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HF 869

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:42am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to higher education; amending higher education provisions; establishing
and modifying certain grants and programs; making technical changes; regulating
certain activities and practices; establishing and amending certain scholarships;
providing a tuition guarantee; regulating board member and trustee nominations
and elections; requiring a certificate of need; defining terms; requiring a report;
appropriating money; amending Minnesota Statutes 2008, sections 135A.08,
subdivision 1; 135A.25, subdivision 4; 136A.06; 136A.08, subdivision 1, by
adding a subdivision; 136A.101, subdivision 4; 136A.121, subdivisions 5, 6, 9;
136A.1701, subdivision 10; 136F.02, subdivision 1; 136F.04; 136F.045; 136F.46,
subdivision 3; 137.0246, subdivision 2; 137.025, subdivision 1; 299A.45,
subdivision 4; 340A.404, subdivision 4a; proposing coding for new law in
Minnesota Statutes, chapters 135A; 136A; 136F; 137; repealing Minnesota
Statutes 2008, sections 136A.127; 136F.03; 137.0245.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text beginSUMMARY 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 section summarize
direct appropriations, by fund, made in this article.
new text end

new text begin 2010
new text end
new text begin 2011
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 1,388,543,000
new text end
new text begin $
new text end
new text begin 1,383,285,000
new text end
new text begin $
new text end
new text begin 2,771,828,000
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 Federal Stabilization
new text end
new text begin 180,920,000
new text end
new text begin 180,920,000
new text end
new text begin 361,840,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,571,620,000
new text end
new text begin $
new text end
new text begin 1,566,362,000
new text end
new text begin $
new text end
new text begin 3,137,982,000
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 2010
new text end
new text begin 2011
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 195,358,000
new text end
new text begin $
new text end
new text begin 190,049,000
new text end
new text begin $
new text end
new text begin 385,407,000
new text end
new text begin Board of Trustees of the
Minnesota State Colleges and
Universities
new text end
new text begin 665,883,000
new text end
new text begin 665,883,000
new text end
new text begin 1,331,766,000
new text end
new text begin Board of Regents of the
University of Minnesota
new text end
new text begin 709,079,000
new text end
new text begin 709,079,000
new text end
new text begin 1,418,158,000
new text end
new text begin Mayo Medical Foundation
new text end
new text begin 1,300,000
new text end
new text begin 1,351,000
new text end
new text begin 2,651,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,571,620,000
new text end
new text begin $
new text end
new text begin 1,566,362,000
new text end
new text begin $
new text end
new text begin 3,137,982,000
new text end

Sec. 2. new text beginHIGHER 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 "2010" and "2011" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2010, or
June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
year 2011. "The biennium" is fiscal years 2010 and 2011.
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 2010
new text end
new text begin 2011
new text end

Sec. 3. new text beginMINNESOTA 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 195,358,000
new text end
new text begin $
new text end
new text begin 190,049,000
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 149,721,000
new text end
new text begin 144,618,000
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 The legislature intends that the Office of
Higher Education make full grant awards in
each year of the biennium.
new text end

new text begin For the biennium, the tuition maximum for
students in four-year programs is $9,938 in
each year.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $6,900
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 dependent children under age 23
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 Interstate Tuition Reciprocity
new text end

new text begin 2,750,000
new text end
new text begin 2,750,000
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. 5. new text end

new text begin State Work Study
new text end

new text begin 15,500,000
new text end
new text begin 15,500,000
new text end

new text begin Subd. 6. new text end

new text begin Child Care Grants
new text end

new text begin 6,675,000
new text end
new text begin 6,675,000
new text end

new text begin Subd. 7. new text end

new text begin Indian Scholarships
new text end

new text begin 2,375,000
new text end
new text begin 2,375,000
new text end

new text begin The director of the Minnesota Office of
Higher Education must contract with at least
one knowledgeable person residing in or
near the city of Bemidji to assist students
with the scholarships under Minnesota
Statutes, section 136A.126, and with other
information about financial aid for which
the students may be eligible. Bemidji State
University must provide office space at
no cost to the Minnesota Office of Higher
Education for purposes of administering the
American Indian scholarship program under
Minnesota Statutes, section 136A.126.
new text end

new text begin Subd. 8. new text end

new text begin Minitex
new text end

new text begin 5,631,000
new text end
new text begin 5,631,000
new text end

new text begin Subd. 9. new text end

new text begin MnLINK Gateway
new text end

new text begin 400,000
new text end
new text begin 400,000
new text end

new text begin Subd. 10. new text end

new text begin Learning Network of Minnesota
new text end

new text begin 4,800,000
new text end
new text begin 4,800,000
new text end

new text begin Subd. 11. new text end

new text begin Minnesota College Savings Plan
new text end

new text begin 700,000
new text end
new text begin 700,000
new text end

new text begin Subd. 12. 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. 13. new text end

new text begin Other Small Programs
new text end

new text begin 853,000
new text end
new text begin 853,000
new text end

new text begin This appropriation includes funding for
student and parent information, information
for college attendance, and minority
education programs.
new text end

new text begin Subd. 14. new text end

new text begin TEACH Program
new text end

new text begin 300,000
new text end
new text begin 300,000
new text end

new text begin For the teacher education and compensation
helps (TEACH) and the Minnesota early
childhood teacher retention programs in
Minnesota Statutes, section 136A.126. This
is a onetime appropriation.
new text end

new text begin Subd. 15. new text end

new text begin Power of You
new text end

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin For transfer to MnSCU for the existing
Power of You program and for pilot sites
under article 2, section 30.
new text end

new text begin Subd. 16. new text end

new text begin Technical and Community College
Emergency Grants
new text end

new text begin 100,000
new text end
new text begin 100,000
new text end

new text begin For transfer to the financial aid offices
at each of the colleges of the Minnesota
State Colleges and Universities to provide
emergency aid grants to technical and
community college students who are
experiencing extraordinary economic
circumstances that may result in the students
dropping out of school without completing
the term or their program.
new text end

new text begin Subd. 17. new text end

new text begin Veterinary Loan Forgiveness
new text end

new text begin 225,000
new text end

new text begin For the large animal loan forgiveness
program under Minnesota Statutes, section
136A.1795. This appropriation is available
until expended.
new text end

