1.1 	A bill for an act
1.2 	relating to higher education; amending postsecondary education provisions; 
1.3 	prohibiting use of certain funds to support human cloning; requiring a study; 
1.4 	requiring reports; making technical changes; appropriating money;amending 
1.5 	Minnesota Statutes 2010, sections 135A.51, subdivision 2; 136A.121, 
1.6 	subdivision 6; 136A.1787; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, 
1.7 	subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes, 
1.8 	chapters 136A; 136F; 137; 145; repealing Minnesota Statutes 2010, sections 
1.9 	135A.26; 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, 
1.10 	chapter 95, article 2, section 39.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	HIGHER EDUCATION APPROPRIATIONS

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

1.17	SUMMARY BY FUND
	
1.18			2012
		2013
		Total
	
1.19	General
	$
	1,252,883,000
	$
	1,252,634,000
	$
	2,505,517,000
	
1.20	Health Care Access
		2,157,000
		2,157,000
		4,314,000

1.21	Total
	$
	1,255,040,000
	$
	1,254,791,000
	$
	2,509,831,000
	
1.22 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
1.23 	summarize direct appropriations, by agency, made in this article.

1.24	SUMMARY BY AGENCY - ALL FUNDS
	
1.25			2012
		2013
		Total
	
2.1
2.2	Minnesota Office of Higher 
Education
	$
	190,694,000
	$
	190,445,000
	$
	381,139,000
	
2.3	Mayo Medical Foundation
		1,351,000
		1,351,000
		2,702,000
	
2.4
2.5
2.6	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		540,494,000
		540,494,000
		1,080,988,000
	
2.7
2.8	Board of Regents of the 
University of Minnesota
		522,501,000
		522,501,000
		1,045,002,000
	
2.9	Total
	$
	1,255,040,000
	$
	1,254,791,000
	$
	2,509,831,000

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

2.18				APPROPRIATIONS
	
2.19				Available for the Year
	
2.20				Ending June 30
	
2.21					2012
		2013

2.22
2.23	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.24	Subdivision 1.Total Appropriation
 	$
	190,694,000
	$
	190,445,000
	
2.25 	The amounts that may be spent for each 
2.26 	purpose are specified in the following 
2.27 	subdivisions.

2.28	Subd. 2.State Grants
 		154,624,000
		154,625,000
	
2.29 	(a) If the appropriation in this subdivision for 
2.30 	either year is insufficient, the appropriation 
2.31 	for the other year is available for it.
2.32 	(b) For the biennium, the tuition maximum 
2.33 	is $10,488 in each year for students in 
2.34 	four-year programs, and $5,808 for students 
2.35 	in two-year programs.
3.1 	(c) 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
 		14,502,000
		14,502,000

3.15	Subd. 6.Indian Scholarships
 		1,850,000
		1,850,000
	
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
3.27	Subd. 9.United Family Medicine Residency 
Program
 		351,000
		351,000
	
3.28 	For a grant to the United Family Medicine 
3.29 	residency program. This appropriation 
3.30 	shall be used to support up to 18 resident 
3.31 	physicians each year in family practice at 
3.32 	United Family Medicine residency programs 
3.33 	and shall prepare doctors to practice family 
4.1 	care medicine in underserved rural and 
4.2 	urban areas of the state. It is intended 
4.3 	that this program will improve health 
4.4 	care in underserved communities, provide 
4.5 	affordable access to appropriate medical 
4.6 	care, and manage the treatment of patients in 
4.7 	a cost-effective manner.

4.8	Subd. 10.Interstate Tuition Reciprocity
 		3,150,000
		3,250,000
	
4.9 	If the appropriation in this subdivision for 
4.10 	either year is insufficient, the appropriation 
4.11 	for the other year is available to meet 
4.12 	reciprocity contract obligations.

