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SF 1236

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/16/2013 08:35pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1236
1.2A bill for an act
1.3relating to higher education; providing funding for the University of Minnesota,
1.4Minnesota State Colleges and Universities, the Minnesota Office of Higher
1.5Education, and for other higher education purposes; regulating the state
1.6grant program; limiting certain tuition increases; regulating bonus payments;
1.7eliminating state regulation of certain online instruction; providing for local bank
1.8deposit of certain MnSCU reserves; requiring the development of strategies to
1.9assist in the completion of post-secondary programs; requiring an assessment
1.10of the feasibility of a state program to refinance student debt; creating a pilot
1.11program for intensive mentoring, counseling, and job placement activities for
1.12certain students; requiring an evaluation of which performance standards should
1.13be used to evaluate institutional eligibility for state student financial aid programs;
1.14requiring the University of Minnesota to develop a plan to reduce administrative
1.15costs; requiring a higher education mental health summit; creating a tribal
1.16college supplemental grant assistance program; recognizing veteran's experience
1.17and training for various higher education purposes; providing a pilot program for
1.18state grant aid to part-time students at MnSCU institutions; appropriating money;
1.19amending Minnesota Statutes 2012, sections 13.47, subdivision 3; 127A.70,
1.20subdivision 2; 135A.61; 136A.031, subdivision 2; 136A.101, subdivisions 3, 5a,
1.219; 136A.121, subdivision 5, by adding a subdivision; 136A.125, subdivisions
1.222, 4; 136A.233, subdivision 2; 136A.62, by adding a subdivision; 136A.646;
1.23136A.65, subdivisions 4, 8; 136A.653, by adding a subdivision; 136F.40,
1.24subdivision 2; 137.027; 141.25, subdivision 7; 141.35; 197.775, subdivisions
1.251, 2, by adding a subdivision; 268.19, subdivision 1; 299A.45, subdivision 4;
1.26proposing coding for new law in Minnesota Statutes, chapters 135A; 136A;
1.27136F; 137; repealing Minnesota Statutes 2012, section 136A.121, subdivision 9b.
1.28May 16, 2013
1.29The Honorable Sandra L. Pappas
1.30President of the Senate
1.31The Honorable Paul Thissen
1.32Speaker of the House of Representatives
1.33We, the undersigned conferees for S.F. No. 1236 report that we have agreed upon
1.34the items in dispute and recommend as follows:
1.35That the House recede from its amendments and that S.F. No. 1236 be further
1.36amended as follows:
1.37Delete everything after the enacting clause and insert:

2.1"ARTICLE 1
2.2HIGHER EDUCATION APPROPRIATIONS

2.3
Section 1. SUMMARY OF APPROPRIATIONS.
2.4    Subdivision 1. Summary By Fund. The amounts shown in this subdivision
2.5summarize direct appropriations, by fund, made in this article.
2.6
SUMMARY BY FUND
2.7
2014
2015
Total
2.8
General
$
1,393,096,000
$
1,422,165,000
$
2,815,261,000
2.9
Health Care Access
2,157,000
2,157,000
4,314,000
2.10
Total
$
1,395,253,000
$
1,424,322,000
$
2,819,575,000
2.11    Subd. 2. Summary By Agency - All Funds. The amounts shown in this subdivision
2.12summarize direct appropriations, by agency, made in this article.
2.13
SUMMARY BY AGENCY - ALL FUNDS
2.14
2014
2015
Total
2.15
2.16
Minnesota Office of Higher
Education
$
227,031,000
$
224,572,000
$
451,603,000
2.17
2.18
2.19
Board of Trustees of the
Minnesota State Colleges and
Universities
587,915,000
605,143,000
1,193,058,000
2.20
2.21
Board of Regents of the
University of Minnesota
578,956,000
593,256,000
1,172,212,000
2.22
Mayo Clinic
1,351,000
1,351,000
2,702,000
2.23
Total
$
1,395,253,000
$
1,424,322,000
$
2,819,575,000

2.24
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.25    The sums shown in the columns marked "Appropriations" are appropriated to the
2.26agencies and for the purposes specified in this article. The appropriations are from the
2.27general fund, or another named fund, and are available for the fiscal years indicated
2.28for each purpose. The figures "2014" and "2015" used in this article mean that the
2.29appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.30June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.31year 2015. "The biennium" is fiscal years 2014 and 2015.
2.32
APPROPRIATIONS
2.33
Available for the Year
2.34
Ending June 30
2.35
2014
2015

2.36
2.37
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
3.1
Subdivision 1.Total Appropriation
$
227,031,000
$
224,572,000
3.2The amounts that may be spent for each
3.3purpose are specified in the following
3.4subdivisions.
3.5
Subd. 2.State Grants
179,141,000
176,781,000
3.6If the appropriation in this subdivision for
3.7either year is insufficient, the appropriation
3.8for the other year is available for it.
3.9
Subd. 3.Child Care Grants
6,684,000
6,684,000
3.10
Subd. 4.State Work-Study
14,502,000
14,502,000
3.11
Subd. 5.Interstate Tuition Reciprocity
11,017,000
11,018,000
3.12If the appropriation in this subdivision for
3.13either year is insufficient, the appropriation
3.14for the other year is available to meet
3.15reciprocity contract obligations.
3.16
Subd. 6.Safety Officer's Survivors
100,000
100,000
3.17This appropriation is to provide educational
3.18benefits under Minnesota Statutes, section
3.19299A.45, to eligible dependent children and
3.20to the spouses of public safety officers killed
3.21in the line of duty.
3.22If the appropriation in this subdivision for
3.23either year is insufficient, the appropriation
3.24for the other year is available for it.
3.25
Subd. 7.Indian Scholarships
3,100,000
3,100,000
3.26The director must contract with or employ
3.27at least one person with demonstrated
3.28competence in American Indian culture and
3.29residing in or near the city of Bemidji to
3.30assist students with the scholarships under
3.31Minnesota Statutes, section 136A.126, and
3.32with other information about financial aid for
4.1which the students may be eligible. Bemidji
4.2State University must provide office space
4.3at no cost to the Minnesota Office of Higher
4.4Education for purposes of administering the
4.5American Indian scholarship program under
4.6Minnesota Statutes, section 136A.126. This
4.7appropriation includes funding to administer
4.8the American Indian scholarship program.
4.9
Subd. 8.Tribal College Grants
150,000
150,000
4.10For tribal college assistance grants under
4.11new Minnesota Statutes, section 136A.50.
4.12
4.13
Subd. 9.High School-to-College Developmental
Transition Grants
100,000
100,000
4.14For grants under Minnesota Statutes, section
4.15135A.61, for the high school-to-college
4.16developmental transition program grants.
4.17
4.18
Subd. 10.Intervention for College Attendance
Program Grants
671,000
671,000
4.19For the intervention for college attendance
4.20program under Minnesota Statutes, section
4.21136A.861.
4.22This appropriation includes funding to
4.23administer the intervention for college
4.24attendance program grants.
4.25
Subd. 11.Student-Parent Information
122,000
122,000
4.26
Subd. 12.Get Ready
180,000
180,000
4.27
Subd. 13.Midwest Higher Education Compact
95,000
95,000
4.28
Subd. 14.Minnesota Minority Partnership
45,000
45,000
4.29
4.30
Subd. 15.United Family Medicine Residency
Program
351,000
351,000
4.31For a grant to United Family Medicine
4.32residency program. This appropriation
4.33shall be used to support up to 18 resident
5.1physicians each year in family practice at
5.2United Family Medicine residency programs
5.3and shall prepare doctors to practice family
5.4care medicine in underserved rural and
5.5urban areas of the state. It is intended
5.6that this program will improve health
5.7care in underserved communities, provide
5.8affordable access to appropriate medical
5.9care, and manage the treatment of patients in
5.10a cost-effective manner.
5.11
Subd. 16.MnLINK Gateway and Minitex
5,905,000
5,905,000
5.12
5.13
Subd. 17.Statewide Longitudinal Education
Data System
882,000
882,000
5.14$582,000 in fiscal year 2014 and $582,000
5.15in fiscal year 2015 are appropriated to the
5.16Office of Higher Education for transfer
5.17to the Office of Enterprise Technology to
5.18maintain infrastructure of the Statewide
5.19Longitudinal Education Data System and
5.20to acquire additional data through purchase
5.21and development. This transfer to the Office
5.22of Enterprise Technology is onetime. Any
5.23ongoing information technology support
5.24or costs for the Statewide Longitudinal
5.25Education Data System will be incorporated
5.26into the service level agreement and will be
5.27paid to the Office of Enterprise Technology
5.28by the Office of Higher Education under
5.29the rates and mechanism specified in that
5.30agreement.
5.31
Subd. 18.Hennepin County Medical Center
645,000
645,000
5.32For transfer to Hennepin County Medical
5.33Center for graduate family medical education
5.34programs at Hennepin County Medical
5.35Center.
6.1
Subd. 19.Teach for America
750,000
750,000
6.2For the purpose of supporting Teach for
6.3America activities in Minnesota and must
6.4not be used for teaching services performed
6.5outside Minnesota. The appropriation shall
6.6be used for:
6.7(1) expenses related to the recruitment,
6.8selection, and training of Teach for America
6.9corps members;
6.10(2) ongoing professional development and
6.11support of Teach for America corps members;
6.12(3) ongoing alumni support; and
6.13(4) management and operational support,
6.14development, and central services, including
6.15finance, technology, and human services.
6.16The appropriation for fiscal year 2015 is not
6.17available until the appropriation for fiscal
6.18year 2014 is matched by $2,121,000 from
6.19nonstate sources.
6.20Teach for America must by February 1, 2015,
6.21report to the chairs and ranking minority
6.22members of the legislative committees
6.23and divisions with jurisdiction over higher
6.24education on activities funded by this
6.25appropriation. Specifically, and without
6.26limitation, the report must include a report
6.27on the number of teachers of color funded
6.28and on the success of the teaching activities.
6.29To the extent possible, success must be
6.30measured using the Minnesota teachers
6.31development and evaluation program.
6.32
Subd. 20.Prosperity Act.
7.1$100,000 in fiscal year 2014 is appropriated
7.2from the general fund to the Office of Higher
7.3Education for the information technology
7.4costs associated with the implementation
7.5of the Prosperity Act. This is a onetime
7.6appropriation.
7.7
Subd. 21.Agency Administration
2,491,000
2,491,000
7.8
Subd. 22.Balances Forward
7.9A balance in the first year under this section
7.10does not cancel, but is available for the
7.11second year.
7.12
Subd. 23.Transfers
7.13The Minnesota Office of Higher Education
7.14may transfer unencumbered balances from
7.15the appropriations in this section to the state
7.16grant appropriation, the interstate tuition
7.17reciprocity appropriation, the child care
7.18grant appropriation, the Indian scholarship
7.19appropriation, the state work-study
7.20appropriation, the get ready appropriation,
7.21and the public safety officers' survivors
7.22appropriation. Transfers from the child care
7.23or state work-study appropriations may only
7.24be made to the extent there is a projected
7.25surplus in the appropriation. A transfer may
7.26be made only with prior written notice to
7.27the chairs and ranking minority members
7.28of the senate and house of representatives
7.29committees and divisions with jurisdiction
7.30over higher education finance.

