1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 11011.2A bill for an act1.3relating to higher education; amending postsecondary education provisions; 1.4requiring reports; changing Minnesota college savings plan matching grants; 1.5making technical changes; modifying definitions; setting requirements for 1.6credit transfer; providing stable undergraduate tuition rates; modifying achieve 1.7scholarship program; modifying contract and salary provisions; prohibiting use 1.8of certain public funds to support human cloning; requiring a study of graduate 1.9education in for-profit sector; repealing certain provisions related to equipment 1.10and apparel; appropriating money;amending Minnesota Statutes 2010, sections 1.1115A.081, subdivision 7c; 135A.51, subdivision 2; 136A.121, subdivision 6; 1.12136F.40, subdivision 2; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, 1.13subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes, 1.14chapters 136F; 137; 145; repealing Minnesota Statutes 2010, sections 135A.26; 1.15136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, chapter 1.1695, article 2, section 39.1.17May 16, 20111.18The Honorable Kurt Zellers1.19Speaker of the House of Representatives1.20The Honorable Michelle L. Fischbach1.21President of the Senate1.22We, the undersigned conferees for H. F. No. 1101 report that we have agreed upon 1.23the items in dispute and recommend as follows:1.24That the Senate recede from its amendment and that H. F. No. 1101 be further 1.25amended as follows:1.26Delete everything after the enacting clause and insert:1.27"ARTICLE 11.28HIGHER EDUCATION APPROPRIATIONS

1.29Section 1.  SUMMARY OF APPROPRIATIONS.

1.30    Subdivision 1.Summary By Fund.The amounts shown in this subdivision 1.31summarize direct appropriations, by fund, made in this article.

2.1SUMMARY BY FUND2.220122013Total2.3General$1,252,883,000$1,252,634,000$2,505,517,0002.4Health Care Access2,157,0002,157,0004,314,0002.5Total$1,255,040,000$1,254,791,000$2,509,831,000

2.6    Subd. 2.Summary By Agency - All Funds.The amounts shown in this subdivision 2.7summarize direct appropriations, by agency, made in this article.

2.8SUMMARY BY AGENCY - ALL FUNDS2.920122013Total2.102.11Minnesota Office of Higher Education$190,694,000$190,445,000$381,139,0002.12Mayo Medical Foundation1,351,0001,351,0002,702,0002.132.142.15Board of Trustees of the Minnesota State Colleges and Universities540,494,000540,494,0001,080,988,0002.162.17Board of Regents of the University of Minnesota522,501,000522,501,0001,045,002,0002.18Total$1,255,040,000$1,254,791,000$2,509,831,000

2.19Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.20    The sums shown in the columns marked "Appropriations" are appropriated to the 2.21agencies and for the purposes specified in this article. The appropriations are from the 2.22general fund, or another named fund, and are available for the fiscal years indicated 2.23for each purpose. The figures "2012" and "2013" used in this article mean that the 2.24appropriations listed under them are available for the fiscal year ending June 30, 2012, or 2.25June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 2.26year 2013. "The biennium" is fiscal years 2012 and 2013.

2.27APPROPRIATIONS2.28Available for the Year2.29Ending June 302.3020122013

2.312.32Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

2.33Subdivision 1.Total Appropriation$190,694,000$190,445,000

2.34The amounts that may be spent for each 2.35purpose are specified in the following 2.36subdivisions.

2.37Subd. 2.State Grants154,624,000154,625,000

3.1(a) If the appropriation in this subdivision for 3.2either year is insufficient, the appropriation 3.3for the other year is available for it.3.4(b) For the biennium, the tuition maximum 3.5is $10,488 in each year for students in 3.6four-year programs, and $5,808 for students 3.7in two-year programs.3.8(c) This appropriation sets the living and 3.9miscellaneous expense allowance at $7,000 3.10each year.

3.11Subd. 3.Safety Officers' Survivors100,000100,000

3.12This appropriation is to provide educational 3.13benefits under Minnesota Statutes, section 3.14299A.45, to eligible dependent children and 3.15to the spouses of public safety officers killed 3.16in the line of duty.3.17If the appropriation in this subdivision for 3.18either year is insufficient, the appropriation 3.19for the other year is available for it.

