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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.

Current Version - 3rd Engrossment

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

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text beginSUMMARY OF APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Summary By Fund. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by fund, made in this article.
new text end

new text begin SUMMARY BY FUND
new text end
new text begin 2014
new text end
new text begin 2015
new text end
new text begin Total
new text end
new text begin General
new text end
new text begin $
new text end
new text begin 1,393,096,000
new text end
new text begin $
new text end
new text begin 1,422,165,000
new text end
new text begin $
new text end
new text begin 2,815,261,000
new text end
new text begin Health Care Access
new text end
new text begin 2,157,000
new text end
new text begin 2,157,000
new text end
new text begin 4,314,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,395,253,000
new text end
new text begin $
new text end
new text begin 1,424,322,000
new text end
new text begin $
new text end
new text begin 2,819,575,000
new text end

new text begin Subd. 2. new text end

new text begin Summary By Agency - All Funds. new text end

new text begin The amounts shown in this subdivision
summarize direct appropriations, by agency, made in this article.
new text end

new text begin SUMMARY BY AGENCY - ALL FUNDS
new text end
new text begin 2014
new text end
new text begin 2015
new text end
new text begin Total
new text end
new text begin Minnesota Office of Higher
Education
new text end
new text begin $
new text end
new text begin 227,031,000
new text end
new text begin $
new text end
new text begin 224,572,000
new text end
new text begin $
new text end
new text begin 451,603,000
new text end
new text begin Board of Trustees of the
Minnesota State Colleges and
Universities
new text end
new text begin 587,915,000
new text end
new text begin 605,143,000
new text end
new text begin 1,193,058,000
new text end
new text begin Board of Regents of the
University of Minnesota
new text end
new text begin 578,956,000
new text end
new text begin 593,256,000
new text end
new text begin 1,172,212,000
new text end
new text begin Mayo Clinic
new text end
new text begin 1,351,000
new text end
new text begin 1,351,000
new text end
new text begin 2,702,000
new text end
new text begin Total
new text end
new text begin $
new text end
new text begin 1,395,253,000
new text end
new text begin $
new text end
new text begin 1,424,322,000
new text end
new text begin $
new text end
new text begin 2,819,575,000
new text end

Sec. 2. new text beginHIGHER EDUCATION APPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2014" and "2015" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2014, or
June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
year 2015. "The biennium" is fiscal years 2014 and 2015.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2014
new text end
new text begin 2015
new text end

Sec. 3. new text beginMINNESOTA OFFICE OF HIGHER
EDUCATION
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 227,031,000
new text end
new text begin $
new text end
new text begin 224,572,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Grants
new text end

new text begin 179,141,000
new text end
new text begin 176,781,000
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 3. new text end

new text begin Child Care Grants
new text end

new text begin 6,684,000
new text end
new text begin 6,684,000
new text end

new text begin Subd. 4. new text end

new text begin State Work-Study
new text end

new text begin 14,502,000
new text end
new text begin 14,502,000
new text end

new text begin Subd. 5. new text end

new text begin Interstate Tuition Reciprocity
new text end

new text begin 11,017,000
new text end
new text begin 11,018,000
new text end

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

new text begin Subd. 6. new text end

new text begin Safety Officer's Survivors
new text end

new text begin 100,000
new text end
new text begin 100,000
new text end

new text begin This appropriation is to provide educational
benefits under Minnesota Statutes, section
299A.45, to eligible dependent children and
to the spouses of public safety officers killed
in the line of duty.
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 7. new text end

new text begin Indian Scholarships
new text end

new text begin 3,100,000
new text end
new text begin 3,100,000
new text end

new text begin The director must contract with or employ
at least one person with demonstrated
competence in American Indian culture and
residing in or near the city of Bemidji to
assist students with the scholarships under
Minnesota Statutes, section 136A.126, and
with other information about financial aid for
which the students may be eligible. Bemidji
State University must provide office space
at no cost to the Minnesota Office of Higher
Education for purposes of administering the
American Indian scholarship program under
Minnesota Statutes, section 136A.126. This
appropriation includes funding to administer
the American Indian scholarship program.
new text end

new text begin Subd. 8. new text end

new text begin Tribal College Grants
new text end

new text begin 150,000
new text end
new text begin 150,000
new text end

new text begin For tribal college assistance grants under
new Minnesota Statutes, section 136A.50.
new text end

new text begin Subd. 9. new text end

new text begin High School-to-College Developmental
Transition Grants
new text end

new text begin 100,000
new text end
new text begin 100,000
new text end

new text begin For grants under Minnesota Statutes, section
135A.61, for the high school-to-college
developmental transition program grants.
new text end

new text begin Subd. 10. new text end

new text begin Intervention for College Attendance
Program Grants
new text end

new text begin 671,000
new text end
new text begin 671,000
new text end

new text begin For the intervention for college attendance
program under Minnesota Statutes, section
136A.861.
new text end

new text begin This appropriation includes funding to
administer the intervention for college
attendance program grants.
new text end

new text begin Subd. 11. new text end

new text begin Student-Parent Information
new text end

new text begin 122,000
new text end
new text begin 122,000
new text end

new text begin Subd. 12. new text end

new text begin Get Ready
new text end

new text begin 180,000
new text end
new text begin 180,000
new text end

new text begin Subd. 13. new text end

new text begin Midwest Higher Education Compact
new text end

new text begin 95,000
new text end
new text begin 95,000
new text end

new text begin Subd. 14. new text end

new text begin Minnesota Minority Partnership
new text end

new text begin 45,000
new text end
new text begin 45,000
new text end

new text begin Subd. 15. new text end

new text begin United Family Medicine Residency
Program
new text end

new text begin 351,000
new text end
new text begin 351,000
new text end

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

new text begin Subd. 16. new text end

new text begin MnLINK Gateway and Minitex
new text end

new text begin 5,905,000
new text end
new text begin 5,905,000
new text end

new text begin Subd. 17. new text end

new text begin Statewide Longitudinal Education
Data System
new text end

new text begin 882,000
new text end
new text begin 882,000
new text end

new text begin $582,000 in fiscal year 2014 and $582,000
in fiscal year 2015 are appropriated to the
Office of Higher Education for transfer
to the Office of Enterprise Technology to
maintain infrastructure of the Statewide
Longitudinal Education Data System and
to acquire additional data through purchase
and development. This transfer to the Office
of Enterprise Technology is onetime. Any
ongoing information technology support
or costs for the Statewide Longitudinal
Education Data System will be incorporated
into the service level agreement and will be
paid to the Office of Enterprise Technology
by the Office of Higher Education under
the rates and mechanism specified in that
agreement.
new text end

new text begin Subd. 18. new text end

new text begin Hennepin County Medical Center
new text end

new text begin 645,000
new text end
new text begin 645,000
new text end

new text begin For transfer to Hennepin County Medical
Center for graduate family medical education
programs at Hennepin County Medical
Center.
new text end

new text begin Subd. 19. new text end

new text begin Teach for America
new text end

new text begin 750,000
new text end
new text begin 750,000
new text end

new text begin For the purpose of supporting Teach for
America activities in Minnesota and must
not be used for teaching services performed
outside Minnesota. The appropriation shall
be used for:
new text end

new text begin (1) expenses related to the recruitment,
selection, and training of Teach for America
corps members;
new text end

new text begin (2) ongoing professional development and
support of Teach for America corps members;
new text end

new text begin (3) ongoing alumni support; and
new text end

new text begin (4) management and operational support,
development, and central services, including
finance, technology, and human services.
new text end

new text begin The appropriation for fiscal year 2015 is not
available until the appropriation for fiscal
year 2014 is matched by $2,121,000 from
nonstate sources.
new text end

new text begin Teach for America must by February 1, 2015,
report to the chairs and ranking minority
members of the legislative committees
and divisions with jurisdiction over higher
education on activities funded by this
appropriation. Specifically, and without
limitation, the report must include a report
on the number of teachers of color funded
and on the success of the teaching activities.
To the extent possible, success must be
measured using the Minnesota teachers
development and evaluation program.
new text end

new text begin Subd. 20. new text end

new text begin Prosperity Act.
new text end

new text begin $100,000 in fiscal year 2014 is appropriated
from the general fund to the Office of Higher
Education for the information technology
costs associated with the implementation
of the Prosperity Act. This is a onetime
appropriation.
new text end

new text begin Subd. 21. new text end

new text begin Agency Administration
new text end

new text begin 2,491,000
new text end
new text begin 2,491,000
new text end

new text begin Subd. 22. new text end

new text begin Balances Forward
new text end

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

new text begin Subd. 23. new text end

new text begin Transfers
new text end

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

Sec. 4. new text beginBOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 587,915,000
new text end
new text begin $
new text end
new text begin 605,143,000
new text end