new text begin Subd. 18. new text end

new text begin Agency Administration
new text end

new text begin 2,685,000
new text end
new text begin 2,685,000
new text end

new text begin Subd. 19. 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. 20. 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 subdivisions 2 to 7
and 11 to the state grant appropriation, the
safety officer survivors appropriation, the
interstate tuition reciprocity appropriation,
the Minnesota college savings plan
appropriation, the child care appropriation,
and the state work study appropriation.
new text end

new text begin Subd. 21. new text end

new text begin United Family Medicine Residency
Program
new text end

new text begin 448,000
new text end
new text begin 467,000
new text end

new text begin For a grant to the united family medicine
residency program. This appropriation
must be used to support up to 18 resident
physicians each year in family practice at
united family medicine residency programs
and must prepare doctors to practice family
care medicine in underserved rural and
urban areas of the state. At least seven
of the resident physicians must be at a
publicly owned rural hospital that has an
attached nursing home. The legislature
intends for this program to improve health
care in underserved 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 Subd. 22. new text end

new text begin TANF Work-Study
new text end

new text begin Notwithstanding any rule to the contrary,
work-study jobs funded by a TANF
appropriation do not require employer
matching funds.
new text end

new text begin Subd. 23. new text end

new text begin Reporting
new text end

new text begin By November 1 and February 15, the
Minnesota Office of Higher Education
must provide updated state grant spending
projections, taking into account the most
current and projected enrollment and tuition
and fee information, economic conditions,
and other relevant factors. Before submitting
state grant spending projections, the office
must meet and consult with representatives of
public and private postsecondary education,
the Department of Finance, the governor's
office, legislative staff, and financial aid
administrators.
new text end

new text begin Subd. 24. new text end

new text begin Accreditation
new text end

new text begin The office must work with small institutions
to identify cost-effective methods to achieve
accreditation necessary to be an eligible
institution for state and federal financial aid.
new text end

Sec. 4. new text beginBOARD 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 665,883,000
new text end
new text begin $
new text end
new text begin 665,883,000
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 47,328,000
new text end
new text begin 47,328,000
new text end

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

new text begin For fiscal years 2012 and 2013 the base for
the Central Office and Shared Services Unit
is $44,823,000 each year.
new text end

new text begin Subd. 3. new text end

new text begin Operations and Maintenance
new text end

new text begin 553,366,000
new text end
new text begin 553,366,000
new text end

new text begin (a) It is the intention of the legislature to
increase the amount of funding distributed
to colleges and universities through the
allocation model to provide direct support of
instruction and related functions necessary
to protect the core mission of educating
students.
new text end

new text begin (b) Allocations to campuses from
appropriations under this section must
not be reduced below the allocations for
the biennium ending June 30, 2009, after
deducting any amount unallotted in the
biennium.
new text end

new text begin (c) The Board of Trustees shall submit
expenditure reduction plans by March 15,
2010, to the committees of the legislature
with responsibility for higher education
finance to achieve the 2012-2013 base
established in this section at the central
office and at each institution. The plan
submitted by the board must be based on
plans developed at each institution detailing
reductions to achieve lower base allocations
at that institution. Each plan must focus on
protecting direct instruction while reducing
peripheral programs and services that may
benefit students and institutions but are
not necessary to the education of students
seeking certificates, diplomas, and degrees.
new text end

new text begin (d) During the biennium ending June 30,
2011, except for positions that are essential to
the daily operation of an institution, the board
must not fill administrative and managerial
vacancies, existing on the effective date of
this section, in the central office or at any
of the campuses of the Minnesota State
Colleges and Universities or use a search firm
for any hiring. The board must not authorize
any increase in salaries for administrative and
managerial positions in the Minnesota State
Colleges and Universities in the biennium
ending June 30, 2011. The board must not
charge any of the institutions for reductions
under this section to the central office.
new text end

new text begin (e) For the biennium ending June 30, 2011,
the board must not reserve or expend
appropriations under this subdivision for
competitive salaries, awards of excellence,
campus and technology initiatives outside the
allocation model, or other board or chancellor
initiatives. All amounts saved under this
paragraph must be added to the allocation
model and distributed to the institutions.
new text end

new text begin (f) For the biennium ending June 30,
2011, expenditures under this subdivision
must not exceed $40,000,000 for
technology initiatives, including technology
infrastructure improvements, and $5,000,000
for initiatives to recruit and retain
traditionally underrepresented students. All
amounts saved under this paragraph must be
added to the allocation model and distributed
to the institutions.
new text end

new text begin (g) $40,000 each year is for the Cook
County Higher Education Board to provide
educational programs and academic support
services.
new text end

new text begin (h) $1,000,000 each year is for the Northeast
Minnesota Higher Education District and
high schools in its area. Students from area
high schools may also access the facilities
and faculty of the Northeast Minnesota
Higher Education District for state-of-the-art
technical education opportunities, including
MnSCU's 2+2 Pathways initiative.
new text end

new text begin (i) $225,000 each year is to enhance eFolio
Minnesota and for a center to provide on-site
and Internet-based support and technical
assistance to users of the state's eFolio
Minnesota system to promote workforce and
economic development and to enable access
to workforce information generated through
the eFolio Minnesota system.
new text end

new text begin (j) For fiscal years 2012 and 2013 the base for
operations and maintenance is $609,631,000
each year.
new text end

new text begin Subd. 4. new text end

new text begin Federal Stimulus Appropriation
new text end

new text begin 65,189,000
new text end
new text begin 65,189,000
new text end

new text begin (a) This appropriation is from the fiscal
stabilization account in the federal fund and
may be used for modernization, renovation,
or repair of facilities that are primarily used
for instruction, research, or student housing
but may not be used for maintenance of
systems, equipment, or facilities. Amounts
in this subdivision must not be allocated
to modernization, renovation, or repair of
stadiums or other facilities primarily used
for athletic contests or exhibitions or other
events for which admission is charged to the
general public and must not be allocated to
any facility used for sectarian instruction or
religious worship or in which a substantial
portion of the functions of the facilities are
subsumed in a religious mission. No amount
from this appropriation may be allocated to
increase endowment funds.
new text end