3.20Subd. 4.Child Care Grants6,684,0006,684,000

3.21Subd. 5.State Work-Study14,502,00014,502,000

3.22Subd. 6.Indian Scholarships1,850,0001,850,000

3.23This appropriation includes funding each 3.24year to administer the Indian scholarship 3.25program.

3.263.27Subd. 7.Intervention for College Attendance Program Grants671,000671,000

3.28For grants under Minnesota Statutes, 3.29section 136A.861. Up to $50,000 of this 3.30appropriation each year may be used for 3.31administrative expenses.

3.32Subd. 8.Midwest Higher Education Compact95,00095,000

4.14.2Subd. 9.United Family Medicine Residency Program351,000351,000

4.3For a grant to the United Family Medicine 4.4residency program. This appropriation 4.5shall be used to support up to 18 resident 4.6physicians each year in family practice at 4.7United Family Medicine residency programs 4.8and shall prepare doctors to practice family 4.9care medicine in underserved rural and 4.10urban areas of the state. It is intended 4.11that this program will improve health 4.12care in underserved communities, provide 4.13affordable access to appropriate medical 4.14care, and manage the treatment of patients in 4.15a cost-effective manner.

4.16Subd. 10.Interstate Tuition Reciprocity3,150,0003,250,000

4.17If the appropriation in this subdivision for 4.18either year is insufficient, the appropriation 4.19for the other year is available to meet 4.20reciprocity contract obligations.

4.21Subd. 11.Minnesota College Savings Plan350,000-0-

4.22Subd. 12.MnLINK Gateway and Minitex5,605,0005,605,000

4.23Subd. 13.Student and Parent Information122,000122,000

4.24Subd. 14.Get Ready180,000180,000

4.25Subd. 15.Minnesota Minority Partnership45,00045,000

4.26Subd. 16.Agency Administration2,365,0002,365,000

4.27Subd. 17.Balances Forward

4.28A balance in the first year under this section 4.29does not cancel, but is available for the 4.30second year.

4.31Subd. 18.Transfers

5.1The Minnesota Office of Higher Education 5.2may transfer unencumbered balances from 5.3the appropriations in this section to the state 5.4grant appropriation, the interstate tuition 5.5reciprocity appropriation, the child care 5.6grant appropriation, the Indian scholarship 5.7appropriation, the state work-study 5.8appropriation, the achieve scholarship 5.9appropriation, the public safety officers' 5.10survivors appropriation, and the Minnesota 5.11college savings plan appropriation. Transfers 5.12from the child care or state work-study 5.13appropriations may only be made to the 5.14extent there is a projected surplus in the 5.15appropriation. A transfer may be made only 5.16with prior written notice to the chairs and 5.17ranking minority members of the senate and 5.18house of representatives committees with 5.19jurisdiction over higher education finance.

5.205.215.22Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

5.23Subdivision 1.Total Appropriation$540,494,000$540,494,000

5.24Appropriations by Fund5.25201220135.26General540,494,000540,494,000

5.27The amounts that may be spent for each 5.28purpose are specified in the following 5.29subdivisions.

5.305.31Subd. 2.Central Office and Shared Services Unit33,074,00033,074,000

5.32For the Office of the Chancellor and the 5.33Shared Services Division. The reduction in 5.34the appropriation made by this subdivision 5.35from the net appropriation made for the 6.1central office and shared services unit in the 6.2biennium ending June 30, 2011, must not be 6.3allocated to any institution nor charged back 6.4to any campus or institution.

