HF 1101

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/29/2011 08:00pm

A bill for an act
relating to higher education; amending postsecondary education provisions;
requiring reports; changing Minnesota college savings plan matching grants;
making technical changes; modifying definitions; setting requirements for
credit transfer; providing stable undergraduate tuition rates; modifying achieve
scholarship program; modifying contract and salary provisions; prohibiting use
of certain public funds to support human cloning; requiring a study of graduate
education in for-profit sector; repealing certain provisions related to equipment
and apparel; appropriating money; amending Minnesota Statutes 2010, sections
15A.081, subdivision 7c; 135A.51, subdivision 2; 136A.121, subdivision 6;
136F.40, subdivision 2; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05,
subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes,
chapters 136F; 137; 145; repealing Minnesota Statutes 2010, sections 135A.26;
136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009, chapter
95, article 2, section 39.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

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
summarize direct appropriations, by fund, made in this article.
new text end

new text begin SUMMARY BY FUND new text end
		new text begin 2012 new text end		new text begin 2013 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 1,252,884,000 new text end	new text begin $ new text end	new text begin 1,252,633,000 new text end	new text begin $ new text end	new text begin 2,505,517,000 new text end
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
new text begin Total new text end	new text begin $ new text end	new text begin 1,255,041,000 new text end	new text begin $ new text end	new text begin 1,254,790,000 new text end	new text begin $ new text end	new text begin 2,509,831,000 new text end

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
summarize direct appropriations, by agency, made in this article.
new text end

new text begin SUMMARY BY AGENCY - ALL FUNDS new text end
		new text begin 2012 new text end		new text begin 2013 new text end		new text begin Total new text end
new text begin Minnesota Office of Higher Education new text end	new text begin $ new text end	new text begin 193,008,000 new text end	new text begin $ new text end	new text begin 192,757,000 new text end	new text begin $ new text end	new text begin 385,765,000 new text end
new text begin Mayo Medical Foundation 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
new text begin Board of Trustees of the Minnesota State Colleges and Universities new text end		new text begin 529,839,000 new text end		new text begin 529,839,000 new text end		new text begin 1,059,678,000 new text end
new text begin Board of Regents of the University of Minnesota new text end		new text begin 530,843,000 new text end		new text begin 530,843,000 new text end		new text begin 1,061,686,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,255,041,000 new text end	new text begin $ new text end	new text begin 1,254,790,000 new text end	new text begin $ new text end	new text begin 2,509,831,000 new text end

Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

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

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2012 new text end		new text begin 2013 new text end

Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

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 193,008,000 new text end

new text begin $ new text end

new text begin 192,757,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Grants new text end

new text begin 157,700,000 new text end

new text begin 157,700,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin For the biennium, the tuition maximum
is $10,488 in each year for students in
four-year programs, and $5,808 for students
in two-year programs.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $7,000
each year.
new text end

new text begin Subd. 3. new text end new text begin Safety Officers' Survivors new text end

new text begin 100,000 new text end

new text begin 100,000 new text end

new text begin This appropriation is to provide educational
benefits under Minnesota Statutes, section
299A.45, to eligible dependent children and
to the spouses of public safety officers killed
in the line of duty.
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 4. 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

new text begin Subd. 5. new text end new text begin State Work-Study new text end

new text begin 14,060,000 new text end

new text begin 14,060,000 new text end

new text begin Subd. 6. new text end new text begin Indian Scholarships new text end

new text begin 1,900,000 new text end

new text begin 1,900,000 new text end

new text begin This appropriation includes funding each
year to administer the Indian scholarship
program.
new text end

new text begin Subd. 7. new text end new text begin Intervention for College Attendance Program Grants new text end

new text begin 671,000 new text end

new text begin 671,000 new text end

new text begin For grants under Minnesota Statutes,
section 136A.861. Up to $50,000 of this
appropriation each year may be used for
administrative expenses.
new text end