new text begin (b) Appropriations under this subdivision
must be used as a bridge for budget
reductions in the biennium ending June 30,
2013, and may be used to retain faculty
and staff jobs, to provide severance and for
early retirement incentives, and to mitigate
the rising costs of attendance through
minimizing tuition increases and the support
of student employment opportunities.
new text end

new text begin (c) The legislature intends that the
tuition increase for a Minnesota resident
undergraduate student in the Minnesota State
Colleges and Universities, must not exceed
five percent per year for the biennium ending
June 30, 2011. Federal stimulus money
under this subdivision must be used to buy
down the tuition increase to no more than
two percent per year for these students.
new text end

new text begin (d) An additional $3,469,000 is appropriated
in fiscal year 2009 from the fiscal stabilization
account in the federal fund.
new text end

new text begin Subd. 5. new text end

new text begin System Improvements
new text end

new text begin To increase efficiencies and equity for
faculty and staff, the Board of Trustees is
encouraged to place a priority on identifying
and implementing measures to improve
the human resources system used by the
Minnesota State Colleges and Universities.
One of the goals of improving the human
resources system is to provide seamless
information on faculty and employees to
facilitate transfers between institutions.
new text end

Sec. 5. new text beginBOARD 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 709,079,000
new text end
new text begin $
new text end
new text begin 709,079,000
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 517,623,000
new text end
new text begin 517,623,000
new text end

new text begin (a) In the biennium ending June 30, 2011, the
board must not use appropriations under this
section to create or fund new administrative
positions at the University of Minnesota or to
increase salaries for administrative positions.
new text end

new text begin (b) Appropriations under this subdivision
may be used for a new scholarship under
Minnesota Statutes, section 137.0225, to
complement the University's Founders
scholarship.
new text end

new text begin (c) This appropriation includes amounts for
an Ojibwe Indian language program on the
Duluth campus.
new text end

new text begin (d) This appropriation includes money for the
Dakota language teacher training immersion
program on the Twin Cities campus to
prepare teachers to teach in Dakota language
immersion programs.
new text end

new text begin (e) This appropriation includes $600,000
each year for the Veterinary Diagnostic
Laboratory.
new text end

new text begin (f) For fiscal years 2012 and 2013, the
base for operations and maintenance is
$598,124,000 each year.
new text end

new text begin Subd. 3. new text end

new text begin Health Care Access Fund
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 and is for primary care education
initiatives.
new text end

new text begin Subd. 4. new text end

new text begin Special Appropriation
new text end

new text begin 73,468,000
new text end
new text begin 73,468,000
new text end
new text begin (a) Agriculture and Extension Service
new text end
new text begin 52,255,000
new text end
new text begin 52,255,000
new text end

new text begin (1) This appropriation is for agricultural
research and extension activities as provided
in this paragraph.
new text end

new text begin (2) The Agricultural Experiment Stations
and Minnesota Extension Service must
convene agricultural advisory groups to
focus research, education, and extension
activities on producer needs and implement
an outreach strategy that more effectively
and rapidly transfers research results and best
practices to producers throughout the state.
new text end

new text begin (3) This appropriation includes funding
for research efforts that demonstrate a
renewed emphasis on the needs of the state's
production agriculture community. The
following areas should be prioritized and
carried out in consultation with Minnesota
producer organizations:
new text end

new text begin (i) vegetable crop research;
new text end

new text begin (ii) fertilizer and soil fertility research and
development;
new text end

new text begin (iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;
new text end

new text begin (iv) discovering and developing plant
varieties that use nutrients more efficiently;
new text end

new text begin (v) breeding and development of turf seed
and other biomass resources in all three
Minnesota biomes;
new text end

new text begin (vi) development of new disease-resistant
and pest-resistant varieties of turf and
agronomic crops;
new text end

new text begin (vii) utilizing plant and livestock cells to treat
and cure human diseases;
new text end

new text begin (viii) the development of dairy coproducts;
new text end

new text begin (ix) a rapid agricultural response fund for
current or emerging animal, plant, and insect
problems affecting production or food safety;
new text end

new text begin (x) crop pest and animal disease research;
new text end

new text begin (xi) developing animal agriculture that is
capable of sustainably feeding the world;
new text end

new text begin (xii) consumer food safety education and
outreach; and
new text end

new text begin (xiii) programs to meet the research and
outreach needs of sustainable and organic
livestock and crop farmers.
new text end

new text begin (4) This appropriation includes funding for
research and outreach on the production of
renewable energy from Minnesota biomass
resources. The following areas should be
prioritized and carried out in consultation
with Minnesota producer and bioenergy
organizations:
new text end

new text begin (i) biofuel and other energy production from
perennial crops, small grains, row crops,
and forestry products in conjunction with
the Natural Resources Research Institute
(NRRI);
new text end

new text begin (ii) alternative bioenergy crops and cropping
systems; and
new text end

new text begin (iii) biofuel coproducts used for livestock
feed.
new text end

new text begin (5) This appropriation includes funding
for analysis of livestock facility siting and
regulatory models from other states and
countries and the following aspects of
ethanol production in Minnesota:
new text end

new text begin (i) water use trends as compared to other
industries and activities;
new text end

new text begin (ii) the carbon balance of ethanol production;
new text end

new text begin (iii) the effect of ethanol blending
requirements on transportation fuel prices;
and
new text end

new text begin (iv) the economic impacts of ethanol
production and use including such measures
as employment, economic output, and state
and local tax revenues.
new text end

new text begin (6) This appropriation may be used to
establish and maintain a statewide organic
research and education initiative, secure
a facility and retain current faculty levels
for poultry research currently conducted at
UMore Park, develop and implement a dairy
producer continuing education program
and for scoping a new dairy research and
teaching facility.
new text end

new text begin (7) By February 1, 2011, the Board of
Regents must submit a report to the
legislative committees with responsibility
for agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this section.
new text end

new text begin (b) Health Sciences
new text end
new text begin 5,275,000
new text end
new text begin 5,275,000
new text end

new text begin $346,000 each year is to support up to 12
resident physicians each year 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 for
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) Institute of Technology
new text end
new text begin 1,387,000
new text end
new text begin 1,387,000
new text end

