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SF 2083

1st Unofficial Engrossment - 86th Legislature (2009 - 2010) Posted on 12/26/2012 11:17pm

KEY: stricken = removed, old language.
underscored = added, new language.
1.1A bill for an act
1.2relating to higher education; amending higher education provisions; establishing
1.3and modifying certain grants and programs; making technical changes; regulating
1.4certain activities and practices; establishing and amending certain scholarships;
1.5providing a tuition guarantee; regulating board member and trustee nominations
1.6and elections; requiring a certificate of need; defining terms; requiring a report;
1.7appropriating money;amending Minnesota Statutes 2008, sections 135A.08,
1.8subdivision 1; 135A.25, subdivision 4; 136A.06; 136A.08, subdivision 1, by
1.9adding a subdivision; 136A.101, subdivision 4; 136A.121, subdivisions 5, 6, 9;
1.10136A.1701, subdivision 10; 136F.02, subdivision 1; 136F.04; 136F.045; 136F.46,
1.11subdivision 3; 137.0246, subdivision 2; 137.025, subdivision 1; 179A.03,
1.12subdivision 14; 299A.45, subdivision 4; 340A.404, subdivision 4a; proposing
1.13coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 137;
1.14repealing Minnesota Statutes 2008, sections 136A.127; 136F.03; 137.0245.
1.15BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16ARTICLE 1
1.17HIGHER EDUCATION APPROPRIATIONS

1.18
Section 1. SUMMARY OF APPROPRIATIONS.
1.19    Subdivision 1. Summary by fund. The amounts shown in this section summarize
1.20direct appropriations, by fund, made in this article.
1.21
2010
2011
Total
1.22
General
$
1,388,543,000
$
1,383,285,000
$
2,771,828,000
1.23
Health Care Access
2,157,000
2,157,000
4,314,000
1.24
Federal Stabilization
180,920,000
180,920,000
361,840,000
1.25
Total
$
1,571,620,000
$
1,566,362,000
$
3,137,982,000
1.26    Subd. 2. Summary by agency - all funds. The amounts shown in this subdivision
1.27summarize direct appropriations, by agency, made in this article.
2.1
2010
2011
Total
2.2
2.3
Minnesota Office of Higher
Education
$
195,358,000
$
190,049,000
$
385,407,000
2.4
2.5
2.6
Board of Trustees of the
Minnesota State Colleges and
Universities
665,883,000
665,883,000
1,331,766,000
2.7
2.8
Board of Regents of the
University of Minnesota
709,079,000
709,079,000
1,418,158,000
2.9
Mayo Medical Foundation
1,300,000
1,351,000
2,651,000
2.10
Total
$
1,571,620,000
$
1,566,362,000
$
3,137,982,000

2.11
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.12    The sums shown in the columns marked "Appropriations" are appropriated to the
2.13agencies and for the purposes specified in this article. The appropriations are from the
2.14general fund, or another named fund, and are available for the fiscal years indicated
2.15for each purpose. The figures "2010" and "2011" used in this article mean that the
2.16appropriations listed under them are available for the fiscal year ending June 30, 2010, or
2.17June 30, 2011, respectively. "The first year" is fiscal year 2010. "The second year" is fiscal
2.18year 2011. "The biennium" is fiscal years 2010 and 2011.
2.19
APPROPRIATIONS
2.20
Available for the Year
2.21
Ending June 30
2.22
2010
2011

2.23
2.24
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
2.25
Subdivision 1.Total Appropriation
$
195,358,000
$
190,049,000
2.26The amounts that may be spent for each
2.27purpose are specified in the following
2.28subdivisions.
2.29
Subd. 2.State Grants
149,721,000
144,618,000
2.30If the appropriation in this subdivision for
2.31either year is insufficient, the appropriation
2.32for the other year is available for it.
2.33The legislature intends that the Office of
2.34Higher Education make full grant awards in
2.35each year of the biennium.
3.1For the biennium, the tuition maximum for
3.2students in four-year programs is $9,938 in
3.3each year.
3.4This appropriation sets the living and
3.5miscellaneous expense allowance at $6,900
3.6each year.
3.7
Subd. 3.Safety Officers' Survivors
100,000
100,000
3.8This appropriation is to provide educational
3.9benefits under Minnesota Statutes, section
3.10299A.45, to dependent children under age 23
3.11and to the spouses of public safety officers
3.12killed in the line of duty.
3.13If the appropriation in this subdivision for
3.14either year is insufficient, the appropriation
3.15for the other year is available for it.
3.16
Subd. 4.Interstate Tuition Reciprocity
2,750,000
2,750,000
3.17If the appropriation in this subdivision for
3.18either year is insufficient, the appropriation
3.19for the other year is available to meet
3.20reciprocity contract obligations.
3.21
Subd. 5.State Work Study
15,500,000
15,500,000
3.22
Subd. 6.Child Care Grants
6,675,000
6,675,000
3.23
Subd. 7.Indian Scholarships
2,375,000
2,375,000
3.24The director of the Minnesota Office of
3.25Higher Education must contract with at least
3.26one knowledgeable person residing in or
3.27near the city of Bemidji to assist students
3.28with the scholarships under Minnesota
3.29Statutes, section 136A.126, and with other
3.30information about financial aid for which
3.31the students may be eligible. Bemidji State
3.32University must provide office space at
3.33no cost to the Minnesota Office of Higher
4.1Education for purposes of administering the
4.2American Indian scholarship program under
4.3Minnesota Statutes, section 136A.126.
4.4
Subd. 8.Minitex
5,631,000
5,631,000
4.5
Subd. 9.MnLINK Gateway
400,000
400,000
4.6
Subd. 10.Learning Network of Minnesota
4,800,000
4,800,000
4.7
Subd. 11.Minnesota College Savings Plan
700,000
700,000
4.8
Subd. 12.Midwest Higher Education Compact
95,000
95,000
4.9
Subd. 13.Other Small Programs
853,000
853,000
4.10This appropriation includes funding for
4.11student and parent information, information
4.12for college attendance, and minority
4.13education programs.
4.14
Subd. 14.TEACH Program
300,000
300,000
4.15For the teacher education and compensation
4.16helps (TEACH) and the Minnesota early
4.17childhood teacher retention programs in
4.18Minnesota Statutes, section 136A.126. This
4.19is a onetime appropriation.
4.20
Subd. 15.Power of You
2,000,000
2,000,000
4.21For transfer to MnSCU for the existing
4.22Power of You program and for pilot sites
4.23under article 2, section 30.
4.24
4.25
Subd. 16.Technical and Community College
Emergency Grants
100,000
100,000
4.26For transfer to the financial aid offices
4.27at each of the colleges of the Minnesota
4.28State Colleges and Universities to provide
4.29emergency aid grants to technical and
4.30community college students who are
4.31experiencing extraordinary economic
4.32circumstances that may result in the students
5.1dropping out of school without completing
5.2the term or their program.
5.3
Subd. 17.Veterinary Loan Forgiveness
225,000
5.4For the large animal loan forgiveness
5.5program under Minnesota Statutes, section
5.6136A.1795. This appropriation is available
5.7until expended.
5.8
Subd. 18.Agency Administration
2,685,000
2,685,000
5.9
Subd. 19.Balances Forward
5.10A balance in the first year under this section
5.11does not cancel, but is available for the
5.12second year.
5.13
Subd. 20.Transfers
5.14The Minnesota Office of Higher Education
5.15may transfer unencumbered balances from
5.16the appropriations in subdivisions 2 to 7
5.17and 11 to the state grant appropriation, the
5.18safety officer survivors appropriation, the
5.19interstate tuition reciprocity appropriation,
5.20the Minnesota college savings plan
5.21appropriation, the child care appropriation,
5.22and the state work study appropriation.
5.23
5.24
Subd. 21.United Family Medicine Residency
Program
448,000
467,000
5.25For a grant to the united family medicine
5.26residency program. This appropriation
5.27must be used to support up to 18 resident
5.28physicians each year in family practice at
5.29united family medicine residency programs
5.30and must prepare doctors to practice family
5.31care medicine in underserved rural and
5.32urban areas of the state. At least seven
5.33of the resident physicians must be at a
5.34publicly owned rural hospital that has an
6.1attached nursing home. The legislature
6.2intends for this program to improve health
6.3care in underserved communities, provide
6.4affordable access to appropriate medical
6.5care, and manage the treatment of patients in
6.6a more cost-effective manner.
6.7
Subd. 22.TANF Work-Study
6.8Notwithstanding any rule to the contrary,
6.9work-study jobs funded by a TANF
6.10appropriation do not require employer
6.11matching funds.
6.12
Subd. 23.Reporting
6.13By November 1 and February 15, the
6.14Minnesota Office of Higher Education
6.15must provide updated state grant spending
6.16projections, taking into account the most
6.17current and projected enrollment and tuition
6.18and fee information, economic conditions,
6.19and other relevant factors. Before submitting
6.20state grant spending projections, the office
6.21must meet and consult with representatives of
6.22public and private postsecondary education,
6.23the Department of Finance, the governor's
6.24office, legislative staff, and financial aid
6.25administrators.
6.26
Subd. 24.Accreditation
6.27The office must work with small institutions
6.28to identify cost-effective methods to achieve
6.29accreditation necessary to be an eligible
6.30institution for state and federal financial aid.

