1.1A bill for an act1.2relating to higher education; amending higher education provisions; establishing 1.3and modifying certain grants and programs; making technical changes; regulating 1.4certain activities and practices; establishing and amending certain scholarships; 1.5providing a tuition guarantee; regulating board member and trustee nominations 1.6and elections; requiring a certificate of need; defining terms; requiring a report; 1.7appropriating money;amending Minnesota Statutes 2008, sections 135A.08, 1.8subdivision 1; 135A.25, subdivision 4; 136A.06; 136A.08, subdivision 1, by 1.9adding a subdivision; 136A.101, subdivision 4; 136A.121, subdivisions 5, 6, 9; 1.10136A.1701, subdivision 10; 136F.02, subdivision 1; 136F.04; 136F.045; 136F.46, 1.11subdivision 3; 137.0246, subdivision 2; 137.025, subdivision 1; 179A.03, 1.12subdivision 14; 299A.45, subdivision 4; 340A.404, subdivision 4a; proposing 1.13coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 137; 1.14repealing Minnesota Statutes 2008, sections 136A.127; 136F.03; 137.0245.1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.16ARTICLE 11.17HIGHER EDUCATION APPROPRIATIONS

1.18Section 1. SUMMARY OF APPROPRIATIONS.

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

1.2120102011Total1.22General$1,388,543,000$1,383,285,000$2,771,828,0001.23Health Care Access2,157,0002,157,0004,314,0001.24Federal Stabilization180,920,000180,920,000361,840,0001.25Total$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 1.27summarize direct appropriations, by agency, made in this article.

2.120102011Total2.22.3Minnesota Office of Higher Education$195,358,000$190,049,000$385,407,0002.42.52.6Board of Trustees of the Minnesota State Colleges and Universities665,883,000665,883,0001,331,766,0002.72.8Board of Regents of the University of Minnesota709,079,000709,079,0001,418,158,0002.9Mayo Medical Foundation1,300,0001,351,0002,651,0002.10Total$1,571,620,000$1,566,362,000$3,137,982,000

2.11Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

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

2.19APPROPRIATIONS2.20Available for the Year2.21Ending June 302.2220102011

2.232.24Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

2.25Subdivision 1.Total Appropriation$195,358,000$190,049,000

2.26The amounts that may be spent for each 2.27purpose are specified in the following 2.28subdivisions.

2.29Subd. 2.State Grants149,721,000144,618,000

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

3.7Subd. 3.Safety Officers' Survivors100,000100,000

3.8This appropriation is to provide educational 3.9benefits under Minnesota Statutes, section 3.10299A.45, to dependent children under age 23 3.11and to the spouses of public safety officers 3.12killed in the line of duty.3.13If the appropriation in this subdivision for 3.14either year is insufficient, the appropriation 3.15for the other year is available for it.

3.16Subd. 4.Interstate Tuition Reciprocity2,750,0002,750,000

3.17If the appropriation in this subdivision for 3.18either year is insufficient, the appropriation 3.19for the other year is available to meet 3.20reciprocity contract obligations.

3.21Subd. 5.State Work Study15,500,00015,500,000

3.22Subd. 6.Child Care Grants6,675,0006,675,000

3.23Subd. 7.Indian Scholarships2,375,0002,375,000

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

4.4Subd. 8.Minitex5,631,0005,631,000

4.5Subd. 9.MnLINK Gateway400,000400,000

4.6Subd. 10.Learning Network of Minnesota4,800,0004,800,000

4.7Subd. 11.Minnesota College Savings Plan700,000700,000

4.8Subd. 12.Midwest Higher Education Compact95,00095,000

4.9Subd. 13.Other Small Programs853,000853,000

4.10This appropriation includes funding for 4.11student and parent information, information 4.12for college attendance, and minority 4.13education programs.

4.14Subd. 14.TEACH Program300,000300,000

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

4.20Subd. 15.Power of You2,000,0002,000,000

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

4.244.25Subd. 16.Technical and Community College Emergency Grants100,000100,000

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

5.3Subd. 17.Veterinary Loan Forgiveness225,000

5.4For the large animal loan forgiveness 5.5program under Minnesota Statutes, section 5.6136A.1795. This appropriation is available 5.7until expended.

5.8Subd. 18.Agency Administration2,685,0002,685,000

5.9Subd. 19.Balances Forward

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

5.13Subd. 20.Transfers

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

5.235.24Subd. 21.United Family Medicine Residency Program448,000467,000

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

6.7Subd. 22.TANF Work-Study

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

6.12Subd. 23.Reporting

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

6.26Subd. 24.Accreditation

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

6.316.326.33Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

6.34Subdivision 1.Total Appropriation$665,883,000$665,883,000

7.1The amounts that may be spent for each 7.2purpose are specified in the following 7.3subdivisions.

7.47.5Subd. 2.Central Office and Shared Services Unit47,328,00047,328,000

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

7.11Subd. 3.Operations and Maintenance553,366,000553,366,000

7.12(a) It is the intention of the legislature to 7.13increase the amount of funding distributed 7.14to colleges and universities through the 7.15allocation model to provide direct support of 7.16instruction and related functions necessary 7.17to protect the core mission of educating 7.18students.7.19(b) Allocations to campuses from 7.20appropriations under this section must 7.21not be reduced below the allocations for 7.22the biennium ending June 30, 2009, after 7.23deducting any amount unallotted in the 7.24biennium.7.25(c) The Board of Trustees shall submit 7.26expenditure reduction plans by March 15, 7.272010, to the committees of the legislature 7.28with responsibility for higher education 7.29finance to achieve the 2012-2013 base 7.30established in this section at the central 7.31office and at each institution. The plan 7.32submitted by the board must be based on 7.33plans developed at each institution detailing 7.34reductions to achieve lower base allocations 8.1at that institution. Each plan must focus on 8.2protecting direct instruction while reducing 8.3peripheral programs and services that may 8.4benefit students and institutions but are 8.5not necessary to the education of students 8.6seeking certificates, diplomas, and degrees.8.7(d) During the biennium ending  June 30, 8.82011, except for positions that are essential to 8.9the daily operation of an institution, the board 8.10must not fill administrative and managerial 8.11vacancies, existing on the effective date of 8.12this section, in the central office or at any 8.13of the campuses of the Minnesota State 8.14Colleges and Universities or use a search firm 8.15for any hiring. The board must not authorize 8.16any increase in salaries for administrative and 8.17managerial positions in the Minnesota State 8.18Colleges and Universities in the biennium 8.19ending June 30, 2011. The board must not 8.20charge any of the institutions for reductions 8.21under this section to the central office.8.22(e) For the biennium ending June 30, 2011, 8.23the board must not reserve or expend 8.24appropriations under this subdivision for 8.25competitive salaries, awards of excellence, 8.26campus and technology initiatives outside the 8.27allocation model, or other board or chancellor 8.28initiatives. All amounts saved under this 8.29paragraph must be added to the allocation 8.30model and distributed to the institutions.8.31(f) For the biennium ending June 30, 8.322011, expenditures under this subdivision 8.33must not exceed $40,000,000 for 8.34technology initiatives, including technology 8.35infrastructure improvements, and $5,000,000 9.1for initiatives to recruit and retain 9.2traditionally underrepresented students. All 9.3amounts saved under this paragraph must be 9.4added to the allocation model and distributed 9.5to the institutions.9.6(g) $40,000 each year is for the Cook 9.7County Higher Education Board to provide 9.8educational programs and academic support 9.9services.9.10(h) $1,000,000 each year is for the Northeast 9.11Minnesota Higher Education District and 9.12high schools in its area. Students from area 9.13high schools may also access the facilities 9.14and faculty of the Northeast Minnesota 9.15Higher Education District for state-of-the-art 9.16technical education opportunities, including 9.17MnSCU's 2+2 Pathways initiative.9.18(i) $225,000 each year is to enhance eFolio 9.19Minnesota and for a center to provide on-site 9.20and Internet-based support and technical 9.21assistance to users of the state's eFolio 9.22Minnesota system to promote workforce and 9.23economic development and to enable access 9.24to workforce information generated through 9.25the eFolio Minnesota system.9.26(j) For fiscal years 2012 and 2013 the base for 9.27operations and maintenance is $609,631,000 9.28each year.

