1.1 	A bill for an act
1.2 	relating to higher education; providing funding and related policy changes for the 
1.3 	Office of Higher Education, the Minnesota State Colleges and Universities, the 
1.4 	University of Minnesota, and other related programs; modifying state grant program 
1.5 	calculation parameters; requiring reports; appropriating money;amending 
1.6 	Minnesota Statutes 2016, sections 135A.031, subdivision 7; 135A.15, subdivision 
1.7 	1a; 136A.101, subdivision 5a; 136A.1275; 136A.685; Laws 2014, chapter 312, 
1.8 	article 1, section 15; proposing coding for new law in Minnesota Statutes, chapter 
1.9 	298.
1.10 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11 	ARTICLE 1
1.12 	HIGHER EDUCATION APPROPRIATIONS

1.13	Section 1. APPROPRIATIONS.
 	
1.14 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.15 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.16 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.17 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
1.18 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
1.19 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
1.20 	is fiscal years 2018 and 2019.

1.21				APPROPRIATIONS
	
1.22				Available for the Year
	
1.23				Ending June 30
	
1.24					2018
		2019

1.25
1.26	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.1	Subdivision 1.Total Appropriation
 	$
	244,154,000
	$
	240,463,000
	
2.2 	The amounts that may be spent for each 
2.3 	purpose are specified in the following 
2.4 	subdivisions.

2.5	Subd. 2.State Grants
 		185,284,000
		185,284,000
	
2.6 	If the appropriation in this subdivision for 
2.7 	either year is insufficient, the appropriation 
2.8 	for the other year is available for it.

2.9	Subd. 3.Child Care Grants
 		6,684,000
		6,684,000

2.10	Subd. 4.State Work-Study
 		14,502,000
		14,502,000

2.11	Subd. 5.Interstate Tuition Reciprocity
 		11,018,000
		11,018,000
	
2.12 	If the appropriation in this subdivision for 
2.13 	either year is insufficient, the appropriation 
2.14 	for the other year is available to meet 
2.15 	reciprocity contract obligations.

2.16	Subd. 6.Safety Officer's Survivors
 		100,000
		100,000
	
2.17 	This appropriation is to provide educational 
2.18 	benefits under Minnesota Statutes, section 
2.19 	299A.45, to eligible dependent children and 
2.20 	to the spouses of public safety officers killed 
2.21 	in the line of duty.
2.22 	If the appropriation in this subdivision for 
2.23 	either year is insufficient, the appropriation 
2.24 	for the other year is available for it.

2.25	Subd. 7.Indian Scholarships
 		3,500,000
		3,500,000
	
2.26 	The commissioner must contract with or 
2.27 	employ at least one person with demonstrated 
2.28 	competence in American Indian culture and 
2.29 	residing in or near the city of Bemidji to assist 
2.30 	students with the scholarships under 
2.31 	Minnesota Statutes, section 136A.126, and 
2.32 	with other information about financial aid for 
2.33 	which the students may be eligible. Bemidji 
3.1 	State University must provide office space at 
3.2 	no cost to the Office of Higher Education for 
3.3 	purposes of administering the American Indian 
3.4 	scholarship program under Minnesota Statutes, 
3.5 	section 136A.126. This appropriation includes 
3.6 	funding to administer the American Indian 
3.7 	scholarship program.

3.8	Subd. 8.Tribal College Grants
 		150,000
		150,000
	
3.9 	For tribal college assistance grants under 
3.10 	Minnesota Statutes, section 136A.1796.

3.11
3.12	Subd. 9.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
3.13 	For the intervention for college attendance 
3.14 	program under Minnesota Statutes, section 
3.15 	136A.861.
3.16 	The commissioner may use no more than two 
3.17 	percent of this appropriation to administer the 
3.18 	intervention for college attendance program 
3.19 	grants.

3.20	Subd. 10.Student-Parent Information
 		122,000
		122,000

3.21	Subd. 11.Get Ready!
 		180,000
		180,000

3.22
3.23	Subd. 12.Minnesota Education Equity 
Partnership
 		45,000
		45,000

3.24	Subd. 13.Midwest Higher Education Compact
 		115,000
		115,000

3.25
3.26	Subd. 14.United Family Medicine Residency 
Program
 		501,000
		501,000
	
3.27 	For a grant to United Family Medicine 
3.28 	residency program. This appropriation shall 
3.29 	be used to support up to 21 resident physicians 
3.30 	each year in family practice at United Family 
3.31 	Medicine residency programs and shall 
3.32 	prepare doctors to practice family care 
3.33 	medicine in underserved rural and urban areas 
3.34 	of the state. It is intended that this program 
3.35 	will improve health care in underserved 
4.1 	communities, provide affordable access to 
4.2 	appropriate medical care, and manage the 
4.3 	treatment of patients in a cost-effective 
4.4 	manner.

4.5	Subd. 15.MnLINK Gateway and Minitex
 		5,905,000
		5,905,000

4.6
4.7	Subd. 16.Statewide Longitudinal Education 
Data System
 		882,000
		882,000

4.8	Subd. 17.Hennepin County Medical Center
 		645,000
		645,000
	
4.9 	For transfer to Hennepin County Medical 
4.10 	Center for graduate family medical education 
4.11 	programs at Hennepin County Medical Center.

4.12
4.13	Subd. 18.MNSCU Two-Year Public College 
Program
 		3,481,000
		-0-
	
4.14 	(a) $2,780,000 in fiscal year 2018 is for 
4.15 	two-year public college program grants under 
4.16 	Laws 2015, chapter 69, article 3, section 20.
4.17 	(b) $545,000 in fiscal year 2018 is to provide 
4.18 	mentoring and outreach as specified under 
4.19 	Laws 2015, chapter 69, article 3, section 20.
4.20 	(c) $156,000 in fiscal year 2018 is for 
4.21 	information technology and administrative 
4.22 	costs associated with implementation of the 
4.23 	grant program.