6.31
6.32
6.33
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
6.34
Subdivision 1.Total Appropriation
$
665,883,000
$
665,883,000
7.1The amounts that may be spent for each
7.2purpose are specified in the following
7.3subdivisions.
7.4
7.5
Subd. 2.Central Office and Shared Services
Unit
47,328,000
47,328,000
7.6For the Office of the Chancellor and the
7.7Shared Services Division.
7.8For fiscal years 2012 and 2013 the base for
7.9the Central Office and Shared Services Unit
7.10is $44,823,000 each year.
7.11
Subd. 3.Operations and Maintenance
553,366,000
553,366,000
7.12(a) It is the intention of the legislature to
7.13increase the amount of funding distributed
7.14to colleges and universities through the
7.15allocation model to provide direct support of
7.16instruction and related functions necessary
7.17to protect the core mission of educating
7.18students.
7.19(b) Allocations to campuses from
7.20appropriations under this section must
7.21not be reduced below the allocations for
7.22the biennium ending June 30, 2009, after
7.23deducting any amount unallotted in the
7.24biennium.
7.25(c) The Board of Trustees shall submit
7.26expenditure reduction plans by March 15,
7.272010, to the committees of the legislature
7.28with responsibility for higher education
7.29finance to achieve the 2012-2013 base
7.30established in this section at the central
7.31office and at each institution. The plan
7.32submitted by the board must be based on
7.33plans developed at each institution detailing
7.34reductions to achieve lower base allocations
8.1at that institution. Each plan must focus on
8.2protecting direct instruction while reducing
8.3peripheral programs and services that may
8.4benefit students and institutions but are
8.5not necessary to the education of students
8.6seeking certificates, diplomas, and degrees.
8.7(d) During the biennium ending June 30,
8.82011, except for positions that are essential to
8.9the daily operation of an institution, the board
8.10must not fill administrative and managerial
8.11vacancies, existing on the effective date of
8.12this section, in the central office or at any
8.13of the campuses of the Minnesota State
8.14Colleges and Universities or use a search firm
8.15for any hiring. The board must not authorize
8.16any increase in salaries for administrative and
8.17managerial positions in the Minnesota State
8.18Colleges and Universities in the biennium
8.19ending June 30, 2011. The board must not
8.20charge any of the institutions for reductions
8.21under this section to the central office.
8.22(e) For the biennium ending June 30, 2011,
8.23the board must not reserve or expend
8.24appropriations under this subdivision for
8.25competitive salaries, awards of excellence,
8.26campus and technology initiatives outside the
8.27allocation model, or other board or chancellor
8.28initiatives. All amounts saved under this
8.29paragraph must be added to the allocation
8.30model and distributed to the institutions.
8.31(f) For the biennium ending June 30,
8.322011, expenditures under this subdivision
8.33must not exceed $40,000,000 for
8.34technology initiatives, including technology
8.35infrastructure improvements, and $5,000,000
9.1for initiatives to recruit and retain
9.2traditionally underrepresented students. All
9.3amounts saved under this paragraph must be
9.4added to the allocation model and distributed
9.5to the institutions.
9.6(g) $40,000 each year is for the Cook
9.7County Higher Education Board to provide
9.8educational programs and academic support
9.9services.
9.10(h) $1,000,000 each year is for the Northeast
9.11Minnesota Higher Education District and
9.12high schools in its area. Students from area
9.13high schools may also access the facilities
9.14and faculty of the Northeast Minnesota
9.15Higher Education District for state-of-the-art
9.16technical education opportunities, including
9.17MnSCU's 2+2 Pathways initiative.
9.18(i) $225,000 each year is to enhance eFolio
9.19Minnesota and for a center to provide on-site
9.20and Internet-based support and technical
9.21assistance to users of the state's eFolio
9.22Minnesota system to promote workforce and
9.23economic development and to enable access
9.24to workforce information generated through
9.25the eFolio Minnesota system.
9.26(j) For fiscal years 2012 and 2013 the base for
9.27operations and maintenance is $609,631,000
9.28each year.
9.29
Subd. 4.Federal Stimulus Appropriation
65,189,000
65,189,000
9.30(a) This appropriation is from the fiscal
9.31stabilization account in the federal fund and
9.32may be used for modernization, renovation,
9.33or repair of facilities that are primarily used
9.34for instruction, research, or student housing
9.35but may not be used for maintenance of
10.1systems, equipment, or facilities. Amounts
10.2in this subdivision must not be allocated
10.3to modernization, renovation, or repair of
10.4stadiums or other facilities primarily used
10.5for athletic contests or exhibitions or other
10.6events for which admission is charged to the
10.7general public and must not be allocated to
10.8any facility used for sectarian instruction or
10.9religious worship or in which a substantial
10.10portion of the functions of the facilities are
10.11subsumed in a religious mission. No amount
10.12from this appropriation may be allocated to
10.13increase endowment funds.
10.14(b) Appropriations under this subdivision
10.15must be used as a bridge for budget
10.16reductions in the biennium ending June 30,
10.172013, and may be used to retain faculty
10.18and staff jobs, to provide severance and for
10.19early retirement incentives, and to mitigate
10.20the rising costs of attendance through
10.21minimizing tuition increases and the support
10.22of student employment opportunities.
10.23(c) The legislature intends that the
10.24tuition increase for a Minnesota resident
10.25undergraduate student in the Minnesota State
10.26Colleges and Universities, must not exceed
10.27five percent per year for the biennium ending
10.28June 30, 2011. Federal stimulus money
10.29under this subdivision must be used to buy
10.30down the tuition increase to no more than
10.31two percent per year for these students.
10.32(d) An additional $3,469,000 is appropriated
10.33in fiscal year 2009 from the fiscal stabilization
10.34account in the federal fund.
10.35
Subd. 5.System Improvements
11.1To increase efficiencies and equity for
11.2faculty and staff, the Board of Trustees is
11.3encouraged to place a priority on identifying
11.4and implementing measures to improve
11.5the human resources system used by the
11.6Minnesota State Colleges and Universities.
11.7One of the goals of improving the human
11.8resources system is to provide seamless
11.9information on faculty and employees to
11.10facilitate transfers between institutions.