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

new text begin (d) System Specials
new text end
new text begin 6,551,000
new text end
new text begin 6,551,000
new text end

new text begin For general research, student loans matching
money, 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. All parties to
the partnership and chairs of the senate
and house of representatives committees
responsible for higher education finance
must be consulted before the Board of
Regents reduces the amount allocated to the
partnership under this paragraph during the
biennium ending June 30, 2011. 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. 5. new text end

new text begin Federal Stimulus Appropriation
new text end

new text begin 115,731,000
new text end
new text begin 115,731,000
new text end

new text begin (a) This appropriation is from the fiscal
stabilization account in the federal fund and
may be used for modernization, renovation,
or repair of facilities that are primarily used
for instruction, research, or student housing
but may not be used for maintenance of
systems, equipment, or facilities. Amounts
in this subdivision must not be allocated
to modernization, renovation, or repair of
stadiums or other facilities primarily used
for athletic contests or exhibitions or other
events for which admission is charged to the
general public and must not be allocated to
any facility used for sectarian instruction or
religious worship or in which a substantial
portion of the functions of the facilities are
subsumed in a religious mission. No amount
from this appropriation may be allocated to
increase endowment funds.
new text end

new text begin (b) Appropriations under this subdivision
must be used as a bridge for budget
reductions in the biennium ending June 30,
2013, and may be used to retain faculty and
staff jobs, to provide severance and for early
retirement incentives and to mitigate rising
costs of attendance through minimizing
tuition increases and support of student
employment opportunities.
new text end

new text begin (c) The legislature intends that the net
tuition increase for a Minnesota resident
undergraduate student at the University of
Minnesota must not exceed $300 per year
for the biennium ending June 30, 2011.
Appropriations of federal stimulus money
under this subdivision must be used to
accomplish this goal.
new text end

new text begin (d) $400,000 of this appropriation in fiscal
year 2010 is for a grant to the Minnesota
Wildlife Rehabilitation Center for their
uncompensated expenses. This is a onetime
appropriation.
new text end

new text begin (e) An additional $27,080,000 is appropriated
in fiscal year 2009 from the stabilization
account in the federal fund.
new text end

new text begin Subd. 6. 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 $22,250,000 each year.
new text end

new text begin Subd. 7. new text end

new text begin NRRI Research
new text end

new text begin Notwithstanding Minnesota Statutes, section
137.022, subdivision 4, the board may
use up to $150,000 of the income credited
to the permanent university fund from
royalties from mining under state mineral
leases to fund research at the Coleraine
Minerals Research Laboratory of the Natural
Resources Research Institute by taconite
engineers who have been laid off by the
mining industry.
new text end

new text begin Subd. 8. new text end

new text begin Enrollment Increases
new text end

new text begin Over the biennium ending June 30, 2011,
the Board of Regents must increase
the enrollment of Minnesota resident
freshmen with the goal of reaching at
least the proportion of Minnesota resident
undergraduates enrolled in the University of
Minnesota in the 2006-2007 academic year.
new text end

Sec. 6. new text beginMAYO CLINIC
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 1,300,000
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 640,000
new text end
new text begin 665,000
new text end

new text begin The state 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 Minnesota 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 660,000
new text end
new text begin 686,000
new text end

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

ARTICLE 2

RELATED HIGHER EDUCATION

Section 1.

Minnesota Statutes 2008, section 135A.08, subdivision 1, is amended to
read:


Subdivision 1.

Course equivalency.

The new text beginBoard of new text endRegents of the University of
Minnesota and the new text beginBoard of new text endTrustees of the Minnesota State Colleges and Universities
shall develop and maintain course equivalency guides for use between institutions that
have a high frequency of transfer. new text beginThe course equivalency guides must include information
on the course equivalency and awarding of credit for learning acquired as a result of
the successful completion of formal military courses and occupational training.
new text endCourse
equivalency guides deleted text beginshalldeleted text endnew text begin arenew text end not deleted text beginbedeleted text end required for vocational technical programs that have
not been divided into identifiable courses. The governing boards of private institutions
that grant associate and baccalaureate degrees and that have a high frequency of transfer
students are requested to participate in developing these guides.

Sec. 2.

Minnesota Statutes 2008, section 135A.25, subdivision 4, is amended to read:


Subd. 4.

Minnesota Office of Higher Education responsibilities.

deleted text begin(a)deleted text end For private
postsecondary institutions, the Minnesota Office of Higher Education must develop
educational materials considering the recommendations by the Minnesota Office of Higher
Education and others and at least annually convene and sponsor meetings and workshops
and provide educational strategies for faculty, students, administrators, institutions, and
bookstores to inform all interested parties on strategies for reducing the costs of course
materials for students attending postsecondary institutions.

deleted text begin (b) The Minnesota Office of Higher Education must identify methods to compile and
distribute information on publishers that sell or distribute course material for classroom use
in postsecondary institutions in a manner that meets the requirements and complies with
subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make
this information available for use by students and faculty in postsecondary institutions.
deleted text end

Sec. 3.

new text begin [135A.26] AMERICAN MADE CLOTHING IN COLLEGE
BOOKSTORES.
new text end

new text begin A bookstore located on the campus of a public college or university in Minnesota
must only offer for sale clothing or articles of apparel that are manufactured in the United
States of America.
new text end

Sec. 4.

Minnesota Statutes 2008, section 136A.06, is amended to read:


136A.06 FEDERAL FUNDS.

The Minnesota Office of Higher Education is designated the state agency to apply
for, receive, accept, and disburse to both public and private institutions of higher education
all federal funds which are allocated to the state of Minnesota to support higher education
programs, construction, or other activities and which require administration by a state
higher education agency under the Higher Education Facilities Act of 1963, and any
amendments thereof, the Higher Education Act of 1965, and any amendments thereof, and
any other law which provides funds for higher education and requires administration by a
state higher education agency as enacted or may be enacted by the Congress of the United
States; provided that no commitment shall be made that shall bind the legislature to make
appropriations beyond current allocations of funds. The office may apply for, receive,
accept, and disburse all administrative funds available to the office for administering
federal funds to support higher education programs, construction, or other activities. The
office also may apply for, receive, accept, and disburse any research, planning, or program
funds which are available for purposes consistent with the provisions of this chapter. In
making application for and administering federal funds the office may comply with any
and all requirements of federal law and federal rules and regulations to enable it to receive
and accept such funds. The expenditure of any such funds received shall be governed by
the laws of the state, except insofar as federal regulations may otherwise provide. The
office may contract with both public and private institutions in administering federal
funds, and such contracts shall not be subject to the provisions of chapter 16C. All such
money received by the office shall be deposited in the state treasury andnew text begin, subject to section
3.3005,
new text end are hereby appropriated to it annually for the purpose for which such funds are
received. None of such moneys shall cancel but shall be available until expended.