6.5Subd. 3.Operations and Maintenance503,305,000503,305,000

6.6$102,000 each year is for the Cook 6.7County Higher Education Board to provide 6.8educational programs and academic support 6.9services. The base appropriation under this 6.10paragraph is $102,000.6.11One percent of the fiscal year 2013 6.12appropriation in this subdivision is available 6.13in fiscal year 2013 after the Board of 6.14Trustees of the Minnesota State Colleges 6.15and Universities demonstrates to the 6.16commissioner of management and budget 6.17that the board has achieved at least three of 6.18the following five performance goals:6.19(1) increase by at least seven  percent, 6.20compared to fiscal year 2009, graduates or 6.21degrees, diplomas and certificates conferred;6.22(2) increase by at least ten percent, compared 6.23to fiscal year 2010, the number of students 6.24of color;6.25(3) increase by at least fifteen percent, 6.26compared to fiscal year 2010, the full year 6.27equivalent enrollment of students taking 6.28online or blended courses or the number of 6.29online and blended sections;6.30(4) increase by at least one percent the fall 6.312011 persistence and completion rate for fall 6.322010 entering students compared to the fall 6.332010 rate for fall 2009 entering students; and7.1(5) decrease by at least two percent, 7.2compared to calendar year 2009, total energy 7.3consumption per square foot.7.4By October 1, 2011, the Board of Trustees 7.5and the Minnesota Office of Higher 7.6Education must agree on specific numerical 7.7indicators and definitions for each of the five 7.8goals that will be used to demonstrate the 7.9Minnesota State Colleges and Universities' 7.10attainment of each goal.7.11On or before April 1, 2012, the Board 7.12of Trustees must report to the legislative 7.13committees with primary jurisdiction over 7.14higher education finance and policy the 7.15progress of the Minnesota State Colleges and 7.16Universities toward attaining the goals.

7.17Subd. 4.Learning Network of Minnesota4,115,0004,115,000

7.18Subd. 5.Education Priorities

7.19The Board of Trustees, in fulfilling the 7.20requirements of Minnesota Statutes, section 7.21136F.06, by making reductions, approving 7.22programs of study, establishing requirements 7.23for completion of programs, and approving 7.24course offerings and requirements for 7.25credentials, must place the highest priority on 7.26meeting the needs of Minnesota employers 7.27for a skilled workforce. The board must 7.28focus on the efficient delivery of higher 7.29education, eliminate duplication throughout 7.30the system, and streamline the operation 7.31of the system to provide an education that 7.32prepares students for the workforce needs of 7.33Minnesota.

8.18.2Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

8.3Subdivision 1.Total Appropriation$522,501,000$522,501,000

8.4Appropriations by Fund8.5201220138.6General520,344,000520,344,0008.7Health Care Access2,157,0002,157,000

8.8The amounts that may be spent for each 8.9purpose are specified in the following 8.10subdivisions.

8.11Subd. 2.Operations and Maintenance458,881,000458,881,000

8.12(a) This appropriation includes funding for 8.13operation and maintenance of the system.8.14(b) This appropriation includes money for 8.15the Veterinary Diagnostic Laboratory to 8.16preserve accreditation.8.17(c) During the biennium, the Board 8.18of Regents is encouraged to at least 8.19proportionally reduce spending for 8.20administration relative to spending 8.21reductions in other budget areas.8.22(d) One percent of the fiscal year 2013 8.23appropriation in this subdivision is available 8.24in fiscal year 2013 when the Board of Regents 8.25of the University of Minnesota demonstrates 8.26to the commissioner of management and 8.27budget that the board has met at least three of 8.28the following five performance goals:8.29(1) increase the amount of institutional 8.30financial aid so that it is greater in fiscal year 8.312012 than in fiscal year 2010, excluding 8.32federal stimulus funding. Institutional 8.33financial aid includes funds from the 9.1University of Minnesota Foundation and the 9.2Minnesota Medical Foundation;9.3(2) produce at least 13,500 total degrees on 9.4all campuses in fiscal year 2012;9.5(3) increase the undergraduate four- and 9.6six-year graduation rates on the Twin Cities 9.7campus for 2011-2012, as reported in the 9.8federal completions survey, over the numbers 9.9for 2009-2010, as reported in the federal 9.10completion survey;9.11(4) produce total research and development 9.12expenditures, as reported to the National 9.13Science Foundation (NSF) for the University 9.14of Minnesota system so that the amount 9.15in the 2012 NSF report is not less than the 9.16amount in the 2010 NSF report; and9.17(5) produce sponsored funding from business 9.18and industry so that funding in fiscal year 9.192012, as reported to the Board of Regents 9.20in December of that year, is not less than 9.21funding in fiscal year 2010.9.22By October 1, 2011, the Board of Regents and 9.23the Minnesota Office of Higher Education 9.24must agree on specific numerical indicators 9.25and definitions for each of the five goals that 9.26will be used to demonstrate the University of 9.27Minnesota's attainment of each goal.9.28On or before April 1, 2012, the Board 9.29of Regents must report to the legislative 9.30committees with primary jurisdiction over 9.31higher education finance and policy the 9.32progress of the University of Minnesota 9.33toward attaining the goals.

