1.1 	A bill for an act
1.2 	relating to higher education; amending postsecondary education provisions; 
1.3 	modifying definitions; modifying SELF loan revenue bonds provisions; making 
1.4 	changes to eligibility requirements for safety officer's survivor education 
1.5 	benefits; phasing out Minnesota college savings plan matching grants; making 
1.6 	technical changes; ending the achieve scholarship program; appropriating 
1.7 	money;amending Minnesota Statutes 2010, sections 136A.101, subdivision 
1.8 	8; 136A.1787; 136A.87; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05, 
1.9 	subdivisions 1, 6, 8; 299A.45, subdivision 1; repealing Minnesota Statutes 
1.10 	2010, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 10, 10a, 11, 14; 
1.11 	136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; Laws 2009, chapter 95, article 
1.12 	2, section 39.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	ARTICLE 1
1.15 	HIGHER EDUCATION APPROPRIATIONS

1.16	Section 1.  SUMMARY OF APPROPRIATIONS.
 	
1.17 		Subdivision 1.Summary By Fund. The amounts shown in this subdivision 
1.18 	summarize direct appropriations, by fund, made in this article.

1.19	SUMMARY BY FUND
	
1.20			2012
		2013
		Total
	
1.21	General
	$
	1,372,787,000
	$
	1,372,885,000
	$
	2,745,672,000
	
1.22	Health Care Access
		2,157,000
		2,157,000
		4,314,000
	
1.23	Total
	$
	1,374,944,000
	$
	1,375,042,000
	$
	2,749,986,000
	
1.24 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
1.25 	summarize direct appropriations, by agency, made in this article.

2.1	SUMMARY BY AGENCY - ALL FUNDS
	
2.2			2012
		2013
		Total
	
2.3
2.4	Minnesota Office of Higher 
Education
	$
	175,284,000
	$
	175,382,000
	$
	350,666,000
	
2.5	Mayo Clinic
		1,351,000
		1,351,000
		2,702,000
	
2.6
2.7
2.8	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		592,530,000
		592,530,000
		1,185,060,000
	
2.92.10
	Board of Regents of the 
University of Minnesota
		605,779,000
		605,779,000
		1,211,558,000
	
2.11	Total
	$
	1,374,944,000
	$
	1,375,042,000
	$
	2,749,986,000

2.12	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.13 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.14 	agencies and for the purposes specified in this article. The appropriations are from the 
2.15 	general fund, or another named fund, and are available for the fiscal years indicated 
2.16 	for each purpose. The figures "2012" and "2013" used in this article mean that the 
2.17 	appropriations listed under them are available for the fiscal year ending June 30, 2012, or 
2.18 	June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal 
2.19 	year 2013. "The biennium" is fiscal years 2012 and 2013.

2.20				APPROPRIATIONS
	
2.21				Available for the Year
	
2.22				Ending June 30
	
2.23					2012
		2013

2.24
2.25	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.26	Subdivision 1.Total Appropriation
 	$
	175,284,000
	$
	175,382,000
	
2.27 	The amounts that may be spent for each 
2.28 	purpose are specified in the following 
2.29 	subdivisions.

2.30	Subd. 2.State Grants
 		144,238,000
		144,238,000
	
2.31 	If the appropriation in this subdivision for 
2.32 	either year is insufficient, the appropriation 
2.33 	for the other year is available for it.
2.34 	For the biennium, the tuition maximum 
2.35 	is $10,488 in each year for students in 
2.36 	four-year programs, and $5,808 for students 
2.37 	in two-year programs.
3.1 	This appropriation sets the living and 
3.2 	miscellaneous expense allowance at $7,000 
3.3 	each year.
3.4 	This appropriation includes the amount 
3.5 	needed for the safety officer's survivor grant 
3.6 	program under Minnesota Statutes, section 
3.7 	299A.45.

3.8	Subd. 3.Child Care Grants
 		6,350,000
		6,350,000

3.9	Subd. 4.State Work-Study
 		9,889,000
		10,239,000

3.10	Subd. 5.Indian Scholarships
 		1,900,000
		1,900,000
	
3.11 	The director must contract with at least one 
3.12 	person with demonstrated competence in 
3.13 	American Indian culture and residing in or 
3.14 	near the city of Bemidji to assist students 
3.15 	with the scholarships under Minnesota 
3.16 	Statutes, section 136A.126, and with other 
3.17 	information about financial aid for which 
3.18 	the students may be eligible. Bemidji State 
3.19 	University must provide office space at 
3.20 	no cost to the Minnesota Office of Higher 
3.21 	Education for purposes of administering the 
3.22 	American Indian scholarship program under 
3.23 	Minnesota Statutes, section 136A.126.

