1.1 	A bill for an act
1.2 	relating to higher education; amending higher education provisions; establishing 
1.3 	and modifying certain grants and programs; making technical changes; regulating 
1.4 	certain activities and practices; establishing and amending certain scholarships; 
1.5 	providing a tuition guarantee; regulating board member and trustee nominations 
1.6 	and elections; requiring a certificate of need; defining terms; requiring a report; 
1.7 	appropriating money;amending Minnesota Statutes 2008, sections 135A.08, 
1.8 	subdivision 1; 135A.25, subdivision 4; 136A.06; 136A.08, subdivision 1, by 
1.9 	adding a subdivision; 136A.101, subdivision 4; 136A.121, subdivisions 5, 6, 9; 
1.10 	136A.1701, subdivision 10; 136F.02, subdivision 1; 136F.04; 136F.045; 136F.46, 
1.11 	subdivision 3; 137.0246, subdivision 2; 137.025, subdivision 1; 299A.45, 
1.12 	subdivision 4; 340A.404, subdivision 4a; proposing coding for new law in 
1.13 	Minnesota Statutes, chapters 135A; 136A; 136F; 137; repealing Minnesota 
1.14 	Statutes 2008, sections 136A.127; 136F.03; 137.0245.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	HIGHER EDUCATION APPROPRIATIONS

1.18	Section 1. SUMMARY OF APPROPRIATIONS.
 	
1.19 		Subdivision 1.Summary by fund. The amounts shown in this section summarize 
1.20 	direct appropriations, by fund, made in this article.

1.21			2010
		2011
		Total
	
1.22	General
	$
	1,388,543,000
	$
	1,383,285,000
	$
	2,771,828,000
	
1.23	Health Care Access
		2,157,000
		2,157,000
		4,314,000
	
1.24	Federal Stabilization
		180,920,000
		180,920,000
		361,840,000
	
1.25	Total
	$
	1,571,620,000
	$
	1,566,362,000
	$
	3,137,982,000
	
1.26 		Subd. 2.Summary by agency - all funds. The amounts shown in this subdivision 
1.27 	summarize direct appropriations, by agency, made in this article.

2.1			2010
		2011
		Total
	
2.2
2.3	Minnesota Office of Higher 
Education
	$
	195,358,000
	$
	190,049,000
	$
	385,407,000
	
2.4
2.5
2.6	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		665,883,000
		665,883,000
		1,331,766,000
	
2.7
2.8	Board of Regents of the 
University of Minnesota
		709,079,000
		709,079,000
		1,418,158,000
	
2.9	Mayo Medical Foundation
		1,300,000
		1,351,000
		2,651,000
	
2.10	Total
	$
	1,571,620,000
	$
	1,566,362,000
	$
	3,137,982,000

2.11	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.12 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.13 	agencies and for the purposes specified in this article. The appropriations are from the 
2.14 	general fund, or another named fund, and are available for the fiscal years indicated 
2.15 	for each purpose. The figures "2010" and "2011" used in this article mean that the 
2.16 	appropriations listed under them are available for the fiscal year ending June 30, 2010, or 
2.17 	June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal 
2.18 	year 2011. "The biennium" is fiscal years 2010 and 2011.

2.19				APPROPRIATIONS
	
2.20				Available for the Year
	
2.21				Ending June 30
	
2.22					2010
		2011

2.23
2.24	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.25	Subdivision 1.Total Appropriation
 	$
	195,358,000
	$
	190,049,000
	
2.26 	The amounts that may be spent for each 
2.27 	purpose are specified in the following 
2.28 	subdivisions.

2.29	Subd. 2.State Grants
 		149,721,000
		144,618,000
	
2.30 	If the appropriation in this subdivision for 
2.31 	either year is insufficient, the appropriation 
2.32 	for the other year is available for it.
2.33 	The legislature intends that the Office of 
2.34 	Higher Education make full grant awards in 
2.35 	each year of the biennium.
3.1 	For the biennium, the tuition maximum for 
3.2 	students in four-year programs is $9,938 in 
3.3 	each year.
3.4 	This appropriation sets the living and 
3.5 	miscellaneous expense allowance at $6,900 
3.6 	each year.

3.7	Subd. 3.Safety Officers' Survivors
 		100,000
		100,000
	
3.8 	This appropriation is to provide educational 
3.9 	benefits under Minnesota Statutes, section 
3.10 	299A.45, to dependent children under age 23 
3.11 	and to the spouses of public safety officers 
3.12 	killed in the line of duty.
3.13 	If the appropriation in this subdivision for 
3.14 	either year is insufficient, the appropriation 
3.15 	for the other year is available for it.

3.16	Subd. 4.Interstate Tuition Reciprocity
 		2,750,000
		2,750,000
	
3.17 	If the appropriation in this subdivision for 
3.18 	either year is insufficient, the appropriation 
3.19 	for the other year is available to meet 
3.20 	reciprocity contract obligations.

3.21	Subd. 5.State Work Study
 		15,500,000
		15,500,000

3.22	Subd. 6.Child Care Grants
 		6,675,000
		6,675,000

3.23	Subd. 7.Indian Scholarships
 		2,375,000
		2,375,000
	
3.24 	The director of the Minnesota Office of 
3.25 	Higher Education must contract with at least 
3.26 	one knowledgeable person residing in or 
3.27 	near the city of Bemidji to assist students 
3.28 	with the scholarships under Minnesota 
3.29 	Statutes, section 136A.126, and with other 
3.30 	information about financial aid for which 
3.31 	the students may be eligible. Bemidji State 
3.32 	University must provide office space at 
3.33 	no cost to the Minnesota Office of Higher 
4.1 	Education for purposes of administering the 
4.2 	American Indian scholarship program under 
4.3 	Minnesota Statutes, section 136A.126.

4.4	Subd. 8.Minitex
 		5,631,000
		5,631,000

4.5	Subd. 9.MnLINK Gateway
 		400,000
		400,000

4.6	Subd. 10.Learning Network of Minnesota
 		4,800,000
		4,800,000

4.7	Subd. 11.Minnesota College Savings Plan
 		700,000
		700,000

4.8	Subd. 12.Midwest Higher Education Compact
 		95,000
		95,000

4.9	Subd. 13.Other Small Programs
 		853,000
		853,000
	
4.10 	This appropriation includes funding for 
4.11 	student and parent information, information 
4.12 	for college attendance, and minority 
4.13 	education programs.

4.14	Subd. 14.TEACH Program
 		300,000
		300,000
	
4.15 	For the teacher education and compensation 
4.16 	helps (TEACH) and the Minnesota early 
4.17 	childhood teacher retention programs in 
4.18 	Minnesota Statutes, section 136A.126. This 
4.19 	is a onetime appropriation.

4.20	Subd. 15.Power of You
 		2,000,000
		2,000,000
	
4.21 	For transfer to MnSCU for the existing 
4.22 	Power of You program and for pilot sites 
4.23 	under article 2, section 30.

4.24
4.25	Subd. 16.Technical and Community College 
Emergency Grants
 		100,000
		100,000
	
4.26 	For transfer to the financial aid offices 
4.27 	at each of the colleges of the Minnesota 
4.28 	State Colleges and Universities to provide 
4.29 	emergency aid grants to technical and 
4.30 	community college students who are 
4.31 	experiencing extraordinary economic 
4.32 	circumstances that may result in the students 
5.1 	dropping out of school without completing 
5.2 	the term or their program.

5.3	Subd. 17.Veterinary Loan Forgiveness
 		225,000
			
5.4 	For the large animal loan forgiveness 
5.5 	program under Minnesota Statutes, section 
5.6 	136A.1795. This appropriation is available 
5.7 	until expended.

5.8	Subd. 18.Agency Administration
 		2,685,000
		2,685,000

5.9	Subd. 19.Balances Forward
 					
5.10 	A balance in the first year under this section 
5.11 	does not cancel, but is available for the 
5.12 	second year.