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

new text begin Subd. 2. new text end

new text begin Central Office and Shared Services
Unit
new text end

new text begin 33,074,000
new text end
new text begin 33,074,000
new text end

new text begin For the Office of the Chancellor and the
Shared Services Division.
new text end

new text begin Subd. 3. new text end

new text begin Operations and Maintenance
new text end

new text begin 550,726,000
new text end
new text begin 567,954,000
new text end

new text begin This appropriation includes $25,500,000 in
fiscal year 2014 and $52,500,000 in fiscal
year 2015 for student tuition relief. The
Board of Trustees may not set the tuition
rate in any undergraduate degree-granting
program for the 2013-2014 and 2014-2015
academic years at a rate greater than the
2012-2013 academic year rate. The student
tuition relief may not be offset by increases
in mandatory fees, charges, or other
assessments to the student.
new text end

new text begin To the extent that appropriations under
this subdivision are insufficient to meet
obligations contained in a labor or program
contract, the Board of Trustees shall fund
those obligations through reductions in costs
associated with central administration of
the system and executive administration of
individual campuses, or through reallocation
of nonstate funds received by the system.
These outstanding obligations may not be
funded through reduction in any program or
service that directly impacts students or that
is newly-authorized by the legislature for the
2014-2015 biennium, or through increased
fees or costs directly assessed to students.
new text end

new text begin $17,000,000 in fiscal year 2014 is for
retention of talented faculty and staff. No
later than April 1, 2014, the Board of Trustees
must report to the legislative committees with
jurisdiction over higher education finance
and policy on the expenditure of these funds.
The report must include:
new text end

new text begin (1) the aggregate number of positions retained
systemwide, and by individual campus;
new text end

new text begin (2) the criteria used to determine whether a
position qualified for retention funds from
this appropriation;
new text end

new text begin (3) the allocation of this appropriation
among employment categories including,
but not limited to, central administrative
staff, executive administration on individual
campuses, directors or chairs of individual
programs and departments, faculty, academic
support and student services staff, auxiliary
services, and other employment categories as
appropriate, and the average compensation
increase for positions within each category;
new text end

new text begin (4) an itemized accounting of this
appropriation's allocation by individual
employment position, including each
position's job title, the full compensation
and benefit structure for that position before
and after this appropriation is allocated,
the percent increase in compensation and
benefits for that position as a result of
this appropriation, and data comparing the
compensation and benefit structure offered
with similar positions at peer institutions; and
new text end

new text begin (5) the number of talented faculty and staff
positions targeted for retention that were not
able to be retained, and the reasons those
positions were not retained.
new text end

new text begin $18,000 each year is for transfer to the Cook
County Higher Education Board to provide
educational programming and academic
support services to remote regions in
northeastern Minnesota. This appropriation
is in addition to the $102,000 per fiscal year
this project currently receives. The project
shall continue to provide information to the
Board of Trustees on the number of students
served, credit hours delivered, and services
provided to students. The base appropriation
under this paragraph is $120,000 each year.
new text end

new text begin $7,278,000 in fiscal year 2015 is for a
leveraged equipment program. For the
purpose of this section, "equipment" means
equipment for instructional purposes for
programs that the board determines would
produce graduates with skills for which there
is a high employer need within the state. An
equipment acquisition may be made under
this appropriation only if matched by cash or
in-kind contributions from nonstate sources.
new text end

new text begin No later than January 15, 2015, the Board
of Trustees shall submit a report to the
legislative committees with oversight over
higher education finance and policy on the
expenditure of these funds to date. The
reports must also list each donor, and the
amount contributed by the donor, or in the
case of an in-kind contribution, the nature
and value of the contribution, received to
date for purposes of the required match.
new text end

new text begin $50,000 in fiscal year 2014 is to convene
a mental health issues summit. This is a
onetime appropriation.
new text end

new text begin Five percent of the fiscal year 2015
appropriation in this subdivision is available
in fiscal year 2015 when the Board of
Trustees of the Minnesota State Colleges and
Universities (MnSCU) demonstrates to the
commissioner of management and budget
that the board has met at least three of the
following five performance goals:
new text end

new text begin (1) increase by at least four percent in
fiscal year 2013, compared to fiscal year
2010, graduates or degrees, diplomas, and
certificates conferred;
new text end

new text begin (2) increase by at least one percent the fall
2013 persistence and completion rate for fall
2012 entering students compared to the fall
2010 rate for fall 2009 entering students;
new text end

new text begin (3) increase by at least four percent the fiscal
year 2013 related employment rate for 2012
graduates compared to the 2011 rate for 2010
graduates;
new text end

new text begin (4) by 2014, MnSCU must collect data on
the number of Open Educational Resources
(OER) tools and services offered and
formulate a plan to actualize a one percent
reduction in expenses directly related to the
cost of instruction incurred by students; and
new text end

new text begin (5) reallocate $22,000,000 that became
available through expense realignment in
fiscal year 2014.
new text end

new text begin "Open Educational Resources" includes,
but is not limited to, textbooks, study
guides, worksheets, journals, video, audio
recordings, massive open online courses, or
other innovative course configuration.
new text end

new text begin "Cost of instruction" means average tuition,
average fees, average cost to student for
textbooks and related course material.
new text end

new text begin By August 1, 2013, the Board of Trustees
and the Minnesota Office of Higher
Education must agree on specific numerical
indicators and definitions for each of the five
goals that will be used to demonstrate the
Minnesota State Colleges and Universities'
attainment of each goal. On or before April
1, 2014, the Board of Trustees must report
to the legislative committees with primary
jurisdiction over higher education finance and
policy the progress of the Minnesota State
Colleges and Universities toward attaining
the goals. The appropriation base for the
next biennium shall include appropriations
not made available under this subdivision for
failure to meet performance goals.
new text end

new text begin Subd. 4. new text end

new text begin Learning Network of Minnesota
new text end

new text begin 4,115,000
new text end
new text begin 4,115,000
new text end

Sec. 5. new text beginBOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 578,956,000
new text end
new text begin $
new text end
new text begin 593,256,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2014
new text end
new text begin 2015
new text end
new text begin General
new text end
new text begin 576,799,000
new text end
new text begin 591,099,000
new text end
new text begin Health Care Access
new text end
new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

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

new text begin Subd. 2. new text end

new text begin Operations and Maintenance
new text end

new text begin 515,211,000
new text end
new text begin 529,511,000
new text end

new text begin This appropriation includes funding for
operation and maintenance of the system.
new text end

new text begin This appropriation includes $14,200,000 in
fiscal year 2014 and $28,400,000 in fiscal
year 2015 for tuition relief. The Board
of Regents is requested to maintain the
Minnesota resident undergraduate tuition rate
for the 2013-2014 and 2014-2015 academic
years at the 2012-2013 academic year rate.
new text end

new text begin $17,775,000 in fiscal year 2014 and
$17,875,000 in fiscal year 2015 are for
the Minnesota Discovery, Research, and
InnoVation Economy (MnDRIVE) funding
program.
new text end

new text begin Five percent of the fiscal year 2015
appropriation in this subdivision is available
in fiscal year 2015 when the Board of Regents
of the University of Minnesota demonstrates
to the commissioner of management and
budget that the board has met at least three of
the following five performance goals:
new text end

new text begin (1) increase by at least one percent the Twin
Cities campus undergraduate four-year,
five-year, or six-year graduation rates
averaged over three years, for low-income
students reported in fall 2014 over fall 2012.
The average rate for fall 2012 is calculated
with the fall 2010, 2011, and 2012 graduation
rates;
new text end

new text begin (2) increase by at least three percent the total
number of undergraduate STEM degrees,
averaged over three years, conferred by the
University of Minnesota Twin Cities campus
reported in fiscal year 2014 over fiscal year
2012. The averaged number for fall 2012 is
calculated with the fall 2010, 2011, and 2012
number;
new text end

new text begin (3) increase by at least one percent the
four-year, five-year, or six-year graduation
rates, averaged over three years, at the
University of Minnesota reported in fall 2014
over fall 2012. The average rate for fall 2012
is calculated with the fall 2010, 2011, and
2012 graduation rates;
new text end

new text begin (4) for fiscal year 2014, decrease
administrative costs by $15,000,000; and
new text end

new text begin (5) increase invention disclosures by three
percent for fiscal year 2014 over fiscal year
2013 (net of student disclosures).
new text end

new text begin By August 1, 2013, the Board of Regents and
the Minnesota Office of Higher Education
must agree on specific numerical indicators
and definitions for each of the five goals that
will be used to demonstrate the University of
Minnesota's attainment of each goal. On or
before April 1, 2014, the Board of Regents
must report to the legislative committees
with primary jurisdiction over higher
education finance and policy the progress of
the University of Minnesota toward attaining
the goals. The appropriation base for the
next biennium shall include appropriations
not made available under this subdivision for
failure to meet performance goals.
new text end

new text begin Subd. 3. new text end

new text begin Primary Care Education Initiatives
new text end

new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 4. new text end

new text begin Special Appropriations
new text end

new text begin (a) Agriculture and Extension Service
new text end
new text begin 42,922,000
new text end
new text begin 42,922,000
new text end

new text begin For the Agricultural Experiment Station and
the Minnesota Extension Service:
new text end

