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SF 1236

3rd Engrossment - 88th Legislature (2013 - 2014) Posted on 09/11/2013 04:12pm

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

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Current Version - 3rd Engrossment

1.1A bill for an act
1.2relating to education; postsecondary; establishing a budget for higher education;
1.3appropriating money to the Office of Higher Education, the Board of Trustees
1.4of the Minnesota State Colleges and Universities, the Board of Regents of the
1.5University of Minnesota, and the Mayo Clinic; appropriating money for tuition
1.6relief; providing for the treatment of undocumented immigrants with respect to
1.7financial aid and tuition; regulating bonus payments; establishing the Minnesota
1.8Discovery, Research, and InnoVation Economy funding program; modifying
1.9provisions related to grants, awards, and aid, school registration, and licensure;
1.10requiring certain information to be provided in higher education budget
1.11proposals; making changes to the state grant program; establishing procedure
1.12for cancellation of required surety bond; repealing Higher Education Advisory
1.13Council; requiring a higher education mental health summit; creating a tribal
1.14college supplemental grant assistance program; recognizing veteran's experience
1.15and training for various higher education purposes; providing statewide electronic
1.16infrastructure; requiring reports;amending Minnesota Statutes 2012, sections
1.1713.47, subdivision 3; 127A.70, subdivision 2; 135A.031, subdivision 7; 135A.61;
1.18136A.101, subdivisions 3, 5a, 8, 9; 136A.121, subdivision 5, by adding a
1.19subdivision; 136A.125, subdivisions 2, 4; 136A.233, subdivision 2; 136A.62, by
1.20adding a subdivision; 136A.646; 136A.65, subdivision 8; 136A.653, by adding
1.21a subdivision; 136F.40, subdivision 2; 137.027; 141.35; 197.775, subdivisions
1.221, 2, by adding a subdivision; 268.19, subdivision 1; 299A.45, subdivision 4;
1.23proposing coding for new law in Minnesota Statutes, chapters 135A; 136A;
1.24136F; 137; repealing Minnesota Statutes 2012, sections 136A.031, subdivision 2;
1.25136A.121, subdivision 9b; Minnesota Rules, part 4830.0100, subpart 5, item F.
1.26BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27ARTICLE 1
1.28HIGHER EDUCATION APPROPRIATIONS

1.29
Section 1. SUMMARY OF APPROPRIATIONS.
1.30    Subdivision 1. Summary By Fund. The amounts shown in this subdivision
1.31summarize direct appropriations, by fund, made in this article.
2.1
SUMMARY BY FUND
2.2
2014
2015
Total
2.3
General
$
1,393,096,000
$
1,422,165,000
$
2,815,261,000
2.4
Health Care Access
2,157,000
2,157,000
4,314,000
2.5
Total
$
1,395,253,000
$
1,424,322,000
$
2,819,575,000
2.6    Subd. 2. Summary By Agency - All Funds. The amounts shown in this subdivision
2.7summarize direct appropriations, by agency, made in this article.
2.8
SUMMARY BY AGENCY - ALL FUNDS
2.9
2014
2015
Total
2.10
2.11
Minnesota Office of Higher
Education
$
227,031,000
$
224,572,000
$
451,603,000
2.12
2.13
2.14
Board of Trustees of the
Minnesota State Colleges and
Universities
587,915,000
605,143,000
1,193,058,000
2.15
2.16
Board of Regents of the
University of Minnesota
578,956,000
593,256,000
1,172,212,000
2.17
Mayo Clinic
1,351,000
1,351,000
2,702,000
2.18
Total
$
1,395,253,000
$
1,424,322,000
$
2,819,575,000

2.19
Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.20    The sums shown in the columns marked "Appropriations" are appropriated to the
2.21agencies and for the purposes specified in this article. The appropriations are from the
2.22general fund, or another named fund, and are available for the fiscal years indicated
2.23for each purpose. The figures "2014" and "2015" used in this article mean that the
2.24appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.25June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.26year 2015. "The biennium" is fiscal years 2014 and 2015.
2.27
APPROPRIATIONS
2.28
Available for the Year
2.29
Ending June 30
2.30
2014
2015

2.31
2.32
Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION
2.33
Subdivision 1.Total Appropriation
$
227,031,000
$
224,572,000
2.34The amounts that may be spent for each
2.35purpose are specified in the following
2.36subdivisions.
2.37
Subd. 2.State Grants
179,141,000
176,781,000
3.1If the appropriation in this subdivision for
3.2either year is insufficient, the appropriation
3.3for the other year is available for it.
3.4
Subd. 3.Child Care Grants
6,684,000
6,684,000
3.5
Subd. 4.State Work-Study
14,502,000
14,502,000
3.6
Subd. 5.Interstate Tuition Reciprocity
11,017,000
11,018,000
3.7If the appropriation in this subdivision for
3.8either year is insufficient, the appropriation
3.9for the other year is available to meet
3.10reciprocity contract obligations.
3.11
Subd. 6.Safety Officer's Survivors
100,000
100,000
3.12This appropriation is to provide educational
3.13benefits under Minnesota Statutes, section
3.14299A.45, to eligible dependent children and
3.15to the spouses of public safety officers killed
3.16in the line of duty.
3.17If the appropriation in this subdivision for
3.18either year is insufficient, the appropriation
3.19for the other year is available for it.
3.20
Subd. 7.Indian Scholarships
3,100,000
3,100,000
3.21The director must contract with or employ
3.22at least one person with demonstrated
3.23competence in American Indian culture and
3.24residing in or near the city of Bemidji to
3.25assist students with the scholarships under
3.26Minnesota Statutes, section 136A.126, and
3.27with other information about financial aid for
3.28which the students may be eligible. Bemidji
3.29State University must provide office space
3.30at no cost to the Minnesota Office of Higher
3.31Education for purposes of administering the
3.32American Indian scholarship program under
3.33Minnesota Statutes, section 136A.126. This
4.1appropriation includes funding to administer
4.2the American Indian scholarship program.
4.3
Subd. 8.Tribal College Grants
150,000
150,000
4.4For tribal college assistance grants under
4.5new Minnesota Statutes, section 136A.50.
4.6
4.7
Subd. 9.High School-to-College Developmental
Transition Grants
100,000
100,000
4.8For grants under Minnesota Statutes, section
4.9135A.61, for the high school-to-college
4.10developmental transition program grants.
4.11
4.12
Subd. 10.Intervention for College Attendance
Program Grants
671,000
671,000
4.13For the intervention for college attendance
4.14program under Minnesota Statutes, section
4.15136A.861.
4.16This appropriation includes funding to
4.17administer the intervention for college
4.18attendance program grants.
4.19
Subd. 11.Student-Parent Information
122,000
122,000
4.20
Subd. 12.Get Ready
180,000
180,000
4.21
Subd. 13.Midwest Higher Education Compact
95,000
95,000
4.22
Subd. 14.Minnesota Minority Partnership
45,000
45,000
4.23
4.24
Subd. 15.United Family Medicine Residency
Program
351,000
351,000
4.25For a grant to United Family Medicine
4.26residency program. This appropriation
4.27shall be used to support up to 18 resident
4.28physicians each year in family practice at
4.29United Family Medicine residency programs
4.30and shall prepare doctors to practice family
4.31care medicine in underserved rural and
4.32urban areas of the state. It is intended
4.33that this program will improve health
4.34care in underserved communities, provide
5.1affordable access to appropriate medical
5.2care, and manage the treatment of patients in
5.3a cost-effective manner.
5.4
Subd. 16.MnLINK Gateway and Minitex
5,905,000
5,905,000
5.5
5.6
Subd. 17.Statewide Longitudinal Education
Data System
882,000
882,000
5.7$582,000 in fiscal year 2014 and $582,000
5.8in fiscal year 2015 are appropriated to the
5.9Office of Higher Education for transfer
5.10to the Office of Enterprise Technology to
5.11maintain infrastructure of the Statewide
5.12Longitudinal Education Data System and
5.13to acquire additional data through purchase
5.14and development. This transfer to the Office
5.15of Enterprise Technology is onetime. Any
5.16ongoing information technology support
5.17or costs for the Statewide Longitudinal
5.18Education Data System will be incorporated
5.19into the service level agreement and will be
5.20paid to the Office of Enterprise Technology
5.21by the Office of Higher Education under
5.22the rates and mechanism specified in that
5.23agreement.
5.24
Subd. 18.Hennepin County Medical Center
645,000
645,000
5.25For transfer to Hennepin County Medical
5.26Center for graduate family medical education
5.27programs at Hennepin County Medical
5.28Center.
5.29
Subd. 19.Teach for America
750,000
750,000
5.30For the purpose of supporting Teach for
5.31America activities in Minnesota and must
5.32not be used for teaching services performed
5.33outside Minnesota. The appropriation shall
5.34be used for:
6.1(1) expenses related to the recruitment,
6.2selection, and training of Teach for America
6.3corps members;
6.4(2) ongoing professional development and
6.5support of Teach for America corps members;
6.6(3) ongoing alumni support; and
6.7(4) management and operational support,
6.8development, and central services, including
6.9finance, technology, and human services.
6.10The appropriation for fiscal year 2015 is not
6.11available until the appropriation for fiscal
6.12year 2014 is matched by $2,121,000 from
6.13nonstate sources.
6.14Teach for America must by February 1, 2015,
6.15report to the chairs and ranking minority
6.16members of the legislative committees
6.17and divisions with jurisdiction over higher
6.18education on activities funded by this
6.19appropriation. Specifically, and without
6.20limitation, the report must include a report
6.21on the number of teachers of color funded
6.22and on the success of the teaching activities.
6.23To the extent possible, success must be
6.24measured using the Minnesota teachers
6.25development and evaluation program.
6.26
Subd. 20.Prosperity Act.
6.27$100,000 in fiscal year 2014 is appropriated
6.28from the general fund to the Office of Higher
6.29Education for the information technology
6.30costs associated with the implementation
6.31of the Prosperity Act. This is a onetime
6.32appropriation.
6.33
Subd. 21.Agency Administration
2,491,000
2,491,000
6.34
Subd. 22.Balances Forward
7.1A balance in the first year under this section
7.2does not cancel, but is available for the
7.3second year.
7.4
Subd. 23.Transfers
7.5The Minnesota Office of Higher Education
7.6may transfer unencumbered balances from
7.7the appropriations in this section to the state
7.8grant appropriation, the interstate tuition
7.9reciprocity appropriation, the child care
7.10grant appropriation, the Indian scholarship
7.11appropriation, the state work-study
7.12appropriation, the get ready appropriation,
7.13and the public safety officers' survivors
7.14appropriation. Transfers from the child care
7.15or state work-study appropriations may only
7.16be made to the extent there is a projected
7.17surplus in the appropriation. A transfer may
7.18be made only with prior written notice to
7.19the chairs and ranking minority members
7.20of the senate and house of representatives
7.21committees and divisions with jurisdiction
7.22over higher education finance.