3.24
3.25	Subd. 6.Intervention for College Attendance 
Program Grants
 		746,000
		746,000
	
3.26 	For the intervention for college attendance 
3.27 	program under Minnesota Statutes, section 
3.28 	136A.861.
3.29 	Grants shall be awarded for one year and 
3.30 	may be renewed with documentation to the 
3.31 	Office of Higher Education.

3.32	Subd. 7.Midwest Higher Education Compact
 		95,000
		95,000

3.33	Subd. 8.Interstate Tuition Reciprocity
 		3,150,000
		3,250,000
	
4.1 	If the appropriation in this subdivision for 
4.2 	either year is insufficient, the appropriation 
4.3 	for the other year is available to meet 
4.4 	reciprocity contract obligations.

4.5	Subd. 9.Minnesota College Savings Plan
 		350,000
		-0-
	
4.6 	This appropriation is for matching grants 
4.7 	under Minnesota Statutes, section 136G.11, 
4.8 	in the first year.

4.9	Subd. 10.MnLINK Gateway and Minitex
 		5,730,000
		5,730,000

4.10	Subd. 11.Outreach Programs
 		342,000
		341,000

4.11	Subd. 12.Agency Administration
 		2,494,000
		2,493,000

4.12	Subd. 13.Balances Forward
 					
4.13 	A balance in the first year under this section 
4.14 	does not cancel, but is available for the 
4.15 	second year.

4.16	Subd. 14.Transfers
 					
4.17 	The Minnesota Office of Higher Education 
4.18 	may transfer unencumbered balances from 
4.19 	the appropriations in this section to the state 
4.20 	grant appropriation, the interstate tuition 
4.21 	reciprocity appropriation, the child care 
4.22 	grant appropriation, the Indian scholarship 
4.23 	appropriation, the state work-study 
4.24 	appropriation, and the get ready program. A 
4.25 	transfer may be made only with prior written 
4.26 	notice to the chairs of the senate and house of 
4.27 	representatives committees with jurisdiction 
4.28 	over higher education finance.

4.29
4.30
4.31	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

4.32	Subdivision 1.Total Appropriation
 	$
	592,530,000
	$
	592,530,000
	
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
 		44,249,000
		44,249,000
	
5.6 	For the Office of the Chancellor and the 
5.7 	Shared Services Division.

5.8	Subd. 3.Operations and Maintenance
 		543,769,000
		543,769,000

5.9	Subd. 4.Learning Network of Minnesota
 		4,512,000
		4,512,000

5.10
5.11	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

5.12	Subdivision 1.Total Appropriation
 	$
	605,779,000
	$
	605,779,000

5.13	Appropriations by Fund
	
5.14		2012
	2013
	
5.15	General
	603,622,000
	603,622,000
	
5.16	Health Care Access
	2,157,000
	2,157,000
	
5.17 	The amounts that may be spent for each 
5.18 	purpose are specified in the following 
5.19 	subdivisions.

5.20	Subd. 2.Operations and Maintenance
 		543,668,000
		543,668,000
	
5.21 	This appropriation includes funding for 
5.22 	operation and maintenance of the system.

5.23	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
5.24 	This appropriation is from the health care 
5.25 	access fund.

5.26	Subd. 4.Special Appropriations

5.27	(a) Agriculture and Extension Service
		42,873,000
		42,873,000
	
5.28 	For the Agricultural Experiment Station and 
5.29 	the Minnesota Extension Service.

5.30	(b) Health Sciences
		4,329,000
		4,329,000
	
5.31 	$284,000 each year is to support up to 12 
5.32 	resident physicians in the St. Cloud Hospital 
6.1 	family practice residency program. The 
6.2 	program must prepare doctors to practice 
6.3 	primary care medicine in the rural areas of 
6.4 	the state. The legislature intends this program 
6.5 	to improve health care in rural communities, 
6.6 	provide affordable access to appropriate 
6.7 	medical care, and manage the treatment of 
6.8 	patients in a more cost-effective manner.
6.9 	The remainder of this appropriation is for 
6.10 	the rural physicians associates program, the 
6.11 	Veterinary Diagnostic Laboratory, health 
6.12 	sciences research, dental care, and the 
6.13 	Biomedical Engineering Center.