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

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

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

new text begin (ii) alternative bioenergy crops and cropping
systems; and
new text end

new text begin (iii) biofuel coproducts used for livestock
feed;
new text end

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

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

new text begin (i) vegetable crop research with priority for
extending the Minnesota vegetable growing
season;
new text end

new text begin (ii) fertilizer and soil fertility research and
development;
new text end

new text begin (iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;
new text end

new text begin (iv) discovering and developing plant
varieties that use nutrients more efficiently;
new text end

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

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

new text begin (vii) utilizing plant and livestock cells to treat
and cure human diseases;
new text end

new text begin (viii) the development of dairy coproducts;
new text end

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

new text begin (x) crop pest and animal disease research;
new text end

new text begin (xi) developing animal agriculture that is
capable of sustainably feeding the world;
new text end

new text begin (xii) consumer food safety education and
outreach;
new text end

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

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

new text begin (5) by February 1, 2015, the Board of Regents
must submit a report to the legislative
committees and divisions with responsibility
for agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this section.
new text end

new text begin (b) Health Sciences
new text end
new text begin 4,854,000
new text end
new text begin 4,854,000
new text end

new text begin $346,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital
family practice residency program. The
program must prepare doctors to practice
primary care medicine in rural areas of the
state. The legislature intends this program
to improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner.
The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.
new text end

new text begin (c) new text beginInstitute of Technology
new text end
new text end
new text begin 1,140,000
new text end
new text begin 1,140,000
new text end

new text begin For the geological survey and the talented
youth mathematics program.
new text end

new text begin (d) System Special
new text end
new text begin 5,181,000
new text end
new text begin 5,181,000
new text end

new text begin For general research, the Labor Education
Service, Natural Resources Research
Institute, Center for Urban and Regional
Affairs, Bell Museum of Natural History, and
the Humphrey exhibit.
new text end

new text begin Of this amount, $125,000 in fiscal year 2014
and $125,000 in fiscal year 2015 are added
to the base for the Labor Education Service.
new text end

new text begin (e) University of Minnesota and Mayo
Foundation Partnership
new text end
new text begin 7,491,000
new text end
new text begin 7,491,000
new text end

new text begin For the direct and indirect expenses of the
collaborative research partnership between
the University of Minnesota and the Mayo
Foundation for research in biotechnology
and medical genomics. This appropriation is
available until expended. An annual report
on the expenditure of these funds must be
submitted to the governor and the chairs of
the legislative committee responsible for
higher education finance by June 30 of each
fiscal year.
new text end

new text begin Subd. 5. new text end

new text begin Academic Health Center
new text end

new text begin The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is estimated to be
$22,250,000 each year.
new text end

Sec. 6. new text beginMAYO CLINIC
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 1,351,000
new text end
new text begin $
new text end
new text begin 1,351,000
new text end

new text begin The amounts that may be spent are specified
in the following subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Medical School
new text end

new text begin 665,000
new text end
new text begin 665,000
new text end

new text begin The state must pay a capitation each year for
each student who is a resident of Minnesota.
The appropriation may be transferred
between each year of the biennium to
accommodate enrollment fluctuations. It is
intended that during the biennium the Mayo
Clinic use the capitation money to increase
the number of doctors practicing in rural
areas in need of doctors.
new text end

new text begin Subd. 3. new text end

new text begin Family Practice and Graduate
Residency Program
new text end

new text begin 686,000
new text end
new text begin 686,000
new text end

new text begin The state must pay stipend support for up to
27 residents each year.
new text end

ARTICLE 2

HIGHER EDUCATION POLICY

Section 1.

Minnesota Statutes 2012, section 13.47, subdivision 3, is amended to read:


Subd. 3.

Dissemination.

new text begin(a) new text endEmployment and training data may be disseminated by
employment and training service providers:

deleted text begin (a)deleted text endnew text begin (1)new text end to other employment and training service providers to coordinate the
employment and training services for the data subject or to determine eligibility or
suitability for services from other programs;

deleted text begin (b)deleted text endnew text begin (2)new text end to local and state welfare agencies for monitoring the eligibility of the
participant for assistance programs, or for any employment or training program
administered by those agencies; and

deleted text begin (c)deleted text endnew text begin (3)new text end to the commissioner of employment and economic development.

new text begin (b) The commissioner of employment and economic development may disseminate
employment and training data to the Office of Higher Education for purposes of supporting
program improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data System.
new text end

Sec. 2.

Minnesota Statutes 2012, section 127A.70, subdivision 2, is amended to read:


Subd. 2.

Powers and duties; report.

new text begin(a) new text endThe partnership shall develop
recommendations to the governor and the legislature designed to maximize the achievement
of all P-20 students while promoting the efficient use of state resources, thereby helping
the state realize the maximum value for its investment. These recommendations may
include, but are not limited to, strategies, policies, or other actions focused on:

(1) improving the quality of and access to education at all points from preschool
through graduate education;

(2) improving preparation for, and transitions to, postsecondary education and
work; and

(3) ensuring educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers.

new text begin (b) Under the direction of the P-20 Education Partnership Statewide Longitudinal
Education Data System Governance Committee, the Office of Higher Education, and
the Departments of Education and Employment and Economic Development shall
improve and expand the statewide longitudinal education data system (SLEDS) to provide
policymakers, education and workforce leaders, researchers, and members of the public
with data, research, and reports to:
new text end

new text begin (1) expand reporting on students' educational outcomes;
new text end

new text begin (2) evaluate the effectiveness of educational and workforce programs; and
new text end

new text begin (3) evaluate the relationship between education and workforce outcomes.
new text end

new text begin To the extent possible under federal and state law, research and reports should be
accessible to the public on the Internet, and disaggregated by demographic characteristics,
organization or organization characteristics, and geography.
new text end

new text begin It is the intent of the legislature that the statewide longitudinal education data system
inform public policy and decision-making. The SLEDS governance committee, with
assistance from staff of the Office of Higher Education, the Department of Education, and
the Department of Employment and Economic Development, shall respond to legislative
committee and agency requests on topics utilizing data made available through the
statewide longitudinal education data system as resources permit. Any analysis of or
report on the data must contain only summary data.
new text end

new text begin (c) new text endBy January 15 of each year, the partnership shall submit a report to the governor
and to the chairs and ranking minority members of the legislative committees and
divisions with jurisdiction over P-20 education policy and finance that summarizes the
partnership's progress in meeting its goals and identifies the need for any draft legislation
when necessary to further the goals of the partnership to maximize student achievement
while promoting efficient use of resources.

Sec. 3.

Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to read:


Subd. 7.

Reports.