new text begin Subd. 8. 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

new text begin Subd. 9. new text end new text begin Interstate Tuition Reciprocity new text end

new text begin 3,150,000 new text end

new text begin 3,250,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.
new text end

new text begin Subd. 10. new text end new text begin Minnesota College Savings Plan new text end

new text begin 350,000 new text end

new text begin -0- new text end

new text begin Subd. 11. new text end new text begin MnLINK Gateway and Minitex new text end

new text begin 5,730,000 new text end

new text begin 5,730,000 new text end

new text begin Subd. 12. new text end new text begin Student and Parent Information new text end

new text begin 119,000 new text end

new text begin 118,000 new text end

new text begin Subd. 13. new text end new text begin Get Ready new text end

new text begin 175,000 new text end

new text begin 175,000 new text end

new text begin Subd. 14. new text end new text begin Minnesota Minority Partnership new text end

new text begin 43,000 new text end

new text begin 43,000 new text end

new text begin Subd. 15. new text end new text begin Agency Administration new text end

new text begin 2,231,000 new text end

new text begin 2,231,000 new text end

new text begin Subd. 16. new text end new text begin Balances Forward new text end

new text begin A balance in the first year under this section
does not cancel, but is available for the
second year.
new text end

new text begin Subd. 17. new text end new text begin Transfers new text end

new text begin The Minnesota Office of Higher Education
may transfer unencumbered balances from
the appropriations in this section to the state
grant appropriation, the interstate tuition
reciprocity appropriation, the child care
grant appropriation, the Indian scholarship
appropriation, the state work-study
appropriation, and the public safety officers'
survivors appropriation. Transfers from the
child care or state work-study appropriations
may only be made to the extent there is a
projected surplus in the appropriation. A
transfer may be made only with prior written
notice to the chairs of the senate and house of
representatives committees with jurisdiction
over higher education finance.
new text end

Sec. 4. new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

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 529,839,000 new text end

new text begin $ new text end

new text begin 529,839,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 529,839,000 new text end	new text begin 529,839,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Central Office and Shared Services Unit new text end

new text begin 40,000,000 new text end

new text begin 40,000,000 new text end

new text begin For the Office of the Chancellor and the
Shared Services Division.
new text end

new text begin Any reductions in the amount of
appropriations under this subdivision and
the appropriations for the Office of the
Chancellor and the Shared Services Division
in the biennium ending June 30, 2011,
must not be allocated to any institution and
must not be charged back to any campus or
institution.
new text end

new text begin Any new transformational initiatives for the
Minnesota State Colleges and Universities
undertaken by the Board of Trustees during
fiscal years 2012 and 2013 must be funded
out of the direct appropriation for the central
office and shared services. None of the
direct appropriations for operation and
maintenance of the Minnesota State Colleges
and Universities may be used for new
transformational initiatives in the biennium
ending June 30, 2013.
new text end

new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end

new text begin 485,669,000 new text end

new text begin 485,669,000 new text end

new text begin $102,000 each year is for the Cook
County Higher Education Board to provide
educational programs and academic support
services. The base appropriation under this
paragraph is $102,000.
new text end

new text begin One percent of the fiscal year 2013
appropriation in this subdivision is available
in fiscal year 2013 after the Board of
Trustees of the Minnesota State Colleges
and Universities demonstrates to the
commissioner of management and budget
that the board has achieved at least three of
the following five performance goals:
new text end

new text begin (1) increase by at least seven percent,
compared to fiscal year 2009, graduates or
degrees, diplomas and certificates conferred;
new text end

new text begin (2) increase by at least ten percent, compared
to fiscal year 2010, the number of students
of color;
new text end

new text begin (3) increase by at least fifteen percent,
compared to fiscal year 2010, the full year
equivalent enrollment of students taking
online or blended courses or the number of
online and blended sections;
new text end

new text begin (4) increase by at least one percent the fall
2011 persistence and completion rate for fall
2010 entering students compared to the fall
2010 rate for fall 2009 entering students; and
new text end