7.23
7.24
7.25
Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
7.26
Subdivision 1.Total Appropriation
$
587,915,000
$
605,143,000
7.27The amounts that may be spent for each
7.28purpose are specified in the following
7.29subdivisions.
7.30
7.31
Subd. 2.Central Office and Shared Services
Unit
33,074,000
33,074,000
7.32For the Office of the Chancellor and the
7.33Shared Services Division.
7.34
Subd. 3.Operations and Maintenance
550,726,000
567,954,000
8.1This appropriation includes $25,500,000 in
8.2fiscal year 2014 and $52,500,000 in fiscal
8.3year 2015 for student tuition relief. The
8.4Board of Trustees may not set the tuition
8.5rate in any undergraduate degree-granting
8.6program for the 2013-2014 and 2014-2015
8.7academic years at a rate greater than the
8.82012-2013 academic year rate. The student
8.9tuition relief may not be offset by increases
8.10in mandatory fees, charges, or other
8.11assessments to the student.
8.12To the extent that appropriations under
8.13this subdivision are insufficient to meet
8.14obligations contained in a labor or program
8.15contract, the Board of Trustees shall fund
8.16those obligations through reductions in costs
8.17associated with central administration of
8.18the system and executive administration of
8.19individual campuses, or through reallocation
8.20of nonstate funds received by the system.
8.21These outstanding obligations may not be
8.22funded through reduction in any program or
8.23service that directly impacts students or that
8.24is newly-authorized by the legislature for the
8.252014-2015 biennium, or through increased
8.26fees or costs directly assessed to students.
8.27$17,000,000 in fiscal year 2014 is for
8.28retention of talented faculty and staff. No
8.29later than April 1, 2014, the Board of Trustees
8.30must report to the legislative committees with
8.31jurisdiction over higher education finance
8.32and policy on the expenditure of these funds.
8.33The report must include:
8.34(1) the aggregate number of positions retained
8.35systemwide, and by individual campus;
9.1(2) the criteria used to determine whether a
9.2position qualified for retention funds from
9.3this appropriation;
9.4(3) the allocation of this appropriation
9.5among employment categories including,
9.6but not limited to, central administrative
9.7staff, executive administration on individual
9.8campuses, directors or chairs of individual
9.9programs and departments, faculty, academic
9.10support and student services staff, auxiliary
9.11services, and other employment categories as
9.12appropriate, and the average compensation
9.13increase for positions within each category;
9.14(4) an itemized accounting of this
9.15appropriation's allocation by individual
9.16employment position, including each
9.17position's job title, the full compensation
9.18and benefit structure for that position before
9.19and after this appropriation is allocated,
9.20the percent increase in compensation and
9.21benefits for that position as a result of
9.22this appropriation, and data comparing the
9.23compensation and benefit structure offered
9.24with similar positions at peer institutions; and
9.25(5) the number of talented faculty and staff
9.26positions targeted for retention that were not
9.27able to be retained, and the reasons those
9.28positions were not retained.
9.29$18,000 each year is for transfer to the Cook
9.30County Higher Education Board to provide
9.31educational programming and academic
9.32support services to remote regions in
9.33northeastern Minnesota. This appropriation
9.34is in addition to the $102,000 per fiscal year
9.35this project currently receives. The project
10.1shall continue to provide information to the
10.2Board of Trustees on the number of students
10.3served, credit hours delivered, and services
10.4provided to students. The base appropriation
10.5under this paragraph is $120,000 each year.
10.6$7,278,000 in fiscal year 2015 is for a
10.7leveraged equipment program. For the
10.8purpose of this section, "equipment" means
10.9equipment for instructional purposes for
10.10programs that the board determines would
10.11produce graduates with skills for which there
10.12is a high employer need within the state. An
10.13equipment acquisition may be made under
10.14this appropriation only if matched by cash or
10.15in-kind contributions from nonstate sources.
10.16No later than January 15, 2015, the Board
10.17of Trustees shall submit a report to the
10.18legislative committees with oversight over
10.19higher education finance and policy on the
10.20expenditure of these funds to date. The
10.21reports must also list each donor, and the
10.22amount contributed by the donor, or in the
10.23case of an in-kind contribution, the nature
10.24and value of the contribution, received to
10.25date for purposes of the required match.
10.26$50,000 in fiscal year 2014 is to convene
10.27a mental health issues summit. This is a
10.28onetime appropriation.
10.29Five percent of the fiscal year 2015
10.30appropriation in this subdivision is available
10.31in fiscal year 2015 when the Board of
10.32Trustees of the Minnesota State Colleges and
10.33Universities (MnSCU) demonstrates to the
10.34commissioner of management and budget
11.1that the board has met at least three of the
11.2following five performance goals:
11.3(1) increase by at least four percent in
11.4fiscal year 2013, compared to fiscal year
11.52010, graduates or degrees, diplomas, and
11.6certificates conferred;
11.7(2) increase by at least one percent the fall
11.82013 persistence and completion rate for fall
11.92012 entering students compared to the fall
11.102010 rate for fall 2009 entering students;
11.11(3) increase by at least four percent the fiscal
11.12year 2013 related employment rate for 2012
11.13graduates compared to the 2011 rate for 2010
11.14graduates;
11.15(4) by 2014, MnSCU must collect data on
11.16the number of Open Educational Resources
11.17(OER) tools and services offered and
11.18formulate a plan to actualize a one percent
11.19reduction in expenses directly related to the
11.20cost of instruction incurred by students; and
11.21(5) reallocate $22,000,000 that became
11.22available through expense realignment in
11.23fiscal year 2014.
11.24"Open Educational Resources" includes,
11.25but is not limited to, textbooks, study
11.26guides, worksheets, journals, video, audio
11.27recordings, massive open online courses, or
11.28other innovative course configuration.
11.29"Cost of instruction" means average tuition,
11.30average fees, average cost to student for
11.31textbooks and related course material.
11.32By August 1, 2013, the Board of Trustees
11.33and the Minnesota Office of Higher
11.34Education must agree on specific numerical
12.1indicators and definitions for each of the five
12.2goals that will be used to demonstrate the
12.3Minnesota State Colleges and Universities'
12.4attainment of each goal. On or before April
12.51, 2014, the Board of Trustees must report
12.6to the legislative committees with primary
12.7jurisdiction over higher education finance and
12.8policy the progress of the Minnesota State
12.9Colleges and Universities toward attaining
12.10the goals. The appropriation base for the
12.11next biennium shall include appropriations
12.12not made available under this subdivision for
12.13failure to meet performance goals.
12.14
Subd. 4.Learning Network of Minnesota
4,115,000
4,115,000

