SF 1236

2nd Unofficial Engrossment - 88th Legislature (2013 - 2014)

Posted on 04/29/2013 01:29 p.m.

1.1A bill for an act 1.2relating to education; postsecondary; establishing a budget for higher education; 1.3appropriating money to the Office of Higher Education, the Board of Trustees 1.4of the Minnesota State Colleges and Universities, the Board of Regents of the 1.5University of Minnesota, and the Mayo Clinic; regulating tuition increases; 1.6regulating bonus payments; establishing the Minnesota Discovery, Research, 1.7and InnoVation Economy funding program; providing statewide electronic 1.8infrastructure; modifying provisions related to student grants, awards, and 1.9aid, school registration, and licensure; requiring certain information to be 1.10provided in higher education budget proposals; modifying procedures related 1.11to terminating institutions from financial aid programs; establishing procedure 1.12for cancellation of required surety bond; repealing Higher Education Advisory 1.13Council;amending Minnesota Statutes 2012, sections 135A.031, subdivision 7; 1.14136A.101, subdivision 9; 136A.125, subdivisions 2, 4; 136A.233, subdivision 1.152; 136A.646; 136A.65, subdivision 8; 136A.653, by adding a subdivision; 1.16136F.40, subdivision 2; 137.027; 141.35; 299A.45, subdivision 4; proposing 1.17coding for new law in Minnesota Statutes, chapters 136A; 137; repealing 1.18Minnesota Statutes 2012, section 136A.031, subdivision 2; Minnesota Rules, 1.19parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; 4830.0160; 4830.0170; 1.204830.0180; 4830.0190; 4830.0195. 1.21BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.22ARTICLE 1 1.23HIGHER EDUCATION APPROPRIATIONS 1.24 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 1.25     new text begin Subdivision 1. new text end new text begin Summary By Fund. new text end new text begin The amounts shown in this subdivision new text end 1.26 new text begin summarize direct appropriations, by fund, made in this article. new text end 1.27 new text begin SUMMARY BY FUND new text end 1.28 new text begin 2014 new text end new text begin 2015 new text end new text begin Total new text end 1.29 new text begin General new text end new text begin $ new text end new text begin 1,336,854,000 new text end new text begin $ new text end new text begin 1,378,282,000 new text end new text begin $ new text end new text begin 2,715,136,000 new text end 2.1 new text begin Health Care Access new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end new text begin 4,314,000 new text end 2.2 new text begin Total new text end new text begin $ new text end new text begin 1,339,011,000 new text end new text begin $ new text end new text begin 1,380,439,000 new text end new text begin $ new text end new text begin 2,719,450,000 new text end 2.3     new text begin Subd. 2. new text end new text begin Summary By Agency - All Funds. new text end new text begin The amounts shown in this subdivision new text end 2.4 new text begin summarize direct appropriations, by agency, made in this article. new text end 2.5 new text begin SUMMARY BY AGENCY - ALL FUNDS new text end 2.6 new text begin 2014 new text end new text begin 2015 new text end new text begin Total new text end 2.7 2.8 new text begin Minnesota Office of Higher new text end new text begin Education new text end new text begin $ new text end new text begin 196,512,000 new text end new text begin $ new text end new text begin 196,197,000 new text end new text begin $ new text end new text begin 392,709,000 new text end 2.9 2.10 2.11 new text begin Board of Trustees of the new text end new text begin Minnesota State Colleges and new text end new text begin Universities new text end new text begin 570,865,000 new text end new text begin 597,865,000 new text end new text begin 1,168,730,000 new text end 2.12 2.13 new text begin Board of Regents of the new text end new text begin University of Minnesota new text end new text begin 570,283,000 new text end new text begin 585,026,000 new text end new text begin 1,155,309,000 new text end 2.14 new text begin Mayo Clinic new text end new text begin 1,351,000 new text end new text begin 1,351,000 new text end new text begin 2,702,000 new text end 2.15 new text begin Total new text end new text begin $ new text end new text begin 1,339,011,000 new text end new text begin $ new text end new text begin 1,380,439,000 new text end new text begin $ new text end new text begin 2,719,450,000 new text end 2.16 Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end 2.17     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 2.18 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 2.19 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 2.20 new text begin for each purpose. The figures "2014" and "2015" used in this article mean that the new text end 2.21 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2014, or new text end 2.22 new text begin June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal new text end 2.23 new text begin year 2015. "The biennium" is fiscal years 2014 and 2015. new text end 2.24 new text begin APPROPRIATIONS new text end 2.25 new text begin Available for the Year new text end 2.26 new text begin Ending June 30 new text end 2.27 new text begin 2014 new text end new text begin 2015 new text end 2.28 2.29 Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER new text end new text begin EDUCATION new text end 2.30 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 196,512,000 new text end new text begin $ new text end new text begin 196,197,000 new text end 2.31 new text begin The amounts that may be spent for each new text end 2.32 new text begin purpose are specified in the following new text end 2.33 new text begin subdivisions. new text end 2.34 new text begin Subd. 2. new text end new text begin State Grants new text end new text begin 160,548,000 new text end new text begin 160,214,000 new text end 3.1 new text begin If the appropriation in this subdivision for new text end 3.2 new text begin either year is insufficient, the appropriation new text end 3.3 new text begin for the other year is available for it. new text end 3.4 new text begin For the biennium, the tuition maximum is new text end 3.5 new text begin $10,488 in each year for students in four-year new text end 3.6 new text begin programs, and $5,808 in fiscal year 2014 new text end 3.7 new text begin and $5,808 in fiscal year 2015 for students new text end 3.8 new text begin in two-year programs. new text end 3.9 new text begin This appropriation sets the living and new text end 3.10 new text begin miscellaneous expense allowance at $7,000 new text end 3.11 new text begin each year. new text end 3.12 new text begin Notwithstanding section 136A.101, new text end 3.13 new text begin subdivision 5a, for the biennium ending June new text end 3.14 new text begin 30, 2015, the assigned family responsibility new text end 3.15 new text begin for independent students without dependents new text end 3.16 new text begin other than a spouse is 53 percent of the new text end 3.17 new text begin student contribution, and the assigned family new text end 3.18 new text begin responsibility for independent students with new text end 3.19 new text begin dependents other than a spouse is 80 percent new text end 3.20 new text begin of the student contribution. new text end 3.21 new text begin Subd. 3. new text end new text begin Child Care Grants new text end new text begin 6,684,000 new text end new text begin 6,684,000 new text end 3.22 new text begin Subd. 4. new text end new text begin State Work-Study new text end new text begin 14,502,000 new text end new text begin 14,502,000 new text end 3.23 new text begin Subd. 5. new text end new text begin Interstate Tuition Reciprocity new text end new text begin 3,250,000 new text end new text begin 3,250,000 new text end 3.24 new text begin If the appropriation in this subdivision for new text end 3.25 new text begin either year is insufficient, the appropriation new text end 3.26 new text begin for the other year is available to meet new text end 3.27 new text begin reciprocity contract obligations. new text end 3.28 new text begin Subd. 6. new text end new text begin Safety Officer's Survivors new text end new text begin 100,000 new text end new text begin 100,000 new text end 3.29 new text begin This appropriation is to provide educational new text end 3.30 new text begin benefits under Minnesota Statutes, section new text end 3.31 new text begin 299A.45, to eligible dependent children and new text end 3.32 new text begin to the spouses of public safety officers killed new text end 3.33 new text begin in the line of duty. new text end 4.1 new text begin If the appropriation in this subdivision for new text end 4.2 new text begin either year is insufficient, the appropriation