5.29  During the biennium, the University 
  5.30  shall maintain an advisory council 
  5.31  system for each experiment station.  
  5.32  The advisory councils must be broadly 
  5.33  representative of the range in size and 
  5.34  income distribution of farms and 
  5.35  agribusinesses and must not 
  5.36  disproportionately represent those from 
  5.37  the upper half of the size and income 
  5.38  distributions.  
  5.39  (b) Health Sciences 
  5.40       4,929,000      4,929,000
  5.41  This appropriation is for the rural 
  5.42  physicians associates program, the 
  5.43  Veterinary Diagnostic Laboratory, 
  5.44  health sciences research, dental care, 
  5.45  and the Biomedical Engineering Center. 
  5.46  (c) Institute of Technology  
  5.47       1,387,000      1,387,000
  5.48  This appropriation is for the 
  5.49  Geological Survey and the Talented 
  5.50  Youth Mathematics Program. 
  5.51  (d) System Specials 
  5.52       6,426,000      6,426,000
  6.1   This appropriation is for general 
  6.2   research, student loans matching money, 
  6.3   industrial relations education, Natural 
  6.4   Resources Research Institute, Center 
  6.5   for Urban and Regional Affairs, Bell 
  6.6   Museum of Natural History, and the 
  6.7   Humphrey exhibit. 
  6.8   Subd. 5.  Accountability 
  6.9   The board shall continue to submit 
  6.10  reports as required by Laws 2001, First 
  6.11  Special Session chapter 1, article 1, 
  6.12  section 4, subdivision 5. 
  6.13  Sec. 5.  MAYO MEDICAL FOUNDATION 
  6.14  Subdivision 1.  Total
  6.15  Appropriation                           1,391,000       1,391,000
  6.16  The amounts that may be spent from this 
  6.17  appropriation for each purpose are 
  6.18  specified in the following subdivisions.
  6.19  If appropriations are insufficient to 
  6.20  cover the rates established in 
  6.21  subdivisions 2 and 3, the Mayo Medical 
  6.22  Foundation may evenly distribute the 
  6.23  funds received among students who are 
  6.24  Minnesota residents. 
  6.25  Subd. 2.  Medical School                  514,000         514,000
  6.26  The state of Minnesota must pay a 
  6.27  capitation of $14,405 each year for 
  6.28  each student who is a resident of 
  6.29  Minnesota.  The appropriation may be 
  6.30  transferred between years of the 
  6.31  biennium to accommodate enrollment 
  6.32  fluctuations. 
  6.33  The legislature intends that during the 
  6.34  biennium the Mayo foundation use the 
  6.35  capitation money to increase the number 
  6.36  of doctors practicing in rural areas in 
  6.37  need of doctors.  
  6.38  Subd. 3.  Family Practice and
  6.39  Graduate Residency Program                531,000         531,000
  6.40  The state of Minnesota must pay a 
  6.41  capitation of $22,313 for 26 residents 
  6.42  each year and $44,627 for one resident 
  6.43  each year. 
  6.44  Subd. 4.  St. Cloud Hospital-Mayo 
  6.45  Family Practice Residency Program         346,000         346,000
  6.46  This appropriation is to the Mayo 
  6.47  foundation to support 12 resident 
  6.48  physicians each year in the St. Cloud 
  6.49  Hospital-Mayo Family Practice Residency 
  6.50  program.  The program shall prepare 
  6.51  doctors to practice primary care 
  6.52  medicine in the rural areas of the 
  6.53  state.  It is intended that this 
  6.54  program will improve health care in 
  6.55  rural communities, provide affordable 
  6.56  access to appropriate medical care, and 
  6.57  manage the treatment of patients in a 
  6.58  more cost-effective manner. 
  7.1                              ARTICLE 2 
  7.2                          RELATED PROVISIONS 
  7.3      Section 1.  Minnesota Statutes 2002, section 136A.121, 
  7.4   subdivision 7, is amended to read: 
  7.5      Subd. 7.  [INSUFFICIENT APPROPRIATION.] (a) If the amount 
  7.6   appropriated is determined by the office to be insufficient to 
  7.7   make full awards to applicants under subdivision 5, before any 
  7.8   award for that year has been disbursed, awards must be reduced 
  7.9   the office shall transfer, from the work study appropriation to 
  7.10  the state grant appropriation, an amount sufficient to make full 
  7.11  awards up to and including the entire work study appropriation. 
  7.12     (b) If available funds, after the transfer in paragraph 
  7.13  (a), are still determined to be insufficient to make full grant 
  7.14  awards to applicants, the office shall transfer, from the child 
  7.15  care grant appropriation to the state grant appropriation, an 
  7.16  amount sufficient to make full awards up to and including the 
  7.17  entire child care grant appropriation. 
  7.18     (c) If the amount available for grant awards is still 
  7.19  determined to be insufficient after the transfers in paragraphs 
  7.20  (a) and (b), the office shall reduce awards by: 
  7.21     (1) adding a surcharge to the applicant's assigned family 
  7.22  responsibility, as defined in section 136A.101, subdivision 5a; 
  7.23  and 
  7.24     (2) a percentage increase in the applicant's assigned 
  7.25  student responsibility, as defined in subdivision 5.  
  7.26     Sec. 2.  Minnesota Statutes 2002, section 136A.121, 
  7.27  subdivision 9, is amended to read: 
  7.28     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
  7.29  office's requirements is eligible to apply for and receive a 
  7.30  grant in any year of undergraduate study unless the student has 
  7.31  obtained a baccalaureate degree or previously has been enrolled 
  7.32  full time or the equivalent for ten semesters or the equivalent, 
  7.33  excluding courses taken from a Minnesota school or 
  7.34  post-secondary institution which is not participating in the 
  7.35  state grant program and from which a student transferred no 
  7.36  credit.  A student enrolled in a two-year program at a four-year 
  8.1   institution is only eligible for the private institution tuition 
  8.2   and fee maximums established by law for two-year institutions. 
  8.3      Sec. 3.  Minnesota Statutes 2002, section 136A.121, 
  8.4   subdivision 13, is amended to read: 
  8.5      Subd. 13.  [DEADLINE.] The office shall accept applications 
  8.6   for state grants until February 15 and may establish a deadline 
  8.7   for the acceptance of applications that is later than February 
  8.8   15 of each academic year.  A student who applies for state grant 
  8.9   funds after the first semester or the equivalent of the academic 
  8.10  year may not receive retroactive funding for the entire academic 
  8.11  year. 
  8.12     Sec. 4.  [LIMITS ON TUITION INCREASES.] 
  8.13     Public institutions of higher education shall limit the 
  8.14  impact of budget reductions on students.  To that end, the board 
  8.15  of trustees of the Minnesota state colleges and universities 
  8.16  shall limit tuition increases to a maximum of 15 percent each 
  8.17  year.  The board of regents at the University of Minnesota is 
  8.18  also encouraged to limit tuition increases to a maximum of 15 
  8.19  percent each year. 
  8.20     Sec. 5.  [FREEZE ON SALARIES AND BENEFITS.] 
  8.21     The board of trustees of the Minnesota state colleges and 
  8.22  universities shall freeze salaries and benefits for its 
  8.23  employees at 2003 levels.  The board of regents of the 
  8.24  University of Minnesota is encouraged to freeze salaries and 
  8.25  benefits for its employees at 2003 levels. 
  8.26     Sec. 6.  [REPEALER.] 
  8.27     Minnesota Statutes 2002, sections 93.2235, subdivision 2; 
  8.28  124D.95; and 136A.124, are repealed.