12.15
12.16
Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
12.17
Subdivision 1.Total Appropriation
$
578,956,000
$
593,256,000
12.18
Appropriations by Fund
12.19
2014
2015
12.20
General
576,799,000
591,099,000
12.21
Health Care Access
2,157,000
2,157,000
12.22The amounts that may be spent for each
12.23purpose are specified in the following
12.24subdivisions.
12.25
Subd. 2.Operations and Maintenance
515,211,000
529,511,000
12.26This appropriation includes funding for
12.27operation and maintenance of the system.
12.28This appropriation includes $14,200,000 in
12.29fiscal year 2014 and $28,400,000 in fiscal
12.30year 2015 for tuition relief. The Board
12.31of Regents is requested to maintain the
12.32Minnesota resident undergraduate tuition rate
12.33for the 2013-2014 and 2014-2015 academic
12.34years at the 2012-2013 academic year rate.
13.1$17,775,000 in fiscal year 2014 and
13.2$17,875,000 in fiscal year 2015 are for
13.3the Minnesota Discovery, Research, and
13.4InnoVation Economy (MnDRIVE) funding
13.5program.
13.6Five percent of the fiscal year 2015
13.7appropriation in this subdivision is available
13.8in fiscal year 2015 when the Board of Regents
13.9of the University of Minnesota demonstrates
13.10to the commissioner of management and
13.11budget that the board has met at least three of
13.12the following five performance goals:
13.13(1) increase by at least one percent the Twin
13.14Cities campus undergraduate four-year,
13.15five-year, or six-year graduation rates
13.16averaged over three years, for low-income
13.17students reported in fall 2014 over fall 2012.
13.18The average rate for fall 2012 is calculated
13.19with the fall 2010, 2011, and 2012 graduation
13.20rates;
13.21(2) increase by at least three percent the total
13.22number of undergraduate STEM degrees,
13.23averaged over three years, conferred by the
13.24University of Minnesota Twin Cities campus
13.25reported in fiscal year 2014 over fiscal year
13.262012. The averaged number for fall 2012 is
13.27calculated with the fall 2010, 2011, and 2012
13.28number;
13.29(3) increase by at least one percent the
13.30four-year, five-year, or six-year graduation
13.31rates, averaged over three years, at the
13.32University of Minnesota reported in fall 2014
13.33over fall 2012. The average rate for fall 2012
13.34is calculated with the fall 2010, 2011, and
13.352012 graduation rates;
14.1(4) for fiscal year 2014, decrease
14.2administrative costs by $15,000,000; and
14.3(5) increase invention disclosures by three
14.4percent for fiscal year 2014 over fiscal year
14.52013 (net of student disclosures).
14.6By August 1, 2013, the Board of Regents and
14.7the Minnesota Office of Higher Education
14.8must agree on specific numerical indicators
14.9and definitions for each of the five goals that
14.10will be used to demonstrate the University of
14.11Minnesota's attainment of each goal. On or
14.12before April 1, 2014, the Board of Regents
14.13must report to the legislative committees
14.14with primary jurisdiction over higher
14.15education finance and policy the progress of
14.16the University of Minnesota toward attaining
14.17the goals. The appropriation base for the
14.18next biennium shall include appropriations
14.19not made available under this subdivision for
14.20failure to meet performance goals.
14.21
Subd. 3.Primary Care Education Initiatives
2,157,000
2,157,000
14.22This appropriation is from the health care
14.23access fund.
14.24
Subd. 4.Special Appropriations
14.25
(a) Agriculture and Extension Service
42,922,000
42,922,000
14.26For the Agricultural Experiment Station and
14.27the Minnesota Extension Service:
14.28(1) the agricultural experiment stations
14.29and Minnesota Extension Service must
14.30convene agricultural advisory groups to
14.31focus research, education, and extension
14.32activities on producer needs and implement
14.33an outreach strategy that more effectively
15.1and rapidly transfers research results and best
15.2practices to producers throughout the state;
15.3(2) this appropriation includes funding for
15.4research and outreach on the production of
15.5renewable energy from Minnesota biomass
15.6resources, including agronomic crops, plant
15.7and animal wastes, and native plants or trees.
15.8The following areas should be prioritized and
15.9carried out in consultation with Minnesota
15.10producers, renewable energy, and bioenergy
15.11organizations:
15.12(i) biofuel and other energy production from
15.13perennial crops, small grains, row crops,
15.14and forestry products in conjunction with
15.15the Natural Resources Research Institute
15.16(NRRI);
15.17(ii) alternative bioenergy crops and cropping
15.18systems; and
15.19(iii) biofuel coproducts used for livestock
15.20feed;
15.21(3) this appropriation includes funding
15.22for the College of Food, Agricultural, and
15.23Natural Resources Sciences to establish and
15.24provide leadership for organic agronomic,
15.25horticultural, livestock, and food systems
15.26research, education, and outreach and for
15.27the purchase of state-of-the-art laboratory,
15.28planting, tilling, harvesting, and processing
15.29equipment necessary for this project;
15.30(4) this appropriation includes funding
15.31for research efforts that demonstrate a
15.32renewed emphasis on the needs of the state's
15.33agriculture community. The following
15.34areas should be prioritized and carried
16.1out in consultation with Minnesota farm
16.2organizations:
16.3(i) vegetable crop research with priority for
16.4extending the Minnesota vegetable growing
16.5season;
16.6(ii) fertilizer and soil fertility research and
16.7development;
16.8(iii) soil, groundwater, and surface water
16.9conservation practices and contaminant
16.10reduction research;
16.11(iv) discovering and developing plant
16.12varieties that use nutrients more efficiently;
16.13(v) breeding and development of turf seed
16.14and other biomass resources in all three
16.15Minnesota biomes;
16.16(vi) development of new disease-resistant
16.17and pest-resistant varieties of turf and
16.18agronomic crops;
16.19(vii) utilizing plant and livestock cells to treat
16.20and cure human diseases;
16.21(viii) the development of dairy coproducts;
16.22(ix) a rapid agricultural response fund for
16.23current or emerging animal, plant, and insect
16.24problems affecting production or food safety;
16.25(x) crop pest and animal disease research;
16.26(xi) developing animal agriculture that is
16.27capable of sustainably feeding the world;
16.28(xii) consumer food safety education and
16.29outreach;
16.30(xiii) programs to meet the research and
16.31outreach needs of organic livestock and crop
16.32farmers; and
17.1(xiv) alternative bioenergy crops and
17.2cropping systems; and growing, harvesting,
17.3and transporting biomass plant material; and
17.4(5) by February 1, 2015, the Board of Regents
17.5must submit a report to the legislative
17.6committees and divisions with responsibility
17.7for agriculture and higher education finance
17.8on the status and outcomes of research and
17.9initiatives funded in this section.
17.10
(b) Health Sciences
4,854,000
4,854,000
17.11$346,000 each year is to support up to 12
17.12resident physicians in the St. Cloud Hospital
17.13family practice residency program. The
17.14program must prepare doctors to practice
17.15primary care medicine in rural areas of the
17.16state. The legislature intends this program
17.17to improve health care in rural communities,
17.18provide affordable access to appropriate
17.19medical care, and manage the treatment of
17.20patients in a more cost-effective manner.
17.21The remainder of this appropriation is for
17.22the rural physicians associates program, the
17.23Veterinary Diagnostic Laboratory, health
17.24sciences research, dental care, and the
17.25Biomedical Engineering Center.
17.26
(c) Institute of Technology
1,140,000
1,140,000
17.27For the geological survey and the talented
17.28youth mathematics program.
17.29
(d) System Special
5,181,000
5,181,000
17.30For general research, the Labor Education
17.31Service, Natural Resources Research
17.32Institute, Center for Urban and Regional
17.33Affairs, Bell Museum of Natural History, and
17.34the Humphrey exhibit.
18.1Of this amount, $125,000 in fiscal year 2014
18.2and $125,000 in fiscal year 2015 are added
18.3to the base for the Labor Education Service.
18.4
18.5
(e) University of Minnesota and Mayo
Foundation Partnership
7,491,000
7,491,000
18.6For the direct and indirect expenses of the
18.7collaborative research partnership between
18.8the University of Minnesota and the Mayo
18.9Foundation for research in biotechnology
18.10and medical genomics. This appropriation is
18.11available until expended. An annual report
18.12on the expenditure of these funds must be
18.13submitted to the governor and the chairs of
18.14the legislative committee responsible for
18.15higher education finance by June 30 of each
18.16fiscal year.
18.17
Subd. 5.Academic Health Center
18.18The appropriation for Academic Health
18.19Center funding under Minnesota Statutes,
18.20section 297F.10, is estimated to be
18.21$22,250,000 each year.

18.22
Sec. 6. MAYO CLINIC
18.23
Subdivision 1.Total Appropriation
$
1,351,000
$
1,351,000
18.24The amounts that may be spent are specified
18.25in the following subdivisions.
18.26
Subd. 2.Medical School
665,000
665,000
18.27The state must pay a capitation each year for
18.28each student who is a resident of Minnesota.
18.29The appropriation may be transferred
18.30between each year of the biennium to
18.31accommodate enrollment fluctuations. It is
18.32intended that during the biennium the Mayo
18.33Clinic use the capitation money to increase
19.1the number of doctors practicing in rural
19.2areas in need of doctors.
19.3
19.4
Subd. 3.Family Practice and Graduate
Residency Program
686,000
686,000
19.5The state must pay stipend support for up to
19.627 residents each year.

19.7ARTICLE 2
19.8HIGHER EDUCATION POLICY

19.9    Section 1. Minnesota Statutes 2012, section 13.47, subdivision 3, is amended to read:
19.10    Subd. 3. Dissemination. (a) Employment and training data may be disseminated by
19.11employment and training service providers:
19.12(a) (1) to other employment and training service providers to coordinate the
19.13employment and training services for the data subject or to determine eligibility or
19.14suitability for services from other programs;
19.15(b) (2) to local and state welfare agencies for monitoring the eligibility of the
19.16participant for assistance programs, or for any employment or training program
19.17administered by those agencies; and
19.18(c) (3) to the commissioner of employment and economic development.
19.19(b) The commissioner of employment and economic development may disseminate
19.20employment and training data to the Office of Higher Education for purposes of supporting
19.21program improvement, system evaluation, and research initiatives including the Statewide
19.22Longitudinal Education Data System.