11.11
11.12
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
11.13
Subdivision 1.Total Appropriation
$
709,079,000
$
709,079,000
11.14The amounts that may be spent for each
11.15purpose are specified in the following
11.16subdivisions.
11.17
Subd. 2.Operations and Maintenance
517,623,000
517,623,000
11.18(a) In the biennium ending June 30, 2011, the
11.19board must not use appropriations under this
11.20section to create or fund new administrative
11.21positions at the University of Minnesota or to
11.22increase salaries for administrative positions.
11.23(b) Appropriations under this subdivision
11.24may be used for a new scholarship under
11.25Minnesota Statutes, section 137.0225, to
11.26complement the University's Founders
11.27scholarship.
11.28(c) This appropriation includes amounts for
11.29an Ojibwe Indian language program on the
11.30Duluth campus.
11.31(d) This appropriation includes money for the
11.32Dakota language teacher training immersion
11.33program on the Twin Cities campus to
12.1prepare teachers to teach in Dakota language
12.2immersion programs.
12.3(e) This appropriation includes $600,000
12.4each year for the Veterinary Diagnostic
12.5Laboratory.
12.6(f) For fiscal years 2012 and 2013, the
12.7base for operations and maintenance is
12.8$598,124,000 each year.
12.9
Subd. 3.Health Care Access Fund
2,157,000
2,157,000
12.10This appropriation is from the health care
12.11access fund and is for primary care education
12.12initiatives.
12.13
Subd. 4.Special Appropriation
73,468,000
73,468,000
12.14
(a) Agriculture and Extension Service
52,255,000
52,255,000
12.15(1) This appropriation is for agricultural
12.16research and extension activities as provided
12.17in this paragraph.
12.18(2) The Agricultural Experiment Stations
12.19and Minnesota Extension Service must
12.20convene agricultural advisory groups to
12.21focus research, education, and extension
12.22activities on producer needs and implement
12.23an outreach strategy that more effectively
12.24and rapidly transfers research results and best
12.25practices to producers throughout the state.
12.26(3) This appropriation includes funding
12.27for research efforts that demonstrate a
12.28renewed emphasis on the needs of the state's
12.29production agriculture community. The
12.30following areas should be prioritized and
12.31carried out in consultation with Minnesota
12.32producer organizations:
12.33(i) vegetable crop research;
13.1(ii) fertilizer and soil fertility research and
13.2development;
13.3(iii) soil, groundwater, and surface water
13.4conservation practices and contaminant
13.5reduction research;
13.6(iv) discovering and developing plant
13.7varieties that use nutrients more efficiently;
13.8(v) breeding and development of turf seed
13.9and other biomass resources in all three
13.10Minnesota biomes;
13.11(vi) development of new disease-resistant
13.12and pest-resistant varieties of turf and
13.13agronomic crops;
13.14(vii) utilizing plant and livestock cells to treat
13.15and cure human diseases;
13.16(viii) the development of dairy coproducts;
13.17(ix) a rapid agricultural response fund for
13.18current or emerging animal, plant, and insect
13.19problems affecting production or food safety;
13.20(x) crop pest and animal disease research;
13.21(xi) developing animal agriculture that is
13.22capable of sustainably feeding the world;
13.23(xii) consumer food safety education and
13.24outreach; and
13.25(xiii) programs to meet the research and
13.26outreach needs of sustainable and organic
13.27livestock and crop farmers.
13.28(4) This appropriation includes funding for
13.29research and outreach on the production of
13.30renewable energy from Minnesota biomass
13.31resources. The following areas should be
13.32prioritized and carried out in consultation
14.1with Minnesota producer and bioenergy
14.2organizations:
14.3(i) biofuel and other energy production from
14.4perennial crops, small grains, row crops,
14.5and forestry products in conjunction with
14.6the Natural Resources Research Institute
14.7(NRRI);
14.8(ii) alternative bioenergy crops and cropping
14.9systems; and
14.10(iii) biofuel coproducts used for livestock
14.11feed.
14.12(5) This appropriation includes funding
14.13for analysis of livestock facility siting and
14.14regulatory models from other states and
14.15countries and the following aspects of
14.16ethanol production in Minnesota:
14.17(i) water use trends as compared to other
14.18industries and activities;
14.19(ii) the carbon balance of ethanol production;
14.20(iii) the effect of ethanol blending
14.21requirements on transportation fuel prices;
14.22and
14.23(iv) the economic impacts of ethanol
14.24production and use including such measures
14.25as employment, economic output, and state
14.26and local tax revenues.
14.27(6) This appropriation may be used to
14.28establish and maintain a statewide organic
14.29research and education initiative, secure
14.30a facility and retain current faculty levels
14.31for poultry research currently conducted at
14.32UMore Park, develop and implement a dairy
14.33producer continuing education program
15.1and for scoping a new dairy research and
15.2teaching facility.
15.3(7) By February 1, 2011, the Board of
15.4Regents must submit a report to the
15.5legislative committees with responsibility
15.6for agriculture and higher education finance
15.7on the status and outcomes of research and
15.8initiatives funded in this section.
15.9
(b) Health Sciences
5,275,000
5,275,000
15.10$346,000 each year is to support up to 12
15.11resident physicians each year in the St.
15.12Cloud Hospital family practice residency
15.13program. The program must prepare doctors
15.14to practice primary care medicine in the rural
15.15areas of the state. The legislature intends for
15.16this program to improve health care in rural
15.17communities, provide affordable access to
15.18appropriate medical care, and manage the
15.19treatment of patients in a more cost-effective
15.20manner.
15.21The remainder of this appropriation is for
15.22the rural physicians associates program, the
15.23Veterinary Diagnostic Laboratory, health
15.24sciences research, dental care, and the
15.25Biomedical Engineering Center.
15.26
(c) Institute of Technology
1,387,000
1,387,000
15.27For the Geological Survey and the talented
15.28youth mathematics program.
15.29
(d) System Specials
6,551,000
6,551,000
15.30For general research, student loans matching
15.31money, industrial relations education,
15.32Natural Resources Research Institute, Center
15.33for Urban and Regional Affairs, and the Bell
15.34Museum of Natural History.
16.1
16.2
(e) University of Minnesota and Mayo
Foundation Partnership
8,000,000
8,000,000
16.3For the direct and indirect expenses of the
16.4collaborative research partnership between
16.5the University of Minnesota and the Mayo
16.6Foundation for research in biotechnology
16.7and medical genomics. This appropriation
16.8is available until expended. All parties to
16.9the partnership and chairs of the senate
16.10and house of representatives committees
16.11responsible for higher education finance
16.12must be consulted before the Board of
16.13Regents reduces the amount allocated to the
16.14partnership under this paragraph during the
16.15biennium ending June 30, 2011. An annual
16.16report on the expenditure of these funds must
16.17be submitted to the governor and the chairs
16.18of the senate and house of representatives
16.19committees responsible for higher education
16.20and economic development by June 30 of
16.21each fiscal year.
16.22
Subd. 5.Federal Stimulus Appropriation
115,731,000
115,731,000
16.23(a) This appropriation is from the fiscal
16.24stabilization account in the federal fund and
16.25may be used for modernization, renovation,
16.26or repair of facilities that are primarily used
16.27for instruction, research, or student housing
16.28but may not be used for maintenance of
16.29systems, equipment, or facilities. Amounts
16.30in this subdivision must not be allocated
16.31to modernization, renovation, or repair of
16.32stadiums or other facilities primarily used
16.33for athletic contests or exhibitions or other
16.34events for which admission is charged to the
16.35general public and must not be allocated to
17.1any facility used for sectarian instruction or
17.2religious worship or in which a substantial
17.3portion of the functions of the facilities are
17.4subsumed in a religious mission. No amount
17.5from this appropriation may be allocated to
17.6increase endowment funds.
17.7(b) Appropriations under this subdivision
17.8must be used as a bridge for budget
17.9reductions in the biennium ending June 30,
17.102013, and may be used to retain faculty and
17.11staff jobs, to provide severance and for early
17.12retirement incentives and to mitigate rising
17.13costs of attendance through minimizing
17.14tuition increases and support of student
17.15employment opportunities.
17.16(c) The legislature intends that the net
17.17tuition increase for a Minnesota resident
17.18undergraduate student at the University of
17.19Minnesota must not exceed $300 per year
17.20for the biennium ending June 30, 2011.
17.21Appropriations of federal stimulus money
17.22under this subdivision must be used to
17.23accomplish this goal.
17.24(d) $400,000 of this appropriation in fiscal
17.25year 2010 is for a grant to the Minnesota
17.26Wildlife Rehabilitation Center for their
17.27uncompensated expenses. This is a onetime
17.28appropriation.
17.29(e) An additional $27,080,000 is appropriated
17.30in fiscal year 2009 from the stabilization
17.31account in the federal fund.
17.32
Subd. 6.Academic Health Center
17.33The appropriation for Academic Health
17.34Center funding under Minnesota Statutes,
17.35section 297F.10, is $22,250,000 each year.
18.1
Subd. 7.NRRI Research
18.2Notwithstanding Minnesota Statutes, section
18.3137.022, subdivision 4, the board may
18.4use up to $150,000 of the income credited
18.5to the permanent university fund from
18.6royalties from mining under state mineral
18.7leases to fund research at the Coleraine
18.8Minerals Research Laboratory of the Natural
18.9Resources Research Institute by taconite
18.10engineers who have been laid off by the
18.11mining industry.
18.12
Subd. 8.Enrollment Increases
18.13Over the biennium ending June 30, 2011,
18.14the Board of Regents must increase
18.15the enrollment of Minnesota resident
18.16freshmen with the goal of reaching at
18.17least the proportion of Minnesota resident
18.18undergraduates enrolled in the University of
18.19Minnesota in the 2006-2007 academic year.

