1.1 	A bill for an act
1.2 	relating to higher education; authorizing the Board of
1.3 	Trustees to establish a four-year state university to
1.4 	be colocated on the property of the Rochester
1.5 	Community and Technical College; requiring a planning
1.6 	report to the legislature; appropriating money for
1.7 	planning, operations, and capital improvements; making
1.8 	the new university contingent on fully funding MnSCU;
1.9 	authorizing the issuance of general obligation bonds;
1.10 	amending Minnesota Statutes 2004, section 136F.11.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	Section 1. Minnesota Statutes 2004, section 136F.11, is
1.13 	amended to read:
1.14 	136F.11 CHANGES IN DESIGNATION AND STATUS OF EDUCATIONAL
1.15 	INSTITUTIONS.
1.16 	Educational institutions heretofore known and described as
1.17 	state normal schools and state teachers colleges as designated
1.18 	in Minnesota Statutes have been redesignated as state
1.19 	universities.  All property of the Duluth State College has been
1.20 	transferred and all obligations of the college have been assumed
1.21 	by the regents of the University of Minnesota in accordance with
1.22 	Minnesota Statutes 1974, section 137.13, and this college is now
1.23 	part of the university.  The Southwest State University has been
1.24 	established in accordance with the provisions of Minnesota
1.25 	Statutes 1976, section 136.016. Minnesota State University,
1.26 	Rochester, is established in accordance with section 2.

1.27 	Sec. 2. MINNESOTA STATE UNIVERSITY, ROCHESTER.
 1.28 		Subdivision 1.Establishment. The Board of Trustees of
2.1 	the Minnesota State Colleges and Universities is authorized, as
2.2 	required by Minnesota Statutes, section 136F.16, subdivision 1,
2.3 	to establish a comprehensive four-year state university in
2.4 	Rochester, Minnesota, as an institution to grant baccalaureate
2.5 	and graduate degrees.  In developing the university, its
2.6 	offerings and curriculum, the board must use a planning process
2.7 	that involves the existing higher education partnerships of the
2.8 	Greater Rochester Area University Center, including the
2.9 	partnership for graduate education with the University of
2.10 	Minnesota, the undergraduate and workforce preparation of the
2.11 	Rochester Community and Technical College, partnerships with
2.12 	other state universities, and partnerships with area businesses,
2.13 	health care organizations, and other private organizations.  The
2.14 	board must provide transitions for students and faculty between
2.15 	the educational opportunities of the University Center and the
2.16 	four-year state university.
2.17 		Subd. 2.Mission. The Board of Trustees shall establish
2.18 	a university to support the population and economic growth of
2.19 	the region that focuses on the opportunities and needs of the
2.20 	Rochester area, and that builds on, and expands the educational
2.21 	opportunities of the existing education partnerships.  The board
2.22 	must develop a curriculum with academic programs that include
2.23 	health sciences, technology and applied research.
2.24 		Subd. 3.Location. The Minnesota State University,
2.25 	Rochester, must share the property and facilities of the
2.26 	Rochester Community and Technical College.  During the
2.27 	transition period, the university shall share the property and
2.28 	facilities of the University Center.
2.29 		Subd. 4.Plan. By March 1, 2006, the board must present
2.30 	a written plan to the legislature and the governor that includes:
2.31 	(1) an organizational and management plan that provides for
2.32 	a coordinated campus with the community and technical college
2.33 	and the four-year university;
2.34 	(2) a financing plan for the university, including the
2.35 	contributions from the city of Rochester and private partners,
2.36 	and a proposal for any realignment of state public higher
3.1 	education resources;
3.2 	(3) a description of the academic programs to be offered
3.3 	with a focus on health care, technology, biotechnology, life
3.4 	sciences and technology, and applied research; and 
3.5 	(4) a capital plan and proposed schedule of capital needs
3.6 	of the Minnesota State University, Rochester.

3.7 	Sec. 3. APPROPRIATION; MINNESOTA STATE UNIVERSITY,
3.8 	ROCHESTER.
 3.9 	$3,000,000 is appropriated from the general fund to the
3.10 	Board of Trustees of the Minnesota State Colleges and
3.11 	Universities for planning and operation of Minnesota State
3.12 	University, Rochester, under section 1.  This appropriation does
3.13 	not cancel but is available until expended.

3.14 	Sec. 4. APPROPRIATION; CAPITAL PROJECTS AT ROCHESTER
3.15 	COMMUNITY AND TECHNICAL COLLEGE FOR MINNESOTA STATE UNIVERSITY,
3.16 	ROCHESTER.
 3.17 	$12,759,000 is appropriated from the bond proceeds fund to
3.18 	the Board of Trustees of the Minnesota State Colleges and
3.19 	Universities for capital improvements at the Rochester Community
3.20 	and Technical College and the Greater Rochester Area University
3.21 	Center in Rochester for the Minnesota State University,
3.22 	Rochester.  The appropriation must be used to design, furnish,
3.23 	and equip the renovation of the vacant Rockenbach Gymnasium,
3.24 	portions of the Heintz Center, and the University Center main
3.25 	campus buildings for use as a health sciences center, to expand
3.26 	the dental clinic, and to create a community primary care clinic.

3.27 	Sec. 5. BOND SALE.
 3.28 	To provide the money appropriated by section 4 from the
3.29 	bond proceeds fund, the commissioner of finance shall sell and
3.30 	issue bonds of the state in an amount up to $12,759,000 in the
3.31 	manner, on the terms, and with the effect prescribed by
3.32 	Minnesota Statutes, sections 16A.631 to 16A.675, and by the
3.33 	Minnesota Constitution, article XI, sections 4 to 7.

3.34 	Sec. 6. CONTINGENT EFFECTIVE DATE.
 3.35 	Sections 1 to 3 are effective July 1, 2005, if the
3.36 	appropriation for the Minnesota State Colleges and Universities
4.1 	for the fiscal year ending June 30, 2007, is at least equal to
4.2 	the enrollment base adjustment of $130,800,000 plus an
4.3 	additional general fund appropriation of $66,500,000 for
4.4 	strategic priorities.