1.1                          A bill for an act 
  1.2             relating to higher education; extending sunset of 
  1.3             education telecommunications council; requiring 
  1.4             eligible institutions to provide certain data to the 
  1.5             Higher Education Services Office; making changes 
  1.6             relating to child care grants and the Minnesota 
  1.7             College Savings Plan; modifying certain education 
  1.8             benefits of public safety officers; repealing obsolete 
  1.9             rules; making changes to tuition reciprocity; 
  1.10            authorizing planning for applied doctoral degrees; 
  1.11            reducing appropriations; amending Minnesota Statutes 
  1.12            2002, sections 136A.08, by adding a subdivision; 
  1.13            136A.121, subdivision 2, by adding a subdivision; 
  1.14            136G.11, by adding a subdivision; Minnesota Statutes 
  1.15            2003 Supplement, sections 13.46, subdivision 2; 
  1.16            125B.21, subdivision 1; 136A.125, subdivision 2; 
  1.17            136G.11, subdivisions 1, 3; 136G.13, subdivision 1; 
  1.18            repealing Minnesota Statutes 2003 Supplement, section 
  1.19            136G.11, subdivision 2; Minnesota Rules, parts 
  1.20            4815.0100; 4815.0110; 4815.0120; 4815.0130; 4815.0140; 
  1.21            4815.0150; 4815.0160; 4830.8100; 4830.8110; 4830.8120; 
  1.22            4830.8130; 4830.8140; 4830.8150. 
  1.23  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.24  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.25     The sums in the columns marked "APPROPRIATIONS" are added 
  1.26  to, or, if shown in parentheses, are subtracted from the 
  1.27  appropriations in Laws 2003, chapter 133, or other law to the 
  1.28  specified agencies.  The appropriations are from the general 
  1.29  fund, or other named fund, to the agencies and for the purposes 
  1.30  specified.  The figure "2004" or "2005" means that the addition 
  1.31  to or subtraction from the appropriations listed under the 
  1.32  figure are for the fiscal year ending June 30, 2004, or June 30, 
  1.33  2005, respectively.  If only one figure is shown in the text for 
  1.34  the specified purpose, the addition or subtraction is for 2004 
  2.1   unless the context indicates another fiscal year. 
  2.2                           SUMMARY BY FUND
  2.3                             2004          2005           TOTAL
  2.4   General           ($   3,600,000) ($  3,684,000) ($  7,284,000)
  2.5                    SUMMARY BY AGENCY - ALL FUNDS 
  2.6                             2004          2005           TOTAL
  2.7   Higher Education 
  2.8   Services Office   ($   3,600,000) ($  3,684,000) ($  7,284,000) 
  2.9                                              APPROPRIATIONS 
  2.10                                         Available for the Year 
  2.11                                             Ending June 30 
  2.12                                            2004         2005 
  2.13  Sec. 2.  HIGHER EDUCATION SERVICES 
  2.14  OFFICE  
  2.15  Subdivision 1.  Total Appropriation 
  2.16  Changes                          ($  3,600,000)  ($  3,684,000)
  2.17  Subd. 2.  State Grants                                          
  2.18  Of the amount appropriated for the 
  2.19  state grant program in Laws 2003, 
  2.20  chapter 133, article 1, section 2, 
  2.21  subdivision 2, up to $400,000 may be 
  2.22  spent to upgrade the computer database 
  2.23  used to make projections for the state 
  2.24  grant program.  This amount is 
  2.25  available until June 30, 2007. 
  2.26  Subd. 3.  Interstate Tuition
  2.27  Reciprocity                         (3,600,000)     (3,600,000) 
  2.28  Beginning in fiscal year 2006, the base 
  2.29  appropriation for this program is 
  2.30  $2,000,000 annually.  
  2.31  Subd. 4.  Agency            
  2.32  Administration                           -0-           (84,000) 
  2.33     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.34  following final enactment.  