9.29Subd. 4.Federal Stimulus Appropriation65,189,00065,189,000

9.30(a) This appropriation is from the fiscal 9.31stabilization account in the federal fund and 9.32may be used for modernization, renovation, 9.33or repair of facilities that are primarily used 9.34for instruction, research, or student housing 9.35but may not be used for maintenance of 10.1systems, equipment, or facilities. Amounts 10.2in this subdivision must not be allocated 10.3to modernization, renovation, or repair of 10.4stadiums or other facilities primarily used 10.5for athletic contests or exhibitions or other 10.6events for which admission is charged to the 10.7general public and must not be allocated to 10.8any facility used for sectarian instruction or 10.9religious worship or in which a substantial 10.10portion of the functions of the facilities are 10.11subsumed in a religious mission. No amount 10.12from this appropriation may be allocated to 10.13increase endowment funds.10.14(b) Appropriations under this subdivision 10.15must be used as a bridge for budget 10.16reductions in the biennium ending June 30, 10.172013, and may be used to retain faculty 10.18and staff jobs, to provide severance and for 10.19early retirement incentives, and to mitigate 10.20the rising costs of attendance through 10.21minimizing tuition increases and the support 10.22of student employment opportunities.10.23(c) The legislature intends that the 10.24tuition increase for a Minnesota resident 10.25undergraduate student in the Minnesota State 10.26Colleges and Universities, must not exceed 10.27five percent per year for the biennium ending 10.28June 30, 2011. Federal stimulus money 10.29under this subdivision must be used to buy 10.30down the tuition increase to no more than 10.31two percent per year for these students.10.32(d) An additional $3,469,000 is appropriated 10.33in fiscal year 2009 from the fiscal stabilization 10.34account in the federal fund.

10.35Subd. 5.System Improvements

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

11.1111.12Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

11.13Subdivision 1.Total Appropriation$709,079,000$709,079,000

11.14The amounts that may be spent for each 11.15purpose are specified in the following 11.16subdivisions.

11.17Subd. 2.Operations and Maintenance517,623,000517,623,000

11.18(a) In the biennium ending June 30, 2011, the 11.19board must not use appropriations under this 11.20section to create or fund new administrative 11.21positions at the University of Minnesota or to 11.22increase salaries for administrative positions.11.23(b) The Board of Regents shall submit 11.24expenditure reduction plans by March 15, 11.252010, to the committees of the legislature 11.26with responsibility for higher education 11.27finance to achieve the 2012-2013 base 11.28established in this section. The plan must 11.29focus on protecting direct instruction while 11.30reducing peripheral programs and services 11.31that may benefit students and institutions but 11.32are not necessary to the education of students 11.33seeking certificates, diplomas, and degrees.12.1(c) Appropriations under this subdivision 12.2may be used for a new scholarship under 12.3Minnesota Statutes, section 137.0225, to 12.4complement the University's Founders 12.5scholarship.12.6(d) This appropriation includes amounts for 12.7an Ojibwe Indian language program on the 12.8Duluth campus.12.9(e) This appropriation includes money for the 12.10Dakota language teacher training immersion 12.11program on the Twin Cities campus to 12.12prepare teachers to teach in Dakota language 12.13immersion programs. 12.14(f) This appropriation includes $600,000 12.15each year for the Veterinary Diagnostic 12.16Laboratory.12.17(g) For fiscal years 2012 and 2013, the 12.18base for operations and maintenance is 12.19$598,124,000 each year.

12.20Subd. 3.Health Care Access Fund2,157,0002,157,000

12.21This appropriation is from the health care 12.22access fund and is for primary care education 12.23initiatives.

12.24Subd. 4.Special Appropriation73,468,00073,468,000

12.25(a) Agriculture and Extension Service52,255,00052,255,000

12.26(1) This appropriation is for agricultural 12.27research and extension activities as provided 12.28in this paragraph.12.29(2) The Agricultural Experiment Stations 12.30and Minnesota Extension Service must 12.31convene agricultural advisory groups to 12.32focus research, education, and extension 12.33activities on producer needs and implement 13.1an outreach strategy that more effectively 13.2and rapidly transfers research results and best 13.3practices to producers throughout the state.13.4(3) This appropriation includes funding 13.5for research efforts that demonstrate a 13.6renewed emphasis on the needs of the state's 13.7production agriculture community. The 13.8following areas should be prioritized and 13.9carried out in consultation with Minnesota 13.10producer organizations:13.11(i) vegetable crop research;13.12(ii) fertilizer and soil fertility research and 13.13development;13.14(iii) soil, groundwater, and surface water 13.15conservation practices and contaminant 13.16reduction research;13.17(iv) discovering and developing plant 13.18varieties that use nutrients more efficiently;13.19(v) breeding and development of turf seed 13.20and other biomass resources in all three 13.21Minnesota biomes;13.22(vi) development of new disease-resistant 13.23and pest-resistant varieties of turf and 13.24agronomic crops;13.25(vii) utilizing plant and livestock cells to treat 13.26and cure human diseases;13.27(viii) the development of dairy coproducts;13.28(ix) a rapid agricultural response fund for 13.29current or emerging animal, plant, and insect 13.30problems affecting production or food safety;13.31(x) crop pest and animal disease research; 13.32(xi) developing animal agriculture that is 13.33capable of sustainably feeding the world;14.1(xii) consumer food safety education and 14.2outreach; and14.3(xiii) programs to meet the research and 14.4outreach needs of sustainable and organic 14.5livestock and crop farmers.14.6(4) This appropriation includes funding for 14.7research and outreach on the production of 14.8renewable energy from Minnesota biomass 14.9resources. The following areas should be 14.10prioritized and carried out in consultation 14.11with Minnesota producer and bioenergy 14.12organizations:14.13(i) biofuel and other energy production from 14.14perennial crops, small grains, row crops, 14.15and forestry products in conjunction with 14.16the Natural Resources Research Institute 14.17(NRRI);14.18(ii) alternative bioenergy crops and cropping 14.19systems; and14.20(iii) biofuel coproducts used for livestock 14.21feed.14.22(5) This appropriation includes funding 14.23for analysis of livestock facility siting and 14.24regulatory models from other states and 14.25countries and the following aspects of 14.26ethanol production in Minnesota:14.27(i) water use trends as compared to other 14.28industries and activities;14.29(ii) the carbon balance of ethanol production;14.30(iii) the effect of ethanol blending 14.31requirements on transportation fuel prices; 14.32and14.33(iv) the economic impacts of ethanol 14.34production and use including such measures 15.1as employment, economic output, and state 15.2and local tax revenues.15.3(6) This appropriation may be used to 15.4establish and maintain a statewide organic 15.5research and education initiative, secure 15.6a facility and retain current faculty levels 15.7for poultry research currently conducted at 15.8UMore Park, develop and implement a dairy 15.9producer continuing education program 15.10and for scoping a new dairy research and 15.11teaching facility.15.12(7) By February 1, 2011, the Board of 15.13Regents must submit a report to the 15.14legislative committees with responsibility 15.15for agriculture and higher education finance 15.16on the status and outcomes of research and 15.17initiatives funded in this section.