4.13	Subd. 11.Minnesota College Savings Plan
 		350,000
		-0-

4.14	Subd. 12.MnLINK Gateway and Minitex
 		5,605,000
		5,605,000

4.15	Subd. 13.Student and Parent Information
 		122,000
		122,000

4.16	Subd. 14.Get Ready
 		180,000
		180,000

4.17	Subd. 15.Minnesota Minority Partnership
 		45,000
		45,000

4.18	Subd. 16.Agency Administration
 		2,365,000
		2,365,000

4.19	Subd. 17.Balances Forward
 					
4.20 	A balance in the first year under this section 
4.21 	does not cancel, but is available for the 
4.22 	second year.

4.23	Subd. 18.Transfers
 					
4.24 	The Minnesota Office of Higher Education 
4.25 	may transfer unencumbered balances from 
4.26 	the appropriations in this section to the state 
4.27 	grant appropriation, the interstate tuition 
4.28 	reciprocity appropriation, the child care 
4.29 	grant appropriation, the Indian scholarship 
4.30 	appropriation, the state work-study 
4.31 	appropriation, the achieve scholarship 
4.32 	appropriation, the public safety officers' 
4.33 	survivors appropriation, and the Minnesota 
5.1 	college savings plan appropriation. Transfers 
5.2 	from the child care or state work-study 
5.3 	appropriations may only be made to the 
5.4 	extent there is a projected surplus in the 
5.5 	appropriation. A transfer may be made only 
5.6 	with prior written notice to the chairs and 
5.7 	ranking minority members of the senate and 
5.8 	house of representatives committees with 
5.9 	jurisdiction over higher education finance.

5.10
5.11
5.12	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

5.13	Subdivision 1.Total Appropriation
 	$
	540,494,000
	$
	540,494,000

5.14	Appropriations by Fund
	
5.15		2012
	2013
	
5.16	General
	540,494,000
	540,494,000
	
5.17 	The amounts that may be spent for each 
5.18 	purpose are specified in the following 
5.19 	subdivisions.

5.20
5.21	Subd. 2.Central Office and Shared Services 
Unit
 		33,074,000
		33,074,000
	
5.22 	For the Office of the Chancellor and the 
5.23 	Shared Services Division. The reduction in 
5.24 	the appropriation made by this subdivision 
5.25 	from the net appropriation made for the 
5.26 	central office and shared services unit in the 
5.27 	biennium ending June 30, 2011, must not be 
5.28 	allocated to any institution nor charged back 
5.29 	to any campus or institution.

5.30	Subd. 3.Operations and Maintenance
 		503,305,000
		503,305,000
	
5.31 	$102,000 each year is for the Cook 
5.32 	County Higher Education Board to provide 
5.33 	educational programs and academic support 
5.34 	services. The base appropriation under this 
5.35 	paragraph is $102,000.
6.1 	One percent of the fiscal year 2013 
6.2 	appropriation in this subdivision is available 
6.3 	in fiscal year 2013 after the Board of 
6.4 	Trustees of the Minnesota State Colleges 
6.5 	and Universities demonstrates to the 
6.6 	commissioner of management and budget 
6.7 	that the board has achieved at least three of 
6.8 	the following five performance goals:
6.9 	(1) increase by at least seven  percent, 
6.10 	compared to fiscal year 2009, graduates or 
6.11 	degrees, diplomas and certificates conferred;
6.12 	(2) increase by at least ten percent, compared 
6.13 	to fiscal year 2010, the number of students 
6.14 	of color;
6.15 	(3) increase by at least fifteen percent, 
6.16 	compared to fiscal year 2010, the full year 
6.17 	equivalent enrollment of students taking 
6.18 	online or blended courses or the number of 
6.19 	online and blended sections;
6.20 	(4) increase by at least one percent the fall 
6.21 	2011 persistence and completion rate for fall 
6.22 	2010 entering students compared to the fall 
6.23 	2010 rate for fall 2009 entering students; and
6.24 	(5) decrease by at least two percent, 
6.25 	compared to calendar year 2009, total energy 
6.26 	consumption per square foot.
6.27 	By October 1, 2011, the Board of Trustees 
6.28 	and the Minnesota Office of Higher 
6.29 	Education must agree on specific numerical 
6.30 	indicators and definitions for each of the five 
6.31 	goals that will be used to demonstrate the 
6.32 	Minnesota State Colleges and Universities' 
6.33 	attainment of each goal.
7.1 	On or before April 1, 2012, the Board 
7.2 	of Trustees must report to the legislative 
7.3 	committees with primary jurisdiction over 
7.4 	higher education finance and policy the 
7.5 	progress of the Minnesota State Colleges and 
7.6 	Universities toward attaining the goals.

