1.1                          A bill for an act 
  1.2             relating to higher education; increasing funding for 
  1.3             medical education; modifying certain endowments; 
  1.4             amending Minnesota Statutes 2000, sections 62J.694, 
  1.5             subdivision 2, by adding a subdivision; 144.395, 
  1.6             subdivisions 1, 2; repealing Minnesota Statutes 2000, 
  1.7             section 16A.87.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 62J.694, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
  1.12  fair market value of the fund is appropriated for medical 
  1.13  education activities in the state of Minnesota.  The 
  1.14  appropriations are to be transferred quarterly for the purposes 
  1.15  identified in the following paragraphs.  
  1.16     (b) For fiscal year 2000, 70 percent of the appropriation 
  1.17  in paragraph (a) is for transfer to the board of regents for the 
  1.18  instructional costs of health professional programs at the 
  1.19  academic health center and affiliated teaching institutions, and 
  1.20  30 percent of the appropriation is for transfer to the 
  1.21  commissioner of health to be distributed for medical education 
  1.22  under section 62J.692.  
  1.23     (c) For fiscal year 2001, 49 percent of the appropriation 
  1.24  in paragraph (a) is for transfer to the board of regents for the 
  1.25  instructional costs of health professional programs at the 
  1.26  academic health center and affiliated teaching institutions, and 
  2.1   51 percent is for transfer to the commissioner of health to be 
  2.2   distributed for medical education under section 62J.692. 
  2.3      (d) For fiscal year 2002, and each year thereafter, 42 
  2.4   appropriations in paragraph (a) are distributed as follows:  
  2.5      (1) 55 percent of the appropriation in paragraph (a) may be 
  2.6   appropriated by another law is for transfer to the board of 
  2.7   regents of the University of Minnesota for the instructional 
  2.8   costs of health professional programs at publicly funded the 
  2.9   academic health centers center and affiliated teaching 
  2.10  institutions,; 
  2.11     (2) nine percent is appropriated to the board of regents of 
  2.12  the University of Minnesota for interdisciplinary academic 
  2.13  initiatives and health professional education; and 58 
  2.14     (3) 36 percent is for transfer to the commissioner of 
  2.15  health to be distributed for medical education under section 
  2.16  62J.692. 
  2.17     (e) For fiscal year 2003, and each year thereafter, 
  2.18  appropriations in paragraph (a) are distributed as follows: 
  2.19     (1) 51 percent is for transfer to the board of regents of 
  2.20  the University of Minnesota for the instructional costs of 
  2.21  health professional programs at the academic health center and 
  2.22  affiliated teaching institutions; 
  2.23     (2) 14 percent is appropriated to the board of regents of 
  2.24  the University of Minnesota to continue to rebuild the medical 
  2.25  school faculty and to increase medical education through 
  2.26  satellite programs in nursing and medical technology at the 
  2.27  university center in Rochester, Minnesota; and 
  2.28     (3) 35 percent is for transfer to the commissioner of 
  2.29  health to be distributed for medical education under section 
  2.30  62J.692. 
  2.31     (f) A maximum of $150,000 of each annual appropriation to 
  2.32  the commissioner of health in paragraph (d) may be used by the 
  2.33  commissioner for administrative expenses associated with 
  2.34  implementing section 62J.692. 
  2.35     Sec. 2.  Minnesota Statutes 2000, section 62J.694, is 
  2.36  amended by adding a subdivision to read: 
  3.1      Subd. 2a.  [OUTCOMES.] (a) The academic health center of 
  3.2   the University of Minnesota must work in partnership with the 
  3.3   commissioner of health and other stakeholders to: 
  3.4      (1) develop a plan to meet Minnesota's evolving health 
  3.5   workforce needs through the redesign of training processes; 
  3.6      (2) reduce the demands on the health care system through 
  3.7   research on prevention and quality improvements; and 
  3.8      (3) establish outcomes, annual benchmarks, and reporting 
  3.9   requirements to implement the plan.  