6.14	(c) Institute of Technology
		1,138,000
		1,138,000
	
6.15 	For the Geological Survey and the talented 
6.16 	youth mathematics program.

6.17	(d) System Special
		5,051,000
		5,051,000
	
6.18 	For general research, industrial relations 
6.19 	education, Natural Resources Research 
6.20 	Institute, Center for Urban and Regional 
6.21 	Affairs, Bell Museum of Natural History, and 
6.22 	the Humphrey exhibit.

6.23
6.24	(e) University of Minnesota and Mayo 
Foundation Partnership
		6,563,000
		6,563,000
	
6.25 	For the direct and indirect expenses of the 
6.26 	collaborative research partnership between 
6.27 	the University of Minnesota and the Mayo 
6.28 	Foundation for research in biotechnology 
6.29 	and medical genomics. An annual report 
6.30 	on the expenditure of these funds must be 
6.31 	submitted to the governor and the chairs 
6.32 	of the senate and house of representatives 
6.33 	committees responsible for higher education 
6.34 	and economic development by June 30 of 
6.35 	each fiscal year.

7.1	Subd. 5.Academic Health Center
 					
7.2 	The appropriation for Academic Health 
7.3 	Center funding under Minnesota Statutes, 
7.4 	section 297F.10, is $22,250,000 each year.

7.5	Sec. 6. MAYO CLINIC

7.6	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
7.7 	The amounts that may be spent for the 
7.8 	purposes are specified in the following 
7.9 	subdivisions.

7.10	Subd. 2.Medical School
 		665,000
		665,000
	
7.11 	The state of Minnesota must pay a capitation 
7.12 	each year for each student who is a resident 
7.13 	of Minnesota. The appropriation may be 
7.14 	transferred between years of the biennium to 
7.15 	accommodate enrollment fluctuations.
7.16 	It is intended that during the biennium the 
7.17 	Mayo Clinic use the capitation money to 
7.18 	increase the number of doctors practicing in 
7.19 	rural areas in need of doctors.

7.20
7.21	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
7.22 	The state of Minnesota must pay stipend 
7.23 	support for up to 27 residents each year.

7.24 	ARTICLE 2
7.25 	RELATED HIGHER EDUCATION PROVISIONS

7.26 	Section 1. Minnesota Statutes 2010, section 136A.101, subdivision 8, is amended to 
7.27 	read:
7.28 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
7.29 	the following conditions:
7.30 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
7.31 	education for at least 12 months without being enrolled at a postsecondary educational 
7.32 	institution for more than five credits in any term;
8.1 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
8.2 	time the student applies;
8.3 	(3) a student who graduated from a Minnesota high school, if the student was a 
8.4 	resident of Minnesota during the student's period of attendance at the Minnesota high 
8.5 	school and the student is physically attending a Minnesota postsecondary educational 
8.6 	institution;
8.7 	(4) a student who, after residing in the state for a minimum of one year, earned a 
8.8 	high school equivalency certificate in Minnesota;
8.9 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
8.10 	States stationed in Minnesota on active federal military service as defined in section 
8.11 	190.05, subdivision 5c;
8.12 	(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran 
8.13 	is a Minnesota resident;
8.14 	(7) a person or spouse of a person who relocated to Minnesota from an area that 
8.15 	is declared a presidential disaster area within the preceding 12 months if the disaster 
8.16 	interrupted the person's postsecondary education; or
8.17 	(8) a person defined as a refugee under United States Code, title 8, section 
8.18 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
8.19 	continued to reside in Minnesota.; or
8.20 	(9) with the exception of persons meeting the criteria in clause (3) or (4), a resident 
8.21 	student who leaves Minnesota for more than one year for reasons other than postsecondary 
8.22 	education or military service shall no longer be considered a resident student until the 
8.23 	student subsequently meets one of the criteria in this subdivision. A person who leaves 
8.24 	Minnesota for purposes other than military service or postsecondary education is not a 
8.25 	resident student if the student enrolls exclusively in distance education courses.