new text end 4.3 new text begin for the other year is available for it. new text end 4.4 new text begin Subd. 7. new text end new text begin Indian Scholarships new text end new text begin 1,850,000 new text end new text begin 1,850,000 new text end 4.5 new text begin The director must contract with or employ new text end 4.6 new text begin at least one person with demonstrated new text end 4.7 new text begin competence in American Indian culture and new text end 4.8 new text begin residing in or near the city of Bemidji to new text end 4.9 new text begin assist students with the scholarships under new text end 4.10 new text begin Minnesota Statutes, section 136A.126, and new text end 4.11 new text begin with other information about financial aid for new text end 4.12 new text begin which the students may be eligible. Bemidji new text end 4.13 new text begin State University must provide office space new text end 4.14 new text begin at no cost to the Minnesota Office of Higher new text end 4.15 new text begin Education for purposes of administering the new text end 4.16 new text begin American Indian scholarship program under new text end 4.17 new text begin Minnesota Statutes, section 136A.126. This new text end 4.18 new text begin appropriation includes funding to administer new text end 4.19 new text begin the American Indian scholarship program. new text end 4.20 4.21 new text begin Subd. 8. new text end new text begin Intervention for College Attendance new text end new text begin Program Grants new text end new text begin 671,000 new text end new text begin 671,000 new text end 4.22 new text begin For the intervention for college attendance new text end 4.23 new text begin program under Minnesota Statutes, section new text end 4.24 new text begin 136A.861. new text end 4.25 new text begin This appropriation includes funding to new text end 4.26 new text begin administer the intervention for college new text end 4.27 new text begin attendance program grants. new text end 4.28 new text begin Subd. 9. new text end new text begin Student-Parent Information new text end new text begin 122,000 new text end new text begin 122,000 new text end 4.29 new text begin Subd. 10. new text end new text begin Get Ready new text end new text begin 180,000 new text end new text begin 180,000 new text end 4.30 new text begin Subd. 11. new text end new text begin Midwest Higher Education Compact new text end new text begin 95,000 new text end new text begin 95,000 new text end 4.31 new text begin Subd. 12. new text end new text begin Minnesota Minority Partnership new text end new text begin 45,000 new text end new text begin 45,000 new text end 4.32 4.33 new text begin Subd. 13. new text end new text begin United Family Medicine Residency new text end new text begin Program new text end new text begin 351,000 new text end new text begin 351,000 new text end 4.34 new text begin Subd. 14. new text end new text begin MnLINK Gateway and Minitex new text end new text begin 5,605,000 new text end new text begin 5,605,000 new text end 5.1 new text begin Subd. 15. new text end new text begin Agency Administration new text end new text begin 2,491,000 new text end new text begin 2,491,000 new text end 5.2 new text begin Subd. 16. new text end new text begin Balances Forward new text end 5.3 new text begin A balance in the first year under this section new text end 5.4 new text begin does not cancel, but is available for the new text end 5.5 new text begin second year. new text end 5.6 5.7 5.8 Sec. 4. new text begin BOARD OF TRUSTEES OF THE new text end new text begin MINNESOTA STATE COLLEGES AND new text end new text begin UNIVERSITIES new text end 5.9 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 570,865,000 new text end new text begin $ new text end new text begin 597,865,000 new text end 5.10 new text begin The amounts that may be spent for each new text end 5.11 new text begin purpose are specified in the following new text end 5.12 new text begin subdivisions. new text end 5.13 5.14 new text begin Subd. 2. new text end new text begin Central Office and Shared Services new text end new text begin Unit new text end new text begin 33,074,000 new text end new text begin 33,074,000 new text end 5.15 new text begin For the Office of the Chancellor and the new text end 5.16 new text begin Shared Services Division. new text end 5.17 new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end new text begin 533,676,000 new text end new text begin 560,676,000 new text end 5.18 new text begin This appropriation includes $25,500,000 in new text end 5.19 new text begin fiscal year 2014 and $52,500,000 in fiscal new text end 5.20 new text begin year 2015 for student tuition relief. The new text end 5.21 new text begin Board of Trustees may not set the tuition new text end 5.22 new text begin rate in any undergraduate degree-granting new text end 5.23 new text begin program for the 2013-2014 and 2014-2015 new text end 5.24 new text begin academic years at a rate greater than the new text end 5.25 new text begin 2012-2013 academic year rate. The student new text end 5.26 new text begin tuition relief may not be offset by increases new text end 5.27 new text begin in mandatory fees, charges, or other new text end 5.28 new text begin assessments to the student. new text end 5.29 new text begin To the extent that appropriations under new text end 5.30 new text begin this subdivision are insufficient to meet new text end 5.31 new text begin obligations contained in a labor or program new text end 5.32 new text begin contract, the Board of Trustees shall fund new text end 5.33 new text begin those obligations through reductions in costs new text end 5.34 new text begin associated with central administration of new text end 6.1 new text begin the system and executive administration of new text end 6.2 new text begin individual campuses, or through reallocation new text end 6.3 new text begin of nonstate funds received by the system. new text end 6.4 new text begin These outstanding obligations may not be new text end 6.5 new text begin funded through reduction in any program or new text end 6.6 new text begin service that directly impacts students or that new text end 6.7 new text begin is newly-authorized by the legislature for the new text end 6.8 new text begin 2014-2015 biennium, or through increased new text end 6.9 new text begin fees or costs directly assessed to students. new text end 6.10 new text begin Subd. 4. new text end new text begin Learning Network of Minnesota new text end new text begin 4,115,000 new text end new text begin 4,115,000 new text end 6.11 6.12 Sec. 5. new text begin BOARD OF REGENTS OF THE new text end new text begin UNIVERSITY OF MINNESOTA new text end 6.13 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 570,283,000 new text end new text begin $ new text end new text begin 585,026,000 new text end 6.14 new text begin Appropriations by Fund new text end 6.15 new text begin 2014 new text end new text begin 2015 new text end 6.16 new text begin General new text end new text begin 568,126,000 new text end new text begin 582,869,000 new text end 6.17 new text begin Health Care Access new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end 6.18 new text begin The amounts that may be spent for each new text end 6.19 new text begin purpose are specified in the following new text end 6.20 new text begin subdivisions. new text end 6.21 new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end new text begin 506,538,000 new text end new text begin 521,281,000 new text end 6.22 new text begin This appropriation includes funding for new text end 6.23 new text begin operation and maintenance of the system. new text end 6.24 new text begin This appropriation includes $14,200,000 in new text end 6.25 new text begin fiscal year 2014 and $28,400,000 in fiscal new text end 6.26 new text begin year 2015 for tuition relief for resident new text end 6.27 new text begin undergraduate students. Notwithstanding new text end 6.28 new text begin section 137.025, subdivision 1, the new text end 6.29 new text begin commissioner of management and budget new text end 6.30 new text begin may not distribute any appropriation provided new text end 6.31 new text begin under this subdivision until the Board of new text end 6.32 new text begin Regents certifies to the commissioner that new text end 6.33 new text begin it has established resident tuition rates for new text end 6.34 new text begin courses in all undergraduate degree-granting new text end 6.35 new text begin programs at a rate no greater than the rate new text end 7.1 new text begin charged for the 2012-2013 academic year, new text end 7.2 new text begin and that the student tuition relief is not offset new text end 7.3 new text begin by increases in mandatory fees, charges, or new