4.24	Subd. 19.College Possible
 		250,000
		250,000
	
4.25 	(a) This appropriation is for immediate transfer 
4.26 	to College Possible to support programs of 
4.27 	college admission and college graduation for 
4.28 	low-income students through an intensive 
4.29 	curriculum of coaching and support at both 
4.30 	the high school and postsecondary level.
4.31 	(b) This appropriation must, to the extent 
4.32 	possible, be proportionately allocated between 
4.33 	students from greater Minnesota and students 
4.34 	in the seven-county metropolitan area.
5.1 	(c) This appropriation must be used by College 
5.2 	Possible only for programs supporting students 
5.3 	who are residents of Minnesota and attending 
5.4 	colleges or universities within Minnesota.
5.5 	(d) By February 1 of each year, College 
5.6 	Possible must report to the chairs and ranking 
5.7 	minority members of the legislative 
5.8 	committees and divisions with jurisdiction 
5.9 	over higher education and E-12 education on 
5.10 	activities funded by this appropriation. The 
5.11 	report must include, but is not limited to, 
5.12 	information about the expansion of College 
5.13 	Possible in Minnesota, the number of College 
5.14 	Possible coaches hired, the expansion within 
5.15 	existing partner high schools, the expansion 
5.16 	of high school partnerships, the number of 
5.17 	high school and college students served, the 
5.18 	total hours of community service by high 
5.19 	school and college students, and a list of 
5.20 	communities and organizations benefiting 
5.21 	from student service hours.

5.22
5.23	Subd. 20.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		3,000,000
		3,000,000
	
5.24 	For spinal cord injury and traumatic brain 
5.25 	injury research grants authorized under 
5.26 	Minnesota Statutes, section 136A.901.
5.27 	The commissioner may use no more than two 
5.28 	percent of this appropriation to administer the 
5.29 	grant program under this subdivision.

5.30
5.31	Subd. 21.Summer Academic Enrichment 
Program
 		100,000
		100,000
	
5.32 	For summer academic enrichment grants under 
5.33 	Minnesota Statutes, section 136A.091.
6.1 	The commissioner may use no more than two 
6.2 	percent of this appropriation to administer the 
6.3 	grant program under this subdivision.

6.4
6.5	Subd. 22.Dual Training Competency Grants; 
OHE
 		2,000,000
		2,000,000
	
6.6 	For training grants under Minnesota Statutes, 
6.7 	section 136A.246.
6.8 	The commissioner may use no more than two 
6.9 	percent of this appropriation to administer the 
6.10 	grant program under this subdivision.

6.11
6.12	Subd. 23.Dual Training Competency Grants; 
DOLI
 		200,000
		200,000
	
6.13 	For transfer to the commissioner of labor and 
6.14 	industry for identification of competency 
6.15 	standards for dual training under Minnesota 
6.16 	Statutes, section 175.45.

6.17	Subd. 24.Concurrent Enrollment Courses
 		340,000
		340,000
	
6.18 	(a) $225,000 in fiscal year 2018 and $225,000 
6.19 	in fiscal year 2019 are for grants to develop 
6.20 	new concurrent enrollment courses under 
6.21 	Minnesota Statutes, section 124D.09, 
6.22 	subdivision 10, that satisfy the elective 
6.23 	standard for career and technical education. 
6.24 	Any balance in the first year does not cancel 
6.25 	but is available in the second year.
6.26 	(b) $115,000 in fiscal year 2018 and $115,000 
6.27 	in fiscal year 2019 are for grants to 
6.28 	postsecondary institutions currently 
6.29 	sponsoring a concurrent enrollment course to 
6.30 	expand existing programs. The commissioner 
6.31 	shall determine the application process and 
6.32 	the grant amounts. The commissioner must 
6.33 	give preference to expanding programs that 
6.34 	are at capacity. Any balance in the first year 
7.1 	does not cancel but is available in the second 
7.2 	year.
7.3 	(c) By December 1 of each year, the office 
7.4 	shall submit a brief report to the chairs and 
7.5 	ranking minority members of the legislative 
7.6 	committees with jurisdiction over higher 
7.7 	education regarding:
7.8 	(1) the courses developed by grant recipients 
7.9 	and the number of students who enrolled in 
7.10 	the courses under paragraph (a); and
7.11 	(2) the programs expanded and the number of 
7.12 	students who enrolled in programs under 
7.13 	paragraph (b).

7.14	Subd. 25.Campus Sexual Assault Reporting
 		25,000
		25,000
	
7.15 	For the sexual assault reporting required under 
7.16 	Minnesota Statutes, section 135A.15.

7.17	Subd. 26.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
	
7.18 	For the loan forgiveness program under 
7.19 	Minnesota Statutes, section 136A.1791.
7.20 	The commissioner may use no more than two 
7.21 	percent of this appropriation to administer the 
7.22 	program under this subdivision.

7.23
7.24	Subd. 27.Addiction Medicine Graduate 
Fellowship Program
 		210,000
		-0-
	
7.25 	For implementing a grant program used to 
7.26 	support up to four physicians who are enrolled 
7.27 	each year in an addiction medicine fellowship 
7.28 	program. A grant recipient must be enrolled 
7.29 	in a program that trains fellows in diagnostic 
7.30 	interviewing, motivational interviewing, 
7.31 	addiction counseling, recognition and care of 
7.32 	common acute withdrawal syndromes and 
7.33 	complications, pharmacotherapies of addictive 
7.34 	disorders, epidemiology and pathophysiology 
8.1 	of addiction, addictive disorders in special 
8.2 	populations, secondary interventions, use of 
8.3 	screening and diagnostic instruments, inpatient 
8.4 	care, and working within a multidisciplinary 
8.5 	team, and prepares doctors to practice 
8.6 	addiction medicine in rural and underserved 
8.7 	areas of the state.

