SF 924

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/24/2011 11:29am

A bill for an act
relating to higher education; amending postsecondary education provisions;
prohibiting use of certain public funds to support human cloning; appropriating
money; amending Minnesota Statutes 2010, sections 135A.51, subdivision 2;
136A.1787; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, subdivisions
1, 6, 8; 299A.45, subdivision 1; proposing coding for new law in Minnesota
Statutes, chapter 145; repealing Minnesota Statutes 2010, section 136G.11,
subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. SUMMARY OF APPROPRIATIONS.

Subdivision 1.

Summary By Fund.

The amounts shown in this subdivision
summarize direct appropriations, by fund, made in this article.

SUMMARY BY FUND
		2012		2013		Total
General	$	1,252,884,000	$	1,252,634,000	$	2,505,518,000
Health Care Access		2,157,000		2,157,000		4,314,000
Total	$	1,255,041,000	$	1,254,791,000	$	2,509,832,000

Subd. 2.

Summary By Agency - All Funds.

The amounts shown in this subdivision
summarize direct appropriations, by agency, made in this article.

SUMMARY BY AGENCY - ALL FUNDS
		2012		2013		Total
Minnesota Office of Higher Education	$	184,220,000	$	183,970,000	$	368,190,000
Mayo Medical Foundation		1,351,000		1,351,000		2,702,000
Board of Trustees of the Minnesota State Colleges and Universities		546,827,000		546,827,000		1,093,654,000
Board of Regents of the University of Minnesota		522,643,000		522,643,000		1,045,286,000
Total	$	1,255,041,000	$	1,254,791,000	$	2,509,832,000

Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2012" and "2013" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2012, or
June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
year 2013. "The biennium" is fiscal years 2012 and 2013.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2012		2013

Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

Subdivision 1. Total Appropriation

$

184,220,000

$

183,970,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. State Grants

147,857,000

147,857,000

(a) If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.

(b) For the biennium, the tuition maximum
is $10,488 in each year for students in
four-year programs, and $5,808 for students
in two-year programs.

(c) This appropriation sets the living and
miscellaneous expense allowance at $7,000
each year.

(d) This appropriation includes $100,000
the first year and $100,000 the second year
for educational benefits under Minnesota
Statutes, section 299A.45, to eligible
dependent children and to the spouses of
public safety officers killed in the line of duty.
If the appropriation in this paragraph for
either year is insufficient, the appropriation
for the other year is available for it.

Subd. 3. Child Care Grants

6,684,000

6,684,000

Subd. 4. State Work-Study

14,944,000

14,944,000

Subd. 5. Indian Scholarships

1,800,000

1,800,000

This appropriation includes funding each
year to administer the Indian scholarship
program.

Subd. 6. Intervention for College Attendance Program Grants

671,000

671,000

For grants under Minnesota Statutes,
section 136A.861. Up to $50,000 of this
appropriation each year may be used for
administrative expenses.

Subd. 7. Midwest Higher Education Compact

95,000

95,000

Subd. 8. United Family Medicine Residency Program

467,000

467,000

For a grant to the United Family Medicine
residency program. This appropriation
shall be used to support up to 18 resident
physicians each year in family practice at
United Family Medicine residency programs
and shall prepare doctors to practice family
care medicine in underserved rural and
urban areas of the state. It is intended
that this program will improve health
care in underserved communities, provide
affordable access to appropriate medical
care, and manage the treatment of patients in
a cost-effective manner.

Subd. 9. Interstate Tuition Reciprocity

3,150,000

3,250,000

If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.

Subd. 10. Minnesota College Savings Plan

350,000

-0-

Subd. 11. MnLINK Gateway and Minitex

5,480,000

5,480,000

Subd. 12. Other Programs

357,000

357,000

This appropriation includes $125,000 each
year for student and parent information,
$184,000 each year for the get ready outreach
program, and $48,000 each year for a
grant to the Minnesota Minority Education
Partnership.

Subd. 13. Agency Administration

2,365,000

2,365,000

Subd. 14. Balances Forward

A balance in the first year under this section
does not cancel, but is available for the
second year.