new text begin (5) decrease by at least three percent,
compared to calendar year 2009, total energy
consumption.
new text end

new text begin By October 1, 2011, the Board of Trustees
and the Minnesota Office of Higher
Education must agree on specific numerical
indicators and definitions for each of the five
goals that will be used to demonstrate the
Minnesota State Colleges and Universities'
attainment of each goal.
new text end

new text begin On or before April 1, 2012, the Board
of Trustees must report to the legislative
committees with primary jurisdiction over
higher education finance and policy the
progress of the Minnesota State Colleges and
Universities toward attaining the goals.
new text end

new text begin Subd. 4. new text end new text begin Learning Network of Minnesota new text end

new text begin 4,170,000 new text end

new text begin 4,170,000 new text end

new text begin Subd. 5. new text end new text begin Education Priorities new text end

new text begin The Board of Trustees, in fulfilling the
requirements of Minnesota Statutes, section
136F.06, by making reductions, approving
programs of study, establishing requirements
for completion of programs, and approving
course offerings and requirements for
credentials, must place the highest priority on
meeting the needs of Minnesota employers
for a skilled workforce. The board must
focus on the efficient delivery of higher
education, eliminate duplication throughout
the system, and streamline the operation
of the system to provide an education that
prepares students for the workforce needs of
Minnesota.
new text end

new text begin Subd. 6. new text end new text begin Minnesota State Colleges and Universities Tuition Maximums new text end

new text begin In the biennium ending June 30, 2013, the
maximum increase in tuition and mandatory
fees for a Minnesota resident undergraduate
student must not exceed:
new text end

new text begin (1) two percent per year at a state college;
and
new text end

new text begin (2) four percent per year at a state university.
new text end

Sec. 5. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

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 530,843,000 new text end

new text begin $ new text end

new text begin 530,843,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 528,686,000 new text end	new text begin 528,686,000 new text end
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 The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end

new text begin 466,700,000 new text end

new text begin 466,700,000 new text end

new text begin This appropriation includes funding for
operation and maintenance of the system.
new text end

new text begin One percent of the fiscal year 2013
appropriation in this subdivision is available
in fiscal year 2013 when the Board of Regents
of the University of Minnesota demonstrates
to the commissioner of management and
budget that the board has met at least three of
the following five performance goals:
new text end

new text begin (1) increase the amount of institutional
financial aid so that it is greater in fiscal year
2012 than in fiscal year 2010, excluding
federal stimulus funding. Institutional
financial aid includes funds from the
University of Minnesota Foundation and the
Minnesota Medical Foundation;
new text end

new text begin (2) produce at least 13,500 total degrees on
all campuses in fiscal year 2012;
new text end

new text begin (3) increase the undergraduate four- and
six-year graduation rates on the Twin Cities
campus for 2011-2012, as reported in the
federal completions survey, over the numbers
for 2009-2010, as reported in the federal
completion survey;
new text end

new text begin (4) produce total research and development
expenditures, as reported to the National
Science Foundation (NSF) for the University
of Minnesota system so that the amount
in the 2012 NSF report is not less than the
amount in the 2010 NSF report; and
new text end

new text begin (5) produce sponsored funding from business
and industry so that funding in fiscal year
2012, as reported to the Board of Regents
in December of that year, is not less than
funding in fiscal year 2010.
new text end

new text begin By October 1, 2011, the Board of Regents and
the Minnesota Office of Higher Education
must agree on specific numerical indicators
and definitions for each of the five goals that
will be used to demonstrate the University of
Minnesota's attainment of each goal.
new text end

new text begin On or before April 1, 2012, the Board
of Regents must report to the legislative
committees with primary jurisdiction over
higher education finance and policy the
progress of the University of Minnesota
toward attaining the goals.
new text end

new text begin Subd. 3. new text end new text begin Education Priorities new text end