5.13	Subd. 20.Transfers
 					
5.14 	The Minnesota Office of Higher Education 
5.15 	may transfer unencumbered balances from 
5.16 	the appropriations in subdivisions 2 to 7 
5.17 	and 11 to the state grant appropriation, the 
5.18 	safety officer survivors appropriation, the 
5.19 	interstate tuition reciprocity appropriation, 
5.20 	the Minnesota college savings plan 
5.21 	appropriation, the child care appropriation, 
5.22 	and the state work study appropriation.

5.23
5.24	Subd. 21.United Family Medicine Residency 
Program
 		448,000
		467,000
	
5.25 	For a grant to the united family medicine 
5.26 	residency program. This appropriation 
5.27 	must be used to support up to 18 resident 
5.28 	physicians each year in family practice at 
5.29 	united family medicine residency programs 
5.30 	and must prepare doctors to practice family 
5.31 	care medicine in underserved rural and 
5.32 	urban areas of the state. At least seven 
5.33 	of the resident physicians must be at a 
5.34 	publicly owned rural hospital that has an 
6.1 	attached nursing home. The legislature 
6.2 	intends for this program to improve health 
6.3 	care in underserved communities, provide 
6.4 	affordable access to appropriate medical 
6.5 	care, and manage the treatment of patients in 
6.6 	a more cost-effective manner.

6.7	Subd. 22.TANF Work-Study
 					
6.8 	Notwithstanding any rule to the contrary, 
6.9 	work-study jobs funded by a TANF 
6.10 	appropriation do not require employer 
6.11 	matching funds.

6.12	Subd. 23.Reporting
 					
6.13 	By November 1 and February 15, the 
6.14 	Minnesota Office of Higher Education 
6.15 	must provide updated state grant spending 
6.16 	projections, taking into account the most 
6.17 	current and projected enrollment and tuition 
6.18 	and fee information, economic conditions, 
6.19 	and other relevant factors. Before submitting 
6.20 	state grant spending projections, the office 
6.21 	must meet and consult with representatives of 
6.22 	public and private postsecondary education, 
6.23 	the Department of Finance, the governor's 
6.24 	office, legislative staff, and financial aid 
6.25 	administrators.

6.26	Subd. 24.Accreditation
 					
6.27 	The office must work with small institutions 
6.28 	to identify cost-effective methods to achieve 
6.29 	accreditation necessary to be an eligible 
6.30 	institution for state and federal financial aid.

6.31
6.32
6.33	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

6.34	Subdivision 1.Total Appropriation
 	$
	665,883,000
	$
	665,883,000
	
7.1 	The amounts that may be spent for each 
7.2 	purpose are specified in the following 
7.3 	subdivisions.

7.4
7.5	Subd. 2.Central Office and Shared Services 
Unit
 		47,328,000
		47,328,000
	
7.6 	For the Office of the Chancellor and the 
7.7 	Shared Services Division.
7.8 	For fiscal years 2012 and 2013 the base for 
7.9 	the Central Office and Shared Services Unit 
7.10 	is $44,823,000 each year.

7.11	Subd. 3.Operations and Maintenance
 		553,366,000
		553,366,000
	
7.12 	(a) It is the intention of the legislature to 
7.13 	increase the amount of funding distributed 
7.14 	to colleges and universities through the 
7.15 	allocation model to provide direct support of 
7.16 	instruction and related functions necessary 
7.17 	to protect the core mission of educating 
7.18 	students.
7.19 	(b) Allocations to campuses from 
7.20 	appropriations under this section must 
7.21 	not be reduced below the allocations for 
7.22 	the biennium ending June 30, 2009, after 
7.23 	deducting any amount unallotted in the 
7.24 	biennium.
7.25 	(c) The Board of Trustees shall submit 
7.26 	expenditure reduction plans by March 15, 
7.27 	2010, to the committees of the legislature 
7.28 	with responsibility for higher education 
7.29 	finance to achieve the 2012-2013 base 
7.30 	established in this section at the central 
7.31 	office and at each institution. The plan 
7.32 	submitted by the board must be based on 
7.33 	plans developed at each institution detailing 
7.34 	reductions to achieve lower base allocations 
8.1 	at that institution. Each plan must focus on 
8.2 	protecting direct instruction while reducing 
8.3 	peripheral programs and services that may 
8.4 	benefit students and institutions but are 
8.5 	not necessary to the education of students 
8.6 	seeking certificates, diplomas, and degrees.
8.7 	(d) During the biennium ending  June 30, 
8.8 	2011, except for positions that are essential to 
8.9 	the daily operation of an institution, the board 
8.10 	must not fill administrative and managerial 
8.11 	vacancies, existing on the effective date of 
8.12 	this section, in the central office or at any 
8.13 	of the campuses of the Minnesota State 
8.14 	Colleges and Universities or use a search firm 
8.15 	for any hiring. The board must not authorize 
8.16 	any increase in salaries for administrative and 
8.17 	managerial positions in the Minnesota State 
8.18 	Colleges and Universities in the biennium 
8.19 	ending June 30, 2011. The board must not 
8.20 	charge any of the institutions for reductions 
8.21 	under this section to the central office.
8.22 	(e) For the biennium ending June 30, 2011, 
8.23 	the board must not reserve or expend 
8.24 	appropriations under this subdivision for 
8.25 	competitive salaries, awards of excellence, 
8.26 	campus and technology initiatives outside the 
8.27 	allocation model, or other board or chancellor 
8.28 	initiatives. All amounts saved under this 
8.29 	paragraph must be added to the allocation 
8.30 	model and distributed to the institutions.
8.31 	(f) For the biennium ending June 30, 
8.32 	2011, expenditures under this subdivision 
8.33 	must not exceed $40,000,000 for 
8.34 	technology initiatives, including technology 
8.35 	infrastructure improvements, and $5,000,000 
9.1 	for initiatives to recruit and retain 
9.2 	traditionally underrepresented students. All 
9.3 	amounts saved under this paragraph must be 
9.4 	added to the allocation model and distributed 
9.5 	to the institutions.
9.6 	(g) $40,000 each year is for the Cook 
9.7 	County Higher Education Board to provide 
9.8 	educational programs and academic support 
9.9 	services.
9.10 	(h) $1,000,000 each year is for the Northeast 
9.11 	Minnesota Higher Education District and 
9.12 	high schools in its area. Students from area 
9.13 	high schools may also access the facilities 
9.14 	and faculty of the Northeast Minnesota 
9.15 	Higher Education District for state-of-the-art 
9.16 	technical education opportunities, including 
9.17 	MnSCU's 2+2 Pathways initiative.
9.18 	(i) $225,000 each year is to enhance eFolio 
9.19 	Minnesota and for a center to provide on-site 
9.20 	and Internet-based support and technical 
9.21 	assistance to users of the state's eFolio 
9.22 	Minnesota system to promote workforce and 
9.23 	economic development and to enable access 
9.24 	to workforce information generated through 
9.25 	the eFolio Minnesota system.
9.26 	(j) For fiscal years 2012 and 2013 the base for 
9.27 	operations and maintenance is $609,631,000 
9.28 	each year.