(a) deleted text beginInstructional and noninstructional expenditure data and
enrollment data must be submitted in the biennial budget document under section
135A.034. This report must include a description of the methodology for determining
instructional and noninstructional expenditures and estimates of inflation in higher
education and the methodology or index used to determine the inflation rate.
deleted text endnew text begin The
University of Minnesota and the Minnesota State Colleges and Universities systems shall
include in their biennial budget proposals to the legislature:
new text end

new text begin (1) a five-year history of systemwide expenditures, reported by:
new text end

new text begin (i) functional areas, including instruction, research, public service, student financial
aid, and auxiliary services, and including direct costs and indirect costs, such as
institutional support, academic support, student services, and facilities management,
associated with each functional area; and
new text end

new text begin (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
new text end

new text begin (2) a five-year history of the system's total instructional expenditures per full-year
equivalent student, by level of instruction, including upper-division undergraduate,
lower-division undergraduate, graduate, professional, and other categories of instructional
programs offered by the system;
new text end

new text begin (3) a five-year history of the system's total revenues by funding source, including
tuition, state operations and maintenance appropriations, state special appropriations, other
restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary
revenue, indirect cost recovery, and any other revenue sources;
new text end

deleted text begin (b) By February 1 of each even-numbered year, the Board of Regents of the University
of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
must submit a report to the chairs of the legislative committees with jurisdiction over
higher education policy and finance. The report must describe the following:
deleted text end

deleted text begin (1)deleted text endnew text begin (4) an explanation describingnew text end how state appropriations made to the system in
the previous deleted text beginodd-numbered yeardeleted text endnew text begin bienniumnew text end were allocated and the methodology used to
determine the allocation;

deleted text begin (2)deleted text endnew text begin (5)new text end data describing how the institution reallocated resources to advance the
priorities set forth in the budget submitted under section 135A.034 and the statewide
objectives under section 135A.011. The information must indicate whether instruction
and support programs received a reduction in or additional resources. The total amount
reallocated must be clearly explained;

deleted text begin (3)deleted text endnew text begin (6)new text end the tuition rates and fees established by the governing board in each of the
past ten years and comparison data for peer institutions and national averages;

deleted text begin (4)deleted text endnew text begin (7)new text end data on the number and proportion of students graduating within four, five,
and six years from universities and within three years from colleges as reported in the
integrated postsecondary education data system. These data must be provided for each
institution by race, ethnicity, and gender. Data and information must be submitted that
describe the system's plan and progress toward attaining the goals set forth in the plan
to increase the number and proportion of students that graduate within four, five, or six
years from a university or within three years from a college;

deleted text begin (5)deleted text endnew text begin (8)new text end data on, and the methodology used to measure, the number of students
traditionally underrepresented in higher education enrolled at the system's institutions.
Data and information must be submitted that describe the system's plan and progress
toward attaining the goals set forth in the plan to increase the recruitment, retention, and
timely graduation of students traditionally underrepresented in higher education; and

deleted text begin (6)deleted text endnew text begin (9)new text end data on the revenue received from all sources to support research or
workforce development activities or the system's efforts to license, sell, or otherwise
market products, ideas, technology, and related inventions created in whole or in part by
the system. Data and information must be submitted that describe the system's plan and
progress toward attaining the goals set forth in the plan to increase the revenue received
to support research or workforce development activities or revenue received from the
licensing, sale, or other marketing and technology transfer activities by the system.

deleted text begin (c) Instructional expenditure and enrollment datadeleted text endnew text begin (b) Data required by this
subdivision
new text end shall be submitted by the public postsecondary systems to the Minnesota
Office of Higher Education and the Department of Management and Budget and included
in the biennial budget document. deleted text beginThe specific data shall be submitted only after the
director of the Minnesota Office of Higher Education has consulted with a data advisory
task force to determine the need, content, and detail of the information.
deleted text endnew text begin Representatives
from each system, in consultation with the commissioner of management and budget
and the director of the Office of Higher Education, shall develop consistent reporting
practices for this purpose.
new text end

new text begin (c) To the extent practicable, each system shall develop the ability to respond to
legislative requests for financial analyses that are more detailed than those required by this
subdivision, including but not limited to analyses that show expenditures or revenues by
institution or program, or in multiple categories of expenditures or revenues, and analyses
that show revenue sources for particular types of expenditures.
new text end

Sec. 4.

Minnesota Statutes 2012, section 135A.61, is amended to read:


135A.61 HIGH SCHOOL-TO-COLLEGE DEVELOPMENTAL TRANSITION
deleted text beginPROGRAMSdeleted text endnew text begin PROGRAM GRANTSnew text end.

Subdivision 1.

High school-to-college developmental transition deleted text beginprograms
deleted text endnew text begin program grantsnew text end.

deleted text beginAll public higher education systems and other higher education
institutions in Minnesota are encouraged to offer
deleted text end new text begin(a) The director of the Minnesota Office of
Higher Education shall award competitive matching grants to Minnesota public and private
postsecondary institutions offering
new text endresearch-based high school-to-college developmental
transition programs to prepare students for college-level academic coursework. A program
under this section must, at a minimum, include instruction to develop the skills and
abilities necessary to be ready for college-level coursework when the student enrolls in a
degree, diploma, or certificate program and must address the academic skills identified
as needing improvement by a college readiness assessment completed by the student. deleted text beginA
program
deleted text end new text beginDevelopmental courses new text endoffered under this section must not constitute more than
the equivalent of one semester of full-time study occurring in the summer following
high school graduation. The courses completed in a program under this section must be
identified on the student's transcript with a unique identifier to distinguish deleted text beginitdeleted text end new text beginthem new text endfrom
other developmental education courses or programs.new text begin Courses attended will not count
towards the limit on postsecondary education used for state financial aid programs under
sections 136A.121, subdivision 9, and 136A.125, subdivision 2, paragraph (a), clause (4).
new text end

new text begin Grants must be awarded to programs that provide instruction and services including,
but not limited to:
new text end

new text begin (1) summer developmental courses in academic areas requiring remediation;
new text end

new text begin (2) academic advising, mentoring, and tutoring during the summer program and
throughout the student's first year of enrollment;
new text end

new text begin (3) interaction with student support services, admissions and financial aid offices; and
new text end

new text begin (4) orientation to college life, such as study skills or time management.
new text end

new text begin (b) Grants shall be awarded to eligible postsecondary institutions as defined in
section 136A.103.
new text end

new text begin (c) Grants shall be awarded for one year and may be renewed for a second year
with documentation to the Minnesota Office of Higher Education of successful program
outcomes.
new text end

new text begin Subd. 1a. new text end

new text begin Eligible students. new text end

new text begin (a) Eligible students include students who earned a
high school diploma or its equivalent during the academic year immediately preceding the
summer program and who meet one or more of the following criteria:
new text end

new text begin (1) are counted under section 1124(c) of the Elementary and Secondary Education
Act of 1965 (Title I);
new text end

new text begin (2) are eligible for free or reduced-price lunch under the National School Lunch Act;
new text end

new text begin (3) receive assistance under the Temporary Assistance for Needy Families Law (Title
I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
new text end

new text begin (4) are a member of a group traditionally underrepresented in higher education.
new text end

new text begin (b) Eligible students include those who met the student eligibility criteria in the
student's final year of high school and plan to enroll in college the academic year following
high school graduation or its equivalency.
new text end

new text begin Subd. 1b. new text end

new text begin Application process. new text end

new text begin (a) The director of the Minnesota Office of Higher
Education shall develop a grant application process. The director shall attempt to support
projects in a manner that ensures that eligible students throughout the state have access to
program services.
new text end

new text begin (b) The grant application must include, at a minimum, the following information:
new text end

new text begin (1) a description of the characteristics of the students to be served reflective of the
need for services listed in subdivision 1;
new text end

new text begin (2) a description of the services to be provided and a timeline for implementation of
the activities;
new text end

new text begin (3) a description of how the services provided will improve postsecondary readiness
and support postsecondary retention;
new text end

new text begin (4) a description of how the services will be evaluated to determine whether the
program goals were met; and
new text end

new text begin (5) other information as identified by the director.
new text end

new text begin Grant recipients must specify both program and student outcome goals, and
performance measures for each goal.
new text end

new text begin Subd. 1c. new text end

new text begin Match required. new text end

new text begin Applicants are required to match the grant amount
dollar-for-dollar. The match may be in cash or an in-kind contribution.
new text end

new text begin Subd. 1d. new text end

new text begin Review committee. new text end

new text begin The director must establish and convene a grant
selection committee to review applications and award grants. The members of the
committee may include representatives of postsecondary institutions, school districts,
organizations providing college outreach services, and others deemed appropriate by the
director.
new text end

Subd. 2.

High school-to-college developmental transition programs evaluation
report.

(a) Institutions that offer a high school-to-college developmental transition
program deleted text beginand enroll students that receive a grant under section 136A.121, subdivision 9b,
deleted text end must annually submit data and information about the services provided and program
outcomes to the director of the Minnesota Office of Higher Education.