new text begin The Board of Regents, in fulfilling
their governance responsibilities for
the University of Minnesota by making
reductions, approving programs of study,
establishing requirements for completion of
programs, approving course offerings and
requirements for credentials, and authorizing
and funding research are encouraged to place
the highest priority on meeting the needs of
Minnesota employers for a skilled workforce.
The board must focus on the efficient delivery
of higher education, eliminate duplication
and redundancy, streamline administration,
and focus on providing an education that
prepares students for the workforce needs of
Minnesota.
new text end

new text begin Subd. 4. new text end new text begin University of Minnesota Tuition Maximums new text end

new text begin The legislature expects that in the biennium
ending June 30, 2013, net increases in
tuition revenue attributable to tuition
rate adjustments enacted by the Board of
Regents for the 2011-2012 and 2012-2013
academic years for Minnesota resident
undergraduate students enrolled in the
University of Minnesota will not increase by
more than $17,700,000 for the 2011-2012
academic year and $17,700,000 for the
2012-2013 academic year. The Board of
Regents is encouraged to maximize tuition
revenue gains through productivity measures
including, but not limited to, enrollment
growth, student credit hours, and other
efficiency efforts in order to mitigate the
need for tuition rate increases.
new text end

new text begin Subd. 5. 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

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 6. new text end new text begin Special Appropriations new text end

new text begin (a) Agriculture and Extension Service new text end

new text begin 42,514,000 new text end

new text begin 42,514,000 new text end

new text begin For the Agricultural Experiment Station and
the Minnesota Extension Service.
new text end

new text begin (b) new text begin Health Sciences new text end new text end

new text begin 5,335,000 new text end

new text begin 5,335,000 new text end

new text begin $346,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital
family practice residency program. The
program must prepare doctors to practice
primary care medicine in the rural areas of
the state. The legislature intends this program
to improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner.
new text end

new text begin The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.
new text end

new text begin (c) new text begin Institute of Technology new text end new text end

new text begin 1,129,000 new text end

new text begin 1,129,000 new text end

new text begin For the Geological Survey and the talented
youth mathematics program.
new text end

new text begin (d) System Special new text end

new text begin 5,008,000 new text end

new text begin 5,008,000 new text end

new text begin For general research, industrial relations
education, Natural Resources Research
Institute, Center for Urban and Regional
Affairs, and the Bell Museum of Natural
History.
new text end

new text begin (e) University of Minnesota and Mayo Foundation Partnership new text end

new text begin 8,000,000 new text end

new text begin 8,000,000 new text end

new text begin For the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. This appropriation is
available until expended. An annual report
on the expenditure of these funds must be
submitted to the governor and the chairs
of the senate and house of representatives
committees responsible for higher education
and economic development by June 30 of
each fiscal year.
new text end

new text begin Subd. 7. new text end new text begin Academic Health Center new text end

new text begin The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is estimated to be
$22,343,000 each year.
new text end

Sec. 6. new text begin MAYO MEDICAL FOUNDATION new text end

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

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

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

new text begin The state of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations.
new text end

new text begin It is intended that during the biennium the
Mayo Clinic use the capitation money to
increase the number of doctors practicing in
rural areas in need of doctors.
new text end

new text begin Subd. 3. new text end new text begin Family Practice and Graduate Residency Program new text end

new text begin 686,000 new text end

new text begin 686,000 new text end

new text begin The state of Minnesota must pay stipend
support for up to 27 residents each year.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

Section 1.

Minnesota Statutes 2010, section 15A.081, subdivision 7c, is amended to
read:

Subd. 7c.

Minnesota State Colleges and Universities chancellor.

The Board of
Trustees of the Minnesota State Colleges and Universities shall establish a salary range for
the position of chancellor of the Minnesota State Colleges and Universities. The board
shall submit the proposed salary range to the Legislative Coordinating Commission for
approval, modification, or rejection in the manner provided in section 3.855. The board
shall establish deleted text begin the deleted text end new text begin a new text end salary for the chancellor deleted text begin within the approved salary range deleted text end new text begin that does
not exceed the governor's salary new text end .