7.7	Subd. 4.Learning Network of Minnesota
 		4,115,000
		4,115,000

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

7.24
7.25	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

7.26	Subdivision 1.Total Appropriation
 	$
	522,501,000
	$
	522,501,000

7.27	Appropriations by Fund
	
7.28		2012
	2013
	
7.29	General
	520,344,000
	520,344,000
	
7.30	Health Care Access
	2,157,000
	2,157,000
	
7.31 	The amounts that may be spent for each 
7.32 	purpose are specified in the following 
7.33 	subdivisions.

7.34	Subd. 2.Operations and Maintenance
 		458,881,000
		458,881,000
	
8.1 	(a) This appropriation includes funding for 
8.2 	operation and maintenance of the system.
8.3 	(b) This appropriation includes money for 
8.4 	the Veterinary Diagnostic Laboratory to 
8.5 	preserve accreditation.
8.6 	(c) During the biennium, the Board 
8.7 	of Regents is encouraged to at least 
8.8 	proportionally reduce spending for 
8.9 	administration relative to spending 
8.10 	reductions in other budget areas.
8.11 	(d) One percent of the fiscal year 2013 
8.12 	appropriation in this subdivision is available 
8.13 	in fiscal year 2013 when the Board of Regents 
8.14 	of the University of Minnesota demonstrates 
8.15 	to the commissioner of management and 
8.16 	budget that the board has met at least three of 
8.17 	the following five performance goals:
8.18 	(1) increase the amount of institutional 
8.19 	financial aid so that it is greater in fiscal year 
8.20 	2012 than in fiscal year 2010, excluding 
8.21 	federal stimulus funding. Institutional 
8.22 	financial aid includes funds from the 
8.23 	University of Minnesota Foundation and the 
8.24 	Minnesota Medical Foundation;
8.25 	(2) produce at least 13,500 total degrees on 
8.26 	all campuses in fiscal year 2012;
8.27 	(3) increase the undergraduate four- and 
8.28 	six-year graduation rates on the Twin Cities 
8.29 	campus for 2011-2012, as reported in the 
8.30 	federal completions survey, over the numbers 
8.31 	for 2009-2010, as reported in the federal 
8.32 	completion survey;
8.33 	(4) produce total research and development 
8.34 	expenditures, as reported to the National 
9.1 	Science Foundation (NSF) for the University 
9.2 	of Minnesota system so that the amount 
9.3 	in the 2012 NSF report is not less than the 
9.4 	amount in the 2010 NSF report; and
9.5 	(5) produce sponsored funding from business 
9.6 	and industry so that funding in fiscal year 
9.7 	2012, as reported to the Board of Regents 
9.8 	in December of that year, is not less than 
9.9 	funding in fiscal year 2010.
9.10 	By October 1, 2011, the Board of Regents and 
9.11 	the Minnesota Office of Higher Education 
9.12 	must agree on specific numerical indicators 
9.13 	and definitions for each of the five goals that 
9.14 	will be used to demonstrate the University of 
9.15 	Minnesota's attainment of each goal.
9.16 	On or before April 1, 2012, the Board 
9.17 	of Regents must report to the legislative 
9.18 	committees with primary jurisdiction over 
9.19 	higher education finance and policy the 
9.20 	progress of the University of Minnesota 
9.21 	toward attaining the goals.

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

10.4	Subd. 4.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
10.5 	This appropriation is from the health care 
10.6 	access fund.