9.34Subd. 3.Education Priorities

10.1The Board of Regents, in fulfilling 10.2their governance responsibilities for 10.3the University of Minnesota by making 10.4reductions, approving programs of study, 10.5establishing requirements for completion of 10.6programs, approving course offerings and 10.7requirements for credentials, and authorizing 10.8and funding research are encouraged to place 10.9the highest priority on meeting the needs of 10.10Minnesota employers for a skilled workforce. 10.11The board must focus on the efficient delivery 10.12of higher education, eliminate duplication 10.13and redundancy, streamline administration, 10.14and focus on providing an education that 10.15prepares students for the workforce needs of 10.16Minnesota.

10.17Subd. 4.Primary Care Education Initiatives2,157,0002,157,000

10.18This appropriation is from the health care 10.19access fund.

10.20Subd. 5.Special Appropriations

10.21(a) Agriculture and Extension Service42,922,00042,922,000

10.22For the Agricultural Experiment Station and 10.23the Minnesota Extension Service:10.24(1) the agricultural experiment stations 10.25and Minnesota Extension Service must 10.26convene agricultural advisory groups to 10.27focus research, education, and extension 10.28activities on producer needs and implement 10.29an outreach strategy that more effectively 10.30and rapidly transfers research results and best 10.31practices to producers throughout the state;10.32(2) this appropriation includes funding for 10.33research and outreach on the production of 10.34renewable energy from Minnesota biomass 11.1resources, including agronomic crops, plant 11.2and animal wastes, and native plants or trees. 11.3The following areas should be prioritized and 11.4carried out in consultation with Minnesota 11.5producers, renewable energy, and bioenergy 11.6organizations:11.7(i) biofuel and other energy production from 11.8perennial crops, small grains, row crops, 11.9and forestry products in conjunction with 11.10the Natural Resources Research Institute 11.11(NRRI);11.12(ii) alternative bioenergy crops and cropping 11.13systems; and11.14(iii) biofuel coproducts used for livestock 11.15feed;11.16(3) this appropriation includes funding 11.17for the College of Food, Agricultural, and 11.18Natural Resources Sciences to establish and 11.19provide leadership for organic agronomic, 11.20horticultural, livestock, and food systems 11.21research, education, and outreach and for 11.22the purchase of state-of-the-art laboratory, 11.23planting, tilling, harvesting, and processing 11.24equipment necessary for this project;11.25(4) this appropriation includes funding 11.26for research efforts that demonstrate a 11.27renewed emphasis on the needs of the state's 11.28agriculture community. The following 11.29areas should be prioritized and carried 11.30out in consultation with Minnesota farm 11.31organizations:11.32(i) vegetable crop research with priority for 11.33extending the Minnesota vegetable growing 11.34season;12.1(ii) fertilizer and soil fertility research and 12.2development;12.3(iii) soil, groundwater, and surface water 12.4conservation practices and contaminant 12.5reduction research;12.6(iv) discovering and developing plant 12.7varieties that use nutrients more efficiently;12.8(v) breeding and development of turf seed 12.9and other biomass resources in all three 12.10Minnesota biomes;12.11(vi) development of new disease-resistant 12.12and pest-resistant varieties of turf and 12.13agronomic crops;12.14(vii) utilizing plant and livestock cells to treat 12.15and cure human diseases;12.16(viii) the development of dairy coproducts;12.17(ix) a rapid agricultural response fund for 12.18current or emerging animal, plant, and insect 12.19problems affecting production or food safety;12.20(x) crop pest and animal disease research;12.21(xi) developing animal agriculture that is 12.22capable of sustainably feeding the world;12.23(xii) consumer food safety education and 12.24outreach;12.25(xiii) programs to meet the research and 12.26outreach needs of organic livestock and crop 12.27farmers; and12.28(xiv) alternative bioenergy crops and 12.29cropping systems; and growing, harvesting, 12.30and transporting biomass plant material; and12.31(5) by February 1, 2013, the Board of 12.32Regents must submit a report to the 13.1legislative committees with responsibility 13.2for agriculture and higher education finance 13.3on the status and outcomes of research and 13.4initiatives funded in this section.