7.31
7.32
7.33
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
7.34
Subdivision 1.Total Appropriation
$
587,915,000
$
605,143,000
8.1The amounts that may be spent for each
8.2purpose are specified in the following
8.3subdivisions.
8.4
8.5
Subd. 2.Central Office and Shared Services
Unit
33,074,000
33,074,000
8.6For the Office of the Chancellor and the
8.7Shared Services Division.
8.8
Subd. 3.Operations and Maintenance
550,726,000
567,954,000
8.9This appropriation includes $25,500,000 in
8.10fiscal year 2014 and $52,500,000 in fiscal
8.11year 2015 for student tuition relief. The
8.12Board of Trustees may not set the tuition
8.13rate in any undergraduate degree-granting
8.14program for the 2013-2014 and 2014-2015
8.15academic years at a rate greater than the
8.162012-2013 academic year rate. The student
8.17tuition relief may not be offset by increases
8.18in mandatory fees, charges, or other
8.19assessments to the student.
8.20To the extent that appropriations under
8.21this subdivision are insufficient to meet
8.22obligations contained in a labor or program
8.23contract, the Board of Trustees shall fund
8.24those obligations through reductions in costs
8.25associated with central administration of
8.26the system and executive administration of
8.27individual campuses, or through reallocation
8.28of nonstate funds received by the system.
8.29These outstanding obligations may not be
8.30funded through reduction in any program or
8.31service that directly impacts students or that
8.32is newly-authorized by the legislature for the
8.332014-2015 biennium, or through increased
8.34fees or costs directly assessed to students.
9.1$17,000,000 in fiscal year 2014 is for
9.2retention of talented faculty and staff. No
9.3later than April 1, 2014, the Board of Trustees
9.4must report to the legislative committees with
9.5jurisdiction over higher education finance
9.6and policy on the expenditure of these funds.
9.7The report must include:
9.8(1) the aggregate number of positions retained
9.9systemwide, and by individual campus;
9.10(2) the criteria used to determine whether a
9.11position qualified for retention funds from
9.12this appropriation;
9.13(3) the allocation of this appropriation
9.14among employment categories including,
9.15but not limited to, central administrative
9.16staff, executive administration on individual
9.17campuses, directors or chairs of individual
9.18programs and departments, faculty, academic
9.19support and student services staff, auxiliary
9.20services, and other employment categories as
9.21appropriate, and the average compensation
9.22increase for positions within each category;
9.23(4) an itemized accounting of this
9.24appropriation's allocation by individual
9.25employment position, including each
9.26position's job title, the full compensation
9.27and benefit structure for that position before
9.28and after this appropriation is allocated,
9.29the percent increase in compensation and
9.30benefits for that position as a result of
9.31this appropriation, and data comparing the
9.32compensation and benefit structure offered
9.33with similar positions at peer institutions; and
9.34(5) the number of talented faculty and staff
9.35positions targeted for retention that were not
10.1able to be retained, and the reasons those
10.2positions were not retained.
10.3$18,000 each year is for transfer to the Cook
10.4County Higher Education Board to provide
10.5educational programming and academic
10.6support services to remote regions in
10.7northeastern Minnesota. This appropriation
10.8is in addition to the $102,000 per fiscal year
10.9this project currently receives. The project
10.10shall continue to provide information to the
10.11Board of Trustees on the number of students
10.12served, credit hours delivered, and services
10.13provided to students. The base appropriation
10.14under this paragraph is $120,000 each year.
10.15$7,278,000 in fiscal year 2015 is for a
10.16leveraged equipment program. For the
10.17purpose of this section, "equipment" means
10.18equipment for instructional purposes for
10.19programs that the board determines would
10.20produce graduates with skills for which there
10.21is a high employer need within the state. An
10.22equipment acquisition may be made under
10.23this appropriation only if matched by cash or
10.24in-kind contributions from nonstate sources.
10.25No later than January 15, 2015, the Board
10.26of Trustees shall submit a report to the
10.27legislative committees with oversight over
10.28higher education finance and policy on the
10.29expenditure of these funds to date. The
10.30reports must also list each donor, and the
10.31amount contributed by the donor, or in the
10.32case of an in-kind contribution, the nature
10.33and value of the contribution, received to
10.34date for purposes of the required match.
11.1$50,000 in fiscal year 2014 is to convene
11.2a mental health issues summit. This is a
11.3onetime appropriation.
11.4Five percent of the fiscal year 2015
11.5appropriation in this subdivision is available
11.6in fiscal year 2015 when the Board of
11.7Trustees of the Minnesota State Colleges and
11.8Universities (MnSCU) demonstrates to the
11.9commissioner of management and budget
11.10that the board has met at least three of the
11.11following five performance goals:
11.12(1) increase by at least four percent in
11.13fiscal year 2013, compared to fiscal year
11.142010, graduates or degrees, diplomas, and
11.15certificates conferred;
11.16(2) increase by at least one percent the fall
11.172013 persistence and completion rate for fall
11.182012 entering students compared to the fall
11.192010 rate for fall 2009 entering students;
11.20(3) increase by at least four percent the fiscal
11.21year 2013 related employment rate for 2012
11.22graduates compared to the 2011 rate for 2010
11.23graduates;
11.24(4) by 2014, MnSCU must collect data on
11.25the number of Open Educational Resources
11.26(OER) tools and services offered and
11.27formulate a plan to actualize a one percent
11.28reduction in expenses directly related to the
11.29cost of instruction incurred by students; and
11.30(5) reallocate $22,000,000 that became
11.31available through expense realignment in
11.32fiscal year 2014.
11.33"Open Educational Resources" includes,
11.34but is not limited to, textbooks, study
12.1guides, worksheets, journals, video, audio
12.2recordings, massive open online courses, or
12.3other innovative course configuration.
12.4"Cost of instruction" means average tuition,
12.5average fees, average cost to student for
12.6textbooks and related course material.
12.7By August 1, 2013, the Board of Trustees
12.8and the Minnesota Office of Higher
12.9Education must agree on specific numerical
12.10indicators and definitions for each of the five
12.11goals that will be used to demonstrate the
12.12Minnesota State Colleges and Universities'
12.13attainment of each goal. On or before April
12.141, 2014, the Board of Trustees must report
12.15to the legislative committees with primary
12.16jurisdiction over higher education finance and
12.17policy the progress of the Minnesota State
12.18Colleges and Universities toward attaining
12.19the goals. The appropriation base for the
12.20next biennium shall include appropriations
12.21not made available under this subdivision for
12.22failure to meet performance goals.
12.23
Subd. 4.Learning Network of Minnesota
4,115,000
4,115,000