9.29	Subd. 4.Federal Stimulus Appropriation
 		65,189,000
		65,189,000
	
9.30 	(a) This appropriation is from the fiscal 
9.31 	stabilization account in the federal fund and 
9.32 	may be used for modernization, renovation, 
9.33 	or repair of facilities that are primarily used 
9.34 	for instruction, research, or student housing 
9.35 	but may not be used for maintenance of 
10.1 	systems, equipment, or facilities. Amounts 
10.2 	in this subdivision must not be allocated 
10.3 	to modernization, renovation, or repair of 
10.4 	stadiums or other facilities primarily used 
10.5 	for athletic contests or exhibitions or other 
10.6 	events for which admission is charged to the 
10.7 	general public and must not be allocated to 
10.8 	any facility used for sectarian instruction or 
10.9 	religious worship or in which a substantial 
10.10 	portion of the functions of the facilities are 
10.11 	subsumed in a religious mission. No amount 
10.12 	from this appropriation may be allocated to 
10.13 	increase endowment funds.
10.14 	(b) Appropriations under this subdivision 
10.15 	must be used as a bridge for budget 
10.16 	reductions in the biennium ending June 30, 
10.17 	2013, and may be used to retain faculty 
10.18 	and staff jobs, to provide severance and for 
10.19 	early retirement incentives, and to mitigate 
10.20 	the rising costs of attendance through 
10.21 	minimizing tuition increases and the support 
10.22 	of student employment opportunities.
10.23 	(c) The legislature intends that the 
10.24 	tuition increase for a Minnesota resident 
10.25 	undergraduate student in the Minnesota State 
10.26 	Colleges and Universities, must not exceed 
10.27 	five percent per year for the biennium ending 
10.28 	June 30, 2011. Federal stimulus money 
10.29 	under this subdivision must be used to buy 
10.30 	down the tuition increase to no more than 
10.31 	two percent per year for these students.
10.32 	(d) An additional $3,469,000 is appropriated 
10.33 	in fiscal year 2009 from the fiscal stabilization 
10.34 	account in the federal fund.

10.35	Subd. 5.System Improvements
 					
11.1 	To increase efficiencies and equity for 
11.2 	faculty and staff, the Board of Trustees is 
11.3 	encouraged to place a priority on identifying 
11.4 	and implementing measures to improve 
11.5 	the human resources system used by the 
11.6 	Minnesota State Colleges and Universities. 
11.7 	One of the goals of improving the human 
11.8 	resources system is to provide seamless 
11.9 	information on faculty and employees to 
11.10 	facilitate transfers between institutions.

11.11
11.12	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

11.13	Subdivision 1.Total Appropriation
 	$
	709,079,000
	$
	709,079,000
	
11.14 	The amounts that may be spent for each 
11.15 	purpose are specified in the following 
11.16 	subdivisions.

11.17	Subd. 2.Operations and Maintenance
 		517,623,000
		517,623,000
	
11.18 	(a) In the biennium ending June 30, 2011, the 
11.19 	board must not use appropriations under this 
11.20 	section to create or fund new administrative 
11.21 	positions at the University of Minnesota or to 
11.22 	increase salaries for administrative positions.
11.23 	(b) Appropriations under this subdivision 
11.24 	may be used for a new scholarship under 
11.25 	Minnesota Statutes, section 137.0225, to 
11.26 	complement the University's Founders 
11.27 	scholarship.
11.28 	(c) This appropriation includes amounts for 
11.29 	an Ojibwe Indian language program on the 
11.30 	Duluth campus.
11.31 	(d) This appropriation includes money for the 
11.32 	Dakota language teacher training immersion 
11.33 	program on the Twin Cities campus to 
12.1 	prepare teachers to teach in Dakota language 
12.2 	immersion programs. 
12.3 	(e) This appropriation includes $600,000 
12.4 	each year for the Veterinary Diagnostic 
12.5 	Laboratory.
12.6 	(f) For fiscal years 2012 and 2013, the 
12.7 	base for operations and maintenance is 
12.8 	$598,124,000 each year.

12.9	Subd. 3.Health Care Access Fund
 		2,157,000
		2,157,000
	
12.10 	This appropriation is from the health care 
12.11 	access fund and is for primary care education 
12.12 	initiatives.

12.13	Subd. 4.Special Appropriation
 		73,468,000
		73,468,000

12.14	(a) Agriculture and Extension Service
		52,255,000
		52,255,000
	
12.15 	(1) This appropriation is for agricultural 
12.16 	research and extension activities as provided 
12.17 	in this paragraph.
12.18 	(2) The Agricultural Experiment Stations 
12.19 	and Minnesota Extension Service must 
12.20 	convene agricultural advisory groups to 
12.21 	focus research, education, and extension 
12.22 	activities on producer needs and implement 
12.23 	an outreach strategy that more effectively 
12.24 	and rapidly transfers research results and best 
12.25 	practices to producers throughout the state.
12.26 	(3) This appropriation includes funding 
12.27 	for research efforts that demonstrate a 
12.28 	renewed emphasis on the needs of the state's 
12.29 	production agriculture community. The 
12.30 	following areas should be prioritized and 
12.31 	carried out in consultation with Minnesota 
12.32 	producer organizations:
12.33 	(i) vegetable crop research;
13.1 	(ii) fertilizer and soil fertility research and 
13.2 	development;
13.3 	(iii) soil, groundwater, and surface water 
13.4 	conservation practices and contaminant 
13.5 	reduction research;
13.6 	(iv) discovering and developing plant 
13.7 	varieties that use nutrients more efficiently;
13.8 	(v) breeding and development of turf seed 
13.9 	and other biomass resources in all three 
13.10 	Minnesota biomes;
13.11 	(vi) development of new disease-resistant 
13.12 	and pest-resistant varieties of turf and 
13.13 	agronomic crops;
13.14 	(vii) utilizing plant and livestock cells to treat 
13.15 	and cure human diseases;
13.16 	(viii) the development of dairy coproducts;
13.17 	(ix) a rapid agricultural response fund for 
13.18 	current or emerging animal, plant, and insect 
13.19 	problems affecting production or food safety;
13.20 	(x) crop pest and animal disease research; 
13.21 	(xi) developing animal agriculture that is 
13.22 	capable of sustainably feeding the world;
13.23 	(xii) consumer food safety education and 
13.24 	outreach; and
13.25 	(xiii) programs to meet the research and 
13.26 	outreach needs of sustainable and organic 
13.27 	livestock and crop farmers.
13.28 	(4) This appropriation includes funding for 
13.29 	research and outreach on the production of 
13.30 	renewable energy from Minnesota biomass 
13.31 	resources. The following areas should be 
13.32 	prioritized and carried out in consultation 
14.1 	with Minnesota producer and bioenergy 
14.2 	organizations:
14.3 	(i) biofuel and other energy production from 
14.4 	perennial crops, small grains, row crops, 
14.5 	and forestry products in conjunction with 
14.6 	the Natural Resources Research Institute 
14.7 	(NRRI);
14.8 	(ii) alternative bioenergy crops and cropping 
14.9 	systems; and
14.10 	(iii) biofuel coproducts used for livestock 
14.11 	feed.
14.12 	(5) This appropriation includes funding 
14.13 	for analysis of livestock facility siting and 
14.14 	regulatory models from other states and 
14.15 	countries and the following aspects of 
14.16 	ethanol production in Minnesota:
14.17 	(i) water use trends as compared to other 
14.18 	industries and activities;
14.19 	(ii) the carbon balance of ethanol production;
14.20 	(iii) the effect of ethanol blending 
14.21 	requirements on transportation fuel prices; 
14.22 	and
14.23 	(iv) the economic impacts of ethanol 
14.24 	production and use including such measures 
14.25 	as employment, economic output, and state 
14.26 	and local tax revenues.
14.27 	(6) This appropriation may be used to 
14.28 	establish and maintain a statewide organic 
14.29 	research and education initiative, secure 
14.30 	a facility and retain current faculty levels 
14.31 	for poultry research currently conducted at 
14.32 	UMore Park, develop and implement a dairy 
14.33 	producer continuing education program 
15.1 	and for scoping a new dairy research and 
15.2 	teaching facility.
15.3 	(7) By February 1, 2011, the Board of 
15.4 	Regents must submit a report to the 
15.5 	legislative committees with responsibility 
15.6 	for agriculture and higher education finance 
15.7 	on the status and outcomes of research and 
15.8 	initiatives funded in this section.

15.9	(b) Health Sciences
		5,275,000
		5,275,000
	
15.10 	$346,000 each year is to support up to 12 
15.11 	resident physicians each year in the St. 
15.12 	Cloud Hospital family practice residency 
15.13 	program. The program must prepare doctors 
15.14 	to practice primary care medicine in the rural 
15.15 	areas of the state. The legislature intends for 
15.16 	this program to improve health care in rural 
15.17 	communities, provide affordable access to 
15.18 	appropriate medical care, and manage the 
15.19 	treatment of patients in a more cost-effective 
15.20 	manner.
15.21 	The remainder of this appropriation is for 
15.22 	the rural physicians associates program, the 
15.23 	Veterinary Diagnostic Laboratory, health 
15.24 	sciences research, dental care, and the 
15.25 	Biomedical Engineering Center.