8.26 	Sec. 2. Minnesota Statutes 2010, section 136A.1787, is amended to read:
8.27 	136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF 
8.28 	NEED.
8.29 	(a) In order to ensure the payment of the principal of and interest on bonds and 
8.30 	notes of the office and the continued maintenance of the loan capital fund under section 
8.31 	136A.1785, the office shall annually determine and certify to the governor, on or before 
8.32 	December 1, the amount, if any:
8.33 	(1) needed to restore the loan capital fund to the minimum amount required by a 
8.34 	resolution or indenture relating to any bonds or notes of the office, not exceeding the 
9.1 	maximum amount of principal and interest to become due and payable in any subsequent 
9.2 	year on all bonds or notes which are then outstanding;
9.3 	(2) determined by the office to be needed in the immediately ensuing following
9.4 	fiscal year, with other funds pledged and estimated to be received during that year, for 
9.5 	the payment of the principal and interest due and payable in that year on all outstanding 
9.6 	bonds and notes; and
9.7 	(3) needed to restore any debt service reserve fund securing any outstanding bonds 
9.8 	or notes of the office to the amount required in a resolution or indenture relating to such 
9.9 	outstanding bonds or notes.
9.10 	(b) If the office determines the need under paragraph (a), clause (2) or (3), to be for 
9.11 	the immediately following fiscal year, the governor shall include and submit the amounts 
9.12 	certified by the office in accordance with this section to the legislature in the governor's 
9.13 	budget for the immediately following fiscal year, or. If the office determines the need 
9.14 	under paragraph (a), clause (2) or (3), to be for the current fiscal year, the governor shall 
9.15 	include and submit the amounts certified  in a governor's supplemental budget if the regular 
9.16 	budget for that year has previously been approved enacted.

9.17 	Sec. 3. Minnesota Statutes 2010, section 136A.87, is amended to read:
9.18 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
9.19 	EDUCATION.
9.20 	The office shall make available to all residents beginning in 7th grade through 
9.21 	adulthood information about planning and preparing for postsecondary opportunities. 
9.22 	Information must be provided to all 7th grade students and their parents annually 
9.23 	by September 30 about planning for their postsecondary education. The office may 
9.24 	also provide information to high school students and their parents, to adults, and to 
9.25 	out-of-school youth. The information provided may include the following:
9.26 	(1) the need to start planning early;
9.27 	(2) the availability of assistance in educational planning from educational institutions 
9.28 	and other organizations;
9.29 	(3) suggestions for studying effectively during high school;
9.30 	(4) high school courses necessary to be adequately prepared for postsecondary 
9.31 	education;
9.32 	(5) encouragement to involve parents actively in planning for all phases of education;
9.33 	(6) information about postsecondary education and training opportunities existing 
9.34 	in the state, their respective missions and expectations for students, their preparation 
9.35 	requirements, admission requirements, and student placement;
10.1 	(7) ways to evaluate and select postsecondary institutions;
10.2 	(8) the process of transferring credits among Minnesota postsecondary institutions 
10.3 	and systems;
10.4 	(9) the costs of postsecondary education and the availability of financial assistance 
10.5 	in meeting these costs, including specific information about the Minnesota Promise and 
10.6 	achieve scholarship program;
10.7 	(10) the interrelationship of assistance from student financial aid, public assistance, 
10.8 	and job training programs; and
10.9 	(11) financial planning for postsecondary education.

10.10 	Sec. 4. Minnesota Statutes 2010, section 136G.01, is amended to read:
10.11 	136G.01 PLAN ESTABLISHED.
10.12 	A college savings plan known as the Minnesota college savings plan is established. 
10.13 	In establishing this plan, the legislature seeks to encourage individuals to save for 
10.14 	postsecondary education by:
10.15 	(1) providing a qualified tuition plan under federal tax law; and
10.16 	(2) providing matching grants for contributions to the program by low- and 
10.17 	middle-income families; and
10.18 	(3) (2) encouraging individuals, foundations, and businesses to provide additional 
10.19 	grants to participating students.

10.20 	Sec. 5. Minnesota Statutes 2010, section 136G.03, subdivision 1, is amended to read:
10.21 		Subdivision 1.General. For purposes of sections 136G.01 to 136G.13 136G.14, the 
10.22 	following terms have the meanings given.