12.24
12.25
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
12.26
Subdivision 1.Total Appropriation
$
578,956,000
$
593,256,000
12.27
Appropriations by Fund
12.28
2014
2015
12.29
General
576,799,000
591,099,000
12.30
Health Care Access
2,157,000
2,157,000
12.31The amounts that may be spent for each
12.32purpose are specified in the following
12.33subdivisions.
12.34
Subd. 2.Operations and Maintenance
515,211,000
529,511,000
13.1This appropriation includes funding for
13.2operation and maintenance of the system.
13.3This appropriation includes $14,200,000 in
13.4fiscal year 2014 and $28,400,000 in fiscal
13.5year 2015 for tuition relief. The Board
13.6of Regents is requested to maintain the
13.7Minnesota resident undergraduate tuition rate
13.8for the 2013-2014 and 2014-2015 academic
13.9years at the 2012-2013 academic year rate.
13.10$17,775,000 in fiscal year 2014 and
13.11$17,875,000 in fiscal year 2015 are for
13.12the Minnesota Discovery, Research, and
13.13InnoVation Economy (MnDRIVE) funding
13.14program.
13.15Five percent of the fiscal year 2015
13.16appropriation in this subdivision is available
13.17in fiscal year 2015 when the Board of Regents
13.18of the University of Minnesota demonstrates
13.19to the commissioner of management and
13.20budget that the board has met at least three of
13.21the following five performance goals:
13.22(1) increase by at least one percent the Twin
13.23Cities campus undergraduate four-year,
13.24five-year, or six-year graduation rates
13.25averaged over three years, for low-income
13.26students reported in fall 2014 over fall 2012.
13.27The average rate for fall 2012 is calculated
13.28with the fall 2010, 2011, and 2012 graduation
13.29rates;
13.30(2) increase by at least three percent the total
13.31number of undergraduate STEM degrees,
13.32averaged over three years, conferred by the
13.33University of Minnesota Twin Cities campus
13.34reported in fiscal year 2014 over fiscal year
13.352012. The averaged number for fall 2012 is
14.1calculated with the fall 2010, 2011, and 2012
14.2number;
14.3(3) increase by at least one percent the
14.4four-year, five-year, or six-year graduation
14.5rates, averaged over three years, at the
14.6University of Minnesota reported in fall 2014
14.7over fall 2012. The average rate for fall 2012
14.8is calculated with the fall 2010, 2011, and
14.92012 graduation rates;
14.10(4) for fiscal year 2014, decrease
14.11administrative costs by $15,000,000; and
14.12(5) increase invention disclosures by three
14.13percent for fiscal year 2014 over fiscal year
14.142013 (net of student disclosures).
14.15By August 1, 2013, the Board of Regents and
14.16the Minnesota Office of Higher Education
14.17must agree on specific numerical indicators
14.18and definitions for each of the five goals that
14.19will be used to demonstrate the University of
14.20Minnesota's attainment of each goal. On or
14.21before April 1, 2014, the Board of Regents
14.22must report to the legislative committees
14.23with primary jurisdiction over higher
14.24education finance and policy the progress of
14.25the University of Minnesota toward attaining
14.26the goals. The appropriation base for the
14.27next biennium shall include appropriations
14.28not made available under this subdivision for
14.29failure to meet performance goals.
14.30
Subd. 3.Primary Care Education Initiatives
2,157,000
2,157,000
14.31This appropriation is from the health care
14.32access fund.
14.33
Subd. 4.Special Appropriations
14.34
(a) Agriculture and Extension Service
42,922,000
42,922,000
15.1For the Agricultural Experiment Station and
15.2the Minnesota Extension Service:
15.3(1) the agricultural experiment stations
15.4and Minnesota Extension Service must
15.5convene agricultural advisory groups to
15.6focus research, education, and extension
15.7activities on producer needs and implement
15.8an outreach strategy that more effectively
15.9and rapidly transfers research results and best
15.10practices to producers throughout the state;
15.11(2) this appropriation includes funding for
15.12research and outreach on the production of
15.13renewable energy from Minnesota biomass
15.14resources, including agronomic crops, plant
15.15and animal wastes, and native plants or trees.
15.16The following areas should be prioritized and
15.17carried out in consultation with Minnesota
15.18producers, renewable energy, and bioenergy
15.19organizations:
15.20(i) biofuel and other energy production from
15.21perennial crops, small grains, row crops,
15.22and forestry products in conjunction with
15.23the Natural Resources Research Institute
15.24(NRRI);
15.25(ii) alternative bioenergy crops and cropping
15.26systems; and
15.27(iii) biofuel coproducts used for livestock
15.28feed;
15.29(3) this appropriation includes funding
15.30for the College of Food, Agricultural, and
15.31Natural Resources Sciences to establish and
15.32provide leadership for organic agronomic,
15.33horticultural, livestock, and food systems
15.34research, education, and outreach and for
16.1the purchase of state-of-the-art laboratory,
16.2planting, tilling, harvesting, and processing
16.3equipment necessary for this project;
16.4(4) this appropriation includes funding
16.5for research efforts that demonstrate a
16.6renewed emphasis on the needs of the state's
16.7agriculture community. The following
16.8areas should be prioritized and carried
16.9out in consultation with Minnesota farm
16.10organizations:
16.11(i) vegetable crop research with priority for
16.12extending the Minnesota vegetable growing
16.13season;
16.14(ii) fertilizer and soil fertility research and
16.15development;
16.16(iii) soil, groundwater, and surface water
16.17conservation practices and contaminant
16.18reduction research;
16.19(iv) discovering and developing plant
16.20varieties that use nutrients more efficiently;
16.21(v) breeding and development of turf seed
16.22and other biomass resources in all three
16.23Minnesota biomes;
16.24(vi) development of new disease-resistant
16.25and pest-resistant varieties of turf and
16.26agronomic crops;
16.27(vii) utilizing plant and livestock cells to treat
16.28and cure human diseases;
16.29(viii) the development of dairy coproducts;
16.30(ix) a rapid agricultural response fund for
16.31current or emerging animal, plant, and insect
16.32problems affecting production or food safety;
16.33(x) crop pest and animal disease research;
17.1(xi) developing animal agriculture that is
17.2capable of sustainably feeding the world;
17.3(xii) consumer food safety education and
17.4outreach;
17.5(xiii) programs to meet the research and
17.6outreach needs of organic livestock and crop
17.7farmers; and
17.8(xiv) alternative bioenergy crops and
17.9cropping systems; and growing, harvesting,
17.10and transporting biomass plant material; and
17.11(5) by February 1, 2015, the Board of Regents
17.12must submit a report to the legislative
17.13committees and divisions with responsibility
17.14for agriculture and higher education finance
17.15on the status and outcomes of research and
17.16initiatives funded in this section.
17.17
(b) Health Sciences
4,854,000
4,854,000
17.18$346,000 each year is to support up to 12
17.19resident physicians in the St. Cloud Hospital
17.20family practice residency program. The
17.21program must prepare doctors to practice
17.22primary care medicine in rural areas of the
17.23state. The legislature intends this program
17.24to improve health care in rural communities,
17.25provide affordable access to appropriate
17.26medical care, and manage the treatment of
17.27patients in a more cost-effective manner.
17.28The remainder of this appropriation is for
17.29the rural physicians associates program, the
17.30Veterinary Diagnostic Laboratory, health
17.31sciences research, dental care, and the
17.32Biomedical Engineering Center.
17.33
(c) Institute of Technology
1,140,000
1,140,000
18.1For the geological survey and the talented
18.2youth mathematics program.
18.3
(d) System Special
5,181,000
5,181,000
18.4For general research, the Labor Education
18.5Service, Natural Resources Research
18.6Institute, Center for Urban and Regional
18.7Affairs, Bell Museum of Natural History, and
18.8the Humphrey exhibit.
18.9Of this amount, $125,000 in fiscal year 2014
18.10and $125,000 in fiscal year 2015 are added
18.11to the base for the Labor Education Service.
18.12
18.13
(e) University of Minnesota and Mayo
Foundation Partnership
7,491,000
7,491,000
18.14For the direct and indirect expenses of the
18.15collaborative research partnership between
18.16the University of Minnesota and the Mayo
18.17Foundation for research in biotechnology
18.18and medical genomics. This appropriation is
18.19available until expended. An annual report
18.20on the expenditure of these funds must be
18.21submitted to the governor and the chairs of
18.22the legislative committee responsible for
18.23higher education finance by June 30 of each
18.24fiscal year.
18.25
Subd. 5.Academic Health Center
18.26The appropriation for Academic Health
18.27Center funding under Minnesota Statutes,
18.28section 297F.10, is estimated to be
18.29$22,250,000 each year.

18.30
Sec. 6. MAYO CLINIC
18.31
Subdivision 1.Total Appropriation
$
1,351,000
$
1,351,000
18.32The amounts that may be spent are specified
18.33in the following subdivisions.
19.1
Subd. 2.Medical School
665,000
665,000
19.2The state must pay a capitation each year for
19.3each student who is a resident of Minnesota.
19.4The appropriation may be transferred
19.5between each year of the biennium to
19.6accommodate enrollment fluctuations. It is
19.7intended that during the biennium the Mayo
19.8Clinic use the capitation money to increase
19.9the number of doctors practicing in rural
19.10areas in need of doctors.
19.11
19.12
Subd. 3.Family Practice and Graduate
Residency Program
686,000
686,000
19.13The state must pay stipend support for up to
19.1427 residents each year.

19.15ARTICLE 2
19.16HIGHER EDUCATION POLICY

19.17    Section 1. Minnesota Statutes 2012, section 13.47, subdivision 3, is amended to read:
19.18    Subd. 3. Dissemination. (a) Employment and training data may be disseminated by
19.19employment and training service providers:
19.20(a) (1) to other employment and training service providers to coordinate the
19.21employment and training services for the data subject or to determine eligibility or
19.22suitability for services from other programs;
19.23(b) (2) to local and state welfare agencies for monitoring the eligibility of the
19.24participant for assistance programs, or for any employment or training program
19.25administered by those agencies; and
19.26(c) (3) to the commissioner of employment and economic development.
19.27(b) The commissioner of employment and economic development may disseminate
19.28employment and training data to the Office of Higher Education for purposes of supporting
19.29program improvement, system evaluation, and research initiatives including the Statewide
19.30Longitudinal Education Data System.

19.31    Sec. 2. Minnesota Statutes 2012, section 127A.70, subdivision 2, is amended to read:
19.32    Subd. 2. Powers and duties; report. (a) The partnership shall develop
19.33recommendations to the governor and the legislature designed to maximize the achievement
20.1of all P-20 students while promoting the efficient use of state resources, thereby helping
20.2the state realize the maximum value for its investment. These recommendations may
20.3include, but are not limited to, strategies, policies, or other actions focused on:
20.4    (1) improving the quality of and access to education at all points from preschool
20.5through graduate education;
20.6    (2) improving preparation for, and transitions to, postsecondary education and
20.7work; and
20.8    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
20.9teacher preparation, induction and mentoring of beginning teachers, and continuous
20.10professional development for career teachers.
20.11    (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal
20.12Education Data System Governance Committee, the Office of Higher Education, and
20.13the Departments of Education and Employment and Economic Development shall
20.14improve and expand the statewide longitudinal education data system (SLEDS) to provide
20.15policymakers, education and workforce leaders, researchers, and members of the public
20.16with data, research, and reports to:
20.17(1) expand reporting on students' educational outcomes;
20.18(2) evaluate the effectiveness of educational and workforce programs; and
20.19(3) evaluate the relationship between education and workforce outcomes.
20.20To the extent possible under federal and state law, research and reports should be
20.21accessible to the public on the Internet, and disaggregated by demographic characteristics,
20.22organization or organization characteristics, and geography.
20.23It is the intent of the legislature that the statewide longitudinal education data system
20.24inform public policy and decision-making. The SLEDS governance committee, with
20.25assistance from staff of the Office of Higher Education, the Department of Education, and
20.26the Department of Employment and Economic Development, shall respond to legislative
20.27committee and agency requests on topics utilizing data made available through the
20.28statewide longitudinal education data system as resources permit. Any analysis of or
20.29report on the data must contain only summary data.
20.30    (c) By January 15 of each year, the partnership shall submit a report to the governor
20.31and to the chairs and ranking minority members of the legislative committees and
20.32divisions with jurisdiction over P-20 education policy and finance that summarizes the
20.33partnership's progress in meeting its goals and identifies the need for any draft legislation
20.34when necessary to further the goals of the partnership to maximize student achievement
20.35while promoting efficient use of resources.