10.7	Subd. 5.Special Appropriations

10.8	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
10.9 	For the Agricultural Experiment Station and 
10.10 	the Minnesota Extension Service:
10.11 	(1) the agricultural experiment stations 
10.12 	and Minnesota Extension Service must 
10.13 	convene agricultural advisory groups to 
10.14 	focus research, education, and extension 
10.15 	activities on producer needs and implement 
10.16 	an outreach strategy that more effectively 
10.17 	and rapidly transfers research results and best 
10.18 	practices to producers throughout the state;
10.19 	(2) this appropriation includes funding for 
10.20 	research and outreach on the production of 
10.21 	renewable energy from Minnesota biomass 
10.22 	resources, including agronomic crops, plant 
10.23 	and animal wastes, and native plants or trees. 
10.24 	The following areas should be prioritized and 
10.25 	carried out in consultation with Minnesota 
10.26 	producers, renewable energy, and bioenergy 
10.27 	organizations:
10.28 	(i) biofuel and other energy production from 
10.29 	perennial crops, small grains, row crops, 
10.30 	and forestry products in conjunction with 
10.31 	the Natural Resources Research Institute 
10.32 	(NRRI);
10.33 	(ii) alternative bioenergy crops and cropping 
10.34 	systems; and
11.1 	(iii) biofuel coproducts used for livestock 
11.2 	feed;
11.3 	(3) this appropriation includes funding 
11.4 	for the College of Food, Agricultural, and 
11.5 	Natural Resources Sciences to establish and 
11.6 	provide leadership for organic agronomic, 
11.7 	horticultural, livestock, and food systems 
11.8 	research, education, and outreach and for 
11.9 	the purchase of state-of-the-art laboratory, 
11.10 	planting, tilling, harvesting, and processing 
11.11 	equipment necessary for this project;
11.12 	(4) this appropriation includes funding 
11.13 	for research efforts that demonstrate a 
11.14 	renewed emphasis on the needs of the state's 
11.15 	agriculture community. The following 
11.16 	areas should be prioritized and carried 
11.17 	out in consultation with Minnesota farm 
11.18 	organizations:
11.19 	(i) vegetable crop research with priority for 
11.20 	extending the Minnesota vegetable growing 
11.21 	season;
11.22 	(ii) fertilizer and soil fertility research and 
11.23 	development;
11.24 	(iii) soil, groundwater, and surface water 
11.25 	conservation practices and contaminant 
11.26 	reduction research;
11.27 	(iv) discovering and developing plant 
11.28 	varieties that use nutrients more efficiently;
11.29 	(v) breeding and development of turf seed 
11.30 	and other biomass resources in all three 
11.31 	Minnesota biomes;
11.32 	(vi) development of new disease-resistant 
11.33 	and pest-resistant varieties of turf and 
11.34 	agronomic crops;
12.1 	(vii) utilizing plant and livestock cells to treat 
12.2 	and cure human diseases;
12.3 	(viii) the development of dairy coproducts;
12.4 	(ix) a rapid agricultural response fund for 
12.5 	current or emerging animal, plant, and insect 
12.6 	problems affecting production or food safety;
12.7 	(x) crop pest and animal disease research;
12.8 	(xi) developing animal agriculture that is 
12.9 	capable of sustainably feeding the world;
12.10 	(xii) consumer food safety education and 
12.11 	outreach;
12.12 	(xiii) programs to meet the research and 
12.13 	outreach needs of organic livestock and crop 
12.14 	farmers; and
12.15 	(xiv) alternative bioenergy crops and 
12.16 	cropping systems; and growing, harvesting, 
12.17 	and transporting biomass plant material; and
12.18 	(5) by February 1, 2013, the Board of 
12.19 	Regents must submit a report to the 
12.20 	legislative committees with responsibility 
12.21 	for agriculture and higher education finance 
12.22 	on the status and outcomes of research and 
12.23 	initiatives funded in this section.

12.24	(b) Health Sciences
		4,854,000
		4,854,000
	
12.25 	$346,000 each year is to support up to 12 
12.26 	resident physicians in the St. Cloud Hospital 
12.27 	family practice residency program. The 
12.28 	program must prepare doctors to practice 
12.29 	primary care medicine in the rural areas of 
12.30 	the state. The legislature intends this program 
12.31 	to improve health care in rural communities, 
12.32 	provide affordable access to appropriate 
12.33 	medical care, and manage the treatment of 
12.34 	patients in a more cost-effective manner.
13.1 	The remainder of this appropriation is for 
13.2 	the rural physicians associates program, the 
13.3 	Veterinary Diagnostic Laboratory, health 
13.4 	sciences research, dental care, and the 
13.5 	Biomedical Engineering Center.