10.23 	Sec. 6. Minnesota Statutes 2010, section 136G.03, subdivision 18, is amended to read:
10.24 		Subd. 18.Matching grant. "Matching grant" means an amount added to a matching 
10.25 	grant account under section 136G.11 for eligible account beneficiaries for account 
10.26 	contributions in calendar years 2001 to 2010.

10.27 	Sec. 7. Minnesota Statutes 2010, section 136G.03, subdivision 27, is amended to read:
10.28 		Subd. 27.Plan. "Plan" refers to the plan established under sections 136G.01 to 
10.29 	136G.13 136G.14.

10.30 	Sec. 8. Minnesota Statutes 2010, section 136G.05, subdivision 1, is amended to read:
11.1 		Subdivision 1.Responsibilities. (a) The director shall establish the rules, terms, 
11.2 	and conditions for the plan, subject to the requirements of sections 136G.01 to 136G.13
11.3 	136G.14.
11.4 	(b) The director shall prescribe the application forms, procedures, and other 
11.5 	requirements that apply to the plan.

11.6 	Sec. 9. Minnesota Statutes 2010, section 136G.05, subdivision 6, is amended to read:
11.7 		Subd. 6.Three-year period for withdrawal of grants. A matching grant deposited 
11.8 	in the a matching grant account based on account owner contributions during calendar 
11.9 	years 2001 to 2010 under section 136G.11 may not be withdrawn within three years of the 
11.10 	establishment of the account of the beneficiary. In calculating the three-year period, the 
11.11 	period held in another account is included, if the account includes a rollover from another 
11.12 	account under section 529(c)(3)(C) of the Internal Revenue Code.

11.13 	Sec. 10. Minnesota Statutes 2010, section 136G.05, subdivision 8, is amended to read:
11.14 		Subd. 8.Administration. The director shall administer the program, including 
11.15 	accepting and processing applications, maintaining account records, making payments, 
11.16 	making matching grants under section 136G.11, and undertaking any other necessary 
11.17 	tasks to administer the program. The office may contract with one or more third parties to 
11.18 	carry out some or all of these administrative duties, including providing incentives and 
11.19 	marketing the program. The office and the board may jointly contract with third-party 
11.20 	providers, if the office and board determine that it is desirable to contract with the same 
11.21 	entity or entities for administration and investment management.

11.22 	Sec. 11. Minnesota Statutes 2010, section 299A.45, subdivision 1, is amended to read:
11.23 		Subdivision 1.Eligibility. A person is eligible to receive educational benefits under 
11.24 	this section if the person:
11.25 	(1) is certified under section 299A.44 and in compliance with this section and rules 
11.26 	of the commissioner of public safety and the Minnesota Office of Higher Education;
11.27 	(2) is enrolled in an undergraduate degree or certificate program after June 30, 1990, 
11.28 	at an eligible Minnesota institution as provided in section 136A.101, subdivision 4;
11.29 	(3) has not received a baccalaureate degree or been enrolled full time for nine ten
11.30 	semesters or the equivalent, except that a student who withdraws from enrollment for 
11.31 	active military service is entitled to an additional semester or the equivalent of eligibility; 
11.32 	and
12.1 	(4) is related in one of the following ways to a public safety officer killed in the 
12.2 	line of duty on or after January 1, 1973:
12.3 	(i) as a dependent child less than 23 years of age;
12.4 	(ii) as a surviving spouse; or
12.5 	(iii) as a dependent child less than 30 years of age who has served on active military 
12.6 	duty 181 consecutive days or more and has been honorably discharged or released to the 
12.7 	dependent child's reserve or National Guard unit.

12.8 	Sec. 12.  REPEALER.
 12.9 	(a) Minnesota Statutes 2010, section 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 
12.10 	10, 10a, 11, and 14, are repealed effective July 1, 2011.
12.11 	(b) Minnesota Statutes 2010, section 136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 
12.12 	and 10, are repealed effective July 2, 2012.
12.13 	(c) Laws 2009, chapter 95, article 2, section 39, is repealed effective July 1, 2011.

12.14 	Sec. 13. EFFECTIVE DATE.
 12.15 	Sections 3 to 10 are effective July 1, 2012.