21.1    Sec. 3. Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to read:
21.2    Subd. 7. Reports. (a) Instructional and noninstructional expenditure data and
21.3enrollment data must be submitted in the biennial budget document under section
21.4135A.034. This report must include a description of the methodology for determining
21.5instructional and noninstructional expenditures and estimates of inflation in higher
21.6education and the methodology or index used to determine the inflation rate. The
21.7University of Minnesota and the Minnesota State Colleges and Universities systems shall
21.8include in their biennial budget proposals to the legislature:
21.9    (1) a five-year history of systemwide expenditures, reported by:
21.10    (i) functional areas, including instruction, research, public service, student financial
21.11aid, and auxiliary services, and including direct costs and indirect costs, such as
21.12institutional support, academic support, student services, and facilities management,
21.13associated with each functional area; and
21.14    (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
21.15    (2) a five-year history of the system's total instructional expenditures per full-year
21.16equivalent student, by level of instruction, including upper-division undergraduate,
21.17lower-division undergraduate, graduate, professional, and other categories of instructional
21.18programs offered by the system;
21.19    (3) a five-year history of the system's total revenues by funding source, including
21.20tuition, state operations and maintenance appropriations, state special appropriations, other
21.21restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary
21.22revenue, indirect cost recovery, and any other revenue sources;
21.23    (b) By February 1 of each even-numbered year, the Board of Regents of the University
21.24of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
21.25must submit a report to the chairs of the legislative committees with jurisdiction over
21.26higher education policy and finance. The report must describe the following:
21.27    (1) (4) an explanation describing how state appropriations made to the system in
21.28the previous odd-numbered year biennium were allocated and the methodology used to
21.29determine the allocation;
21.30    (2) (5) data describing how the institution reallocated resources to advance the
21.31priorities set forth in the budget submitted under section 135A.034 and the statewide
21.32objectives under section 135A.011. The information must indicate whether instruction
21.33and support programs received a reduction in or additional resources. The total amount
21.34reallocated must be clearly explained;
21.35    (3) (6) the tuition rates and fees established by the governing board in each of the
21.36past ten years and comparison data for peer institutions and national averages;
22.1    (4) (7) data on the number and proportion of students graduating within four, five,
22.2and six years from universities and within three years from colleges as reported in the
22.3integrated postsecondary education data system. These data must be provided for each
22.4institution by race, ethnicity, and gender. Data and information must be submitted that
22.5describe the system's plan and progress toward attaining the goals set forth in the plan
22.6to increase the number and proportion of students that graduate within four, five, or six
22.7years from a university or within three years from a college;
22.8    (5) (8) data on, and the methodology used to measure, the number of students
22.9traditionally underrepresented in higher education enrolled at the system's institutions.
22.10Data and information must be submitted that describe the system's plan and progress
22.11toward attaining the goals set forth in the plan to increase the recruitment, retention, and
22.12timely graduation of students traditionally underrepresented in higher education; and
22.13    (6) (9) data on the revenue received from all sources to support research or
22.14workforce development activities or the system's efforts to license, sell, or otherwise
22.15market products, ideas, technology, and related inventions created in whole or in part by
22.16the system. Data and information must be submitted that describe the system's plan and
22.17progress toward attaining the goals set forth in the plan to increase the revenue received
22.18to support research or workforce development activities or revenue received from the
22.19licensing, sale, or other marketing and technology transfer activities by the system.
22.20    (c) Instructional expenditure and enrollment data (b) Data required by this
22.21subdivision shall be submitted by the public postsecondary systems to the Minnesota
22.22Office of Higher Education and the Department of Management and Budget and included
22.23in the biennial budget document. The specific data shall be submitted only after the
22.24director of the Minnesota Office of Higher Education has consulted with a data advisory
22.25task force to determine the need, content, and detail of the information. Representatives
22.26from each system, in consultation with the commissioner of management and budget
22.27and the director of the Office of Higher Education, shall develop consistent reporting
22.28practices for this purpose.
22.29    (c) To the extent practicable, each system shall develop the ability to respond to
22.30legislative requests for financial analyses that are more detailed than those required by this
22.31subdivision, including but not limited to analyses that show expenditures or revenues by
22.32institution or program, or in multiple categories of expenditures or revenues, and analyses
22.33that show revenue sources for particular types of expenditures.

22.34    Sec. 4. Minnesota Statutes 2012, section 135A.61, is amended to read:
23.1135A.61 HIGH SCHOOL-TO-COLLEGE DEVELOPMENTAL TRANSITION
23.2PROGRAMS PROGRAM GRANTS.
23.3    Subdivision 1. High school-to-college developmental transition programs
23.4 program grants. All public higher education systems and other higher education
23.5institutions in Minnesota are encouraged to offer (a) The director of the Minnesota Office of
23.6Higher Education shall award competitive matching grants to Minnesota public and private
23.7postsecondary institutions offering research-based high school-to-college developmental
23.8transition programs to prepare students for college-level academic coursework. A program
23.9under this section must, at a minimum, include instruction to develop the skills and
23.10abilities necessary to be ready for college-level coursework when the student enrolls in a
23.11degree, diploma, or certificate program and must address the academic skills identified
23.12as needing improvement by a college readiness assessment completed by the student. A
23.13program Developmental courses offered under this section must not constitute more than
23.14the equivalent of one semester of full-time study occurring in the summer following
23.15high school graduation. The courses completed in a program under this section must be
23.16identified on the student's transcript with a unique identifier to distinguish it them from
23.17other developmental education courses or programs. Courses attended will not count
23.18towards the limit on postsecondary education used for state financial aid programs under
23.19sections 136A.121, subdivision 9, and 136A.125, subdivision 2, paragraph (a), clause (4).
23.20Grants must be awarded to programs that provide instruction and services including,
23.21but not limited to:
23.22(1) summer developmental courses in academic areas requiring remediation;
23.23(2) academic advising, mentoring, and tutoring during the summer program and
23.24throughout the student's first year of enrollment;
23.25(3) interaction with student support services, admissions and financial aid offices; and
23.26(4) orientation to college life, such as study skills or time management.
23.27(b) Grants shall be awarded to eligible postsecondary institutions as defined in
23.28section 136A.103.
23.29(c) Grants shall be awarded for one year and may be renewed for a second year
23.30with documentation to the Minnesota Office of Higher Education of successful program
23.31outcomes.
23.32    Subd. 1a. Eligible students. (a) Eligible students include students who earned a
23.33high school diploma or its equivalent during the academic year immediately preceding the
23.34summer program and who meet one or more of the following criteria:
23.35(1) are counted under section 1124(c) of the Elementary and Secondary Education
23.36Act of 1965 (Title I);
24.1(2) are eligible for free or reduced-price lunch under the National School Lunch Act;
24.2(3) receive assistance under the Temporary Assistance for Needy Families Law (Title
24.3I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
24.4(4) are a member of a group traditionally underrepresented in higher education.
24.5(b) Eligible students include those who met the student eligibility criteria in the
24.6student's final year of high school and plan to enroll in college the academic year following
24.7high school graduation or its equivalency.
24.8    Subd. 1b. Application process. (a) The director of the Minnesota Office of Higher
24.9Education shall develop a grant application process. The director shall attempt to support
24.10projects in a manner that ensures that eligible students throughout the state have access to
24.11program services.
24.12(b) The grant application must include, at a minimum, the following information:
24.13(1) a description of the characteristics of the students to be served reflective of the
24.14need for services listed in subdivision 1;
24.15(2) a description of the services to be provided and a timeline for implementation of
24.16the activities;
24.17(3) a description of how the services provided will improve postsecondary readiness
24.18and support postsecondary retention;
24.19(4) a description of how the services will be evaluated to determine whether the
24.20program goals were met; and
24.21(5) other information as identified by the director.
24.22Grant recipients must specify both program and student outcome goals, and
24.23performance measures for each goal.
24.24    Subd. 1c. Match required. Applicants are required to match the grant amount
24.25dollar-for-dollar. The match may be in cash or an in-kind contribution.
24.26    Subd. 1d. Review committee. The director must establish and convene a grant
24.27selection committee to review applications and award grants. The members of the
24.28committee may include representatives of postsecondary institutions, school districts,
24.29organizations providing college outreach services, and others deemed appropriate by the
24.30director.
24.31    Subd. 2. High school-to-college developmental transition programs evaluation
24.32report. (a) Institutions that offer a high school-to-college developmental transition
24.33program and enroll students that receive a grant under section 136A.121, subdivision 9b,
24.34 must annually submit data and information about the services provided and program
24.35outcomes to the director of the Minnesota Office of Higher Education.
25.1(b) The director must establish and convene a data working group to develop: (1) the
25.2data methodology to be used in evaluating the effectiveness of the programs implemented
25.3to improve the academic performance of participants, including the identification of
25.4appropriate comparison groups; and (2) a timeline for institutions to submit data and
25.5information to the director. The data working group must develop procedures that
25.6ensure consistency in the data collected by each institution. Data group members must
25.7have expertise in data collection processes and the delivery of academic programs to
25.8students, and represent the types of institutions that offer a program under this section.
25.9The data group must assist the director in analyzing and synthesizing institutional data
25.10and information to be included in the evaluation report submitted to the legislature under
25.11subdivision 3.
25.12(c) Participating institutions must specify both program and student outcome goals
25.13and the activities implemented to achieve the goals. The goals must be clearly stated and
25.14measurable, and data collected must enable the director to verify the program has met the
25.15outcome goals established for the program.
25.16(d) The data and information submitted must include, at a minimum, the following:
25.17(1) demographic information about program participants;
25.18(2) names of the high schools from which the students graduated;
25.19(3) the college readiness test used to determine the student was not ready for
25.20college-level academic coursework;
25.21(4) the academic content areas assessed and the scores received by the students on
25.22the college readiness test;
25.23(5) a description of the services, including any supplemental noncredit academic
25.24support services, provided to students;
25.25(6) data on the registration load, courses completed, and grades received by students;
25.26(7) the retention of students from the term they participated in the program to the fall
25.27term immediately following graduation from high school;
25.28(8) information about the student's enrollment in subsequent terms; and
25.29(9) other information specified by the director or the data group that facilitates the
25.30evaluation process.
25.31    Subd. 3. Report to legislature. By March 15 of each year, beginning in 2011,
25.32the director shall submit a report to the committees of the legislature with jurisdiction
25.33over higher education finance and policy that evaluates the effectiveness of programs
25.34in improving the academic performance of students who participated in the transition
25.35programs.
26.1EFFECTIVE DATE.The amendments in this section are effective for programs
26.2offered in the summer of 2014 and thereafter.