(b) The director must establish and convene a data working group to develop: (1) the
data methodology to be used in evaluating the effectiveness of the programs implemented
to improve the academic performance of participants, including the identification of
appropriate comparison groups; and (2) a timeline for institutions to submit data and
information to the director. The data working group must develop procedures that
ensure consistency in the data collected by each institution. Data group members must
have expertise in data collection processes and the delivery of academic programs to
students, and represent the types of institutions that offer a program under this section.
The data group must assist the director in analyzing and synthesizing institutional data
and information to be included in the evaluation report submitted to the legislature under
subdivision 3.

(c) Participating institutions must specify both program and student outcome goals
and the activities implemented to achieve the goals. The goals must be clearly stated and
measurable, and data collected must enable the director to verify the program has met the
outcome goals established for the program.

(d) The data and information submitted must include, at a minimum, the following:

(1) demographic information about program participants;

(2) names of the high schools from which the students graduated;

(3) the college readiness test used to determine the student was not ready for
college-level academic coursework;

(4) the academic content areas assessed and the scores received by the students on
the college readiness test;

(5) a description of the services, including any supplemental noncredit academic
support services, provided to students;

(6) data on the registration load, courses completed, and grades received by students;

(7) the retention of students from the term they participated in the program to the fall
term immediately following graduation from high school;

(8) information about the student's enrollment in subsequent terms; and

(9) other information specified by the director or the data group that facilitates the
evaluation process.

Subd. 3.

Report to legislature.

By March 15 of each year, deleted text beginbeginning in 2011,
deleted text endthe director shall submit a report to the committees of the legislature with jurisdiction
over higher education finance and policy that evaluates the effectiveness of programs
in improving the academic performance of students who participated in the transition
programs.

new text begin EFFECTIVE DATE. new text end

new text begin The amendments in this section are effective for programs
offered in the summer of 2014 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2012, section 136A.101, subdivision 3, is amended to read:


Subd. 3.

deleted text beginDirectordeleted text endnew text begin Commissionernew text end.

deleted text begin"Director"deleted text endnew text begin "Commissioner"new text end means the deleted text begindirector
deleted text end new text begincommissioner new text endof the Minnesota Office of Higher Education.

Sec. 6.

Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:


Subd. 9.

Independent student.

"Independent student" has the meaning given deleted text beginit in
deleted text endnew text begin under Title IV ofnew text end the Higher Education Act of 1965, deleted text beginUnited States Code, title 20, section
1070a-6
deleted text endnew text begin as amendednew text end, and applicable regulations.

Sec. 7.

Minnesota Statutes 2012, section 136A.121, is amended by adding a
subdivision to read:


new text begin Subd. 20. new text end

new text begin Institution reporting. new text end

new text begin (a) Each institution receiving financial aid under
this section must annually report by December 31 to the office the following for its
undergraduate programs:
new text end

new text begin (1) enrollment, persistence, and graduation data for all students, including aggregate
information on state and federal Pell grant recipients;
new text end

new text begin (2) the job placement rate and salary and wage information for graduates of each
program that is either designed or advertised to lead to a particular type of job or advertised
or promoted with a claim regarding job placement, as is practicable; and
new text end

new text begin (3) the student debt to earnings ratio of graduates.
new text end

new text begin (b) The office shall provide the following on its Internet Web site:
new text end

new text begin (1) the information submitted by an institution pursuant to paragraph (a), which shall
be made available in a searchable database; and
new text end

new text begin (2) other information and links that are useful to students and parents who are in
the process of selecting a college or university. This information may include, but is
not limited to, local occupational profiles.
new text end

new text begin (c) The office shall provide a standard format and instructions for supplying the
information required under paragraph (a).
new text end

Sec. 8.

Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read:


Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if
the applicant:

(1) is a resident of the state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is
disabled as defined in section 125A.02, and who is receiving or will receive care on a
regular basis from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a
recipient of assistance from the Minnesota family investment program;

(4) has not earned a baccalaureate degree and has been enrolled full time less than
eight semesters or the equivalent;

(5) is pursuing a nonsectarian program or course of study that applies to an
undergraduate degree, diploma, or certificate;

(6) is enrolled at least half time in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student who withdraws from enrollment for active military service new text beginor for a
major illness, while under the care of a medical professional, that substantially limits the
student's ability to complete the term
new text endis entitled to an additional semester or the equivalent
of grant eligibility and will be considered to be in continuing enrollment status upon return.

Sec. 9.

Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read:


Subd. 4.

Amount and length of grants.

(a) The amount of a child care grant
must be based on:

(1) the income of the applicant and the applicant's spouse;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

(b) The maximum award to the applicant shall be deleted text begin$2,600deleted text endnew text begin $2,800new text end for each eligible
child per academic year, except that the campus financial aid officer may apply to the
office for approval to increase grants by up to ten percent to compensate for higher market
charges for infant care in a community. The office shall develop policies to determine
community market costs and review institutional requests for compensatory grant
increases to ensure need and equal treatment. The office shall prepare a chart to show the
amount of a grant that will be awarded per child based on the factors in this subdivision.
The chart shall include a range of income and family size.

Sec. 10.

Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For purposes of sections 136A.231 to 136A.233, the words
defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
institution.

(b) "Minnesota resident" means a student who meets the conditions in section
136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a
postsecondary institution as determined by a postsecondary institution according to
guidelines established by the Minnesota Office of Higher Education.

(d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
nonsectarian agency or state institution located in the state of Minnesota, a disabled person
or a person over 65 who employs a student to provide personal services in or about the
person's residence, or a private, for-profit employer employing a student as an intern in a
position directly related to the student's field of study that will enhance the student's
knowledge and skills in that field.

(e) "Eligible postsecondary institution" means any postsecondary institution eligible
for participation in the Minnesota state grant program as specified in section 136A.101,
subdivision 4
.

(f) "Independent student" has the meaning given deleted text beginit indeleted text endnew text begin under Title IV ofnew text end the Higher
Education Act of 1965, deleted text beginUnited States Code, title 20, section 1070a-6deleted text endnew text begin as amendednew text end, and
applicable regulations.

(g) "Half time" for undergraduates has the meaning given in section 136A.101,
subdivision 7b
, and for graduate students is defined by the institution.

Sec. 11.

new text begin [136A.50] TRIBAL COLLEGE SUPPLEMENTAL GRANT
ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) As used in this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Nonbeneficiary student" means a resident of Minnesota who is enrolled in a
tribally controlled college but is not an enrolled member of a federally recognized Indian
tribe.
new text end

new text begin (c) "Tribally controlled college" means an accredited institution of higher education
located in this state that is formally controlled by or has been formally sanctioned or
chartered by the governing body of a federally recognized Indian tribe, or a combination
of federally recognized Indian tribes. Tribally controlled college does not include any
institution or campus subject to the jurisdiction of the Board of Trustees of the Minnesota
State Colleges and Universities or the Board of Regents of the University of Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility; grant assistance. new text end

new text begin (a) A tribally controlled college is eligible to
receive supplemental grant assistance from the Office of Higher Education, as provided in
this section, for nonbeneficiary student enrollment if the college is not otherwise eligible
to receive federal grant funding for those students under United States Code, title 25,
section 1808.
new text end

new text begin (b) The office shall make grants to tribally controlled colleges to defray the costs
of education associated with the enrollment of nonbeneficiary students. Grants made
pursuant to this section must be provided directly to the recipient college.
new text end

new text begin Subd. 3. new text end

new text begin Grant application. new text end

new text begin To receive a grant under this section, a tribally
controlled college must submit an application in the manner required by the Office of
Higher Education. Upon submission of a completed application indicating that the tribally
controlled college is eligible, the office shall distribute to the college, during each year of
the biennium, a grant of $5,300 for each nonbeneficiary student on a full-time equivalent
basis. If the amount appropriated for grants under this section is insufficient to cover
the total amount of grant eligibility, the office shall distribute a prorated amount per
nonbeneficiary student on a full-time equivalent basis.
new text end

new text begin Subd. 4. new text end

new text begin Reporting by recipient institutions. new text end

new text begin Each tribally controlled college
receiving a grant under this section shall provide to the Office of Higher Education,
on an annual basis, an accurate and detailed account of the expenditures of the grant
funds received by the college, and a copy of the college's most recent audit report and
documentation of the enrollment status and ethnic status of each nonbeneficiary student
for which grant assistance is sought under this section.
new text end

Sec. 12.