13.6	(c) Institute of Technology
		1,140,000
		1,140,000
	
13.7 	For the Geological Survey and the talented 
13.8 	youth mathematics program.

13.9	(d) System Special
		5,056,000
		5,056,000
	
13.10 	For general research, industrial relations 
13.11 	education, Natural Resources Research 
13.12 	Institute, Center for Urban and Regional 
13.13 	Affairs, Bell Museum of Natural History, and 
13.14 	the Humphrey exhibit.

13.15
13.16	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,491,000
		7,491,000
	
13.17 	For the direct and indirect expenses of the 
13.18 	collaborative research partnership between 
13.19 	the University of Minnesota and the Mayo 
13.20 	Foundation for research in biotechnology 
13.21 	and medical genomics. This appropriation is 
13.22 	available until expended. An annual report 
13.23 	on the expenditure of these funds must be 
13.24 	submitted to the governor and the chairs 
13.25 	of the senate and house of representatives 
13.26 	committees responsible for higher education 
13.27 	and economic development by June 30 of 
13.28 	each fiscal year.

13.29	Subd. 6.Academic Health Center
 					
13.30 	The appropriation for Academic Health 
13.31 	Center funding under Minnesota Statutes, 
13.32 	section 297F.10, is estimated to be 
13.33 	$22,250,000 each year.

14.1	Sec. 6. MAYO MEDICAL FOUNDATION

14.2	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
14.3 	The amounts that may be spent for the 
14.4 	purposes are specified in the following 
14.5 	subdivisions.

14.6	Subd. 2.Medical School
 		665,000
		665,000
	
14.7 	The state of Minnesota must pay a capitation 
14.8 	each year for each student who is a resident 
14.9 	of Minnesota. The appropriation may be 
14.10 	transferred between years of the biennium to 
14.11 	accommodate enrollment fluctuations.
14.12 	It is intended that during the biennium the 
14.13 	Mayo Clinic use the capitation money to 
14.14 	increase the number of doctors practicing in 
14.15 	rural areas in need of doctors.

14.16
14.17	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
14.18 	The state of Minnesota must pay stipend 
14.19 	support for up to 27 residents each year.

14.20 	Sec. 7. TUITION LIMITATION AT MINNESOTA STATE COLLEGES AND 
14.21 	UNIVERSITIES.
 14.22 	During the biennium ending June 30, 2013, the maximum tuition rate increase for 
14.23 	all tuition rates at a Minnesota State Colleges and Universities institution or campus to a 
14.24 	Minnesota resident undergraduate student may not exceed:
14.25 	(1) three percent per academic year at a state college; and
14.26 	(2) five percent in the first academic year and four percent in the second academic 
14.27 	year at a state university.
14.28 	The Board of Trustees of the Minnesota State Colleges and Universities must limit 
14.29 	the rate of increase for any mandatory fee charged to a student at a university or college to 
14.30 	four percent per year in the biennium ending June 30, 2013, unless a higher increase is 
14.31 	approved by a public majority vote by the recognized campus student association.

14.32 	Sec. 8. TUITION LIMITATION; UNIVERSITY OF MINNESOTA.
 15.1 	The legislature expects that during the biennium ending June 30, 2013, the 
15.2 	maximum tuition rate increase to a Minnesota resident undergraduate student enrolled at 
15.3 	the University of Minnesota shall not exceed five percent the first academic year and four 
15.4 	percent the second academic year.
15.5 	The legislature expects that the rate of increase for any mandatory fee charged to 
15.6 	a student at the University of Minnesota will be limited to a maximum of four percent 
15.7 	per year in the biennium ending June 30, 2013, unless a higher increase is approved by a 
15.8 	majority vote of the campus student association.