26.3    Sec. 5. Minnesota Statutes 2012, section 136A.101, subdivision 3, is amended to read:
26.4    Subd. 3. Director Commissioner. "Director" "Commissioner" means the director
26.5 commissioner of the Minnesota Office of Higher Education.

26.6    Sec. 6. Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:
26.7    Subd. 9. Independent student. "Independent student" has the meaning given it in
26.8 under Title IV of the Higher Education Act of 1965, United States Code, title 20, section
26.91070a-6 as amended, and applicable regulations.

26.10    Sec. 7. Minnesota Statutes 2012, section 136A.121, is amended by adding a
26.11subdivision to read:
26.12    Subd. 20. Institution reporting. (a) Each institution receiving financial aid under
26.13this section must annually report by December 31 to the office the following for its
26.14undergraduate programs:
26.15(1) enrollment, persistence, and graduation data for all students, including aggregate
26.16information on state and federal Pell grant recipients;
26.17(2) the job placement rate and salary and wage information for graduates of each
26.18program that is either designed or advertised to lead to a particular type of job or advertised
26.19or promoted with a claim regarding job placement, as is practicable; and
26.20(3) the student debt to earnings ratio of graduates.
26.21(b) The office shall provide the following on its Internet Web site:
26.22(1) the information submitted by an institution pursuant to paragraph (a), which shall
26.23be made available in a searchable database; and
26.24(2) other information and links that are useful to students and parents who are in
26.25the process of selecting a college or university. This information may include, but is
26.26not limited to, local occupational profiles.
26.27(c) The office shall provide a standard format and instructions for supplying the
26.28information required under paragraph (a).

26.29    Sec. 8. Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read:
26.30    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
26.31the applicant:
26.32    (1) is a resident of the state of Minnesota;
27.1    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
27.2disabled as defined in section 125A.02, and who is receiving or will receive care on a
27.3regular basis from a licensed or legal, nonlicensed caregiver;
27.4    (3) is income eligible as determined by the office's policies and rules, but is not a
27.5recipient of assistance from the Minnesota family investment program;
27.6    (4) has not earned a baccalaureate degree and has been enrolled full time less than
27.7eight semesters or the equivalent;
27.8    (5) is pursuing a nonsectarian program or course of study that applies to an
27.9undergraduate degree, diploma, or certificate;
27.10    (6) is enrolled at least half time in an eligible institution; and
27.11    (7) is in good academic standing and making satisfactory academic progress.
27.12    (b) A student who withdraws from enrollment for active military service or for a
27.13major illness, while under the care of a medical professional, that substantially limits the
27.14student's ability to complete the term is entitled to an additional semester or the equivalent
27.15of grant eligibility and will be considered to be in continuing enrollment status upon return.

27.16    Sec. 9. Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read:
27.17    Subd. 4. Amount and length of grants. (a) The amount of a child care grant
27.18must be based on:
27.19    (1) the income of the applicant and the applicant's spouse;
27.20    (2) the number in the applicant's family, as defined by the office; and
27.21    (3) the number of eligible children in the applicant's family.
27.22    (b) The maximum award to the applicant shall be $2,600 $2,800 for each eligible
27.23child per academic year, except that the campus financial aid officer may apply to the
27.24office for approval to increase grants by up to ten percent to compensate for higher market
27.25charges for infant care in a community. The office shall develop policies to determine
27.26community market costs and review institutional requests for compensatory grant
27.27increases to ensure need and equal treatment. The office shall prepare a chart to show the
27.28amount of a grant that will be awarded per child based on the factors in this subdivision.
27.29The chart shall include a range of income and family size.

27.30    Sec. 10. Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:
27.31    Subd. 2. Definitions. For purposes of sections 136A.231 to 136A.233, the words
27.32defined in this subdivision have the meanings ascribed to them.
28.1    (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
28.2least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
28.3institution.
28.4    (b) "Minnesota resident" means a student who meets the conditions in section
28.5136A.101, subdivision 8 .
28.6    (c) "Financial need" means the need for financial assistance in order to attend a
28.7postsecondary institution as determined by a postsecondary institution according to
28.8guidelines established by the Minnesota Office of Higher Education.
28.9    (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
28.10nonsectarian agency or state institution located in the state of Minnesota, a disabled person
28.11or a person over 65 who employs a student to provide personal services in or about the
28.12person's residence, or a private, for-profit employer employing a student as an intern in a
28.13position directly related to the student's field of study that will enhance the student's
28.14knowledge and skills in that field.
28.15    (e) "Eligible postsecondary institution" means any postsecondary institution eligible
28.16for participation in the Minnesota state grant program as specified in section 136A.101,
28.17subdivision 4
.
28.18    (f) "Independent student" has the meaning given it in under Title IV of the Higher
28.19Education Act of 1965, United States Code, title 20, section 1070a-6 as amended, and
28.20applicable regulations.
28.21    (g) "Half time" for undergraduates has the meaning given in section 136A.101,
28.22subdivision 7b
, and for graduate students is defined by the institution.

28.23    Sec. 11. [136A.50] TRIBAL COLLEGE SUPPLEMENTAL GRANT
28.24ASSISTANCE.
28.25    Subdivision 1. Definitions. (a) As used in this section, the following terms have
28.26the meanings given them.
28.27(b) "Nonbeneficiary student" means a resident of Minnesota who is enrolled in a
28.28tribally controlled college but is not an enrolled member of a federally recognized Indian
28.29tribe.
28.30(c) "Tribally controlled college" means an accredited institution of higher education
28.31located in this state that is formally controlled by or has been formally sanctioned or
28.32chartered by the governing body of a federally recognized Indian tribe, or a combination
28.33of federally recognized Indian tribes. Tribally controlled college does not include any
28.34institution or campus subject to the jurisdiction of the Board of Trustees of the Minnesota
28.35State Colleges and Universities or the Board of Regents of the University of Minnesota.
29.1    Subd. 2. Eligibility; grant assistance. (a) A tribally controlled college is eligible to
29.2receive supplemental grant assistance from the Office of Higher Education, as provided in
29.3this section, for nonbeneficiary student enrollment if the college is not otherwise eligible
29.4to receive federal grant funding for those students under United States Code, title 25,
29.5section 1808.
29.6(b) The office shall make grants to tribally controlled colleges to defray the costs
29.7of education associated with the enrollment of nonbeneficiary students. Grants made
29.8pursuant to this section must be provided directly to the recipient college.
29.9    Subd. 3. Grant application. To receive a grant under this section, a tribally
29.10controlled college must submit an application in the manner required by the Office of
29.11Higher Education. Upon submission of a completed application indicating that the tribally
29.12controlled college is eligible, the office shall distribute to the college, during each year of
29.13the biennium, a grant of $5,300 for each nonbeneficiary student on a full-time equivalent
29.14basis. If the amount appropriated for grants under this section is insufficient to cover
29.15the total amount of grant eligibility, the office shall distribute a prorated amount per
29.16nonbeneficiary student on a full-time equivalent basis.
29.17    Subd. 4. Reporting by recipient institutions. Each tribally controlled college
29.18receiving a grant under this section shall provide to the Office of Higher Education,
29.19on an annual basis, an accurate and detailed account of the expenditures of the grant
29.20funds received by the college, and a copy of the college's most recent audit report and
29.21documentation of the enrollment status and ethnic status of each nonbeneficiary student
29.22for which grant assistance is sought under this section.

29.23    Sec. 12. Minnesota Statutes 2012, section 136A.62, is amended by adding a
29.24subdivision to read:
29.25    Subd. 6. Online platform service. An online platform service is a nondegree
29.26granting entity that provides online access to schools as defined in subdivision 3, to enable
29.27the schools to offer online training, courses, or programs.

29.28    Sec. 13. Minnesota Statutes 2012, section 136A.646, is amended to read:
29.29136A.646 ADDITIONAL SECURITY.
29.30    (a) In the event any registered institution is notified by the United States Department
29.31of Education that it has fallen below minimum financial standards and that its continued
29.32participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
29.33Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
29.34Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
30.1institution shall provide a surety bond conditioned upon the faithful performance of all
30.2contracts and agreements with students in a sum equal to the "letter of credit" required by
30.3the United States Department of Education in the Letter of Credit Alternative, but in no
30.4event shall such bond be less than $10,000 nor more than $250,000.
30.5    (b) In lieu of a bond, the applicant may deposit with the commissioner of
30.6management and budget:
30.7    (1) a sum equal to the amount of the required surety bond in cash; or
30.8    (2) securities, as may be legally purchased by savings banks or for trust funds, in an
30.9aggregate market value equal to the amount of the required surety bond.
30.10    (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
30.11the office and shall be relieved of liability for any breach of condition occurring after
30.12the effective date of cancellation.

30.13    Sec. 14. Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:
30.14    Subd. 8. Disapproval of registration appeal. (a) If a school's degree or use of a
30.15term in its name is disapproved by the office, the school may request a hearing under
30.16chapter 14. The request must be in writing and made to the office within 30 days of the
30.17date the school is notified of the disapproval.
30.18    (b) (a) The office may refuse to renew, revoke, or suspend registration, approval of
30.19a school's degree, or use of a regulated term in its name by giving written notice and
30.20reasons to the school. The school may request a hearing under chapter 14. If a hearing is
30.21requested, no revocation or suspension shall take effect until after the hearing.
30.22    (c) (b) Reasons for revocation or suspension of registration or approval may be
30.23for one or more of the following reasons:
30.24    (1) violating the provisions of sections 136A.61 to 136A.71;
30.25    (2) providing false, misleading, or incomplete information to the office;
30.26    (3) presenting information about the school which is false, fraudulent, misleading,
30.27deceptive, or inaccurate in a material respect to students or prospective students; or
30.28    (4) refusing to allow reasonable inspection or to supply reasonable information after
30.29a written request by the office has been received.
30.30    (c) Any order refusing, revoking, or suspending a school's registration, approval of a
30.31school's degree, or use of a regulated term in the school's name is appealable in accordance
30.32with chapter 14. The request must be in writing and made to the office within 30 days of the
30.33date the school is notified of the action of the office. If a school has been operating and its
30.34registration has been revoked, suspended, or refused by the office, the order is not effective
30.35until the final determination of the appeal, unless immediate effect is ordered by the court.