  2.35     Sec. 3.  Minnesota Statutes 2003 Supplement, section 13.46, 
  2.36  subdivision 2, is amended to read: 
  2.37     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
  2.38  a statute specifically provides a different classification, data 
  2.39  on individuals collected, maintained, used, or disseminated by 
  2.40  the welfare system is private data on individuals, and shall not 
  2.41  be disclosed except:  
  2.42     (1) according to section 13.05; 
  2.43     (2) according to court order; 
  2.44     (3) according to a statute specifically authorizing access 
  3.1   to the private data; 
  3.2      (4) to an agent of the welfare system, including a law 
  3.3   enforcement person, attorney, or investigator acting for it in 
  3.4   the investigation or prosecution of a criminal or civil 
  3.5   proceeding relating to the administration of a program; 
  3.6      (5) to personnel of the welfare system who require the data 
  3.7   to determine eligibility, amount of assistance, and the need to 
  3.8   provide services of additional programs to the individual; 
  3.9      (6) to administer federal funds or programs; 
  3.10     (7) between personnel of the welfare system working in the 
  3.11  same program; 
  3.12     (8) the amounts of cash public assistance and relief paid 
  3.13  to welfare recipients in this state, including their names, 
  3.14  Social Security numbers, income, addresses, and other data as 
  3.15  required, upon request by the Department of Revenue to 
  3.16  administer the property tax refund law, supplemental housing 
  3.17  allowance, early refund of refundable tax credits, and the 
  3.18  income tax.  "Refundable tax credits" means the dependent care 
  3.19  credit under section 290.067, the Minnesota working family 
  3.20  credit under section 290.0671, the property tax refund under 
  3.21  section 290A.04, and, if the required federal waiver or waivers 
  3.22  are granted, the federal earned income tax credit under section 
  3.23  32 of the Internal Revenue Code; 
  3.24     (9) between the Department of Human Services, the 
  3.25  Department of Education, and the Department of Economic Security 
  3.26  for the purpose of monitoring the eligibility of the data 
  3.27  subject for unemployment benefits, for any employment or 
  3.28  training program administered, supervised, or certified by that 
  3.29  agency, for the purpose of administering any rehabilitation 
  3.30  program or child care assistance program, whether alone or in 
  3.31  conjunction with the welfare system, or to monitor and evaluate 
  3.32  the Minnesota family investment program by exchanging data on 
  3.33  recipients and former recipients of food support, cash 
  3.34  assistance under chapter 256, 256D, 256J, or 256K, child care 
  3.35  assistance under chapter 119B, or medical programs under chapter 
  3.36  256B, 256D, or 256L; 
  4.1      (10) to appropriate parties in connection with an emergency 
  4.2   if knowledge of the information is necessary to protect the 
  4.3   health or safety of the individual or other individuals or 
  4.4   persons; 
  4.5      (11) data maintained by residential programs as defined in 
  4.6   section 245A.02 may be disclosed to the protection and advocacy 
  4.7   system established in this state according to Part C of Public 
  4.8   Law 98-527 to protect the legal and human rights of persons with 
  4.9   mental retardation or other related conditions who live in 
  4.10  residential facilities for these persons if the protection and 
  4.11  advocacy system receives a complaint by or on behalf of that 
  4.12  person and the person does not have a legal guardian or the 
  4.13  state or a designee of the state is the legal guardian of the 
  4.14  person; 
  4.15     (12) to the county medical examiner or the county coroner 
  4.16  for identifying or locating relatives or friends of a deceased 
  4.17  person; 
  4.18     (13) data on a child support obligor who makes payments to 
  4.19  the public agency may be disclosed to the Higher Education 
  4.20  Services Office to the extent necessary to determine eligibility 