text end 7.4 new text begin other assessments to the student. new text end 7.5 new text begin The Board of Regents of the University new text end 7.6 new text begin of Minnesota must transfer $645,000 in new text end 7.7 new text begin fiscal year 2014 and $645,000 in fiscal year new text end 7.8 new text begin 2015 from the appropriations made to it for new text end 7.9 new text begin operations and maintenance to the Hennepin new text end 7.10 new text begin County Medical Center for graduate family new text end 7.11 new text begin medicine education programs at Hennepin new text end 7.12 new text begin County Medical Center. new text end 7.13 new text begin $9,000,000 in fiscal year 2014 and $9,000,000 new text end 7.14 new text begin in fiscal year 2015 are for the Minnesota new text end 7.15 new text begin Discovery, Research, and InnoVation new text end 7.16 new text begin Economy (MnDRIVE) funding program. new text end 7.17 new text begin Subd. 3. new text end new text begin Primary Care Education Initiatives new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end 7.18 new text begin This appropriation is from the health care new text end 7.19 new text begin access fund. new text end 7.20 new text begin Subd. 4. new text end new text begin Special Appropriations new text end 7.21 new text begin (a) new text end new text begin Agriculture and Extension Service new text end new text begin 42,922,000 new text end new text begin 42,922,000 new text end 7.22 new text begin For the Agricultural Experiment Station and new text end 7.23 new text begin the Minnesota Extension Service: new text end 7.24 new text begin (1) the agricultural experiment stations new text end 7.25 new text begin and Minnesota Extension Service must new text end 7.26 new text begin convene agricultural advisory groups to new text end 7.27 new text begin focus research, education, and extension new text end 7.28 new text begin activities on producer needs and implement new text end 7.29 new text begin an outreach strategy that more effectively new text end 7.30 new text begin and rapidly transfers research results and best new text end 7.31 new text begin practices to producers throughout the state; new text end 7.32 new text begin (2) this appropriation includes funding for new text end 7.33 new text begin research and outreach on the production of new text end 7.34 new text begin renewable energy from Minnesota biomass new text end 8.1 new text begin resources, including agronomic crops, plant new text end 8.2 new text begin and animal wastes, and native plants or trees. new text end 8.3 new text begin The following areas should be prioritized and new text end 8.4 new text begin carried out in consultation with Minnesota new text end 8.5 new text begin producers, renewable energy, and bioenergy new text end 8.6 new text begin organizations: new text end 8.7 new text begin (i) biofuel and other energy production from new text end 8.8 new text begin perennial crops, small grains, row crops, new text end 8.9 new text begin and forestry products in conjunction with new text end 8.10 new text begin the Natural Resources Research Institute new text end 8.11 new text begin (NRRI); new text end 8.12 new text begin (ii) alternative bioenergy crops and cropping new text end 8.13 new text begin systems; and new text end 8.14 new text begin (iii) biofuel coproducts used for livestock new text end 8.15 new text begin feed; new text end 8.16 new text begin (3) this appropriation includes funding new text end 8.17 new text begin for the College of Food, Agricultural, and new text end 8.18 new text begin Natural Resources Sciences to establish and new text end 8.19 new text begin provide leadership for organic agronomic, new text end 8.20 new text begin horticultural, livestock, and food systems new text end 8.21 new text begin research, education, and outreach and for new text end 8.22 new text begin the purchase of state-of-the-art laboratory, new text end 8.23 new text begin planting, tilling, harvesting, and processing new text end 8.24 new text begin equipment necessary for this project; new text end 8.25 new text begin (4) this appropriation includes funding new text end 8.26 new text begin for research efforts that demonstrate a new text end 8.27 new text begin renewed emphasis on the needs of the state's new text end 8.28 new text begin agriculture community. The following new text end 8.29 new text begin areas should be prioritized and carried new text end 8.30 new text begin out in consultation with Minnesota farm new text end 8.31 new text begin organizations: new text end 8.32 new text begin (i) vegetable crop research with priority for new text end 8.33 new text begin extending the Minnesota vegetable growing new text end 8.34 new text begin season; new text end 9.1 new text begin (ii) fertilizer and soil fertility research and new text end 9.2 new text begin development; new text end 9.3 new text begin (iii) soil, groundwater, and surface water new text end 9.4 new text begin conservation practices and contaminant new text end 9.5 new text begin reduction research; new text end 9.6 new text begin (iv) discovering and developing plant new text end 9.7 new text begin varieties that use nutrients more efficiently; new text end 9.8 new text begin (v) breeding and development of turf seed new text end 9.9 new text begin and other biomass resources in all three new text end 9.10 new text begin Minnesota biomes; new text end 9.11 new text begin (vi) development of new disease-resistant new text end 9.12 new text begin and pest-resistant varieties of turf and new text end 9.13 new text begin agronomic crops; new text end 9.14 new text begin (vii) utilizing plant and livestock cells to treat new text end 9.15 new text begin and cure human diseases; new text end 9.16 new text begin (viii) the development of dairy coproducts; new text end 9.17 new text begin (ix) a rapid agricultural response fund for new text end 9.18 new text begin current or emerging animal, plant, and insect new text end 9.19 new text begin problems affecting production or food safety; new text end 9.20 new text begin (x) crop pest and animal disease research; new text end 9.21 new text begin (xi) developing animal agriculture that is new text end 9.22 new text begin capable of sustainably feeding the world; new text end 9.23 new text begin (xii) consumer food safety education and new text end 9.24 new text begin outreach; new text end 9.25 new text begin (xiii) programs to meet the research and new text end 9.26 new text begin outreach needs of organic livestock and crop new text end 9.27 new text begin farmers; and new text end 9.28 new text begin (xiv) alternative bioenergy crops and new text end 9.29 new text begin cropping systems; and growing, harvesting, new text end 9.30 new text begin and transporting biomass plant material; and new text end 9.31 new text begin (5) by February 1, 2015, the Board of new text end 9.32 new text begin Regents must submit a report to the new text end 9.33 new text begin legislative committees with responsibility new text end 10.1 new text begin for agriculture and higher education finance new text end 10.2 new text begin on the status and outcomes of research and new text end 10.3 new text begin initiatives funded in this section. new text end 10.4 new text begin (b) new text end new text begin Health Sciences new text end new text begin 4,854,000 new text end new text begin 4,854,000 new text end 10.5 new text begin $346,000 each year is to support up to 12 new text end 10.6 new text begin resident physicians in the St. Cloud Hospital new text end 10.7 new text begin family practice residency program. The new text end 10.8 new text begin program must prepare doctors to practice new text end 10.9 new text begin primary care medicine in rural areas of the new text end 10.10 new text begin state. The legislature intends this program new text end 10.11 new text begin to improve health care in rural communities, new text end 10.12 new text begin provide affordable access to appropriate new text end 10.13 new text begin medical care, and manage the treatment of new text end 10.14 new text begin patients in a more cost-effective manner. new text end 10.15 new text begin The remainder of this appropriation is for new text end 10.16 new text begin the rural physicians associates program, the new text end 10.17 new text begin Veterinary Diagnostic Laboratory, health new text end 10.18 new text begin sciences research, dental care, and the new text end 10.19 new text begin Biomedical Engineering Center. new text end 10.20 new text begin (c) new text end new text begin Institute of Technology new text end new text begin 1,140,000 new text end new text begin 1,140,000 new text end 10.21 new text begin For the Geological Survey and the talented new text end 10.22 new