  3.10     (b) The plan under paragraph (a) must: 
  3.11     (1) recognize the need for significant changes to meet 
  3.12  future health care needs in addition to increasing the capacity 
  3.13  to train health professionals; 
  3.14     (2) include recruitment strategies for all schools to 
  3.15  increase enrollment among racial and ethnic minority populations 
  3.16  to increase the diversity of the state's health professional 
  3.17  workforce; 
  3.18     (3) address improvements in academic and clinical 
  3.19  programming to improve the instruction of students in health 
  3.20  fields in the skills necessary to care for and to promote the 
  3.21  health of individuals from diverse ethnic, cultural, and racial 
  3.22  backgrounds; 
  3.23     (4) include an increase in the number of community health 
  3.24  training and practice sites; and 
  3.25     (5) provide for the joint establishment, by the academic 
  3.26  health center and the commissioner, of an integrated health 
  3.27  status database and a health occupations database to guide 
  3.28  future policy development and resource allocations. 
  3.29     Sec. 3.  Minnesota Statutes 2000, section 144.395, 
  3.30  subdivision 1, is amended to read: 
  3.31     Subdivision 1.  [CREATION.] The tobacco use prevention and 
  3.32  local public health endowment fund is created in the state 
  3.33  treasury.  The state board of investment shall invest the fund 
  3.34  under section 11A.24.  All earnings of the fund must be credited 
  3.35  to the fund.  The principal of the fund must be maintained 
  3.36  inviolate, except for transfers in law and that the principal 
  4.1   may be used to make expenditures from the fund for the purposes 
  4.2   specified in this section when the market value of the fund 
  4.3   falls below 105 percent of the cumulative total of the tobacco 
  4.4   settlement payments received by the state and credited to the 
  4.5   tobacco settlement fund under section 16A.87, subdivision 2.  
  4.6   For purposes of this section, "principal" means an amount equal 
  4.7   to the cumulative total of the tobacco settlement payments 
  4.8   received by the state and credited to the tobacco settlement 
  4.9   fund under section 16A.87, subdivision 2.  
  4.10     Sec. 4.  Minnesota Statutes 2000, section 144.395, 
  4.11  subdivision 2, is amended to read: 
  4.12     Subd. 2.  [EXPENDITURES.] (a) Up to five percent of the 
  4.13  fair market value of the fund on the preceding July 1, must be 
  4.14  spent to reduce the human and economic consequences of tobacco 
  4.15  use among the youth of this state through state and local 
  4.16  tobacco prevention measures and efforts, and for other public 
  4.17  health initiatives. 
  4.18     (b) Notwithstanding paragraph (a), on January 1, 2000, up 
  4.19  to five percent of the fair market value of the fund is 
  4.20  appropriated to the commissioner of health to distribute as 
  4.21  grants under section 144.396, subdivisions 5 and 6, in 
  4.22  accordance with allocations in paragraph (c), clauses (1) and 
  4.23  (2).  Up to $200,000 of this appropriation is available to the 
  4.24  commissioner to conduct the statewide assessments described in 
  4.25  section 144.396, subdivision 3. 
  4.26     (c) Beginning On July 1, 2000, and on July 1 of each year 
  4.27  thereafter, the money in paragraph (a) is appropriated as 
  4.28  follows, except as provided in paragraphs (d) and (e):  
  4.29     (1) 67 percent to the commissioner of health to distribute 
  4.30  as grants under section 144.396, subdivision 5, to fund 
  4.31  statewide tobacco use prevention initiatives aimed at youth; 
  4.32     (2) 16.5 percent to the commissioner of health to 
  4.33  distribute as grants under section 144.396, subdivision 6, to 
  4.34  fund local public health initiatives aimed at tobacco use 
  4.35  prevention in coordination with other local health-related 
  4.36  efforts to achieve measurable improvements in health among 
  5.1   youth; and 
  5.2      (3) 16.5 percent to the commissioner of health to 
  5.3   distribute in accordance with section 144.396, subdivision 7.  