Sec. 5.

Minnesota Statutes 2008, section 136A.08, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

new text begin(a) new text endFor the purposes of this section, the new text beginfollowing new text endtermsnew text begin
have the meanings given them.
new text end

new text begin (b)new text end "Province" and "provincial" mean the Canadian province of Manitoba.

new text begin (c) new text end new text begin "Resident of this state" means a resident student as defined in section 136A.101,
subdivision 8.
new text end

Sec. 6.

Minnesota Statutes 2008, section 136A.08, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Appeal; resident status. new text end

new text begin A student who does not meet the definition of
resident after residing in Minnesota for 12 months may appeal to the director by providing
documentation on the student's reasons for residing in Minnesota. The director may
grant resident status to the student upon determining the documentation establishes that
postsecondary education was not the student's principle reason for residing in Minnesota.
new text end

Sec. 7.

Minnesota Statutes 2008, section 136A.101, subdivision 4, is amended to read:


Subd. 4.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution located in this state or in a state with which the office has entered
into a higher education reciprocity agreement on state student aid programs that (1)new text begin
requires, as a condition of enrollment, that each entering Minnesota resident student must
complete the federal application for student aid (FAFSA), and
new text end is new text begineither (2) new text endoperated by
this state or the Board of Regents of the University of Minnesota, or deleted text begin(2)deleted text end new text begin(3) new text endis operated
privately and, as determined by the office, meets all of the following: (i) maintains
academic standards substantially equivalent to those of comparable institutions operated
in this state; (ii) is licensed or registered as a postsecondary institution by the office or
another state agency; and (iii) by July 1, 2011, is participating in the federal Pell Grant
program under Title IV of the Higher Education Act of 1965, as amended.

Sec. 8.

Minnesota Statutes 2008, section 136A.121, subdivision 5, is amended to read:


Subd. 5.

Grant stipends.

The grant stipend shall be based on a sharing of
responsibility for covering the recognized cost of attendance by the applicant, the
applicant's family, and the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
deducting the following:

(1) the assigned student responsibility of at least deleted text begin46deleted text end new text begin45 new text endpercent of the cost of
attending the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $100 per academic year.

Sec. 9.

Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:


Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of
allowances specified in law for living and miscellaneous expenses, and an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or the tuition and fee maximums deleted text beginestablished in lawdeleted text end.new text begin The tuition and fee maximum for a
student enrolled in a two-year program is the maximum tuition and fee amount charged at
a two-year college within the Minnesota State Colleges and Universities. The tuition and
fee maximum for a student enrolled in a four-year program shall be set in law.
new text end

(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. 10.

Minnesota Statutes 2008, section 136A.121, subdivision 9, is amended to read:


Subd. 9.

Awards.

An undergraduate student who meets the office's requirements
is eligible to apply for and receive a grant in any year of undergraduate study unless the
student has obtained a baccalaureate degree or previously has been enrolled full time or
the equivalent for deleted text begineightdeleted text end new text beginten new text endsemesters or the equivalent, excluding courses taken from a
Minnesota school or postsecondary institution which is not participating in the state grant
program and from which a student transferred no credit. A student who withdraws from
enrollment for active military service is entitled to an additional semester or the equivalent
of grant eligibility. A student enrolled in a two-year program at a four-year institution is
only eligible for the tuition and fee maximums established by law for two-year institutions.

Sec. 11.

Minnesota Statutes 2008, section 136A.1701, subdivision 10, is amended to
read:


Subd. 10.

Prohibition on use of state money.

new text beginExcept as provided in section
136A.1787, paragraph (a),
new text endno money originating from state sources in the state treasury
shall be made available for student loans under this section and all student loans shall be
made from money originating from nonstate sources.

Sec. 12.

new text begin [136A.1787] SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE
OF NEED.
new text end

new text begin (a) In order to ensure the payment of the principal of and interest on bonds and
notes of the office and the continued maintenance of the loan capital fund under section
136A.1785, the office shall annually determine and certify to the governor, on or before
December 1, the amount, if any:
new text end

new text begin (1) needed to restore the loan capital fund to the minimum amount required by a
resolution or indenture relating to any bonds or notes of the office, not exceeding the
maximum amount of principal and interest to become due and payable in any subsequent
year on all bonds or notes which are then outstanding;
new text end

new text begin (2) determined by the office to be needed in the immediately ensuing fiscal year, with
other funds pledged and estimated to be received during that year, for the payment of the
principal and interest due and payable in that year on all outstanding bonds and notes; and
new text end

new text begin (3) needed to restore any debt service fund securing any outstanding bonds or
notes of the office to the amount required in a resolution or indenture relating to such
outstanding bonds or notes.
new text end

new text begin (b) The governor shall include and submit the amounts certified by the office in
accordance with this section to the legislature in the budget for the following fiscal year, or
in a supplemental budget if the regular budget for that year has previously been approved.
new text end

Sec. 13.

