1.1 	A bill for an act
1.2 	relating to higher education; amending postsecondary education provisions; 
1.3 	requiring reports; changing Minnesota college savings plan matching grants; 
1.4 	making technical changes; modifying definitions; setting requirements for 
1.5 	credit transfer; providing stable undergraduate tuition rates; modifying achieve 
1.6 	scholarship program; requiring a study of graduate education in for-profit sector; 
1.7 	repealing certain provisions related to equipment and apparel; appropriating 
1.8 	money;amending Minnesota Statutes 2010, sections 135A.51, subdivision 2; 
1.9 	136A.121, subdivision 6; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, 
1.10 	subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes, 
1.11 	chapters 136F; 137; repealing Minnesota Statutes 2010, sections 135A.26; 
1.12 	136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, chapter 
1.13 	95, article 2, section 39.
1.14 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.15 	ARTICLE 1
1.16 	HIGHER EDUCATION APPROPRIATIONS

1.17	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.18 		Subdivision 1.Summary By Fund. The amounts shown in this subdivision 
1.19 	summarize direct appropriations, by fund, made in this article.

1.20	SUMMARY BY FUND
	
1.21			2012
		2013
		Total
	
1.22	General
	$
	1,252,884,000
	$
	1,252,633,000
	$
	2,505,517,000
	
1.23	Health Care Access
		2,157,000
		2,157,000
		4,314,000

1.24	Total
	$
	1,255,041,000
	$
	1,254,790,000
	$
	2,509,831,000
	
1.25 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
1.26 	summarize direct appropriations, by agency, made in this article.

2.1	SUMMARY BY AGENCY - ALL FUNDS
	
2.2			2012
		2013
		Total
	
2.3
2.4	Minnesota Office of Higher 
Education
	$
	193,008,000
	$
	192,757,000
	$
	385,765,000
	
2.5	Mayo Medical Foundation
		1,351,000
		1,351,000
		2,702,000
	
2.6
2.7
2.8	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		529,839,000
		529,839,000
		1,059,678,000
	
2.92.10
	Board of Regents of the 
University of Minnesota
		530,843,000
		530,843,000
		1,061,686,000
	
2.11	Total
	$
	1,255,041,000
	$
	1,254,790,000
	$
	2,509,831,000

2.12	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.13 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.14 	agencies and for the purposes specified in this article. The appropriations are from the 
2.15 	general fund, or another named fund, and are available for the fiscal years indicated 
2.16 	for each purpose. The figures "2012" and "2013" used in this article mean that the 
2.17 	appropriations listed under them are available for the fiscal year ending June 30, 2012, or 
2.18 	June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 
2.19 	year 2013. "The biennium" is fiscal years 2012 and 2013.

2.20				APPROPRIATIONS
	
2.21				Available for the Year
	
2.22				Ending June 30
	
2.23					2012
		2013

2.24
2.25	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.26	Subdivision 1.Total Appropriation
 	$
	193,008,000
	$
	192,757,000
	
2.27 	The amounts that may be spent for each 
2.28 	purpose are specified in the following 
2.29 	subdivisions.

2.30	Subd. 2.State Grants
 		157,700,000
		157,700,000
	
2.31 	If the appropriation in this subdivision for 
2.32 	either year is insufficient, the appropriation 
2.33 	for the other year is available for it.
2.34 	For the biennium, the tuition maximum 
2.35 	is $10,488 in each year for students in 
2.36 	four-year programs, and $5,808 for students 
2.37 	in two-year programs.
3.1 	This appropriation sets the living and 
3.2 	miscellaneous expense allowance at $7,000 
3.3 	each year.

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

3.13	Subd. 4.Child Care Grants
 		6,684,000
		6,684,000

3.14	Subd. 5.State Work-Study
 		14,060,000
		14,060,000

3.15	Subd. 6.Indian Scholarships
 		1,900,000
		1,900,000
	
3.16 	This appropriation includes funding each 
3.17 	year to administer the Indian scholarship 
3.18 	program.

3.19
3.20	Subd. 7.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
3.21 	For grants under Minnesota Statutes, 
3.22 	section 136A.861. Up to $50,000 of this 
3.23 	appropriation each year may be used for 
3.24 	administrative expenses.