  4.21  under section sections 136A.121, subdivision 2, clause (5), and 
  4.22  136A.125, subdivision 2, clause (8); 
  4.23     (14) participant Social Security numbers and names 
  4.24  collected by the telephone assistance program may be disclosed 
  4.25  to the Department of Revenue to conduct an electronic data match 
  4.26  with the property tax refund database to determine eligibility 
  4.27  under section 237.70, subdivision 4a; 
  4.28     (15) the current address of a Minnesota family investment 
  4.29  program participant may be disclosed to law enforcement officers 
  4.30  who provide the name of the participant and notify the agency 
  4.31  that: 
  4.32     (i) the participant: 
  4.33     (A) is a fugitive felon fleeing to avoid prosecution, or 
  4.34  custody or confinement after conviction, for a crime or attempt 
  4.35  to commit a crime that is a felony under the laws of the 
  4.36  jurisdiction from which the individual is fleeing; or 
  5.1      (B) is violating a condition of probation or parole imposed 
  5.2   under state or federal law; 
  5.3      (ii) the location or apprehension of the felon is within 
  5.4   the law enforcement officer's official duties; and 
  5.5      (iii)  the request is made in writing and in the proper 
  5.6   exercise of those duties; 
  5.7      (16) the current address of a recipient of general 
  5.8   assistance or general assistance medical care may be disclosed 
  5.9   to probation officers and corrections agents who are supervising 
  5.10  the recipient and to law enforcement officers who are 
  5.11  investigating the recipient in connection with a felony level 
  5.12  offense; 
  5.13     (17) information obtained from food support applicant or 
  5.14  recipient households may be disclosed to local, state, or 
  5.15  federal law enforcement officials, upon their written request, 
  5.16  for the purpose of investigating an alleged violation of the 
  5.17  Food Stamp Act, according to Code of Federal Regulations, title 
  5.18  7, section 272.1(c); 
  5.19     (18) the address, Social Security number, and, if 
  5.20  available, photograph of any member of a household receiving 
  5.21  food support shall be made available, on request, to a local, 
  5.22  state, or federal law enforcement officer if the officer 
  5.23  furnishes the agency with the name of the member and notifies 
  5.24  the agency that:  
  5.25     (i) the member: 
  5.26     (A) is fleeing to avoid prosecution, or custody or 
  5.27  confinement after conviction, for a crime or attempt to commit a 
  5.28  crime that is a felony in the jurisdiction the member is 
  5.29  fleeing; 
  5.30     (B) is violating a condition of probation or parole imposed 
  5.31  under state or federal law; or 
  5.32     (C) has information that is necessary for the officer to 
  5.33  conduct an official duty related to conduct described in subitem 
  5.34  (A) or (B); 
  5.35     (ii) locating or apprehending the member is within the 
  5.36  officer's official duties; and 
  6.1      (iii) the request is made in writing and in the proper 
  6.2   exercise of the officer's official duty; 
  6.3      (19) the current address of a recipient of Minnesota family 
  6.4   investment program, general assistance, general assistance 
  6.5   medical care, or food support may be disclosed to law 
  6.6   enforcement officers who, in writing, provide the name of the 
  6.7   recipient and notify the agency that the recipient is a person 
  6.8   required to register under section 243.166, but is not residing 
  6.9   at the address at which the recipient is registered under 
  6.10  section 243.166; 
  6.11     (20) certain information regarding child support obligors 
  6.12  who are in arrears may be made public according to section 
  6.13  518.575; 
  6.14     (21) data on child support payments made by a child support 
  6.15  obligor and data on the distribution of those payments excluding 
  6.16  identifying information on obligees may be disclosed to all 
  6.17  obligees to whom the obligor owes support, and data on the 
  6.18  enforcement actions undertaken by the public authority, the 
  6.19  status of those actions, and data on the income of the obligor 
  6.20  or obligee may be disclosed to the other party; 
  6.21     (22) data in the work reporting system may be disclosed 
  6.22  under section 256.998, subdivision 7; 
  6.23     (23) to the Department of Education for the purpose of 
  6.24  matching Department of Education student data with public 
  6.25  assistance data to determine students eligible for free and 
  6.26  reduced price meals, meal supplements, and free milk according 
  6.27  to United States Code, title 42, sections 1758, 1761, 1766, 
  6.28  1766a, 1772, and 1773; to allocate federal and state funds that 
  6.29  are distributed based on income of the student's family; and to 
  6.30  verify receipt of energy assistance for the telephone assistance 
  6.31  plan; 
  6.32     (24) the current address and telephone number of program 
  6.33  recipients and emergency contacts may be released to the 
  6.34  commissioner of health or a local board of health as defined in 
  6.35  section 145A.02, subdivision 2, when the commissioner or local 
  6.36  board of health has reason to believe that a program recipient 
  7.1   is a disease case, carrier, suspect case, or at risk of illness, 
  7.2   and the data are necessary to locate the person; 
  7.3      (25) to other state agencies, statewide systems, and 
  7.4   political subdivisions of this state, including the attorney 
  7.5   general, and agencies of other states, interstate information 
  7.6   networks, federal agencies, and other entities as required by 
  7.7   federal regulation or law for the administration of the child 
  7.8   support enforcement program; 
  7.9      (26) to personnel of public assistance programs as defined 
  7.10  in section 256.741, for access to the child support system 
  7.11  database for the purpose of administration, including monitoring 
  7.12  and evaluation of those public assistance programs; 
  7.13     (27) to monitor and evaluate the Minnesota family 
  7.14  investment program by exchanging data between the Departments of 
  7.15  Human Services and Education, on recipients and former 
  7.16  recipients of food support, cash assistance under chapter 256, 
  7.17  256D, 256J, or 256K, child care assistance under chapter 119B, 
  7.18  or medical programs under chapter 256B, 256D, or 256L; 
  7.19     (28) to evaluate child support program performance and to 
  7.20  identify and prevent fraud in the child support program by 
  7.21  exchanging data between the Department of Human Services, 
  7.22  Department of Revenue under section 270B.14, subdivision 1, 
  7.23  paragraphs (a) and (b), without regard to the limitation of use 
  7.24  in paragraph (c), Department of Health, Department of Economic 
  7.25  Security, and other state agencies as is reasonably necessary to 
  7.26  perform these functions; or 
  7.27     (29) counties operating child care assistance programs 
  7.28  under chapter 119B may disseminate data on program participants, 
  7.29  applicants, and providers to the commissioner of education. 
  7.30     (b) Information on persons who have been treated for drug 
  7.31  or alcohol abuse may only be disclosed according to the 
  7.32  requirements of Code of Federal Regulations, title 42, sections 
  7.33  2.1 to 2.67. 
  7.34     (c) Data provided to law enforcement agencies under 
  7.35  paragraph (a), clause (15), (16), (17), or (18), or paragraph 
  7.36  (b), are investigative data and are confidential or protected 
  8.1   nonpublic while the investigation is active.  The data are 
  8.2   private after the investigation becomes inactive under section 
  8.3   13.82, subdivision 5, paragraph (a) or (b). 
  8.4      (d) Mental health data shall be treated as provided in 
  8.5   subdivisions 7, 8, and 9, but is not subject to the access 
  8.6   provisions of subdivision 10, paragraph (b). 
  8.7      For the purposes of this subdivision, a request will be 
  8.8   deemed to be made in writing if made through a computer 
  8.9   interface system. 
  8.10     Sec. 4.  Minnesota Statutes 2003 Supplement, section 
  8.11  125B.21, subdivision 1, is amended to read: 
  8.12     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
  8.13  of the Minnesota Education Telecommunications Council 
  8.14  established in Laws 1993, First Special Session chapter 2, is 
  8.15  expanded to include representatives of elementary and secondary 
  8.16  education.  The membership shall consist of three 
  8.17  representatives from the University of Minnesota; three 
  8.18  representatives of the Board of Trustees for Minnesota State 
  8.19  Colleges and Universities; one representative of the higher 
  8.20  education services offices; one representative appointed by the 
  8.21  Private College Council; one representative selected by the 
  8.22  commissioner of administration; eight representatives selected 
  8.23  by the commissioner of education, at least one of which must 
  8.24  come from each of the six higher education telecommunication 
  8.25  regions; a representative from the Office of Technology; two 
  8.26  members each from the senate and the house of representatives 
  8.27  selected by the Subcommittee on Committees of the Committee on 
  8.28  Rules and Administration of the senate and the speaker of the 
  8.29  house, one member from each body must be a member of the 
  8.30  minority party; and three representatives of libraries, one 
  8.31  representing regional public libraries, one representing 
  8.32  multitype libraries, and one representing community libraries, 
  8.33  selected by the governor; and two members, one selected from and 
  8.34  representing the higher education regional coordinators and one 
  8.35  selected from and representing the kindergarten through grade 12 
  8.36  cluster regions.  The council shall serve as a forum to 
  9.1   establish and advocate for a statewide vision and plans for the 
  9.2   use of distance learning technologies, including: 
  9.3      (1) the coordination and collaboration of distance learning 
  9.4   opportunities; 
  9.5      (2) the implementation of the use of distance learning 
  9.6   technologies; 
  9.7      (3) the collaboration of distance learning users; 
  9.8      (4) the implementation of educational policy relating to 
  9.9   telecommunications; 
  9.10     (5) the exchange of ideas; 
  9.11     (6) the communications with state government and related 
  9.12  agencies and entities; 
  9.13     (7) the coordination of networks for postsecondary 
  9.14  campuses, kindergarten through grade 12 education, and regional 
  9.15  and community libraries; and 
  9.16     (8) the promotion of consistency of the operation of the 
  9.17  learning network with standards of an open system architecture. 
  9.18     The council expires June 30, 2004 2005. 
  9.19     Sec. 5.  Minnesota Statutes 2002, section 136A.08, is 
  9.20  amended by adding a subdivision to read: 
  9.21     Subd. 7.  [REPORTING.] The Higher Education Services Office 
  9.22  must annually submit a report to the committees in the house of 
  9.23  representatives and the senate with responsibility for higher 
  9.24  education on (1) participation in the tuition reciprocity 
  9.25  program by Minnesota students and students from other states 
  9.26  attending Minnesota postsecondary institutions; (2) reciprocity 
  9.27  and resident tuition rates at each institution; and (3) 
  9.28  interstate payments and obligations for each state participating 
  9.29  in the tuition reciprocity program in the prior year. 
  9.30     Sec. 6.  Minnesota Statutes 2002, section 136A.121, 
  9.31  subdivision 2, is amended to read: 
  9.32     Subd. 2.  [ELIGIBILITY FOR GRANTS.] An applicant is 
  9.33  eligible to be considered for a grant, regardless of the 
  9.34  applicant's sex, creed, race, color, national origin, or 
  9.35  ancestry, under sections 136A.095 to 136A.131 if the office 
  9.36  finds that the applicant: 
 10.1      (1) is a resident of the state of Minnesota; 
 10.2      (2) is a graduate of a secondary school or its equivalent, 
 10.3   or is 17 years of age or over, and has met all requirements for 
 10.4   admission as a student to an eligible college or technical 
 10.5   college of choice as defined in sections 136A.095 to 136A.131; 
 10.6      (3) has met the financial need criteria established in 
 10.7   Minnesota Rules; 
 10.8      (4) is not in default, as defined by the office, of any 
 10.9   federal or state student educational loan; and 
 10.10     (5) is not more than 30 days in arrears for any in 
 10.11  court-ordered child support payments owed to a that is collected 
 10.12  or enforced by the public agency authority responsible for child 
 10.13  support enforcement or, if the applicant is more than 30 days in 
 10.14  arrears in court-ordered child support that is collected or 
 10.15  enforced by the public authority responsible for child support 
 10.16  enforcement, but is complying with a written payment 
 10.17  agreement under section 518.553 or order for arrearages.  An 
 10.18  agreement must provide for a repayment of arrearages at no less 
 10.19  than 20 percent per month of the amount of the monthly child 
 10.20  support obligation or no less than $30 per month if there is no 
 10.21  current monthly child support obligation.  Compliance means that 
 10.22  payments are made by the payment date. 
 10.23     The director and the commissioner of human services shall 
 10.24  develop procedures to implement clause (5).  