15.9 	ARTICLE 2
15.10 	RELATED HIGHER EDUCATION PROVISIONS

15.11 	Section 1. [136A.051] STUDENT RECORDS AND DATA.
15.12 	When a nonpublic institution of higher education provides the Office of Higher 
15.13 	Education student data or records pursuant to section 136A.05, subdivision 1; 136A.121, 
15.14 	subdivision 18; or 136A.1701, subdivision 11, the institution of higher education is not 
15.15 	liable for a breach of confidentiality, disclosure, use, retention, or destruction of the 
15.16 	student data or records, if the breach, disclosure, use, retention, or destruction results from 
15.17 	actions or omissions of:
15.18 	(1) the Office of Higher Education; or
15.19 	(2) persons provided access to the data or records by the Office of Higher Education.

15.20 	Sec. 2. Minnesota Statutes 2010, section 135A.51, subdivision 2, is amended to read:
15.21 		Subd. 2.Senior citizen. "Senior citizen" means a person who has reached 66 62 
15.22 	 years of age before the beginning of any term, semester or quarter, in which a course of 
15.23 	study is pursued, or a person receiving a railroad retirement annuity who has reached 60 
15.24 	years of age before the beginning of the term.

15.25 	EFFECTIVE DATE. This section is effective the day after final enactment for 
15.26 	terms beginning after July 1, 2011.

15.27 	Sec. 3. Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:
15.28 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of 
15.29 	allowances: (1) an allowance specified in law for living and miscellaneous expenses, 
15.30 	and (2) an allowance for tuition and fees equal to the lesser of the average tuition and 
15.31 	fees charged by the institution, or thea tuition and fee maximums maximum if one is
15.32 	established in law. If no tuition and fee maximum is established in law, the allowance for 
16.1 	tuition and fees is equal to the lesser of: (1) the average tuition and fees charged by the 
16.2 	institution, and (2) for two-year programs, an amount equal to the highest tuition and fees 
16.3 	charged at a public two-year institution, or for four-year programs, an amount equal to 
16.4 	the highest tuition and fees charged at a public university.
16.5 	(b) For a student registering for less than full time, the office shall prorate the cost of 
16.6 	attendance to the actual number of credits for which the student is enrolled.
16.7 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
16.8 	correctional institution shall consist of the tuition and fee component in paragraph (a), 
16.9 	with no allowance for living and miscellaneous expenses.
16.10 	(d) For the purpose of this subdivision, "fees" include only those fees that are 
16.11 	mandatory and charged to full-time resident students attending the institution. Fees do 
16.12 	not include charges for tools, equipment, computers, or other similar materials where the 
16.13 	student retains ownership. Fees include charges for these materials if the institution retains 
16.14 	ownership. Fees do not include optional or punitive fees.

16.15 	Sec. 4. Minnesota Statutes 2010, section 136A.1787, is amended to read:
16.16 	136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF 
16.17 	NEED.
16.18 	(a) In order to ensure the payment of the principal of and interest on bonds and 
16.19 	notes of the office and the continued maintenance of the loan capital fund under section 
16.20 	136A.1785, the office shall annually determine and certify to the governor, on or before 
16.21 	December 1, the amount, if any:
16.22 	(1) needed to restore the loan capital fund to the minimum amount required by a 
16.23 	resolution or indenture relating to any bonds or notes of the office, not exceeding the 
16.24 	maximum amount of principal and interest to become due and payable in any subsequent 
16.25 	year on all bonds or notes which are then outstanding;
16.26 	(2) determined by the office to be needed in the current or immediately ensuing
16.27 	following fiscal year, with other funds pledged and estimated to be received during that 
16.28 	year, for the payment of the principal and interest due and payable in that year on all 
16.29 	outstanding bonds and notes; and
16.30 	(3) needed to restore any debt service reserve fund securing any outstanding bonds 
16.31 	or notes of the office to the amount required in a resolution or indenture relating to such 
16.32 	outstanding bonds or notes.
16.33 	(b) If the office determines the need under paragraph (a), clause (2), to be for the 
16.34 	immediately following fiscal year, the governor shall include and submit the amounts 
16.35 	certified by the office in accordance with this section to the legislature in the governor's 
17.1 	budget for the immediately following fiscal year, or. If the office determines the need 
17.2 	under paragraph (a), clause (1), (2), or (3), to be for the current fiscal year, the governor 
17.3 	shall include and submit the amounts certified  in a governor's supplemental budget if the 
17.4 	regular budget for that year has previously been approved enacted.