19.23    Sec. 2. Minnesota Statutes 2012, section 127A.70, subdivision 2, is amended to read:
19.24    Subd. 2. Powers and duties; report. (a) The partnership shall develop
19.25recommendations to the governor and the legislature designed to maximize the achievement
19.26of all P-20 students while promoting the efficient use of state resources, thereby helping
19.27the state realize the maximum value for its investment. These recommendations may
19.28include, but are not limited to, strategies, policies, or other actions focused on:
19.29    (1) improving the quality of and access to education at all points from preschool
19.30through graduate education;
19.31    (2) improving preparation for, and transitions to, postsecondary education and
19.32work; and
20.1    (3) ensuring educator quality by creating rigorous standards for teacher recruitment,
20.2teacher preparation, induction and mentoring of beginning teachers, and continuous
20.3professional development for career teachers.
20.4    (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal
20.5Education Data System Governance Committee, the Office of Higher Education, and
20.6the Departments of Education and Employment and Economic Development shall
20.7improve and expand the statewide longitudinal education data system (SLEDS) to provide
20.8policymakers, education and workforce leaders, researchers, and members of the public
20.9with data, research, and reports to:
20.10(1) expand reporting on students' educational outcomes;
20.11(2) evaluate the effectiveness of educational and workforce programs; and
20.12(3) evaluate the relationship between education and workforce outcomes.
20.13To the extent possible under federal and state law, research and reports should be
20.14accessible to the public on the Internet, and disaggregated by demographic characteristics,
20.15organization or organization characteristics, and geography.
20.16It is the intent of the legislature that the statewide longitudinal education data system
20.17inform public policy and decision-making. The SLEDS governance committee, with
20.18assistance from staff of the Office of Higher Education, the Department of Education, and
20.19the Department of Employment and Economic Development, shall respond to legislative
20.20committee and agency requests on topics utilizing data made available through the
20.21statewide longitudinal education data system as resources permit. Any analysis of or
20.22report on the data must contain only summary data.
20.23    (c) By January 15 of each year, the partnership shall submit a report to the governor
20.24and to the chairs and ranking minority members of the legislative committees and
20.25divisions with jurisdiction over P-20 education policy and finance that summarizes the
20.26partnership's progress in meeting its goals and identifies the need for any draft legislation
20.27when necessary to further the goals of the partnership to maximize student achievement
20.28while promoting efficient use of resources.

20.29    Sec. 3. Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to read:
20.30    Subd. 7. Reports. (a) Instructional and noninstructional expenditure data and
20.31enrollment data must be submitted in the biennial budget document under section
20.32135A.034. This report must include a description of the methodology for determining
20.33instructional and noninstructional expenditures and estimates of inflation in higher
20.34education and the methodology or index used to determine the inflation rate. The
21.1University of Minnesota and the Minnesota State Colleges and Universities systems shall
21.2include in their biennial budget proposals to the legislature:
21.3    (1) a five-year history of systemwide expenditures, reported by:
21.4    (i) functional areas, including instruction, research, public service, student financial
21.5aid, and auxiliary services, and including direct costs and indirect costs, such as
21.6institutional support, academic support, student services, and facilities management,
21.7associated with each functional area; and
21.8    (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
21.9    (2) a five-year history of the system's total instructional expenditures per full-year
21.10equivalent student, by level of instruction, including upper-division undergraduate,
21.11lower-division undergraduate, graduate, professional, and other categories of instructional
21.12programs offered by the system;
21.13    (3) a five-year history of the system's total revenues by funding source, including
21.14tuition, state operations and maintenance appropriations, state special appropriations, other
21.15restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary
21.16revenue, indirect cost recovery, and any other revenue sources;
21.17    (b) By February 1 of each even-numbered year, the Board of Regents of the University
21.18of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
21.19must submit a report to the chairs of the legislative committees with jurisdiction over
21.20higher education policy and finance. The report must describe the following:
21.21    (1) (4) an explanation describing how state appropriations made to the system in
21.22the previous odd-numbered year biennium were allocated and the methodology used to
21.23determine the allocation;
21.24    (2) (5) data describing how the institution reallocated resources to advance the
21.25priorities set forth in the budget submitted under section 135A.034 and the statewide
21.26objectives under section 135A.011. The information must indicate whether instruction
21.27and support programs received a reduction in or additional resources. The total amount
21.28reallocated must be clearly explained;
21.29    (3) (6) the tuition rates and fees established by the governing board in each of the
21.30past ten years and comparison data for peer institutions and national averages;
21.31    (4) (7) data on the number and proportion of students graduating within four, five,
21.32and six years from universities and within three years from colleges as reported in the
21.33integrated postsecondary education data system. These data must be provided for each
21.34institution by race, ethnicity, and gender. Data and information must be submitted that
21.35describe the system's plan and progress toward attaining the goals set forth in the plan
22.1to increase the number and proportion of students that graduate within four, five, or six
22.2years from a university or within three years from a college;
22.3    (5) (8) data on, and the methodology used to measure, the number of students
22.4traditionally underrepresented in higher education enrolled at the system's institutions.
22.5Data and information must be submitted that describe the system's plan and progress
22.6toward attaining the goals set forth in the plan to increase the recruitment, retention, and
22.7timely graduation of students traditionally underrepresented in higher education; and
22.8    (6) (9) data on the revenue received from all sources to support research or
22.9workforce development activities or the system's efforts to license, sell, or otherwise
22.10market products, ideas, technology, and related inventions created in whole or in part by
22.11the system. Data and information must be submitted that describe the system's plan and
22.12progress toward attaining the goals set forth in the plan to increase the revenue received
22.13to support research or workforce development activities or revenue received from the
22.14licensing, sale, or other marketing and technology transfer activities by the system.
22.15    (c) Instructional expenditure and enrollment data (b) Data required by this
22.16subdivision shall be submitted by the public postsecondary systems to the Minnesota
22.17Office of Higher Education and the Department of Management and Budget and included
22.18in the biennial budget document. The specific data shall be submitted only after the
22.19director of the Minnesota Office of Higher Education has consulted with a data advisory
22.20task force to determine the need, content, and detail of the information. Representatives
22.21from each system, in consultation with the commissioner of management and budget
22.22and the director of the Office of Higher Education, shall develop consistent reporting
22.23practices for this purpose.
22.24    (c) To the extent practicable, each system shall develop the ability to respond to
22.25legislative requests for financial analyses that are more detailed than those required by this
22.26subdivision, including but not limited to analyses that show expenditures or revenues by
22.27institution or program, or in multiple categories of expenditures or revenues, and analyses
22.28that show revenue sources for particular types of expenditures.

22.29    Sec. 4. Minnesota Statutes 2012, section 135A.61, is amended to read:
22.30135A.61 HIGH SCHOOL-TO-COLLEGE DEVELOPMENTAL TRANSITION
22.31PROGRAMS PROGRAM GRANTS.
22.32    Subdivision 1. High school-to-college developmental transition programs
22.33 program grants. All public higher education systems and other higher education
22.34institutions in Minnesota are encouraged to offer (a) The director of the Minnesota Office of
22.35Higher Education shall award competitive matching grants to Minnesota public and private
23.1postsecondary institutions offering research-based high school-to-college developmental
23.2transition programs to prepare students for college-level academic coursework. A program
23.3under this section must, at a minimum, include instruction to develop the skills and
23.4abilities necessary to be ready for college-level coursework when the student enrolls in a
23.5degree, diploma, or certificate program and must address the academic skills identified
23.6as needing improvement by a college readiness assessment completed by the student. A
23.7program Developmental courses offered under this section must not constitute more than
23.8the equivalent of one semester of full-time study occurring in the summer following
23.9high school graduation. The courses completed in a program under this section must be
23.10identified on the student's transcript with a unique identifier to distinguish it them from
23.11other developmental education courses or programs. Courses attended will not count
23.12towards the limit on postsecondary education used for state financial aid programs under
23.13sections 136A.121, subdivision 9, and 136A.125, subdivision 2, paragraph (a), clause (4).
23.14Grants must be awarded to programs that provide instruction and services including,
23.15but not limited to:
23.16(1) summer developmental courses in academic areas requiring remediation;
23.17(2) academic advising, mentoring, and tutoring during the summer program and
23.18throughout the student's first year of enrollment;
23.19(3) interaction with student support services, admissions and financial aid offices; and
23.20(4) orientation to college life, such as study skills or time management.
23.21(b) Grants shall be awarded to eligible postsecondary institutions as defined in
23.22section 136A.103.
23.23(c) Grants shall be awarded for one year and may be renewed for a second year
23.24with documentation to the Minnesota Office of Higher Education of successful program
23.25outcomes.
23.26    Subd. 1a. Eligible students. (a) Eligible students include students who earned a
23.27high school diploma or its equivalent during the academic year immediately preceding the
23.28summer program and who meet one or more of the following criteria:
23.29(1) are counted under section 1124(c) of the Elementary and Secondary Education
23.30Act of 1965 (Title I);
23.31(2) are eligible for free or reduced-price lunch under the National School Lunch Act;
23.32(3) receive assistance under the Temporary Assistance for Needy Families Law (Title
23.33I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
23.34(4) are a member of a group traditionally underrepresented in higher education.
24.1(b) Eligible students include those who met the student eligibility criteria in the
24.2student's final year of high school and plan to enroll in college the academic year following
24.3high school graduation or its equivalency.
24.4    Subd. 1b. Application process. (a) The director of the Minnesota Office of Higher
24.5Education shall develop a grant application process. The director shall attempt to support
24.6projects in a manner that ensures that eligible students throughout the state have access to
24.7program services.
24.8(b) The grant application must include, at a minimum, the following information:
24.9(1) a description of the characteristics of the students to be served reflective of the
24.10need for services listed in subdivision 1;
24.11(2) a description of the services to be provided and a timeline for implementation of
24.12the activities;
24.13(3) a description of how the services provided will improve postsecondary readiness
24.14and support postsecondary retention;
24.15(4) a description of how the services will be evaluated to determine whether the
24.16program goals were met; and
24.17(5) other information as identified by the director.
24.18Grant recipients must specify both program and student outcome goals, and
24.19performance measures for each goal.
24.20    Subd. 1c. Match required. Applicants are required to match the grant amount
24.21dollar-for-dollar. The match may be in cash or an in-kind contribution.
24.22    Subd. 1d. Review committee. The director must establish and convene a grant
24.23selection committee to review applications and award grants. The members of the
24.24committee may include representatives of postsecondary institutions, school districts,
24.25organizations providing college outreach services, and others deemed appropriate by the
24.26director.
24.27    Subd. 2. High school-to-college developmental transition programs evaluation
24.28report. (a) Institutions that offer a high school-to-college developmental transition
24.29program and enroll students that receive a grant under section 136A.121, subdivision 9b,
24.30 must annually submit data and information about the services provided and program
24.31outcomes to the director of the Minnesota Office of Higher Education.
24.32(b) The director must establish and convene a data working group to develop: (1) the
24.33data methodology to be used in evaluating the effectiveness of the programs implemented
24.34to improve the academic performance of participants, including the identification of
24.35appropriate comparison groups; and (2) a timeline for institutions to submit data and
24.36information to the director. The data working group must develop procedures that
25.1ensure consistency in the data collected by each institution. Data group members must
25.2have expertise in data collection processes and the delivery of academic programs to
25.3students, and represent the types of institutions that offer a program under this section.
25.4The data group must assist the director in analyzing and synthesizing institutional data
25.5and information to be included in the evaluation report submitted to the legislature under
25.6subdivision 3.
25.7(c) Participating institutions must specify both program and student outcome goals
25.8and the activities implemented to achieve the goals. The goals must be clearly stated and
25.9measurable, and data collected must enable the director to verify the program has met the
25.10outcome goals established for the program.
25.11(d) The data and information submitted must include, at a minimum, the following:
25.12(1) demographic information about program participants;
25.13(2) names of the high schools from which the students graduated;
25.14(3) the college readiness test used to determine the student was not ready for
25.15college-level academic coursework;
25.16(4) the academic content areas assessed and the scores received by the students on
25.17the college readiness test;
25.18(5) a description of the services, including any supplemental noncredit academic
25.19support services, provided to students;
25.20(6) data on the registration load, courses completed, and grades received by students;
25.21(7) the retention of students from the term they participated in the program to the fall
25.22term immediately following graduation from high school;
25.23(8) information about the student's enrollment in subsequent terms; and
25.24(9) other information specified by the director or the data group that facilitates the
25.25evaluation process.
25.26    Subd. 3. Report to legislature. By March 15 of each year, beginning in 2011,
25.27the director shall submit a report to the committees of the legislature with jurisdiction
25.28over higher education finance and policy that evaluates the effectiveness of programs
25.29in improving the academic performance of students who participated in the transition
25.30programs.
25.31EFFECTIVE DATE.The amendments in this section are effective for programs
25.32offered in the summer of 2014 and thereafter.