Subd. 15. Transfers

The Minnesota Office of Higher Education
may transfer unencumbered balances from
the appropriations in this section to the state
grant appropriation, the interstate tuition
reciprocity appropriation, the child care
grant appropriation, the Indian scholarship
appropriation, the state work-study
appropriation, the achieve scholarship
appropriation, the public safety officers'
survivors appropriation, and the Minnesota
college savings plan appropriation. Transfers
from the child care or state work-study
appropriations may only be made to the
extent there is a projected surplus in the
appropriation. A transfer may be made only
with prior written notice to the chairs and
ranking minority members of the senate and
house of representatives committees with
jurisdiction over higher education finance.

Subd. 16. TANF Work-Study

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

Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

Subdivision 1. Total Appropriation

$

546,827,000

$

546,827,000

Appropriations by Fund
	2012	2013
General	546,827,000	546,827,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Central Office and Shared Services Unit

33,074,000

33,074,000

For the Office of the Chancellor and the
Shared Services Division. The reduction in
the appropriation made by this subdivision
from the net appropriation made for the
central office and shared services unit in the
biennium ending June 30, 2011, must not be
allocated to any institution nor charged back
to any campus or institution.

Subd. 3. Operations and Maintenance

509,693,000

509,693,000

$120,000 each year is for the Cook
County Higher Education Board to provide
educational programs and academic support
services.

Subd. 4. Learning Network of Minnesota

4,060,000

4,060,000

Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

Subdivision 1. Total Appropriation

$

522,643,000

$

522,643,000

Appropriations by Fund
	2012	2013
General	520,486,000	520,486,000
Health Care Access	2,157,000	2,157,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Operations and Maintenance

459,547,000

459,547,000

(a) This appropriation includes funding for
operation and maintenance of the system.

(b) This appropriation includes amounts for
an Ojibwe Indian language program on the
Duluth campus.

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

(d) This appropriation includes money for
the Veterinary Diagnostic Laboratory to
preserve accreditation.

(e) During the biennium, the Board
of Regents is encouraged to at least
proportionally reduce spending for
administration relative to spending
reductions in other budget areas.

Subd. 3. Primary Care Education Initiatives

2,157,000

2,157,000

This appropriation is from the health care
access fund.

Subd. 4. Special Appropriations

(a) Agriculture and Extension Service

43,329,000

43,329,000

For the Agricultural Experiment Station and
the Minnesota Extension Service:

(1) the agricultural experiment stations
and Minnesota Extension Service must
convene agricultural advisory groups to
focus research, education, and extension
activities on producer needs and implement
an outreach strategy that more effectively
and rapidly transfers research results and best
practices to producers throughout the state;

(2) this appropriation includes funding for
research and outreach on the production of
renewable energy from Minnesota biomass
resources, including agronomic crops, plant
and animal wastes, and native plants or trees.
The following areas should be prioritized and
carried out in consultation with Minnesota
producers, renewable energy, and bioenergy
organizations:

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

(ii) alternative bioenergy crops and cropping
systems; and

(iii) biofuel coproducts used for livestock
feed;

(3) this appropriation includes funding
for the College of Food, Agricultural, and
Natural Resources Sciences to establish and
provide leadership for organic agronomic,
horticultural, livestock, and food systems
research, education, and outreach and for
the purchase of state-of-the-art laboratory,
planting, tilling, harvesting, and processing
equipment necessary for this project;

(4) this appropriation includes funding
for research efforts that demonstrate a
renewed emphasis on the needs of the state's
agriculture community. The following
areas should be prioritized and carried
out in consultation with Minnesota farm
organizations:

(i) vegetable crop research with priority for
extending the Minnesota vegetable growing
season;

(ii) fertilizer and soil fertility research and
development;

(iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;

(iv) discovering and developing plant
varieties that use nutrients more efficiently;

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

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

(vii) utilizing plant and livestock cells to treat
and cure human diseases;

(viii) the development of dairy coproducts;

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

(x) crop pest and animal disease research;

(xi) developing animal agriculture that is
capable of sustainably feeding the world;

(xii) consumer food safety education and
outreach;

(xiii) programs to meet the research and
outreach needs of organic livestock and crop
farmers; and

(xiv) alternative bioenergy crops and
cropping systems; and growing, harvesting,
and transporting biomass plant material; and

(5) by February 1, 2013, the Board of
Regents must submit a report to the
legislative committees with responsibility
for agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this section.

(b) Health Sciences

4,374,000

4,374,000

$346,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital
family practice residency program. The
program must prepare doctors to practice
primary care medicine in the rural areas of
the state. The legislature intends this program
to improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner.

