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SF 427

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; amending 
  1.8             Minnesota Statutes 1996, section 136A.121, 
  1.9             subdivisions 5 and 9a; Laws 1996, chapters 395, 
  1.10            section 4; and 463, section 2, subdivision 6. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.13     The sums in the columns marked "APPROPRIATIONS" are 
  1.14  appropriated from the general fund, or other named fund, to the 
  1.15  agencies and for the purposes specified in this article.  The 
  1.16  listing of an amount under the figure "1998" or "1999" in this 
  1.17  article indicates that the amount is appropriated to be 
  1.18  available for the fiscal year ending June 30, 1998, or June 30, 
  1.19  1999, respectively.  "The first year" is fiscal year 1998.  "The 
  1.20  second year" is fiscal year 1999.  "The biennium" is fiscal 
  1.21  years 1998 and 1999. 
  1.22                          SUMMARY BY FUND
  1.23                            1998          1999           TOTAL
  1.24  General            $1,130,041,000 $1,148,913,000 $2,278,954,000
  1.25                   SUMMARY BY AGENCY - ALL FUNDS
  1.26                            1998          1999           TOTAL
  1.27  Higher Education Services Office
  1.28                        126,111,000    122,151,000    248,262,000
  2.1   Board of Trustees of the Minnesota
  2.2   State Colleges and Universities
  2.3                         485,710,000    502,520,000    988,230,000
  2.4   Board of Regents of the University of Minnesota
  2.5                         517,395,000    523,417,000  1,040,812,000
  2.6   Mayo Medical Foundation
  2.7                             825,000        825,000      1,650,000
  2.8                                              APPROPRIATIONS 
  2.9                                          Available for the Year 
  2.10                                             Ending June 30 
  2.11                                            1998         1999 
  2.12  Sec. 2.  HIGHER EDUCATION
  2.13  SERVICES OFFICE
  2.14  Subdivision 1.  Total
  2.15  Appropriation                     $  126,111,000 $  122,151,000
  2.16  The amounts that may be spent from this 
  2.17  appropriation for each purpose are 
  2.18  specified in the following subdivisions.
  2.19  Subd. 2.  State Grants
  2.20       91,946,000        99,946,000
  2.21  If the appropriation in this 
  2.22  subdivision for either year is 
  2.23  insufficient, the appropriation for the 
  2.24  other year is available for it.  
  2.25  For the biennium, the private 
  2.26  institution tuition maximums for the 
  2.27  first and second year, respectively, 
  2.28  shall be $7,857 and $8,053 for 
  2.29  four-year institutions and $6,047 and 
  2.30  $6,199 for two-year institutions. 
  2.31  This appropriation contains money to 
  2.32  set the living and miscellaneous 
  2.33  expense allowance at $4,305 the first 
  2.34  year and $4,413 the second year. 
  2.35  This appropriation includes $300,000 
  2.36  the first year to develop the capacity 
  2.37  to implement the Minnesota savings 
  2.38  allowance, and $3,000,000 the second 
  2.39  year for implementation.  The amount of 
  2.40  the savings allowance shall be $16,000 
  2.41  per household. 
  2.42  This appropriation includes $1,000,000 
  2.43  each year to make full state grant 
  2.44  awards to students during the fourth 
  2.45  quarter of attendance. 
  2.46  This appropriation includes $100,000 
  2.47  each year for grants to nursing 
  2.48  programs to recruit and retain persons 
  2.49  of color in programs leading to 
  2.50  licensure as a registered nurse, and 
  2.51  $150,000 each year to provide grants to 
  2.52  nursing students who are persons of 
  2.53  color.  The grants to nursing programs 
  2.54  shall be matched by at least an equal 
  3.1   amount of money from grantee sources or 
  3.2   nonstate money. 
  3.3   Subd. 3.  Interstate Tuition
  3.4   Reciprocity
  3.5        4,000,000      4,000,000
  3.6   If the appropriation in this 
  3.7   subdivision for either year is 
  3.8   insufficient, the appropriation for the 
  3.9   other year is available to meet 
  3.10  reciprocity contract obligations. 