15.18(b) Health Sciences5,275,0005,275,000

15.19$346,000 each year is to support up to 12 15.20resident physicians each year in the St. 15.21Cloud Hospital family practice residency 15.22program. The program must prepare doctors 15.23to practice primary care medicine in the rural 15.24areas of the state. The legislature intends for 15.25this program to improve health care in rural 15.26communities, provide affordable access to 15.27appropriate medical care, and manage the 15.28treatment of patients in a more cost-effective 15.29manner.15.30The remainder of this appropriation is for 15.31the rural physicians associates program, the 15.32Veterinary Diagnostic Laboratory, health 15.33sciences research, dental care, and the 15.34Biomedical Engineering Center.

15.35(c) Institute of Technology1,387,0001,387,000

16.1For the Geological Survey and the talented 16.2youth mathematics program.

16.3(d) System Specials6,551,0006,551,000

16.4For general research, student loans matching 16.5money, industrial relations education, 16.6Natural Resources Research Institute, Center 16.7for Urban and Regional Affairs, and the Bell 16.8Museum of Natural History.

16.916.10(e) University of Minnesota and Mayo Foundation Partnership8,000,0008,000,000

16.11For the direct and indirect expenses of the 16.12collaborative research partnership between 16.13the University of Minnesota and the Mayo 16.14Foundation for research in biotechnology 16.15and medical genomics. This appropriation 16.16is available until expended. All parties to 16.17the partnership and chairs of the senate 16.18and house of representatives committees 16.19responsible for higher education finance 16.20must be consulted before the Board of 16.21Regents reduces the amount allocated to the 16.22partnership under this paragraph during the 16.23biennium ending June 30, 2011. An annual 16.24report on the expenditure of these funds must 16.25be submitted to the governor and the chairs 16.26of the senate and house of representatives 16.27committees responsible for higher education 16.28and economic development by June 30 of 16.29each fiscal year.

16.30Subd. 5.Federal Stimulus Appropriation115,731,000115,731,000

16.31(a) This appropriation is from the fiscal 16.32stabilization account in the federal fund and 16.33may be used for modernization, renovation, 16.34or repair of facilities that are primarily used 16.35for instruction, research, or student housing 17.1but may not be used for maintenance of 17.2systems, equipment, or facilities. Amounts 17.3in this subdivision must not be allocated 17.4to modernization, renovation, or repair of 17.5stadiums or other facilities primarily used 17.6for athletic contests or exhibitions or other 17.7events for which admission is charged to the 17.8general public and must not be allocated to 17.9any facility used for sectarian instruction or 17.10religious worship or in which a substantial 17.11portion of the functions of the facilities are 17.12subsumed in a religious mission. No amount 17.13from this appropriation may be allocated to 17.14increase endowment funds.17.15(b) Appropriations under this subdivision 17.16must be used as a bridge for budget 17.17reductions in the biennium ending June 30, 17.182013, and may be used to retain faculty and 17.19staff jobs, to provide severance and for early 17.20retirement incentives and to mitigate rising 17.21costs of attendance through minimizing 17.22tuition increases and support of student 17.23employment opportunities.17.24(c) The legislature intends that the net 17.25tuition increase for a Minnesota resident 17.26undergraduate student at the University of 17.27Minnesota must not exceed $300 per year 17.28for the biennium ending June 30, 2011. 17.29Appropriations of federal stimulus money 17.30under this subdivision must be used to 17.31accomplish this goal.17.32(d) $400,000 of this appropriation in fiscal 17.33year 2010 is for a grant to the Minnesota 17.34Wildlife Rehabilitation Center for their 18.1uncompensated expenses. This is a onetime 18.2appropriation.18.3(e) An additional $27,080,000 is appropriated 18.4in fiscal year 2009 from the stabilization 18.5account in the federal fund.

18.6Subd. 6.Academic Health Center

18.7The appropriation for Academic Health 18.8Center funding under Minnesota Statutes, 18.9section 297F.10, is $22,250,000 each year.

18.10Subd. 7.NRRI Research

18.11Notwithstanding Minnesota Statutes, section 18.12137.022, subdivision 4, the board may 18.13use up to $150,000 of the income credited 18.14to the permanent university fund from 18.15royalties from mining under state mineral 18.16leases to fund research at the Coleraine 18.17Minerals Research Laboratory of the Natural 18.18Resources Research Institute by taconite 18.19engineers who have been laid off by the 18.20mining industry.

18.21Subd. 8.Enrollment Increases

18.22Over the biennium ending June 30, 2011, 18.23the Board of Regents must increase 18.24the enrollment of Minnesota resident 18.25freshmen with the goal of reaching at 18.26least the proportion of Minnesota resident 18.27undergraduates enrolled in the University of 18.28Minnesota in the 2006-2007 academic year.

18.29Subd. 9.Human Cloning Prohibited

18.30(a) No appropriations under this section 18.31may be used to directly or indirectly support 18.32human cloning.19.1(b) For purposes of this subdivision, the 19.2following terms have the meanings given.19.3(1) "Human cloning" means human asexual 19.4reproduction accomplished by introducing 19.5nuclear material from one or more human 19.6somatic cells into a fertilized or unfertilized 19.7oocyte whose nuclear material has been 19.8removed or inactivated so as to produce a 19.9living organism at any stage of development 19.10that is genetically virtually identical to 19.11an existing or previously existing human 19.12organism.19.13(2) "Somatic cell" means a diploid cell, 19.14having a complete set of chromosomes, 19.15obtained or derived from a living or deceased 19.16human body at any stage of development.19.17(c) Nothing in this subdivision shall restrict 19.18areas of scientific research not specifically 19.19prohibited by this section.