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

26.1    Sec. 6. Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:
26.2    Subd. 9. Independent student. "Independent student" has the meaning given it in
26.3 under Title IV of the Higher Education Act of 1965, United States Code, title 20, section
26.41070a-6 as amended, and applicable regulations.

26.5    Sec. 7. Minnesota Statutes 2012, section 136A.121, is amended by adding a
26.6subdivision to read:
26.7    Subd. 20. Institution reporting. (a) Each institution receiving financial aid under
26.8this section must annually report by December 31 to the office the following for its
26.9undergraduate programs:
26.10(1) enrollment, persistence, and graduation data for all students, including aggregate
26.11information on state and federal Pell grant recipients;
26.12(2) the job placement rate and salary and wage information for graduates of each
26.13program that is either designed or advertised to lead to a particular type of job or advertised
26.14or promoted with a claim regarding job placement, as is practicable; and
26.15(3) the student debt to earnings ratio of graduates.
26.16(b) The office shall provide the following on its Internet Web site:
26.17(1) the information submitted by an institution pursuant to paragraph (a), which shall
26.18be made available in a searchable database; and
26.19(2) other information and links that are useful to students and parents who are in
26.20the process of selecting a college or university. This information may include, but is
26.21not limited to, local occupational profiles.
26.22(c) The office shall provide a standard format and instructions for supplying the
26.23information required under paragraph (a).

26.24    Sec. 8. Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read:
26.25    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
26.26the applicant:
26.27    (1) is a resident of the state of Minnesota;
26.28    (2) has a child 12 years of age or younger, or 14 years of age or younger who is
26.29disabled as defined in section 125A.02, and who is receiving or will receive care on a
26.30regular basis from a licensed or legal, nonlicensed caregiver;
26.31    (3) is income eligible as determined by the office's policies and rules, but is not a
26.32recipient of assistance from the Minnesota family investment program;
26.33    (4) has not earned a baccalaureate degree and has been enrolled full time less than
26.34eight semesters or the equivalent;
27.1    (5) is pursuing a nonsectarian program or course of study that applies to an
27.2undergraduate degree, diploma, or certificate;
27.3    (6) is enrolled at least half time in an eligible institution; and
27.4    (7) is in good academic standing and making satisfactory academic progress.
27.5    (b) A student who withdraws from enrollment for active military service or for a
27.6major illness, while under the care of a medical professional, that substantially limits the
27.7student's ability to complete the term is entitled to an additional semester or the equivalent
27.8of grant eligibility and will be considered to be in continuing enrollment status upon return.

27.9    Sec. 9. Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read:
27.10    Subd. 4. Amount and length of grants. (a) The amount of a child care grant
27.11must be based on:
27.12    (1) the income of the applicant and the applicant's spouse;
27.13    (2) the number in the applicant's family, as defined by the office; and
27.14    (3) the number of eligible children in the applicant's family.
27.15    (b) The maximum award to the applicant shall be $2,600 $2,800 for each eligible
27.16child per academic year, except that the campus financial aid officer may apply to the
27.17office for approval to increase grants by up to ten percent to compensate for higher market
27.18charges for infant care in a community. The office shall develop policies to determine
27.19community market costs and review institutional requests for compensatory grant
27.20increases to ensure need and equal treatment. The office shall prepare a chart to show the
27.21amount of a grant that will be awarded per child based on the factors in this subdivision.
27.22The chart shall include a range of income and family size.

27.23    Sec. 10. Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:
27.24    Subd. 2. Definitions. For purposes of sections 136A.231 to 136A.233, the words
27.25defined in this subdivision have the meanings ascribed to them.
27.26    (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
27.27least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
27.28institution.
27.29    (b) "Minnesota resident" means a student who meets the conditions in section
27.30136A.101, subdivision 8 .
27.31    (c) "Financial need" means the need for financial assistance in order to attend a
27.32postsecondary institution as determined by a postsecondary institution according to
27.33guidelines established by the Minnesota Office of Higher Education.
28.1    (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
28.2nonsectarian agency or state institution located in the state of Minnesota, a disabled person
28.3or a person over 65 who employs a student to provide personal services in or about the
28.4person's residence, or a private, for-profit employer employing a student as an intern in a
28.5position directly related to the student's field of study that will enhance the student's
28.6knowledge and skills in that field.
28.7    (e) "Eligible postsecondary institution" means any postsecondary institution eligible
28.8for participation in the Minnesota state grant program as specified in section 136A.101,
28.9subdivision 4
.
28.10    (f) "Independent student" has the meaning given it in under Title IV of the Higher
28.11Education Act of 1965, United States Code, title 20, section 1070a-6 as amended, and
28.12applicable regulations.
28.13    (g) "Half time" for undergraduates has the meaning given in section 136A.101,
28.14subdivision 7b
, and for graduate students is defined by the institution.

28.15    Sec. 11. [136A.50] TRIBAL COLLEGE SUPPLEMENTAL GRANT
28.16ASSISTANCE.
28.17    Subdivision 1. Definitions. (a) As used in this section, the following terms have
28.18the meanings given them.
28.19(b) "Nonbeneficiary student" means a resident of Minnesota who is enrolled in a
28.20tribally controlled college but is not an enrolled member of a federally recognized Indian
28.21tribe.
28.22(c) "Tribally controlled college" means an accredited institution of higher education
28.23located in this state that is formally controlled by or has been formally sanctioned or
28.24chartered by the governing body of a federally recognized Indian tribe, or a combination
28.25of federally recognized Indian tribes. Tribally controlled college does not include any
28.26institution or campus subject to the jurisdiction of the Board of Trustees of the Minnesota
28.27State Colleges and Universities or the Board of Regents of the University of Minnesota.
28.28    Subd. 2. Eligibility; grant assistance. (a) A tribally controlled college is eligible to
28.29receive supplemental grant assistance from the Office of Higher Education, as provided in
28.30this section, for nonbeneficiary student enrollment if the college is not otherwise eligible
28.31to receive federal grant funding for those students under United States Code, title 25,
28.32section 1808.
28.33(b) The office shall make grants to tribally controlled colleges to defray the costs
28.34of education associated with the enrollment of nonbeneficiary students. Grants made
28.35pursuant to this section must be provided directly to the recipient college.
29.1    Subd. 3. Grant application. To receive a grant under this section, a tribally
29.2controlled college must submit an application in the manner required by the Office of
29.3Higher Education. Upon submission of a completed application indicating that the tribally
29.4controlled college is eligible, the office shall distribute to the college, during each year of
29.5the biennium, a grant of $5,300 for each nonbeneficiary student on a full-time equivalent
29.6basis. If the amount appropriated for grants under this section is insufficient to cover
29.7the total amount of grant eligibility, the office shall distribute a prorated amount per
29.8nonbeneficiary student on a full-time equivalent basis.
29.9    Subd. 4. Reporting by recipient institutions. Each tribally controlled college
29.10receiving a grant under this section shall provide to the Office of Higher Education,
29.11on an annual basis, an accurate and detailed account of the expenditures of the grant
29.12funds received by the college, and a copy of the college's most recent audit report and
29.13documentation of the enrollment status and ethnic status of each nonbeneficiary student
29.14for which grant assistance is sought under this section.

29.15    Sec. 12. Minnesota Statutes 2012, section 136A.62, is amended by adding a
29.16subdivision to read:
29.17    Subd. 6. Online platform service. An online platform service is a nondegree
29.18granting entity that provides online access to schools as defined in subdivision 3, to enable
29.19the schools to offer online training, courses, or programs.

29.20    Sec. 13. Minnesota Statutes 2012, section 136A.646, is amended to read:
29.21136A.646 ADDITIONAL SECURITY.
29.22    (a) In the event any registered institution is notified by the United States Department
29.23of Education that it has fallen below minimum financial standards and that its continued
29.24participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
29.25Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
29.26Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
29.27institution shall provide a surety bond conditioned upon the faithful performance of all
29.28contracts and agreements with students in a sum equal to the "letter of credit" required by
29.29the United States Department of Education in the Letter of Credit Alternative, but in no
29.30event shall such bond be less than $10,000 nor more than $250,000.
29.31    (b) In lieu of a bond, the applicant may deposit with the commissioner of
29.32management and budget:
29.33    (1) a sum equal to the amount of the required surety bond in cash; or
30.1    (2) securities, as may be legally purchased by savings banks or for trust funds, in an
30.2aggregate market value equal to the amount of the required surety bond.
30.3    (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
30.4the office and shall be relieved of liability for any breach of condition occurring after
30.5the effective date of cancellation.

30.6    Sec. 14. Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:
30.7    Subd. 8. Disapproval of registration appeal. (a) If a school's degree or use of a
30.8term in its name is disapproved by the office, the school may request a hearing under
30.9chapter 14. The request must be in writing and made to the office within 30 days of the
30.10date the school is notified of the disapproval.
30.11    (b) (a) The office may refuse to renew, revoke, or suspend registration, approval of
30.12a school's degree, or use of a regulated term in its name by giving written notice and
30.13reasons to the school. The school may request a hearing under chapter 14. If a hearing is
30.14requested, no revocation or suspension shall take effect until after the hearing.
30.15    (c) (b) Reasons for revocation or suspension of registration or approval may be
30.16for one or more of the following reasons:
30.17    (1) violating the provisions of sections 136A.61 to 136A.71;
30.18    (2) providing false, misleading, or incomplete information to the office;
30.19    (3) presenting information about the school which is false, fraudulent, misleading,
30.20deceptive, or inaccurate in a material respect to students or prospective students; or
30.21    (4) refusing to allow reasonable inspection or to supply reasonable information after
30.22a written request by the office has been received.
30.23    (c) Any order refusing, revoking, or suspending a school's registration, approval of a
30.24school's degree, or use of a regulated term in the school's name is appealable in accordance
30.25with chapter 14. The request must be in writing and made to the office within 30 days of the
30.26date the school is notified of the action of the office. If a school has been operating and its
30.27registration has been revoked, suspended, or refused by the office, the order is not effective
30.28until the final determination of the appeal, unless immediate effect is ordered by the court.

30.29    Sec. 15. Minnesota Statutes 2012, section 136A.653, is amended by adding a
30.30subdivision to read:
30.31    Subd. 3a. Tuition-free educational courses. A school, including a school using an
30.32online platform service, offering training, courses, or programs is exempt from sections
30.33136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota.
30.34A course will be considered tuition-free if the school charges no tuition and the required
31.1fees and other required charges paid by the student for the course do not exceed two
31.2percent of the most recent average undergraduate tuition and required fees as of January
31.31 of the current year charged for full-time students at all degree-granting institutions as
31.4published annually by the United States Department of Education as of January 1 of each
31.5year. To qualify for an exemption a school or online platform service must prominently
31.6display a notice comparable to the following: "IMPORTANT: Each educational institution
31.7makes its own decision regarding whether to accept completed coursework for credit.
31.8Check with your university or college."

31.9    Sec. 16. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:
31.10    Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor,
31.11a vice-chancellor, or a president, containing terms and conditions of employment. The
31.12terms of the contract must be authorized under a plan approved under section 43A.18,
31.13subdivision 3a
.
31.14(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
31.15contract under this section may provide a liquidated salary amount or other compensation
31.16if a contract is terminated by the board prior to its expiration.
31.17(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
31.18this section may contain a deferred compensation plan made in conformance with section
31.19457(f) of the Internal Revenue Code.
31.20(d) Notwithstanding any provision of the plan approved under section 43A.18,
31.21subdivision 3a, a contract under this section must not authorize or otherwise provide for a
31.22discretionary or mandatory bonus or other performance-based incentive payment.
31.23EFFECTIVE DATE.This section is effective the day following final enactment
31.24and applies to contracts entered into on or after that date.

31.25    Sec. 17. [136F.99] STATEWIDE ELECTRONIC INFRASTRUCTURE;
31.26PORTFOLIO SOLUTIONS.
31.27    Subdivision 1. Collaborative infrastructure. (a) The Department of Employment
31.28and Economic Development, the Department of Education, the Office of Higher
31.29Education, the University of Minnesota, and the Minnesota State Colleges and Universities
31.30shall collaborate to implement an electronic infrastructure to support academic and
31.31workforce success statewide. The infrastructure shall first utilize existing assets, tools, and
31.32services, including but not limited to efolioMinnesota and GPS LifePlan. To facilitate
31.33implementation of this section, the Board of Trustees of the Minnesota State Colleges and
31.34Universities shall support efolioMinnesota and GPS LifePlan until at least June 30, 2015.
32.1(b) To the extent possible, the basic electronic infrastructure shall be available at no
32.2charge to all state residents and to all students attending Minnesota educational institutions.
32.3    Subd. 2. Goals; programs. The Board of Trustees of the Minnesota State Colleges
32.4and Universities may enhance the efolioMinnesota platform to allow, at a minimum,
32.5implementation of:
32.6(1) a portfolio-based individual learning plan solution that includes comprehensive
32.7academic and life planning instruments, to support student transitions to postsecondary
32.8school or to work; and
32.9(2) a student-owned proficiency portfolio solution to support student transitions to
32.10the workplace and employers seeking first-day-work-ready employees.
32.11    Subd. 3. Resources; accountability reports. (a) The Board of Trustees of the
32.12Minnesota State Colleges and Universities may seek and accept contributions from
32.13individuals, businesses, and other organizations to support the goals required by this
32.14section. The parties listed in subdivision 1 are not required to contribute. All contributions
32.15received are appropriated to the Board of Trustees of the Minnesota State Colleges and
32.16Universities and shall be administered as directed by the Board of Trustees.
32.17(b) The Board of Trustees of the Minnesota State Colleges and Universities shall
32.18submit, no later than January 15 of each year, a report to the governor and legislature on
32.19the progress of the Minnesota State Colleges and Universities system's activities related to
32.20implementation of this section.
32.21EFFECTIVE DATE.This section is effective the day following final enactment.

32.22    Sec. 18. Minnesota Statutes 2012, section 137.027, is amended to read:
32.23137.027 APPROPRIATION; FRINGE BENEFITS.
32.24(a) Direct appropriations to the University of Minnesota include money to pay
32.25the employer's share of Social Security, state retirement, and health insurance. Money
32.26provided for these purposes shall be expended only for these purposes and any amounts in
32.27excess of the employer's share shall be returned to the state treasury.
32.28(b) Unless otherwise explicitly provided for in law, direct appropriations to the
32.29University of Minnesota do not include, and may not be used to pay, any mandatory or
32.30discretionary bonus or other performance-based incentive payment provided for in an
32.31employment contract with the president or vice-presidents, chancellors, provosts, vice
32.32provosts, deans, or directors of individual programs.

33.1    Sec. 19. [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
33.2ECONOMY FUNDING PROGRAM.
33.3    Subdivision 1. Establishment. (a) The Minnesota Discovery, Research, and
33.4InnoVation Economy (MnDRIVE) funding program is established to discover new
33.5knowledge through scientific research that will:
33.6(1) advance the state's economy;
33.7(2) leverage opportunities and establish priorities in sectors of state strength and
33.8comparative advantage;
33.9(3) improve the health and wellbeing of Minnesota's citizens;
33.10(4) advance the capacity and competitiveness of existing and emerging food- and
33.11manufacturing-related science and technology industries; and
33.12(5) build a better Minnesota by driving progress and advancing the common good.
33.13(b) The MnDRIVE funding program shall establish priorities by investing in
33.14scientific research that promotes:
33.15(1) programs that can position Minnesota as a leader in engineering, science,
33.16technology, and food-related solutions;
33.17(2) initiatives that support the growth of targeted industry clusters and the
33.18competitiveness of existing Minnesota engineering, science, technology, and food
33.19companies in developing new products and services;
33.20(3) initiatives that can result in creating new Minnesota-based companies;
33.21(4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
33.22the incidence of disease, and transform how we prevent, treat, and cure diseases; and
33.23(5) initiatives that can secure a safer environment, seek sustainable energy solutions,
33.24and prevent, diagnose, and treat environmental problems associated with Minnesota
33.25industry.
33.26    Subd. 2. Funding requests. The Board of Regents of the University of Minnesota,
33.27acting alone or in partnership with other public or private entities, is requested to submit
33.28investment proposals consistent with the goals and objectives of the MnDRIVE funding
33.29program as part of the Board of Regents biennial budget request to the legislature. The
33.30Board of Regents must give consideration to investments in existing scientific research
33.31programs that meet these guidelines but may require additional resources in order to
33.32preserve or accelerate Minnesota into a national or global leadership position. The
33.33governor shall submit a recommendation to the legislature regarding funding requests
33.34submitted by the Board of Regents.
33.35    Subd. 3. Reporting. By March 1 of each odd-numbered year, the Board of Regents
33.36of the University of Minnesota must provide to the chairs and ranking minority members
34.1of the legislative committees with primary jurisdiction over higher education policy and
34.2finance a summary report of investments and accomplishments related to funds received
34.3from the state under subdivision 2 from the prior biennium.
34.4EFFECTIVE DATE.This section is effective the day following final enactment.

