1.1 	A bill for an act
1.2 	relating to higher education; amending postsecondary education provisions; 
1.3 	appropriating money; requiring a report;amending Minnesota Statutes 2010, 
1.4 	section 136A.121, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 | Section 1.  SUMMARY OF APPROPRIATIONS.
1.7 		Subdivision 1.Summary By Fund. The amounts shown in this subdivision 
1.8 	summarize direct appropriations, by fund, made in this article.

1.9 | SUMMARY BY FUND
1.10 | | | 2012 | | 2013 | | Total
1.11 | General | $ | .,...,...,000 | $ | .,...,...,000 | $ | .,...,...,000
1.12 | Health Care Access | | .,...,000 | | .,...,000 | | .,...,000
1.13

1.14

State Government Special 
Revenue

..,000

..,000

...,000

1.15 | Total | $ | .,...,...,000 | $ | .,...,...,000 | $ | .,...,...,000
1.16 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
1.17 	summarize direct appropriations, by agency, made in this article.

1.18 | SUMMARY BY AGENCY - ALL FUNDS
1.19 | | | 2012 | | 2013 | | Total
1.20

1.21

Minnesota Office of Higher 
Education

$

...,...,000

$

...,...,000

$

...,...,000

1.22 | Mayo Medical Foundation | | .,...,000 | | .,...,000 | | .,...,000
1.23
1.24

1.25

Board of Trustees of the 
Minnesota State Colleges and 
Universities

...,...,000

...,...,000

.,...,...,000

2.1

2.2

Board of Regents of the 
University of Minnesota

...,...,000

...,...,000

.,...,...,000

2.3 | Total | $ | .,...,...,000 | $ | .,...,...,000 | $ | .,...,...,000

2.4 | Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
2.5 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.6 	agencies and for the purposes specified in this article. The appropriations are from the 
2.7 	general fund, or another named fund, and are available for the fiscal years indicated 
2.8 	for each purpose. The figures "2012" and "2013" used in this article mean that the 
2.9 	appropriations listed under them are available for the fiscal year ending June 30, 2012, or 
2.10 	June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 
2.11 	year 2013. "The biennium" is fiscal years 2012 and 2013.

2.12 | | | | APPROPRIATIONS
2.13 | | | | Available for the Year
2.14 | | | | Ending June 30
2.15 | | | | | 2012 | | 2013

2.16

2.17

Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.18 | Subdivision 1.Total Appropriation | $ | ...,...,000 | $ | ...,...,000
2.19 	The amounts that may be spent for each 
2.20 	purpose are specified in the following 
2.21 	subdivisions.

2.22 | Subd. 2.State Grants | | ...,...,000 | | ...,...,000
2.23 	If the appropriation in this subdivision for 
2.24 	either year is insufficient, the appropriation 
2.25 	for the other year is available for it.
2.26 	For the biennium, the tuition maximum is 
2.27 	$....... in each year for students in four-year 
2.28 	programs, and $....... for students in two-year 
2.29 	programs.
2.30 	This appropriation sets the living and 
2.31 	miscellaneous expense allowance at $....... 
2.32 	each year.

2.33 | Subd. 3.Safety Officers' Survivors | | ...,000 | | ...,000
3.1 	This appropriation is to provide educational 
3.2 	benefits under Minnesota Statutes, section 
3.3 	299A.45, to eligible dependent children and 
3.4 	to the spouses of public safety officers killed 
3.5 	in the line of duty.
3.6 	If the appropriation in this subdivision for 
3.7 	either year is insufficient, the appropriation 
3.8 	for the other year is available for it.

3.9 | Subd. 4.Child Care Grants | | .,...,000 | | .,...,000

3.10 | Subd. 5.State Work-Study | | ..,...,000 | | ..,...,000

3.11 | Subd. 6.Achieve Scholarship Program | | .,...,000 | | .,...,000
3.12 	For scholarships under Minnesota Statutes, 
3.13 	section 136A.127. 

