HF 1101

3rd Engrossment - 87th Legislature (2011 - 2012) Posted on 05/20/2011 09:11am

A bill for an act
relating to higher education; amending postsecondary education provisions;
prohibiting use of certain funds to support human cloning; requiring a study;
requiring reports; making technical changes; appropriating money; amending
Minnesota Statutes 2010, sections 135A.51, subdivision 2; 136A.121,
subdivision 6; 136A.1787; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05,
subdivisions 1, 6, 8; proposing coding for new law in Minnesota Statutes,
chapters 136A; 136F; 137; 145; repealing Minnesota Statutes 2010, sections
135A.26; 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 181.986; Laws 2009,
chapter 95, article 2, section 39.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text begin SUMMARY 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 2012 new text end		new text begin 2013 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 1,252,883,000 new text end	new text begin $ new text end	new text begin 1,252,634,000 new text end	new text begin $ new text end	new text begin 2,505,517,000 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 1,255,040,000 new text end	new text begin $ new text end	new text begin 1,254,791,000 new text end	new text begin $ new text end	new text begin 2,509,831,000 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 2012 new text end		new text begin 2013 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 190,694,000 new text end	new text begin $ new text end	new text begin 190,445,000 new text end	new text begin $ new text end	new text begin 381,139,000 new text end
new text begin Mayo Medical Foundation 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 Board of Trustees of the Minnesota State Colleges and Universities new text end		new text begin 540,494,000 new text end		new text begin 540,494,000 new text end		new text begin 1,080,988,000 new text end
new text begin Board of Regents of the University of Minnesota new text end		new text begin 522,501,000 new text end		new text begin 522,501,000 new text end		new text begin 1,045,002,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,255,040,000 new text end	new text begin $ new text end	new text begin 1,254,791,000 new text end	new text begin $ new text end	new text begin 2,509,831,000 new text end

Sec. 2. new text begin HIGHER 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 "2012" and "2013" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2012, or
June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
year 2013. "The biennium" is fiscal years 2012 and 2013.
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 2012 new text end		new text begin 2013 new text end

Sec. 3. new text begin MINNESOTA 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 190,694,000 new text end

new text begin $ new text end

new text begin 190,445,000 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 154,624,000 new text end

new text begin 154,625,000 new text end

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

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

new text begin Subd. 3. new text end new text begin Safety Officers' 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. 4. 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. 5. 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. 6. new text end new text begin Indian Scholarships new text end

new text begin 1,850,000 new text end

new text begin 1,850,000 new text end

new text begin This appropriation includes funding each
year to administer the Indian scholarship
program.
new text end

new text begin Subd. 7. 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 grants under Minnesota Statutes,
section 136A.861. Up to $50,000 of this
appropriation each year may be used for
administrative expenses.
new text end

new text begin Subd. 8. 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. 9. 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 the United Family Medicine
residency program. This appropriation
shall be used to support up to 18 resident
physicians each year in family practice at
United Family Medicine residency programs
and shall prepare doctors to practice family
care medicine in underserved rural and
urban areas of the state. It is intended
that this program will improve health
care in underserved communities, provide
affordable access to appropriate medical
care, and manage the treatment of patients in
a cost-effective manner.
new text end

new text begin Subd. 10. new text end new text begin Interstate Tuition Reciprocity new text end

new text begin 3,150,000 new text end

new text begin 3,250,000 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. 11. new text end new text begin Minnesota College Savings Plan new text end

new text begin 350,000 new text end

new text begin -0- new text end

new text begin Subd. 12. new text end new text begin MnLINK Gateway and Minitex new text end

new text begin 5,605,000 new text end

new text begin 5,605,000 new text end

new text begin Subd. 13. new text end new text begin Student and 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. 14. 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. 15. 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. 16. new text end new text begin Agency Administration new text end

new text begin 2,365,000 new text end

new text begin 2,365,000 new text end

new text begin Subd. 17. 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. 18. 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 achieve scholarship
appropriation, the public safety officers'
survivors appropriation, and the Minnesota
college savings plan appropriation. Transfers
from the child care or state work-study
appropriations may only be made to the
extent there is a projected surplus in the
appropriation. A transfer may be made only
with prior written notice to the chairs and
ranking minority members of the senate and
house of representatives committees with
jurisdiction over higher education finance.
new text end