The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.

(c) Institute of Technology

1,150,000

1,150,000

For the Geological Survey and the talented
youth mathematics program.

(d) System Special

5,104,000

5,104,000

For general research, industrial relations
education, Natural Resources Research
Institute, Center for Urban and Regional
Affairs, Bell Museum of Natural History, and
the Humphrey exhibit.

(e) University of Minnesota and Mayo Foundation Partnership

6,982,000

6,982,000

For the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. This appropriation
is available until expended. All parties
to the partnership and chairs and ranking
minority members of the senate and house of
representatives committees responsible for
higher education finance must be consulted
before the Board of Regents reduces the
amount allocated to the partnership under
this paragraph during the biennium ending
June 30, 2013. An annual report on the
expenditure of these funds must be submitted
to the governor and the chairs of the senate
and house of representatives committees
responsible for higher education and
economic development by June 30 of each
fiscal year.

Subd. 5. Academic Health Center

The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is $22,250,000 each year.

Sec. 6. MAYO MEDICAL FOUNDATION

Subdivision 1. Total Appropriation

$

1,351,000

$

1,351,000

The amounts that may be spent for the
purposes are specified in the following
subdivisions.

Subd. 2. Medical School

665,000

665,000

The state of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations.

It is intended that during the biennium the
Mayo Clinic use the capitation money to
increase the number of doctors practicing in
rural areas in need of doctors.

Subd. 3. Family Practice and Graduate Residency Program

686,000

686,000

The state of Minnesota must pay stipend
support for up to 27 residents each year.

Sec. 7. TUITION LIMITATION AT MINNESOTA STATE COLLEGES AND
UNIVERSITIES.

During the biennium ending June 30, 2013, the maximum tuition rate increase for
all tuition rates at a Minnesota State Colleges and Universities institution or campus to a
Minnesota resident undergraduate student may not exceed:

(1) three percent per academic year at a state college; and

(2) four percent per academic year at a state university.

Sec. 8. TUITION LIMITATION; UNIVERSITY OF MINNESOTA.

The legislature expects that during the biennium ending June 30, 2013, the
maximum tuition rate increase to a Minnesota resident undergraduate student enrolled at
the University of Minnesota shall not exceed four percent per academic year.

Sec. 9. ALLOCATION OF MNSCU SALARY SAVINGS.

During the biennium ending June 30, 2013, any salary savings to the Minnesota
State Colleges and Universities system caused by legislation that limits, reduces, or
eliminates salary increases during that biennium shall, at the discretion of the Board of
Trustees, be used to mitigate tuition increases or allocated to institutions and campuses
under the board's allocation model used for distribution of state appropriations.

Sec. 10. INSUFFICIENCY IN STATE GRANT APPROPRIATION; AWARD
REDUCTION CALCULATION.

During the biennium ending June 30, 2013, the calculation for reducing state grant
awards due to an insufficient appropriation to make full awards shall be governed by
Minnesota Statutes, section 136A.121, subdivision 7, except that the reductions caused by
Minnesota Statutes, section 136A.121, subdivision 7, clause (1), shall be approximately
three times the reductions caused by Minnesota Statutes, section 136A.121, subdivision
7, clause (2).

Sec. 11. STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.

The Minnesota Office of Higher Education must study graduate education in
for-profit institutions with a physical presence in the state. The study must examine
the rights and responsibilities of graduate students attending those institutions. At a
minimum, the study must include an analysis of graduate student disciplinary processes;
processes and policies adopted for the protection of graduate students' intellectual property
rights; policies and guidelines addressing academic freedom of inquiry for students; and
administrative processes in place to address disputes. The office must report on the
findings of this study by January 15, 2013, to the committees of the legislature with
responsibility for higher education finance. The report must include recommendations for
any changes to improve graduate education in the for-profit sector.

ARTICLE 2

HIGHER EDUCATION STATUTORY CHANGES

Section 1.

Minnesota Statutes 2010, section 135A.51, subdivision 2, is amended to
read:

Subd. 2.

Senior citizen.

"Senior citizen" means a person who has reached 66 62
years of age before the beginning of any term, semester or quarter, in which a course of
study is pursued, or a person receiving a railroad retirement annuity who has reached 60
years of age before the beginning of the term.

EFFECTIVE DATE.