31.1    Sec. 15. Minnesota Statutes 2012, section 136A.653, is amended by adding a
31.2subdivision to read:
31.3    Subd. 3a. Tuition-free educational courses. A school, including a school using an
31.4online platform service, offering training, courses, or programs is exempt from sections
31.5136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota.
31.6A course will be considered tuition-free if the school charges no tuition and the required
31.7fees and other required charges paid by the student for the course do not exceed two
31.8percent of the most recent average undergraduate tuition and required fees as of January
31.91 of the current year charged for full-time students at all degree-granting institutions as
31.10published annually by the United States Department of Education as of January 1 of each
31.11year. To qualify for an exemption a school or online platform service must prominently
31.12display a notice comparable to the following: "IMPORTANT: Each educational institution
31.13makes its own decision regarding whether to accept completed coursework for credit.
31.14Check with your university or college."

31.15    Sec. 16. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:
31.16    Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor,
31.17a vice-chancellor, or a president, containing terms and conditions of employment. The
31.18terms of the contract must be authorized under a plan approved under section 43A.18,
31.19subdivision 3a
.
31.20(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
31.21contract under this section may provide a liquidated salary amount or other compensation
31.22if a contract is terminated by the board prior to its expiration.
31.23(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
31.24this section may contain a deferred compensation plan made in conformance with section
31.25457(f) of the Internal Revenue Code.
31.26(d) Notwithstanding any provision of the plan approved under section 43A.18,
31.27subdivision 3a, a contract under this section must not authorize or otherwise provide for a
31.28discretionary or mandatory bonus or other performance-based incentive payment.
31.29EFFECTIVE DATE.This section is effective the day following final enactment
31.30and applies to contracts entered into on or after that date.

31.31    Sec. 17. [136F.99] STATEWIDE ELECTRONIC INFRASTRUCTURE;
31.32PORTFOLIO SOLUTIONS.
31.33    Subdivision 1. Collaborative infrastructure. (a) The Department of Employment
31.34and Economic Development, the Department of Education, the Office of Higher
32.1Education, the University of Minnesota, and the Minnesota State Colleges and Universities
32.2shall collaborate to implement an electronic infrastructure to support academic and
32.3workforce success statewide. The infrastructure shall first utilize existing assets, tools, and
32.4services, including but not limited to efolioMinnesota and GPS LifePlan. To facilitate
32.5implementation of this section, the Board of Trustees of the Minnesota State Colleges and
32.6Universities shall support efolioMinnesota and GPS LifePlan until at least June 30, 2015.
32.7(b) To the extent possible, the basic electronic infrastructure shall be available at no
32.8charge to all state residents and to all students attending Minnesota educational institutions.
32.9    Subd. 2. Goals; programs. The Board of Trustees of the Minnesota State Colleges
32.10and Universities may enhance the efolioMinnesota platform to allow, at a minimum,
32.11implementation of:
32.12(1) a portfolio-based individual learning plan solution that includes comprehensive
32.13academic and life planning instruments, to support student transitions to postsecondary
32.14school or to work; and
32.15(2) a student-owned proficiency portfolio solution to support student transitions to
32.16the workplace and employers seeking first-day-work-ready employees.
32.17    Subd. 3. Resources; accountability reports. (a) The Board of Trustees of the
32.18Minnesota State Colleges and Universities may seek and accept contributions from
32.19individuals, businesses, and other organizations to support the goals required by this
32.20section. The parties listed in subdivision 1 are not required to contribute. All contributions
32.21received are appropriated to the Board of Trustees of the Minnesota State Colleges and
32.22Universities and shall be administered as directed by the Board of Trustees.
32.23(b) The Board of Trustees of the Minnesota State Colleges and Universities shall
32.24submit, no later than January 15 of each year, a report to the governor and legislature on
32.25the progress of the Minnesota State Colleges and Universities system's activities related to
32.26implementation of this section.
32.27EFFECTIVE DATE.This section is effective the day following final enactment.

32.28    Sec. 18. Minnesota Statutes 2012, section 137.027, is amended to read:
32.29137.027 APPROPRIATION; FRINGE BENEFITS.
32.30(a) Direct appropriations to the University of Minnesota include money to pay
32.31the employer's share of Social Security, state retirement, and health insurance. Money
32.32provided for these purposes shall be expended only for these purposes and any amounts in
32.33excess of the employer's share shall be returned to the state treasury.
33.1(b) Unless otherwise explicitly provided for in law, direct appropriations to the
33.2University of Minnesota do not include, and may not be used to pay, any mandatory or
33.3discretionary bonus or other performance-based incentive payment provided for in an
33.4employment contract with the president or vice-presidents, chancellors, provosts, vice
33.5provosts, deans, or directors of individual programs.

33.6    Sec. 19. [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
33.7ECONOMY FUNDING PROGRAM.
33.8    Subdivision 1. Establishment. (a) The Minnesota Discovery, Research, and
33.9InnoVation Economy (MnDRIVE) funding program is established to discover new
33.10knowledge through scientific research that will:
33.11(1) advance the state's economy;
33.12(2) leverage opportunities and establish priorities in sectors of state strength and
33.13comparative advantage;
33.14(3) improve the health and wellbeing of Minnesota's citizens;
33.15(4) advance the capacity and competitiveness of existing and emerging food- and
33.16manufacturing-related science and technology industries; and
33.17(5) build a better Minnesota by driving progress and advancing the common good.
33.18(b) The MnDRIVE funding program shall establish priorities by investing in
33.19scientific research that promotes:
33.20(1) programs that can position Minnesota as a leader in engineering, science,
33.21technology, and food-related solutions;
33.22(2) initiatives that support the growth of targeted industry clusters and the
33.23competitiveness of existing Minnesota engineering, science, technology, and food
33.24companies in developing new products and services;
33.25(3) initiatives that can result in creating new Minnesota-based companies;
33.26(4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
33.27the incidence of disease, and transform how we prevent, treat, and cure diseases; and
33.28(5) initiatives that can secure a safer environment, seek sustainable energy solutions,
33.29and prevent, diagnose, and treat environmental problems associated with Minnesota
33.30industry.
33.31    Subd. 2. Funding requests. The Board of Regents of the University of Minnesota,
33.32acting alone or in partnership with other public or private entities, is requested to submit
33.33investment proposals consistent with the goals and objectives of the MnDRIVE funding
33.34program as part of the Board of Regents biennial budget request to the legislature. The
33.35Board of Regents must give consideration to investments in existing scientific research
34.1programs that meet these guidelines but may require additional resources in order to
34.2preserve or accelerate Minnesota into a national or global leadership position. The
34.3governor shall submit a recommendation to the legislature regarding funding requests
34.4submitted by the Board of Regents.
34.5    Subd. 3. Reporting. By March 1 of each odd-numbered year, the Board of Regents
34.6of the University of Minnesota must provide to the chairs and ranking minority members
34.7of the legislative committees with primary jurisdiction over higher education policy and
34.8finance a summary report of investments and accomplishments related to funds received
34.9from the state under subdivision 2 from the prior biennium.
34.10EFFECTIVE DATE.This section is effective the day following final enactment.

34.11    Sec. 20. Minnesota Statutes 2012, section 141.35, is amended to read:
34.12141.35 EXEMPTIONS.
34.13    Sections 141.21 to 141.32 shall not apply to the following:
34.14    (1) public postsecondary institutions;
34.15    (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
34.16    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
34.17public board of another state or foreign country;
34.18    (4) private schools complying with the requirements of section 120A.22, subdivision
34.194
;
34.20    (5) courses taught to students in a valid apprenticeship program taught by or
34.21required by a trade union;
34.22    (6) schools exclusively engaged in training physically or mentally disabled persons
34.23for the state of Minnesota;
34.24    (7) schools licensed by boards authorized under Minnesota law to issue licenses
34.25except schools required to obtain a private career school license due to the use of
34.26"academy," "institute," "college," or "university" in their names;
34.27    (8) schools and educational programs, or training programs, contracted for by
34.28persons, firms, corporations, government agencies, or associations, for the training of their
34.29own employees, for which no fee is charged the employee;
34.30    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
34.31or remedial subjects as determined by the office except schools required to obtain a private
34.32career school license due to the use of "academy," "institute," "college," or "university" in
34.33their names unless the school used "academy" or "institute" in its name prior to August
34.341, 2008;
35.1    (10) classes, courses, or programs conducted by a bona fide trade, professional, or
35.2fraternal organization, solely for that organization's membership;
35.3    (11) programs in the fine arts provided by organizations exempt from taxation
35.4under section 290.05 and registered with the attorney general under chapter 309. For
35.5the purposes of this clause, "fine arts" means activities resulting in artistic creation or
35.6artistic performance of works of the imagination which are engaged in for the primary
35.7purpose of creative expression rather than commercial sale or employment. In making
35.8this determination the office may seek the advice and recommendation of the Minnesota
35.9Board of the Arts;
35.10    (12) classes, courses, or programs intended to fulfill the continuing education
35.11requirements for licensure or certification in a profession, that have been approved by a
35.12legislatively or judicially established board or agency responsible for regulating the practice
35.13of the profession, and that are offered exclusively to an individual practicing the profession;
35.14    (13) classes, courses, or programs intended to prepare students to sit for
35.15undergraduate, graduate, postgraduate, or occupational licensing and occupational
35.16entrance examinations;
35.17    (14) classes, courses, or programs providing 16 or fewer clock hours of instruction
35.18that are not part of the curriculum for an occupation or entry level employment except
35.19schools required to obtain a private career school license due to the use of "academy,"
35.20"institute," "college," or "university" in their names;
35.21    (15) classes, courses, or programs providing instruction in personal development,
35.22modeling, or acting;
35.23    (16) training or instructional programs, in which one instructor teaches an individual
35.24student, that are not part of the curriculum for an occupation or are not intended to prepare
35.25a person for entry level employment; and
35.26    (17) schools with no physical presence in Minnesota, as determined by the office,
35.27engaged exclusively in offering distance instruction that are located in and regulated by
35.28other states or jurisdictions; and
35.29    (18) schools providing exclusively training, instructional programs, or courses
35.30where tuition, fees, and any other charges for a student to participate do not exceed $100.