19.20Sec. 6. MAYO CLINIC

19.21Subdivision 1.Total Appropriation$1,300,000$1,351,000

19.22The amounts that may be spent for each 19.23purpose are specified in the following 19.24subdivisions.

19.25Subd. 2.Medical School640,000665,000

19.26The state must pay a capitation each 19.27year for each student who is a resident 19.28of Minnesota. The appropriation may be 19.29transferred between years of the biennium to 19.30accommodate enrollment fluctuations.19.31It is intended that during the biennium the 19.32Mayo Clinic use the capitation money to 20.1increase the number of doctors practicing in 20.2rural Minnesota areas in need of doctors.

20.320.4Subd. 3.Family Practice and Graduate Residency Program660,000686,000

20.5The state must pay stipend support for up to 20.627 residents each year.20.7ARTICLE 220.8RELATED HIGHER EDUCATION20.9    Section 1. Minnesota Statutes 2008, section 135A.08, subdivision 1, is amended to 20.10read:20.11    Subdivision 1. Course equivalency. The Board of Regents of the University of 20.12Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities 20.13shall develop and maintain course equivalency guides for use between institutions that 20.14have a high frequency of transfer. The course equivalency guides must include information 20.15on the course equivalency and awarding of credit for learning acquired as a result of 20.16the successful completion of formal military courses and occupational training. Course 20.17equivalency guides shall are not be required for vocational technical programs that have 20.18not been divided into identifiable courses. The governing boards of private institutions 20.19that grant associate and baccalaureate degrees and that have a high frequency of transfer 20.20students are requested to participate in developing these guides.20.21    Sec. 2. Minnesota Statutes 2008, section 135A.25, subdivision 4, is amended to read:20.22    Subd. 4. Minnesota Office of Higher Education responsibilities.(a) For private 20.23postsecondary institutions, the Minnesota Office of Higher Education must develop 20.24educational materials considering the recommendations by the Minnesota Office of Higher 20.25Education and others and at least annually convene and sponsor meetings and workshops 20.26and provide educational strategies for faculty, students, administrators, institutions, and 20.27bookstores to inform all interested parties on strategies for reducing the costs of course 20.28materials for students attending postsecondary institutions.20.29    (b) The Minnesota Office of Higher Education must identify methods to compile and 20.30distribute information on publishers that sell or distribute course material for classroom use 20.31in postsecondary institutions in a manner that meets the requirements and complies with 20.32subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make 20.33this information available for use by students and faculty in postsecondary institutions.21.1    Sec. 3. [135A.26] AMERICAN MADE CLOTHING IN COLLEGE 21.2BOOKSTORES.21.3To the extent possible, a bookstore located on the campus of a public college or 21.4university in Minnesota must only offer for sale clothing or articles of apparel that are 21.5manufactured in the United States of America. The college or university must make a 21.6report to the legislature on the results of efforts made to comply with this section.21.7    Sec. 4. Minnesota Statutes 2008, section 136A.06, is amended to read:21.8136A.06 FEDERAL FUNDS.21.9The Minnesota Office of Higher Education is designated the state agency to apply 21.10for, receive, accept, and disburse to both public and private institutions of higher education 21.11all federal funds which are allocated to the state of Minnesota to support higher education 21.12programs, construction, or other activities and which require administration by a state 21.13higher education agency under the Higher Education Facilities Act of 1963, and any 21.14amendments thereof, the Higher Education Act of 1965, and any amendments thereof, and 21.15any other law which provides funds for higher education and requires administration by a 21.16state higher education agency as enacted or may be enacted by the Congress of the United 21.17States; provided that no commitment shall be made that shall bind the legislature to make 21.18appropriations beyond current allocations of funds. The office may apply for, receive, 21.19accept, and disburse all administrative funds available to the office for administering 21.20federal funds to support higher education programs, construction, or other activities. The 21.21office also may apply for, receive, accept, and disburse any research, planning, or program 21.22funds which are available for purposes consistent with the provisions of this chapter. In 21.23making application for and administering federal funds the office may comply with any 21.24and all requirements of federal law and federal rules and regulations to enable it to receive 21.25and accept such funds. The expenditure of any such funds received shall be governed by 21.26the laws of the state, except insofar as federal regulations may otherwise provide. The 21.27office may contract with both public and private institutions in administering federal 21.28funds, and such contracts shall not be subject to the provisions of chapter 16C. All such 21.29money received by the office shall be deposited in the state treasury and, subject to section 21.303.3005, are hereby appropriated to it annually for the purpose for which such funds are 21.31received. None of such moneys shall cancel but shall be available until expended.21.32    Sec. 5. Minnesota Statutes 2008, section 136A.08, subdivision 1, is amended to read:21.33    Subdivision 1. Definitions.(a) For the purposes of this section, the following terms21.34have the meanings given them.22.1(b) "Province" and "provincial" mean the Canadian province of Manitoba.22.2(c) "Resident of this state" means a resident student as defined in section 136A.101, 22.3subdivision 8.22.4    Sec. 6. Minnesota Statutes 2008, section 136A.08, is amended by adding a subdivision 22.5to read:22.6    Subd. 9.Appeal; resident status.A student who does not meet the definition of 22.7resident after residing in Minnesota for 12 months may appeal to the director by providing 22.8documentation on the student's reasons for residing in Minnesota. The director may 22.9grant resident status to the student upon determining the documentation establishes that 22.10postsecondary education was not the student's principle reason for residing in Minnesota.22.11    Sec. 7. Minnesota Statutes 2008, section 136A.101, subdivision 4, is amended to read:22.12    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 22.13educational institution located in this state or in a state with which the office has entered 22.14into a higher education reciprocity agreement on state student aid programs that (1)22.15requires, as a condition of enrollment, that each entering Minnesota resident student must 22.16complete the federal application for student aid (FAFSA), and is either (2) operated by 22.17this state or the Board of Regents of the University of Minnesota, or (2)(3) is operated 22.18privately and, as determined by the office, meets all of the following: (i) maintains 22.19academic standards substantially equivalent to those of comparable institutions operated 22.20in this state; (ii) is licensed or registered as a postsecondary institution by the office or 22.21another state agency; and (iii) by July 1, 2011, is participating in the federal Pell Grant 22.22program under Title IV of the Higher Education Act of 1965, as amended.22.23    Sec. 8. Minnesota Statutes 2008, section 136A.121, subdivision 5, is amended to read:22.24    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 22.25responsibility for covering the recognized cost of attendance by the applicant, the 22.26applicant's family, and the government. The amount of a financial stipend must not 22.27exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 22.28deducting the following:22.29(1) the assigned student responsibility of at least 4645 percent of the cost of 22.30attending the institution of the applicant's choosing;22.31(2) the assigned family responsibility as defined in section 