13.5(b) Health Sciences4,854,0004,854,000

13.6$346,000 each year is to support up to 12 13.7resident physicians in the St. Cloud Hospital 13.8family practice residency program. The 13.9program must prepare doctors to practice 13.10primary care medicine in the rural areas of 13.11the state. The legislature intends this program 13.12to improve health care in rural communities, 13.13provide affordable access to appropriate 13.14medical care, and manage the treatment of 13.15patients in a more cost-effective manner.13.16The remainder of this appropriation is for 13.17the rural physicians associates program, the 13.18Veterinary Diagnostic Laboratory, health 13.19sciences research, dental care, and the 13.20Biomedical Engineering Center.

13.21(c) Institute of Technology1,140,0001,140,000

13.22For the Geological Survey and the talented 13.23youth mathematics program.

13.24(d) System Special5,056,0005,056,000

13.25For general research, industrial relations 13.26education, Natural Resources Research 13.27Institute, Center for Urban and Regional 13.28Affairs, Bell Museum of Natural History, and 13.29the Humphrey exhibit.

13.3013.31(e) University of Minnesota and Mayo Foundation Partnership7,491,0007,491,000

13.32For the direct and indirect expenses of the 13.33collaborative research partnership between 13.34the University of Minnesota and the Mayo 14.1Foundation for research in biotechnology 14.2and medical genomics. This appropriation is 14.3available until expended. An annual report 14.4on the expenditure of these funds must be 14.5submitted to the governor and the chairs 14.6of the senate and house of representatives 14.7committees responsible for higher education 14.8and economic development by June 30 of 14.9each fiscal year.

14.10Subd. 6.Academic Health Center

14.11The appropriation for Academic Health 14.12Center funding under Minnesota Statutes, 14.13section 297F.10, is estimated to be 14.14$22,250,000 each year.

14.15Sec. 6. MAYO MEDICAL FOUNDATION

14.16Subdivision 1.Total Appropriation$1,351,000$1,351,000

14.17The amounts that may be spent for the 14.18purposes are specified in the following 14.19subdivisions.

14.20Subd. 2.Medical School665,000665,000

14.21The state of Minnesota must pay a capitation 14.22each year for each student who is a resident 14.23of Minnesota. The appropriation may be 14.24transferred between years of the biennium to 14.25accommodate enrollment fluctuations.14.26It is intended that during the biennium the 14.27Mayo Clinic use the capitation money to 14.28increase the number of doctors practicing in 14.29rural areas in need of doctors.