new text begin [136A.1795] LARGE ANIMAL VETERINARIAN LOAN
FORGIVENESS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Veterinarian" means an individual who has been awarded a doctor of veterinary
medicine degree from the College of Veterinary Medicine, University of Minnesota.
new text end

new text begin (c) "Designated rural area" means an area in Minnesota outside the counties of
Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of
Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
new text end

new text begin (d) "Emergency circumstances" means those conditions that make it impossible for
the participant to fulfill the service commitment, including death, total and permanent
disability, or temporary disability lasting more than two years.
new text end

new text begin (e) "Qualified educational loan" means a government, commercial, or foundation
loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
expenses related to the education of a veterinarian.
new text end

new text begin Subd. 2. new text end

new text begin Establishment; administration. new text end

new text begin (a) The director of the Minnesota Office
of Higher Education shall establish and administer a loan forgiveness program for large
animal veterinarians who:
new text end

new text begin (1) agree to practice in designated rural areas that are considered underserved; and
new text end

new text begin (2) work full time in a practice that is at least 50 percent involved with the care of
food animals.
new text end

new text begin (b) Appropriations made to the program do not cancel and are available until
expended.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible to participate in the loan forgiveness program,
an individual must:
new text end

new text begin (1) be a veterinarian who has been awarded a veterinary medicine degree within
three years of submitting an application under this section, or be enrolled in the
veterinarian degree program and making satisfactory progress in the College of Veterinary
Medicine, University of Minnesota; and
new text end

new text begin (2) submit an application to the director of the Minnesota Office of Higher Education
in the form and manner prescribed by the director.
new text end

new text begin (b) An applicant selected to participate must sign a contract agreeing to complete a
five-year service obligation to practice as required under subdivision 2, paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Loan forgiveness. new text end

new text begin (a) The director of the Minnesota Office of Higher
Education may select a maximum of five applicants each year for participation in the loan
forgiveness program, within the limits of available funding. Applicants are responsible for
securing their own qualified educational loans.
new text end

new text begin (b) The director must select participants based on their suitability for practice serving
the designated rural area, as indicated by experience or training. The director must give
preference to applicants closest to completing their training.
new text end

new text begin (c) The director must make annual disbursements directly to the participant of
$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
for each year that a participant meets the service obligation required under subdivision 3,
paragraph (b), up to a maximum of five years.
new text end

new text begin (d) Before receiving loan repayment disbursements and as requested, the participant
must complete and return to the director an affidavit of practice form provided by the
director verifying that the participant is practicing as required under subdivision 2,
paragraph (a). The participant must provide the director with verification that the full
amount of loan repayment disbursement received by the participant has been applied
toward the designated loans. After each disbursement, verification must be received by
the director and approved before the next loan repayment disbursement is made.
new text end

new text begin (e) Participants who move their practice remain eligible for loan repayment as long
as they practice as required under subdivision 2, paragraph (a).
new text end

new text begin Subd. 5. new text end

new text begin Penalty for nonfulfillment. new text end

new text begin If a participant does not fulfill the required
minimum commitment of service required under subdivision 3, paragraph (b), the director
of the Minnesota Office of Higher Education must collect from the participant the total
amount paid to the participant under the loan forgiveness program plus interest at a rate
established according to section 270C.40. The director must deposit the money collected
in the state general fund. The director must allow waivers of all or part of the money owed
the director as a result of a nonfulfillment penalty if emergency circumstances prevented
fulfillment of the service obligation.
new text end

new text begin Subd. 6. new text end

new text begin Rules. new text end

new text begin The director may adopt rules to implement this section.
new text end

Sec. 14.

Minnesota Statutes 2008, section 136F.02, subdivision 1, is amended to read:


Subdivision 1.

Membership.

The board consists of 15 members deleted text beginappointed by the
governor
deleted text endnew text begin elected by the legislature in a joint conventionnew text end, including three members who are
students who have attended an institution for at least one year and are currently enrolled at
least half time in a degree, diploma, or certificate program in an institution governed by
the board. The student members shall include one member from a community college, one
member from a state university, and one member from a technical college. deleted text beginOne member
representing labor must be appointed after considering the recommendations made under
section 136F.045. The governor is not bound by the recommendations. Appointments to
the board are with the advice and consent of the senate.
deleted text end At least one member of the board
must be a resident of each congressional district. All other members must be deleted text beginappointeddeleted text endnew text begin
elected
new text end to represent the state at large. deleted text beginIn selecting appointees, the governor must consider
the needs of the board of trustees and the balance of the board membership with respect to
labor and business representation and racial, gender, geographic, and ethnic composition.
deleted text end

Sec. 15.

Minnesota Statutes 2008, section 136F.04, is amended to read:


136F.04 STUDENT BOARD MEMBER SELECTION.

Subdivision 1.

Responsibility.

deleted text beginNotwithstanding section 136F.03,deleted text end The State
University Student Association and the State College Student Association shall each have
the responsibility for recruiting, screening, and recommending qualified candidates new text beginto the
joint committee
new text endfor their student members of the board.

Subd. 2.

Criteria.

deleted text beginAfter consulting with the Board of Trustees Candidate Advisory
Council,
deleted text end The student associations shall jointly develop a statement of the selection criteria
to be applied to potential candidates.

Subd. 3.

Recruiting and screening.

Each student association shall develop
processes for identifying and recruiting qualified candidates and for screening those
candidates.

Subd. 4.

Recommendations.

Each student association shall recommend at least
two and not more than four candidates for its student member. By deleted text beginApril 15deleted text endnew text begin February 15
new text end of the new text begineven-numbered new text endyear in which its members' term expires, each student association
shall submit its recommendations to the deleted text begingovernordeleted text endnew text begin joint committeenew text end. deleted text beginThe governor is not
bound by these recommendations.
deleted text end

Sec. 16.

Minnesota Statutes 2008, section 136F.045, is amended to read:


136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION
PROCESS.

The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to be
recommended to the deleted text begingovernor for appointmentdeleted text endnew text begin joint committee for electionnew text end to the board.
The organization must develop a process for selecting candidates, and a statement of
selection criteria for board membership that is consistent with the requirements under
section 136F.02, subdivision 1. The organization must recommend at least two and no
more than four candidates to the deleted text begingovernordeleted text end new text beginjoint committee new text endbeginning in 2010 and every
six years thereafter. Recommendations must be made by deleted text beginApril 15deleted text endnew text begin February 15new text end of the
new text begin even-numbered new text endyear in which the deleted text begingovernor makes appointmentsdeleted text endnew text begin joint committee makes
recommendations for candidates to be elected
new text end to the board. deleted text beginThe governor is not bound
by the recommendations.
deleted text end

Sec. 17.