         136A.101; and 22.32(3) the amount of a federal Pell grant award for which the grant applicant is eligible.22.33The minimum financial stipend is $100 per academic year.23.1    Sec. 9. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:23.2    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of 23.3allowances specified in law for living and miscellaneous expenses, and an allowance for 23.4tuition and fees equal to the lesser of the average tuition and fees charged by the institution, 23.5or the tuition and fee maximums established in law. The tuition and fee maximum for a 23.6student enrolled in a two-year program is the maximum tuition and fee amount charged at 23.7a two-year college within the Minnesota State Colleges and Universities. The tuition and 23.8fee maximum for a student enrolled in a four-year program shall be set in law.23.9(b) For a student registering for less than full time, the office shall prorate the cost of 23.10attendance to the actual number of credits for which the student is enrolled.23.11(c) The recognized cost of attendance for a student who is confined to a Minnesota 23.12correctional institution shall consist of the tuition and fee component in paragraph (a), 23.13with no allowance for living and miscellaneous expenses.23.14(d) For the purpose of this subdivision, "fees" include only those fees that are 23.15mandatory and charged to full-time resident students attending the institution. Fees do 23.16not include charges for tools, equipment, computers, or other similar materials where the 23.17student retains ownership. Fees include charges for these materials if the institution retains 23.18ownership. Fees do not include optional or punitive fees.23.19    Sec. 10. Minnesota Statutes 2008, section 136A.121, subdivision 9, is amended to read:23.20    Subd. 9. Awards. An undergraduate student who meets the office's requirements 23.21is eligible to apply for and receive a grant in any year of undergraduate study unless the 23.22student has obtained a baccalaureate degree or previously has been enrolled full time or 23.23the equivalent for eightten semesters or the equivalent, excluding courses taken from a 23.24Minnesota school or postsecondary institution which is not participating in the state grant 23.25program and from which a student transferred no credit. A student who withdraws from 23.26enrollment for active military service is entitled to an additional semester or the equivalent 23.27of grant eligibility. A student enrolled in a two-year program at a four-year institution is 23.28only eligible for the tuition and fee maximums established by law for two-year institutions.23.29    Sec. 11. Minnesota Statutes 2008, section 136A.1701, subdivision 10, is amended to 23.30read:23.31    Subd. 10. Prohibition on use of state money.Except as provided in section 23.32136A.1787, paragraph (a), no money originating from state sources in the state treasury 23.33shall be made available for student loans under this section and all student loans shall be 23.34made from money originating from nonstate sources.24.1    Sec. 12. [136A.1787] SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE 24.2OF NEED.24.3(a) In order to ensure the payment of the principal of and interest on bonds and 24.4notes of the office and the continued maintenance of the loan capital fund under section 24.5136A.1785, the office shall annually determine and certify to the governor, on or before 24.6December 1, the amount, if any:24.7(1) needed to restore the loan capital fund to the minimum amount required by a 24.8resolution or indenture relating to any bonds or notes of the office, not exceeding the 24.9maximum amount of principal and interest to become due and payable in any subsequent 24.10year on all bonds or notes which are then outstanding; 24.11(2) determined by the office to be needed in the immediately ensuing fiscal year, with 24.12other funds pledged and estimated to be received during that year, for the payment of the 24.13principal and interest due and payable in that year on all outstanding bonds and notes; and 24.14(3) needed to restore any debt service fund securing any outstanding bonds or 24.15notes of the office to the amount required in a resolution or indenture relating to such 24.16outstanding bonds or notes.24.17(b) The governor shall include and submit the amounts certified by the office in 24.18accordance with this section to the legislature in the budget for the following fiscal year, or 24.19in a supplemental budget if the regular budget for that year has previously been approved.24.20    Sec. 13. [136A.1795] LARGE ANIMAL VETERINARIAN LOAN 24.21FORGIVENESS PROGRAM.24.22    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 24.23have the meanings given.24.24(b) "Veterinarian" means an individual who has been awarded a doctor of veterinary 24.25medicine degree from the College of Veterinary Medicine, University of Minnesota.24.26(c) "Designated rural area" means an area in Minnesota outside the counties of 24.27Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of 24.28Duluth, Mankato, Moorhead, Rochester, and St. Cloud.24.29(d) "Emergency circumstances" means those conditions that make it impossible for 24.30the participant to fulfill the service commitment, including death, total and permanent 24.31disability, or temporary disability lasting more than two years.24.32(e) "Qualified educational loan" means a government, commercial, or foundation 24.33loan for actual costs paid for tuition, reasonable education expenses, and reasonable living 24.34expenses related to the education of a veterinarian.25.1    Subd. 2.Establishment; administration.(a) The director of the Minnesota Office 25.2of Higher Education shall establish and administer a loan forgiveness program for large 25.3animal veterinarians who:25.4(1) agree to practice in designated rural areas that are considered underserved; and25.5(2) work full time in a practice that is at least 50 percent involved with the care of 25.6food animals.25.7(b) Appropriations made to the program do not cancel and are available until 25.8expended.25.9    Subd. 3.Eligibility.(a) To be eligible to participate in the loan forgiveness program, 25.10an individual must:25.11(1) be a veterinarian who has been awarded a veterinary medicine degree within 25.12three years of submitting an application under this section, or be enrolled in the 25.13veterinarian degree program and making satisfactory progress in the College of Veterinary 25.14Medicine, University of Minnesota; and25.15(2) submit an application to the director of the Minnesota Office of Higher Education 25.16in the form and manner prescribed by the director.25.17(b) An applicant selected to participate must sign a contract agreeing to complete a 25.18five-year service obligation to practice as required under subdivision 2, paragraph (a).25.19    Subd. 4.Loan forgiveness.(a) The director of the Minnesota Office of Higher 25.20Education may select a maximum of five applicants each year for participation in the loan 25.21forgiveness program, within the limits of available funding. Applicants are responsible for 25.22securing their own qualified educational loans.25.23(b) The director must select participants based on their suitability for practice serving 25.24the designated rural area, as indicated by experience or training. The director must give 25.25preference to applicants closest to completing their training.25.26(c) The director must make annual disbursements directly to the participant of 25.27$15,000 or the balance of the participant's qualifying educational loans, whichever is less, 25.28for each year that a participant meets the service obligation required under subdivision 3, 25.29paragraph (b), up to a maximum of five years.25.30(d) Before receiving loan repayment disbursements and as requested, the participant 25.31must complete and return to the director an affidavit of practice form provided by the 25.32director verifying that the participant is practicing as required under subdivision 2, 25.33paragraph (a). The participant must provide the director with verification that the full 25.34amount of loan repayment disbursement received by the participant has been applied 25.35toward the designated loans. After each disbursement, verification must be received by 25.36the director and approved before the next loan repayment disbursement is made.26.1(e) Participants who move their practice remain eligible for loan repayment as long 26.2as they practice as required under subdivision 2, paragraph (a).26.3    Subd. 5.Penalty for nonfulfillment.If a participant does not fulfill the required 26.4minimum commitment of service required under subdivision 3, paragraph (b), the director 26.5of the Minnesota Office of Higher Education must collect from the participant the total 26.6amount paid to the participant under the loan forgiveness program plus interest at a rate 26.7established according to section 270C.40. The director must deposit the money collected 26.8in the state general fund. The director must allow waivers of all or part of the money owed 26.9the director as a result of a nonfulfillment penalty if emergency circumstances prevented 26.10fulfillment of the service obligation.26.11    Subd. 6.Rules.The director may adopt rules to implement this section.26.12    Sec. 14. Minnesota Statutes 2008, section 136F.02, subdivision 1, is amended to read:26.13    Subdivision 1.  