17.5 	Sec. 5. [136F.705] UNDERGRADUATE TUITION GUARANTEE PLAN.
17.6 	(a) The board of trustees is encouraged to offer entering students a plan providing 
17.7 	stable tuition for students pursuing two-year or four-year degrees that can provide students 
17.8 	a tuition option designed to meet the goals in this section. 
17.9 	(b) A Minnesota resident student who first enrolls in a degree program at a state 
17.10 	college or university beginning in the fall of 2011 or later is guaranteed a stable tuition 
17.11 	for up to four consecutive academic years. 
17.12 	(c) For an undergraduate student enrolled in a baccalaureate degree program at a 
17.13 	state university, the tuition charged to the student for each semester of enrollment during 
17.14 	a four-year period, beginning with the first semester of enrollment, must not exceed the 
17.15 	amount of tuition that the student was charged for the first semester of enrollment. For a 
17.16 	student who continues to be enrolled after four consecutive academic years, the tuition 
17.17 	rate for each semester in excess of four years is equal to the tuition rate paid by new 
17.18 	enrollees at the state university. 
17.19 	(d) For an undergraduate student enrolled in an associate degree program at a college, 
17.20 	the tuition charged to the student for each semester of enrollment during a two-year period, 
17.21 	beginning with the first semester of enrollment, must not exceed the amount of tuition that 
17.22 	the student was charged for the first semester of enrollment. For a student who continues 
17.23 	to be enrolled after two consecutive academic years, the tuition rate for each semester in 
17.24 	excess of two years is equal to the tuition rate for new enrollees at the college.
17.25 	(e) Time limits for the stable tuition plan under this section do not apply to a student 
17.26 	in the military while the student is on active military duty.

17.27 	Sec. 6. Minnesota Statutes 2010, section 136G.01, is amended to read:
17.28 	136G.01 PLAN ESTABLISHED.
17.29 	A college savings plan known as the Minnesota college savings plan is established. 
17.30 	In establishing this plan, the legislature seeks to encourage individuals to save for 
17.31 	postsecondary education by:
17.32 	(1) providing a qualified tuition plan under federal tax law; and
17.33 	(2) providing matching grants for contributions to the program by low- and 
17.34 	middle-income families; and
18.1 	(3) (2) encouraging individuals, foundations, and businesses to provide additional 
18.2 	grants to participating students.

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

18.4 	Sec. 7. Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:
18.5 		Subdivision 1.General. For purposes of sections 136G.01 to 136G.13 136G.14, the 
18.6 	following terms have the meanings given.

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

18.8 	Sec. 8. Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:
18.9 		Subd. 18.Matching grant. "Matching grant" means an amount added to a matching 
18.10 	grant account under section 136G.11 for eligible account beneficiaries for account 
18.11 	contributions in calendar years 2001 to 2010.

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

18.13 	Sec. 9. Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:
18.14 		Subd. 27.Plan. "Plan" refers to the plan established under sections 136G.01 to 
18.15 	136G.13 136G.14.

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

18.17 	Sec. 10. Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:
18.18 		Subdivision 1.Responsibilities. (a) The director shall establish the rules, terms, 
18.19 	and conditions for the plan, subject to the requirements of sections 136G.01 to 136G.13
18.20 	136G.14.
18.21 	(b) The director shall prescribe the application forms, procedures, and other 
18.22 	requirements that apply to the plan.

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

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

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

19.4 	Sec. 12. Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:
19.5 		Subd. 8.Administration. The director shall administer the program, including 
19.6 	accepting and processing applications, maintaining account records, making payments, 
19.7 	making matching grants under section 136G.11, and undertaking any other necessary 
19.8 	tasks to administer the program. The office may contract with one or more third parties to 
19.9 	carry out some or all of these administrative duties, including providing incentives and 
19.10 	marketing the program. The office and the board may jointly contract with third-party 
19.11 	providers, if the office and board determine that it is desirable to contract with the same 
19.12 	entity or entities for administration and investment management.