34.5    Sec. 20. Minnesota Statutes 2012, section 141.35, is amended to read:
34.6141.35 EXEMPTIONS.
34.7    Sections 141.21 to 141.32 shall not apply to the following:
34.8    (1) public postsecondary institutions;
34.9    (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
34.10    (3) schools of nursing accredited by the state Board of Nursing or an equivalent
34.11public board of another state or foreign country;
34.12    (4) private schools complying with the requirements of section 120A.22, subdivision
34.134
;
34.14    (5) courses taught to students in a valid apprenticeship program taught by or
34.15required by a trade union;
34.16    (6) schools exclusively engaged in training physically or mentally disabled persons
34.17for the state of Minnesota;
34.18    (7) schools licensed by boards authorized under Minnesota law to issue licenses
34.19except schools required to obtain a private career school license due to the use of
34.20"academy," "institute," "college," or "university" in their names;
34.21    (8) schools and educational programs, or training programs, contracted for by
34.22persons, firms, corporations, government agencies, or associations, for the training of their
34.23own employees, for which no fee is charged the employee;
34.24    (9) schools engaged exclusively in the teaching of purely avocational, recreational,
34.25or remedial subjects as determined by the office except schools required to obtain a private
34.26career school license due to the use of "academy," "institute," "college," or "university" in
34.27their names unless the school used "academy" or "institute" in its name prior to August
34.281, 2008;
34.29    (10) classes, courses, or programs conducted by a bona fide trade, professional, or
34.30fraternal organization, solely for that organization's membership;
34.31    (11) programs in the fine arts provided by organizations exempt from taxation
34.32under section 290.05 and registered with the attorney general under chapter 309. For
34.33the purposes of this clause, "fine arts" means activities resulting in artistic creation or
34.34artistic performance of works of the imagination which are engaged in for the primary
35.1purpose of creative expression rather than commercial sale or employment. In making
35.2this determination the office may seek the advice and recommendation of the Minnesota
35.3Board of the Arts;
35.4    (12) classes, courses, or programs intended to fulfill the continuing education
35.5requirements for licensure or certification in a profession, that have been approved by a
35.6legislatively or judicially established board or agency responsible for regulating the practice
35.7of the profession, and that are offered exclusively to an individual practicing the profession;
35.8    (13) classes, courses, or programs intended to prepare students to sit for
35.9undergraduate, graduate, postgraduate, or occupational licensing and occupational
35.10entrance examinations;
35.11    (14) classes, courses, or programs providing 16 or fewer clock hours of instruction
35.12that are not part of the curriculum for an occupation or entry level employment except
35.13schools required to obtain a private career school license due to the use of "academy,"
35.14"institute," "college," or "university" in their names;
35.15    (15) classes, courses, or programs providing instruction in personal development,
35.16modeling, or acting;
35.17    (16) training or instructional programs, in which one instructor teaches an individual
35.18student, that are not part of the curriculum for an occupation or are not intended to prepare
35.19a person for entry level employment; and
35.20    (17) schools with no physical presence in Minnesota, as determined by the office,
35.21engaged exclusively in offering distance instruction that are located in and regulated by
35.22other states or jurisdictions; and
35.23    (18) schools providing exclusively training, instructional programs, or courses
35.24where tuition, fees, and any other charges for a student to participate do not exceed $100.

35.25    Sec. 21. Minnesota Statutes 2012, section 197.775, subdivision 1, is amended to read:
35.26    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
35.27section.
35.28(b) "Commissioner" means the commissioner of veterans affairs.
35.29(c) "State college or university" means a unit of the University of Minnesota or
35.30Minnesota State Colleges and Universities.
35.31(d) "Veteran" includes the definition provided in section 197.447, and also includes
35.32any person serving in active service, as defined in section 190.05, subdivision 5.

35.33    Sec. 22. Minnesota Statutes 2012, section 197.775, subdivision 2, is amended to read:
36.1    Subd. 2. Recognition of courses. (a) Minnesota State Colleges and Universities
36.2must recognize courses and award educational credits for courses that were part of a
36.3veteran's military training or service if the courses meet the standards of the American
36.4Council on Education or equivalent standards for awarding academic credits. In
36.5recognizing courses and awarding educational credits, consideration must be given to
36.6academic skills developed in all aspects of the training or service course curriculum, and
36.7may not be limited solely to the physical fitness or activity components of the course.
36.8(b) The University of Minnesota and private colleges and universities in Minnesota
36.9are encouraged to recognize courses and award educational credits for courses that were
36.10part of a veteran's military training or service if the courses meet the standards of the
36.11American Council on Education or equivalent standards for awarding academic credits.
36.12 In recognizing courses and awarding educational credits, the University of Minnesota
36.13and private colleges and universities in Minnesota are encouraged to consider academic
36.14skills developed in all aspects of the training or service course curriculum, and not limit
36.15consideration solely to the physical fitness or activity components of the course.

36.16    Sec. 23. Minnesota Statutes 2012, section 197.775, is amended by adding a subdivision
36.17to read:
36.18    Subd. 2a. Recognition of veteran status. (a) With the policy in this subdivision,
36.19the state recognizes veterans' selfless sacrifices in service to our nation, and their varied
36.20and specialized military education and training, as well as the need for their timely and
36.21meaningful reintegration into civilian society. The state also recognizes the special value
36.22of veterans in furthering the goal of creating a diverse student population in the state's
36.23postsecondary institutions.
36.24(b) Minnesota State Colleges and Universities must adopt a policy recognizing,
36.25for applicants who are veterans, the applicant's veteran status as a positive factor in
36.26determining whether to grant admission to a graduate or professional academic degree
36.27program. The Board of Trustees must report to the chairs and ranking minority members
36.28of the legislative committees and divisions with jurisdiction over higher education policy
36.29and finance annually by February 15 on the number of veterans who apply for a graduate
36.30or professional academic degree program and the number accepted.
36.31(c) The University of Minnesota, and private colleges and universities in Minnesota,
36.32are encouraged to adopt a policy recognizing, for applicants who are veterans, the
36.33applicant's veteran status as a positive factor in determining whether to grant admission to
36.34an undergraduate, graduate, or professional academic degree program.

37.1    Sec. 24. Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:
37.2    Subdivision 1. Use of data. (a) Except as provided by this section, data gathered
37.3from any person under the administration of the Minnesota Unemployment Insurance Law
37.4are private data on individuals or nonpublic data not on individuals as defined in section
37.513.02 , subdivisions 9 and 12, and may not be disclosed except according to a district court
37.6order or section 13.05. A subpoena is not considered a district court order. These data
37.7may be disseminated to and used by the following agencies without the consent of the
37.8subject of the data:
37.9    (1) state and federal agencies specifically authorized access to the data by state
37.10or federal law;
37.11    (2) any agency of any other state or any federal agency charged with the
37.12administration of an unemployment insurance program;
37.13    (3) any agency responsible for the maintenance of a system of public employment
37.14offices for the purpose of assisting individuals in obtaining employment;
37.15    (4) the public authority responsible for child support in Minnesota or any other
37.16state in accordance with section 256.978;
37.17    (5) human rights agencies within Minnesota that have enforcement powers;
37.18    (6) the Department of Revenue to the extent necessary for its duties under Minnesota
37.19laws;
37.20    (7) public and private agencies responsible for administering publicly financed
37.21assistance programs for the purpose of monitoring the eligibility of the program's recipients;
37.22    (8) the Department of Labor and Industry and the Division of Insurance Fraud
37.23Prevention in the Department of Commerce for uses consistent with the administration of
37.24their duties under Minnesota law;
37.25    (9) local and state welfare agencies for monitoring the eligibility of the data subject
37.26for assistance programs, or for any employment or training program administered by those
37.27agencies, whether alone, in combination with another welfare agency, or in conjunction
37.28with the department or to monitor and evaluate the statewide Minnesota family investment
37.29program by providing data on recipients and former recipients of food stamps or food
37.30support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
37.31under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;
37.32    (10) local and state welfare agencies for the purpose of identifying employment,
37.33wages, and other information to assist in the collection of an overpayment debt in an
37.34assistance program;
38.1    (11) local, state, and federal law enforcement agencies for the purpose of ascertaining
38.2the last known address and employment location of an individual who is the subject of
38.3a criminal investigation;
38.4    (12) the United States Immigration and Customs Enforcement has access to data on
38.5specific individuals and specific employers provided the specific individual or specific
38.6employer is the subject of an investigation by that agency;
38.7    (13) the Department of Health for the purposes of epidemiologic investigations;
38.8    (14) the Department of Corrections for the purpose of preconfinement and
38.9postconfinement employment tracking of committed offenders for the purpose of case
38.10planning; and
38.11    (15) the state auditor to the extent necessary to conduct audits of job opportunity
38.12building zones as required under section 469.3201.; and
38.13    (16) the Office of Higher Education for purposes of supporting program
38.14improvement, system evaluation, and research initiatives including the Statewide
38.15Longitudinal Education Data System.
38.16    (b) Data on individuals and employers that are collected, maintained, or used by
38.17the department in an investigation under section 268.182 are confidential as to data
38.18on individuals and protected nonpublic data not on individuals as defined in section
38.1913.02 , subdivisions 3 and 13, and must not be disclosed except under statute or district
38.20court order or to a party named in a criminal proceeding, administrative or judicial, for
38.21preparation of a defense.
38.22    (c) Data gathered by the department in the administration of the Minnesota
38.23unemployment insurance program must not be made the subject or the basis for any
38.24suit in any civil proceedings, administrative or judicial, unless the action is initiated by
38.25the department.