Sec. 4. new text begin BOARD 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 540,494,000 new text end

new text begin $ new text end

new text begin 540,494,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 540,494,000 new text end	new text begin 540,494,000 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. The reduction in
the appropriation made by this subdivision
from the net appropriation made for the
central office and shared services unit in the
biennium ending June 30, 2011, must not be
allocated to any institution nor charged back
to any campus or institution.
new text end

new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end

new text begin 503,305,000 new text end

new text begin 503,305,000 new text end

new text begin $102,000 each year is for the Cook
County Higher Education Board to provide
educational programs and academic support
services. The base appropriation under this
paragraph is $102,000.
new text end

new text begin One percent of the fiscal year 2013
appropriation in this subdivision is available
in fiscal year 2013 after the Board of
Trustees of the Minnesota State Colleges
and Universities demonstrates to the
commissioner of management and budget
that the board has achieved at least three of
the following five performance goals:
new text end

new text begin (1) increase by at least seven percent,
compared to fiscal year 2009, graduates or
degrees, diplomas and certificates conferred;
new text end

new text begin (2) increase by at least ten percent, compared
to fiscal year 2010, the number of students
of color;
new text end

new text begin (3) increase by at least fifteen percent,
compared to fiscal year 2010, the full year
equivalent enrollment of students taking
online or blended courses or the number of
online and blended sections;
new text end

new text begin (4) increase by at least one percent the fall
2011 persistence and completion rate for fall
2010 entering students compared to the fall
2010 rate for fall 2009 entering students; and
new text end

new text begin (5) decrease by at least two percent,
compared to calendar year 2009, total energy
consumption per square foot.
new text end

new text begin By October 1, 2011, 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.
new text end

new text begin On or before April 1, 2012, 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.
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

new text begin Subd. 5. new text end new text begin Education Priorities new text end

new text begin The Board of Trustees, in fulfilling the
requirements of Minnesota Statutes, section
136F.06, by making reductions, approving
programs of study, establishing requirements
for completion of programs, and approving
course offerings and requirements for
credentials, must place the highest priority on
meeting the needs of Minnesota employers
for a skilled workforce. The board must
focus on the efficient delivery of higher
education, eliminate duplication throughout
the system, and streamline the operation
of the system to provide an education that
prepares students for the workforce needs of
Minnesota.
new text end

Sec. 5. new text begin BOARD 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 522,501,000 new text end

new text begin $ new text end

new text begin 522,501,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2012 new text end	new text begin 2013 new text end
new text begin General new text end	new text begin 520,344,000 new text end	new text begin 520,344,000 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 458,881,000 new text end

new text begin 458,881,000 new text end

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

new text begin (b) This appropriation includes money for
the Veterinary Diagnostic Laboratory to
preserve accreditation.
new text end

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

new text begin (d) One percent of the fiscal year 2013
appropriation in this subdivision is available
in fiscal year 2013 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 the amount of institutional
financial aid so that it is greater in fiscal year
2012 than in fiscal year 2010, excluding
federal stimulus funding. Institutional
financial aid includes funds from the
University of Minnesota Foundation and the
Minnesota Medical Foundation;
new text end

new text begin (2) produce at least 13,500 total degrees on
all campuses in fiscal year 2012;
new text end

new text begin (3) increase the undergraduate four- and
six-year graduation rates on the Twin Cities
campus for 2011-2012, as reported in the
federal completions survey, over the numbers
for 2009-2010, as reported in the federal
completion survey;
new text end

new text begin (4) produce total research and development
expenditures, as reported to the National
Science Foundation (NSF) for the University
of Minnesota system so that the amount
in the 2012 NSF report is not less than the
amount in the 2010 NSF report; and
new text end

new text begin (5) produce sponsored funding from business
and industry so that funding in fiscal year
2012, as reported to the Board of Regents
in December of that year, is not less than
funding in fiscal year 2010.
new text end

new text begin By October 1, 2011, 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.
new text end

new text begin On or before April 1, 2012, 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.
new text end

new text begin Subd. 3. new text end new text begin Education Priorities new text end

new text begin The Board of Regents, in fulfilling
their governance responsibilities for
the University of Minnesota by making
reductions, approving programs of study,
establishing requirements for completion of
programs, approving course offerings and
requirements for credentials, and authorizing
and funding research are encouraged to place
the highest priority on meeting the needs of
Minnesota employers for a skilled workforce.
The board must focus on the efficient delivery
of higher education, eliminate duplication
and redundancy, streamline administration,
and focus on providing an education that
prepares students for the workforce needs of
Minnesota.
new text end

new text begin Subd. 4. 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. 5. 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, 2013, the Board of
Regents must submit a report to the
legislative committees with responsibility
for agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this section.
new text end

new text begin (b) new text begin Health Sciences new text end 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 the rural areas of
the state. The legislature intends this program
to improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner.
new text end

new text begin 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 begin Institute 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 5,056,000 new text end

new text begin 5,056,000 new text end

new text begin For general research, industrial relations
education, Natural Resources Research
Institute, Center for Urban and Regional
Affairs, Bell Museum of Natural History, and
the Humphrey exhibit.
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 senate and house of representatives
committees responsible for higher education
and economic development by June 30 of
each fiscal year.
new text end

new text begin Subd. 6. 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 begin MAYO MEDICAL FOUNDATION 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 for the
purposes 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 of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations.
new text end