15.26	(c) Institute of Technology
		1,387,000
		1,387,000
	
15.27 	For the Geological Survey and the talented 
15.28 	youth mathematics program.

15.29	(d) System Specials
		6,551,000
		6,551,000
	
15.30 	For general research, student loans matching 
15.31 	money, industrial relations education, 
15.32 	Natural Resources Research Institute, Center 
15.33 	for Urban and Regional Affairs, and the Bell 
15.34 	Museum of Natural History.

16.1
16.2	(e) University of Minnesota and Mayo 
Foundation Partnership
		8,000,000
		8,000,000
	
16.3 	For the direct and indirect expenses of the 
16.4 	collaborative research partnership between 
16.5 	the University of Minnesota and the Mayo 
16.6 	Foundation for research in biotechnology 
16.7 	and medical genomics. This appropriation 
16.8 	is available until expended. All parties to 
16.9 	the partnership and chairs of the senate 
16.10 	and house of representatives committees 
16.11 	responsible for higher education finance 
16.12 	must be consulted before the Board of 
16.13 	Regents reduces the amount allocated to the 
16.14 	partnership under this paragraph during the 
16.15 	biennium ending June 30, 2011. An annual 
16.16 	report on the expenditure of these funds must 
16.17 	be submitted to the governor and the chairs 
16.18 	of the senate and house of representatives 
16.19 	committees responsible for higher education 
16.20 	and economic development by June 30 of 
16.21 	each fiscal year.

16.22	Subd. 5.Federal Stimulus Appropriation
 		115,731,000
		115,731,000
	
16.23 	(a) This appropriation is from the fiscal 
16.24 	stabilization account in the federal fund and 
16.25 	may be used for modernization, renovation, 
16.26 	or repair of facilities that are primarily used 
16.27 	for instruction, research, or student housing 
16.28 	but may not be used for maintenance of 
16.29 	systems, equipment, or facilities. Amounts 
16.30 	in this subdivision must not be allocated 
16.31 	to modernization, renovation, or repair of 
16.32 	stadiums or other facilities primarily used 
16.33 	for athletic contests or exhibitions or other 
16.34 	events for which admission is charged to the 
16.35 	general public and must not be allocated to 
17.1 	any facility used for sectarian instruction or 
17.2 	religious worship or in which a substantial 
17.3 	portion of the functions of the facilities are 
17.4 	subsumed in a religious mission. No amount 
17.5 	from this appropriation may be allocated to 
17.6 	increase endowment funds.
17.7 	(b) Appropriations under this subdivision 
17.8 	must be used as a bridge for budget 
17.9 	reductions in the biennium ending June 30, 
17.10 	2013, and may be used to retain faculty and 
17.11 	staff jobs, to provide severance and for early 
17.12 	retirement incentives and to mitigate rising 
17.13 	costs of attendance through minimizing 
17.14 	tuition increases and support of student 
17.15 	employment opportunities.
17.16 	(c) The legislature intends that the net 
17.17 	tuition increase for a Minnesota resident 
17.18 	undergraduate student at the University of 
17.19 	Minnesota must not exceed $300 per year 
17.20 	for the biennium ending June 30, 2011. 
17.21 	Appropriations of federal stimulus money 
17.22 	under this subdivision must be used to 
17.23 	accomplish this goal.
17.24 	(d) $400,000 of this appropriation in fiscal 
17.25 	year 2010 is for a grant to the Minnesota 
17.26 	Wildlife Rehabilitation Center for their 
17.27 	uncompensated expenses. This is a onetime 
17.28 	appropriation.
17.29 	(e) An additional $27,080,000 is appropriated 
17.30 	in fiscal year 2009 from the stabilization 
17.31 	account in the federal fund.

17.32	Subd. 6.Academic Health Center
 					
17.33 	The appropriation for Academic Health 
17.34 	Center funding under Minnesota Statutes, 
17.35 	section 297F.10, is $22,250,000 each year.

18.1	Subd. 7.NRRI Research
 					
18.2 	Notwithstanding Minnesota Statutes, section 
18.3 	137.022, subdivision 4, the board may 
18.4 	use up to $150,000 of the income credited 
18.5 	to the permanent university fund from 
18.6 	royalties from mining under state mineral 
18.7 	leases to fund research at the Coleraine 
18.8 	Minerals Research Laboratory of the Natural 
18.9 	Resources Research Institute by taconite 
18.10 	engineers who have been laid off by the 
18.11 	mining industry.

18.12	Subd. 8.Enrollment Increases
 					
18.13 	Over the biennium ending June 30, 2011, 
18.14 	the Board of Regents must increase 
18.15 	the enrollment of Minnesota resident 
18.16 	freshmen with the goal of reaching at 
18.17 	least the proportion of Minnesota resident 
18.18 	undergraduates enrolled in the University of 
18.19 	Minnesota in the 2006-2007 academic year.

18.20	Sec. 6. MAYO CLINIC

18.21	Subdivision 1.Total Appropriation
 	$
	1,300,000
	$
	1,351,000
	
18.22 	The amounts that may be spent for each 
18.23 	purpose are specified in the following 
18.24 	subdivisions.

18.25	Subd. 2.Medical School
 		640,000
		665,000
	
18.26 	The state must pay a capitation each 
18.27 	year for each student who is a resident 
18.28 	of Minnesota. The appropriation may be 
18.29 	transferred between years of the biennium to 
18.30 	accommodate enrollment fluctuations.
18.31 	It is intended that during the biennium the 
18.32 	Mayo Clinic use the capitation money to 
19.1 	increase the number of doctors practicing in 
19.2 	rural Minnesota areas in need of doctors.

19.3
19.4	Subd. 3.Family Practice and Graduate 
Residency Program
 		660,000
		686,000
	
19.5 	The state must pay stipend support for up to 
19.6 	27 residents each year.

19.7 	ARTICLE 2
19.8 	RELATED HIGHER EDUCATION

19.9 	Section 1. Minnesota Statutes 2008, section 135A.08, subdivision 1, is amended to 
19.10 	read:
19.11 		Subdivision 1.Course equivalency. The Board of Regents of the University of 
19.12 	Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities 
19.13 	shall develop and maintain course equivalency guides for use between institutions that 
19.14 	have a high frequency of transfer. The course equivalency guides must include information 
19.15 	on the course equivalency and awarding of credit for learning acquired as a result of 
19.16 	the successful completion of formal military courses and occupational training. Course 
19.17 	equivalency guides shall are not be required for vocational technical programs that have 
19.18 	not been divided into identifiable courses. The governing boards of private institutions 
19.19 	that grant associate and baccalaureate degrees and that have a high frequency of transfer 
19.20 	students are requested to participate in developing these guides.

19.21 	Sec. 2. Minnesota Statutes 2008, section 135A.25, subdivision 4, is amended to read:
19.22 		Subd. 4.Minnesota Office of Higher Education responsibilities. (a) For private 
19.23 	postsecondary institutions, the Minnesota Office of Higher Education must develop 
19.24 	educational materials considering the recommendations by the Minnesota Office of Higher 
19.25 	Education and others and at least annually convene and sponsor meetings and workshops 
19.26 	and provide educational strategies for faculty, students, administrators, institutions, and 
19.27 	bookstores to inform all interested parties on strategies for reducing the costs of course 
19.28 	materials for students attending postsecondary institutions.
19.29 	(b) The Minnesota Office of Higher Education must identify methods to compile and 
19.30 	distribute information on publishers that sell or distribute course material for classroom use 
19.31 	in postsecondary institutions in a manner that meets the requirements and complies with 
19.32 	subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make 
19.33 	this information available for use by students and faculty in postsecondary institutions.