18.20
Sec. 6. MAYO CLINIC
18.21
Subdivision 1.Total Appropriation
$
1,300,000
$
1,351,000
18.22The amounts that may be spent for each
18.23purpose are specified in the following
18.24subdivisions.
18.25
Subd. 2.Medical School
640,000
665,000
18.26The state must pay a capitation each
18.27year for each student who is a resident
18.28of Minnesota. The appropriation may be
18.29transferred between years of the biennium to
18.30accommodate enrollment fluctuations.
18.31It is intended that during the biennium the
18.32Mayo Clinic use the capitation money to
19.1increase the number of doctors practicing in
19.2rural Minnesota areas in need of doctors.
19.3
19.4
Subd. 3.Family Practice and Graduate
Residency Program
660,000
686,000
19.5The state must pay stipend support for up to
19.627 residents each year.

19.7ARTICLE 2
19.8RELATED HIGHER EDUCATION

19.9    Section 1. Minnesota Statutes 2008, section 135A.08, subdivision 1, is amended to
19.10read:
19.11    Subdivision 1. Course equivalency. The Board of Regents of the University of
19.12Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
19.13shall develop and maintain course equivalency guides for use between institutions that
19.14have a high frequency of transfer. The course equivalency guides must include information
19.15on the course equivalency and awarding of credit for learning acquired as a result of
19.16the successful completion of formal military courses and occupational training. Course
19.17equivalency guides shall are not be required for vocational technical programs that have
19.18not been divided into identifiable courses. The governing boards of private institutions
19.19that grant associate and baccalaureate degrees and that have a high frequency of transfer
19.20students are requested to participate in developing these guides.

19.21    Sec. 2. Minnesota Statutes 2008, section 135A.25, subdivision 4, is amended to read:
19.22    Subd. 4. Minnesota Office of Higher Education responsibilities. (a) For private
19.23postsecondary institutions, the Minnesota Office of Higher Education must develop
19.24educational materials considering the recommendations by the Minnesota Office of Higher
19.25Education and others and at least annually convene and sponsor meetings and workshops
19.26and provide educational strategies for faculty, students, administrators, institutions, and
19.27bookstores to inform all interested parties on strategies for reducing the costs of course
19.28materials for students attending postsecondary institutions.
19.29    (b) The Minnesota Office of Higher Education must identify methods to compile and
19.30distribute information on publishers that sell or distribute course material for classroom use
19.31in postsecondary institutions in a manner that meets the requirements and complies with
19.32subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make
19.33this information available for use by students and faculty in postsecondary institutions.

20.1    Sec. 3. [135A.26] AMERICAN MADE CLOTHING IN COLLEGE
20.2BOOKSTORES.
20.3A bookstore located on the campus of a public college or university in Minnesota
20.4must only offer for sale clothing or articles of apparel that are manufactured in the United
20.5States of America.

20.6    Sec. 4. Minnesota Statutes 2008, section 136A.06, is amended to read:
20.7136A.06 FEDERAL FUNDS.
20.8The Minnesota Office of Higher Education is designated the state agency to apply
20.9for, receive, accept, and disburse to both public and private institutions of higher education
20.10all federal funds which are allocated to the state of Minnesota to support higher education
20.11programs, construction, or other activities and which require administration by a state
20.12higher education agency under the Higher Education Facilities Act of 1963, and any
20.13amendments thereof, the Higher Education Act of 1965, and any amendments thereof, and
20.14any other law which provides funds for higher education and requires administration by a
20.15state higher education agency as enacted or may be enacted by the Congress of the United
20.16States; provided that no commitment shall be made that shall bind the legislature to make
20.17appropriations beyond current allocations of funds. The office may apply for, receive,
20.18accept, and disburse all administrative funds available to the office for administering
20.19federal funds to support higher education programs, construction, or other activities. The
20.20office also may apply for, receive, accept, and disburse any research, planning, or program
20.21funds which are available for purposes consistent with the provisions of this chapter. In
20.22making application for and administering federal funds the office may comply with any
20.23and all requirements of federal law and federal rules and regulations to enable it to receive
20.24and accept such funds. The expenditure of any such funds received shall be governed by
20.25the laws of the state, except insofar as federal regulations may otherwise provide. The
20.26office may contract with both public and private institutions in administering federal
20.27funds, and such contracts shall not be subject to the provisions of chapter 16C. All such
20.28money received by the office shall be deposited in the state treasury and, subject to section
20.293.3005, are hereby appropriated to it annually for the purpose for which such funds are
20.30received. None of such moneys shall cancel but shall be available until expended.

20.31    Sec. 5. Minnesota Statutes 2008, section 136A.08, subdivision 1, is amended to read:
20.32    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
20.33have the meanings given them.
20.34(b) "Province" and "provincial" mean the Canadian province of Manitoba.
21.1(c) "Resident of this state" means a resident student as defined in section 136A.101,
21.2subdivision 8.