text begin youth mathematics program. new text end 10.23 new text begin (d) new text end new text begin System Special new text end new text begin 5,181,000 new text end new text begin 5,181,000 new text end 10.24 new text begin For general research, the Labor Education new text end 10.25 new text begin Service, Natural Resources Research new text end 10.26 new text begin Institute, Center for Urban and Regional new text end 10.27 new text begin Affairs, Bell Museum of Natural History, and new text end 10.28 new text begin the Humphrey exhibit. new text end 10.29 new text begin Of this amount, $125,000 in fiscal year 2014 new text end 10.30 new text begin and $125,000 in fiscal year 2015 are added new text end 10.31 new text begin to the base for the Labor Education Service. new text end 10.32 10.33 new text begin (e) new text end new text begin University of Minnesota and Mayo new text end new text begin Foundation Partnership new text end new text begin 7,491,000 new text end new text begin 7,491,000 new text end 10.34 new text begin Subd. 5. new text end new text begin Academic Health Center new text end 11.1 new text begin The appropriation for Academic Health new text end 11.2 new text begin Center funding under Minnesota Statutes, new text end 11.3 new text begin section 297F.10, is estimated to be new text end 11.4 new text begin $22,250,000 each year. new text end 11.5 Sec. 6. new text begin MAYO CLINIC new text end 11.6 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 1,351,000 new text end new text begin $ new text end new text begin 1,351,000 new text end 11.7 new text begin The amounts that may be spent for the new text end 11.8 new text begin purposes are specified in the following new text end 11.9 new text begin subdivisions. new text end 11.10 new text begin Subd. 2. new text end new text begin Medical School new text end new text begin 665,000 new text end new text begin 665,000 new text end 11.11 11.12 new text begin Subd. 3. new text end new text begin Family Practice and Graduate new text end new text begin Residency Program new text end new text begin 686,000 new text end new text begin 686,000 new text end 11.13ARTICLE 2 11.14HIGHER EDUCATION POLICY 11.15    Section 1. Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to 11.16read: 11.17    Subd. 7. Reports. (a) Instructional and noninstructional expenditure data and 11.18enrollment data must be submitted in the biennial budget document under section 11.19. This report must include a description of the methodology for determining 11.20instructional and noninstructional expenditures and estimates of inflation in higher 11.21education and the methodology or index used to determine the inflation rate. new text begin The new text end 11.22 new text begin University of Minnesota and the Minnesota State Colleges and Universities systems shall new text end 11.23 new text begin include in their biennial budget proposals to the legislature: new text end 11.24     new text begin (1) a five-year history of systemwide expenditures, reported by: new text end 11.25     new text begin (i) functional areas, including instruction, research, public service, student financial new text end 11.26 new text begin aid, and auxiliary services, and including direct costs and indirect costs, such as new text end 11.27 new text begin institutional support, academic support, student services, and facilities management, new text end 11.28 new text begin associated with each functional area; and new text end 11.29     new text begin (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment; new text end 11.30     new text begin (2) a five-year history of the system's total instructional expenditures per full-year new text end 11.31 new text begin equivalent student, by level of instruction, including upper-division undergraduate, new text end 11.32 new text begin lower-division undergraduate, graduate, professional, and other categories of instructional new text end 11.33 new text begin programs offered by the system; new text end 12.1     new text begin (3) a five-year history of the system's total revenues by funding source, including new text end 12.2 new text begin tuition, state operations and maintenance appropriations, state special appropriations, other new text end 12.3 new text begin restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary new text end 12.4 new text begin revenue, indirect cost recovery, and any other revenue sources; new text end 12.5    (b) By February 1 of each even-numbered year, the Board of Regents of the University 12.6of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities 12.7must submit a report to the chairs of the legislative committees with jurisdiction over 12.8higher education policy and finance. The report must describe the following: 12.9    (1) new text begin (4) an explanation describing new text end how state appropriations made to the system in 12.10the previous odd-numbered year new text begin biennium new text end were allocated and the methodology used to 12.11determine the allocation; 12.12    (2) new text begin (5) new text end data describing how the institution reallocated resources to advance the 12.13priorities set forth in the budget submitted under section 135A.034 and the statewide 12.14objectives under section 135A.011. The information must indicate whether instruction 12.15and support programs received a reduction in or additional resources. The total amount 12.16reallocated must be clearly explained; 12.17    (3) new text begin (6) new text end the tuition rates and fees established by the governing board in each of the 12.18past ten years and comparison data for peer institutions and national averages; 12.19    (4) new text begin (7) new text end data on the number and proportion of students graduating within four, five, 12.20and six years from universities and within three years from colleges as reported in the 12.21integrated postsecondary education data system. These data must be provided for each 12.22institution by race, ethnicity, and gender. Data and information must be submitted that 12.23describe the system's plan and progress toward attaining the goals set forth in the plan 12.24to increase the number and proportion of students that graduate within four, five, or six 12.25years from a university or within three years from a college; 12.26    (5) new text begin (8) new text end data on, and the methodology used to measure, the number of students 12.27traditionally underrepresented in higher education enrolled at the system's institutions. 12.28Data and information must be submitted that describe the system's plan and progress 12.29toward attaining the goals set forth in the plan to increase the recruitment, retention, and 12.30timely graduation of students traditionally underrepresented in higher education; and 12.31    (6) new text begin (9) new text end data on the revenue received from all sources to support research or 12.32workforce development activities or the system's efforts to license, sell, or otherwise 12.33market products, ideas, technology, and related inventions created in whole or in part by 12.34the system. Data and information must be submitted that describe the system's plan and 12.35progress toward attaining the goals set forth in the plan to increase the revenue received 13.1to support research or workforce development activities or revenue received from the 13.2licensing, sale, or other marketing and technology transfer activities by the system. 13.3    (c) Instructional expenditure and enrollment data new text begin (b) Data required by this new text end 13.4 new text begin subdivision new text end shall be submitted by the public postsecondary systems to the Minnesota 13.5Office of Higher Education and the Department of Management and Budget and included 13.6in the biennial budget document. The specific data shall be submitted only after the 13.7director of the Minnesota Office of Higher Education has consulted with a data advisory 13.8task force to determine the need, content, and detail of the information. new text begin Representatives new text end 13.9 new text begin from each system, in consultation with the commissioner of management and budget new text end 13.10 new text begin and the director of the Office of Higher Education, shall develop consistent reporting new text end 13.11 new text begin practices for this purpose. new text end 13.12     new text begin (c) To the extent practicable, each system shall develop the ability to respond to new text end 13.13 new text begin legislative requests for financial analyses that are more detailed than those required by this new text end 13.14 new text begin subdivision, including but not limited to analyses that show expenditures or revenues by new text end 13.15 new text begin institution or program, or in multiple categories of expenditures or revenues, and analyses new text end 13.16 new text begin that show revenue sources for particular types of expenditures. new text end 13.17    Sec. 2. Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read: 13.18    Subd. 9. Independent student. "Independent student" has the meaning given it in 13.19 new text begin under Title IV of new text end the Higher Education Act of 1965, United States Code, title 20, section 13.201070a-6 new text begin as amended new text end , and applicable regulations. 13.21    Sec. 3. new text begin [136A.104] INSTITUTION TERMINATION. new text end 13.22     new text begin (a) The office shall have the authority to terminate a postsecondary institution's new text end 13.23 new text begin eligibility to participate in state student aid programs if the institution meets one of the new text end 13.24 new text begin following criteria: new text end 13.25     new text begin (1) violates a provision of Minnesota Statutes, Minnesota Rules, or administrative new text end 13.26 new text begin policies governing student aid programs and fails to correct the violation and reimburse new text end 13.27 new text begin the office for audit findings within the time frame specified in the audit report or other new text end 13.28 new text begin notice furnished by the office; new text end 13.29     new text begin (2) has a consistent pattern of noncompliance with Minnesota Statutes, Minnesota new text end 13.30 new text begin Rules, or administrative policies governing student aid programs as documented by the new text end 13.31 new text begin office or lacks administrative capability to successfully administer student financial aid new text end 13.32 new text begin programs on campus based on factors including, but not limited to: new text end 13.33     new text begin (i) adequacy of financial aid staffing levels, experience, training, and turnover of key new text end 13.34 new text begin financial aid staff; new text end 14.1     new text begin (ii) adequate checks and balances in its system of internal controls; new text end 14.2     new text begin (iii) maintenance of records required for programs; or new text end 14.3     new text begin (iv) the ability to participate in the electronic processes used for program new text end 14.4 new text begin administration; new text end 14.5     new text begin (3) refuses to allow inspection of or provide information relating to financial aid new text end 14.6 new text begin records, after written request by the office; new text end 14.7     new text begin (4) misappropriates student aid program funds; new text end 14.8     new text begin (5) falsifies information or engages in misleading or deceptive practices involving new text end 14.9 new text begin the administration of student financial aid programs; new text end 14.10     new text begin (6) no longer meets institutional eligibility criteria in section 136A.103 or 136A.155, new text end 14.11 new text begin or additional criteria for state grant participation in Minnesota Rules, part 4830.0300, new text end 14.12 new text begin subparts 1 and 2; or new text end 14.13     new text begin (7) is terminated from participating in federal financial aid programs by the United new text end 14.14 new text begin States Department of Education, if such termination was based on violation of laws, new text end 14.15 new text begin regulations, or participation agreements governing federal financial aid programs. new text end 14.16    Sec. 4. new text begin [136A.1041] TERMINATION PROCEDURE. new text end 14.17     new text begin The office shall provide written notice of its intent to terminate an institution's new text end 14.18 new text begin eligibility to participate in student financial aid programs if the institution meets any of new text end 14.19 new text begin the criteria for termination in section 136A.104. The office shall send the institution new text end 14.20 new text begin written notification of the termination which is effective 90 days from the date of the new text end 14.21 new text begin written notification. The office shall also provide an institution an opportunity for a new text end 14.22 new text begin hearing pursuant to chapter 14. new text end 14.23    Sec. 5. new text begin [136A.1042] REQUEST FOR HEARING. new text end 14.24     new text begin An institution may request a hearing pursuant to chapter 14 regarding its termination new text end 14.25 new text begin of eligibility to participate in a student aid program. The request must be in writing and new text end 14.26 new text begin must be received by the director within 30 days of the date on the written notification of new text end 14.27 new text begin termination sent by the office. Within ten days of receipt of the request for hearing, the new text end 14.28 new text begin office shall contact the Office of Administrative Hearings to arrange a hearing date. new text end 14.29    Sec. 6. new text begin [136A.1043] RESTRICTION ON AWARDS DURING TERMINATION new text end 14.30 new text begin PERIOD. new text end 14.31     new text begin After the notice of termination and until such time as the termination becomes new text end 14.32 new text begin effective, the office reserves the right to withhold further financial aid disbursements to the new text end 14.33 new text begin institution. During this period, the institution may not make any new awards to students new text end 15.1 new text begin but may use any remaining student aid program funds on campus to make disbursements new text end 15.2 new text begin to any students awarded funds prior to the notice of termination. new text end 15.3    Sec. 7. new text begin [136A.1044] FINAL DECISION; ORDERS. new text end 15.4     new text begin The director shall render a decision and order in writing following receipt of the new text end 15.5 new text begin report issued by the administrative law judge after the hearing. The final decision of the new text end 15.6 new text begin director shall take into consideration the hearing record and the report of the administrative new text end 15.7 new text begin law judge. The order of the director is the final decision in the termination of the new text end 15.8 new text begin institution's eligibility to participate in a student aid program administered by the office. new text end 15.9    Sec. 8. new text begin [136A.1045] REINSTATEMENT OF ELIGIBILITY. new text end 15.10     new text begin An institution terminated from participating in student financial aid programs new text end 15.11 new text begin may submit a request for reinstatement of eligibility. The institution must wait at least new text end 15.12 new text begin 12 consecutive months from the effective date of the termination to submit a request new text end 15.13 new text begin for reinstatement. A request for reinstatement must be in writing and submitted to the new text end 15.14 new text begin director. If the institution is initially denied reinstatement, the institution must wait at new text end 15.15 new text begin least 90 days from the date of denial of reinstatement to resubmit a subsequent request new text end 15.16 new text begin for reinstatement. If an institution's eligibility is reinstated after the start of the academic new text end 15.17 new text begin term, eligible students shall receive payment retroactively to the beginning of the term new text end 15.18 new text begin during which the institution was reinstated. new text end 15.19    Sec. 9. new text begin [136A.1046] REINSTATEMENT REQUIREMENTS. new text end 15.20     new text begin An institution's reinstatement request must include: new text end 15.21     new text begin (1) written documentation specifying changes the institution has made to new text end 15.22 new text begin successfully address the reasons for termination, as outlined in the termination notice; new text end 15.23     new text begin (2) permission for the office's staff to conduct a reinstatement audit and to evaluate new text end 15.24 new text begin systems put in place to address the reasons for termination; new text end 15.25     new text begin (3) evidence of full repayment to the office of student aid program funds the new text end 15.26 new text begin institution improperly received, withheld, disbursed, or caused to be disbursed; new text end 15.27     new text begin (4) new participation agreements with the office for all student aid programs in new text end 15.28 new text begin which the institution wishes to participate; and new text end 15.29     new text begin (5) if applicable, documentation of the institution's eligibility to participate in new text end 15.30 new text begin federal financial aid programs. new text end 15.31    Sec. 10. new text begin [136A.1047] RESPONSE TO REINSTATEMENT REQUEST. new text end 16.1     new text