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

19.14 	Sec. 13. [137.105] UNDERGRADUATE TUITION GUARANTEE PLAN.
19.15 	The Board of Regents is encouraged to offer students a guaranteed tuition plan 
19.16 	that can provide students a tuition option designed to meet the goals in this section. 
19.17 	A Minnesota resident student who first enrolls in a degree program at the University 
19.18 	of Minnesota beginning in the fall of 2011 or later may be offered guaranteed stable 
19.19 	tuition for up to four consecutive academic years. Under the guaranteed plan, for an 
19.20 	undergraduate student enrolled in a baccalaureate degree program, the tuition charged to 
19.21 	the student for each semester of enrollment during a four-year period, beginning with the 
19.22 	first semester of enrollment, must not exceed the amount of tuition that the student was 
19.23 	charged for the first semester of enrollment. For a student who continues to be enrolled 
19.24 	after four consecutive academic years, the tuition rate for each semester in excess of four 
19.25 	years is equal to the tuition rate paid by new enrollees at the University of Minnesota. 
19.26 	Time limits for the stable tuition plan under this section do not apply to a student in the 
19.27 	military while the student is on active military duty.

19.28 	Sec. 14. [145.4221] STATE FUNDS; PROHIBITED USE FOR HUMAN 
19.29 	CLONING.
19.30 		Subdivision 1.Prohibited use of state funds. No state funds or federal funds the 
19.31 	state receives for state programs may be used to either support human cloning or to pay for 
19.32 	any expenses incidental to human cloning. For purposes of this section, "cloning" means 
20.1 	generating a genetically identical copy of an organism at any stage of development by 
20.2 	combining an enucleated egg and the nucleus of a somatic cell to make an embryo.
20.3 		Subd. 2.Scientific research. Nothing in this section shall affect areas of scientific 
20.4 	research not specifically addressed by this section, including research in the use of 
20.5 	nuclear transfer or other cloning techniques to produce molecules, DNA, cells other than 
20.6 	human embryos, tissues, organs, plants, or animals other than humans. In addition, not 
20.7 	withstanding section 145.422, nothing in this section shall affect the scientific field of stem 
20.8 	cell research, unless explicitly prohibited.

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

20.10 	Sec. 15. STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.
 20.11 	The Minnesota Office of Higher Education must study graduate education in 
20.12 	for-profit institutions with a physical presence in the state. The study must examine 
20.13 	the rights and responsibilities of graduate students attending those institutions. At a 
20.14 	minimum, the study must include an analysis of graduate student disciplinary processes; 
20.15 	processes and policies adopted for the protection of graduate students' intellectual property 
20.16 	rights; policies and guidelines addressing academic freedom of inquiry for students; and 
20.17 	administrative processes in place to address disputes. The office must report on the 
20.18 	findings of this study by January 15, 2013, to the committees of the legislature with 
20.19 	responsibility for higher education finance. The report must include recommendations for 
20.20 	any changes to improve graduate education in the for-profit sector.

20.21 	Sec. 16. CREDIT TRANSFER WITHIN MINNESOTA STATE COLLEGES 
20.22 	AND UNIVERSITIES.
 20.23 	When providing the report required by Laws 2010, chapter 364, section 38, 
20.24 	the Board of Trustees of the Minnesota State Colleges and Universities shall provide 
20.25 	information about progress made toward achieving the goals described in the system's 
20.26 	smart transfer plan, and shall provide information about the number of students 
20.27 	transferring between and among the system's two- and four-year institutions during the 
20.28 	previous fiscal year. In addition, the Board of Trustees shall include a system study of 
20.29 	mechanisms for effective transfer in other states.

20.30 	Sec. 17.  REPEALER.
 20.31 	(a) Minnesota Statutes 2010, sections 135A.26; and 181.986, are repealed.
20.32 	(b) Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 
20.33 	and 10, are repealed effective July 2, 2012.
21.1 	(c) Laws 2009, chapter 95, article 2, section 39, is repealed effective July 1, 2011.