  3.11  Subd. 4.  State Work Study
  3.12       8,719,000      8,719,000
  3.13  This appropriation includes money to 
  3.14  support state work study wages of at 
  3.15  least the federal minimum wage. 
  3.16  Subd. 5.  Minitex Library Program
  3.17       2,608,000      2,608,000
  3.18  This appropriation includes money to 
  3.19  provide on-line access to science and 
  3.20  technology periodicals for students, 
  3.21  faculty, and staff of all four-year 
  3.22  post-secondary institutions and other 
  3.23  interested academic and state 
  3.24  government libraries in the state. 
  3.25  Subd. 6.  Learning Network of Minnesota
  3.26       4,424,000      4,426,000
  3.27  This appropriation includes $1,000,000 
  3.28  each year to the Minnesota education 
  3.29  telecommunications council for grants 
  3.30  to post-secondary regional networks to 
  3.31  pilot the integration of data, voice, 
  3.32  and video technologies with the 
  3.33  networks' existing interactive 
  3.34  television technology.  Before awarding 
  3.35  grants, the council shall prepare a 
  3.36  plan with criteria for evaluating grant 
  3.37  applications from regional networks and 
  3.38  submit the plan to the Minnesota office 
  3.39  of technology for review and approval. 
  3.40  Subd. 7.  Minnesota Library Information Network
  3.41      12,000,000         -0-   
  3.42  This appropriation is for 
  3.43  implementation of the Minnesota library 
  3.44  information network, which shall 
  3.45  include the development of (1) an 
  3.46  integrated library system that will 
  3.47  serve the libraries of the University 
  3.48  of Minnesota, the Minnesota state 
  3.49  colleges and universities system, and 
  3.50  state government, as well as interested 
  3.51  public, school, and private college 
  3.52  libraries; and (2) a common services 
  3.53  gateway creating links to the 
  3.54  integrated library system for 
  3.55  compatible school, public, and private 
  3.56  library information systems statewide. 
  4.1   This appropriation shall be released 
  4.2   after the review and approval by the 
  4.3   information policy office and the 
  4.4   Minnesota office of technology of the 
  4.5   final request for proposal, and the 
  4.6   establishment of a governing board to 
  4.7   operate the network and establish 
  4.8   policies and standards.  This 
  4.9   appropriation is available until 
  4.10  expended or until the network is 
  4.11  completed, whichever occurs first. 
  4.12  Subd. 8.  Agency Administration
  4.13       2,414,000      2,452,000
  4.14  This appropriation includes money for 
  4.15  the Minnesota minority education 
  4.16  partnership. 
  4.17  Money encumbered for youth works 
  4.18  postservice benefits shall not cancel 
  4.19  but is available until the participants 
  4.20  for whom the money was encumbered are 
  4.21  no longer eligible to draw benefits. 
  4.22  Subd. 9.  Balances Forward 
  4.23  An unencumbered balance in the first 
  4.24  year under a subdivision in this 
  4.25  section does not cancel but is 
  4.26  available for the second year. 
  4.27  Subd. 10.  Transfers 
  4.28  The higher education services office 
  4.29  may transfer unencumbered balances from 
  4.30  the appropriations in this section to 
  4.31  the state grant appropriation and the 
  4.32  interstate tuition reciprocity 
  4.33  appropriation. 
  4.34  Sec. 3.  BOARD OF TRUSTEES OF THE
  4.35  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  4.36  Subdivision 1.  Total
  4.37  Appropriation                       485,710,000    502,520,000
  4.38  The amounts that may be spent from this 
  4.39  appropriation for each purpose are 
  4.40  specified in the following subdivisions.
  4.41  Subd. 2.  Continuous Improvement Fund 
  4.42      12,000,000     19,000,000 
  4.43  This appropriation is to implement a 
  4.44  continuous improvement fund.  The board 
  4.45  shall distribute money from this 
  4.46  appropriation to colleges and 
  4.47  universities which submit performance 
  4.48  plans approved by the board.  To 
  4.49  receive money in the first year, 
  4.50  institutions must demonstrate progress 
  4.51  toward developing specific performance 
  4.52  measures that relate to institutional 
  4.53  and systemwide goals.  To receive money 
  4.54  in the second year, institutions must 
  4.55  be ready to implement institutional 
  4.56  performance measures and benchmarks 
  4.57  approved by the board.  The board shall 
  5.1   set aside $4,000,000 each year for 
  5.2   allocation to colleges and universities 
  5.3   that develop creative innovations in 
  5.4   instruction, student services, or 
  5.5   institutional management. 