Minnesota Statutes 2012, section 136A.62, is amended by adding a
subdivision to read:


new text begin Subd. 6. new text end

new text begin Online platform service. new text end

new text begin An online platform service is a nondegree
granting entity that provides online access to schools as defined in subdivision 3, to enable
the schools to offer online training, courses, or programs.
new text end

Sec. 13.

Minnesota Statutes 2012, section 136A.646, is amended to read:


136A.646 ADDITIONAL SECURITY.

(a) In the event any registered institution is notified by the United States Department
of Education that it has fallen below minimum financial standards and that its continued
participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
institution shall provide a surety bond conditioned upon the faithful performance of all
contracts and agreements with students in a sum equal to the "letter of credit" required by
the United States Department of Education in the Letter of Credit Alternative, but in no
event shall such bond be less than $10,000 nor more than $250,000.

(b) In lieu of a bond, the applicant may deposit with the commissioner of
management and budget:

(1) a sum equal to the amount of the required surety bond in cash; or

(2) securities, as may be legally purchased by savings banks or for trust funds, in an
aggregate market value equal to the amount of the required surety bond.

new text begin (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
the office and shall be relieved of liability for any breach of condition occurring after
the effective date of cancellation.
new text end

Sec. 14.

Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:


Subd. 8.

Disapproval of registration appeal.

deleted text begin (a) If a school's degree or use of a
term in its name is disapproved by the office, the school may request a hearing under
chapter 14. The request must be in writing and made to the office within 30 days of the
date the school is notified of the disapproval.
deleted text end

deleted text begin (b)deleted text endnew text begin (a)new text end The office may refuse to renew, revoke, or suspend registration, approval of
a school's degree, or use of a regulated term in its name by giving written notice and
reasons to the school. deleted text beginThe school may request a hearing under chapter 14. If a hearing is
requested, no revocation or suspension shall take effect until after the hearing.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end Reasons for revocation or suspension of registration or approval may be
for one or more of the following reasons:

(1) violating the provisions of sections 136A.61 to 136A.71;

(2) providing false, misleading, or incomplete information to the office;

(3) presenting information about the school which is false, fraudulent, misleading,
deceptive, or inaccurate in a material respect to students or prospective students; or

(4) refusing to allow reasonable inspection or to supply reasonable information after
a written request by the office has been received.

new text begin (c) Any order refusing, revoking, or suspending a school's registration, approval of a
school's degree, or use of a regulated term in the school's name is appealable in accordance
with chapter 14. The request must be in writing and made to the office within 30 days of the
date the school is notified of the action of the office. If a school has been operating and its
registration has been revoked, suspended, or refused by the office, the order is not effective
until the final determination of the appeal, unless immediate effect is ordered by the court.
new text end

Sec. 15.

Minnesota Statutes 2012, section 136A.653, is amended by adding a
subdivision to read:


new text begin Subd. 3a. new text end

new text begin Tuition-free educational courses. new text end

new text begin A school, including a school using an
online platform service, offering training, courses, or programs is exempt from sections
136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota.
A course will be considered tuition-free if the school charges no tuition and the required
fees and other required charges paid by the student for the course do not exceed two
percent of the most recent average undergraduate tuition and required fees as of January
1 of the current year charged for full-time students at all degree-granting institutions as
published annually by the United States Department of Education as of January 1 of each
year. To qualify for an exemption a school or online platform service must prominently
display a notice comparable to the following: "IMPORTANT: Each educational institution
makes its own decision regarding whether to accept completed coursework for credit.
Check with your university or college."
new text end

Sec. 16.

Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:


Subd. 2.

Contracts.

(a) The board may enter into a contract with the chancellor,
a vice-chancellor, or a president, containing terms and conditions of employment. The
terms of the contract must be authorized under a plan approved under section 43A.18,
subdivision 3a
.

(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
contract under this section may provide a liquidated salary amount or other compensation
if a contract is terminated by the board prior to its expiration.

(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
this section may contain a deferred compensation plan made in conformance with section
457(f) of the Internal Revenue Code.

new text begin (d) Notwithstanding any provision of the plan approved under section 43A.18,
subdivision 3a, a contract under this section must not authorize or otherwise provide for a
discretionary or mandatory bonus or other performance-based incentive payment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to contracts entered into on or after that date.
new text end

Sec. 17.

new text begin [136F.99] STATEWIDE ELECTRONIC INFRASTRUCTURE;
PORTFOLIO SOLUTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Collaborative infrastructure. new text end

new text begin (a) The Department of Employment
and Economic Development, the Department of Education, the Office of Higher
Education, the University of Minnesota, and the Minnesota State Colleges and Universities
shall collaborate to implement an electronic infrastructure to support academic and
workforce success statewide. The infrastructure shall first utilize existing assets, tools, and
services, including but not limited to efolioMinnesota and GPS LifePlan. To facilitate
implementation of this section, the Board of Trustees of the Minnesota State Colleges and
Universities shall support efolioMinnesota and GPS LifePlan until at least June 30, 2015.
new text end

new text begin (b) To the extent possible, the basic electronic infrastructure shall be available at no
charge to all state residents and to all students attending Minnesota educational institutions.
new text end

new text begin Subd. 2. new text end

new text begin Goals; programs. new text end

new text begin The Board of Trustees of the Minnesota State Colleges
and Universities may enhance the efolioMinnesota platform to allow, at a minimum,
implementation of:
new text end

new text begin (1) a portfolio-based individual learning plan solution that includes comprehensive
academic and life planning instruments, to support student transitions to postsecondary
school or to work; and
new text end

new text begin (2) a student-owned proficiency portfolio solution to support student transitions to
the workplace and employers seeking first-day-work-ready employees.
new text end

new text begin Subd. 3. new text end

new text begin Resources; accountability reports. new text end

new text begin (a) The Board of Trustees of the
Minnesota State Colleges and Universities may seek and accept contributions from
individuals, businesses, and other organizations to support the goals required by this
section. The parties listed in subdivision 1 are not required to contribute. All contributions
received are appropriated to the Board of Trustees of the Minnesota State Colleges and
Universities and shall be administered as directed by the Board of Trustees.
new text end

new text begin (b) The Board of Trustees of the Minnesota State Colleges and Universities shall
submit, no later than January 15 of each year, a report to the governor and legislature on
the progress of the Minnesota State Colleges and Universities system's activities related to
implementation of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 18.

Minnesota Statutes 2012, section 137.027, is amended to read:


137.027 APPROPRIATION; FRINGE BENEFITS.

new text begin (a) new text endDirect appropriations to the University of Minnesota include money to pay
the employer's share of Social Security, state retirement, and health insurance. Money
provided for these purposes shall be expended only for these purposes and any amounts in
excess of the employer's share shall be returned to the state treasury.

new text begin (b) Unless otherwise explicitly provided for in law, direct appropriations to the
University of Minnesota do not include, and may not be used to pay, any mandatory or
discretionary bonus or other performance-based incentive payment provided for in an
employment contract with the president or vice-presidents, chancellors, provosts, vice
provosts, deans, or directors of individual programs.
new text end

Sec. 19.

new text begin [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
ECONOMY FUNDING PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The Minnesota Discovery, Research, and
InnoVation Economy (MnDRIVE) funding program is established to discover new
knowledge through scientific research that will:
new text end

new text begin (1) advance the state's economy;
new text end

new text begin (2) leverage opportunities and establish priorities in sectors of state strength and
comparative advantage;
new text end

new text begin (3) improve the health and wellbeing of Minnesota's citizens;
new text end

new text begin (4) advance the capacity and competitiveness of existing and emerging food- and
manufacturing-related science and technology industries; and
new text end

new text begin (5) build a better Minnesota by driving progress and advancing the common good.
new text end

new text begin (b) The MnDRIVE funding program shall establish priorities by investing in
scientific research that promotes:
new text end

new text begin (1) programs that can position Minnesota as a leader in engineering, science,
technology, and food-related solutions;
new text end

new text begin (2) initiatives that support the growth of targeted industry clusters and the
competitiveness of existing Minnesota engineering, science, technology, and food
companies in developing new products and services;
new text end

new text begin (3) initiatives that can result in creating new Minnesota-based companies;
new text end

new text begin (4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
the incidence of disease, and transform how we prevent, treat, and cure diseases; and
new text end

new text begin (5) initiatives that can secure a safer environment, seek sustainable energy solutions,
and prevent, diagnose, and treat environmental problems associated with Minnesota
industry.
new text end

new text begin Subd. 2. new text end

new text begin Funding requests. new text end

new text begin The Board of Regents of the University of Minnesota,
acting alone or in partnership with other public or private entities, is requested to submit
investment proposals consistent with the goals and objectives of the MnDRIVE funding
program as part of the Board of Regents biennial budget request to the legislature. The
Board of Regents must give consideration to investments in existing scientific research
programs that meet these guidelines but may require additional resources in order to
preserve or accelerate Minnesota into a national or global leadership position. The
governor shall submit a recommendation to the legislature regarding funding requests
submitted by the Board of Regents.
new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin By March 1 of each odd-numbered year, the Board of Regents
of the University of Minnesota must provide to the chairs and ranking minority members
of the legislative committees with primary jurisdiction over higher education policy and
finance a summary report of investments and accomplishments related to funds received
from the state under subdivision 2 from the prior biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 20.