21.3    Sec. 6. Minnesota Statutes 2008, section 136A.08, is amended by adding a subdivision
21.4to read:
21.5    Subd. 9. Appeal; resident status. A student who does not meet the definition of
21.6resident after residing in Minnesota for 12 months may appeal to the director by providing
21.7documentation on the student's reasons for residing in Minnesota. The director may
21.8grant resident status to the student upon determining the documentation establishes that
21.9postsecondary education was not the student's principle reason for residing in Minnesota.

21.10    Sec. 7. Minnesota Statutes 2008, section 136A.101, subdivision 4, is amended to read:
21.11    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
21.12educational institution located in this state or in a state with which the office has entered
21.13into a higher education reciprocity agreement on state student aid programs that (1)
21.14requires, as a condition of enrollment, that each entering Minnesota resident student must
21.15complete the federal application for student aid (FAFSA), and is either (2) operated by
21.16this state or the Board of Regents of the University of Minnesota, or (2) (3) is operated
21.17privately and, as determined by the office, meets all of the following: (i) maintains
21.18academic standards substantially equivalent to those of comparable institutions operated
21.19in this state; (ii) is licensed or registered as a postsecondary institution by the office or
21.20another state agency; and (iii) by July 1, 2011, is participating in the federal Pell Grant
21.21program under Title IV of the Higher Education Act of 1965, as amended.

21.22    Sec. 8. Minnesota Statutes 2008, section 136A.121, subdivision 5, is amended to read:
21.23    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
21.24responsibility for covering the recognized cost of attendance by the applicant, the
21.25applicant's family, and the government. The amount of a financial stipend must not
21.26exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
21.27deducting the following:
21.28(1) the assigned student responsibility of at least 46 45 percent of the cost of
21.29attending the institution of the applicant's choosing;
21.30(2) the assigned family responsibility as defined in section 136A.101; and
21.31(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
21.32The minimum financial stipend is $100 per academic year.

22.1    Sec. 9. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read:
22.2    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of
22.3allowances specified in law for living and miscellaneous expenses, and an allowance for
22.4tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
22.5or the tuition and fee maximums established in law. The tuition and fee maximum for a
22.6student enrolled in a two-year program is the maximum tuition and fee amount charged at
22.7a two-year college within the Minnesota State Colleges and Universities. The tuition and
22.8fee maximum for a student enrolled in a four-year program shall be set in law.
22.9(b) For a student registering for less than full time, the office shall prorate the cost of
22.10attendance to the actual number of credits for which the student is enrolled.
22.11(c) The recognized cost of attendance for a student who is confined to a Minnesota
22.12correctional institution shall consist of the tuition and fee component in paragraph (a),
22.13with no allowance for living and miscellaneous expenses.
22.14(d) For the purpose of this subdivision, "fees" include only those fees that are
22.15mandatory and charged to full-time resident students attending the institution. Fees do
22.16not include charges for tools, equipment, computers, or other similar materials where the
22.17student retains ownership. Fees include charges for these materials if the institution retains
22.18ownership. Fees do not include optional or punitive fees.

22.19    Sec. 10. Minnesota Statutes 2008, section 136A.121, subdivision 9, is amended to read:
22.20    Subd. 9. Awards. An undergraduate student who meets the office's requirements
22.21is eligible to apply for and receive a grant in any year of undergraduate study unless the
22.22student has obtained a baccalaureate degree or previously has been enrolled full time or
22.23the equivalent for eight ten semesters or the equivalent, excluding courses taken from a
22.24Minnesota school or postsecondary institution which is not participating in the state grant
22.25program and from which a student transferred no credit. A student who withdraws from
22.26enrollment for active military service is entitled to an additional semester or the equivalent
22.27of grant eligibility. A student enrolled in a two-year program at a four-year institution is
22.28only eligible for the tuition and fee maximums established by law for two-year institutions.

22.29    Sec. 11. Minnesota Statutes 2008, section 136A.1701, subdivision 10, is amended to
22.30read:
22.31    Subd. 10. Prohibition on use of state money. Except as provided in section
22.32136A.1787, paragraph (a), no money originating from state sources in the state treasury
22.33shall be made available for student loans under this section and all student loans shall be
22.34made from money originating from nonstate sources.

23.1    Sec. 12. [136A.1787] SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE
23.2OF NEED.
23.3(a) In order to ensure the payment of the principal of and interest on bonds and
23.4notes of the office and the continued maintenance of the loan capital fund under section
23.5136A.1785, the office shall annually determine and certify to the governor, on or before
23.6December 1, the amount, if any:
23.7(1) needed to restore the loan capital fund to the minimum amount required by a
23.8resolution or indenture relating to any bonds or notes of the office, not exceeding the
23.9maximum amount of principal and interest to become due and payable in any subsequent
23.10year on all bonds or notes which are then outstanding;
23.11(2) determined by the office to be needed in the immediately ensuing fiscal year, with
23.12other funds pledged and estimated to be received during that year, for the payment of the
23.13principal and interest due and payable in that year on all outstanding bonds and notes; and
23.14(3) needed to restore any debt service fund securing any outstanding bonds or
23.15notes of the office to the amount required in a resolution or indenture relating to such
23.16outstanding bonds or notes.
23.17(b) The governor shall include and submit the amounts certified by the office in
23.18accordance with this section to the legislature in the budget for the following fiscal year, or
23.19in a supplemental budget if the regular budget for that year has previously been approved.

23.20    Sec. 13. [136A.1795] LARGE ANIMAL VETERINARIAN LOAN
23.21FORGIVENESS PROGRAM.
23.22    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
23.23have the meanings given.
23.24(b) "Veterinarian" means an individual who has been awarded a doctor of veterinary
23.25medicine degree from the College of Veterinary Medicine, University of Minnesota.
23.26(c) "Designated rural area" means an area in Minnesota outside the counties of
23.27Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington, excluding the cities of
23.28Duluth, Mankato, Moorhead, Rochester, and St. Cloud.
23.29(d) "Emergency circumstances" means those conditions that make it impossible for
23.30the participant to fulfill the service commitment, including death, total and permanent
23.31disability, or temporary disability lasting more than two years.
23.32(e) "Qualified educational loan" means a government, commercial, or foundation
23.33loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
23.34expenses related to the education of a veterinarian.
24.1    Subd. 2. Establishment; administration. (a) The director of the Minnesota Office
24.2of Higher Education shall establish and administer a loan forgiveness program for large
24.3animal veterinarians who:
24.4(1) agree to practice in designated rural areas that are considered underserved; and
24.5(2) work full time in a practice that is at least 50 percent involved with the care of
24.6food animals.
24.7(b) Appropriations made to the program do not cancel and are available until
24.8expended.
24.9    Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program,
24.10an individual must:
24.11(1) be a veterinarian who has been awarded a veterinary medicine degree within
24.12three years of submitting an application under this section, or be enrolled in the
24.13veterinarian degree program and making satisfactory progress in the College of Veterinary
24.14Medicine, University of Minnesota; and
24.15(2) submit an application to the director of the Minnesota Office of Higher Education
24.16in the form and manner prescribed by the director.
24.17(b) An applicant selected to participate must sign a contract agreeing to complete a
24.18five-year service obligation to practice as required under subdivision 2, paragraph (a).
24.19    Subd. 4. Loan forgiveness. (a) The director of the Minnesota Office of Higher
24.20Education may select a maximum of five applicants each year for participation in the loan
24.21forgiveness program, within the limits of available funding. Applicants are responsible for
24.22securing their own qualified educational loans.
24.23(b) The director must select participants based on their suitability for practice serving
24.24the designated rural area, as indicated by experience or training. The director must give
24.25preference to applicants closest to completing their training.
24.26(c) The director must make annual disbursements directly to the participant of
24.27$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
24.28for each year that a participant meets the service obligation required under subdivision 3,
24.29paragraph (b), up to a maximum of five years.
24.30(d) Before receiving loan repayment disbursements and as requested, the participant
24.31must complete and return to the director an affidavit of practice form provided by the
24.32director verifying that the participant is practicing as required under subdivision 2,
24.33paragraph (a). The participant must provide the director with verification that the full
24.34amount of loan repayment disbursement received by the participant has been applied
24.35toward the designated loans. After each disbursement, verification must be received by
24.36the director and approved before the next loan repayment disbursement is made.
25.1(e) Participants who move their practice remain eligible for loan repayment as long
25.2as they practice as required under subdivision 2, paragraph (a).
25.3    Subd. 5. Penalty for nonfulfillment. If a participant does not fulfill the required
25.4minimum commitment of service required under subdivision 3, paragraph (b), the director
25.5of the Minnesota Office of Higher Education must collect from the participant the total
25.6amount paid to the participant under the loan forgiveness program plus interest at a rate
25.7established according to section 270C.40. The director must deposit the money collected
25.8in the state general fund. The director must allow waivers of all or part of the money owed
25.9the director as a result of a nonfulfillment penalty if emergency circumstances prevented
25.10fulfillment of the service obligation.
25.11    Subd. 6. Rules. The director may adopt rules to implement this section.