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

Sec. 7. new text begin TUITION LIMITATION AT MINNESOTA STATE COLLEGES AND
UNIVERSITIES.
new text end

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

new text begin (1) three percent per academic year at a state college; and
new text end

new text begin (2) five percent in the first academic year and four percent in the second academic
year at a state university.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities must limit
the rate of increase for any mandatory fee charged to a student at a university or college to
four percent per year in the biennium ending June 30, 2013, unless a higher increase is
approved by a public majority vote by the recognized campus student association.
new text end

Sec. 8. new text begin TUITION LIMITATION; UNIVERSITY OF MINNESOTA.
new text end

new text begin The legislature expects that during the biennium ending June 30, 2013, the
maximum tuition rate increase to a Minnesota resident undergraduate student enrolled at
the University of Minnesota shall not exceed five percent the first academic year and four
percent the second academic year.
new text end

new text begin The legislature expects that the rate of increase for any mandatory fee charged to
a student at the University of Minnesota will be limited to a maximum of four percent
per year in the biennium ending June 30, 2013, unless a higher increase is approved by a
majority vote of the campus student association.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

Section 1.

new text begin [136A.051] STUDENT RECORDS AND DATA.
new text end

new text begin When a nonpublic institution of higher education provides the Office of Higher
Education student data or records pursuant to section 136A.05, subdivision 1; 136A.121,
subdivision 18; or 136A.1701, subdivision 11, the institution of higher education is not
liable for a breach of confidentiality, disclosure, use, retention, or destruction of the
student data or records, if the breach, disclosure, use, retention, or destruction results from
actions or omissions of:
new text end

new text begin (1) the Office of Higher Education; or
new text end

new text begin (2) persons provided access to the data or records by the Office of Higher Education.
new text end

Sec. 2.

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

Subd. 2.

Senior citizen.

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:

Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of
deleted text begin allowances deleted text end new text begin : (1) an allowance new text end specified in law for living and miscellaneous expenses,
and new text begin (2) new text end an allowance for tuition and fees equal to the lesser of the average tuition and
fees charged by the institution, or deleted text begin the deleted text end new text begin a new text end tuition and fee deleted text begin maximums deleted text end new text begin maximum if one is new text end
established in law. new text begin If no tuition and fee maximum is established in law, the allowance for
tuition and fees is equal to the lesser of: (1) the average tuition and fees charged by the
institution, and (2) for two-year programs, an amount equal to the highest tuition and fees
charged at a public two-year institution, or for four-year programs, an amount equal to
the highest tuition and fees charged at a public university.
new text end

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance to the actual number of credits for which the student is enrolled.

(c) The recognized cost of attendance for a student who is confined to a Minnesota
correctional institution shall consist of the tuition and fee component in paragraph (a),
with no allowance for living and miscellaneous expenses.

(d) For the purpose of this subdivision, "fees" include only those fees that are
mandatory and charged to full-time resident students attending the institution. Fees do
not include charges for tools, equipment, computers, or other similar materials where the
student retains ownership. Fees include charges for these materials if the institution retains
ownership. Fees do not include optional or punitive fees.

Sec. 4.

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

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

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

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

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

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

(b) new text begin If the office determines the need under paragraph (a), clause (2), to be for the
immediately following fiscal year, new text end the governor shall include and submit the amounts
certified by the office in accordance with this section to the legislature in the governor's
budget for the new text begin immediately new text end following fiscal year deleted text begin , or deleted text end new text begin . If the office determines the need
under paragraph (a), clause (1), (2), or (3), to be for the current fiscal year, the governor
shall include and submit the amounts certified new text end in a governor's supplemental budget if the
regular budget for that year has previously been deleted text begin approved deleted text end new text begin enacted new text end .

Sec. 5.

new text begin [136F.705] UNDERGRADUATE TUITION GUARANTEE PLAN.
new text end

new text begin (a) The board of trustees is encouraged to offer entering students a plan providing
stable tuition for students pursuing two-year or four-year degrees that can provide students
a tuition option designed to meet the goals in this section.
new text end

new text begin (b) A Minnesota resident student who first enrolls in a degree program at a state
college or university beginning in the fall of 2011 or later is guaranteed a stable tuition
for up to four consecutive academic years.
new text end

new text begin (c) For an undergraduate student enrolled in a baccalaureate degree program at a
state university, the tuition charged to the student for each semester of enrollment during
a four-year period, beginning with the first semester of enrollment, must not exceed the
amount of tuition that the student was charged for the first semester of enrollment. For a
student who continues to be enrolled after four consecutive academic years, the tuition
rate for each semester in excess of four years is equal to the tuition rate paid by new
enrollees at the state university.
new text end

new text begin (d) For an undergraduate student enrolled in an associate degree program at a college,
the tuition charged to the student for each semester of enrollment during a two-year period,
beginning with the first semester of enrollment, must not exceed the amount of tuition that
the student was charged for the first semester of enrollment. For a student who continues
to be enrolled after two consecutive academic years, the tuition rate for each semester in
excess of two years is equal to the tuition rate for new enrollees at the college.
new text end

new text begin (e) Time limits for the stable tuition plan under this section do not apply to a student
in the military while the student is on active military duty.
new text end

Sec. 6.

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

136G.01 PLAN ESTABLISHED.

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

(1) providing a qualified tuition plan under federal tax law; new text begin and
new text end

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

deleted text begin (3) deleted text end new text begin (2) new text end encouraging individuals, foundations, and businesses to provide additional
grants to participating students.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 7.

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

Subdivision 1.

General.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 8.

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

Subd. 18.

Matching grant.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 9.

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

Subd. 27.

Plan.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 10.

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

Subdivision 1.

Responsibilities.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 11.

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

Subd. 6.

Three-year period for withdrawal of grants.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 12.

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

Subd. 8.

Administration.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 13.

new text begin [137.105] UNDERGRADUATE TUITION GUARANTEE PLAN.
new text end

new text begin The Board of Regents is encouraged to offer students a guaranteed tuition plan
that can provide students a tuition option designed to meet the goals in this section.
A Minnesota resident student who first enrolls in a degree program at the University
of Minnesota beginning in the fall of 2011 or later may be offered guaranteed stable
tuition for up to four consecutive academic years. Under the guaranteed plan, for an
undergraduate student enrolled in a baccalaureate degree program, the tuition charged to
the student for each semester of enrollment during a four-year period, beginning with the
first semester of enrollment, must not exceed the amount of tuition that the student was
charged for the first semester of enrollment. For a student who continues to be enrolled
after four consecutive academic years, the tuition rate for each semester in excess of four
years is equal to the tuition rate paid by new enrollees at the University of Minnesota.
Time limits for the stable tuition plan under this section do not apply to a student in the
military while the student is on active military duty.
new text end

Sec. 14.

new text begin [145.4221] STATE FUNDS; PROHIBITED USE FOR HUMAN
CLONING.
new text end

new text begin Subdivision 1. new text end

new text begin Prohibited use of state funds. new text end

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

new text begin Subd. 2. new text end

new text begin Scientific research. new text end

new text begin Nothing in this section shall affect areas of scientific
research not specifically addressed by this section, including research in the use of
nuclear transfer or other cloning techniques to produce molecules, DNA, cells other than
human embryos, tissues, organs, plants, or animals other than humans. In addition, not
withstanding section 145.422, nothing in this section shall affect the scientific field of stem
cell research, unless explicitly prohibited.
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. 15. new text begin STUDY OF GRADUATE EDUCATION IN FOR-PROFIT SECTOR.
new text end

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

Sec. 16. new text begin CREDIT TRANSFER WITHIN MINNESOTA STATE COLLEGES
AND UNIVERSITIES.
new text end

new text begin When providing the report required by Laws 2010, chapter 364, section 38,
the Board of Trustees of the Minnesota State Colleges and Universities shall provide
information about progress made toward achieving the goals described in the system's
smart transfer plan, and shall provide information about the number of students
transferring between and among the system's two- and four-year institutions during the
previous fiscal year. In addition, the Board of Trustees shall include a system study of
mechanisms for effective transfer in other states.
new text end

Sec. 17. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2010, sections 135A.26; and 181.986, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9,
and 10, new text end new text begin are repealed effective July 2, 2012.
new text end

new text begin (c) new text end new text begin Laws 2009, chapter 95, article 2, section 39, new text end new text begin is repealed effective July 1, 2011.
new text end