  5.6   Subd. 3.  Management Information Systems 
  5.7        6,200,000        600,000 
  5.8   This appropriation includes $5,600,000 
  5.9   the first year to develop and implement 
  5.10  a common student information system and 
  5.11  central data management system, and to 
  5.12  upgrade the management information 
  5.13  systems network.  The student 
  5.14  information system shall be compatible 
  5.15  with the Virtual University.  Of the 
  5.16  $5,600,000, $3,000,000 is available on 
  5.17  July 1, 1997.  The remainder shall be 
  5.18  released upon completion of a detailed 
  5.19  project plan, models, and an initial 
  5.20  risk assessment with approval by the 
  5.21  department of finance and the 
  5.22  information policy office.  This 
  5.23  appropriation is nonrecurring and is 
  5.24  available until expended.  
  5.25  This appropriation includes $600,000 
  5.26  each year for the support of ongoing 
  5.27  operating costs of systemwide 
  5.28  management information systems.  
  5.29  Subd. 4.  Repair and Replacement 
  5.30       2,000,000      2,000,000 
  5.31  This appropriation is for nonroutine 
  5.32  maintenance and capital expenditures 
  5.33  required to extend the useful life of 
  5.34  state facilities and delay the need for 
  5.35  more costly future repairs.  
  5.36  Subd. 5.  Electronic Academy 
  5.37      10,000,000     14,500,000 
  5.38  This appropriation is for the purchase 
  5.39  of multimedia instructional technology, 
  5.40  computers, servers, and other 
  5.41  electronic equipment to support 
  5.42  instruction and student services; 
  5.43  planning and implementation of courses 
  5.44  and degree programs for delivery 
  5.45  through telecommunications; training 
  5.46  and development for faculty and staff; 
  5.47  and competitive grants to faculty to 
  5.48  develop innovative educational 
  5.49  applications of technology.  
  5.50  The board shall develop a systematic 
  5.51  plan for the delivery of on-line 
  5.52  academic courses and degree programs.  
  5.53  The plan shall be submitted to the 
  5.54  Minnesota office of technology for 
  5.55  review and approval to ensure 
  5.56  compatibility and coordination with the 
  5.57  Virtual University. 
  5.58  Subd. 6.  Virtual University 
  6.1          250,000        250,000 
  6.2   This appropriation is for grants, with 
  6.3   priority given to the University Center 
  6.4   at Rochester, to develop courses that 
  6.5   can be delivered through the Virtual 
  6.6   University.  Grant recipients shall 
  6.7   match this appropriation by an equal 
  6.8   amount of money from existing or 
  6.9   nonstate resources. 
  6.10  Subd. 7.  Minnesota Career and 
  6.11  Education Planning System 
  6.12         250,000        250,000 
  6.13  This appropriation is for development 
  6.14  and implementation of the Minnesota 
  6.15  career and education planning system in 
  6.16  partnership with the University of 
  6.17  Minnesota and the department of 
  6.18  children, families, and learning with 
  6.19  project oversight by the Minnesota 
  6.20  office of technology.  System 
  6.21  maintenance and operation costs must be 
  6.22  paid by participating agencies and 
  6.23  institutions. 
  6.24  Subd. 8.  Systemwide Strategic Initiative 
  6.25       5,100,000     10,700,000 
  6.26  This appropriation is for activities to 
  6.27  implement the six strategic goals 
  6.28  approved by the board.  The 
  6.29  commissioner of finance shall release 
  6.30  25 percent of the first year's 
  6.31  appropriation on July 1, 1997.  The 
  6.32  remaining 75 percent shall be released 
  6.33  when the board approves a detailed 
  6.34  implementation plan with measurable 
  6.35  outcomes for each of the goals.  This 
  6.36  appropriation is nonrecurring. 