20.1 	Sec. 3. [135A.26] AMERICAN MADE CLOTHING IN COLLEGE 
20.2 	BOOKSTORES.
20.3 	A bookstore located on the campus of a public college or university in Minnesota 
20.4 	must only offer for sale clothing or articles of apparel that are manufactured in the United 
20.5 	States of America.

20.6 	Sec. 4. Minnesota Statutes 2008, section 136A.06, is amended to read:
20.7 	136A.06 FEDERAL FUNDS.
20.8 	The Minnesota Office of Higher Education is designated the state agency to apply 
20.9 	for, receive, accept, and disburse to both public and private institutions of higher education 
20.10 	all federal funds which are allocated to the state of Minnesota to support higher education 
20.11 	programs, construction, or other activities and which require administration by a state 
20.12 	higher education agency under the Higher Education Facilities Act of 1963, and any 
20.13 	amendments thereof, the Higher Education Act of 1965, and any amendments thereof, and 
20.14 	any other law which provides funds for higher education and requires administration by a 
20.15 	state higher education agency as enacted or may be enacted by the Congress of the United 
20.16 	States; provided that no commitment shall be made that shall bind the legislature to make 
20.17 	appropriations beyond current allocations of funds. The office may apply for, receive, 
20.18 	accept, and disburse all administrative funds available to the office for administering 
20.19 	federal funds to support higher education programs, construction, or other activities. The 
20.20 	office also may apply for, receive, accept, and disburse any research, planning, or program 
20.21 	funds which are available for purposes consistent with the provisions of this chapter. In 
20.22 	making application for and administering federal funds the office may comply with any 
20.23 	and all requirements of federal law and federal rules and regulations to enable it to receive 
20.24 	and accept such funds. The expenditure of any such funds received shall be governed by 
20.25 	the laws of the state, except insofar as federal regulations may otherwise provide. The 
20.26 	office may contract with both public and private institutions in administering federal 
20.27 	funds, and such contracts shall not be subject to the provisions of chapter 16C. All such 
20.28 	money received by the office shall be deposited in the state treasury and, subject to section 
20.29 	3.3005, are hereby appropriated to it annually for the purpose for which such funds are 
20.30 	received. None of such moneys shall cancel but shall be available until expended.

20.31 	Sec. 5. Minnesota Statutes 2008, section 136A.08, subdivision 1, is amended to read:
20.32 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms
20.33 	have the meanings given them.
20.34 	(b) "Province" and "provincial" mean the Canadian province of Manitoba.
21.1 	(c) "Resident of this state" means a resident student as defined in section 136A.101, 
21.2 	subdivision 8.

21.3 	Sec. 6. Minnesota Statutes 2008, section 136A.08, is amended by adding a subdivision 
21.4 	to read:
21.5 		Subd. 9.Appeal; resident status. A student who does not meet the definition of 
21.6 	resident after residing in Minnesota for 12 months may appeal to the director by providing 
21.7 	documentation on the student's reasons for residing in Minnesota. The director may 
21.8 	grant resident status to the student upon determining the documentation establishes that 
21.9 	postsecondary education was not the student's principle reason for residing in Minnesota.

21.10 	Sec. 7. Minnesota Statutes 2008, section 136A.101, subdivision 4, is amended to read:
21.11 		Subd. 4.Eligible institution. "Eligible institution" means a postsecondary 
21.12 	educational institution located in this state or in a state with which the office has entered 
21.13 	into a higher education reciprocity agreement on state student aid programs that (1)
21.14 	requires, as a condition of enrollment, that each entering Minnesota resident student must 
21.15 	complete the federal application for student aid (FAFSA), and is either (2) operated by 
21.16 	this state or the Board of Regents of the University of Minnesota, or (2)(3) is operated 
21.17 	privately and, as determined by the office, meets all of the following: (i) maintains 
21.18 	academic standards substantially equivalent to those of comparable institutions operated 
21.19 	in this state; (ii) is licensed or registered as a postsecondary institution by the office or 
21.20 	another state agency; and (iii) by July 1, 2011, is participating in the federal Pell Grant 
21.21 	program under Title IV of the Higher Education Act of 1965, as amended.

21.22 	Sec. 8. Minnesota Statutes 2008, section 136A.121, subdivision 5, is amended to read:
21.23 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
21.24 	responsibility for covering the recognized cost of attendance by the applicant, the 
21.25 	applicant's family, and the government. The amount of a financial stipend must not 
21.26 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
21.27 	deducting the following:
21.28 	(1) the assigned student responsibility of at least 4645 percent of the cost of 
21.29 	attending the institution of the applicant's choosing;
21.30 	(2) the assigned family responsibility as defined in section 136A.101; and 
21.31 	(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
21.32 	The minimum financial stipend is $100 per academic year.

22.1 	Sec. 9. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:
22.2 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of 
22.3 	allowances specified in law for living and miscellaneous expenses, and an allowance for 
22.4 	tuition and fees equal to the lesser of the average tuition and fees charged by the institution, 
22.5 	or the tuition and fee maximums established in law. The tuition and fee maximum for a 
22.6 	student enrolled in a two-year program is the maximum tuition and fee amount charged at 
22.7 	a two-year college within the Minnesota State Colleges and Universities. The tuition and 
22.8 	fee maximum for a student enrolled in a four-year program shall be set in law.
22.9 	(b) For a student registering for less than full time, the office shall prorate the cost of 
22.10 	attendance to the actual number of credits for which the student is enrolled.
22.11 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
22.12 	correctional institution shall consist of the tuition and fee component in paragraph (a), 
22.13 	with no allowance for living and miscellaneous expenses.
22.14 	(d) For the purpose of this subdivision, "fees" include only those fees that are 
22.15 	mandatory and charged to full-time resident students attending the institution. Fees do 
22.16 	not include charges for tools, equipment, computers, or other similar materials where the 
22.17 	student retains ownership. Fees include charges for these materials if the institution retains 
22.18 	ownership. Fees do not include optional or punitive fees.

22.19 	Sec. 10. Minnesota Statutes 2008, section 136A.121, subdivision 9, is amended to read:
22.20 		Subd. 9.Awards. An undergraduate student who meets the office's requirements 
22.21 	is eligible to apply for and receive a grant in any year of undergraduate study unless the 
22.22 	student has obtained a baccalaureate degree or previously has been enrolled full time or 
22.23 	the equivalent for eightten semesters or the equivalent, excluding courses taken from a 
22.24 	Minnesota school or postsecondary institution which is not participating in the state grant 
22.25 	program and from which a student transferred no credit. A student who withdraws from 
22.26 	enrollment for active military service is entitled to an additional semester or the equivalent 
22.27 	of grant eligibility. A student enrolled in a two-year program at a four-year institution is 
22.28 	only eligible for the tuition and fee maximums established by law for two-year institutions.

22.29 	Sec. 11. Minnesota Statutes 2008, section 136A.1701, subdivision 10, is amended to 
22.30 	read:
22.31 		Subd. 10.Prohibition on use of state money. Except as provided in section 
22.32 	136A.1787, paragraph (a), no money originating from state sources in the state treasury 
22.33 	shall be made available for student loans under this section and all student loans shall be 
22.34 	made from money originating from nonstate sources.

23.1 	Sec. 12. [136A.1787] SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE 
23.2 	OF NEED.
23.3 	(a) In order to ensure the payment of the principal of and interest on bonds and 
23.4 	notes of the office and the continued maintenance of the loan capital fund under section 
23.5 	136A.1785, the office shall annually determine and certify to the governor, on or before 
23.6 	December 1, the amount, if any:
23.7 	(1) needed to restore the loan capital fund to the minimum amount required by a 
23.8 	resolution or indenture relating to any bonds or notes of the office, not exceeding the 
23.9 	maximum amount of principal and interest to become due and payable in any subsequent 
23.10 	year on all bonds or notes which are then outstanding; 
23.11 	(2) determined by the office to be needed in the immediately ensuing fiscal year, with 
23.12 	other funds pledged and estimated to be received during that year, for the payment of the 
23.13 	principal and interest due and payable in that year on all outstanding bonds and notes; and 
23.14 	(3) needed to restore any debt service fund securing any outstanding bonds or 
23.15 	notes of the office to the amount required in a resolution or indenture relating to such 
23.16 	outstanding bonds or notes.
23.17 	(b) The governor shall include and submit the amounts certified by the office in 
23.18 	accordance with this section to the legislature in the budget for the following fiscal year, or 
23.19 	in a supplemental budget if the regular budget for that year has previously been approved.