Membership. The board consists of 15 members appointed by the 26.14governor elected by the legislature in a joint convention, including three members who are 26.15students who have attended an institution for at least one year and are currently enrolled at 26.16least half time in a degree, diploma, or certificate program in an institution governed by 26.17the board. The student members shall include one member from a community college, one 26.18member from a state university, and one member from a technical college. One member 26.19representing labor must be appointed after considering the recommendations made under 26.20section 136F.045. The governor is not bound by the recommendations. Appointments to 26.21the board are with the advice and consent of the senate. At least one member of the board 26.22must be a resident of each congressional district. All other members must be appointed26.23elected to represent the state at large. In selecting appointees, the governor must consider 26.24the needs of the board of trustees and the balance of the board membership with respect to 26.25labor and business representation and racial, gender, geographic, and ethnic composition.26.26    Sec. 15. Minnesota Statutes 2008, section 136F.04, is amended to read:26.27136F.04 STUDENT BOARD MEMBER SELECTION.26.28    Subdivision 1. Responsibility.Notwithstanding section 136F.03, The State 26.29University Student Association and the State College Student Association shall each have 26.30the responsibility for recruiting, screening, and recommending qualified candidates to the 26.31joint committee for their student members of the board.26.32    Subd. 2. Criteria.After consulting with the Board of Trustees Candidate Advisory 26.33Council, The student associations shall jointly develop a statement of the selection criteria 26.34to be applied to potential candidates.27.1    Subd. 3. Recruiting and screening. Each student association shall develop 27.2processes for identifying and recruiting qualified candidates and for screening those 27.3candidates.27.4    Subd. 4. Recommendations. Each student association shall recommend at least 27.5two and not more than four candidates for its student member. By April 15 February 15 27.6 of the even-numbered year in which its members' term expires, each student association 27.7shall submit its recommendations to the governor joint committee. The governor is not 27.8bound by these recommendations.27.9    Sec. 16. Minnesota Statutes 2008, section 136F.045, is amended to read:27.10136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION 27.11PROCESS. 27.12    The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to be 27.13recommended to the governor for appointment joint committee for election to the board. 27.14The organization must develop a process for selecting candidates, and a statement of 27.15selection criteria for board membership that is consistent with the requirements under 27.16section 
         136F.02, subdivision 1. The organization must recommend at least two and no 27.17more than four candidates to the governorjoint committee beginning in 2010 and every 27.18six years thereafter. Recommendations must be made by April 15 February 15 of the 27.19even-numbered year in which the governor makes appointments joint committee makes 27.20recommendations for candidates to be elected to the board. The governor is not bound 27.21by the recommendations.27.22    Sec. 17. [136F.047] TRUSTEE NOMINATION AND ELECTION.27.23    Subdivision 1.Joint legislative committee. The joint legislative committee consists 27.24of the members of the higher education budget and policy divisions in each body of the 27.25legislature. The chairs of the divisions from each body shall be cochairs of the joint 27.26legislative committee. A majority of the members from each body is a quorum of the 27.27joint committee.27.28    Subd. 2.Meeting.By March 15 of each odd-numbered year, or at a date agreed 27.29to by concurrent resolution, the joint legislative committee shall meet to consider 27.30recommendations for trustee of the Minnesota State Colleges and Universities for 27.31possible presentation to a joint convention of the legislature. The joint committee 27.32must meet as many times as necessary for the purpose of interviewing candidates, 27.33recommending candidates for the joint committee to consider, and voting for candidates 27.34for recommendation to the joint convention.28.1    Subd. 3.RecommendationsThe joint committee may recommend to the joint 28.2convention candidates nominated by the joint committee. If a vacancy exists for a 28.3student board member or a member recommended under this section, the joint committee 28.4must consider the recommendations made by the responsible organizations to the joint 28.5committee for those vacancies. Candidates for any vacancy may be nominated for 28.6consideration by the joint committee only if the nomination receives the support of at least 28.7three house of representatives members of the committee and two senate members of the 28.8committee. A candidate must receive a majority vote of members from the house of 28.9representatives on the joint committee and from the senate on the joint committee to be 28.10recommended to the joint convention. The joint committee may recommend no more than 28.11two candidates for each vacancy. In recommending candidates to the joint convention, the 28.12joint committee must consider the needs of the board of trustees and the balance of the 28.13board membership with respect to gender, racial, and ethnic composition.28.14    Sec. 18. Minnesota Statutes 2008, section 136F.46, subdivision 3, is amended to read:28.15    Subd. 3. Solicitation. Efforts to secure payroll deductions authorized in subdivision 28.161 may not interfere with, require a modification of, nor be conducted during the period of 28.17a payroll deduction fund drive for employees authorized by section 
         309.501 43A.50.  28.18    Sec. 19. [136F.705] UNDERGRADUATE TUITION GUARANTEE.28.19(a) A Minnesota resident student who first enrolls in a degree program at a state 28.20college or university beginning in the fall of 2010 or later must be offered the opportunity 28.21to participate in a stable tuition plan, according to this section, for up to four consecutive 28.22academic years. 28.23(b) For an undergraduate student enrolled in a baccalaureate degree program at a 28.24state university, the tuition charged to the student for each semester of enrollment during 28.25a four-year period, beginning with the first semester of enrollment, must not exceed the 28.26amount of tuition that the student was charged for the first semester of enrollment. For a 28.27student who continues to be enrolled after four consecutive academic years, the tuition 28.28rate for each semester in excess of four years is equal to the tuition rate paid by new 28.29enrollees at the state university. 