14.3014.31Subd. 3.Family Practice and Graduate Residency Program686,000686,000

14.32The state of Minnesota must pay stipend 14.33support for up to 27 residents each year.15.1    Sec. 7. TUITION LIMITATION AT MINNESOTA STATE COLLEGES AND 15.2UNIVERSITIES.15.3During the biennium ending June 30, 2013, the maximum tuition rate increase for 15.4all tuition rates at a Minnesota State Colleges and Universities institution or campus to a 15.5Minnesota resident undergraduate student may not exceed:15.6(1) three percent per academic year at a state college; and15.7    (2) five percent in the first academic year and four percent in the second academic 15.8year at a state university.15.9    The Board of Trustees of the Minnesota State Colleges and Universities must limit 15.10the rate of increase for any mandatory fee charged to a student at a university or college to 15.11four percent per year in the biennium ending June 30, 2013, unless a higher increase is 15.12approved by a public majority vote by the recognized campus student association.15.13    Sec. 8. TUITION LIMITATION; UNIVERSITY OF MINNESOTA.15.14The legislature expects that during the biennium ending June 30, 2013, the 15.15maximum tuition rate increase to a Minnesota resident undergraduate student enrolled at 15.16the University of Minnesota shall not exceed five percent the first academic year and four 15.17percent the second academic year.15.18The legislature expects that the rate of increase for any mandatory fee charged to 15.19a student at the University of Minnesota will be limited to a maximum of four percent 15.20per year in the biennium ending June 30, 2013, unless a higher increase is approved by a 15.21majority vote of the campus student association.15.22ARTICLE 215.23RELATED HIGHER EDUCATION PROVISIONS15.24    Section 1. [136A.051] STUDENT RECORDS AND DATA.15.25When a nonpublic institution of higher education provides the Office of Higher 15.26Education student data or records pursuant to section 136A.05, subdivision 1; 136A.121, 15.27subdivision 18; or 136A.1701, subdivision 11, the institution of higher education is not 15.28liable for a breach of confidentiality, disclosure, use, retention, or destruction of the 15.29student data or records, if the breach, disclosure, use, retention, or destruction results from 15.30actions or omissions of:15.31(1) the Office of Higher Education; or15.32(2) persons provided access to the data or records by the Office of Higher Education.15.33    Sec. 2. Minnesota Statutes 2010, section 135A.51, subdivision 2, is amended to read:16.1    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 66 62 16.2 years of age before the beginning of any term, semester or quarter, in which a course of 16.3study is pursued, or a person receiving a railroad retirement annuity who has reached 60 16.4years of age before the beginning of the term.16.5EFFECTIVE DATE.This section is effective the day after final enactment for 16.6terms beginning after July 1, 2011.16.7    Sec. 3. Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:16.8    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of 16.9allowances: (1) an allowance specified in law for living and miscellaneous expenses, 16.10and (2) an allowance for tuition and fees equal to the lesser of the average tuition and 16.11fees charged by the institution, or thea tuition and fee maximums maximum if one is16.12established in law. If no tuition and fee maximum is established in law, the allowance for 16.13tuition and fees is equal to the lesser of: (1) the average tuition and fees charged by the 16.14institution, and (2) for two-year programs, an amount equal to the highest tuition and fees 16.15charged at a public two-year institution, or for four-year programs, an amount equal to 16.16the highest tuition and fees charged at a public university.16.17(b) For a student registering for less than full time, the office shall prorate the cost of 16.18attendance to the actual number of credits for which the student is enrolled.16.19(c) The recognized cost of attendance for a student who is confined to a Minnesota 16.20correctional institution shall consist of the tuition and fee component in paragraph (a), 16.21with no allowance for living and miscellaneous expenses.16.22(d) For the purpose of this subdivision, "fees" include only those fees that are 16.23mandatory and charged to full-time resident students attending the institution. Fees do 16.24not include charges for tools, equipment, computers, or other similar materials where the 16.25student retains ownership. Fees include charges for these materials if the institution retains 16.26ownership. Fees do not include optional or punitive fees.16.27    Sec. 4. Minnesota Statutes 2010, section 136A.1787, is amended to read:16.28136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF 16.29NEED.16.30(a) In order to ensure the payment of the principal of and interest on bonds and 16.31notes of the office and the continued maintenance of the loan capital fund under section 16.32136A.1785
         , the office shall annually determine and certify to the governor, on or before 16.33December 1, the amount, if any:17.1(1) needed to restore the loan capital fund to the minimum amount required by a 17.2resolution or indenture relating to any bonds or notes of the office, not exceeding the 17.3maximum amount of principal and interest to become due and payable in any subsequent 17.4year on all bonds or notes which are then outstanding;17.5(2) determined by the office to be needed in the current or immediately ensuing17.6following fiscal year, with other funds pledged and estimated to be received during that 17.7year, for the payment of the principal and interest due and payable in that year on all 17.8outstanding bonds and notes; and17.9(3) needed to restore any debt service reserve fund securing any outstanding bonds 17.10or notes of the office to the amount required in a resolution or indenture relating to such 17.11outstanding