3.14 | Subd. 7.Indian Scholarships | | .,...,000 | | .,...,000

3.15

3.16

Subd. 8.Intervention for College Attendance 
Program Grants

...,000

...,000

3.17 	For grants under Minnesota Statutes, section 
3.18 	136A.861. Up to $....... of this appropriation 
3.19 	each year may be used for administrative 
3.20 	expenses.

3.21 | Subd. 9.Midwest Higher Education Compact | | ..,000 | | ..,000

3.22 | Subd. 10.Interstate Tuition Reciprocity | | .,...,000 | | .,...,000
3.23 	If the appropriation in this subdivision for 
3.24 	either year is insufficient, the appropriation 
3.25 	for the other year is available to meet 
3.26 	reciprocity contract obligations.

3.27 | Subd. 11.Minnesota College Savings Plan | | ...,000 | | ...,000

3.28 | Subd. 12.MnLINK Gateway and Minitex | | .,...,000 | | .,...,000

3.29 | Subd. 13.Other Programs | | ...,000 | | ...,000

3.30 | Subd. 14.Agency Administration | | .,...,000 | | .,...,000

3.31 | Subd. 15.Balances Forward | | | |
4.1 	A balance in the first year under this section 
4.2 	does not cancel, but is available for the 
4.3 	second year.

4.4 | Subd. 16.Transfers | | | |
4.5 	The Minnesota Office of Higher Education 
4.6 	may transfer unencumbered balances from 
4.7 	the appropriations in this section to the state 
4.8 	grant appropriation, the interstate tuition 
4.9 	reciprocity appropriation, the child care 
4.10 	grant appropriation, the Indian scholarship 
4.11 	appropriation, the state work-study 
4.12 	appropriation, the public safety officers' 
4.13 	survivors appropriation, and the Minnesota 
4.14 	college savings plan appropriation. Transfers 
4.15 	from the child care or state work-study 
4.16 	appropriations may only be made to the 
4.17 	extent there is a projected surplus in the 
4.18 	appropriation. A transfer may be made 
4.19 	only with prior written notice to the chairs 
4.20 	of the senate and house of representatives 
4.21 	committees with jurisdiction over higher 
4.22 	education finance.

4.23 | Subd. 17.TANF Work-Study | | | |
4.24 	Notwithstanding any rule to the contrary, 
4.25 	work-study jobs funded by a TANF 
4.26 	appropriation do not require employer 
4.27 	matching funds.

4.28
4.29

4.30

Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

4.31 | Subdivision 1.Total Appropriation | $ | ...,...,000 | $ | ...,...,000

4.32 | Appropriations by Fund
4.33 | | 2012 | 2013
4.34 | General | ...,...,000 | ...,...,000
5.1 	The amounts that may be spent for each 
5.2 	purpose are specified in the following 
5.3 	subdivisions.

5.4

5.5

Subd. 2.Central Office and Shared Services 
Unit

..,...,000

..,...,000

5.6 	For the Office of the Chancellor and the 
5.7 	Shared Services Division.

5.8 | Subd. 3.Operations and Maintenance | | ...,...,000 | | ...,...,000

5.9 | Subd. 4.Learning Network of Minnesota | | .,...,000 | | .,...,000

5.10 | Subd. 5.Education Priorities | | | |
5.11 	The Board of Trustees, in fulfilling the 
5.12 	requirements of Minnesota Statutes, section 
5.13 	136F.06, by making reductions, approving 
5.14 	programs of study, establishing requirements 
5.15 	for completion of programs, and approving 
5.16 	course offerings and requirements for 
5.17 	credentials, must place the highest priority on 
5.18 	meeting the needs of Minnesota employers 
5.19 	for a skilled workforce. The board must 
5.20 	focus on the efficient delivery of higher 
5.21 	education, eliminate duplication throughout 
5.22 	the system, and streamline the operation 
5.23 	of the system to provide an education that 
5.24 	prepares students for the workforce needs of 
5.25 	Minnesota.