28.30(c) For an undergraduate student enrolled in an associate degree program at a college, 28.31the tuition charged to the student for each semester of enrollment during a two-year period, 28.32beginning with the first semester of enrollment, must not exceed the amount of tuition that 28.33the student was charged for the first semester of enrollment. For a student who continues 29.1to be enrolled after two consecutive academic years, the tuition rate for each semester in 29.2excess of two years is equal to the tuition rate for new enrollees at the college.29.3    Sec. 20. [137.0225] UNIVERSITY SCHOLARSHIP.29.4    The Board of Regents may establish a scholarship to help offset the impact of 29.5rising tuition for Minnesota students from middle-income families. To be eligible for a 29.6scholarship under this section, a student must be a Minnesota resident undergraduate 29.7from a family that is not Pell eligible with an annual adjusted gross income not to exceed 29.8$100,000.29.9    Sec. 21. Minnesota Statutes 2008, section 137.0246, subdivision 2, is amended to read:29.10    Subd. 2. Regent nomination joint committee. (a) The joint legislative committee 29.11consists of the members of the higher education budget and policy divisions in each house 29.12of the legislature. The chairs of the divisions from each body shall be cochairs of the 29.13joint legislative committee. A majority of the members from each house is a quorum of 29.14the joint committee.29.15    (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 29.16resolution, the joint legislative committee shall meet to consider the advisory council's29.17recommendations for regent of the University of Minnesota for possible presentation to a 29.18joint convention of the legislature.29.19    (c) The joint committee may recommend to the joint convention candidates 29.20recommended by the advisory council and the other candidates nominated by the joint 29.21committee. A candidate other than those recommended by the advisory council may be 29.22nominated for consideration by the joint committee only if the nomination receives the 29.23support of at least three house of representatives members of the committee and two senate 29.24members of the committee. A candidate must receive a majority vote of members from the 29.25house of representatives and from the senate on the joint committee to be recommended to 29.26the joint convention. The joint committee may recommend no more than one candidate29.27two candidates for each vacancy. In recommending nominees, the joint committee must 29.28consider the needs of the board of regents and the balance of the board membership with 29.29respect to gender, racial, and ethnic composition.29.30    (d) The joint committee must meet twice, approximately one week apart. The first 29.31meeting is for the purpose of interviewing candidates and recommending candidates for 29.32the joint committee to consider. The second meeting is for the purpose of voting for 29.33candidates for recommendation to the joint convention.30.1    Sec. 22. Minnesota Statutes 2008, section 137.025, subdivision 1, is amended to read:30.2    Subdivision 1. Appropriations not for buildings.The commissioner of finance 30.3shall pay no money to the University of Minnesota pursuant to a direct appropriation, other 30.4than an appropriation for buildings, until the university first certifies to the commissioner 30.5of finance that its aggregate balances in the temporary investment pool, cash, or separate 30.6investments, resulting from all state maintenance and special appropriations do not 30.7exceed $7,000,000, or any other amount specified in the act making the appropriation, 30.8plus one-third of all tuition and fee payments from the previous fiscal year. Upon this 30.9certification, The commissioner of finance shall pay 1/12 of the annual appropriation to 30.10the university shall be paid at the beginning on the 21st day of each month. Additional 30.11payments shall be made by the commissioner of finance whenever the state appropriations 30.12and tuition aggregate balances in the temporary investment pool, cash, or separate 30.13investments are reduced below the indicated levels. If the 21st day of the month falls on 30.14a Saturday or Sunday, the monthly payment shall be made on the Monday immediately 30.15following the 21st.30.16    Sec. 23. [137.105] UNDERGRADUATE TUITION GUARANTEE.30.17A Minnesota resident student who first enrolls in a degree program at the University 30.18of Minnesota beginning in the fall of 2010 or later must be offered the opportunity to 30.19participate in a stable tuition plan, according to this section, for up to four consecutive 30.20academic years. For an undergraduate student enrolled in a baccalaureate degree program, 30.21the tuition charged to the student for each semester of enrollment during a four-year 30.22period, beginning with the first semester of enrollment, must not exceed the amount of 30.23tuition that the student was charged for the first semester of enrollment. For a student 30.24who continues to be enrolled after four consecutive academic years, the tuition rate for 30.25each semester in excess of four years is equal to the tuition rate paid by new enrollees 30.26at the University of Minnesota.30.27    Sec. 24. [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.30.28    Subdivision 1.Purpose.In order to support and create environments surrounding 30.29the campuses of the University of Minnesota in Minneapolis and Duluth that are 30.30conducive to the purposes of higher education and vital communities, the Board of 30.31Regents, the city of Minneapolis, and the city of Duluth are requested to create with 30.32surrounding neighborhoods an appropriate organization in each city, to cooperate in the 30.33development of those neighborhoods. The purpose of each organization is to improve 31.1the university's Minneapolis and Duluth campus area neighborhoods including, without 31.2limitation, the following:31.3(1) providing and supporting the development of good quality university 31.4neighborhood housing, including housing for students, faculty, employees, alumni, and 31.5others who may wish to live in the university area neighborhoods;31.6(2) encouraging and assisting university faculty, staff, students, and others to live in 31.7the neighborhood as long-term residents;31.8(3) supporting and assisting appropriate business development in commercial areas 31.9of the neighborhood; and31.10(4) cooperating and coordinating planning and development in all matters affecting 31.11the neighborhood with local government, businesses, residents, and other stakeholders in 31.12the neighborhood.31.13    Subd. 2.Membership.The organization created by the Board of Regents and 31.14the city of Minneapolis shall include representatives from the organizations currently 31.15represented on the University District Alliance Steering Committee. The Board of 31.16Regents and the city of Duluth may establish the membership of an organization for the 31.17purposes of subdivision 1.31.18    Subd. 3.Report.The Board of Regents, the city of Minneapolis, and the city 31.19of Duluth are requested to report by January 15, 2010, to the chairs of the legislative 31.20committees with primary jurisdiction over higher education policy and finance on the 31.21status and activities of the organization that is created.31.22    Sec. 25. Minnesota Statutes 2008, section 179A.03, subdivision 14, is amended to read:31.23    Subd. 14. Public employee or employee. "Public employee" or "employee" means 31.24any person appointed or employed by a public employer except:31.25(a) elected public officials;31.26(b) election officers;31.27(c) commissioned or enlisted personnel of the Minnesota National Guard;31.28(d) emergency employees who are employed for emergency work caused by natural 31.29disaster;31.30(e) part-time employees whose service does not exceed the lesser of 14 hours per 31.31week or 35 percent of the normal work week in the employee's appropriate unit;31.32(f) employees whose positions are basically temporary or seasonal in character and: 31.33(1) are not for more than 67 working days in any calendar year; or (2) are not for more 31.34than 100 working days in any calendar year and the employees are under the age of 22, are 31.35full-time students enrolled in a nonprofit or public educational institution prior to being 32.1hired by the employer, and have indicated, either in an application for employment or by 32.2being enrolled at an educational institution for the next academic year or term, an intention 32.3to continue as students during or after their temporary employment;32.4(g) employees providing services for not more than two consecutive quarters to the 32.5Board of Trustees of the Minnesota State Colleges and Universities under the terms of a 32.6professional or technical services contract as defined in section 
         16C.08, subdivision 1;32.7(h) employees of charitable hospitals as defined by section 