23.20 	Sec. 13. [136A.1795] LARGE ANIMAL VETERINARIAN LOAN 
23.21 	FORGIVENESS PROGRAM.
23.22 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
23.23 	have the meanings given.
23.24 	(b) "Veterinarian" means an individual who has been awarded a doctor of veterinary 
23.25 	medicine degree from the College of Veterinary Medicine, University of Minnesota.
23.26 	(c) "Designated rural area" means an area in Minnesota outside the counties of 
23.27 	Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of 
23.28 	Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
23.29 	(d) "Emergency circumstances" means those conditions that make it impossible for 
23.30 	the participant to fulfill the service commitment, including death, total and permanent 
23.31 	disability, or temporary disability lasting more than two years.
23.32 	(e) "Qualified educational loan" means a government, commercial, or foundation 
23.33 	loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 
23.34 	expenses related to the education of a veterinarian.
24.1 		Subd. 2.Establishment; administration. (a) The director of the Minnesota Office 
24.2 	of Higher Education shall establish and administer a loan forgiveness program for large 
24.3 	animal veterinarians who:
24.4 	(1) agree to practice in designated rural areas that are considered underserved; and
24.5 	(2) work full time in a practice that is at least 50 percent involved with the care of 
24.6 	food animals.
24.7 	(b) Appropriations made to the program do not cancel and are available until 
24.8 	expended.
24.9 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program, 
24.10 	an individual must:
24.11 	(1) be a veterinarian who has been awarded a veterinary medicine degree within 
24.12 	three years of submitting an application under this section, or be enrolled in the 
24.13 	veterinarian degree program and making satisfactory progress in the College of Veterinary 
24.14 	Medicine, University of Minnesota; and
24.15 	(2) submit an application to the director of the Minnesota Office of Higher Education 
24.16 	in the form and manner prescribed by the director.
24.17 	(b) An applicant selected to participate must sign a contract agreeing to complete a 
24.18 	five-year service obligation to practice as required under subdivision 2, paragraph (a).
24.19 		Subd. 4.Loan forgiveness. (a) The director of the Minnesota Office of Higher 
24.20 	Education may select a maximum of five applicants each year for participation in the loan 
24.21 	forgiveness program, within the limits of available funding. Applicants are responsible for 
24.22 	securing their own qualified educational loans.
24.23 	(b) The director must select participants based on their suitability for practice serving 
24.24 	the designated rural area, as indicated by experience or training. The director must give 
24.25 	preference to applicants closest to completing their training.
24.26 	(c) The director must make annual disbursements directly to the participant of 
24.27 	$15,000 or the balance of the participant's qualifying educational loans, whichever is less, 
24.28 	for each year that a participant meets the service obligation required under subdivision 3, 
24.29 	paragraph (b), up to a maximum of five years.
24.30 	(d) Before receiving loan repayment disbursements and as requested, the participant 
24.31 	must complete and return to the director an affidavit of practice form provided by the 
24.32 	director verifying that the participant is practicing as required under subdivision 2, 
24.33 	paragraph (a). The participant must provide the director with verification that the full 
24.34 	amount of loan repayment disbursement received by the participant has been applied 
24.35 	toward the designated loans. After each disbursement, verification must be received by 
24.36 	the director and approved before the next loan repayment disbursement is made.
25.1 	(e) Participants who move their practice remain eligible for loan repayment as long 
25.2 	as they practice as required under subdivision 2, paragraph (a).
25.3 		Subd. 5.Penalty for nonfulfillment. If a participant does not fulfill the required 
25.4 	minimum commitment of service required under subdivision 3, paragraph (b), the director 
25.5 	of the Minnesota Office of Higher Education must collect from the participant the total 
25.6 	amount paid to the participant under the loan forgiveness program plus interest at a rate 
25.7 	established according to section 270C.40. The director must deposit the money collected 
25.8 	in the state general fund. The director must allow waivers of all or part of the money owed 
25.9 	the director as a result of a nonfulfillment penalty if emergency circumstances prevented 
25.10 	fulfillment of the service obligation.
25.11 		Subd. 6.Rules. The director may adopt rules to implement this section.

25.12 	Sec. 14. Minnesota Statutes 2008, section 136F.02, subdivision 1, is amended to read:
25.13 		Subdivision 1. Membership. The board consists of 15 members appointed by the 
25.14 	governor elected by the legislature in a joint convention, including three members who are 
25.15 	students who have attended an institution for at least one year and are currently enrolled at 
25.16 	least half time in a degree, diploma, or certificate program in an institution governed by 
25.17 	the board. The student members shall include one member from a community college, one 
25.18 	member from a state university, and one member from a technical college. One member 
25.19 	representing labor must be appointed after considering the recommendations made under 
25.20 	section 136F.045. The governor is not bound by the recommendations. Appointments to 
25.21 	the board are with the advice and consent of the senate. At least one member of the board 
25.22 	must be a resident of each congressional district. All other members must be appointed
25.23 	elected to represent the state at large. In selecting appointees, the governor must consider 
25.24 	the needs of the board of trustees and the balance of the board membership with respect to 
25.25 	labor and business representation and racial, gender, geographic, and ethnic composition.

25.26 	Sec. 15. Minnesota Statutes 2008, section 136F.04, is amended to read:
25.27 	136F.04 STUDENT BOARD MEMBER SELECTION.
25.28 		Subdivision 1.Responsibility. Notwithstanding section 136F.03, The State 
25.29 	University Student Association and the State College Student Association shall each have 
25.30 	the responsibility for recruiting, screening, and recommending qualified candidates to the 
25.31 	joint committee for their student members of the board.
25.32 		Subd. 2.Criteria. After consulting with the Board of Trustees Candidate Advisory 
25.33 	Council, The student associations shall jointly develop a statement of the selection criteria 
25.34 	to be applied to potential candidates.
26.1 		Subd. 3.Recruiting and screening. Each student association shall develop 
26.2 	processes for identifying and recruiting qualified candidates and for screening those 
26.3 	candidates.
26.4 		Subd. 4.Recommendations. Each student association shall recommend at least 
26.5 	two and not more than four candidates for its student member. By April 15 February 15 
26.6 	 of the even-numbered year in which its members' term expires, each student association 
26.7 	shall submit its recommendations to the governor joint committee. The governor is not 
26.8 	bound by these recommendations.

26.9 	Sec. 16. Minnesota Statutes 2008, section 136F.045, is amended to read:
26.10 	136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION 
26.11 	PROCESS. 
26.12 	The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to be 
26.13 	recommended to the governor for appointment joint committee for election to the board. 
26.14 	The organization must develop a process for selecting candidates, and a statement of 
26.15 	selection criteria for board membership that is consistent with the requirements under 
26.16 	section 136F.02, subdivision 1. The organization must recommend at least two and no 
26.17 	more than four candidates to the governorjoint committee beginning in 2010 and every 
26.18 	six years thereafter. Recommendations must be made by April 15 February 15 of the 
26.19 	even-numbered year in which the governor makes appointments joint committee makes 
26.20 	recommendations for candidates to be elected to the board. The governor is not bound 
26.21 	by the recommendations.