5.26

5.27

Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

5.28 | Subdivision 1.Total Appropriation | $ | ...,...,000 | $ | ...,...,000

5.29 | Appropriations by Fund
5.30 | | 2012 | 2013
5.31 | General | ...,...,000 | ...,...,000
5.32 | Health Care Access | .,...,000 | .,...,000
6.1 	The amounts that may be spent for each 
6.2 	purpose are specified in the following 
6.3 	subdivisions.

6.4 | Subd. 2.Operations and Maintenance | | ...,...,000 | | ...,...,000
6.5 	This appropriation includes funding for 
6.6 	operation and maintenance of the system.
6.7 	One percent of the appropriation in this 
6.8 	subdivision is available when the Board 
6.9 	of Regents of the University of Minnesota 
6.10 	demonstrates to the commissioner of 
6.11 	management and budget that the board 
6.12 	has met at least three of the five following 
6.13 	performance goals:
6.14 	(1) increase financial support to pay the cost 
6.15 	of attendance for students demonstrating 
6.16 	financial need;
6.17 	(2) maintain or improve the University of 
6.18 	Minnesota's rank in its national share of 
6.19 	total research and development expenditures 
6.20 	reported to the National Science Foundation 
6.21 	over the 2009 ranking;
6.22 	(3) increase by at least five percent, compared 
6.23 	to fiscal year 2009, the number of degrees 
6.24 	awarded in science, technology, engineering, 
6.25 	mathematics, and health sciences disciplines;
6.26 	(4) increase by at least five percent, compared 
6.27 	to fiscal year 2009, the amount of financial 
6.28 	support from key funding sources for 
6.29 	renewable energy research; and
6.30 	(5) increase and improve interaction and 
6.31 	research activity beneficial to business and 
6.32 	industry.
6.33 	By October 1, 2011, the Board of Regents 
6.34 	and the Office of Higher Education must 
7.1 	agree on specific numerical indicators and 
7.2 	definitions for each of the five goals that will 
7.3 	be used to demonstrate the University of 
7.4 	Minnesota's attainment of each goal.
7.5 	On or before April 1, 2012, the Board 
7.6 	of Regents must report to the legislative 
7.7 	committees with primary jurisdiction over 
7.8 	higher education finance and policy the 
7.9 	progress of the University of Minnesota 
7.10 	toward attaining the goals.

7.11 | Subd. 3.Education Priorities | | | |
7.12 	The Board of Regents, in fulfilling 
7.13 	their governance responsibilities for 
7.14 	the University of Minnesota by making 
7.15 	reductions, approving programs of study, 
7.16 	establishing requirements for completion of 
7.17 	programs, approving course offerings and 
7.18 	requirements for credentials, and authorizing 
7.19 	and funding research are encouraged to place 
7.20 	the highest priority on meeting the needs of 
7.21 	Minnesota employers for a skilled workforce. 
7.22 	The board must focus on the efficient delivery 
7.23 	of higher education, eliminate duplication 
7.24 	and redundancy, streamline administration, 
7.25 	and focus on providing an education that 
7.26 	prepares students for the workforce needs of 
7.27 	Minnesota.

7.28 | Subd. 4.Primary Care Education Initiatives | | .,...,000 | | .,...,000
7.29 	This appropriation is from the health care 
7.30 	access fund.

7.31 | Subd. 5.Special Appropriations | | | |

7.32 | (a) Agriculture and Extension Service | | ..,...,000 | | ..,...,000
7.33 	For the Agricultural Experiment Station and 
7.34 	the Minnesota Extension Service.

8.1 | (b) Health Sciences | | .,...,000 | | .,...,000
8.2 	$....... each year is to support up to 12 resident 
8.3 	physicians in the St. Cloud Hospital family 
8.4 	practice residency program. The program 
8.5 	must prepare doctors to practice primary care 
8.6 	medicine in the rural areas of the state. The 
8.7 	legislature intends this program to improve 
8.8 	health care in rural communities, provide 
8.9 	affordable access to appropriate medical 
8.10 	care, and manage the treatment of patients in 
8.11 	a more cost-effective manner.
8.12 	The remainder of this appropriation is for 
8.13 	the rural physicians associates program, the 
8.14 	Veterinary Diagnostic Laboratory, health 
8.15 	sciences research, dental care, and the 
8.16 	Biomedical Engineering Center.