Minnesota Statutes 2012, section 141.35, is amended to read:


141.35 EXEMPTIONS.

Sections 141.21 to 141.32 shall not apply to the following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections 136A.61 to 136A.71;

(3) schools of nursing accredited by the state Board of Nursing or an equivalent
public board of another state or foreign country;

(4) private schools complying with the requirements of section 120A.22, subdivision
4
;

(5) courses taught to students in a valid apprenticeship program taught by or
required by a trade union;

(6) schools exclusively engaged in training physically or mentally disabled persons
for the state of Minnesota;

(7) schools licensed by boards authorized under Minnesota law to issue licenses
except schools required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in their names;

(8) schools and educational programs, or training programs, contracted for by
persons, firms, corporations, government agencies, or associations, for the training of their
own employees, for which no fee is charged the employee;

(9) schools engaged exclusively in the teaching of purely avocational, recreational,
or remedial subjects as determined by the office except schools required to obtain a private
career school license due to the use of "academy," "institute," "college," or "university" in
their names unless the school used "academy" or "institute" in its name prior to August
1, 2008;

(10) classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

(11) programs in the fine arts provided by organizations exempt from taxation
under section 290.05 and registered with the attorney general under chapter 309. For
the purposes of this clause, "fine arts" means activities resulting in artistic creation or
artistic performance of works of the imagination which are engaged in for the primary
purpose of creative expression rather than commercial sale or employment. In making
this determination the office may seek the advice and recommendation of the Minnesota
Board of the Arts;

(12) classes, courses, or programs intended to fulfill the continuing education
requirements for licensure or certification in a profession, that have been approved by a
legislatively or judicially established board or agency responsible for regulating the practice
of the profession, and that are offered exclusively to an individual practicing the profession;

(13) classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing and occupational
entrance examinations;

(14) classes, courses, or programs providing 16 or fewer clock hours of instruction
that are not part of the curriculum for an occupation or entry level employment except
schools required to obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in their names;

(15) classes, courses, or programs providing instruction in personal development,
modeling, or acting;

(16) training or instructional programs, in which one instructor teaches an individual
student, that are not part of the curriculum for an occupation or are not intended to prepare
a person for entry level employment; deleted text beginand
deleted text end

(17) schools with no physical presence in Minnesota, as determined by the office,
engaged exclusively in offering distance instruction that are located in and regulated by
other states or jurisdictionsnew text begin; and
new text end

new text begin (18) schools providing exclusively training, instructional programs, or courses
where tuition, fees, and any other charges for a student to participate do not exceed $100
new text end.

Sec. 21.

Minnesota Statutes 2012, section 197.775, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Commissioner" means the commissioner of veterans affairs.

(c) "State college or university" means a unit of the University of Minnesota or
Minnesota State Colleges and Universities.

new text begin (d) "Veteran" includes the definition provided in section 197.447, and also includes
any person serving in active service, as defined in section 190.05, subdivision 5.
new text end

Sec. 22.

Minnesota Statutes 2012, section 197.775, subdivision 2, is amended to read:


Subd. 2.

Recognition of courses.

(a) Minnesota State Colleges and Universities
must recognize courses and award educational credits for courses that were part of a
veteran's military training or service if the courses meet the standards of the American
Council on Education or equivalent standards for awarding academic credits.new text begin In
recognizing courses and awarding educational credits, consideration must be given to
academic skills developed in all aspects of the training or service course curriculum, and
may not be limited solely to the physical fitness or activity components of the course.
new text end

(b) The University of Minnesota and private colleges and universities in Minnesota
are encouraged to recognize courses and award educational credits for courses that were
part of a veteran's military training or service if the courses meet the standards of the
American Council on Education or equivalent standards for awarding academic credits.
new text begin In recognizing courses and awarding educational credits, the University of Minnesota
and private colleges and universities in Minnesota are encouraged to consider academic
skills developed in all aspects of the training or service course curriculum, and not limit
consideration solely to the physical fitness or activity components of the course.
new text end

Sec. 23.

Minnesota Statutes 2012, section 197.775, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Recognition of veteran status. new text end

new text begin (a) With the policy in this subdivision,
the state recognizes veterans' selfless sacrifices in service to our nation, and their varied
and specialized military education and training, as well as the need for their timely and
meaningful reintegration into civilian society. The state also recognizes the special value
of veterans in furthering the goal of creating a diverse student population in the state's
postsecondary institutions.
new text end

new text begin (b) Minnesota State Colleges and Universities must adopt a policy recognizing,
for applicants who are veterans, the applicant's veteran status as a positive factor in
determining whether to grant admission to a graduate or professional academic degree
program. The Board of Trustees must report to the chairs and ranking minority members
of the legislative committees and divisions with jurisdiction over higher education policy
and finance annually by February 15 on the number of veterans who apply for a graduate
or professional academic degree program and the number accepted.
new text end

new text begin (c) The University of Minnesota, and private colleges and universities in Minnesota,
are encouraged to adopt a policy recognizing, for applicants who are veterans, the
applicant's veteran status as a positive factor in determining whether to grant admission to
an undergraduate, graduate, or professional academic degree program.
new text end

Sec. 24.

Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:


Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered
from any person under the administration of the Minnesota Unemployment Insurance Law
are private data on individuals or nonpublic data not on individuals as defined in section
13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court
order or section 13.05. A subpoena is not considered a district court order. These data
may be disseminated to and used by the following agencies without the consent of the
subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other
state in accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Division of Insurance Fraud
Prevention in the Department of Commerce for uses consistent with the administration of
their duties under Minnesota law;

(9) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(10) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(11) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of
a criminal investigation;

(12) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(13) the Department of Health for the purposes of epidemiologic investigations;

(14) the Department of Corrections for the purpose of preconfinement and
postconfinement employment tracking of committed offenders for the purpose of case
planning; deleted text beginand
deleted text end

(15) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201deleted text begin.deleted text endnew text begin; and
new text end

new text begin (16) the Office of Higher Education for purposes of supporting program
improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data System.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by
the department in an investigation under section 268.182 are confidential as to data
on individuals and protected nonpublic data not on individuals as defined in section
13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

Sec. 25.

Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:


Subd. 4.

Renewal.

Each award must be given for one academic year and is
renewable for a maximum of eight semesters or the equivalent. A student who withdraws
from enrollment for active military service new text beginor for a major illness, while under the care
of a medical professional, that substantially limits the student's ability to complete the
term
new text endis entitled to an additional semester or the equivalent of grant eligibility. An award
must not be given to a dependent child who is 23 years of age or older on the first day of
the academic year.