In deciding whether to approve a salary increase, the board shall consider the
performance of the chancellor in areas including educational leadership, student success,
system management, human resources, and affirmative action.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
contracts entered into on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2010, section 135A.51, subdivision 2, is amended to read:

Subd. 2.

Senior citizen.

"Senior citizen" means a person who has reached deleted text begin 66 deleted text end new text begin 62
new text end years of age before the beginning of any term, semester or quarter, in which a course of
study is pursued, or a person receiving a railroad retirement annuity who has reached 60
years of age before the beginning of the term.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
terms beginning after July 1, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:

Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of new text begin (1)
new text end allowances specified in law for living and miscellaneous expenses, and new text begin (2) new text end an allowance
for tuition and fees equal to deleted text begin the lesser of deleted text end the average tuition and fees charged by the
institution deleted text begin , deleted text end new text begin that is: (i) for two-year programs, the highest tuition and fees charged by a
Minnesota public college; (ii) for four-year programs, the highest average tuition and fees
charged by a Minnesota public university; new text end or new text begin (iii) for any program new text end the tuition and fee
maximums new text begin if new text end established in law.

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance to the actual number of credits for which the student is enrolled.

(c) The recognized cost of attendance for a student who is confined to a Minnesota
correctional institution shall consist of the tuition and fee component in paragraph (a),
with no allowance for living and miscellaneous expenses.

(d) For the purpose of this subdivision, "fees" include only those fees that are
mandatory and charged to full-time resident students attending the institution. Fees do
not include charges for tools, equipment, computers, or other similar materials where the
student retains ownership. Fees include charges for these materials if the institution retains
ownership. Fees do not include optional or punitive fees.

Sec. 4.

Minnesota Statutes 2010, section 136F.40, subdivision 2, is amended to read:

Subd. 2.

Contracts.

(a) The board may enter into a contract with the chancellor,
a vice-chancellor, or a president, containing terms and conditions of employment. The
terms of the contract must be authorized under a plan approved under section 43A.18,
subdivision 3a. new text begin The salary established for a contract under this section must not exceed
the governor's salary. new text end

(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
contract under this section may provide a liquidated salary amount or other compensation
if a contract is terminated by the board prior to its expiration.

(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
this section may contain a deferred compensation plan made in conformance with section
457(f) of the Internal Revenue Code.

new text begin (d) Notwithstanding any provision of the plan approved under section 43A.18,
subdivision 3a, a contract under this section must not authorize or otherwise provide
for a bonus payment.
new text end

new text begin (e) To promote transparency and accountability, the board must provide timely,
complete, and easily accessible information on its website on the compensation of persons
with contracts under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
contracts entered into on or after that date.
new text end

Sec. 5.

new text begin [136F.705] UNDERGRADUATE TUITION GUARANTEE PLAN.
new text end

new text begin (a) The board of trustees is encouraged to offer entering students a plan providing
stable tuition for students pursuing two-year or four-year degrees that can provide students
a tuition option designed to meet the goals in this section.
new text end

new text begin (b) A Minnesota resident student who first enrolls in a degree program at a state
college or university beginning in the fall of 2011 or later is guaranteed a stable tuition
for up to four consecutive academic years.
new text end

new text begin (c) For an undergraduate student enrolled in a baccalaureate degree program at a
state university, the tuition charged to the student for each semester of enrollment during
a four-year period, beginning with the first semester of enrollment, must not exceed the
amount of tuition that the student was charged for the first semester of enrollment. For a
student who continues to be enrolled after four consecutive academic years, the tuition
rate for each semester in excess of four years is equal to the tuition rate paid by new
enrollees at the state university.
new text end

new text begin (d) For an undergraduate student enrolled in an associate degree program at a college,
the tuition charged to the student for each semester of enrollment during a two-year period,
beginning with the first semester of enrollment, must not exceed the amount of tuition that
the student was charged for the first semester of enrollment. For a student who continues
to be enrolled after two consecutive academic years, the tuition rate for each semester in
excess of two years is equal to the tuition rate for new enrollees at the college.
new text end

new text begin (e) Time limits for the stable tuition plan under this section do not apply to a student
in the military while the student is on active military duty.
new text end

Sec. 6.