8.17 | (c) Institute of Technology | | .,...,000 | | .,...,000
8.18 	For the Geological Survey and the talented 
8.19 	youth mathematics program.

8.20 | (d) System Special | | .,...,000 | | .,...,000
8.21 	For general research, industrial relations 
8.22 	education, Natural Resources Research 
8.23 	Institute, Center for Urban and Regional 
8.24 	Affairs, and the Bell Museum of Natural 
8.25 	History.

8.26

8.27

(e) University of Minnesota and Mayo 
Foundation Partnership

.,...,000

.,...,000

8.28 	For the direct and indirect expenses of the 
8.29 	collaborative research partnership between 
8.30 	the University of Minnesota and the Mayo 
8.31 	Foundation for research in biotechnology 
8.32 	and medical genomics. This appropriation 
8.33 	is available until expended. All parties to 
8.34 	the partnership and chairs of the senate 
9.1 	and house of representatives committees 
9.2 	responsible for higher education finance 
9.3 	must be consulted before the Board of 
9.4 	Regents reduces the amount allocated to the 
9.5 	partnership under this paragraph during the 
9.6 	biennium ending June 30, 2013. An annual 
9.7 	report on the expenditure of these funds must 
9.8 	be submitted to the governor and the chairs 
9.9 	of the senate and house of representatives 
9.10 	committees responsible for higher education 
9.11 	and economic development by June 30 of 
9.12 	each fiscal year.

9.13 | Subd. 6.Academic Health Center | | | |
9.14 	The appropriation for Academic Health 
9.15 	Center funding under Minnesota Statutes, 
9.16 	section 297F.10, is $22,250,000 each year.

9.17 | Sec. 6. MAYO MEDICAL FOUNDATION | | | |

9.18 | Subdivision 1.Total Appropriation | $ | .,...,000 | $ | .,...,000
9.19 	The amounts that may be spent for each 
9.20 	purpose are specified in the following 
9.21 	subdivisions.

9.22 | Subd. 2.Medical School | | ...,000 | | ...,000
9.23 	The state of Minnesota must pay a capitation 
9.24 	each year for each student who is a resident 
9.25 	of Minnesota. The appropriation may be 
9.26 	transferred between years of the biennium to 
9.27 	accommodate enrollment fluctuations.
9.28 	It is intended that during the biennium the 
9.29 	Mayo Clinic use the capitation money to 
9.30 	increase the number of doctors practicing in 
9.31 	rural areas in need of doctors.

9.32

9.33

Subd. 3.Family Practice and Graduate 
Residency Program

...,000

...,000

10.1 	The state of Minnesota must pay stipend 
10.2 	support for up to 27 residents each year.

10.3 	Sec. 7. Minnesota Statutes 2010, section 136A.121, subdivision 6, is amended to read:
10.4 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of (1) 
10.5 	allowances specified in law for living and miscellaneous expenses, and (2) for two-year 
10.6 	programs, an allowance for tuition and fees equal to the lesser of the average tuition 
10.7 	and fees charged by the institution, for four-year programs, the highest average tuition 
10.8 	and fees charged by a Minnesota public university, or for any program the tuition and 
10.9 	fee maximums established in law.
10.10 	(b) For a student registering for less than full time, the office shall prorate the cost of 
10.11 	attendance to the actual number of credits for which the student is enrolled.
10.12 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
10.13 	correctional institution shall consist of the tuition and fee component in paragraph (a), 
10.14 	with no allowance for living and miscellaneous expenses.
10.15 	(d) For the purpose of this subdivision, "fees" include only those fees that are 
10.16 	mandatory and charged to full-time resident students attending the institution. Fees do 
10.17 	not include charges for tools, equipment, computers, or other similar materials where the 
10.18 	student retains ownership. Fees include charges for these materials if the institution retains 
10.19 	ownership. Fees do not include optional or punitive fees.