8.8
8.9	Subd. 28.Student and Employer Connection 
Information System
 		405,000
		405,000
	
8.10 	For a grant to the Saint Paul Foundation for 
8.11 	the creation of a web-based job and 
8.12 	intern-seeking software tool that blind matches 
8.13 	the needs of employers located in Minnesota 
8.14 	with the individual profiles of high school 
8.15 	seniors and postsecondary students attending 
8.16 	Minnesota high schools and postsecondary 
8.17 	institutions. No more than two percent of this 
8.18 	appropriation may be used for administrative 
8.19 	expenses of the foundation. The foundation 
8.20 	must report by January 15, 2019, on activities 
8.21 	under this subdivision to the chairs and 
8.22 	ranking minority members of the legislative 
8.23 	committees with jurisdiction over higher 
8.24 	education finance.

8.25
8.26	Subd. 29.Emergency Assistance for 
Postsecondary Students
 		175,000
		175,000
	
8.27 	(a) This appropriation is for the Office of 
8.28 	Higher Education to allocate grant funds on a 
8.29 	matching basis to schools with a demonstrable 
8.30 	homeless student population.
8.31 	(b) This appropriation shall be used to meet 
8.32 	immediate student needs that could result in 
8.33 	a student not completing the term or their 
8.34 	program including, but not limited to, 
8.35 	emergency housing, food, and transportation. 
9.1 	Emergency assistance does not impact the 
9.2 	amount of state financial aid received.
9.3 	(c) The commissioner shall determine the 
9.4 	application process and the grant amounts. 
9.5 	Any balance in the first year does not cancel 
9.6 	but shall be available in the second year. The 
9.7 	Office of Higher Education shall partner with 
9.8 	interested postsecondary institutions, other 
9.9 	state agencies, and student groups to establish 
9.10 	the programs.

9.11
9.12	Subd. 30.Large Animal Veterinarian Loan 
Forgiveness Program
 		375,000
		375,000
	
9.13 	For the large animal veterinarian loan 
9.14 	forgiveness program under Minnesota Statutes, 
9.15 	section 136A.1795. The base for fiscal year 
9.16 	2028 is $0.

9.17	Subd. 31.Grants to Teacher Candidates
 		500,000
		500,000
	
9.18 	For grants to teacher candidates under 
9.19 	Minnesota Statutes, section 136A.1275. This 
9.20 	appropriation is in addition to the money 
9.21 	available under Laws 2016, chapter 189, 
9.22 	article 25, section 62, subdivision 11.
9.23 	The commissioner may use no more than two 
9.24 	percent of the appropriation for administration 
9.25 	of the program.

9.26	Subd. 32.Loan Repayment Assistance Program
 		25,000
		25,000
	
9.27 	For a grant to the Loan Repayment Assistance 
9.28 	Program of Minnesota to provide education 
9.29 	debt relief to attorneys with full-time 
9.30 	employment providing legal advice or 
9.31 	representation to low-income clients or support 
9.32 	services for this work.

9.33	Subd. 33.Agency Administration
 		2,564,000
		2,564,000

9.34	Subd. 34.Balances Forward
 					
10.1 	A balance in the first year under this section 
10.2 	does not cancel, but is available for the second 
10.3 	year.

10.4	Subd. 35.Transfers
 					
10.5 	The commissioner of the Office of Higher 
10.6 	Education may transfer unencumbered 
10.7 	balances from the appropriations in this 
10.8 	section to the state grant appropriation, the 
10.9 	interstate tuition reciprocity appropriation, the 
10.10 	child care grant appropriation, the Indian 
10.11 	scholarship appropriation, the state work-study 
10.12 	appropriation, the get ready appropriation, and 
10.13 	the public safety officers' survivors 
10.14 	appropriation. Transfers from the child care 
10.15 	or state work-study appropriations may only 
10.16 	be made to the extent there is a projected 
10.17 	surplus in the appropriation. A transfer may 
10.18 	be made only with prior written notice to the 
10.19 	chairs and ranking minority members of the 
10.20 	senate and house of representatives 
10.21 	committees with jurisdiction over higher 
10.22 	education finance.