  6.37  This appropriation is for the following 
  6.38  activities:  development, testing, and 
  6.39  implementation of assessment 
  6.40  instruments that measure student 
  6.41  learning at individual, programmatic, 
  6.42  and systemwide levels; the development 
  6.43  and implementation of an integrated 
  6.44  information system to collect and 
  6.45  report assessment data; the design, 
  6.46  development, testing, and 
  6.47  implementation of a systemwide transfer 
  6.48  program based upon academic credit and 
  6.49  demonstrated student competency; the 
  6.50  development and implementation of a 
  6.51  standardized process for identifying 
  6.52  the job skills and competencies 
  6.53  required by Minnesota business and 
  6.54  industry and for assessing employers' 
  6.55  satisfaction with the preparedness of 
  6.56  graduates for the workforce; the 
  6.57  development of analytic tools and data 
  6.58  to enhance program review and alignment 
  6.59  throughout the system to ensure that 
  6.60  all programs meet student and employer 
  6.61  demand and quality expectations, avoid 
  6.62  unnecessary duplication, are optimally 
  6.63  located, and take advantage of distance 
  7.1   learning wherever possible; curriculum 
  7.2   review and revision across all teacher 
  7.3   education programs, in collaboration 
  7.4   with the department of children, 
  7.5   families, and learning, to ensure that 
  7.6   all program graduates can demonstrate 
  7.7   the knowledge and skills required to 
  7.8   prepare students to meet the Minnesota 
  7.9   graduation standards. 
  7.10  Subd. 9.  Law Enforcement
  7.11         850,000        850,000 
  7.12  This appropriation includes $850,000 
  7.13  each year for law enforcement education.
  7.14  Subd. 10.  Debt Service
  7.15         204,019         99,127 
  7.16  This appropriation includes $204,019 
  7.17  the first year and $99,127 the second 
  7.18  year for debt service payments for 
  7.19  technical colleges. 
  7.20  Subd. 11.  State Council on
  7.21  Vocational Education 
  7.22          99,000         99,000 
  7.23  This appropriation includes $99,000 
  7.24  each year for the state council on 
  7.25  vocational education. 
  7.26  Sec. 4.  BOARD OF REGENTS OF THE 
  7.27  UNIVERSITY OF MINNESOTA 
  7.28  Subdivision 1.  Total
  7.29  Appropriation                        517,395,000    523,417,000
  7.30  The amounts that may be spent from this 
  7.31  appropriation for each purpose are 
  7.32  specified in the following subdivisions.
  7.33  Subd. 2.  Operations and
  7.34  Maintenance                          464,929,000    479,891,000
  7.35  (a) Faculty Recruitment and Retention Pool 
  7.36      15,000,000     25,000,000 
  7.37  This appropriation is for investments 
  7.38  in faculty compensation to retain and 
  7.39  recruit highly talented and productive 
  7.40  scholars.  $10,000,000 the first year 
  7.41  and $20,000,000 the second year is for 
  7.42  compensation and other costs associated 
  7.43  with hiring new faculty in areas of 
  7.44  strategic priority to the university 
  7.45  and the state.  $5,000,000 each year is 
  7.46  for compensation to reward and retain 
  7.47  current faculty in recognition of their 
  7.48  contributions to the excellence of the 
  7.49  university. 
  7.50  (b) Investments in Excellence 
  7.51      29,900,000     27,800,000 
  7.52  This appropriation is for new 
  8.1   investments in technology, facilities, 
  8.2   and programs, including communications 
  8.3   infrastructure, equipment, and 
  8.4   technology; administrative systems; and 
  8.5   preventive maintenance, improved 
  8.6   custodial standards, and space 
  8.7   management to decrease deferred renewal 
  8.8   and decommission poor quality 
  8.9   facilities.  Up to $5,000,000 of this 
  8.10  appropriation may be used for 
  8.11  merit-based compensation increases for 
  8.12  existing faculty. 
  8.13  The university is requested to match 
  8.14  this appropriation by at least an equal 
  8.15  amount of reallocations and increases 
  8.16  in existing and new sources of revenue. 
  8.17  (c) Merit Scholarships 
  8.18       1,300,000      5,200,000 
  8.19  This appropriation is for merit-based 
  8.20  student scholarships to enhance the 
  8.21  university's selectivity and thereby 
  8.22  its national ranking through the 
  8.23  recruitment of academically gifted 
  8.24  undergraduate and graduate students.  
  8.25  The appropriation in each year will be 
  8.26  released when matched by an equal 
  8.27  amount of new contributions to the 
  8.28  university foundation from private 
  8.29  sources.  
  8.30  (d) Virtual University 
  8.31         250,000        250,000 
  8.32  This appropriation is for grants, with 
  8.33  priority given to the University Center 
  8.34  at Rochester, to develop courses that 
  8.35  can be delivered through the Virtual 
  8.36  University.  Grant recipients shall 
  8.37  match this appropriation by an equal 
  8.38  amount of money from existing or 
  8.39  nonstate resources. 
  8.40  The university is requested to develop 
  8.41  a systematic plan for the delivery of 
  8.42  on-line academic courses and degree 
  8.43  programs to be submitted to the 
  8.44  Minnesota office of technology for 
  8.45  review and approval. 
  8.46  (e) Minnesota Career and 
  8.47  Education Planning System
  8.48         250,000        250,000 
  8.49  This appropriation is for development 
  8.50  and implementation of the Minnesota 
  8.51  career and education planning system in 
  8.52  partnership with the Minnesota state 
  8.53  colleges and universities and the 
  8.54  department of children, families, and 
  8.55  learning with project oversight by the 
  8.56  Minnesota office of technology.  This 
  8.57  appropriation is nonrecurring.  System 
  8.58  maintenance and operation costs shall 
  8.59  be paid by participating agencies and 
  8.60  institutions. 
  9.1   Subd. 3.  Special
  9.2   Appropriation                         52,466,000     43,526,000
  9.3   The amounts expended for each program 
  9.4   in the four categories of special 
  9.5   appropriations shall be separately 
  9.6   identified in the 2000 biennial budget 
  9.7   document. 
  9.8   (a) Agriculture and Extension Service 
  9.9       32,440,000     32,440,000
  9.10  This appropriation is for the 
  9.11  Agricultural Experiment Station and 
  9.12  Minnesota Extension Service. 
  9.13  Any salary increases granted by the 
  9.14  university to personnel paid from the 
  9.15  Minnesota Extension appropriation must 
  9.16  not result in a reduction of the county 
  9.17  portion of the salary payments. 
  9.18  During the biennium, the university 
  9.19  shall maintain an advisory council 
  9.20  system for each experiment station.  
  9.21  The advisory councils must be broadly 
  9.22  representative of range of size and 
  9.23  income distribution of farms and 
  9.24  agribusinesses and must not 
  9.25  disproportionately represent those from 
  9.26  the upper half of the size and income 
  9.27  distributions. 
  9.28  (b) Health Sciences 
  9.29      12,213,000      3,273,000
  9.30  This appropriation is for Indigent 
  9.31  Patients (County Papers), Rural 
  9.32  Physicians Associates Program, the 
  9.33  Veterinary Diagnostic Laboratory, 
  9.34  Health Sciences Research, and the 
  9.35  Biomedical Engineering Center. 
  9.36  This appropriation includes $5,940,000 
  9.37  the first year to redesign and 
  9.38  restructure curriculum and programs at 
  9.39  the academic health center, to develop 
  9.40  and purchase new information technology 
  9.41  to improve the delivery of health care 
  9.42  education programs, and to provide 
  9.43  transitional assistance as the academic 
  9.44  health center restructures in response 
  9.45  to declining revenue from patient care 
  9.46  sources.  This appropriation is 
  9.47  nonrecurring. 
  9.48  This appropriation includes $3,000,000 
  9.49  the first year for the academic health 
  9.50  center to match private contributions 
  9.51  to an operating endowment for the 
  9.52  biomedical engineering institute.  This 
  9.53  appropriation is not available unless 
  9.54  matched by private contributions of at 
  9.55  least $9,000,000.  This appropriation 
  9.56  is nonrecurring and is available until 
  9.57  June 30, 1999. 
  9.58  This appropriation includes $1,000,000 
  9.59  each year to the academic health center 
 10.1   for the governor's technology transfer 
 10.2   initiative.  This money is for a grant 
 10.3   to create a separate nonprofit 
 10.4   corporation to be called the Minnesota 
 10.5   technology development corporation.  
 10.6   The technology development corporation 
 10.7   shall guide the commercial development 
 10.8   and facilitate the licensing to 
 10.9   industry of technologies developed at 
 10.10  the academic health center, with a 
 10.11  preference toward Minnesota companies.  
 10.12  The academic health center is requested 
 10.13  to provide an equal amount of money 
 10.14  from existing resources to support 
 10.15  technology development.  The academic 
 10.16  health center provost is requested to 
 10.17  establish a research services 
 10.18  organization to facilitate the early 
 10.19  development of technology which may 
 10.20  have a commercial application and to 
 10.21  enhance the disclosure of intellectual 
 10.22  property by faculty of the academic 
 10.23  health center. 
 10.24  (c) Institute of Technology  
 10.25       1,430,000      1,430,000
 10.26  This appropriation is for the 
 10.27  Geological Survey, Talented Youth 
 10.28  Mathematics Program, Microelectronics, 
 10.29  and the Information Science Center. 
 10.30  (d) System Specials 
 10.31       6,383,000      6,383,000
 10.32  This appropriation is for General 
 10.33  Research, Student Loans Matching Money, 
 10.34  Industrial Relations Education, Natural 
 10.35  Resources Research Institute, Center 
 10.36  for Urban and Regional Affairs, Bell 
 10.37  Museum of Natural History, the 
 10.38  Leadership Academy Program, and the 
 10.39  Humphrey Exhibit.  
 10.40  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.41  Subdivision 1.  Total
 10.42  Appropriation                            825,000        825,000
 10.43  The amounts that may be spent from this 
 10.44  appropriation for each purpose are 
 10.45  specified in the following subdivisions.
 10.46  Subd. 2.  Medical School
 10.47         429,000        429,000
 10.48  The state of Minnesota shall pay a 
 10.49  capitation of $10,736 each year for 
 10.50  each student who is a resident of 
 10.51  Minnesota.  The appropriation may be 
 10.52  transferred between years of the 
 10.53  biennium to accommodate enrollment 
 10.54  fluctuations. 
 10.55  The legislature intends that during the 
 10.56  biennium the Mayo foundation use the 
 10.57  capitation money to increase the number 
 10.58  of doctors practicing in rural areas in 
 11.1   need of doctors.  
 11.2   Subd. 3.  Family Practice and
 11.3   Graduate Residency Program
 11.4          396,000        396,000
 11.5   The state of Minnesota provides a 
 11.6   capitation of $13,192 each year for 
 11.7   each resident physician. 
 11.8      Sec. 6.  Minnesota Statutes 1996, section 136A.121, 
 11.9   subdivision 5, is amended to read: 
 11.10     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 11.11  based on a sharing of responsibility for covering the recognized 
 11.12  cost of attendance by the applicant, the applicant's family, and 
 11.13  the government.  The amount of a financial stipend must not 
 11.14  exceed a grant applicant's recognized cost of attendance, as 
 11.15  defined in subdivision 6, after deducting the following:  
 11.16     (1) the assigned student responsibility of at least 50 
 11.17  percent of the cost of attending the institution of the 
 11.18  applicant's choosing; 
 11.19     (2) the assigned family responsibility, as determined by 
 11.20  the federal need analysis, which except that an allowance for 
 11.21  post-secondary education savings, in an amount specified in law, 
 11.22  shall be subtracted from the net worth calculation.  The 
 11.23  assigned family responsibility for (i) dependent students, is 
 11.24  the parental contribution as calculated by the federal need 
 11.25  analysis, and for (ii) independent students, is the student 
 11.26  contribution as determined by the federal need analysis; and 
 11.27     (3) the amount of a federal Pell grant award for which the 
 11.28  grant applicant is eligible.  
 11.29     The minimum financial stipend is $300 per academic year.  
 11.30     Sec. 7.  Minnesota Statutes 1996, section 136A.121, 
 11.31  subdivision 9a, is amended to read: 
 11.32     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 11.33  grants for four consecutive quarters or three consecutive 
 11.34  semesters during the course of a single fiscal year.  In 
 11.35  calculating a state grant for the fourth quarter or third 
 11.36  semester, the office must use the same calculation as it would 
 11.37  for any other term, except that the calculation must subtract 
 12.1   any Pell grant for which a student would be eligible even if the 
 12.2   student has exhausted the Pell grant for that fiscal year. 