3.25	Subd. 8.Midwest Higher Education Compact
 		95,000
		95,000

3.26	Subd. 9.Interstate Tuition Reciprocity
 		3,150,000
		3,250,000
	
3.27 	If the appropriation in this subdivision for 
3.28 	either year is insufficient, the appropriation 
3.29 	for the other year is available to meet 
3.30 	reciprocity contract obligations.

3.31	Subd. 10.Minnesota College Savings Plan
 		350,000
		-0-

3.32	Subd. 11.MnLINK Gateway and Minitex
 		5,730,000
		5,730,000

4.1	Subd. 12.Student and Parent Information
 		119,000
		118,000

4.2	Subd. 13.Get Ready
 		175,000
		175,000

4.3	Subd. 14.Minnesota Minority Partnership
 		43,000
		43,000

4.4	Subd. 15.Agency Administration
 		2,231,000
		2,231,000

4.5	Subd. 16.Balances Forward
 					
4.6 	A balance in the first year under this section 
4.7 	does not cancel, but is available for the 
4.8 	second year.

4.9	Subd. 17.Transfers
 					
4.10 	The Minnesota Office of Higher Education 
4.11 	may transfer unencumbered balances from 
4.12 	the appropriations in this section to the state 
4.13 	grant appropriation, the interstate tuition 
4.14 	reciprocity appropriation, the child care 
4.15 	grant appropriation, the Indian scholarship 
4.16 	appropriation, the state work-study 
4.17 	appropriation, and the public safety officers' 
4.18 	survivors appropriation. Transfers from the 
4.19 	child care or state work-study appropriations 
4.20 	may only be made to the extent there is a 
4.21 	projected surplus in the appropriation. A 
4.22 	transfer may be made only with prior written 
4.23 	notice to the chairs of the senate and house of 
4.24 	representatives committees with jurisdiction 
4.25 	over higher education finance.

4.26
4.27
4.28	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

4.29	Subdivision 1.Total Appropriation
 	$
	529,839,000
	$
	529,839,000

4.30	Appropriations by Fund
	
4.31		2012
	2013
	
4.32	General
	529,839,000
	529,839,000
	
5.1 	The amounts that may be spent for each 
5.2 	purpose are specified in the following 
5.3 	subdivisions.

5.4
5.5	Subd. 2.Central Office and Shared Services 
Unit
 		40,000,000
		40,000,000
	
5.6 	For the Office of the Chancellor and the 
5.7 	Shared Services Division.
5.8 	Any reductions in the amount of 
5.9 	appropriations under this subdivision and 
5.10 	the appropriations for the Office of the 
5.11 	Chancellor and the Shared Services Division 
5.12 	in the biennium ending June 30, 2011, 
5.13 	must not be allocated to any institution and 
5.14 	must not be charged back to any campus or 
5.15 	institution.
5.16 	Any new transformational initiatives for the 
5.17 	Minnesota State Colleges and Universities 
5.18 	undertaken by the Board of Trustees during 
5.19 	fiscal years 2012 and 2013 must be funded 
5.20 	out of the direct appropriation for the central 
5.21 	office and shared services. None of the 
5.22 	direct appropriations for operation and 
5.23 	maintenance of the Minnesota State Colleges 
5.24 	and Universities may be used for new 
5.25 	transformational initiatives in the biennium 
5.26 	ending June 30, 2013.