26.22 	Sec. 17. [136F.047] TRUSTEE NOMINATION AND ELECTION.
26.23 		Subdivision 1.Joint legislative committee.  The joint legislative committee consists 
26.24 	of the members of the higher education budget and policy divisions in each body of the 
26.25 	legislature. The chairs of the divisions from each body shall be cochairs of the joint 
26.26 	legislative committee. A majority of the members from each body is a quorum of the 
26.27 	joint committee.
26.28 		Subd. 2.Meeting. By March 15 of each odd-numbered year, or at a date agreed 
26.29 	to by concurrent resolution, the joint legislative committee shall meet to consider 
26.30 	recommendations for trustee of the Minnesota State Colleges and Universities for 
26.31 	possible presentation to a joint convention of the legislature. The joint committee 
26.32 	must meet as many times as necessary for the purpose of interviewing candidates, 
26.33 	recommending candidates for the joint committee to consider, and voting for candidates 
26.34 	for recommendation to the joint convention.
27.1 		Subd. 3.Recommendations The joint committee may recommend to the joint 
27.2 	convention candidates nominated by the joint committee. If a vacancy exists for a 
27.3 	student board member or a member recommended under this section, the joint committee 
27.4 	must consider the recommendations made by the responsible organizations to the joint 
27.5 	committee for those vacancies. Candidates for any vacancy may be nominated for 
27.6 	consideration by the joint committee only if the nomination receives the support of at least 
27.7 	three house of representatives members of the committee and two senate members of the 
27.8 	committee. A candidate must receive a majority vote of members from the house of 
27.9 	representatives on the joint committee and from the senate on the joint committee to be 
27.10 	recommended to the joint convention. The joint committee may recommend no more than 
27.11 	two candidates for each vacancy. In recommending candidates to the joint convention, the 
27.12 	joint committee must consider the needs of the board of trustees and the balance of the 
27.13 	board membership with respect to gender, racial, and ethnic composition.

27.14 	Sec. 18. Minnesota Statutes 2008, section 136F.46, subdivision 3, is amended to read:
27.15 		Subd. 3.Solicitation. Efforts to secure payroll deductions authorized in subdivision 
27.16 	1 may not interfere with, require a modification of, nor be conducted during the period of 
27.17 	a payroll deduction fund drive for employees authorized by section 309.501 43A.50.  

27.18 	Sec. 19. [136F.705] UNDERGRADUATE TUITION GUARANTEE.
27.19 	(a) A Minnesota resident student who first enrolls in a degree program at a state 
27.20 	college or university beginning in the fall of 2010 or later is guaranteed a stable tuition 
27.21 	for up to four consecutive academic years. 
27.22 	(b) For an undergraduate student enrolled in a baccalaureate degree program at a 
27.23 	state university, the tuition charged to the student for each semester of enrollment during 
27.24 	a four-year period, beginning with the first semester of enrollment, must not exceed the 
27.25 	amount of tuition that the student was charged for the first semester of enrollment. For a 
27.26 	student who continues to be enrolled after four consecutive academic years, the tuition 
27.27 	rate for each semester in excess of four years is equal to the tuition rate paid by new 
27.28 	enrollees at the state university. 
27.29 	(c) For an undergraduate student enrolled in an associate degree program at a college, 
27.30 	the tuition charged to the student for each semester of enrollment during a two-year period, 
27.31 	beginning with the first semester of enrollment, must not exceed the amount of tuition that 
27.32 	the student was charged for the first semester of enrollment. For a student who continues 
27.33 	to be enrolled after two consecutive academic years, the tuition rate for each semester in 
27.34 	excess of two years is equal to the tuition rate for new enrollees at the college.

28.1 	Sec. 20. [137.0225] UNIVERSITY SCHOLARSHIP.
28.2 	The Board of Regents may establish a scholarship to help offset the impact of 
28.3 	rising tuition for Minnesota students from middle-income families. To be eligible for a 
28.4 	scholarship under this section, a student must be a Minnesota resident undergraduate 
28.5 	from a family that is not Pell eligible with an annual adjusted gross income not to exceed 
28.6 	$100,000.

28.7 	Sec. 21. Minnesota Statutes 2008, section 137.0246, subdivision 2, is amended to read:
28.8 		Subd. 2.Regent nomination joint committee. (a) The joint legislative committee 
28.9 	consists of the members of the higher education budget and policy divisions in each house 
28.10 	of the legislature. The chairs of the divisions from each body shall be cochairs of the 
28.11 	joint legislative committee. A majority of the members from each house is a quorum of 
28.12 	the joint committee.
28.13 	(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 
28.14 	resolution, the joint legislative committee shall meet to consider the advisory council's
28.15 	recommendations for regent of the University of Minnesota for possible presentation to a 
28.16 	joint convention of the legislature.
28.17 	(c) The joint committee may recommend to the joint convention candidates 
28.18 	recommended by the advisory council and the other candidates nominated by the joint 
28.19 	committee. A candidate other than those recommended by the advisory council may be 
28.20 	nominated for consideration by the joint committee only if the nomination receives the 
28.21 	support of at least three house of representatives members of the committee and two senate 
28.22 	members of the committee. A candidate must receive a majority vote of members from the 
28.23 	house of representatives and from the senate on the joint committee to be recommended to 
28.24 	the joint convention. The joint committee may recommend no more than one candidate
28.25 	two candidates for each vacancy. In recommending nominees, the joint committee must 
28.26 	consider the needs of the board of regents and the balance of the board membership with 
28.27 	respect to gender, racial, and ethnic composition.
28.28 	(d) The joint committee must meet twice, approximately one week apart. The first 
28.29 	meeting is for the purpose of interviewing candidates and recommending candidates for 
28.30 	the joint committee to consider. The second meeting is for the purpose of voting for 
28.31 	candidates for recommendation to the joint convention.

28.32 	Sec. 22. Minnesota Statutes 2008, section 137.025, subdivision 1, is amended to read:
28.33 		Subdivision 1.Appropriations not for buildings. The commissioner of finance 
28.34 	shall pay no money to the University of Minnesota pursuant to a direct appropriation, other 
29.1 	than an appropriation for buildings, until the university first certifies to the commissioner 
29.2 	of finance that its aggregate balances in the temporary investment pool, cash, or separate 
29.3 	investments, resulting from all state maintenance and special appropriations do not 
29.4 	exceed $7,000,000, or any other amount specified in the act making the appropriation, 
29.5 	plus one-third of all tuition and fee payments from the previous fiscal year. Upon this 
29.6 	certification, The commissioner of finance shall pay 1/12 of the annual appropriation to 
29.7 	the university shall be paid at the beginning on the 21st day of each month. Additional 
29.8 	payments shall be made by the commissioner of finance whenever the state appropriations 
29.9 	and tuition aggregate balances in the temporary investment pool, cash, or separate 
29.10 	investments are reduced below the indicated levels. If the 21st day of the month falls on 
29.11 	a Saturday or Sunday, the monthly payment shall be made on the Monday immediately 
29.12 	following the 21st.

29.13 	Sec. 23. [137.105] UNDERGRADUATE TUITION GUARANTEE.
29.14 	A Minnesota resident student who first enrolls in a degree program at the University 
29.15 	of Minnesota beginning in the fall of 2010 or later is guaranteed a stable tuition for up to 
29.16 	four consecutive academic years. For an undergraduate student enrolled in a baccalaureate 
29.17 	degree program, the tuition charged to the student for each semester of enrollment during 
29.18 	a four-year period, beginning with the first semester of enrollment, must not exceed the 
29.19 	amount of tuition that the student was charged for the first semester of enrollment. For a 
29.20 	student who continues to be enrolled after four consecutive academic years, the tuition 
29.21 	rate for each semester in excess of four years is equal to the tuition rate paid by new 
29.22 	enrollees at the University of Minnesota.