         179.35, subdivision 3;32.8(i) full-time undergraduate students employed by the school which they attend under 32.9a work-study program or in connection with the receipt of financial aid, irrespective 32.10of number of hours of service per week;32.11(j) an individual who is employed for less than 300 hours in a fiscal year as an 32.12instructor in an adult vocational education program;32.13(k) an individual hired by the Board of Trustees of the Minnesota State Colleges and 32.14Universities to teach one course for three or fewer credits for one semester in a year;32.15(l) with respect to court employees:32.16(1) personal secretaries to judges;32.17(2) law clerks;32.18(3) managerial employees;32.19(4) confidential employees; and32.20(5) supervisory employees;32.21(m) with respect to employees of Hennepin Healthcare System, Inc., managerial, 32.22supervisory, and confidential employees.32.23The following individuals are public employees regardless of the exclusions of 32.24clauses (e) and (f):32.25(i) An employee hired by a school district or the Board of Trustees of the Minnesota 32.26State Colleges and Universities except at the university established in section 136F.1332.27the Twin Cities metropolitan area under section 136F.10 or for community services or 32.28community education instruction offered on a noncredit basis: (A) to replace an absent 32.29teacher or faculty member who is a public employee, where the replacement employee 32.30is employed more than 30 working days as a replacement for that teacher or faculty 32.31member; or (B) to take a teaching position created due to increased enrollment, curriculum 32.32expansion, courses which are a part of the curriculum whether offered annually or not, or 32.33other appropriate reasons;32.34(ii) An employee hired for a position under clause (f)(1) if that same position has 32.35already been filled under clause (f)(1) in the same calendar year and the cumulative 32.36number of days worked in that same position by all employees exceeds 67 calendar days 33.1in that year. For the purpose of this paragraph, "same position" includes a substantially 33.2equivalent position if it is not the same position solely due to a change in the classification 33.3or title of the position; and33.4(iii) an early childhood family education teacher employed by a school district.33.5    Sec. 26. Minnesota Statutes 2008, section 299A.45, subdivision 4, is amended to read:33.6    Subd. 4. Renewal. Each award must be given for one academic year and is 33.7renewable for a maximum of eightten semesters or the equivalent. A student who 33.8withdraws from enrollment for active military service is entitled to an additional semester 33.9or the equivalent of grant eligibility. An award must not be given to a dependent child 33.10who is 23 years of age or older on the first day of the academic year.33.11    Sec. 27. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to 33.12read:33.13    Subd. 4a. State-owned recreation; entertainment facilities. Notwithstanding any 33.14other law, local ordinance, or charter provision, the commissioner may issue on-sale 33.15intoxicating liquor licenses:33.16    (1) to the state agency administratively responsible for, or to an entity holding a 33.17concession or facility management contract with such agency for beverage sales at, the 33.18premises of any Giants Ridge Recreation Area building or recreational improvement area 33.19owned by the state in the town of White city of Biwabik, St. Louis County;33.20    (2) to the state agency administratively responsible for, or to an entity holding a 33.21concession or facility management contract with such agency for beverage sales at, the 33.22premises of any Ironworld Discovery Center building or facility owned by the state at 33.23Chisholm; and33.24    (3) to the Board of Regents of the University of Minnesota for events at Northrop 33.25Auditorium, the intercollegiate football stadium, or at no more than seven other locations 33.26within the boundaries of the University of Minnesota, provided that the Board of Regents 33.27has approved an application for a license for the specified location and provided that 33.28the application for a stadium or arena location allows for the legal sale of intoxicating 33.29liquor throughout the stadium or arena and does not limit the sale of intoxicating liquor to 33.30premium seating areas or suites.33.31    The commissioner shall charge a fee for licenses issued under this subdivision in an 33.32amount comparable to the fee for comparable licenses issued in surrounding cities.33.33EFFECTIVE DATE.This section is effective the day following final enactment 33.34and applies to applications for an on-sale liquor license made after December 1, 2008.34.1    Sec. 28. REPORT; FEDERAL TEXTBOOK INFORMATION 34.2REQUIREMENTS.34.3By January 15, 2010, the Minnesota Office of Higher Education must report 34.4to the committees of the legislature responsible for higher education finance on the 34.5implementation of textbook information requirements under United States Code, title 20, 34.6section 1015b, effective July 1, 2010. In preparing the report, the office must work with 34.7representatives of textbook publishers, the Student Advisory Council, Minnesota State 34.8Colleges and Universities, the University of Minnesota, and the Private College Council. 34.9At a minimum, the report must include a template that publishers may use to provide 34.10the required information in a consistent format to all Minnesota campuses, and make 34.11recommendations of methods to disseminate pricing information to support students and 34.12faculty in making well informed decisions about course materials.34.13    Sec. 29. MINNESOTA STATE COLLEGE - SOUTHEAST TECHNICAL; 34.14AVIATION TRAINING CENTER.34.15    Notwithstanding Minnesota Statutes, section 136F.60, subdivision 5, the net 34.16proceeds of the sale or disposition of the Aviation Training Center in Winona operated by 34.17Minnesota State College - Southeast Technical, after paying all expenses incurred in selling 34.18the property and retiring any remaining debt attributable to the project, are appropriated to 34.19the Board of Trustees of the Minnesota State Colleges and Universities for use in a capital 34.20project at the Winona campus and need not be paid to the commissioner of finance, as 34.21would otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3.34.22    When the sale is complete and the sale proceeds have been applied as provided in 34.23this section, Minnesota Statutes, section 16A.695, no longer applies to the property and 34.24the property is no longer state bond financed property.34.25    Sec. 30. MINNESOTA STATE COLLEGES AND UNIVERSITIES DEGREE 34.26REQUIREMENTS.34.27Until July 2, 2012, an associate of applied science degree offered by a college in 34.28the Minnesota State Colleges and Universities system is exempt from the 60-semester 34.29credit length limit for an associate degree specified in the Minnesota State Colleges and 34.30Universities Board Policy number 3.36, part 3, subpart C. The chancellor may consider 34.31criteria for waiving the credit length limits under this board policy for emerging or 34.32innovative programs. By January 2, 2012, the Minnesota State College Faculty and the 34.33Minnesota State College Student Association must present a joint report to the house of 35.1representatives and senate committees with jurisdiction over higher education policy on a 35.2process for reviewing the credit requirements for an associate of applied science degree.35.3EFFECTIVE DATE.This section is effective the day following final enactment 35.4and applies to associate of applied science degrees whether first offered before, on, or 35.5after that date.35.6    Sec. 31. POWER OF YOU PILOT PROGRAMS.35.7    Subdivision 1.Power of you pilot programs.The Board of Trustees of the 35.8Minnesota State Colleges and Universities shall establish power of you pilot programs in 35.9suburban and rural sites. The pilots shall comply with Minnesota Statutes, section 136F.19.35.10    Subd. 2.Suburban pilot selection.By July 1, 2009, the board of trustees shall 35.11select one technical college and one community college or community-technical college 35.12in the Minneapolis-St. Paul suburban area to develop a new power of you pilot program 35.13in conjunction with Metropolitan State University. Each college in the pilot program 35.14must work with a high school partner selected by the board in the Minneapolis-St. Paul 35.15suburban area.35.16    Subd. 3.Rural pilot selection.By July 1, 2009, the Board of Trustees shall select 35.17two rural colleges to participate in the power of you pilot programs. One of the pilot 35.18programs must be a multicampus college in an agricultural part of the state and the other a 35.19multicampus college in a nonagricultural part of the state dependent on natural resources. 35.20Each college in the pilot program must work with a high school partner selected by the 35.21board.35.22EFFECTIVE DATE.This section is effective the day following final enactment.35.23    Sec. 32.  REPEALER.35.24Minnesota Statutes 2008, sections 136A.127; 136F.03; and 137.0245, are repealed.35.25    Sec. 33. EFFECTIVE DATE.35.26Sections 1 to 5 are effective the day following final enactment.