10.23
10.24
10.25	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

10.26	Subdivision 1.Total Appropriation
 	$
	692,536,000
	$
	707,316,000
	
10.27 	The amounts that may be spent for each 
10.28 	purpose are specified in the following 
10.29 	subdivisions.

10.30	Subd. 2.Central Office and Shared Services Unit
 		33,074,000
		33,074,000
	
10.31 	For the Office of the Chancellor and the 
10.32 	Shared Services Division.

10.33	Subd. 3.Operations and Maintenance
 		655,347,000
		670,127,000
	
11.1 	(a) The Board of Trustees must establish 
11.2 	tuition rates as follows:
11.3 	(1) for the 2017-2018 academic year, the 
11.4 	tuition rate at colleges and universities must 
11.5 	not exceed the 2016-2017 academic year rate; 
11.6 	and
11.7 	(2) for the 2018-2019 academic year, the 
11.8 	tuition rate at colleges and universities must 
11.9 	not exceed the 2017-2018 academic year rate.
11.10 	The student tuition relief may not be offset by 
11.11 	increases in mandatory fees, charges, or other 
11.12 	assessments to the student.
11.13 	(b) $1,500,000 in fiscal year 2018 and 
11.14 	$1,500,000 in fiscal year 2019 are 
11.15 	appropriated from the general fund to the 
11.16 	Board of Trustees of the Minnesota State 
11.17 	Colleges and Universities to provide the 
11.18 	supplemental aid under article 2, section 10.
11.19 	(c) The Board of Trustees is requested to help 
11.20 	Minnesota close the attainment gap by funding 
11.21 	activities which improve retention and 
11.22 	completion for students of color.
11.23 	(d) $260,000 in fiscal year 2018 and $140,000 
11.24 	in fiscal year 2019 are for transfer to the Cook 
11.25 	County Higher Education Board to provide 
11.26 	educational programming and academic 
11.27 	support services to remote regions in 
11.28 	northeastern Minnesota. The project shall 
11.29 	continue to provide information to the Board 
11.30 	of Trustees on the number of students served, 
11.31 	credit hours delivered, and services provided 
11.32 	to students.
11.33 	(e) $50,000 in fiscal year 2018 and $50,000 
11.34 	in fiscal year 2019 are for developing and 
12.1 	teaching online agricultural courses by farm 
12.2 	business management faculty at colleges that 
12.3 	offer farm business management.
12.4 	(f) $175,000 in fiscal year 2018 and $175,000 
12.5 	in fiscal year 2019 are to implement the 
12.6 	veterans-to-agriculture pilot program. The 
12.7 	appropriation shall be used to continue this 
12.8 	program at South Central College, North 
12.9 	Mankato campus, and to support, in equal 
12.10 	amounts, up to six program sites statewide. 
12.11 	No more than two percent of the total 
12.12 	appropriation provided by this section may be 
12.13 	used for administrative purposes at the system 
12.14 	level.
12.15 	The veterans-to-agriculture pilot program shall 
12.16 	be designed to facilitate the entrance of 
12.17 	military veterans into careers related to 
12.18 	agriculture and food production, processing, 
12.19 	and distribution through intensive, four- to 
12.20 	eight-week academic training in relevant fields 
12.21 	of study, job development programs and 
12.22 	outreach to potential employers, and 
12.23 	appropriate career-building skills designed to 
12.24 	assist returning veterans in entering the 
12.25 	civilian workforce. Upon successful 
12.26 	completion, a student shall be awarded a 
12.27 	certificate of completion or another 
12.28 	appropriate academic credit.
12.29 	No later than December 15, 2018, the program 
12.30 	shall report to the committees of the house of 
12.31 	representatives and the senate with jurisdiction 
12.32 	over issues related to agriculture, veterans 
12.33 	affairs, and higher education on program 
12.34 	operations, including information on 
13.1 	participation rates, new job placements, and 
13.2 	any unmet needs.
13.3 	(g) This appropriation includes $40,000 in 
13.4 	fiscal year 2018 and $40,000 in fiscal year 
13.5 	2019 to implement the sexual assault policies 
13.6 	required under Minnesota Statutes, section 
13.7 	135A.15.
13.8 	(h) $2,500,000 in fiscal year 2018 and 
13.9 	$2,500,000 in fiscal year 2019 are for 
13.10 	upgrading the Integrated Statewide Record 
13.11 	System. The base for this appropriation in 
13.12 	fiscal year 2024 is $0.
13.13 	(i) $100,000 in fiscal year 2018 is for use by 
13.14 	Winona State University for HealthForce 
13.15 	Minnesota to develop educational materials 
13.16 	that increase awareness of career opportunities 
13.17 	available in the field of senior care. The 
13.18 	educational materials developed under this 
13.19 	provision must be appropriate for students in 
13.20 	K-12 education settings, dislocated workers, 
13.21 	and rural communities. Materials must be 
13.22 	developed in collaboration with employers 
13.23 	and trade organizations representing 
13.24 	employers in the field of senior care.
13.25 	Winona State University shall submit a report 
13.26 	by February 1, 2019, to the chairs and ranking 
13.27 	minority members of the legislative 
13.28 	committees with jurisdiction over higher 
13.29 	education finance and policy. The report must 
13.30 	include information about the materials 
13.31 	developed; to whom materials were 
13.32 	distributed; and identify any collaborations 
13.33 	with employers and trade organizations.

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

14.1
14.2	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

14.3	Subdivision 1.Total Appropriation
 	$
	639,318,000
	$
	647,318,000

14.4	Appropriations by Fund
	
14.5		2018
	2019
	
14.6	General
	637,161,000
	645,161,000
	
14.7	Health Care Access
	2,157,000
	2,157,000
	
14.8 	The amounts that may be spent for each 
14.9 	purpose are specified in the following 
14.10 	subdivisions.

14.11	Subd. 2.Operations and Maintenance
 		569,723,000
		577,723,000
	
14.12 	(a) The Board of Regents is requested to set 
14.13 	tuition rates for academic year 2017-2018 at 
14.14 	levels not to exceed the rates for academic 
14.15 	year 2016-2017.
14.16 	The Board of Regents is requested to set 
14.17 	tuition rates for academic year 2018-2019 at 
14.18 	levels not to exceed the rates for academic 
14.19 	year 2017-2018.
14.20 	(b) $15,000,000 in fiscal year 2018 and 
14.21 	$15,000,000 in fiscal year 2019 are to: (1) 
14.22 	increase the medical school's research 
14.23 	capacity; (2) improve the medical school's 
14.24 	ranking in National Institutes of Health 
14.25 	funding; (3) ensure the medical school's 
14.26 	national prominence by attracting and 
14.27 	retaining world-class faculty, staff, and 
14.28 	students; (4) invest in physician training 
14.29 	programs in rural and underserved 
14.30 	communities; and (5) translate the medical 
14.31 	school's research discoveries into new 
14.32 	treatments and cures to improve the health of 
14.33 	Minnesotans.
15.1 	(c) $800,000 in fiscal year 2018 and $800,000 
15.2 	in fiscal year 2019 are for health training 
15.3 	restoration. This appropriation must be used 
15.4 	to support all of the following: (1) faculty 
15.5 	physicians who teach at eight residency 
15.6 	program sites, including medical resident and 
15.7 	student training programs in the Department 
15.8 	of Family Medicine; (2) the Mobile Dental 
15.9 	Clinic; and (3) expansion of geriatric 
15.10 	education and family programs.
15.11 	(d) $2,000,000 in fiscal year 2018 and 
15.12 	$2,000,000 in fiscal year 2019 are for the 
15.13 	Minnesota Discovery, Research, and 
15.14 	InnoVation Economy funding program for 
15.15 	cancer care research.