begin Within 60 days of receiving the institution's reinstatement request, the office shall new text end 16.2 new text begin conduct a reinstatement audit and either: new text end 16.3     new text begin (1) place the institution on probationary status for a period of one year; or new text end 16.4     new text begin (2) deny the request based on the institution meeting one or more of the termination new text end 16.5 new text begin criteria in section 136A.104. new text end 16.6    Sec. 11. new text begin [136A.1048] PROBATIONARY PERIOD. new text end 16.7     new text begin During the probationary period, the office may audit the institution's records without new text end 16.8 new text begin notice. If, while on probation, the institution violates a condition under section 136A.104, new text end 16.9 new text begin as documented by the office's audit staff, the office must remove the institution from new text end 16.10 new text begin probationary status and deny the request for reinstatement. If the institution fails to new text end 16.11 new text begin successfully complete the probationary period, termination is final and effective within 30 new text end 16.12 new text begin days of written notice of the denial of the reinstatement request. new text end 16.13    Sec. 12. new text begin [136A.1049] REINSTATEMENT. new text end 16.14     new text begin If an institution no longer violates a condition under section 136A.104 and new text end 16.15 new text begin successfully completes the probationary period, the office must reinstate the institution's new text end 16.16 new text begin eligibility to participate in student financial aid programs effective the last date of the new text end 16.17 new text begin probationary period. new text end 16.18    Sec. 13. new text begin [136A.105] STUDENT AWARDS AFTER TERMINATION. new text end 16.19     new text begin If an institution is terminated from participating in student financial aid programs new text end 16.20 new text begin during a payment period, and a student at the institution was eligible for an award other new text end 16.21 new text begin than a Student Educational Loan Fund loan before the effective date of the institution's new text end 16.22 new text begin termination, the office must issue a payment for that payment period, as long as the student new text end 16.23 new text begin will not receive a payment for the same payment period from another institution and the new text end 16.24 new text begin student continues to meet the program's eligibility requirements. new text end 16.25    Sec. 14. Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read: 16.26    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 16.27the applicant: 16.28    (1) is a resident of the state of Minnesota; 16.29    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 16.30disabled as defined in section 125A.02, and who is receiving or will receive care on a 16.31regular basis from a licensed or legal, nonlicensed caregiver; 17.1    (3) is income eligible as determined by the office's policies and rules, but is not a 17.2recipient of assistance from the Minnesota family investment program; 17.3    (4) has not earned a baccalaureate degree and has been enrolled full time less than 17.4eight semesters or the equivalent; 17.5    (5) is pursuing a nonsectarian program or course of study that applies to an 17.6undergraduate degree, diploma, or certificate; 17.7    (6) is enrolled at least half time in an eligible institution; and 17.8    (7) is in good academic standing and making satisfactory academic progress. 17.9    (b) A student who withdraws from enrollment for active military service new text begin or for a new text end 17.10 new text begin major illness, while under the care of a medical professional, that substantially limits the new text end 17.11 new text begin student's ability to complete the term new text end is entitled to an additional semester or the equivalent 17.12of grant eligibility and will be considered to be in continuing enrollment status upon return. 17.13    Sec. 15. Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read: 17.14    Subd. 4. Amount and length of grants. (a) The amount of a child care grant 17.15must be based on: 17.16    (1) the income of the applicant and the applicant's spouse; 17.17    (2) the number in the applicant's family, as defined by the office; and 17.18    (3) the number of eligible children in the applicant's family. 17.19    (b) The maximum award to the applicant shall be $2,600 new text begin $2,800 new text end for each eligible 17.20child per academic year, except that the campus financial aid officer may apply to the 17.21office for approval to increase grants by up to ten percent to compensate for higher market 17.22charges for infant care in a community. The office shall develop policies to determine 17.23community market costs and review institutional requests for compensatory grant 17.24increases to ensure need and equal treatment. The office shall prepare a chart to show the 17.25amount of a grant that will be awarded per child based on the factors in this subdivision. 17.26The chart shall include a range of income and family size. 17.27    Sec. 16. Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read: 17.28    Subd. 2. Definitions. For purposes of sections 136A.231 to 136A.233, the words 17.29defined in this subdivision have the meanings ascribed to them. 17.30    (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at 17.31least half time in a degree, diploma, or certificate program in a Minnesota postsecondary 17.32institution. 17.33    (b) "Minnesota resident" means a student who meets the conditions in section 17.34136A.101, subdivision 8 . 18.1    (c) "Financial need" means the need for financial assistance in order to attend a 18.2postsecondary institution as determined by a postsecondary institution according to 18.3guidelines established by the Minnesota Office of Higher Education. 18.4    (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit, 18.5nonsectarian agency or state institution located in the state of Minnesota, a disabled person 18.6or a person over 65 who employs a student to provide personal services in or about the 18.7person's residence, or a private, for-profit employer employing a student as an intern in a 18.8position directly related to the student's field of study that will enhance the student's 18.9knowledge and skills in that field. 18.10    (e) "Eligible postsecondary institution" means any postsecondary institution eligible 18.11for participation in the Minnesota state grant program as specified in section 136A.101, 18.12subdivision 4 . 18.13    (f) "Independent student" has the meaning given it in new text begin under Title IV of new text end the Higher 18.14Education Act of 1965, United States Code, title 20, section 1070a-6 new text begin as amended new text end , and 18.15applicable regulations. 18.16    (g) "Half time" for undergraduates has the meaning given in section 136A.101, 18.17subdivision 7b , and for graduate students is defined by the institution. 18.18    Sec. 17. Minnesota Statutes 2012, section 136A.646, is amended to read: 18.19136A.646 ADDITIONAL SECURITY. 18.20    (a) In the event any registered institution is notified by the United States Department 18.21of Education that it has fallen below minimum financial standards and that its continued 18.22participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 18.23Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 18.24Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 18.25institution shall provide a surety bond conditioned upon the faithful performance of all 18.26contracts and agreements with students in a sum equal to the "letter of credit" required by 18.27the United States Department of Education in the Letter of Credit Alternative, but in no 18.28event shall such bond be less than $10,000 nor more than $250,000. 18.29    (b) In lieu of a bond, the applicant may deposit with the commissioner of 18.30management and budget: 18.31    (1) a sum equal to the amount of the required surety bond in cash; or 18.32    (2) securities, as may be legally purchased by savings banks or for trust funds, in an 18.33aggregate market value equal to the amount of the required surety bond. 19.1     new text begin (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to new text end 19.2 new text begin the office and shall be relieved of liability for any breach of condition occurring after new text end 19.3 new text begin the effective date of cancellation. new text end 19.4    Sec. 18. Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read: 19.5    Subd. 8. Disapproval of registration appeal. (a) If a school's degree or use of a 19.6term in its name is disapproved by the office, the school may request a hearing under 19.7chapter 14. The request must be in writing and made to the office within 30 days of the 19.8date the school is notified of the disapproval. 