35.31    Sec. 21. Minnesota Statutes 2012, section 197.775, subdivision 1, is amended to read:
35.32    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
35.33section.
35.34(b) "Commissioner" means the commissioner of veterans affairs.
36.1(c) "State college or university" means a unit of the University of Minnesota or
36.2Minnesota State Colleges and Universities.
36.3(d) "Veteran" includes the definition provided in section 197.447, and also includes
36.4any person serving in active service, as defined in section 190.05, subdivision 5.

36.5    Sec. 22. Minnesota Statutes 2012, section 197.775, subdivision 2, is amended to read:
36.6    Subd. 2. Recognition of courses. (a) Minnesota State Colleges and Universities
36.7must recognize courses and award educational credits for courses that were part of a
36.8veteran's military training or service if the courses meet the standards of the American
36.9Council on Education or equivalent standards for awarding academic credits. In
36.10recognizing courses and awarding educational credits, consideration must be given to
36.11academic skills developed in all aspects of the training or service course curriculum, and
36.12may not be limited solely to the physical fitness or activity components of the course.
36.13(b) The University of Minnesota and private colleges and universities in Minnesota
36.14are encouraged to recognize courses and award educational credits for courses that were
36.15part of a veteran's military training or service if the courses meet the standards of the
36.16American Council on Education or equivalent standards for awarding academic credits.
36.17 In recognizing courses and awarding educational credits, the University of Minnesota
36.18and private colleges and universities in Minnesota are encouraged to consider academic
36.19skills developed in all aspects of the training or service course curriculum, and not limit
36.20consideration solely to the physical fitness or activity components of the course.

36.21    Sec. 23. Minnesota Statutes 2012, section 197.775, is amended by adding a subdivision
36.22to read:
36.23    Subd. 2a. Recognition of veteran status. (a) With the policy in this subdivision,
36.24the state recognizes veterans' selfless sacrifices in service to our nation, and their varied
36.25and specialized military education and training, as well as the need for their timely and
36.26meaningful reintegration into civilian society. The state also recognizes the special value
36.27of veterans in furthering the goal of creating a diverse student population in the state's
36.28postsecondary institutions.
36.29(b) Minnesota State Colleges and Universities must adopt a policy recognizing,
36.30for applicants who are veterans, the applicant's veteran status as a positive factor in
36.31determining whether to grant admission to a graduate or professional academic degree
36.32program. The Board of Trustees must report to the chairs and ranking minority members
36.33of the legislative committees and divisions with jurisdiction over higher education policy
37.1and finance annually by February 15 on the number of veterans who apply for a graduate
37.2or professional academic degree program and the number accepted.
37.3(c) The University of Minnesota, and private colleges and universities in Minnesota,
37.4are encouraged to adopt a policy recognizing, for applicants who are veterans, the
37.5applicant's veteran status as a positive factor in determining whether to grant admission to
37.6an undergraduate, graduate, or professional academic degree program.

37.7    Sec. 24. Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:
37.8    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
37.9from any person under the administration of the Minnesota Unemployment Insurance Law
37.10are private data on individuals or nonpublic data not on individuals as defined in section
37.1113.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
37.12order or section 13.05. A subpoena is not considered a district court order. These data
37.13may be disseminated to and used by the following agencies without the consent of the
37.14subject of the data:
37.15    (1) state and federal agencies specifically authorized access to the data by state
37.16or federal law;
37.17    (2) any agency of any other state or any federal agency charged with the
37.18administration of an unemployment insurance program;
37.19    (3) any agency responsible for the maintenance of a system of public employment
37.20offices for the purpose of assisting individuals in obtaining employment;
37.21    (4) the public authority responsible for child support in Minnesota or any other
37.22state in accordance with section 256.978;
37.23    (5) human rights agencies within Minnesota that have enforcement powers;
37.24    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
37.25laws;
37.26    (7) public and private agencies responsible for administering publicly financed
37.27assistance programs for the purpose of monitoring the eligibility of the program's recipients;
37.28    (8) the Department of Labor and Industry and the Division of Insurance Fraud
37.29Prevention in the Department of Commerce for uses consistent with the administration of
37.30their duties under Minnesota law;
37.31    (9) local and state welfare agencies for monitoring the eligibility of the data subject
37.32for assistance programs, or for any employment or training program administered by those
37.33agencies, whether alone, in combination with another welfare agency, or in conjunction
37.34with the department or to monitor and evaluate the statewide Minnesota family investment
37.35program by providing data on recipients and former recipients of food stamps or food
38.1support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
38.2under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
38.3    (10) local and state welfare agencies for the purpose of identifying employment,
38.4wages, and other information to assist in the collection of an overpayment debt in an
38.5assistance program;
38.6    (11) local, state, and federal law enforcement agencies for the purpose of ascertaining
38.7the last known address and employment location of an individual who is the subject of
38.8a criminal investigation;
38.9    (12) the United States Immigration and Customs Enforcement has access to data on
38.10specific individuals and specific employers provided the specific individual or specific
38.11employer is the subject of an investigation by that agency;
38.12    (13) the Department of Health for the purposes of epidemiologic investigations;
38.13    (14) the Department of Corrections for the purpose of preconfinement and
38.14postconfinement employment tracking of committed offenders for the purpose of case
38.15planning; and
38.16    (15) the state auditor to the extent necessary to conduct audits of job opportunity
38.17building zones as required under section 469.3201.; and
38.18    (16) the Office of Higher Education for purposes of supporting program
38.19improvement, system evaluation, and research initiatives including the Statewide
38.20Longitudinal Education Data System.
38.21    (b) Data on individuals and employers that are collected, maintained, or used by
38.22the department in an investigation under section 268.182 are confidential as to data
38.23on individuals and protected nonpublic data not on individuals as defined in section
38.2413.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
38.25court order or to a party named in a criminal proceeding, administrative or judicial, for
38.26preparation of a defense.
38.27    (c) Data gathered by the department in the administration of the Minnesota
38.28unemployment insurance program must not be made the subject or the basis for any
38.29suit in any civil proceedings, administrative or judicial, unless the action is initiated by
38.30the department.

38.31    Sec. 25. Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:
38.32    Subd. 4. Renewal. Each award must be given for one academic year and is
38.33renewable for a maximum of eight semesters or the equivalent. A student who withdraws
38.34from enrollment for active military service or for a major illness, while under the care
38.35of a medical professional, that substantially limits the student's ability to complete the
39.1term is entitled to an additional semester or the equivalent of grant eligibility. An award
39.2must not be given to a dependent child who is 23 years of age or older on the first day of
39.3the academic year.

39.4    Sec. 26. HIGHER EDUCATION INSTITUTIONAL PARTICIPATION IN
39.5STATE STUDENT AID PROGRAMS; REPORT.
39.6The Minnesota Office of Higher Education must report by February 1, 2014, to the
39.7chairs and ranking minority members of the legislative committees and divisions with
39.8the primary jurisdiction over higher education finance on the available and appropriate
39.9data that should be used as statutory criteria to determine whether a higher education
39.10institution should be allowed to participate in state financial aid programs. Among other
39.11data, the data could include an institution's completion/graduation rates, student debt to
39.12income ratios, and employment rates related to field of study. The office must consult
39.13regularly with the higher education finance committees or divisions about the purpose
39.14and content of the report.

39.15    Sec. 27. UNIVERSITY OF MINNESOTA REPORTS.
39.16    Subdivision 1. Medical school capacity. The Board of Regents of the University
39.17of Minnesota must report, by November 1, 2013, to the legislative committees and
39.18divisions with primary jurisdiction over higher education finance and policy the following
39.19information with respect to its medical schools:
39.20(1) the number of applicants seeking admission to the school for the academic term
39.21commencing in the fall of 2013 and the number admitted;
39.22(2) the number of applicants admitted to the school for each of the fall academic
39.23terms commencing between 2000 and 2012;
39.24(3) the number of school graduates projected for each of the next ten years;
39.25(4) the number of school graduates projected to remain and practice in Minnesota
39.26after graduation for each of the next ten years; and
39.27(5) plans of the university to increase the capacity of the school.
39.28The report must include the most recent and accepted analysis concerning the need
39.29for physicians in Minnesota in the future, including time frames of the next five, ten, 15,
39.30and 20 years. The need must be stated in aggregate and in specialty practice areas.
39.31    Subd. 2. STEM programs. The Board of Regents of the University of Minnesota
39.32must report, by November 1, 2013, to the legislative committees and divisions with
39.33primary jurisdiction over higher education finance and policy with respect to its
40.1undergraduate science, technology, engineering, and mathematics programs on the Twin
40.2Cities campus the following information:
40.3(1) the number of applicants seeking admission to those programs for the academic
40.4term commencing in the fall of 2013 and the number admitted;
40.5(2) the percentage of students that graduate from the programs who remain in
40.6Minnesota both historically and projected into the future; and
40.7(3) plans to expand the capacity of the programs.
40.8The report must include the most recent and accepted analysis of the projected
40.9need of employers within the state for graduates of science, technology, engineering, and
40.10mathematics programs in the future, including times frames of five, ten, 15, and 20 years.
40.11    Subd. 3. University administrative costs. (a) The Board of Regents of the
40.12University of Minnesota must, within 45 days of its receipt of the report or study, provide
40.13to the chairs and ranking minority members of the legislative committees and divisions
40.14with jurisdiction over higher education finance, a report currently expected to be received
40.15by the university in July 2013, concerning what is commonly known as a spans and
40.16layers analysis by Sibson Consulting and an administrative services benchmarking and
40.17diagnostic study expected to be done in May 2013, by Huron Consulting.
40.18(b) The Board of Regents of the University of Minnesota must provide to the chairs
40.19and ranking minority members of the legislative committees with jurisdiction over higher
40.20education finance a plan to lower its overall costs based on its work with Huron Consulting
40.21concerning administrative services benchmarking and diagnostic study within 90 days
40.22of its receipt of the final report from Huron Consulting. The board must periodically
40.23update the committees and minority members on the progress of the analysis and any
40.24preliminary findings or recommendations.