15.16	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
15.17 	This appropriation is from the health care 
15.18 	access fund.

15.19	Subd. 4.Special Appropriations

15.20	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
15.21 	For the Agricultural Experiment Station and 
15.22 	the Minnesota Extension Service:
15.23 	(1) the agricultural experiment stations and 
15.24 	Minnesota Extension Service must convene 
15.25 	agricultural advisory groups to focus research, 
15.26 	education, and extension activities on producer 
15.27 	needs and implement an outreach strategy that 
15.28 	more effectively and rapidly transfers research 
15.29 	results and best practices to producers 
15.30 	throughout the state;
15.31 	(2) this appropriation includes funding for 
15.32 	research and outreach on the production of 
15.33 	renewable energy from Minnesota biomass 
15.34 	resources, including agronomic crops, plant 
16.1 	and animal wastes, and native plants or trees. 
16.2 	The following areas should be prioritized and 
16.3 	carried out in consultation with Minnesota 
16.4 	producers, renewable energy, and bioenergy 
16.5 	organizations:
16.6 	(i) biofuel and other energy production from 
16.7 	perennial crops, small grains, row crops, and 
16.8 	forestry products in conjunction with the 
16.9 	Natural Resources Research Institute (NRRI);
16.10 	(ii) alternative bioenergy crops and cropping 
16.11 	systems; and
16.12 	(iii) biofuel coproducts used for livestock feed;
16.13 	(3) this appropriation includes funding for the 
16.14 	College of Food, Agricultural, and Natural 
16.15 	Resources Sciences to establish and provide 
16.16 	leadership for organic agronomic, 
16.17 	horticultural, livestock, and food systems 
16.18 	research, education, and outreach and for the 
16.19 	purchase of state-of-the-art laboratory, 
16.20 	planting, tilling, harvesting, and processing 
16.21 	equipment necessary for this project;
16.22 	(4) this appropriation includes funding for 
16.23 	research efforts that demonstrate a renewed 
16.24 	emphasis on the needs of the state's agriculture 
16.25 	community. The following areas should be 
16.26 	prioritized and carried out in consultation with 
16.27 	Minnesota farm organizations:
16.28 	(i) vegetable crop research with priority for 
16.29 	extending the Minnesota vegetable growing 
16.30 	season;
16.31 	(ii) fertilizer and soil fertility research and 
16.32 	development;
17.1 	(iii) soil, groundwater, and surface water 
17.2 	conservation practices and contaminant 
17.3 	reduction research;
17.4 	(iv) discovering and developing plant varieties 
17.5 	that use nutrients more efficiently;
17.6 	(v) breeding and development of turf seed and 
17.7 	other biomass resources in all three Minnesota 
17.8 	biomes;
17.9 	(vi) development of new disease-resistant and 
17.10 	pest-resistant varieties of turf and agronomic 
17.11 	crops;
17.12 	(vii) utilizing plant and livestock cells to treat 
17.13 	and cure human diseases;
17.14 	(viii) the development of dairy coproducts;
17.15 	(ix) a rapid agricultural response fund for 
17.16 	current or emerging animal, plant, and insect 
17.17 	problems affecting production or food safety;
17.18 	(x) crop pest and animal disease research;
17.19 	(xi) developing animal agriculture that is 
17.20 	capable of sustainably feeding the world;
17.21 	(xii) consumer food safety education and 
17.22 	outreach;
17.23 	(xiii) programs to meet the research and 
17.24 	outreach needs of organic livestock and crop 
17.25 	farmers; and
17.26 	(xiv) alternative bioenergy crops and cropping 
17.27 	systems; and growing, harvesting, and 
17.28 	transporting biomass plant material; and
17.29 	(5) by February 1, 2019, the Board of Regents 
17.30 	must submit a report to the legislative 
17.31 	committees and divisions with jurisdiction 
17.32 	over agriculture and higher education finance 
18.1 	on the status and outcomes of research and 
18.2 	initiatives funded in this paragraph.

18.3	(b) Health Sciences
		9,204,000
		9,204,000
	
18.4 	$346,000 each year is to support up to 12 
18.5 	resident physicians in the St. Cloud Hospital 
18.6 	family practice residency program. The 
18.7 	program must prepare doctors to practice 
18.8 	primary care medicine in rural areas of the 
18.9 	state. The legislature intends this program to 
18.10 	improve health care in rural communities, 
18.11 	provide affordable access to appropriate 
18.12 	medical care, and manage the treatment of 
18.13 	patients in a more cost-effective manner. The 
18.14 	remainder of this appropriation is for the rural 
18.15 	physicians associates program; the Veterinary 
18.16 	Diagnostic Laboratory; health sciences 
18.17 	research; dental care; the Biomedical 
18.18 	Engineering Center; and the collaborative 
18.19 	partnership between the University of 
18.20 	Minnesota and Mayo Clinic for regenerative 
18.21 	medicine, research, clinical translation, and 
18.22 	commercialization.

18.23	(c) Institute of Technology
		1,140,000
		1,140,000
	
18.24 	For the geological survey and the talented 
18.25 	youth mathematics program.

18.26	(d) System Special
		6,181,000
		6,181,000
	
18.27 	For general research, the Labor Education 
18.28 	Service, Natural Resources Research Institute, 
18.29 	Center for Urban and Regional Affairs, Bell 
18.30 	Museum of Natural History, and the 
18.31 	Humphrey exhibit.
18.32 	$1,000,000 in fiscal year 2018 and $1,000,000 
18.33 	in fiscal year 2019 are for the Natural 
19.1 	Resources Research Institute to invest in 
19.2 	applied research for economic development.