19.9    (b) new text begin (a) new text end The office may refuse to renew, revoke, or suspend registration, approval of 19.10a school's degree, or use of a regulated term in its name by giving written notice and 19.11reasons to the school. The school may request a hearing under chapter 14. If a hearing is 19.12requested, no revocation or suspension shall take effect until after the hearing. 19.13    (c) new text begin (b) new text end Reasons for revocation or suspension of registration or approval may be 19.14for one or more of the following reasons: 19.15    (1) violating the provisions of sections 136A.61 to 136A.71; 19.16    (2) providing false, misleading, or incomplete information to the office; 19.17    (3) presenting information about the school which is false, fraudulent, misleading, 19.18deceptive, or inaccurate in a material respect to students or prospective students; or 19.19    (4) refusing to allow reasonable inspection or to supply reasonable information after 19.20a written request by the office has been received. 19.21     new text begin (c) Any order refusing, revoking, or suspending a school's registration, approval of a new text end 19.22 new text begin school's degree, or use of a regulated term in the school's name is appealable in accordance new text end 19.23 new text begin with chapter 14. The request must be in writing and made to the office within 30 days of the new text end 19.24 new text begin date the school is notified of the action of the office. If a school has been operating and its new text end 19.25 new text begin registration has been revoked, suspended, or refused by the office, the order is not effective new text end 19.26 new text begin until the final determination of the appeal, unless immediate effect is ordered by the court. new text end 19.27    Sec. 19. Minnesota Statutes 2012, section 136A.653, is amended by adding a 19.28subdivision to read: 19.29     new text begin Subd. 5. new text end new text begin Free educational courses. new text end new text begin A school providing exclusively free training or new text end 19.30 new text begin instructional programs or courses where no tuition, fees, or any other charges are required new text end 19.31 new text begin for a student to participate is exempt from the provisions of sections 136A.61 to 136A.71. new text end 19.32    Sec. 20. new text begin [136A.89] STATEWIDE ELECTRONIC INFRASTRUCTURE; new text end 19.33 new text begin PORTFOLIO SOLUTIONS. new text end 20.1     new text begin Subdivision 1. new text end new text begin Collaborative infrastructure. new text end new text begin (a) The Department of Employment new text end 20.2 new text begin and Economic Development, the Department of Education, the Office of Higher new text end 20.3 new text begin Education, the University of Minnesota, and the Minnesota State Colleges and Universities new text end 20.4 new text begin shall collaborate to implement an electronic infrastructure, maintained under the direction new text end 20.5 new text begin and control of the Office of Higher Education, to support academic and workforce success new text end 20.6 new text begin statewide. The infrastructure shall first utilize existing assets, tools, and services, including new text end 20.7 new text begin but not limited to efolioMinnesota and GPS LifePlan. To facilitate implementation of this new text end 20.8 new text begin section, the Minnesota State Colleges and Universities shall transfer hosting, support, help new text end 20.9 new text begin desk responsibilities, software maintenance, and its intellectual property rights associated new text end 20.10 new text begin with efolioMinnesota and GPS LifePlan to the Office of Higher Education. new text end 20.11 new text begin (b) To the extent possible, the basic electronic infrastructure shall be available at no new text end 20.12 new text begin charge to all state residents and to all students attending Minnesota educational institutions. new text end 20.13     new text begin Subd. 2. new text end new text begin Goals; programs. new text end new text begin The office may enhance the efolioMinnesota platform new text end 20.14 new text begin to allow, at a minimum, implementation of: new text end 20.15 new text begin (1) a portfolio-based individual learning plan solution that includes comprehensive new text end 20.16 new text begin academic and life planning instruments, to support student transitions to postsecondary new text end 20.17 new text begin school or to work; and new text end 20.18 new text begin (2) a student-owned proficiency portfolio solution to support student transitions to new text end 20.19 new text begin the workplace and employers seeking first-day-work-ready employees. new text end 20.20     new text begin Subd. 3. new text end new text begin Resources; accountability reports. new text end new text begin (a) The office may seek and accept new text end 20.21 new text begin contributions from individuals, businesses, and other organizations to support the goals new text end 20.22 new text begin required by this section. The parties listed in subdivision 1 are not required to contribute. new text end 20.23 new text begin All contributions received are appropriated to the office and shall be administered as new text end 20.24 new text begin directed by the office. new text end 20.25 new text begin (b) The director of the Office of Higher Education shall submit, no later than January new text end 20.26 new text begin 15 of each year, a report to the governor and legislature on the progress of the office's new text end 20.27 new text begin activities related to implementation of this section. new text end 20.28    Sec. 21. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read: 20.29    Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor, 20.30a vice-chancellor, or a president, containing terms and conditions of employment. The 20.31terms of the contract must be authorized under a plan approved under section 43A.18, 20.32subdivision 3a . 20.33(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a 20.34contract under this section may provide a liquidated salary amount or other compensation 20.35if a contract is terminated by the board prior to its expiration. 21.1(c) Notwithstanding section 356.24 or other law to the contrary, a contract under 21.2this section may contain a deferred compensation plan made in conformance with section 21.3457(f) of the Internal Revenue Code. 21.4 new text begin (d) Notwithstanding any provision of the plan approved under section 43A.18, new text end 21.5 new text begin subdivision 3a, a contract under this section must not authorize or otherwise provide for a new text end 21.6 new text begin discretionary or mandatory bonus or other performance-based incentive payment. new text end 21.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 21.8 new text begin and applies to contracts entered into on or after that date. new text end 21.9    Sec. 22. Minnesota Statutes 2012, section 137.027, is amended to read: 21.10137.027 APPROPRIATION; FRINGE BENEFITS. 21.11 new text begin (a) new text end Direct appropriations to the University of Minnesota include money to pay 21.12the employer's share of Social Security, state retirement, and health insurance. Money 21.13provided for these purposes shall be expended only for these purposes and any amounts in 21.14excess of the employer's share shall be returned to the state treasury. 