25.12    Sec. 14. Minnesota Statutes 2008, section 136F.02, subdivision 1, is amended to read:
25.13    Subdivision 1. Membership. The board consists of 15 members appointed by the
25.14governor elected by the legislature in a joint convention, including three members who are
25.15students who have attended an institution for at least one year and are currently enrolled at
25.16least half time in a degree, diploma, or certificate program in an institution governed by
25.17the board. The student members shall include one member from a community college, one
25.18member from a state university, and one member from a technical college. One member
25.19representing labor must be appointed after considering the recommendations made under
25.20section 136F.045. The governor is not bound by the recommendations. Appointments to
25.21the board are with the advice and consent of the senate. At least one member of the board
25.22must be a resident of each congressional district. All other members must be appointed
25.23elected to represent the state at large. In selecting appointees, the governor must consider
25.24the needs of the board of trustees and the balance of the board membership with respect to
25.25labor and business representation and racial, gender, geographic, and ethnic composition.

25.26    Sec. 15. Minnesota Statutes 2008, section 136F.04, is amended to read:
25.27136F.04 STUDENT BOARD MEMBER SELECTION.
25.28    Subdivision 1. Responsibility. Notwithstanding section 136F.03, The State
25.29University Student Association and the State College Student Association shall each have
25.30the responsibility for recruiting, screening, and recommending qualified candidates to the
25.31joint committee for their student members of the board.
25.32    Subd. 2. Criteria. After consulting with the Board of Trustees Candidate Advisory
25.33Council, The student associations shall jointly develop a statement of the selection criteria
25.34to be applied to potential candidates.
26.1    Subd. 3. Recruiting and screening. Each student association shall develop
26.2processes for identifying and recruiting qualified candidates and for screening those
26.3candidates.
26.4    Subd. 4. Recommendations. Each student association shall recommend at least
26.5two and not more than four candidates for its student member. By April 15 February 15
26.6 of the even-numbered year in which its members' term expires, each student association
26.7shall submit its recommendations to the governor joint committee. The governor is not
26.8bound by these recommendations.

26.9    Sec. 16. Minnesota Statutes 2008, section 136F.045, is amended to read:
26.10136F.045 LABOR ORGANIZATION BOARD MEMBER SELECTION
26.11PROCESS.
26.12    The Minnesota AFL-CIO shall recruit and screen qualified labor candidates to be
26.13recommended to the governor for appointment joint committee for election to the board.
26.14The organization must develop a process for selecting candidates, and a statement of
26.15selection criteria for board membership that is consistent with the requirements under
26.16section 136F.02, subdivision 1. The organization must recommend at least two and no
26.17more than four candidates to the governor joint committee beginning in 2010 and every
26.18six years thereafter. Recommendations must be made by April 15 February 15 of the
26.19even-numbered year in which the governor makes appointments joint committee makes
26.20recommendations for candidates to be elected to the board. The governor is not bound
26.21by the recommendations.

26.22    Sec. 17. [136F.047] TRUSTEE NOMINATION AND ELECTION.
26.23    Subdivision 1. Joint legislative committee. The joint legislative committee consists
26.24of the members of the higher education budget and policy divisions in each body of the
26.25legislature. The chairs of the divisions from each body shall be cochairs of the joint
26.26legislative committee. A majority of the members from each body is a quorum of the
26.27joint committee.
26.28    Subd. 2. Meeting. By March 15 of each odd-numbered year, or at a date agreed
26.29to by concurrent resolution, the joint legislative committee shall meet to consider
26.30recommendations for trustee of the Minnesota State Colleges and Universities for
26.31possible presentation to a joint convention of the legislature. The joint committee
26.32must meet as many times as necessary for the purpose of interviewing candidates,
26.33recommending candidates for the joint committee to consider, and voting for candidates
26.34for recommendation to the joint convention.
27.1    Subd. 3. Recommendations The joint committee may recommend to the joint
27.2convention candidates nominated by the joint committee. If a vacancy exists for a
27.3student board member or a member recommended under this section, the joint committee
27.4must consider the recommendations made by the responsible organizations to the joint
27.5committee for those vacancies. Candidates for any vacancy may be nominated for
27.6consideration by the joint committee only if the nomination receives the support of at least
27.7three house of representatives members of the committee and two senate members of the
27.8committee. A candidate must receive a majority vote of members from the house of
27.9representatives on the joint committee and from the senate on the joint committee to be
27.10recommended to the joint convention. The joint committee may recommend no more than
27.11two candidates for each vacancy. In recommending candidates to the joint convention, the
27.12joint committee must consider the needs of the board of trustees and the balance of the
27.13board membership with respect to gender, racial, and ethnic composition.

27.14    Sec. 18. Minnesota Statutes 2008, section 136F.46, subdivision 3, is amended to read:
27.15    Subd. 3. Solicitation. Efforts to secure payroll deductions authorized in subdivision
27.161 may not interfere with, require a modification of, nor be conducted during the period of
27.17a payroll deduction fund drive for employees authorized by section 309.501 43A.50.

27.18    Sec. 19. [136F.705] UNDERGRADUATE TUITION GUARANTEE.
27.19(a) A Minnesota resident student who first enrolls in a degree program at a state
27.20college or university beginning in the fall of 2010 or later must be offered the opportunity
27.21to participate in a stable tuition plan, according to this section, for up to four consecutive
27.22academic years.
27.23(b) For an undergraduate student enrolled in a baccalaureate degree program at a
27.24state university, the tuition charged to the student for each semester of enrollment during
27.25a four-year period, beginning with the first semester of enrollment, must not exceed the
27.26amount of tuition that the student was charged for the first semester of enrollment. For a
27.27student who continues to be enrolled after four consecutive academic years, the tuition
27.28rate for each semester in excess of four years is equal to the tuition rate paid by new
27.29enrollees at the state university.
27.30(c) For an undergraduate student enrolled in an associate degree program at a college,
27.31the tuition charged to the student for each semester of enrollment during a two-year period,
27.32beginning with the first semester of enrollment, must not exceed the amount of tuition that
27.33the student was charged for the first semester of enrollment. For a student who continues
28.1to be enrolled after two consecutive academic years, the tuition rate for each semester in
28.2excess of two years is equal to the tuition rate for new enrollees at the college.