19.3
19.4	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,991,000
		7,991,000
	
19.5 	This appropriation is for the following 
19.6 	activities:
19.7 	(1) $7,491,000 in fiscal year 2018 and 
19.8 	$7,491,000 in fiscal year 2019 are for the 
19.9 	direct and indirect expenses of the 
19.10 	collaborative research partnership between the 
19.11 	University of Minnesota and the Mayo 
19.12 	Foundation for research in biotechnology and 
19.13 	medical genomics. An annual report on the 
19.14 	expenditure of these funds must be submitted 
19.15 	to the governor and the chairs of the legislative 
19.16 	committees responsible for higher education 
19.17 	finance by June 30 of each fiscal year.
19.18 	(2) $500,000 in fiscal year 2018 and $500,000 
19.19 	in fiscal year 2019 are to award competitive 
19.20 	grants to conduct research into the prevention, 
19.21 	treatment, causes, and cures of Alzheimer's 
19.22 	disease and other dementias.

19.23	Subd. 5.Academic Health Center
 					
19.24 	The appropriation for Academic Health Center 
19.25 	funding under Minnesota Statutes, section 
19.26 	297F.10, is estimated to be $22,250,000 each 
19.27 	year.

19.28	Sec. 5. MAYO CLINIC

19.29	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
19.30 	The amounts that may be spent are specified 
19.31 	in the following subdivisions.

19.32	Subd. 2.Medical School
 		665,000
		665,000
	
20.1 	The state must pay a capitation each year for 
20.2 	each student who is a resident of Minnesota. 
20.3 	The appropriation may be transferred between 
20.4 	each year of the biennium to accommodate 
20.5 	enrollment fluctuations. It is intended that 
20.6 	during the biennium the Mayo Clinic use the 
20.7 	capitation money to increase the number of 
20.8 	doctors practicing in rural areas in need of 
20.9 	doctors.

20.10
20.11	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
20.12 	The state must pay stipend support for up to 
20.13 	27 residents each year.

20.14 	ARTICLE 2
20.15 	HIGHER EDUCATION POLICY

20.16 	Section 1. Minnesota Statutes 2016, section 135A.031, subdivision 7, is amended to read:
20.17 		Subd. 7.Reports. (a) The University of Minnesota and the Minnesota State Colleges 
20.18 	and Universities systems shall include in their biennial budget proposals to the legislature:
20.19 	(1) a five-year history of systemwide expenditures, reported by:
20.20 	(i) functional areas, including instruction, research, public service, student financial aid, 
20.21 	and auxiliary services, and including direct costs and indirect costs, such as institutional 
20.22 	support, academic support, student services, and facilities management, associated with 
20.23 	each functional area; and
20.24 	(ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
20.25 	(2) a five-year history of the system's total instructional expenditures per full-year 
20.26 	equivalent student, by level of instruction, including upper-division undergraduate, 
20.27 	lower-division undergraduate, graduate, professional, and other categories of instructional 
20.28 	programs offered by the system;
20.29 	(3) a five-year history of the system's total revenues by funding source, including tuition, 
20.30 	state operations and maintenance appropriations, state special appropriations, other restricted 
20.31 	state funds, federal appropriations, sponsored research funds, gifts, auxiliary revenue, indirect 
20.32 	cost recovery, and any other revenue sources;
21.1 	(4) an explanation describing how state appropriations made to the system in the previous 
21.2 	biennium were allocated and the methodology used to determine the allocation;
21.3 	(5) data describing how the institution reallocated resources to advance the priorities set 
21.4 	forth in the budget submitted under section 135A.034 and the statewide objectives under 
21.5 	section 135A.011. The information must indicate whether instruction and support programs 
21.6 	received a reduction in or additional resources. The total amount reallocated must be clearly 
21.7 	explained;
21.8 	(6) the tuition rates and fees established by the governing board in each of the past ten 
21.9 	years and comparison data for peer institutions and national averages;
21.10 	(7) data on the number and proportion of students graduating within four, five, and six 
21.11 	years from universities and within three years from colleges as reported in the integrated 
21.12 	postsecondary education data system. These data must be provided for each institution by 
21.13 	race, ethnicity, and gender. Data and information must be submitted that describe the system's 
21.14 	plan and progress toward attaining the goals set forth in the plan to increase the number and 
21.15 	proportion of students that graduate within four, five, or six years from a university or within 
21.16 	three years from a college;
21.17 	(8) data on, and the methodology used to measure, the number of students traditionally 
21.18 	underrepresented in higher education enrolled at the system's institutions. Data and 
21.19 	information must be submitted that describe the system's plan and progress toward attaining 
21.20 	the goals set forth in the plan to increase the recruitment, retention, and timely graduation 
21.21 	of students traditionally underrepresented in higher education; and
21.22 	(9) data on the revenue received from all sources to support research or workforce 
21.23 	development activities or the system's efforts to license, sell, or otherwise market products, 
21.24 	ideas, technology, and related inventions created in whole or in part by the system. Data 
21.25 	and information must be submitted that describe the system's plan and progress toward 
21.26 	attaining the goals set forth in the plan to increase the revenue received to support research 
21.27 	or workforce development activities or revenue received from the licensing, sale, or other 
21.28 	marketing and technology transfer activities by the system.;
21.29 	(10) data on work completed by any consultant who is not an employee of the system 
21.30 	for which the system paid in excess of $500,000. Data must include the name of the 
21.31 	consultant, the total cost incurred, a description of the work completed, and a description 
21.32 	of the reasons for using an outside consultant and not internal staff;
21.33 	(11) aggregate data on the following:
22.1 	(i) student demographics;
22.2 	(ii) student enrollment history, including student enrollment by legislative district, degrees 
22.3 	and certificates by region;
22.4 	(iii) student debt and fee history;
22.5 	(iv) tuition, including rate history;
22.6 	(v) student academics, including completion rates by preparedness and financial need;
22.7 	(vi) human resources, including employee head count and employee demographics;
22.8 	(vii) facilities, including physical space overview, condition, square footage and 
22.9 	distribution by region, any deferred maintenance, capital bonding requested and received;
22.10 	(viii) administrative costs, including administrators as percent of total employee head 
22.11 	count, system office budget as percent of total system general fund revenue, institutional 
22.12 	support spending as a percent of total expenses, and institutional spending per college and 
22.13 	university; and
22.14 	(ix) finances, including system expenditures and revenues, college and university 
22.15 	operating budgets, allocation method, and results; and
22.16 	(12) a comparison of the expenditure categories from the most recent fiscal year to the 
22.17 	prior fiscal year for both functional areas and objects of expenditure, including a full 
22.18 	explanation of all material changes to the expenditure categories.
22.19 	(b) Data required by this subdivision shall be submitted by the public postsecondary 
22.20 	systems to the Minnesota Office of Higher Education and the Department of Management 
22.21 	and Budget and included in the biennial budget document. Representatives from each system, 
22.22 	in consultation with the commissioner of management and budget and the commissioner 
22.23 	of the Office of Higher Education, shall develop consistent reporting practices for this 
22.24 	purpose.
22.25 	(c) To the extent practicable, each system shall develop the ability to respond to legislative 
22.26 	requests for financial analyses that are more detailed than those required by this subdivision, 
22.27 	including but not limited to analyses that show expenditures or revenues by institution or 
22.28 	program, or in multiple categories of expenditures or revenues, and analyses that show 
22.29 	revenue sources for particular types of expenditures.