Minnesota Statutes 2010, section 136G.01, is amended to read:

136G.01 PLAN ESTABLISHED.

A college savings plan known as the Minnesota college savings plan is established.
In establishing this plan, the legislature seeks to encourage individuals to save for
postsecondary education by:

(1) providing a qualified tuition plan under federal tax law; new text begin and
new text end

deleted text begin (2) providing matching grants for contributions to the program by low- and
middle-income families; and
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end encouraging individuals, foundations, and businesses to provide additional
grants to participating students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 7.

Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:

Subdivision 1.

General.

For purposes of sections 136G.01 to , the
following terms have the meanings given.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 8.

Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:

Subd. 18.

Matching grant.

"Matching grant" means an amount added to a matching
grant account under section 136G.11 new text begin for eligible account beneficiaries for account
contributions in calendar years 2001 to 2010 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 9.

Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:

Subd. 27.

Plan.

"Plan" refers to the plan established under sections 136G.01 to
.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 10.

Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:

Subdivision 1.

Responsibilities.

(a) The director shall establish the rules, terms,
and conditions for the plan, subject to the requirements of sections 136G.01 to .

(b) The director shall prescribe the application forms, procedures, and other
requirements that apply to the plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 11.

Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:

Subd. 6.

Three-year period for withdrawal of grants.

A matching grant deposited
in deleted text begin the deleted text end new text begin a matching grant new text end account new text begin based on account owner contributions during calendar
years 2001 to 2010 new text end under section 136G.11 may not be withdrawn within three years of the
establishment of the account of the beneficiary. In calculating the three-year period, the
period held in another account is included, if the account includes a rollover from another
account under section 529(c)(3)(C) of the Internal Revenue Code.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 12.

Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:

Subd. 8.

Administration.

The director shall administer the program, including
accepting and processing applications, maintaining account records, making payments,
deleted text begin making matching grants under section 136G.11, deleted text end and undertaking any other necessary
tasks to administer the program. The office may contract with one or more third parties to
carry out some or all of these administrative duties, including providing incentives and
marketing the program. The office and the board may jointly contract with third-party
providers, if the office and board determine that it is desirable to contract with the same
entity or entities for administration and investment management.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 13.

new text begin [137.105] UNDERGRADUATE TUITION GUARANTEE PLAN.
new text end

new text begin The Board of Regents is encouraged to offer students a guaranteed tuition plan
that can provide students a tuition option designed to meet the goals in this section.
A Minnesota resident student who first enrolls in a degree program at the University
of Minnesota beginning in the fall of 2011 or later may be offered guaranteed stable
tuition for up to four consecutive academic years. Under the guaranteed plan, for an
undergraduate student enrolled in a baccalaureate degree program, the tuition charged to
the student for each semester of enrollment during a four-year period, beginning with the
first semester of enrollment, must not exceed the amount of tuition that the student was
charged for the first semester of enrollment. For a student who continues to be enrolled
after four consecutive academic years, the tuition rate for each semester in excess of four
years is equal to the tuition rate paid by new enrollees at the University of Minnesota.
Time limits for the stable tuition plan under this section do not apply to a student in the
military while the student is on active military duty.
new text end

Sec. 14.