 10.25     Sec. 7.  Minnesota Statutes 2002, section 136A.121, is 
 10.26  amended by adding a subdivision to read: 
 10.27     Subd. 18.  [DATA.] An eligible institution must provide 
 10.28  student enrollment and financial aid data to the office to 
 10.29  enable the office to carry out its responsibilities under 
 10.30  section 136A.01, subdivision 2, clause (6). 
 10.31     Sec. 8.  Minnesota Statutes 2003 Supplement, section 
 10.32  136A.125, subdivision 2, is amended to read: 
 10.33     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
 10.34  a child care grant if the applicant: 
 10.35     (1) is a resident of the state of Minnesota; 
 10.36     (2) has a child 12 years of age or younger, or 14 years of 
 11.1   age or younger who is handicapped as defined in section 125A.02, 
 11.2   and who is receiving or will receive care on a regular basis 
 11.3   from a licensed or legal, nonlicensed caregiver; 
 11.4      (3) is income eligible as determined by the office's 
 11.5   policies and rules, but is not a recipient of assistance from 
 11.6   the Minnesota family investment program; 
 11.7      (4) has not earned a baccalaureate degree and has been 
 11.8   enrolled full time less than eight semesters or the equivalent; 
 11.9      (5) is pursuing a nonsectarian program or course of study 
 11.10  that applies to an undergraduate degree, diploma, or 
 11.11  certificate; 
 11.12     (6) is enrolled at least half time in an eligible 
 11.13  institution; and 
 11.14     (7) is in good academic standing and making satisfactory 
 11.15  academic progress; and 
 11.16     (8) is not more than 30 days in arrears in court-ordered 
 11.17  child support that is collected or enforced by the public 
 11.18  authority responsible for child support enforcement or, if the 
 11.19  applicant is more than 30 days in arrears in court-ordered child 
 11.20  support that is collected or enforced by the public authority 
 11.21  responsible for child support enforcement, but is complying with 
 11.22  a written payment agreement under section 518.553 or order for 
 11.23  arrearages.  
 11.24     Sec. 9.  Minnesota Statutes 2003 Supplement, section 
 11.25  136G.11, subdivision 1, is amended to read: 
 11.26     Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By June 30 
 11.27  of each year, a state matching grant must be added to each 
 11.28  account established under the program if the following 
 11.29  conditions are met: 
 11.30     (1) the contributor applies, in writing in a form 
 11.31  prescribed by the director, for a matching grant; 
 11.32     (2) a minimum contribution of $200 was made during the 
 11.33  preceding calendar year; and 
 11.34     (3) the beneficiary's family meets Minnesota College 
 11.35  Savings Plan residency requirements; and 
 11.36     (4) the family income of the beneficiary did not exceed 
 12.1   $80,000. 
 12.2      Sec. 10.  Minnesota Statutes 2003 Supplement, section 
 12.3   136G.11, subdivision 3, is amended to read: 
 12.4      Subd. 3.  [RESIDENCY REQUIREMENT.] (a) If the beneficiary 
 12.5   is under age 25, the beneficiary's parents or legal guardians 
 12.6   must be Minnesota residents to qualify for a matching grant.  If 
 12.7   the beneficiary is age 25 or older, the beneficiary must be a 
 12.8   Minnesota resident to qualify for a matching grant. 
 12.9      (b) To meet the residency requirements, the parent or legal 
 12.10  guardian of beneficiaries under age 25 must have filed a 
 12.11  Minnesota individual income tax return as a Minnesota resident 
 12.12  and claimed the beneficiary as a dependent on the parent or 
 12.13  legal guardian's federal tax return for the calendar year in 
 12.14  which contributions were made.  If the beneficiary's parents are 
 12.15  divorced, the parent or legal guardian claiming the beneficiary 
 12.16  as a dependent on the federal individual income tax return must 
 12.17  be a Minnesota resident.  For beneficiaries age 25 or older, the 
 12.18  beneficiary, and a spouse, if any, must have filed a Minnesota 
 12.19  and a federal individual income tax return as a Minnesota 
 12.20  resident for the calendar year in which contributions were made. 