23.1 	Sec. 2. Minnesota Statutes 2016, section 135A.15, subdivision 1a, is amended to read:
23.2 		Subd. 1a.Sexual assault definition. For the purposes of this section, "sexual assault" 
23.3 	means forcible sex offenses rape, sex offenses - fondling, sex offenses - incest, or sex 
23.4 	offenses - statutory rape as defined in Code of Federal Regulations, title 34, part 668, subpart 
23.5 	D, appendix A, as amended.

23.6 	Sec. 3. Minnesota Statutes 2016, section 136A.101, subdivision 5a, is amended to read:
23.7 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means the 
23.8 	amount of a family's contribution to a student's cost of attendance, as determined by a federal 
23.9 	need analysis. For dependent students, the assigned family responsibility is 94 93 percent 
23.10 	of the parental contribution. For independent students with dependents other than a spouse, 
23.11 	the assigned family responsibility is 86 85 percent of the student contribution. For 
23.12 	independent students without dependents other than a spouse, the assigned family 
23.13 	responsibility is 50 49 percent of the student contribution.

23.14 	Sec. 4. Minnesota Statutes 2016, section 136A.1275, is amended to read:
23.15 	136A.1275 GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS
23.16 	TEACHER CANDIDATE GRANTS.
23.17 		Subdivision 1.Establishment. (a) The commissioner of the Office of Higher Education 
23.18 	must establish a grant program for student teaching stipends for low-income students enrolled 
23.19 	in a Board of Teaching-approved teacher preparation program who are interested in teaching 
23.20 	in a high needs subject area or region intend to teach in a shortage area after graduating and 
23.21 	receiving their teaching license or belong to an underrepresented racial or ethnic group. For 
23.22 	purposes of this section, "high needs subject area or region" means a shortage of teachers 
23.23 	teaching in particular subject areas or a shortage of teachers teaching in particular regions 
23.24 	of the state identified in the commissioner of education's biennial survey of districts under 
23.25 	section 127A.05, subdivision 6, or in another Department of Education survey on teacher 
23.26 	shortages.
23.27 	(b) "Shortage area" means a license field or economic development region within 
23.28 	Minnesota defined as a shortage area by the Department of Education using data collected 
23.29 	for the teacher supply and demand report under section 127A.05, subdivision 6, or other 
23.30 	surveys conducted by the Department of Education that provide indicators for teacher supply 
23.31 	and demand.
24.1 		Subd. 2.Eligibility. To be eligible for a grant under this section, a teacher candidate 
24.2 	must:
24.3 	(1) be enrolled in a Board of Teaching-approved teacher preparation program that requires 
24.4 	at least 12 weeks of student teaching and results in the teacher candidate receiving in order 
24.5 	to be recommended for a full professional teaching license enabling the licensee to teach 
24.6 	in a high needs subject area or region; and
24.7 	(2) demonstrate financial need based on criteria established by the commissioner under 
24.8 	subdivision 3; and
24.9 	(3) intend to teach in a shortage area or belong to an underrepresented racial or ethnic 
24.10 	group.
24.11 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
24.12 	application process and other guidelines for implementing this program, including repayment 
24.13 	responsibilities for stipend recipients who do not complete student teaching or who leave 
24.14 	Minnesota to teach in another state during the first year after student teaching.
24.15 	(b) The commissioner must determine each academic year the stipend amount up to 
24.16 	$7,500 based on the amount of available funding and, the number of eligible applicants, 
24.17 	and the financial need of the applicants.

24.18 	Sec. 5. Minnesota Statutes 2016, section 136A.685, is amended to read:
24.19 	136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR 
24.20 	MISREPRESENTATION.
24.21 	The office shall not provide may revoke, or deny an application for, registration or degree 
24.22 	or name approval to a school if there has been a criminal, civil, or administrative adjudication 
24.23 	of fraud or misrepresentation in Minnesota or in another state or jurisdiction against the 
24.24 	school or its owner, officers, agents, or sponsoring organization. If the adjudication was 
24.25 	related to a particular academic program or programs, the office may revoke degree approval, 
24.26 	or deny an application for degree approval, for that program only.
24.27 	The adjudication of fraud or misrepresentation is sufficient cause for the office to 
24.28 	determine that a school:
24.29 	(1) does not qualify for exemption under section 136A.657; or
24.30 	(2) is not approved to grant degrees or to use the term "academy," "college," "institute," 
24.31 	or "university" in its name.