bonds or notes.17.12(b) If the office determines the need under paragraph (a), clause (2), to be for the 17.13immediately following fiscal year, the governor shall include and submit the amounts 17.14certified by the office in accordance with this section to the legislature in the governor's 17.15budget for the immediately following fiscal year, or. If the office determines the need 17.16under paragraph (a), clause (1), (2), or (3), to be for the current fiscal year, the governor 17.17shall include and submit the amounts certified  in a governor's supplemental budget if the 17.18regular budget for that year has previously been approved enacted.17.19    Sec. 5. [136F.705] UNDERGRADUATE TUITION GUARANTEE PLAN.17.20(a) The board of trustees is encouraged to offer entering students a plan providing 17.21stable tuition for students pursuing two-year or four-year degrees that can provide students 17.22a tuition option designed to meet the goals in this section. 17.23(b) A Minnesota resident student who first enrolls in a degree program at a state 17.24college or university beginning in the fall of 2011 or later is guaranteed a stable tuition 17.25for up to four consecutive academic years. 17.26(c) For an undergraduate student enrolled in a baccalaureate degree program at a 17.27state university, the tuition charged to the student for each semester of enrollment during 17.28a four-year period, beginning with the first semester of enrollment, must not exceed the 17.29amount of tuition that the student was charged for the first semester of enrollment. For a 17.30student who continues to be enrolled after four consecutive academic years, the tuition 17.31rate for each semester in excess of four years is equal to the tuition rate paid by new 17.32enrollees at the state university. 17.33(d) For an undergraduate student enrolled in an associate degree program at a college, 17.34the tuition charged to the student for each semester of enrollment during a two-year period, 17.35beginning with the first semester of enrollment, must not exceed the amount of tuition that 18.1the student was charged for the first semester of enrollment. For a student who continues 18.2to be enrolled after two consecutive academic years, the tuition rate for each semester in 18.3excess of two years is equal to the tuition rate for new enrollees at the college.18.4(e) Time limits for the stable tuition plan under this section do not apply to a student 18.5in the military while the student is on active military duty.18.6    Sec. 6. Minnesota Statutes 2010, section 136G.01, is amended to read:18.7136G.01 PLAN ESTABLISHED.18.8A college savings plan known as the Minnesota college savings plan is established. 18.9In establishing this plan, the legislature seeks to encourage individuals to save for 18.10postsecondary education by:18.11(1) providing a qualified tuition plan under federal tax law; and18.12(2) providing matching grants for contributions to the program by low- and 18.13middle-income families; and18.14(3) (2) encouraging individuals, foundations, and businesses to provide additional 18.15grants to participating students.18.16EFFECTIVE DATE.This section is effective July 1, 2012.18.17    Sec. 7. Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:18.18    Subdivision 1. General. For purposes of sections 
         136G.01 to 
         136G.13 136G.14, the 18.19following terms have the meanings given.18.20EFFECTIVE DATE.This section is effective July 1, 2012.18.21    Sec. 8. Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:18.22    Subd. 18. Matching grant. "Matching grant" means an amount added to a matching 18.23grant account under section 
         136G.11 for eligible account beneficiaries for account 18.24contributions in calendar years 2001 to 2010.18.25EFFECTIVE DATE.This section is effective July 1, 2012.18.26    Sec. 9. Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:18.27    Subd. 27. Plan. "Plan" refers to the plan established under sections 
         136G.01 to 18.28136G.13 136G.14.18.29EFFECTIVE DATE.This section is effective July 1, 2012.19.1    Sec. 10. Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:19.2    Subdivision 1. Responsibilities. (a) The director shall establish the rules, terms, 19.3and conditions for the plan, subject to the requirements of sections 
         136G.01 to 
         136G.1319.4136G.14.19.5(b) The director shall prescribe the application forms, procedures, and other 19.6requirements that apply to the plan.19.7EFFECTIVE DATE.This section is effective July 1, 2012.19.8    Sec. 11. Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:19.9    Subd. 6. Three-year period for withdrawal of grants. A matching grant deposited 19.10in the a matching grant account based on account owner contributions during calendar 19.11years 2001 to 2010 under section 
         136G.11 may not be withdrawn within three years of the 19.12establishment of the account of the beneficiary. In calculating the three-year period, the 19.13period held in another account is included, if the account includes a rollover from another 19.14account under section 529(c)(3)(C) of the Internal Revenue Code.19.15EFFECTIVE DATE.This section is effective July 1, 2012.19.16    Sec. 12. Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:19.17    Subd. 8. Administration. The director shall administer the program, including 19.18accepting and processing applications, maintaining account records, making payments, 19.19making matching grants under section 136G.11, and undertaking any other necessary 19.20tasks to administer the program. The office may contract with one or more third parties to 19.21carry out some or all of these administrative duties, including providing incentives and 19.22marketing the program. The office and the board may jointly contract with third-party 19.23providers, if the office and board determine that it is desirable to contract with the same 19.24entity or entities for administration and investment management.19.25EFFECTIVE DATE.This section is effective July 1, 2012.19.26    Sec. 13. [137.105] UNDERGRADUATE TUITION GUARANTEE PLAN.19.27The Board of Regents is encouraged to offer students a guaranteed tuition plan 19.28that can provide students a tuition option designed to meet the goals in this section. 