38.26    Sec. 25. Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:
38.27    Subd. 4. Renewal. Each award must be given for one academic year and is
38.28renewable for a maximum of eight semesters or the equivalent. A student who withdraws
38.29from enrollment for active military service or for a major illness, while under the care
38.30of a medical professional, that substantially limits the student's ability to complete the
38.31term is entitled to an additional semester or the equivalent of grant eligibility. An award
38.32must not be given to a dependent child who is 23 years of age or older on the first day of
38.33the academic year.

39.1    Sec. 26. HIGHER EDUCATION INSTITUTIONAL PARTICIPATION IN
39.2STATE STUDENT AID PROGRAMS; REPORT.
39.3The Minnesota Office of Higher Education must report by February 1, 2014, to the
39.4chairs and ranking minority members of the legislative committees and divisions with
39.5the primary jurisdiction over higher education finance on the available and appropriate
39.6data that should be used as statutory criteria to determine whether a higher education
39.7institution should be allowed to participate in state financial aid programs. Among other
39.8data, the data could include an institution's completion/graduation rates, student debt to
39.9income ratios, and employment rates related to field of study. The office must consult
39.10regularly with the higher education finance committees or divisions about the purpose
39.11and content of the report.

39.12    Sec. 27. UNIVERSITY OF MINNESOTA REPORTS.
39.13    Subdivision 1. Medical school capacity. The Board of Regents of the University
39.14of Minnesota must report, by November 1, 2013, to the legislative committees and
39.15divisions with primary jurisdiction over higher education finance and policy the following
39.16information with respect to its medical schools:
39.17(1) the number of applicants seeking admission to the school for the academic term
39.18commencing in the fall of 2013 and the number admitted;
39.19(2) the number of applicants admitted to the school for each of the fall academic
39.20terms commencing between 2000 and 2012;
39.21(3) the number of school graduates projected for each of the next ten years;
39.22(4) the number of school graduates projected to remain and practice in Minnesota
39.23after graduation for each of the next ten years; and
39.24(5) plans of the university to increase the capacity of the school.
39.25The report must include the most recent and accepted analysis concerning the need
39.26for physicians in Minnesota in the future, including time frames of the next five, ten, 15,
39.27and 20 years. The need must be stated in aggregate and in specialty practice areas.
39.28    Subd. 2. STEM programs. The Board of Regents of the University of Minnesota
39.29must report, by November 1, 2013, to the legislative committees and divisions with
39.30primary jurisdiction over higher education finance and policy with respect to its
39.31undergraduate science, technology, engineering, and mathematics programs on the Twin
39.32Cities campus the following information:
39.33(1) the number of applicants seeking admission to those programs for the academic
39.34term commencing in the fall of 2013 and the number admitted;
40.1(2) the percentage of students that graduate from the programs who remain in
40.2Minnesota both historically and projected into the future; and
40.3(3) plans to expand the capacity of the programs.
40.4The report must include the most recent and accepted analysis of the projected
40.5need of employers within the state for graduates of science, technology, engineering, and
40.6mathematics programs in the future, including times frames of five, ten, 15, and 20 years.
40.7    Subd. 3. University administrative costs. (a) The Board of Regents of the
40.8University of Minnesota must, within 45 days of its receipt of the report or study, provide
40.9to the chairs and ranking minority members of the legislative committees and divisions
40.10with jurisdiction over higher education finance, a report currently expected to be received
40.11by the university in July 2013, concerning what is commonly known as a spans and
40.12layers analysis by Sibson Consulting and an administrative services benchmarking and
40.13diagnostic study expected to be done in May 2013, by Huron Consulting.
40.14(b) The Board of Regents of the University of Minnesota must provide to the chairs
40.15and ranking minority members of the legislative committees with jurisdiction over higher
40.16education finance a plan to lower its overall costs based on its work with Huron Consulting
40.17concerning administrative services benchmarking and diagnostic study within 90 days
40.18of its receipt of the final report from Huron Consulting. The board must periodically
40.19update the committees and minority members on the progress of the analysis and any
40.20preliminary findings or recommendations.

40.21    Sec. 28. MENTAL HEALTH ISSUES SUMMIT.
40.22The Board of Trustees of the Minnesota State Colleges and Universities, in
40.23cooperation with the commissioner of human services, shall convene a summit of
40.24representatives of the Minnesota State Colleges and Universities, the University of
40.25Minnesota, private colleges, mental health professionals, special education representatives,
40.26children and adult mental health advocates and providers, and community mental health
40.27centers. The summit shall develop a comprehensive workforce development plan to:
40.28(1) increase the number of mental health professionals and practitioners;
40.29(2) ensure appropriate course work and training experience; and
40.30(3) increase the number of culturally diverse mental health professionals and
40.31practitioners.
40.32The plan required by this section shall be submitted to the chairs and ranking minority
40.33members of the legislative committees responsible for health and human services policy
40.34and higher education policy no later than January 15, 2015.
41.1EFFECTIVE DATE.This section is effective the day following final enactment.

41.2    Sec. 29. REVISOR'S INSTRUCTION.
41.3The revisor of statutes shall change the term "director" as it relates to the director
41.4of the Minnesota Office of Higher Education to "commissioner" wherever in Minnesota
41.5Statutes or Minnesota Rules the term appears.

41.6    Sec. 30. REPEALER.
41.7Minnesota Statutes 2012, sections 136A.031, subdivision 2; and 136A.121,
41.8subdivision 9b, are repealed.

41.9ARTICLE 3
41.10STATE GRANT

41.11    Section 1. Minnesota Statutes 2012, section 136A.101, subdivision 5a, is amended to
41.12read:
41.13    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means
41.14the amount of a family's contribution to a student's cost of attendance, as determined by a
41.15federal need analysis. For dependent students, the assigned family responsibility is 96
41.16percent of the parental contribution. For independent students with dependents other than
41.17a spouse, the assigned family responsibility is 86 percent of the student contribution.
41.18For independent students without dependents other than a spouse, the assigned family
41.19responsibility is 68 50 percent of the student contribution.

41.20    Sec. 2. Minnesota Statutes 2012, section 136A.121, subdivision 5, is amended to read:
41.21    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of
41.22responsibility for covering the recognized cost of attendance by the applicant, the
41.23applicant's family, and the government. The amount of a financial stipend must not
41.24exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
41.25deducting the following:
41.26(1) the assigned student responsibility of at least 46 50 percent of the cost of
41.27attending the institution of the applicant's choosing;
41.28(2) the assigned family responsibility as defined in section 136A.101; and
41.29(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
41.30The minimum financial stipend is $100 per academic year.

42.1    Sec. 3. STATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
42.2EXPENSE ALLOWANCE.
42.3(a) For the purposes of the state grant program under Minnesota Statutes, section
42.4136A.121, for the biennium ending June 30, 2015, the tuition maximum is $13,000 each
42.5fiscal year of the biennium for students in four-year programs, and $5,808 in each fiscal
42.6year of the biennium for students in two-year programs.
42.7(b) The living and miscellaneous expense allowance for the state grant program
42.8under Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set
42.9at $7,900 for each fiscal year of the biennium.

42.10    Sec. 4. STATE GRANT AWARD CALCULATION; MNSCU PART-TIME
42.11STUDENTS.
42.12(a) State grant awards under Minnesota Statutes, section 136A.121, for the biennium
42.13ending June 30, 2015, made from appropriations for that biennium for part-time students
42.14attending a Minnesota state college and university system institution shall be modified
42.15as provided by this section. All other provisions of law and rule applying to state grant
42.16awards not inconsistent with this section shall apply to awards to those part-time students.
42.17(b) For a student registering for less than full-time, the assigned family responsibility
42.18is the amount determined for a full-time student under Minnesota Statutes, section
42.19136A.101, subdivision 5a, prorated by the percent of full-time for which a student is
42.20enrolled.

42.21ARTICLE 4
42.22PROSPERITY ACT

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

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

43.16    Sec. 3. Minnesota Statutes 2012, section 136A.101, subdivision 8, is amended to read:
43.17    Subd. 8. Resident student. "Resident student" means a student who meets one of
43.18the following conditions:
43.19    (1) a student who has resided in Minnesota for purposes other than postsecondary
43.20education for at least 12 months without being enrolled at a postsecondary educational
43.21institution for more than five credits in any term;
43.22    (2) a dependent student whose parent or legal guardian resides in Minnesota at the
43.23time the student applies;
43.24    (3) a student who graduated from a Minnesota high school, if the student was a
43.25resident of Minnesota during the student's period of attendance at the Minnesota high school
43.26and the student is physically attending a Minnesota postsecondary educational institution;
43.27    (4) a student who, after residing in the state for a minimum of one year, earned a
43.28high school equivalency certificate in Minnesota;
43.29    (5) a member, spouse, or dependent of a member of the armed forces of the United
43.30States stationed in Minnesota on active federal military service as defined in section
43.31190.05 , subdivision 5c;
43.32    (6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
43.33is a Minnesota resident;
44.1    (7) a person or spouse of a person who relocated to Minnesota from an area that
44.2is declared a presidential disaster area within the preceding 12 months if the disaster
44.3interrupted the person's postsecondary education; or
44.4    (8) a person defined as a refugee under United States Code, title 8, section
44.51101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
44.6continued to reside in Minnesota; or
44.7    (9) a student eligible for resident tuition under section 135A.043.
44.8EFFECTIVE DATE.This section is effective July 1, 2013, and applies to school
44.9terms commencing on or after July 1, 2013.

44.10    Sec. 4. REPEALER.
44.11Minnesota Rules, part 4830.0100, subpart 5, item F, is repealed.
44.12EFFECTIVE DATE.This section is effective July 1, 2013.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569