5.27	Subd. 3.Operations and Maintenance
 		485,669,000
		485,669,000
	
5.28 	$102,000 each year is for the Cook 
5.29 	County Higher Education Board to provide 
5.30 	educational programs and academic support 
5.31 	services. The base appropriation under this 
5.32 	paragraph is $102,000.
5.33 	One percent of the fiscal year 2013 
5.34 	appropriation in this subdivision is available 
6.1 	in fiscal year 2013 after the Board of 
6.2 	Trustees of the Minnesota State Colleges 
6.3 	and Universities demonstrates to the 
6.4 	commissioner of management and budget 
6.5 	that the board has achieved at least three of 
6.6 	the following five performance goals:
6.7 	(1) increase by at least seven  percent, 
6.8 	compared to fiscal year 2009, graduates or 
6.9 	degrees, diplomas and certificates conferred;
6.10 	(2) increase by at least ten percent, compared 
6.11 	to fiscal year 2010, the number of students 
6.12 	of color;
6.13 	(3) increase by at least fifteen percent, 
6.14 	compared to fiscal year 2010, the full year 
6.15 	equivalent enrollment of students taking 
6.16 	online or blended courses or the number of 
6.17 	online and blended sections;
6.18 	(4) increase by at least one percent the fall 
6.19 	2011 persistence and completion rate for fall 
6.20 	2010 entering students compared to the fall 
6.21 	2010 rate for fall 2009 entering students; and
6.22 	(5) decrease by at least three percent, 
6.23 	compared to calendar year 2009, total energy 
6.24 	consumption.
6.25 	By October 1, 2011, the Board of Trustees 
6.26 	and the Minnesota Office of Higher 
6.27 	Education must agree on specific numerical 
6.28 	indicators and definitions for each of the five 
6.29 	goals that will be used to demonstrate the 
6.30 	Minnesota State Colleges and Universities' 
6.31 	attainment of each goal.
6.32 	On or before April 1, 2012, the Board 
6.33 	of Trustees must report to the legislative 
6.34 	committees with primary jurisdiction over 
7.1 	higher education finance and policy the 
7.2 	progress of the Minnesota State Colleges and 
7.3 	Universities toward attaining the goals.

7.4	Subd. 4.Learning Network of Minnesota
 		4,170,000
		4,170,000

7.5	Subd. 5.Education Priorities
 					
7.6 	The Board of Trustees, in fulfilling the 
7.7 	requirements of Minnesota Statutes, section 
7.8 	136F.06, by making reductions, approving 
7.9 	programs of study, establishing requirements 
7.10 	for completion of programs, and approving 
7.11 	course offerings and requirements for 
7.12 	credentials, must place the highest priority on 
7.13 	meeting the needs of Minnesota employers 
7.14 	for a skilled workforce. The board must 
7.15 	focus on the efficient delivery of higher 
7.16 	education, eliminate duplication throughout 
7.17 	the system, and streamline the operation 
7.18 	of the system to provide an education that 
7.19 	prepares students for the workforce needs of 
7.20 	Minnesota.

7.21
7.22	Subd. 6.Minnesota State Colleges and 
Universities Tuition Maximums
 					
7.23 	In the biennium ending June 30, 2013, the 
7.24 	maximum increase in tuition and mandatory 
7.25 	fees for a Minnesota resident undergraduate 
7.26 	student must not exceed:
7.27 	(1) two percent per year at a state college; 
7.28 	and
7.29 	(2) four percent per year at a state university.