28.3    Sec. 20. [137.0225] UNIVERSITY SCHOLARSHIP.
28.4    The Board of Regents may establish a scholarship to help offset the impact of
28.5rising tuition for Minnesota students from middle-income families. To be eligible for a
28.6scholarship under this section, a student must be a Minnesota resident undergraduate
28.7from a family that is not Pell eligible with an annual adjusted gross income not to exceed
28.8$100,000.

28.9    Sec. 21. Minnesota Statutes 2008, section 137.0246, subdivision 2, is amended to read:
28.10    Subd. 2. Regent nomination joint committee. (a) The joint legislative committee
28.11consists of the members of the higher education budget and policy divisions in each house
28.12of the legislature. The chairs of the divisions from each body shall be cochairs of the
28.13joint legislative committee. A majority of the members from each house is a quorum of
28.14the joint committee.
28.15    (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent
28.16resolution, the joint legislative committee shall meet to consider the advisory council's
28.17recommendations for regent of the University of Minnesota for possible presentation to a
28.18joint convention of the legislature.
28.19    (c) The joint committee may recommend to the joint convention candidates
28.20recommended by the advisory council and the other candidates nominated by the joint
28.21committee. A candidate other than those recommended by the advisory council may be
28.22nominated for consideration by the joint committee only if the nomination receives the
28.23support of at least three house of representatives members of the committee and two senate
28.24members of the committee. A candidate must receive a majority vote of members from the
28.25house of representatives and from the senate on the joint committee to be recommended to
28.26the joint convention. The joint committee may recommend no more than one candidate
28.27two candidates for each vacancy. In recommending nominees, the joint committee must
28.28consider the needs of the board of regents and the balance of the board membership with
28.29respect to gender, racial, and ethnic composition.
28.30    (d) The joint committee must meet twice, approximately one week apart. The first
28.31meeting is for the purpose of interviewing candidates and recommending candidates for
28.32the joint committee to consider. The second meeting is for the purpose of voting for
28.33candidates for recommendation to the joint convention.

29.1    Sec. 22. Minnesota Statutes 2008, section 137.025, subdivision 1, is amended to read:
29.2    Subdivision 1. Appropriations not for buildings. The commissioner of finance
29.3shall pay no money to the University of Minnesota pursuant to a direct appropriation, other
29.4than an appropriation for buildings, until the university first certifies to the commissioner
29.5of finance that its aggregate balances in the temporary investment pool, cash, or separate
29.6investments, resulting from all state maintenance and special appropriations do not
29.7exceed $7,000,000, or any other amount specified in the act making the appropriation,
29.8plus one-third of all tuition and fee payments from the previous fiscal year. Upon this
29.9certification, The commissioner of finance shall pay 1/12 of the annual appropriation to
29.10the university shall be paid at the beginning on the 21st day of each month. Additional
29.11payments shall be made by the commissioner of finance whenever the state appropriations
29.12and tuition aggregate balances in the temporary investment pool, cash, or separate
29.13investments are reduced below the indicated levels. If the 21st day of the month falls on
29.14a Saturday or Sunday, the monthly payment shall be made on the Monday immediately
29.15following the 21st.

29.16    Sec. 23. [137.105] UNDERGRADUATE TUITION GUARANTEE.
29.17A Minnesota resident student who first enrolls in a degree program at the University
29.18of Minnesota beginning in the fall of 2010 or later must be offered the opportunity to
29.19participate in a stable tuition plan, according to this section, for up to four consecutive
29.20academic years. For an undergraduate student enrolled in a baccalaureate degree program,
29.21the tuition charged to the student for each semester of enrollment during a four-year
29.22period, beginning with the first semester of enrollment, must not exceed the amount of
29.23tuition that the student was charged for the first semester of enrollment. For a student
29.24who continues to be enrolled after four consecutive academic years, the tuition rate for
29.25each semester in excess of four years is equal to the tuition rate paid by new enrollees
29.26at the University of Minnesota.

29.27    Sec. 24. [137.701] UNIVERSITY NEIGHBORHOOD DEVELOPMENT.
29.28    Subdivision 1. Purpose. In order to support and create environments surrounding
29.29the campuses of the University of Minnesota in Minneapolis and Duluth that are
29.30conducive to the purposes of higher education and vital communities, the Board of
29.31Regents, the city of Minneapolis, and the city of Duluth are requested to create with
29.32surrounding neighborhoods an appropriate organization in each city, to cooperate in the
29.33development of those neighborhoods. The purpose of each organization is to improve
30.1the university's Minneapolis and Duluth campus area neighborhoods including, without
30.2limitation, the following:
30.3(1) providing and supporting the development of good quality university
30.4neighborhood housing, including housing for students, faculty, employees, alumni, and
30.5others who may wish to live in the university area neighborhoods;
30.6(2) encouraging and assisting university faculty, staff, students, and others to live in
30.7the neighborhood as long-term residents;
30.8(3) supporting and assisting appropriate business development in commercial areas
30.9of the neighborhood; and
30.10(4) cooperating and coordinating planning and development in all matters affecting
30.11the neighborhood with local government, businesses, residents, and other stakeholders in
30.12the neighborhood.
30.13    Subd. 2. Membership. The organization created by the Board of Regents and
30.14the city of Minneapolis shall include representatives from the organizations currently
30.15represented on the University District Alliance Steering Committee. The Board of
30.16Regents and the city of Duluth may establish the membership of an organization for the
30.17purposes of subdivision 1.
30.18    Subd. 3. Report. The Board of Regents, the city of Minneapolis, and the city
30.19of Duluth are requested to report by January 15, 2010, to the chairs of the legislative
30.20committees with primary jurisdiction over higher education policy and finance on the
30.21status and activities of the organization that is created.

30.22    Sec. 25. Minnesota Statutes 2008, section 179A.03, subdivision 14, is amended to read:
30.23    Subd. 14. Public employee or employee. "Public employee" or "employee" means
30.24any person appointed or employed by a public employer except:
30.25(a) elected public officials;
30.26(b) election officers;
30.27(c) commissioned or enlisted personnel of the Minnesota National Guard;
30.28(d) emergency employees who are employed for emergency work caused by natural
30.29disaster;
30.30(e) part-time employees whose service does not exceed the lesser of 14 hours per
30.31week or 35 percent of the normal work week in the employee's appropriate unit;
30.32(f) employees whose positions are basically temporary or seasonal in character and:
30.33(1) are not for more than 67 working days in any calendar year; or (2) are not for more
30.34than 100 working days in any calendar year and the employees are under the age of 22, are
30.35full-time students enrolled in a nonprofit or public educational institution prior to being
31.1hired by the employer, and have indicated, either in an application for employment or by
31.2being enrolled at an educational institution for the next academic year or term, an intention
31.3to continue as students during or after their temporary employment;
31.4(g) employees providing services for not more than two consecutive quarters to the
31.5Board of Trustees of the Minnesota State Colleges and Universities under the terms of a
31.6professional or technical services contract as defined in section 16C.08, subdivision 1;
31.7(h) employees of charitable hospitals as defined by section 179.35, subdivision 3;
31.8(i) full-time undergraduate students employed by the school which they attend under
31.9a work-study program or in connection with the receipt of financial aid, irrespective
31.10of number of hours of service per week;
31.11(j) an individual who is employed for less than 300 hours in a fiscal year as an
31.12instructor in an adult vocational education program;
31.13(k) an individual hired by the Board of Trustees of the Minnesota State Colleges and
31.14Universities to teach one course for three or fewer credits for one semester in a year;
31.15(l) with respect to court employees:
31.16(1) personal secretaries to judges;
31.17(2) law clerks;
31.18(3) managerial employees;
31.19(4) confidential employees; and
31.20(5) supervisory employees;
31.21(m) with respect to employees of Hennepin Healthcare System, Inc., managerial,
31.22supervisory, and confidential employees.
31.23The following individuals are public employees regardless of the exclusions of
31.24clauses (e) and (f):
31.25(i) An employee hired by a school district or the Board of Trustees of the Minnesota
31.26State Colleges and Universities except at the university established in section 136F.13
31.27the Twin Cities metropolitan area under section 136F.10 or for community services or
31.28community education instruction offered on a noncredit basis: (A) to replace an absent
31.29teacher or faculty member who is a public employee, where the replacement employee
31.30is employed more than 30 working days as a replacement for that teacher or faculty
31.31member; or (B) to take a teaching position created due to increased enrollment, curriculum
31.32expansion, courses which are a part of the curriculum whether offered annually or not, or
31.33other appropriate reasons;
31.34(ii) An employee hired for a position under clause (f)(1) if that same position has
31.35already been filled under clause (f)(1) in the same calendar year and the cumulative
31.36number of days worked in that same position by all employees exceeds 67 calendar days
32.1in that year. For the purpose of this paragraph, "same position" includes a substantially
32.2equivalent position if it is not the same position solely due to a change in the classification
32.3or title of the position; and
32.4(iii) an early childhood family education teacher employed by a school district.