 12.3      Sec. 8.  Laws 1996, chapter 395, section 4, is amended to 
 12.4   read: 
 12.5   Sec. 4.  BOARD OF REGENTS OF THE 
 12.6   UNIVERSITY OF MINNESOTA                  -0-          8,600,000
 12.7                                                         2,660,000
 12.8   The amounts that may be spent from this 
 12.9   appropriation for each purpose are as 
 12.10  follows: 
 12.11  (a) Academic Health Center 
 12.12  (1) Information Technology 
 12.13         -0-          2,000,000
 12.14  This appropriation is for a data and 
 12.15  video network and equipment to connect 
 12.16  academic health center faculty and 
 12.17  students on the St. Paul, Duluth, and 
 12.18  Minneapolis campuses and at 
 12.19  community-based sites. 
 12.20  (2) Restructuring
 12.21         -0-          6,600,000 660,000
 12.22  This appropriation is for the academic 
 12.23  health center for the development and 
 12.24  purchase of new information technology 
 12.25  to improve the delivery of health care 
 12.26  education programs and to redesign the 
 12.27  curriculum and underwrite the 
 12.28  development of new or expanded programs 
 12.29  in health care education.  Where 
 12.30  necessary, this money may also be used 
 12.31  to cover the costs of downsizing 
 12.32  programs and retraining faculty and 
 12.33  staff, but may not be used to finance 
 12.34  the integration of the University 
 12.35  hospital with Fairview Health Systems. 
 12.36  The legislature requests the faculty, 
 12.37  administration, and board of regents of 
 12.38  the University to pursue an internal 
 12.39  process leading to changes in the 
 12.40  tenure code applicable to the academic 
 12.41  health center, without infringing on 
 12.42  academic freedom. 
 12.43  The commissioner of finance shall place 
 12.44  this appropriation in a performance 
 12.45  incentive account. 
 12.46  The commissioner shall release 90 
 12.47  percent of this money to the board of 
 12.48  regents when the board of regents 
 12.49  certifies that changes have been made 
 12.50  in the personnel policies for clinical 
 12.51  faculty with regular appointments in 
 12.52  the academic health center which enable 
 12.53  the University to alter clinical 
 12.54  compensation and base salary, and 
 12.55  provide a streamlined due process 
 12.56  procedure for separation under the 
 12.57  provost of the academic health center, 
 13.1   without infringing on academic freedom. 
 13.2   The commissioner shall release ten 
 13.3   percent of this money when the 
 13.4   University demonstrates that it is 
 13.5   progressing in its development of the 
 13.6   school of medicine at the University of 
 13.7   Minnesota Duluth as a rural health 
 13.8   center.  This progress shall be 
 13.9   measured by (1) changes in the 
 13.10  educational program to expand the 
 13.11  coordination of training for rural 
 13.12  nurse practitioner, pharmacy, physician 
 13.13  assistant, and medical students; and 
 13.14  (2) development of electronic linkages 
 13.15  between distant sites to provide video 
 13.16  conferences, transmission of images, 
 13.17  and transfer of information. 
 13.18     Sec. 9.  Laws 1996, chapter 463, section 2, subdivision 6, 
 13.19  is amended to read: 
 13.20  Subd. 6.  Anoka Ramsey Community College 
 13.21  (a) Addition and Remodeling                          10,430,000
 13.22  Design, construct, furnish, and equip 
 13.23  an addition and remodel existing space 
 13.24  to provide classrooms, a learning 
 13.25  resource center, computer labs, a 
 13.26  developmental learning center, science 
 13.27  labs, nursing and student services 
 13.28  facilities, offices, and a campus 
 13.29  center, and food service.  The college 
 13.30  may use up to $900,000 from auxiliary 
 13.31  enterprise funds for this project. 
 13.32  (b) Design and construct a replacement
 13.33  energy plant and service elevator                     4,510,000