new text begin [136F.047] TRUSTEE NOMINATION AND ELECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Joint legislative committee. new text end

new text begin The joint legislative committee consists
of the members of the higher education budget and policy divisions in each body of the
legislature. The chairs of the divisions from each body shall be cochairs of the joint
legislative committee. A majority of the members from each body is a quorum of the
joint committee.
new text end

new text begin Subd. 2. new text end

new text begin Meeting. new text end

new text begin By March 15 of each odd-numbered year, or at a date agreed
to by concurrent resolution, the joint legislative committee shall meet to consider
recommendations for trustee of the Minnesota State Colleges and Universities for
possible presentation to a joint convention of the legislature. The joint committee
must meet as many times as necessary for the purpose of interviewing candidates,
recommending candidates for the joint committee to consider, and voting for candidates
for recommendation to the joint convention.
new text end

new text begin Subd. 3. new text end

new text begin Recommendations new text end

new text begin The joint committee may recommend to the joint
convention candidates nominated by the joint committee. If a vacancy exists for a
student board member or a member recommended under this section, the joint committee
must consider the recommendations made by the responsible organizations to the joint
committee for those vacancies. Candidates for any vacancy may be nominated for
consideration by the joint committee only if the nomination receives the support of at least
three house of representatives members of the committee and two senate members of the
committee. A candidate must receive a majority vote of members from the house of
representatives on the joint committee and from the senate on the joint committee to be
recommended to the joint convention. The joint committee may recommend no more than
two candidates for each vacancy. In recommending candidates to the joint convention, the
joint committee must consider the needs of the board of trustees and the balance of the
board membership with respect to gender, racial, and ethnic composition.
new text end

Sec. 18.

Minnesota Statutes 2008, section 136F.46, subdivision 3, is amended to read:


Subd. 3.

Solicitation.

Efforts to secure payroll deductions authorized in subdivision
1 may not interfere with, require a modification of, nor be conducted during the period of
a payroll deduction fund drive for employees authorized by section deleted text begin309.501deleted text endnew text begin 43A.50new text end.

Sec. 19.

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

new text begin (a) A Minnesota resident student who first enrolls in a degree program at a state
college or university beginning in the fall of 2010 or later is guaranteed a stable tuition
for up to four consecutive academic years.
new text end

new text begin (b) 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 (c) 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

Sec. 20.

new text begin [137.0225] UNIVERSITY SCHOLARSHIP.
new text end

new text begin The Board of Regents may establish a scholarship to help offset the impact of
rising tuition for Minnesota students from middle-income families. To be eligible for a
scholarship under this section, a student must be a Minnesota resident undergraduate
from a family that is not Pell eligible with an annual adjusted gross income not to exceed
$100,000.
new text end

Sec. 21.

Minnesota Statutes 2008, section 137.0246, subdivision 2, is amended to read:


Subd. 2.

Regent nomination joint committee.

(a) The joint legislative committee
consists of the members of the higher education budget and policy divisions in each house
of the legislature. The chairs of the divisions from each body shall be cochairs of the
joint legislative committee. A majority of the members from each house is a quorum of
the joint committee.

(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent
resolution, the joint legislative committee shall meet to consider deleted text beginthe advisory council'sdeleted text end
recommendations for regent of the University of Minnesota for possible presentation to a
joint convention of the legislature.

(c) The joint committee may recommend to the joint convention candidates
deleted text begin recommended by the advisory council and the other candidatesdeleted text end nominated by the joint
committee. A candidate deleted text beginother than those recommended by the advisory councildeleted text end may be
nominated for consideration by the joint committee only if the nomination receives the
support of at least three house of representatives members of the committee and two senate
members of the committee. A candidate must receive a majority vote of members from the
house of representatives and from the senate on the joint committee to be recommended to
the joint convention. The joint committee may recommend no more than deleted text beginone candidatedeleted text endnew text begin
two candidates
new text end for each vacancy. In recommending nominees, the joint committee must
consider the needs of the board of regents and the balance of the board membership with
respect to gender, racial, and ethnic composition.

deleted text begin (d) The joint committee must meet twice, approximately one week apart. The first
meeting is for the purpose of interviewing candidates and recommending candidates for
the joint committee to consider. The second meeting is for the purpose of voting for
candidates for recommendation to the joint convention.
deleted text end

Sec. 22.

Minnesota Statutes 2008, section 137.025, subdivision 1, is amended to read:


Subdivision 1.

Appropriations not for buildings.

deleted text beginThe commissioner of finance
shall pay no money to the University of Minnesota pursuant to a direct appropriation, other
than an appropriation for buildings, until the university first certifies to the commissioner
of finance that its aggregate balances in the temporary investment pool, cash, or separate
investments, resulting from all state maintenance and special appropriations do not
exceed $7,000,000, or any other amount specified in the act making the appropriation,
plus one-third of all tuition and fee payments from the previous fiscal year. Upon this
certification,
deleted text endnew text begin The commissioner of finance shall paynew text end 1/12 of the annual appropriation to
the university deleted text beginshall be paid at the beginningdeleted text endnew text begin on the 21st daynew text end of each month. deleted text beginAdditional
payments shall be made by the commissioner of finance whenever the state appropriations
and tuition aggregate balances in the temporary investment pool, cash, or separate
investments are reduced below the indicated levels.
deleted text endnew text begin If the 21st day of the month falls on
a Saturday or Sunday, the monthly payment shall be made on the Monday immediately
following the 21st.
new text end

Sec. 23.

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

new text begin A Minnesota resident student who first enrolls in a degree program at the University
of Minnesota beginning in the fall of 2010 or later is guaranteed a stable tuition for up to
four consecutive academic years. 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.
new text end

Sec. 24.

new text begin [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin In order to support and create environments surrounding
the campuses of the University of Minnesota in Minneapolis and Duluth that are
conducive to the purposes of higher education and vital communities, the Board of
Regents, the city of Minneapolis, and the city of Duluth are requested to create with
surrounding neighborhoods an appropriate organization in each city, to cooperate in the
development of those neighborhoods. The purpose of each organization is to improve
the university's Minneapolis and Duluth campus area neighborhoods including, without
limitation, the following:
new text end

new text begin (1) providing and supporting the development of good quality university
neighborhood housing, including housing for students, faculty, employees, alumni, and
others who may wish to live in the university area neighborhoods;
new text end

new text begin (2) encouraging and assisting university faculty, staff, students, and others to live in
the neighborhood as long-term residents;
new text end

new text begin (3) supporting and assisting appropriate business development in commercial areas
of the neighborhood; and
new text end

new text begin (4) cooperating and coordinating planning and development in all matters affecting
the neighborhood with local government, businesses, residents, and other stakeholders in
the neighborhood.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The organization created by the Board of Regents and
the city of Minneapolis shall include representatives from the organizations currently
represented on the University District Alliance Steering Committee. The Board of
Regents and the city of Duluth may establish the membership of an organization for the
purposes of subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The Board of Regents, the city of Minneapolis, and the city
of Duluth are requested to report by January 15, 2010, to the chairs of the legislative
committees with primary jurisdiction over higher education policy and finance on the
status and activities of the organization that is created.
new text end

Sec. 25.