32.5    Sec. 26. Minnesota Statutes 2008, section 299A.45, subdivision 4, is amended to read:
32.6    Subd. 4. Renewal. Each award must be given for one academic year and is
32.7renewable for a maximum of eight ten semesters or the equivalent. A student who
32.8withdraws from enrollment for active military service is entitled to an additional semester
32.9or the equivalent of grant eligibility. An award must not be given to a dependent child
32.10who is 23 years of age or older on the first day of the academic year.

32.11    Sec. 27. Minnesota Statutes 2008, section 340A.404, subdivision 4a, is amended to
32.12read:
32.13    Subd. 4a. State-owned recreation; entertainment facilities. Notwithstanding any
32.14other law, local ordinance, or charter provision, the commissioner may issue on-sale
32.15intoxicating liquor licenses:
32.16    (1) to the state agency administratively responsible for, or to an entity holding a
32.17concession or facility management contract with such agency for beverage sales at, the
32.18premises of any Giants Ridge Recreation Area building or recreational improvement area
32.19owned by the state in the town of White city of Biwabik, St. Louis County;
32.20    (2) to the state agency administratively responsible for, or to an entity holding a
32.21concession or facility management contract with such agency for beverage sales at, the
32.22premises of any Ironworld Discovery Center building or facility owned by the state at
32.23Chisholm; and
32.24    (3) to the Board of Regents of the University of Minnesota for events at Northrop
32.25Auditorium, the intercollegiate football stadium, or at no more than seven other locations
32.26within the boundaries of the University of Minnesota, provided that the Board of Regents
32.27has approved an application for a license for the specified location and provided that
32.28the application for a stadium or arena location allows for the legal sale of intoxicating
32.29liquor throughout the stadium or arena and does not limit the sale of intoxicating liquor to
32.30premium seating areas or suites.
32.31    The commissioner shall charge a fee for licenses issued under this subdivision in an
32.32amount comparable to the fee for comparable licenses issued in surrounding cities.
32.33EFFECTIVE DATE.This section is effective the day following final enactment
32.34and applies to applications for an on-sale liquor license made after December 1, 2008.

33.1    Sec. 28. REPORT; FEDERAL TEXTBOOK INFORMATION
33.2REQUIREMENTS.
33.3By January 15, 2010, the Minnesota Office of Higher Education must report
33.4to the committees of the legislature responsible for higher education finance on the
33.5implementation of textbook information requirements under United States Code, title 20,
33.6section 1015b, effective July 1, 2010. In preparing the report, the office must work with
33.7representatives of textbook publishers, the Student Advisory Council, Minnesota State
33.8Colleges and Universities, the University of Minnesota, and the Private College Council.
33.9At a minimum, the report must include a template that publishers may use to provide
33.10the required information in a consistent format to all Minnesota campuses, and make
33.11recommendations of methods to disseminate pricing information to support students and
33.12faculty in making well informed decisions about course materials.

33.13    Sec. 29. MINNESOTA STATE COLLEGE - SOUTHEAST TECHNICAL;
33.14AVIATION TRAINING CENTER.
33.15    Notwithstanding Minnesota Statutes, section 136F.60, subdivision 5, the net
33.16proceeds of the sale or disposition of the Aviation Training Center in Winona operated by
33.17Minnesota State College - Southeast Technical, after paying all expenses incurred in selling
33.18the property and retiring any remaining debt attributable to the project, are appropriated to
33.19the Board of Trustees of the Minnesota State Colleges and Universities for use in a capital
33.20project at the Winona campus and need not be paid to the commissioner of finance, as
33.21would otherwise be required by Minnesota Statutes, section 16A.695, subdivision 3.
33.22    When the sale is complete and the sale proceeds have been applied as provided in
33.23this section, Minnesota Statutes, section 16A.695, no longer applies to the property and
33.24the property is no longer state bond financed property.

33.25    Sec. 30. MINNESOTA STATE COLLEGES AND UNIVERSITIES DEGREE
33.26REQUIREMENTS.
33.27Until July 2, 2012, an associate of applied science degree offered by a college in
33.28the Minnesota State Colleges and Universities system is exempt from the 60-semester
33.29credit length limit for an associate degree specified in the Minnesota State Colleges and
33.30Universities Board Policy number 3.36, part 3, subpart C. The chancellor may consider
33.31criteria for waiving the credit length limits under this board policy for emerging or
33.32innovative programs. By January 2, 2012, the Minnesota State College Faculty and the
33.33Minnesota State College Student Association must present a joint report to the house of
34.1representatives and senate committees with jurisdiction over higher education policy on a
34.2process for reviewing the credit requirements for an associate of applied science degree.
34.3EFFECTIVE DATE.This section is effective the day following final enactment
34.4and applies to associate of applied science degrees whether first offered before, on, or
34.5after that date.

34.6    Sec. 31. POWER OF YOU PILOT PROGRAMS.
34.7    Subdivision 1. Power of you pilot programs. The Board of Trustees of the
34.8Minnesota State Colleges and Universities shall establish power of you pilot programs in
34.9suburban and rural sites. The pilots shall comply with Minnesota Statutes, section 136F.19.
34.10    Subd. 2. Suburban pilot selection. By July 1, 2009, the board of trustees shall
34.11select one technical college and one community college or community-technical college
34.12in the Minneapolis-St. Paul suburban area to develop a new power of you pilot program
34.13in conjunction with Metropolitan State University. Each college in the pilot program
34.14must work with a high school partner selected by the board in the Minneapolis-St. Paul
34.15suburban area.
34.16    Subd. 3. Rural pilot selection. By July 1, 2009, the Board of Trustees shall select
34.17two rural colleges to participate in the power of you pilot programs. One of the pilot
34.18programs must be a multicampus college in an agricultural part of the state and the other a
34.19multicampus college in a nonagricultural part of the state dependent on natural resources.
34.20Each college in the pilot program must work with a high school partner selected by the
34.21board.
34.22EFFECTIVE DATE.This section is effective the day following final enactment.

34.23    Sec. 32. REPEALER.
34.24Minnesota Statutes 2008, sections 136A.127; 136F.03; and 137.0245, are repealed.

34.25    Sec. 33. EFFECTIVE DATE.
34.26Sections 1 to 5 are effective the day following final enactment.