40.25    Sec. 28. MENTAL HEALTH ISSUES SUMMIT.
40.26The Board of Trustees of the Minnesota State Colleges and Universities, in
40.27cooperation with the commissioner of human services, shall convene a summit of
40.28representatives of the Minnesota State Colleges and Universities, the University of
40.29Minnesota, private colleges, mental health professionals, special education representatives,
40.30children and adult mental health advocates and providers, and community mental health
40.31centers. The summit shall develop a comprehensive workforce development plan to:
40.32(1) increase the number of mental health professionals and practitioners;
40.33(2) ensure appropriate course work and training experience; and
40.34(3) increase the number of culturally diverse mental health professionals and
40.35practitioners.
41.1The plan required by this section shall be submitted to the chairs and ranking minority
41.2members of the legislative committees responsible for health and human services policy
41.3and higher education policy no later than January 15, 2015.
41.4EFFECTIVE DATE.This section is effective the day following final enactment.

41.5    Sec. 29. REVISOR'S INSTRUCTION.
41.6The revisor of statutes shall change the term "director" as it relates to the director
41.7of the Minnesota Office of Higher Education to "commissioner" wherever in Minnesota
41.8Statutes or Minnesota Rules the term appears.

41.9    Sec. 30. REPEALER.
41.10Minnesota Statutes 2012, sections 136A.031, subdivision 2; and 136A.121,
41.11subdivision 9b, are repealed.

41.12ARTICLE 3
41.13STATE GRANT

41.14    Section 1. Minnesota Statutes 2012, section 136A.101, subdivision 5a, is amended to
41.15read:
41.16    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means
41.17the amount of a family's contribution to a student's cost of attendance, as determined by a
41.18federal need analysis. For dependent students, the assigned family responsibility is 96
41.19percent of the parental contribution. For independent students with dependents other than
41.20a spouse, the assigned family responsibility is 86 percent of the student contribution.
41.21For independent students without dependents other than a spouse, the assigned family
41.22responsibility is 68 50 percent of the student contribution.

41.23    Sec. 2. Minnesota Statutes 2012, section 136A.121, subdivision 5, is amended to read:
41.24    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
41.25responsibility for covering the recognized cost of attendance by the applicant, the
41.26applicant's family, and the government. The amount of a financial stipend must not
41.27exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
41.28deducting the following:
41.29(1) the assigned student responsibility of at least 46 50 percent of the cost of
41.30attending the institution of the applicant's choosing;
41.31(2) the assigned family responsibility as defined in section 136A.101; and
41.32(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
42.1The minimum financial stipend is $100 per academic year.

42.2    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
42.3EXPENSE ALLOWANCE.
42.4(a) For the purposes of the state grant program under Minnesota Statutes, section
42.5136A.121, for the biennium ending June 30, 2015, the tuition maximum is $13,000 each
42.6fiscal year of the biennium for students in four-year programs, and $5,808 in each fiscal
42.7year of the biennium for students in two-year programs.
42.8(b) The living and miscellaneous expense allowance for the state grant program
42.9under Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set
42.10at $7,900 for each fiscal year of the biennium.

42.11    Sec. 4. STATE GRANT AWARD CALCULATION; MNSCU PART-TIME
42.12STUDENTS.
42.13(a) State grant awards under Minnesota Statutes, section 136A.121, for the biennium
42.14ending June 30, 2015, made from appropriations for that biennium for part-time students
42.15attending a Minnesota state college and university system institution shall be modified
42.16as provided by this section. All other provisions of law and rule applying to state grant
42.17awards not inconsistent with this section shall apply to awards to those part-time students.
42.18(b) For a student registering for less than full-time, the assigned family responsibility
42.19is the amount determined for a full-time student under Minnesota Statutes, section
42.20136A.101, subdivision 5a, prorated by the percent of full-time for which a student is
42.21enrolled.

42.22ARTICLE 4
42.23PROSPERITY ACT

42.24    Section 1. [135A.043] RESIDENT TUITION.
42.25(a) A student, other than a nonimmigrant alien within the meaning of United States
42.26Code, title 8, section 1101, subsection (a), paragraph (15), shall qualify for a resident
42.27tuition rate or its equivalent at state universities and colleges if the student meets all of the
42.28following requirements:
42.29(1) high school attendance within the state for three or more years;
42.30(2) graduation from a state high school or attainment within the state of the
42.31equivalent of high school graduation; and
42.32(3) in the case of a student without lawful immigration status: (i) documentation
42.33that the student has complied with selective service registration requirements; and (ii) if a
43.1federal process exists for the student to obtain lawful immigration status the student must
43.2present the higher education institution with documentation from federal immigration
43.3authorities that the student has filed an application to obtain lawful immigration status.
43.4(b) This section is in addition to any other statute, rule, or higher education
43.5institution regulation or policy providing eligibility for a resident tuition rate or its
43.6equivalent to a student.
43.7(c) The Board of Regents of the University of Minnesota is requested to adopt a
43.8policy implementing this section.
43.9EFFECTIVE DATE.This section is effective July 1, 2013, and applies to tuition
43.10for school terms commencing on or after July 1, 2013.

43.11    Sec. 2. [135A.044] PRIVATE SCHOLARSHIP AID.
43.12A public postsecondary institution may use private sources of funding to provide aid
43.13to a student eligible for resident tuition under section 135A.043. This section is in addition
43.14to any other authority of an institution to provide financial aid.
43.15EFFECTIVE DATE.This section is effective July 1, 2013, and applies to financial
43.16aid for school terms commencing on or after July 1, 2013.

43.17    Sec. 3. Minnesota Statutes 2012, section 136A.101, subdivision 8, is amended to read:
43.18    Subd. 8. Resident student. "Resident student" means a student who meets one of
43.19the following conditions:
43.20    (1) a student who has resided in Minnesota for purposes other than postsecondary
43.21education for at least 12 months without being enrolled at a postsecondary educational
43.22institution for more than five credits in any term;
43.23    (2) a dependent student whose parent or legal guardian resides in Minnesota at the
43.24time the student applies;
43.25    (3) a student who graduated from a Minnesota high school, if the student was a
43.26resident of Minnesota during the student's period of attendance at the Minnesota high school
43.27and the student is physically attending a Minnesota postsecondary educational institution;
43.28    (4) a student who, after residing in the state for a minimum of one year, earned a
43.29high school equivalency certificate in Minnesota;
43.30    (5) a member, spouse, or dependent of a member of the armed forces of the United
43.31States stationed in Minnesota on active federal military service as defined in section
43.32190.05 , subdivision 5c;
44.1    (6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
44.2is a Minnesota resident;
44.3    (7) a person or spouse of a person who relocated to Minnesota from an area that
44.4is declared a presidential disaster area within the preceding 12 months if the disaster
44.5interrupted the person's postsecondary education; or
44.6    (8) a person defined as a refugee under United States Code, title 8, section
44.71101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
44.8continued to reside in Minnesota; or
44.9    (9) a student eligible for resident tuition under section 135A.043.
44.10EFFECTIVE DATE.This section is effective July 1, 2013, and applies to school
44.11terms commencing on or after July 1, 2013.

44.12    Sec. 4. REPEALER.
44.13Minnesota Rules, part 4830.0100, subpart 5, item F, is repealed.
44.14EFFECTIVE DATE.This section is effective July 1, 2013."
44.15Delete the title and insert:
44.16"A bill for an act
44.17relating to education; postsecondary; establishing a budget for higher education;
44.18appropriating money to the Office of Higher Education, the Board of Trustees
44.19of the Minnesota State Colleges and Universities, the Board of Regents of the
44.20University of Minnesota, and the Mayo Clinic; appropriating money for tuition
44.21relief; providing for the treatment of undocumented immigrants with respect to
44.22financial aid and tuition; regulating bonus payments; establishing the Minnesota
44.23Discovery, Research, and InnoVation Economy funding program; modifying
44.24provisions related to grants, awards, and aid, school registration, and licensure;
44.25requiring certain information to be provided in higher education budget
44.26proposals; making changes to the state grant program; establishing procedure
44.27for cancellation of required surety bond; repealing Higher Education Advisory
44.28Council; requiring a higher education mental health summit; creating a tribal
44.29college supplemental grant assistance program; recognizing veteran's experience
44.30and training for various higher education purposes; providing statewide electronic
44.31infrastructure; requiring reports;amending Minnesota Statutes 2012, sections
44.3213.47, subdivision 3; 127A.70, subdivision 2; 135A.031, subdivision 7; 135A.61;
44.33136A.101, subdivisions 3, 5a, 8, 9; 136A.121, subdivision 5, by adding a
44.34subdivision; 136A.125, subdivisions 2, 4; 136A.233, subdivision 2; 136A.62, by
44.35adding a subdivision; 136A.646; 136A.65, subdivision 8; 136A.653, by adding
44.36a subdivision; 136F.40, subdivision 2; 137.027; 141.35; 197.775, subdivisions
44.371, 2, by adding a subdivision; 268.19, subdivision 1; 299A.45, subdivision 4;
44.38proposing coding for new law in Minnesota Statutes, chapters 135A; 136A;
44.39136F; 137; repealing Minnesota Statutes 2012, sections 136A.031, subdivision 2;
44.40136A.121, subdivision 9b; Minnesota Rules, part 4830.0100, subpart 5, item F."
45.1
We request the adoption of this report and repassage of the bill.
45.2
Senate Conferees:
45.3
.....
.....
45.4
Terri E. Bonoff
Greg D. Clausen
45.5
.....
.....
45.6
Jeremy R. Miller
Sandra L. Pappas
45.7
.....
45.8
Kent Eken
45.9
House Conferees:
45.10
.....
.....
45.11
Gene Pelowski Jr.
Ryan Winkler
45.12
.....
.....
45.13
Paul Rosenthal
Zachary Dorholt
45.14
.....
45.15
Bud Nornes