 12.21     (c) A parent of beneficiaries under age 25 and 
 12.22  beneficiaries age 25 or older who did not reside in Minnesota in 
 12.23  the calendar year in which contributions were made are not 
 12.24  eligible for a matching grant. 
 12.25     Sec. 11.  Minnesota Statutes 2002, section 136G.11, is 
 12.26  amended by adding a subdivision to read: 
 12.27     Subd. 3a.  [FAMILY INCOME.] (a) For purposes of this 
 12.28  section, "family income" means: 
 12.29     (1) if the beneficiary is under age 25, the combined 
 12.30  adjusted gross income of the beneficiary's parents or legal 
 12.31  guardians as reported on the federal tax return or returns for 
 12.32  the calendar year in which contributions were made.  If the 
 12.33  beneficiary's parents or legal guardians are divorced, the 
 12.34  income of the parent claiming the beneficiary as a dependent on 
 12.35  the federal individual income tax return and the income of that 
 12.36  parent's spouse, if any, is used to determine family income; or 
 13.1      (2) if the beneficiary is age 25 or older, the combined 
 13.2   adjusted gross income of the beneficiary and spouse, if any. 
 13.3      (b) For a parent or legal guardian of beneficiaries under 
 13.4   age 25 and for beneficiaries age 25 or older who resided in 
 13.5   Minnesota and filed a federal individual income tax return, the 
 13.6   matching grant must be based on family income from the calendar 
 13.7   year in which contributions were made. 
 13.8      Sec. 12.  Minnesota Statutes 2003 Supplement, section 
 13.9   136G.13, subdivision 1, is amended to read: 
 13.10     Subdivision 1.  [QUALIFIED DISTRIBUTION METHODS.] (a) 
 13.11  Qualified distributions may be made: 
 13.12     (1) directly to participating eligible educational 
 13.13  institutions on behalf of the beneficiary; or 
 13.14     (2) in the form of a check payable to both the beneficiary 
 13.15  and the eligible educational institution; or 
 13.16     (3) to an account owner. 
 13.17     (b) Qualified distributions must be withdrawn 
 13.18  proportionally from contributions and earnings in an account 
 13.19  owner's account on the date of distribution as provided in 
 13.20  section 529 of the Internal Revenue Code. 
 13.21     Sec. 13.  [DOCTORAL DEGREES; REPORT.] 
 13.22     Notwithstanding Laws 2003, chapter 133, article 1, section 
 13.23  3, subdivision 2, or any other law to the contrary, a Minnesota 
 13.24  state university may prepare and submit to the legislature a 
 13.25  report on a plan to develop and offer applied doctoral level 
 13.26  programs or degrees.  The report must include a cost and revenue 
 13.27  analysis of offering doctoral programs with a detailed account 
 13.28  of how the costs will be funded.  If the institutions choose to 
 13.29  prepare the report, the report must be submitted by January 15, 
 13.30  2007. 
 13.31     Sec. 14.  [TUITION RECIPROCITY; SOUTH DAKOTA.] 
 13.32     By December 1, 2004, the Higher Education Services Office 
 13.33  must renegotiate the tuition reciprocity agreement with the 
 13.34  South Dakota Board of Regents to provide for interstate payments 
 13.35  that (1) conform to the statutory requirements under Minnesota 
 13.36  and South Dakota law and (2) treat interstate reimbursements for 
 14.1   Minnesota or South Dakota comparable to the treatment in 
 14.2   Minnesota's reciprocity agreements with Wisconsin or North 
 14.3   Dakota.  The payment of any obligations under the South Dakota 
 14.4   tuition reciprocity agreement must begin with fiscal year 2006. 
 14.5      Sec. 15.  [REPEALER.] 
 14.6      (a) Minnesota Statutes 2003 Supplement, section 136G.11, 
 14.7   subdivision 2, is repealed. 
 14.8      (b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120; 
 14.9   4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100; 
 14.10  4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are 
 14.11  repealed.