25.1 	Sec. 6. [298.2215] COUNTY SCHOLARSHIP PROGRAM.
25.2 		Subdivision 1.Establishment. A county may establish a scholarship fund from any 
25.3 	unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or 
25.4 	298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used 
25.5 	at a two-year Minnesota State Colleges and Universities institution within the county. The 
25.6 	county shall establish procedures for applying for and distributing the scholarships.
25.7 		Subd. 2.Eligibility. An applicant for a scholarship under this section must be a resident 
25.8 	of the county at the time of the applicant's high school graduation. The county may establish 
25.9 	additional eligibility criteria.

25.10 	Sec. 7. Laws 2014, chapter 312, article 1, section 15, is amended to read:
25.11 	Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.
 25.12 	(a) For fiscal years 2016 to 2041 2017, $3,500,000 is added to the base operations and 
25.13 	maintenance appropriation to the Board of Regents of the University of Minnesota in Laws 
25.14 	2013, chapter 99, article 1, section 5.
25.15 	(b) For fiscal years 2018 to 2040, $3,312,000 is added to the base operations and 
25.16 	maintenance appropriation to the Board of Regents of the University of Minnesota in Laws 
25.17 	2013, chapter 99, article 1, section 5.

25.18 	Sec. 8. DEVELOPMENTAL EDUCATION REFORM.
 25.19 	(a) The Board of Trustees of the Minnesota State Colleges and Universities shall create 
25.20 	a plan to reform developmental education offerings on system campuses aimed at reducing 
25.21 	the number of students placed into developmental education. The plan must include, but is 
25.22 	not limited to:
25.23 	(1) a systemwide multiple measures placement plan to guide campuses in placement of 
25.24 	students into developmental education courses;
25.25 	(2) uniform cut scores for student placement, where appropriate, which will lead to fewer 
25.26 	students being placed into developmental education courses;
25.27 	(3) other identified system policy changes that will decrease the number of students 
25.28 	being placed into developmental education courses;
25.29 	(4) accelerated pathways in mathematics, reading, and composition to ensure students 
25.30 	can complete developmental education work in no more than one year, including allowing 
25.31 	for students to enter college-level gateway courses in one year whenever possible;
26.1 	(5) a comprehensive examination of the cost structure of developmental education, 
26.2 	including potential financial incentives for students or other mechanisms to lower the cost 
26.3 	of developmental offerings for students; and
26.4 	(6) identified best practices and targeted support strategies such as the use of supplemental 
26.5 	instruction, that may be used on every system campus around developmental education 
26.6 	offerings.
26.7 	(b) The plan must include deadlines for implementation of proposed changes and must 
26.8 	be submitted to the chairs and ranking minority members of the legislative committees with 
26.9 	jurisdiction over higher education finance and policy by February 15, 2018.
26.10 	(c) The plan, in its entirety, shall be implemented by the start of the 2020-2021 academic 
26.11 	term, with individual provisions being implemented earlier as dictated by the plan.

26.12 	Sec. 9. GREATER MINNESOTA OUTREACH AND RECRUITMENT.
 26.13 	The Board of Regents of the University of Minnesota shall develop a plan to conduct 
26.14 	outreach and recruitment of students from Minnesota, specifically identifying mechanisms 
26.15 	to increase the number of students from greater Minnesota who are admitted to the university 
26.16 	campus located in the metropolitan area. Greater Minnesota is defined as any area other 
26.17 	than the area described in Minnesota Statutes, section 473.121, subdivision 4. The plan 
26.18 	must be submitted to the chairs and ranking members of the senate and house of 
26.19 	representatives legislative committees with jurisdiction over higher education finance and 
26.20 	policy by February 15, 2018.

26.21 	Sec. 10. SCHOOL DISTRICT GRADUATE REPORTING.
 26.22 	(a) The commissioner of the Office of Higher Education must report on its Web site the 
26.23 	following aggregate information on students graduating from Minnesota high schools:
26.24 	(1) the number and percent of students from each high school placed in supplemental 
26.25 	or developmental education;
26.26 	(2) the number and percent of students from each high school who complete supplemental 
26.27 	or developmental education within one academic year;
26.28 	(3) the number and percent of students from each high school that complete gateway 
26.29 	courses in one academic year; and
26.30 	(4) time to complete a degree or certificate.
27.1 	(b) Reporting must be aggregated by school district and must disaggregate student data 
27.2 	by race, ethnicity, free or reduced lunch eligibility, and age. The commissioner of the Office 
27.3 	of Higher Education must post the report on its Web site on or before October 1, 2017, and 
27.4 	update the report at least annually thereafter.

27.5 	Sec. 11. SUPPLEMENTAL AID FOR TWO-YEAR MNSCU INSTITUTIONS.
 27.6 	The Board of Trustees of the Minnesota State Colleges and Universities shall provide 
27.7 	supplemental aid for operations and maintenance to the president of each two-year institution 
27.8 	in the system with at least one campus that is not located in a metropolitan county, as defined 
27.9 	in Minnesota Statutes, section 473.121, subdivision 4. The board shall transfer $50,000 for 
27.10 	each campus not located in a metropolitan county in each year to the president of each 
27.11 	institution that includes such a campus, provided that no institution may receive more than 
27.12 	$150,000 in total supplemental aid each year.

27.13 	Sec. 12. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS 
27.14 	EXPENSE ALLOWANCE.
 27.15 	(a) For the purposes of the state grant program under Minnesota Statutes, section 
27.16 	136A.121, for the biennium ending June 30, 2019, the tuition maximum is $14,186 in each 
27.17 	fiscal year of the biennium for students in four-year programs, and $5,736 in each fiscal 
27.18 	year of the biennium for students in two-year programs.
27.19 	(b) The living and miscellaneous expense allowance for the state grant program under 
27.20 	Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2019, is set at 
27.21 	$9,320 for each fiscal year of the biennium.

27.22 	Sec. 13. ONGOING APPROPRIATION.
 27.23 	The appropriation under Laws 2016, chapter 189, article 25, section 62, subdivision 11, 
27.24 	may be used to provide grants for any purpose under Minnesota Statutes, section 136A.1275.