new text begin [145.4221] STATE FUNDS; PROHIBITED USE FOR HUMAN
CLONING.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibited use of state funds. new text end

new text begin No state funds or federal funds the
state receives for state programs may be used to either support human cloning or to pay for
any expenses incidental to human cloning. For purposes of this section, "cloning" means
generating a genetically identical copy of an organism at any stage of development by
combining an enucleated egg and the nucleus of a somatic cell to make an embryo.
new text end

new text begin Subd. 2. new text end

new text begin Scientific research. new text end

new text begin Nothing in this section shall affect areas of scientific
research not specifically addressed by this section, including research in the use of
nuclear transfer or other cloning techniques to produce molecules, DNA, cells other than
human embryos, tissues, organs, plants, or animals other than humans. In addition, not
withstanding section 145.422, nothing in this section shall affect the scientific field of stem
cell research, unless explicitly prohibited.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 15. new text begin STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.
new text end

new text begin The Minnesota Office of Higher Education must study graduate education in the
for-profit institutions that offer graduate education to Minnesota students. The study
must examine the rights and responsibilities of graduate students attending for-profit
institutions. At a minimum, the study must include an analysis of contractual arrangements
with graduate students, fulfillment of these contracts by all parties, protection of graduate
students' intellectual property rights, communication of well-defined expectations
for completion of graduation requirements, provision of adequate notice of changing
expectations for completion of graduate degrees, and ease of access by the graduate
student to information on the policies and procedures of the institution. The study must
evaluate the extent to which these institutions provide clear guidelines for graduate studies
on due process, academic freedom of inquiry, and recourse for graduate students if a
potential conflict of interest situation, including access to alternative dispute resolution
systems, and provide examples of effective guidelines and policies. The office must report
on the findings of this study by January 15, 2013, to the committees of the legislature with
jurisdiction over higher education finance. The report must include recommendations for
any changes to improve graduate education in the for-profit sector.
new text end

Sec. 16. new text begin CREDIT TRANSFER WITHIN MINNESOTA STATE COLLEGES
AND UNIVERSITIES.
new text end

new text begin By February 15, 2012, the Board of Trustees of the Minnesota State Colleges and
Universities must adopt a policy requiring every college and university of the Minnesota
State Colleges and Universities to grant credit for a course that is taken for credit at any of
the colleges or universities in the system. The policy must require the credit to transfer
to the receiving institution at the same number of credits granted at the transferring
institution. The policy must also address the transfer of credits awarded to students in
the Anoka STEP and other 2+2 programs offered in conjunction with colleges in the
Minnesota State Colleges and Universities (MnSCU) to all colleges within MnSCU.
The policy adopted under this section may allow credits to transfer as an equal number
of elective credits.
new text end

Sec. 17. new text begin REPORT ON TRANSFORMING HIGHER EDUCATION.
new text end

new text begin new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall
do a comprehensive evaluation of the structure of the Minnesota State Colleges and
Universities and report to the legislature with recommendations for improvements to
increase the efficiency and effectiveness of delivering postsecondary education through
public two-year colleges and state universities. The study must evaluate the organization
of the Minnesota State Colleges and Universities system, and must consider and evaluate
the following organizational alternatives:
new text end

new text begin (1) the alignment of the two-year and four-year institutions into separate
administrative systems;
new text end

new text begin (2) establishment of regional education districts;
new text end

new text begin (3) formation of multi-campus institutions;
new text end

new text begin (4) district or subdistrict accreditation of institutions;
new text end

new text begin (5) regional delivery of shared services and programs; and
new text end

new text begin (6) elimination of duplicate services and programs.
new text end

new text begin The study must identify potential structural and operational efficiencies and must
recommend methods to refocus administration at the campus level and reduce or
eliminate duplicative administration through central services. The costs and benefits
of each alternative in the study must be evaluated and reported with the study findings
and recommendations by January 30, 2012, to the committees of the legislature with
responsibility for higher education finance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 135A.26; and 181.986, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9,
and 10, new text end new text begin are repealed effective July 2, 2012.
new text end

new text begin (c) new text end new text begin Laws 2009, chapter 95, article 2, section 39, new text end new text begin is repealed effective July 1, 2011.
new text end