7.30
7.31	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

7.32	Subdivision 1.Total Appropriation
 	$
	530,843,000
	$
	530,843,000

7.33	Appropriations by Fund
	
7.34		2012
	2013
	
8.1	General
	528,686,000
	528,686,000
	
8.2	Health Care Access
	2,157,000
	2,157,000
	
8.3 	The amounts that may be spent for each 
8.4 	purpose are specified in the following 
8.5 	subdivisions.

8.6	Subd. 2.Operations and Maintenance
 		466,700,000
		466,700,000
	
8.7 	This appropriation includes funding for 
8.8 	operation and maintenance of the system.
8.9 	One percent of the fiscal year 2013 
8.10 	appropriation in this subdivision is available 
8.11 	in fiscal year 2013 when the Board of Regents 
8.12 	of the University of Minnesota demonstrates 
8.13 	to the commissioner of management and 
8.14 	budget that the board has met at least three of 
8.15 	the following five performance goals:
8.16 	(1) increase the amount of institutional 
8.17 	financial aid so that it is greater in fiscal year 
8.18 	2012 than in fiscal year 2010, excluding 
8.19 	federal stimulus funding. Institutional 
8.20 	financial aid includes funds from the 
8.21 	University of Minnesota Foundation and the 
8.22 	Minnesota Medical Foundation;
8.23 	(2) produce at least 13,500 total degrees on 
8.24 	all campuses in fiscal year 2012;
8.25 	(3) increase the undergraduate four- and 
8.26 	six-year graduation rates on the Twin Cities 
8.27 	campus for 2011-2012, as reported in the 
8.28 	federal completions survey, over the numbers 
8.29 	for 2009-2010, as reported in the federal 
8.30 	completion survey;
8.31 	(4) produce total research and development 
8.32 	expenditures, as reported to the National 
8.33 	Science Foundation (NSF) for the University 
8.34 	of Minnesota system so that the amount 
9.1 	in the 2012 NSF report is not less than the 
9.2 	amount in the 2010 NSF report; and
9.3 	(5) produce sponsored funding from business 
9.4 	and industry so that funding in fiscal year 
9.5 	2012, as reported to the Board of Regents 
9.6 	in December of that year, is not less than 
9.7 	funding in fiscal year 2010.
9.8 	By October 1, 2011, the Board of Regents and 
9.9 	the Minnesota Office of Higher Education 
9.10 	must agree on specific numerical indicators 
9.11 	and definitions for each of the five goals that 
9.12 	will be used to demonstrate the University of 
9.13 	Minnesota's attainment of each goal.
9.14 	On or before April 1, 2012, the Board 
9.15 	of Regents must report to the legislative 
9.16 	committees with primary jurisdiction over 
9.17 	higher education finance and policy the 
9.18 	progress of the University of Minnesota 
9.19 	toward attaining the goals.

9.20	Subd. 3.Education Priorities
 					
9.21 	The Board of Regents, in fulfilling 
9.22 	their governance responsibilities for 
9.23 	the University of Minnesota by making 
9.24 	reductions, approving programs of study, 
9.25 	establishing requirements for completion of 
9.26 	programs, approving course offerings and 
9.27 	requirements for credentials, and authorizing 
9.28 	and funding research are encouraged to place 
9.29 	the highest priority on meeting the needs of 
9.30 	Minnesota employers for a skilled workforce. 
9.31 	The board must focus on the efficient delivery 
9.32 	of higher education, eliminate duplication 
9.33 	and redundancy, streamline administration, 
9.34 	and focus on providing an education that 
10.1 	prepares students for the workforce needs of 
10.2 	Minnesota.

10.3
10.4	Subd. 4.University of Minnesota Tuition 
Maximums
 					
10.5 	The legislature expects that in the biennium 
10.6 	ending June 30, 2013, net increases in 
10.7 	tuition revenue attributable to tuition 
10.8 	rate adjustments enacted by the Board of 
10.9 	Regents for the 2011-2012 and 2012-2013 
10.10 	academic years for Minnesota resident 
10.11 	undergraduate students enrolled in the 
10.12 	University of Minnesota will not increase by 
10.13 	more than $17,700,000 for the 2011-2012 
10.14 	academic year and $17,700,000 for the 
10.15 	2012-2013 academic year. The Board of 
10.16 	Regents is encouraged to maximize tuition 
10.17 	revenue gains through productivity measures 
10.18 	including, but not limited to, enrollment 
10.19 	growth, student credit hours, and other 
10.20 	efficiency efforts in order to mitigate the 
10.21 	need for tuition rate increases.

10.22	Subd. 5.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
10.23 	This appropriation is from the health care 
10.24 	access fund.

10.25	Subd. 6.Special Appropriations

10.26	(a) Agriculture and Extension Service
		42,514,000
		42,514,000
	
10.27 	For the Agricultural Experiment Station and 
10.28 	the Minnesota Extension Service.

10.29	(b) Health Sciences
		5,335,000
		5,335,000
	
10.30 	$346,000 each year is to support up to 12 
10.31 	resident physicians in the St. Cloud Hospital 
10.32 	family practice residency program. The 
10.33 	program must prepare doctors to practice 
10.34 	primary care medicine in the rural areas of 
11.1 	the state. The legislature intends this program 
11.2 	to improve health care in rural communities, 
11.3 	provide affordable access to appropriate 
11.4 	medical care, and manage the treatment of 
11.5 	patients in a more cost-effective manner.
11.6 	The remainder of this appropriation is for 
11.7 	the rural physicians associates program, the 
11.8 	Veterinary Diagnostic Laboratory, health 
11.9 	sciences research, dental care, and the 
11.10 	Biomedical Engineering Center.