  5.4      (d) A maximum of $150,000 of each annual appropriation to 
  5.5   the commissioner of health in paragraphs (b) and (c) may be used 
  5.6   by the commissioner for administrative expenses associated with 
  5.7   implementing this section. 
  5.8      (e) Beginning July 1, 2001, $1,100,000 of each annual 
  5.9   appropriation to the commissioner under paragraph (c), clause 
  5.10  (1), may be used to provide base level funding for the 
  5.11  commissioner's tobacco prevention and control programs and 
  5.12  activities.  This appropriation must occur before any other 
  5.13  appropriation under this subdivision. 
  5.14     (f) Notwithstanding paragraph (a), on July 1, 2001, 
  5.15  $10,461,000 of the fund in subdivision 1 is appropriated as 
  5.16  follows, except as provided in paragraphs (d) and (e): 
  5.17     (1) 34 percent to the commissioner of health to distribute 
  5.18  as grants under section 144.396, subdivision 5, to fund 
  5.19  statewide tobacco use prevention initiatives aimed at youth; 
  5.20     (2) 33 percent to the commissioner of health to distribute 
  5.21  as grants under section 144.396, subdivision 6, to fund local 
  5.22  public health initiatives aimed at tobacco use prevention in 
  5.23  coordination with other local health-related efforts to achieve 
  5.24  measurable improvements in health among youth; and 
  5.25     (3) 33 percent to the commissioner of health to distribute 
  5.26  in accordance with section 144.396, subdivision 7. 
  5.27     (g) Notwithstanding paragraph (a), on July 1, 2002, 
  5.28  $15,561,000 is appropriated as follows, except as provided in 
  5.29  paragraphs (d) and (e): 
  5.30     (1) 40 percent to the commissioner of health to distribute 
  5.31  as grants under section 144.396, subdivision 5, to fund 
  5.32  statewide tobacco use prevention initiatives aimed at youth; 
  5.33     (2) 30 percent to the commissioner of health to distribute 
  5.34  as grants under section 144.396, subdivision 6, to fund local 
  5.35  public health initiatives aimed at tobacco use prevention in 
  5.36  coordination with other local health-related efforts to achieve 
  6.1   measurable improvements in health among youth; and 
  6.2      (3) 30 percent to the commissioner of health to distribute 
  6.3   in accordance with section 144.396, subdivision 7.  
  6.4      (h) On July 1, 2003, and each year thereafter, following 
  6.5   the transfer of any money under section 5, the money in 
  6.6   paragraph (a) is appropriated as follows, except as provided in 
  6.7   paragraphs (d) and (e): 
  6.8      (1) 40 percent to the commissioner of health to distribute 
  6.9   as grants under section 144.396, subdivision 5, to fund 
  6.10  statewide tobacco use prevention initiatives aimed at youth; 
  6.11     (2) 30 percent to the commissioner of health to distribute 
  6.12  as grants under section 144.396, subdivision 6, to fund local 
  6.13  public health initiatives aimed at tobacco use prevention in 
  6.14  coordination with other local health-related efforts to achieve 
  6.15  measurable improvements in health among youth; and 
  6.16     (3) 30 percent to the commissioner of health to distribute 
  6.17  in accordance with section 144.396, subdivision 7.  
  6.18     Sec. 5.  [TRANSFER.] 
  6.19     $212,000,000 is transferred on July 1, 2001, and 
  6.20  $38,000,000 is transferred on July 1, 2002, from the tobacco use 
  6.21  prevention and local public health endowment fund under 
  6.22  Minnesota Statutes, section 144.395 to the medical education 
  6.23  endowment fund under Minnesota Statutes, section 62J.694. 
  6.24     Sec. 6.  [REPEALER.] 
  6.25     Minnesota Statutes 2000, section 16A.87, is repealed. 
  6.26     Sec. 7.  [EFFECTIVE DATE.] 
  6.27     Sections 1 to 6 are effective the day following final 
  6.28  enactment.