Minnesota Statutes 2008, section 299A.45, subdivision 4, is amended to read:


Subd. 4.

Renewal.

Each award must be given for one academic year and is
renewable for a maximum of deleted text begineightdeleted text end new text beginten new text endsemesters or the equivalent. A student who
withdraws from enrollment for active military service is entitled to an additional semester
or the equivalent of grant eligibility. An award must not be given to a dependent child
who is 23 years of age or older on the first day of the academic year.

Sec. 26.

Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to
read:


Subd. 4a.

State-owned recreation; entertainment facilities.

Notwithstanding any
other law, local ordinance, or charter provision, the commissioner may issue on-sale
intoxicating liquor licenses:

(1) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Giants Ridge Recreation Area building or recreational improvement area
owned by the state in the deleted text begintown of Whitedeleted text endnew text begin city of Biwabiknew text end, St. Louis County;

(2) to the state agency administratively responsible for, or to an entity holding a
concession or facility management contract with such agency for beverage sales at, the
premises of any Ironworld Discovery Center building or facility owned by the state at
Chisholm; and

(3) to the Board of Regents of the University of Minnesota for events at Northrop
Auditorium, the intercollegiate football stadium, or at no more than seven other locations
within the boundaries of the University of Minnesota, provided that the Board of Regents
has approved an application for a license for the specified locationnew text begin and provided that
the application for a stadium or arena location allows for the legal sale of intoxicating
liquor throughout the stadium or arena and does not limit the sale of intoxicating liquor to
premium seating areas or suites
new text end.

The commissioner shall charge a fee for licenses issued under this subdivision in an
amount comparable to the fee for comparable licenses issued in surrounding cities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to applications for an on-sale liquor license made after December 1, 2008.
new text end

Sec. 27. new text beginREPORT; FEDERAL TEXTBOOK INFORMATION
REQUIREMENTS.
new text end

new text begin By January 15, 2010, the Minnesota Office of Higher Education must report
to the committees of the legislature responsible for higher education finance on the
implementation of textbook information requirements under United States Code, title 20,
section 1015b, effective July 1, 2010. In preparing the report, the office must work with
representatives of textbook publishers, the Student Advisory Council, Minnesota State
Colleges and Universities, the University of Minnesota, and the Private College Council.
At a minimum, the report must include a template that publishers may use to provide
the required information in a consistent format to all Minnesota campuses, and make
recommendations of methods to disseminate pricing information to support students and
faculty in making well informed decisions about course materials.
new text end

Sec. 28. new text beginMINNESOTA STATE COLLEGE - SOUTHEAST TECHNICAL;
AVIATION TRAINING CENTER.
new text end

new text begin Notwithstanding Minnesota Statutes, section 136F.60, subdivision 5, the net
proceeds of the sale or disposition of the Aviation Training Center in Winona operated by
Minnesota State College - Southeast Technical, after paying all expenses incurred in selling
the property and retiring any remaining debt attributable to the project, are appropriated to
the Board of Trustees of the Minnesota State Colleges and Universities for use in a capital
project at the Winona campus and need not be paid to the commissioner of finance, as
would otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3.
new text end

new text begin When the sale is complete and the sale proceeds have been applied as provided in
this section, Minnesota Statutes, section 16A.695, no longer applies to the property and
the property is no longer state bond financed property.
new text end

Sec. 29. new text beginMINNESOTA STATE COLLEGES AND UNIVERSITIES DEGREE
REQUIREMENTS.
new text end

new text begin Until July 2, 2012, an associate of applied science degree offered by a college in
the Minnesota State Colleges and Universities system is exempt from the 60-semester
credit length limit for an associate degree specified in the Minnesota State Colleges and
Universities Board Policy number 3.36, part 3, subpart C. The chancellor may consider
criteria for waiving the credit length limits under this board policy for emerging or
innovative programs. By January 2, 2012, the Minnesota State College Faculty and the
Minnesota State College Student Association must present a joint report to the house of
representatives and senate committees with jurisdiction over higher education policy on a
process for reviewing the credit requirements for an associate of applied science degree.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to associate of applied science degrees whether first offered before, on, or
after that date.
new text end

Sec. 30. new text beginPOWER OF YOU PILOT PROGRAMS.
new text end

new text begin Subdivision 1. new text end

new text begin Power of you pilot programs. new text end

new text begin The Board of Trustees of the
Minnesota State Colleges and Universities shall establish power of you pilot programs in
suburban and rural sites. The pilots shall comply with Minnesota Statutes, section 136F.19.
new text end

new text begin Subd. 2. new text end

new text begin Suburban pilot selection. new text end

new text begin By July 1, 2009, the board of trustees shall
select one technical college and one community college or community-technical college
in the Minneapolis-St. Paul suburban area to develop a new power of you pilot program
in conjunction with Metropolitan State University. Each college in the pilot program
must work with a high school partner selected by the board in the Minneapolis-St. Paul
suburban area.
new text end

new text begin Subd. 3. new text end

new text begin Rural pilot selection. new text end

new text begin By July 1, 2009, the Board of Trustees shall select
two rural colleges to participate in the power of you pilot programs. One of the pilot
programs must be a multicampus college in an agricultural part of the state and the other a
multicampus college in a nonagricultural part of the state dependent on natural resources.
Each college in the pilot program must work with a high school partner selected by the
board.
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. 31. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2008, sections 136A.127; 136F.03; and 137.0245, new text end new text begin are repealed.
new text end

Sec. 32. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 5 are effective the day following final enactment.
new text end