11.11	(c) Institute of Technology
		1,129,000
		1,129,000
	
11.12 	For the Geological Survey and the talented 
11.13 	youth mathematics program.

11.14	(d) System Special
		5,008,000
		5,008,000
	
11.15 	For general research, industrial relations 
11.16 	education, Natural Resources Research 
11.17 	Institute, Center for Urban and Regional 
11.18 	Affairs, and the Bell Museum of Natural 
11.19 	History.

11.20
11.21	(e) University of Minnesota and Mayo 
Foundation Partnership
		8,000,000
		8,000,000
	
11.22 	For the direct and indirect expenses of the 
11.23 	collaborative research partnership between 
11.24 	the University of Minnesota and the Mayo 
11.25 	Foundation for research in biotechnology 
11.26 	and medical genomics. This appropriation is 
11.27 	available until expended. An annual report 
11.28 	on the expenditure of these funds must be 
11.29 	submitted to the governor and the chairs 
11.30 	of the senate and house of representatives 
11.31 	committees responsible for higher education 
11.32 	and economic development by June 30 of 
11.33 	each fiscal year.

11.34	Subd. 7.Academic Health Center
 					
12.1 	The appropriation for Academic Health 
12.2 	Center funding under Minnesota Statutes, 
12.3 	section 297F.10, is estimated to be 
12.4 	$22,343,000 each year.

12.5	Sec. 6. MAYO MEDICAL FOUNDATION

12.6	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
12.7 	The amounts that may be spent for each 
12.8 	purpose are specified in the following 
12.9 	subdivisions.

12.10	Subd. 2.Medical School
 		665,000
		665,000
	
12.11 	The state of Minnesota must pay a capitation 
12.12 	each year for each student who is a resident 
12.13 	of Minnesota. The appropriation may be 
12.14 	transferred between years of the biennium to 
12.15 	accommodate enrollment fluctuations.
12.16 	It is intended that during the biennium the 
12.17 	Mayo Clinic use the capitation money to 
12.18 	increase the number of doctors practicing in 
12.19 	rural areas in need of doctors.

12.20
12.21	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
12.22 	The state of Minnesota must pay stipend 
12.23 	support for up to 27 residents each year.

12.24 	ARTICLE 2
12.25 	RELATED HIGHER EDUCATION PROVISIONS

12.26 	Section 1. Minnesota Statutes 2010, section 135A.51, subdivision 2, is amended to 
12.27 	read:
12.28 		Subd. 2.Senior citizen. "Senior citizen" means a person who has reached 66 62 
12.29 	 years of age before the beginning of any term, semester or quarter, in which a course of 
12.30 	study is pursued, or a person receiving a railroad retirement annuity who has reached 60 
12.31 	years of age before the beginning of the term.

13.1 	EFFECTIVE DATE. This section is effective the day following final enactment for 
13.2 	terms beginning after July 1, 2011.

13.3 	Sec. 2. Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:
13.4 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of (1) 
13.5 	allowances specified in law for living and miscellaneous expenses, and (2) an allowance 
13.6 	for tuition and fees equal to the lesser of the average tuition and fees charged by the 
13.7 	institution,that is: (i) for two-year programs, the highest tuition and fees charged by a 
13.8 	Minnesota public college; (ii) for four-year programs, the highest average tuition and fees 
13.9 	charged by a Minnesota public university; or (iii) for any program the tuition and fee 
13.10 	maximums if established in law.
13.11 	(b) For a student registering for less than full time, the office shall prorate the cost of 
13.12 	attendance to the actual number of credits for which the student is enrolled.
13.13 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
13.14 	correctional institution shall consist of the tuition and fee component in paragraph (a), 
13.15 	with no allowance for living and miscellaneous expenses.
13.16 	(d) For the purpose of this subdivision, "fees" include only those fees that are 
13.17 	mandatory and charged to full-time resident students attending the institution. Fees do 
13.18 	not include charges for tools, equipment, computers, or other similar materials where the 
13.19 	student retains ownership. Fees include charges for these materials if the institution retains 
13.20 	ownership. Fees do not include optional or punitive fees.