21.15 new text begin (b) Unless otherwise explicitly provided for in law, direct appropriations to the new text end 21.16 new text begin University of Minnesota do not include, and may not be used to pay, any mandatory or new text end 21.17 new text begin discretionary bonus or other performance-based incentive payment provided for in an new text end 21.18 new text begin employment contract with the president or vice-presidents, chancellors, provosts, vice new text end 21.19 new text begin provosts, deans, or directors of individual programs. new text end 21.20    Sec. 23. new text begin [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION new text end 21.21 new text begin ECONOMY FUNDING PROGRAM. new text end 21.22     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin (a) The Minnesota Discovery, Research, and new text end 21.23 new text begin InnoVation Economy (MnDRIVE) funding program is established to discover new new text end 21.24 new text begin knowledge through scientific research that will: new text end 21.25 new text begin (1) advance the state's economy; new text end 21.26 new text begin (2) leverage opportunities and establish priorities in sectors of state strength and new text end 21.27 new text begin comparative advantage; new text end 21.28 new text begin (3) improve the health and wellbeing of Minnesota's citizens; new text end 21.29 new text begin (4) advance the capacity and competitiveness of existing and emerging food- and new text end 21.30 new text begin manufacturing-related science and technology industries; and new text end 21.31 new text begin (5) build a better Minnesota by driving progress and advancing the common good. new text end 21.32 new text begin (b) The MnDRIVE funding program shall establish priorities by investing in new text end 21.33 new text begin scientific research that promotes: new text end 22.1 new text begin (1) programs that can position Minnesota as a leader in engineering, science, new text end 22.2 new text begin technology, and food-related solutions; new text end 22.3 new text begin (2) initiatives that support the growth of targeted industry clusters and the new text end 22.4 new text begin competitiveness of existing Minnesota engineering, science, technology, and food new text end 22.5 new text begin companies in developing new products and services; new text end 22.6 new text begin (3) initiatives that can result in creating new Minnesota-based companies; new text end 22.7 new text begin (4) initiatives that can improve the quality of life of Minnesota's citizens, decrease new text end 22.8 new text begin the incidence of disease, and transform how we prevent, treat, and cure diseases; and new text end 22.9 new text begin (5) initiatives that can secure a safer environment, seek sustainable energy solutions, new text end 22.10 new text begin and prevent, diagnose, and treat environmental problems associated with Minnesota new text end 22.11 new text begin industry. new text end 22.12     new text begin Subd. 2. new text end new text begin Funding requests. new text end new text begin The Board of Regents of the University of Minnesota, new text end 22.13 new text begin acting alone or in partnership with other public or private entities, is requested to submit new text end 22.14 new text begin investment proposals consistent with the goals and objectives of the MnDRIVE funding new text end 22.15 new text begin program as part of the Board of Regents biennial budget request to the legislature. The new text end 22.16 new text begin Board of Regents must give consideration to investments in existing scientific research new text end 22.17 new text begin programs that meet these guidelines but may require additional resources in order to new text end 22.18 new text begin preserve or accelerate Minnesota into a national or global leadership position. The new text end 22.19 new text begin governor shall submit a recommendation to the legislature regarding funding requests new text end 22.20 new text begin submitted by the Board of Regents. new text end 22.21     new text begin Subd. 3. new text end new text begin Reporting. new text end new text begin By March 1 of each odd-numbered year, the Board of Regents new text end 22.22 new text begin of the University of Minnesota must provide to the chairs and ranking minority members new text end 22.23 new text begin of the legislative committees with primary jurisdiction over higher education policy and new text end 22.24 new text begin finance a summary report of investments and accomplishments related to funds received new text end 22.25 new text begin from the state under subdivision 2 from the prior biennium. new text end 22.26 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 22.27    Sec. 24. Minnesota Statutes 2012, section 141.35, is amended to read: 22.28141.35 EXEMPTIONS. 22.29    Sections 141.21 to 141.32 shall not apply to the following: 22.30    (1) public postsecondary institutions; 22.31    (2) postsecondary institutions registered under sections 136A.61 to 136A.71; 22.32    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 22.33public board of another state or foreign country; 23.1    (4) private schools complying with the requirements of section 120A.22, subdivision 23.24 ; 23.3    (5) courses taught to students in a valid apprenticeship program taught by or 23.4required by a trade union; 23.5    (6) schools exclusively engaged in training physically or mentally disabled persons 23.6for the state of Minnesota; 23.7    (7) schools licensed by boards authorized under Minnesota law to issue licenses 23.8except schools required to obtain a private career school license due to the use of 23.9"academy," "institute," "college," or "university" in their names; 23.10    (8) schools and educational programs, or training programs, contracted for by 23.11persons, firms, corporations, government agencies, or associations, for the training of their 23.12own employees, for which no fee is charged the employee; 23.13    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 23.14or remedial subjects as determined by the office except schools required to obtain a private 23.15career school license due to the use of "academy," "institute," "college," or "university" in 23.16their names unless the school used "academy" or "institute" in its name prior to August 23.171, 2008; 23.18    (10) classes, courses, or programs conducted by a bona fide trade, professional, or 23.19fraternal organization, solely for that organization's membership; 23.20    (11) programs in the fine arts provided by organizations exempt from taxation 23.21under section 290.05 and registered with the attorney general under chapter 309. For 23.22the purposes of this clause, "fine arts" means activities resulting in artistic creation or 23.23artistic performance of works of the imagination which are engaged in for the primary 23.24purpose of creative expression rather than commercial sale or employment. In making 23.25this determination the office may seek the advice and recommendation of the Minnesota 23.26Board of the Arts; 23.27    (12) classes, courses, or programs intended to fulfill the continuing education 23.28requirements for licensure or certification in a profession, that have been approved by a 23.29legislatively or judicially established board or agency responsible for regulating the practice 23.30of the profession, and that are offered exclusively to an individual practicing the profession; 23.31    (13) classes, courses, or programs intended to prepare students to sit for 23.32undergraduate, graduate, postgraduate, or occupational licensing and occupational 23.33entrance examinations; 23.34    (14) classes, courses, or programs providing 16 or fewer clock hours of instruction 23.35that are not part of the curriculum for an occupation or entry level employment except 24.1schools required to obtain a private career school license due to the use of "academy," 24.2"institute," "college," or "university" in their names; 24.3    (15) classes, courses, or programs providing instruction in personal development, 24.4modeling, or acting; 24.5    (16) training or instructional programs, in which one instructor teaches an individual 24.6student, that are not part of the curriculum for an occupation or are not intended to prepare 24.7a person for entry level employment; and 24.8    (17) schools with no physical presence in Minnesota, as determined by the office, 24.9engaged exclusively in offering distance instruction that are located in and regulated by 24.10other states or jurisdictions new text begin ; and new text end 24.11     new text begin (18) schools providing exclusively free training or instructional programs or courses new text end 24.12 new text begin where no tuition, fees, or any other charges are required for a student to participate new text end . 24.13    Sec. 25. Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read: 24.14    Subd. 4. Renewal. Each award must be given for one academic year and is 24.15renewable for a maximum of eight semesters or the equivalent. A student who withdraws 24.16from enrollment for active military service new text begin or for a major illness, while under the care new text end 24.17 new text begin of a medical professional, that substantially limits the student's ability to complete the new text end 24.18 new text begin term new text end is entitled to an additional semester or the equivalent of grant eligibility. An award 24.19must not be given to a dependent child who is 23 years of age or older on the first day of 24.20the academic year. 24.21    Sec. 26. new text begin REPEALER. new text end 24.22 new text begin (a) new text end new text begin Minnesota Statutes 2012, section 136A.031, subdivision 2, new text end new text begin is repealed. new text end 24.23 new text begin (b) new text end new text begin Minnesota Rules, parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; new text end 24.24 new text begin 4830.0160; 4830.0170; 4830.0180; 4830.0190; and 4830.0195, new text end new text begin are repealed. new text end