29.23 	Sec. 24. [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.
29.24 		Subdivision 1.Purpose. In order to support and create environments surrounding 
29.25 	the campuses of the University of Minnesota in Minneapolis and Duluth that are 
29.26 	conducive to the purposes of higher education and vital communities, the Board of 
29.27 	Regents, the city of Minneapolis, and the city of Duluth are requested to create with 
29.28 	surrounding neighborhoods an appropriate organization in each city, to cooperate in the 
29.29 	development of those neighborhoods. The purpose of each organization is to improve 
29.30 	the university's Minneapolis and Duluth campus area neighborhoods including, without 
29.31 	limitation, the following:
29.32 	(1) providing and supporting the development of good quality university 
29.33 	neighborhood housing, including housing for students, faculty, employees, alumni, and 
29.34 	others who may wish to live in the university area neighborhoods;
30.1 	(2) encouraging and assisting university faculty, staff, students, and others to live in 
30.2 	the neighborhood as long-term residents;
30.3 	(3) supporting and assisting appropriate business development in commercial areas 
30.4 	of the neighborhood; and
30.5 	(4) cooperating and coordinating planning and development in all matters affecting 
30.6 	the neighborhood with local government, businesses, residents, and other stakeholders in 
30.7 	the neighborhood.
30.8 		Subd. 2.Membership. The organization created by the Board of Regents and 
30.9 	the city of Minneapolis shall include representatives from the organizations currently 
30.10 	represented on the University District Alliance Steering Committee. The Board of 
30.11 	Regents and the city of Duluth may establish the membership of an organization for the 
30.12 	purposes of subdivision 1.
30.13 		Subd. 3.Report. The Board of Regents, the city of Minneapolis, and the city 
30.14 	of Duluth are requested to report by January 15, 2010, to the chairs of the legislative 
30.15 	committees with primary jurisdiction over higher education policy and finance on the 
30.16 	status and activities of the organization that is created.

30.17 	Sec. 25. Minnesota Statutes 2008, section 299A.45, subdivision 4, is amended to read:
30.18 		Subd. 4.Renewal. Each award must be given for one academic year and is 
30.19 	renewable for a maximum of eightten semesters or the equivalent. A student who 
30.20 	withdraws from enrollment for active military service is entitled to an additional semester 
30.21 	or the equivalent of grant eligibility. An award must not be given to a dependent child 
30.22 	who is 23 years of age or older on the first day of the academic year.

30.23 	Sec. 26. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to 
30.24 	read:
30.25 		Subd. 4a.State-owned recreation; entertainment facilities. Notwithstanding any 
30.26 	other law, local ordinance, or charter provision, the commissioner may issue on-sale 
30.27 	intoxicating liquor licenses:
30.28 	(1) to the state agency administratively responsible for, or to an entity holding a 
30.29 	concession or facility management contract with such agency for beverage sales at, the 
30.30 	premises of any Giants Ridge Recreation Area building or recreational improvement area 
30.31 	owned by the state in the town of White city of Biwabik, St. Louis County;
30.32 	(2) to the state agency administratively responsible for, or to an entity holding a 
30.33 	concession or facility management contract with such agency for beverage sales at, the 
31.1 	premises of any Ironworld Discovery Center building or facility owned by the state at 
31.2 	Chisholm; and
31.3 	(3) to the Board of Regents of the University of Minnesota for events at Northrop 
31.4 	Auditorium, the intercollegiate football stadium, or at no more than seven other locations 
31.5 	within the boundaries of the University of Minnesota, provided that the Board of Regents 
31.6 	has approved an application for a license for the specified location and provided that 
31.7 	the application for a stadium or arena location allows for the legal sale of intoxicating 
31.8 	liquor throughout the stadium or arena and does not limit the sale of intoxicating liquor to 
31.9 	premium seating areas or suites.
31.10 	The commissioner shall charge a fee for licenses issued under this subdivision in an 
31.11 	amount comparable to the fee for comparable licenses issued in surrounding cities.

31.12 	EFFECTIVE DATE. This section is effective the day following final enactment 
31.13 	and applies to applications for an on-sale liquor license made after December 1, 2008.

31.14 	Sec. 27. REPORT; FEDERAL TEXTBOOK INFORMATION 
31.15 	REQUIREMENTS.
 31.16 	By January 15, 2010, the Minnesota Office of Higher Education must report 
31.17 	to the committees of the legislature responsible for higher education finance on the 
31.18 	implementation of textbook information requirements under United States Code, title 20, 
31.19 	section 1015b, effective July 1, 2010. In preparing the report, the office must work with 
31.20 	representatives of textbook publishers, the Student Advisory Council, Minnesota State 
31.21 	Colleges and Universities, the University of Minnesota, and the Private College Council. 
31.22 	At a minimum, the report must include a template that publishers may use to provide 
31.23 	the required information in a consistent format to all Minnesota campuses, and make 
31.24 	recommendations of methods to disseminate pricing information to support students and 
31.25 	faculty in making well informed decisions about course materials.

31.26 	Sec. 28. MINNESOTA STATE COLLEGE - SOUTHEAST TECHNICAL; 
31.27 	AVIATION TRAINING CENTER.
 31.28 	Notwithstanding Minnesota Statutes, section 136F.60, subdivision 5, the net 
31.29 	proceeds of the sale or disposition of the Aviation Training Center in Winona operated by 
31.30 	Minnesota State College - Southeast Technical, after paying all expenses incurred in selling 
31.31 	the property and retiring any remaining debt attributable to the project, are appropriated to 
31.32 	the Board of Trustees of the Minnesota State Colleges and Universities for use in a capital 
31.33 	project at the Winona campus and need not be paid to the commissioner of finance, as 
31.34 	would otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3.
32.1 	When the sale is complete and the sale proceeds have been applied as provided in 
32.2 	this section, Minnesota Statutes, section 16A.695, no longer applies to the property and 
32.3 	the property is no longer state bond financed property.

32.4 	Sec. 29. MINNESOTA STATE COLLEGES AND UNIVERSITIES DEGREE 
32.5 	REQUIREMENTS.
 32.6 	Until July 2, 2012, an associate of applied science degree offered by a college in 
32.7 	the Minnesota State Colleges and Universities system is exempt from the 60-semester 
32.8 	credit length limit for an associate degree specified in the Minnesota State Colleges and 
32.9 	Universities Board Policy number 3.36, part 3, subpart C. The chancellor may consider 
32.10 	criteria for waiving the credit length limits under this board policy for emerging or 
32.11 	innovative programs. By January 2, 2012, the Minnesota State College Faculty and the 
32.12 	Minnesota State College Student Association must present a joint report to the house of 
32.13 	representatives and senate committees with jurisdiction over higher education policy on a 
32.14 	process for reviewing the credit requirements for an associate of applied science degree.

32.15 	EFFECTIVE DATE. This section is effective the day following final enactment 
32.16 	and applies to associate of applied science degrees whether first offered before, on, or 
32.17 	after that date.

32.18 	Sec. 30. POWER OF YOU PILOT PROGRAMS.
 32.19 		Subdivision 1.Power of you pilot programs. The Board of Trustees of the 
32.20 	Minnesota State Colleges and Universities shall establish power of you pilot programs in 
32.21 	suburban and rural sites. The pilots shall comply with Minnesota Statutes, section 136F.19.
32.22 		Subd. 2.Suburban pilot selection. By July 1, 2009, the board of trustees shall 
32.23 	select one technical college and one community college or community-technical college 
32.24 	in the Minneapolis-St. Paul suburban area to develop a new power of you pilot program 
32.25 	in conjunction with Metropolitan State University. Each college in the pilot program 
32.26 	must work with a high school partner selected by the board in the Minneapolis-St. Paul 
32.27 	suburban area.
32.28 		Subd. 3.Rural pilot selection. By July 1, 2009, the Board of Trustees shall select 
32.29 	two rural colleges to participate in the power of you pilot programs. One of the pilot 
32.30 	programs must be a multicampus college in an agricultural part of the state and the other a 
32.31 	multicampus college in a nonagricultural part of the state dependent on natural resources. 
32.32 	Each college in the pilot program must work with a high school partner selected by the 
32.33 	board.

33.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

33.2 	Sec. 31.  REPEALER.
 33.3 	Minnesota Statutes 2008, sections 136A.127; 136F.03; and 137.0245, are repealed.

33.4 	Sec. 32. EFFECTIVE DATE.
 33.5 	Sections 1 to 5 are effective the day following final enactment.