13.21 	Sec. 3. [136F.705] UNDERGRADUATE TUITION GUARANTEE PLAN.
13.22 	(a) The board of trustees is encouraged to offer entering students a plan providing 
13.23 	stable tuition for students pursuing two-year or four-year degrees that can provide students 
13.24 	a tuition option designed to meet the goals in this section. 
13.25 	(b) A Minnesota resident student who first enrolls in a degree program at a state 
13.26 	college or university beginning in the fall of 2011 or later is guaranteed a stable tuition 
13.27 	for up to four consecutive academic years. 
13.28 	(c) For an undergraduate student enrolled in a baccalaureate degree program at a 
13.29 	state university, the tuition charged to the student for each semester of enrollment during 
13.30 	a four-year period, beginning with the first semester of enrollment, must not exceed the 
13.31 	amount of tuition that the student was charged for the first semester of enrollment. For a 
13.32 	student who continues to be enrolled after four consecutive academic years, the tuition 
13.33 	rate for each semester in excess of four years is equal to the tuition rate paid by new 
13.34 	enrollees at the state university. 
14.1 	(d) For an undergraduate student enrolled in an associate degree program at a college, 
14.2 	the tuition charged to the student for each semester of enrollment during a two-year period, 
14.3 	beginning with the first semester of enrollment, must not exceed the amount of tuition that 
14.4 	the student was charged for the first semester of enrollment. For a student who continues 
14.5 	to be enrolled after two consecutive academic years, the tuition rate for each semester in 
14.6 	excess of two years is equal to the tuition rate for new enrollees at the college.
14.7 	(e) Time limits for the stable tuition plan under this section do not apply to a student 
14.8 	in the military while the student is on active military duty.

14.9 	Sec. 4. Minnesota Statutes 2010, section 136G.01, is amended to read:
14.10 	136G.01 PLAN ESTABLISHED.
14.11 	A college savings plan known as the Minnesota college savings plan is established. 
14.12 	In establishing this plan, the legislature seeks to encourage individuals to save for 
14.13 	postsecondary education by:
14.14 	(1) providing a qualified tuition plan under federal tax law; and
14.15 	(2) providing matching grants for contributions to the program by low- and 
14.16 	middle-income families; and
14.17 	(3) (2) encouraging individuals, foundations, and businesses to provide additional 
14.18 	grants to participating students.

14.19 	EFFECTIVE DATE. This section is effective July 1, 2012.

14.20 	Sec. 5. Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:
14.21 		Subdivision 1.General. For purposes of sections 136G.01 to 136G.13 136G.14, the 
14.22 	following terms have the meanings given.

14.23 	EFFECTIVE DATE. This section is effective July 1, 2012.

14.24 	Sec. 6. Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:
14.25 		Subd. 18.Matching grant. "Matching grant" means an amount added to a matching 
14.26 	grant account under section 136G.11 for eligible account beneficiaries for account 
14.27 	contributions in calendar years 2001 to 2010.

14.28 	EFFECTIVE DATE. This section is effective July 1, 2012.

14.29 	Sec. 7. Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:
15.1 		Subd. 27.Plan. "Plan" refers to the plan established under sections 136G.01 to 
15.2 	136G.13 136G.14.

15.3 	EFFECTIVE DATE. This section is effective July 1, 2012.

15.4 	Sec. 8. Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:
15.5 		Subdivision 1.Responsibilities. (a) The director shall establish the rules, terms, 
15.6 	and conditions for the plan, subject to the requirements of sections 136G.01 to 136G.13
15.7 	136G.14.
15.8 	(b) The director shall prescribe the application forms, procedures, and other 
15.9 	requirements that apply to the plan.

15.10 	EFFECTIVE DATE. This section is effective July 1, 2012.

15.11 	Sec. 9. Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:
15.12 		Subd. 6.Three-year period for withdrawal of grants. A matching grant deposited 
15.13 	in the a matching grant account based on account owner contributions during calendar 
15.14 	years 2001 to 2010 under section 136G.11 may not be withdrawn within three years of the 
15.15 	establishment of the account of the beneficiary. In calculating the three-year period, the 
15.16 	period held in another account is included, if the account includes a rollover from another 
15.17 	account under section 529(c)(3)(C) of the Internal Revenue Code.

