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Office of the Revisor of Statutes

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CHAPTER 5--H.F.No. 4

An act

relating to higher education; amending postsecondary education provisions; 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 136F; 137; 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 1,282,884,000 new text end new text begin $ new text end new text begin 1,282,633,000 new text end new text begin $ new text end new text begin 2,565,517,000 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 1,285,041,000 new text end new text begin $ new text end new text begin 1,284,790,000 new text end new text begin $ new text end new text begin 2,569,831,000 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 190,823,000 new text end new text begin $ new text end new text begin 190,573,000 new text end new text begin $ new text end new text begin 381,396,000 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 545,366,000 new text end new text begin 545,365,000 new text end new text begin 1,090,731,000 new text end
new text begin Board of Regents of the University of Minnesota new text end new text begin 547,501,000 new text end new text begin 547,501,000 new text end new text begin 1,095,002,000 new text end
new text begin Total new text end new text begin $ new text end new text begin 1,285,041,000 new text end new text begin $ new text end new text begin 1,284,790,000 new text end new text begin $ new text end new text begin 2,569,831,000 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 190,823,000 new text end new text begin $ new text end new text begin 190,573,000 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 2,494,000 new text end new text begin 2,493,000 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 545,366,000 new text end new text begin $ new text end new text begin 545,365,000 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 545,366,000 new text end new text begin 545,365,000 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 508,177,000 new text end new text begin 508,176,000 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 547,501,000 new text end new text begin $ new text end new text begin 547,501,000 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 545,344,000 new text end new text begin 545,344,000 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 483,881,000 new text end new text begin 483,881,000 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 Sciencesnew 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 Technologynew 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 STATE COLLEGES. new text end

new text begin For the fiscal year ending June 30, 2013, the maximum tuition rate increase for a Minnesota resident undergraduate student at a state college of the Minnesota State Colleges and Universities must not exceed four percent. new text end

Sec. 8.

new text begin EFFECTIVE DATE; RELATIONSHIP TO OTHER APPROPRIATIONS. new text end

new text begin Unless otherwise specified, this article is effective retroactively from July 1, 2011, and supersedes and replaces funding authorized by order of the Second Judicial District Court in Case No. 62-CV-11-5203. new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

Section 1.

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

Subd. 2.

Senior citizen.

"Senior citizen" means a person who has reached deleted text begin 66deleted 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 August 15, 2011. new text end

Sec. 2.

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 allowancesdeleted text end new text begin : (1) an allowancenew 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 thedeleted text end new text begin a new text end tuition and fee deleted text begin maximumsdeleted text end new text begin maximum if one isnew 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 3.

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 ensuingdeleted text end new text begin followingnew 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 thenew text begin immediatelynew text end following fiscal yeardeleted text begin , ordeleted 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 approveddeleted text end new text begin enactednew text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 4.

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 spring of 2012 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 5.

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 andnew 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. 6.

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. 7.

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.11new text begin for eligible account beneficiaries for account contributions in calendar years 2001 to 2010new text end .

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 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. 9.

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. 10.

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 thedeleted text end new text begin a matching grantnew 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. 11.

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. 12.

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 spring of 2012 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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 13.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 14.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2011. new text end

Sec. 15.

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 effective retroactively from July 1, 2011. 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 retroactively from July 1, 2011. new text end

Presented to the governor July 19, 2011

Signed by the governor July 20, 2011, 9:10 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes