1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; providing for programs relating to higher 
  1.4             education; appropriating money and reducing earlier 
  1.5             appropriations with certain conditions; amending 
  1.6             Minnesota Statutes 2001 Supplement, sections 136A.124, 
  1.7             subdivisions 2, 4; 136G.01; 136G.11, subdivision 1; 
  1.8             Laws 2001, First Special Session chapter 1, article 1, 
  1.9             section 2, subdivision 3; repealing Minnesota Statutes 
  1.10            2000, section 124D.95, subdivisions 1, 2, 3, 4, 5, 7, 
  1.11            8; Minnesota Statutes 2001 Supplement, section 
  1.12            136G.11, subdivisions 2, 3, 4, 5, 6, 7, 8, 9, 10; Laws 
  1.13            1997, chapter 183, article 2, section 19. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.16     The dollar amounts in the columns marked "APPROPRIATIONS" 
  1.17  are added to or, if shown in parentheses, are subtracted from 
  1.18  the appropriations in Laws 2001, First Special Session chapter 
  1.19  1, or other law to the specified agencies.  The appropriations 
  1.20  are from the general fund or any other named fund and are 
  1.21  available for the fiscal years indicated for each purpose.  The 
  1.22  figure 2002 or 2003 means that the addition to or subtraction 
  1.23  from the appropriations listed under the figure are for the 
  1.24  fiscal year ending June 30, 2002, or June 30, 2003, 
  1.25  respectively.  If only one figure is shown in the text for a 
  1.26  specified purpose, the addition or subtraction is for 2002 
  1.27  unless the context intends another fiscal year. 
  1.28                          SUMMARY BY FUND
  1.29                            2002          2003           TOTAL
  2.1   General            $ ( 8,294,000) $ (41,706,000) $ (50,000,000)
  2.4                    SUMMARY BY AGENCY - ALL FUNDS
  2.5                             2002          2003           TOTAL
  2.6   Higher Education 
  2.7   Services Office   $ ( 8,294,000)  $ ( 2,493,000) $ (10,787,000)
  2.8   Board of Trustees of 
  2.9   the Minnesota State Colleges 
  2.10  and Universities                  $ (19,214,000) $ (19,214,000)
  2.11  Board of Regents of the 
  2.12  University of Minnesota           $ (19,999,000) $ (19,999,000)
  2.13                                APPROPRIATIONS 
  2.14                            Available for the Year 
  2.15                                Ending June 30 
  2.16                              2002         2003 
  2.17  Sec. 2.  HIGHER EDUCATION     
  2.18  SERVICES OFFICE
  2.19  Subdivision 1.  Total       
  2.20  Appropriation Changes   (8,294,000)   (2,493,000)  (10,787,000)
  2.21  Subd. 2.  State Grants   ( 400,000)    2,795,000     2,395,000 
  2.22  Notwithstanding Laws 2001, First 
  2.23  Special Session chapter 1, article 1, 
  2.24  section 2, subdivision 2, savings in 
  2.25  the state grant program in fiscal year 
  2.26  2003 resulting from any increase in the 
  2.27  maximum federal grant over $3,750 or 
  2.28  from any other source, after use to 
  2.29  provide additional decreases in the 
  2.30  family responsibility for independent 
  2.31  students as provided by law, shall 
  2.32  remain in the state grant program.  
  2.33  Reductions are made to appropriations 
  2.34  for the summer scholarship program and 
  2.35  the national service scholars program.  
  2.36  The appropriation for the advanced 
  2.37  placement scholarship is reduced by 
  2.38  $75,000 in fiscal year 2003. 
  2.39  Subd. 3.  Interstate Tuition
  2.40  Reciprocity             (1,500,000)   (1,000,000)   (2,500,000)
  2.41  Subd. 4.  MnLink        (4,358,000)   (   45,000)   (4,403,000)
  2.42  For fiscal year 2002, $4,318,000 of the 
  2.43  remaining appropriation in Laws 1997, 
  2.44  chapter 183, article 1, section 2, 
  2.45  subdivision 8, cancels to the general 
  2.46  fund. 
  2.47  Subd. 5.  Minitex       (  382,000)   (  900,000)   (1,282,000)
  2.48  Subd. 6.  Learning   
  2.49  Network of Minnesota    (  270,000)   (  900,000)   (1,170,000)
  2.50  Subd. 7.  Minnesota College 
  2.51  Savings Plan            (1,100,000)   (1,520,000)   (2,620,000) 
  3.1   Subd. 8.  Agency  
  3.2   Administration         (  284,000)   (  793,000)    (1,077,000)
  3.3   This reduction includes reductions to 
  3.4   appropriations for Get Ready and 
  3.5   post-secondary service learning grants. 
  3.6   Notwithstanding Laws 2001, First 
  3.7   Special Session chapter 1, article 1, 
  3.8   section 2, subdivision 9, remaining 
  3.9   appropriations after final payments to 
  3.10  Youthworks grantees in an amount 
  3.11  estimated to be $130,000 cancels to the 
  3.12  general fund. 
  3.13  Sec. 3.  BOARD OF TRUSTEES OF THE
  3.14  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  3.15  Total Appropriation Changes         (19,214,000)   (19,214,000)
  3.16  For fiscal years 2004 and 2005, the 
  3.17  base appropriation is reduced an 
  3.18  additional $4,127,000 each year. 
  3.19  The legislature intends that the board 
  3.20  of trustees should minimize the impact 
  3.21  of reductions in this section on 
  3.22  students by decreasing administrative 
  3.23  expenditures and reserve balances and 
  3.24  through programmatic restructuring 
  3.25  before increasing student tuition. 
  3.26  Sec. 4.  BOARD OF REGENTS OF
  3.27  THE UNIVERSITY OF MINNESOTA
  3.28  Total Appropriation Changes         (19,999,000)   (19,999,000)
  3.29  For fiscal years 2004 and 2005, the 
  3.30  base appropriation is reduced an 
  3.31  additional $4,297,000 each year. 
  3.32  The legislature intends that the board 
  3.33  of regents should minimize the impact 
  3.34  of reductions in this section on 
  3.35  students by decreasing administrative 
  3.36  expenditures and reserve balances 
  3.37  before increasing student tuition.  
  3.38  Reductions under this section may be 
  3.39  made to general fund appropriations in 
  3.40  Laws 2001, First Special Session 
  3.41  chapter 1, article 1, section 4, except 
  3.42  for appropriations to the agricultural 
  3.43  and extension service under Laws 2001, 
  3.44  First Special Session chapter 1, 
  3.45  article 1, section 4, subdivision 4, 
  3.46  paragraph (a). 
  3.47     Sec. 5.  Laws 2001, First Special Session chapter 1, 
  3.48  article 1, section 2, subdivision 3, is amended to read:  
  3.49  Subd. 3.  Interstate Tuition
  3.50  Reciprocity                            5,250,000      5,250,000 
  3.51  If the appropriation in this 
  3.52  subdivision for either year is 
  3.53  insufficient, the appropriation for the 
  3.54  other year is available to meet 
  3.55  reciprocity contract obligations. 
  3.56  The higher education services office 
  4.1   must negotiate the reciprocity 
  4.2   agreements for remission of nonresident 
  4.3   tuition under Minnesota Statutes, 
  4.4   section 136A.08.  The agreements must 
  4.5   be negotiated under this subdivision 
  4.6   ~~with the goal of reducing and~~ 
  4.7   ~~minimizing~~ so that beginning with 
  4.8   academic year 2003-2004:  (1) students 
  4.9   from other states who attend Minnesota 
  4.10  institutions under a reciprocity 
  4.11  agreement pay tuition that is at least 
  4.12  equal to the tuition paid by Minnesota 
  4.13  residents attending the same 
  4.14  institution; and (2) the obligation of 
  4.15  participating states to make general 
  4.16  fund transfers for the tuition 
  4.17  reciprocity program are reduced and 
  4.18  minimized while maintaining access for 
  4.19  Minnesota students.  Negotiations must 
  4.20  include consideration of new methods of 
  4.21  collaboration with education 
  4.22  institutions in reciprocity states to 
  4.23  improve student access at lower costs, 
  4.24  including on-line learning.  The 
  4.25  chancellor of the Minnesota state 
  4.26  colleges and universities and the 
  4.27  president of the University of 
  4.28  Minnesota or their designees may 
  4.29  participate in any negotiations on the 
  4.30  tuition reciprocity agreement.  The 
  4.31  higher education services office must 
  4.32  present progress on negotiations under 
  4.33  this subdivision to the higher 
  4.34  education finance committees ~~of~~ in the 
  4.35  2002 ~~legislature~~ and 2003 legislative 
  4.36  sessions. 
  4.37     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  4.38  following final enactment. 