15.18 	EFFECTIVE DATE. This section is effective July 1, 2012.

15.19 	Sec. 10. Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:
15.20 		Subd. 8.Administration. The director shall administer the program, including 
15.21 	accepting and processing applications, maintaining account records, making payments, 
15.22 	making matching grants under section 136G.11, and undertaking any other necessary 
15.23 	tasks to administer the program. The office may contract with one or more third parties to 
15.24 	carry out some or all of these administrative duties, including providing incentives and 
15.25 	marketing the program. The office and the board may jointly contract with third-party 
15.26 	providers, if the office and board determine that it is desirable to contract with the same 
15.27 	entity or entities for administration and investment management.

15.28 	EFFECTIVE DATE. This section is effective July 1, 2012.

15.29 	Sec. 11. [137.105] UNDERGRADUATE TUITION GUARANTEE PLAN.
16.1 	The Board of Regents is encouraged to offer students a guaranteed tuition plan 
16.2 	that can provide students a tuition option designed to meet the goals in this section. 
16.3 	A Minnesota resident student who first enrolls in a degree program at the University 
16.4 	of Minnesota beginning in the fall of 2011 or later may be offered guaranteed stable 
16.5 	tuition for up to four consecutive academic years. Under the guaranteed plan, for an 
16.6 	undergraduate student enrolled in a baccalaureate degree program, the tuition charged to 
16.7 	the student for each semester of enrollment during a four-year period, beginning with the 
16.8 	first semester of enrollment, must not exceed the amount of tuition that the student was 
16.9 	charged for the first semester of enrollment. For a student who continues to be enrolled 
16.10 	after four consecutive academic years, the tuition rate for each semester in excess of four 
16.11 	years is equal to the tuition rate paid by new enrollees at the University of Minnesota. 
16.12 	Time limits for the stable tuition plan under this section do not apply to a student in the 
16.13 	military while the student is on active military duty.

16.14 	Sec. 12. STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.
 16.15 	The Minnesota Office of Higher Education must study graduate education in the 
16.16 	for-profit institutions that offer graduate education to Minnesota students. The study 
16.17 	must examine the rights and responsibilities of graduate students attending for-profit 
16.18 	institutions. At a minimum, the study must include an analysis of contractual arrangements 
16.19 	with graduate students, fulfillment of these contracts by all parties, protection of graduate 
16.20 	students' intellectual property rights, communication of well-defined expectations 
16.21 	for completion of graduation requirements, provision of adequate notice of changing 
16.22 	expectations for completion of graduate degrees, and ease of access by the graduate 
16.23 	student to information on the policies and procedures of the institution. The study must 
16.24 	evaluate the extent to which these institutions provide clear guidelines for graduate studies 
16.25 	on due process, academic freedom of inquiry, and recourse for graduate students if a 
16.26 	potential conflict of interest situation, including access to alternative dispute resolution 
16.27 	systems, and provide examples of effective guidelines and policies. The office must report 
16.28 	on the findings of this study by January 15, 2013, to the committees of the legislature with 
16.29 	jurisdiction over higher education finance. The report must include recommendations for 
16.30 	any changes to improve graduate education in the for-profit sector.

16.31 	Sec. 13. CREDIT TRANSFER WITHIN MINNESOTA STATE COLLEGES 
16.32 	AND UNIVERSITIES.
 16.33 	By February 15, 2012, the Board of Trustees of the Minnesota State Colleges and 
16.34 	Universities must adopt a policy requiring every college and university of the Minnesota 
17.1 	State Colleges and Universities to grant credit for a course that is taken for credit at any of 
17.2 	the colleges or universities in the system. The policy must require the credit to transfer 
17.3 	to the receiving institution at the same number of credits granted at the transferring 
17.4 	institution. The policy must also address the transfer of credits awarded to students in 
17.5 	the Anoka STEP and other 2+2 programs offered in conjunction with colleges in the 
17.6 	Minnesota State Colleges and Universities (MnSCU) to all colleges within MnSCU. 
17.7 	The policy adopted under this section may allow credits to transfer as an equal number 
17.8 	of elective credits. 

17.9 	Sec. 14.  REPEALER.
 17.10 	(a) Minnesota Statutes 2010, sections 135A.26; and 181.986, are repealed.
17.11 	(b) Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 
17.12 	and 10, are repealed effective July 2, 2012.
17.13 	(c) Laws 2009, chapter 95, article 2, section 39, is repealed effective July 1, 2011.