Sec. 26. new text beginHIGHER EDUCATION INSTITUTIONAL PARTICIPATION IN
STATE STUDENT AID PROGRAMS; REPORT.
new text end

new text begin The Minnesota Office of Higher Education must report by February 1, 2014, to the
chairs and ranking minority members of the legislative committees and divisions with
the primary jurisdiction over higher education finance on the available and appropriate
data that should be used as statutory criteria to determine whether a higher education
institution should be allowed to participate in state financial aid programs. Among other
data, the data could include an institution's completion/graduation rates, student debt to
income ratios, and employment rates related to field of study. The office must consult
regularly with the higher education finance committees or divisions about the purpose
and content of the report.
new text end

Sec. 27. new text beginUNIVERSITY OF MINNESOTA REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin Medical school capacity. new text end

new text begin The Board of Regents of the University
of Minnesota must report, by November 1, 2013, to the legislative committees and
divisions with primary jurisdiction over higher education finance and policy the following
information with respect to its medical schools:
new text end

new text begin (1) the number of applicants seeking admission to the school for the academic term
commencing in the fall of 2013 and the number admitted;
new text end

new text begin (2) the number of applicants admitted to the school for each of the fall academic
terms commencing between 2000 and 2012;
new text end

new text begin (3) the number of school graduates projected for each of the next ten years;
new text end

new text begin (4) the number of school graduates projected to remain and practice in Minnesota
after graduation for each of the next ten years; and
new text end

new text begin (5) plans of the university to increase the capacity of the school.
new text end

new text begin The report must include the most recent and accepted analysis concerning the need
for physicians in Minnesota in the future, including time frames of the next five, ten, 15,
and 20 years. The need must be stated in aggregate and in specialty practice areas.
new text end

new text begin Subd. 2. new text end

new text begin STEM programs. new text end

new text begin The Board of Regents of the University of Minnesota
must report, by November 1, 2013, to the legislative committees and divisions with
primary jurisdiction over higher education finance and policy with respect to its
undergraduate science, technology, engineering, and mathematics programs on the Twin
Cities campus the following information:
new text end

new text begin (1) the number of applicants seeking admission to those programs for the academic
term commencing in the fall of 2013 and the number admitted;
new text end

new text begin (2) the percentage of students that graduate from the programs who remain in
Minnesota both historically and projected into the future; and
new text end

new text begin (3) plans to expand the capacity of the programs.
new text end

new text begin The report must include the most recent and accepted analysis of the projected
need of employers within the state for graduates of science, technology, engineering, and
mathematics programs in the future, including times frames of five, ten, 15, and 20 years.
new text end

new text begin Subd. 3. new text end

new text begin University administrative costs. new text end

new text begin (a) The Board of Regents of the
University of Minnesota must, within 45 days of its receipt of the report or study, provide
to the chairs and ranking minority members of the legislative committees and divisions
with jurisdiction over higher education finance, a report currently expected to be received
by the university in July 2013, concerning what is commonly known as a spans and
layers analysis by Sibson Consulting and an administrative services benchmarking and
diagnostic study expected to be done in May 2013, by Huron Consulting.
new text end

new text begin (b) The Board of Regents of the University of Minnesota must provide to the chairs
and ranking minority members of the legislative committees with jurisdiction over higher
education finance a plan to lower its overall costs based on its work with Huron Consulting
concerning administrative services benchmarking and diagnostic study within 90 days
of its receipt of the final report from Huron Consulting. The board must periodically
update the committees and minority members on the progress of the analysis and any
preliminary findings or recommendations.
new text end

Sec. 28. new text beginMENTAL HEALTH ISSUES SUMMIT.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities, in
cooperation with the commissioner of human services, shall convene a summit of
representatives of the Minnesota State Colleges and Universities, the University of
Minnesota, private colleges, mental health professionals, special education representatives,
children and adult mental health advocates and providers, and community mental health
centers. The summit shall develop a comprehensive workforce development plan to:
new text end

new text begin (1) increase the number of mental health professionals and practitioners;
new text end

new text begin (2) ensure appropriate course work and training experience; and
new text end

new text begin (3) increase the number of culturally diverse mental health professionals and
practitioners.
new text end

new text begin The plan required by this section shall be submitted to the chairs and ranking minority
members of the legislative committees responsible for health and human services policy
and higher education policy no later than January 15, 2015.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 29. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the term "director" as it relates to the director
of the Minnesota Office of Higher Education to "commissioner" wherever in Minnesota
Statutes or Minnesota Rules the term appears.
new text end

Sec. 30. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, sections 136A.031, subdivision 2; and 136A.121,
subdivision 9b,
new text end new text begin are repealed.
new text end

ARTICLE 3

STATE GRANT

Section 1.

Minnesota Statutes 2012, section 136A.101, subdivision 5a, is amended to
read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means
the amount of a family's contribution to a student's cost of attendance, as determined by a
federal need analysis. For dependent students, the assigned family responsibility is 96
percent of the parental contribution. For independent students with dependents other than
a spouse, the assigned family responsibility is 86 percent of the student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin68deleted text end new text begin50 new text endpercent of the student contribution.

Sec. 2.

Minnesota Statutes 2012, section 136A.121, subdivision 5, is amended to read:


Subd. 5.

Grant stipends.

The grant stipend shall be based on a sharing of
responsibility for covering the recognized cost of attendance by the applicant, the
applicant's family, and the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
deducting the following:

(1) the assigned student responsibility of at least deleted text begin46deleted text end new text begin50 new text endpercent of the cost of
attending the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $100 per academic year.

Sec. 3. new text beginSTATE GRANT TUITION CAPS; LIVING AND MISCELLANEOUS
EXPENSE ALLOWANCE.
new text end

new text begin (a) For the purposes of the state grant program under Minnesota Statutes, section
136A.121, for the biennium ending June 30, 2015, the tuition maximum is $13,000 each
fiscal year of the biennium for students in four-year programs, and $5,808 in each fiscal
year of the biennium for students in two-year programs.
new text end

new text begin (b) The living and miscellaneous expense allowance for the state grant program
under Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2015, is set
at $7,900 for each fiscal year of the biennium.
new text end

Sec. 4. new text beginSTATE GRANT AWARD CALCULATION; MNSCU PART-TIME
STUDENTS.
new text end

new text begin (a) State grant awards under Minnesota Statutes, section 136A.121, for the biennium
ending June 30, 2015, made from appropriations for that biennium for part-time students
attending a Minnesota state college and university system institution shall be modified
as provided by this section. All other provisions of law and rule applying to state grant
awards not inconsistent with this section shall apply to awards to those part-time students.
new text end

new text begin (b) For a student registering for less than full-time, the assigned family responsibility
is the amount determined for a full-time student under Minnesota Statutes, section
136A.101, subdivision 5a, prorated by the percent of full-time for which a student is
enrolled.
new text end

ARTICLE 4

PROSPERITY ACT

Section 1.

new text begin [135A.043] RESIDENT TUITION.
new text end

new text begin (a) A student, other than a nonimmigrant alien within the meaning of United States
Code, title 8, section 1101, subsection (a), paragraph (15), shall qualify for a resident
tuition rate or its equivalent at state universities and colleges if the student meets all of the
following requirements:
new text end

new text begin (1) high school attendance within the state for three or more years;
new text end

new text begin (2) graduation from a state high school or attainment within the state of the
equivalent of high school graduation; and
new text end

new text begin (3) in the case of a student without lawful immigration status: (i) documentation
that the student has complied with selective service registration requirements; and (ii) if a
federal process exists for the student to obtain lawful immigration status the student must
present the higher education institution with documentation from federal immigration
authorities that the student has filed an application to obtain lawful immigration status.
new text end

new text begin (b) This section is in addition to any other statute, rule, or higher education
institution regulation or policy providing eligibility for a resident tuition rate or its
equivalent to a student.
new text end

new text begin (c) The Board of Regents of the University of Minnesota is requested to adopt a
policy implementing this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and applies to tuition
for school terms commencing on or after July 1, 2013.
new text end

Sec. 2.

new text begin [135A.044] PRIVATE SCHOLARSHIP AID.
new text end

new text begin A public postsecondary institution may use private sources of funding to provide aid
to a student eligible for resident tuition under section 135A.043. This section is in addition
to any other authority of an institution to provide financial aid.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and applies to financial
aid for school terms commencing on or after July 1, 2013.
new text end

Sec. 3.

Minnesota Statutes 2012, section 136A.101, subdivision 8, is amended to read:


Subd. 8.

Resident student.

"Resident student" means a student who meets one of
the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary
education for at least 12 months without being enrolled at a postsecondary educational
institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high school
and the student is physically attending a Minnesota postsecondary educational institution;

(4) a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota;

(5) a member, spouse, or dependent of a member of the armed forces of the United
States stationed in Minnesota on active federal military service as defined in section
190.05, subdivision 5c;

(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
is a Minnesota resident;

(7) a person or spouse of a person who relocated to Minnesota from an area that
is declared a presidential disaster area within the preceding 12 months if the disaster
interrupted the person's postsecondary education; deleted text beginor
deleted text end

(8) a person defined as a refugee under United States Code, title 8, section
1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
continued to reside in Minnesotanew text begin; or
new text end

new text begin (9) a student eligible for resident tuition under section 135A.043new text end.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013, and applies to school
terms commencing on or after July 1, 2013.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Rules, part 4830.0100, subpart 5, item F, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end