  4.39     Sec. 6.  [BIENNIUM PRIORITY FOR ADDITIONAL REVENUES.] 
  4.40     Notwithstanding Minnesota Statutes 2000, section 16A.1522, 
  4.41  if, on the basis of a forecast of general fund revenues and 
  4.42  expenditures, the commissioner of finance projects a positive 
  4.43  unrestricted budgetary general fund balance at the close of the 
  4.44  biennium ending June 30, 2003, after meeting the requirements of 
  4.45  Minnesota Statutes 2001 Supplement, section 16A.152, subdivision 
  4.46  2, any surplus must be allocated first to restore the 
  4.47  appropriation reductions to the board of trustees of the 
  4.48  Minnesota state colleges and universities and the board of 
  4.49  regents of the University of Minnesota enacted by the 2002 
  4.50  legislature.  The allocation to each board must be proportional 
  4.51  to the appropriation reduction, up to but not exceeding the 
  4.52  amount of the reduction.  
  4.53     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  5.1   136A.124, subdivision 2, is amended to read: 
  5.2      Subd. 2.  [ELIGIBILITY.] A grant must be awarded to a 
  5.3   student scoring an average of three or higher on five or more 
  5.4   advanced placement examinations on full-year courses or an 
  5.5   average of four or higher on five or more international 
  5.6   baccalaureate examinations on full-year courses.  Two half-year 
  5.7   courses may be considered as one full-year course.  The annual 
  5.8   amount of each grant must be based on the student's scores on 
  5.9   the examinations and the funds available under this section. 
  5.10     A grant under this subdivision must not affect a 
  5.11  recipient's eligibility for a state grant under section 136A.121.
  5.12     Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  5.13  136A.124, subdivision 4, is amended to read: 
  5.14     Subd. 4.  [ELIGIBLE INSTITUTION.] An "eligible institution" 
  5.15  under this section is a public or private four-year 
  5.16  degree-granting college or university or a two-year public 
  5.17  college in Minnesota that has a credit and placement policy for 
  5.18  either advanced placement or international baccalaureate 
  5.19  scholarship recipients, or both.  Each eligible institution must 
  5.20  annually certify its policies to the ~~office~~ commissioner of 
  5.21  children, families, and learning.  The ~~office~~ commissioner of 
  5.22  children, families, and learning must provide each Minnesota 
  5.23  secondary school with a copy of the post-secondary advanced 
  5.24  placement and international baccalaureate policies of eligible 
  5.25  institutions. 
  5.26     Sec. 9.  Minnesota Statutes 2001 Supplement, section 
  5.27  136G.01, is amended to read: 
  5.28     136G.01 [PLAN ESTABLISHED.] 
  5.29     A college savings plan known as the Minnesota college 
  5.30  savings plan is established.  In establishing this plan, the 
  5.31  legislature seeks to encourage individuals to save for 
  5.32  post-secondary education by~~:~~ 
  5.33     ~~(1)~~ providing a qualified state tuition plan under federal 
  5.34  tax law~~;~~ 
  5.35     ~~(2) providing matching grants for contributions to the~~ 
  5.36  ~~program by low- and middle-income families; and~~ 
  6.1      ~~(3) by encouraging individuals, foundations, and businesses~~ 
  6.2   ~~to provide additional grants to participating students~~. 
  6.3      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.4   following final enactment.  
  6.5      Sec. 10.  Minnesota Statutes 2001 Supplement, section 
  6.6   136G.11, subdivision 1, is amended to read: 
  6.7      Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By March 1 
  6.8   of ~~each year~~ 2002, a state matching grant must be added to each 
  6.9   account established under the program if the following 
  6.10  conditions are met: 
  6.11     (1) the contributor applies, in writing in a form 
  6.12  prescribed by the director, for a matching grant; 
  6.13     (2) a minimum contribution of $200 was made during the 
  6.14  preceding calendar year; and 
  6.15     (3) the family income of the beneficiary did not exceed 
  6.16  $80,000. 
  6.17     <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  6.18  following final enactment.  
  6.19     Sec. 11.  [REPEALER.] 
  6.20     (a) Laws 1997, chapter 183, article 2, section 19, and 
  6.21  Minnesota Statutes 2000, section 124D.95, subdivisions 1, 2, 3, 
  6.22  4, 5, 7, and 8, are repealed. 
  6.23     (b) Minnesota Statutes 2001 Supplement, section 136G.11, 
  6.24  subdivisions 2, 3, 4, 5, 6, 7, 8, 9, and 10, are repealed. 
  6.25     <b>[EFFECTIVE DATE.]</b> Paragraph (b) is effective June 1, 2002.