19.29A Minnesota resident student who first enrolls in a degree program at the University 19.30of Minnesota beginning in the fall of 2011 or later may be offered guaranteed stable 19.31tuition for up to four consecutive academic years. Under the guaranteed plan, for an 19.32undergraduate student enrolled in a baccalaureate degree program, the tuition charged to 20.1the student for each semester of enrollment during a four-year period, beginning with the 20.2first semester of enrollment, must not exceed the amount of tuition that the student was 20.3charged for the first semester of enrollment. For a student who continues to be enrolled 20.4after four consecutive academic years, the tuition rate for each semester in excess of four 20.5years is equal to the tuition rate paid by new enrollees at the University of Minnesota. 20.6Time limits for the stable tuition plan under this section do not apply to a student in the 20.7military while the student is on active military duty.20.8    Sec. 14. [145.4221] STATE FUNDS; PROHIBITED USE FOR HUMAN 20.9CLONING.20.10    Subdivision 1.Prohibited use of state funds.No state funds or federal funds the 20.11state receives for state programs may be used to either support human cloning or to pay for 20.12any expenses incidental to human cloning. For purposes of this section, "cloning" means 20.13generating a genetically identical copy of an organism at any stage of development by 20.14combining an enucleated egg and the nucleus of a somatic cell to make an embryo.20.15    Subd. 2.Scientific research.Nothing in this section shall affect areas of scientific 20.16research not specifically addressed by this section, including research in the use of 20.17nuclear transfer or other cloning techniques to produce molecules, DNA, cells other than 20.18human embryos, tissues, organs, plants, or animals other than humans. In addition, not 20.19withstanding section 145.422, nothing in this section shall affect the scientific field of stem 20.20cell research, unless explicitly prohibited.20.21EFFECTIVE DATE.This section is effective the day following final enactment.20.22    Sec. 15. STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.20.23The Minnesota Office of Higher Education must study graduate education in 20.24for-profit institutions with a physical presence in the state. The study must examine 20.25the rights and responsibilities of graduate students attending those institutions. At a 20.26minimum, the study must include an analysis of graduate student disciplinary processes; 20.27processes and policies adopted for the protection of graduate students' intellectual property 20.28rights; policies and guidelines addressing academic freedom of inquiry for students; and 20.29administrative processes in place to address disputes. The office must report on the 20.30findings of this study by January 15, 2013, to the committees of the legislature with 20.31responsibility for higher education finance. The report must include recommendations for 20.32any changes to improve graduate education in the for-profit sector.21.1    Sec. 16. CREDIT TRANSFER WITHIN MINNESOTA STATE COLLEGES 21.2AND UNIVERSITIES.21.3When providing the report required by Laws 2010, chapter 364, section 38, 21.4the Board of Trustees of the Minnesota State Colleges and Universities shall provide 21.5information about progress made toward achieving the goals described in the system's 21.6smart transfer plan, and shall provide information about the number of students 21.7transferring between and among the system's two- and four-year institutions during the 21.8previous fiscal year. In addition, the Board of Trustees shall include a system study of 21.9mechanisms for effective transfer in other states.21.10    Sec. 17.  REPEALER.21.11(a) Minnesota Statutes 2010, sections 135A.26; and 181.986, are repealed.21.12(b) Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 21.13and 10, are repealed effective July 2, 2012.21.14(c) Laws 2009, chapter 95, article 2, section 39, is repealed effective July 1, 2011."21.15Delete the title and insert:21.16"A bill for an act21.17relating to higher education; amending postsecondary education provisions; 21.18prohibiting use of certain funds to support human cloning; requiring a study; 21.19requiring reports; making technical changes; appropriating money;amending 21.20Minnesota Statutes 2010, sections 135A.51, subdivision 2; 136A.121, 21.21subdivision 6; 136A.1787; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, 21.22subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes, 21.23chapters 136A; 136F; 137; 145; repealing Minnesota Statutes 2010, sections 21.24135A.26; 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, 21.25chapter 95, article 2, section 39."

22.1We request the adoption of this report and repassage of the bill.22.2House Conferees:22.3
                     							.....
                     						
                     							.....
                     						22.4Bud NornesBob Dettmer22.5
                     							.....
                     						
                     							.....
                     						22.6Kurt DaudtPat Mazorol22.7
                     							.....
                     						22.8David Hancock22.9Senate Conferees:22.10
                     							.....
                     						
                     							.....
                     						22.11Michelle L. FischbachJohn J. Carlson22.12
                     							.....
                     						
                     							.....
                     						22.13David M. BrownClaire A. Robling22.14
                     							.....
                     						22.15David H. Senjem