This section is effective the day after final enactment for
terms beginning after July 1, 2011.

Sec. 2.

Minnesota Statutes 2010, section 136A.1787, is amended to read:

136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF
NEED.

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

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

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

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

(b) If the office determines the need under paragraph (a), clause (2) or (3), to be for
the immediately following fiscal year, the governor shall include and submit the amounts
certified by the office in accordance with this section to the legislature in the governor's
budget for the immediately following fiscal year, or. If the office determines the need
under paragraph (a), clause (2) or (3), to be for the current fiscal year, the governor shall
include and submit the amounts certified in a governor's supplemental budget if the regular
budget for that year has previously been approved enacted.

Sec. 3.

Minnesota Statutes 2010, section 136G.01, is amended to read:

136G.01 PLAN ESTABLISHED.

A college savings plan known as the Minnesota college savings plan is established.
In establishing this plan, the legislature seeks to encourage individuals to save for
postsecondary education by:

(1) providing a qualified tuition plan under federal tax law; and

(2) providing matching grants for contributions to the program by low- and
middle-income families; and

(3) encouraging individuals, foundations, and businesses to provide additional
grants to participating students.

Sec. 4.

Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:

Subdivision 1.

General.

For purposes of sections 136G.01 to , the
following terms have the meanings given.

Sec. 5.

Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:

Subd. 18.

Matching grant.

"Matching grant" means an amount added to a matching
grant account under section 136G.11 for eligible account beneficiaries for account
contributions in calendar years 2001 to 2010.

Sec. 6.

Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:

Subd. 27.

Plan.

"Plan" refers to the plan established under sections 136G.01 to
.

Sec. 7.

Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:

Subdivision 1.

Responsibilities.

(a) The director shall establish the rules, terms,
and conditions for the plan, subject to the requirements of sections 136G.01 to .

(b) The director shall prescribe the application forms, procedures, and other
requirements that apply to the plan.

Sec. 8.

Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:

Subd. 6.

Three-year period for withdrawal of grants.

A matching grant deposited
in the a matching grant account based on account owner contributions during calendar
years 2001 to 2010 under section 136G.11 may not be withdrawn within three years of the
establishment of the account of the beneficiary. In calculating the three-year period, the
period held in another account is included, if the account includes a rollover from another
account under section 529(c)(3)(C) of the Internal Revenue Code.

Sec. 9.

Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:

Subd. 8.

Administration.

The director shall administer the program, including
accepting and processing applications, maintaining account records, making payments,
making matching grants under section 136G.11, and undertaking any other necessary
tasks to administer the program. The office may contract with one or more third parties to
carry out some or all of these administrative duties, including providing incentives and
marketing the program. The office and the board may jointly contract with third-party
providers, if the office and board determine that it is desirable to contract with the same
entity or entities for administration and investment management.

Sec. 10.

[145.4221] STATE FUNDS; PROHIBITED USE FOR HUMAN
CLONING.

No state funds or federal funds the state receives for state programs may be used to
either support human cloning or to pay for any expenses incidental to human cloning. For
purposes of this section, "cloning" means generating a genetically identical copy of an
organism at any stage of development by combining an enucleated egg and the nucleus of
a somatic cell to make an embryo.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2010, section 299A.45, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

A person is eligible to receive educational benefits under
this section if the person:

(1) is certified under section 299A.44 and in compliance with this section and rules
of the commissioner of public safety and the Minnesota Office of Higher Education;

(2) is enrolled in an undergraduate degree or certificate program after June 30, 1990,
at an eligible Minnesota institution as provided in section 136A.101, subdivision 4;

(3) has not received a baccalaureate degree or been enrolled full time for nine ten
semesters or the equivalent, except that a student who withdraws from enrollment for
active military service is entitled to an additional semester or the equivalent of eligibility;
and

(4) is related in one of the following ways to a public safety officer killed in the
line of duty on or after January 1, 1973:

(i) as a dependent child less than 23 years of age;

(ii) as a surviving spouse; or

(iii) as a dependent child less than 30 years of age who has served on active military
duty 181 consecutive days or more and has been honorably discharged or released to the
dependent child's reserve or National Guard unit.

Sec. 12. REPEALER.

Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9,
and 10, are repealed effective July 1, 2012.

Sec. 13. EFFECTIVE DATE.

Sections 3 to 9 are effective July 1, 2012.