1.1                          A bill for an act 
  1.2             relating to health; distributing funds for medical 
  1.3             education; amending Minnesota Statutes 2000, section 
  1.4             62J.692, subdivision 4; Minnesota Statutes 2001 
  1.5             Supplement, section 62J.694, subdivision 2a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 62J.692, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
  1.10  shall annually distribute medical education funds to all 
  1.11  qualifying applicants based on the following criteria:  
  1.12     (1) total medical education funds available for 
  1.13  distribution; 
  1.14     (2) total number of eligible trainee FTEs in each clinical 
  1.15  medical education program; and 
  1.16     (3) the statewide average cost per trainee as determined by 
  1.17  the application information provided in the first year of the 
  1.18  biennium, by type of trainee, in each clinical medical education 
  1.19  program.  
  1.20     (b) Funds distributed shall not be used to displace current 
  1.21  funding appropriations from federal or state sources.  
  1.22     (c) Funds shall be distributed to the sponsoring 
  1.23  institutions indicating the amount to be distributed to each of 
  1.24  the sponsor's clinical medical education programs based on the 
  1.25  criteria in this subdivision and in accordance with the 
  2.1   commissioner's approval letter.  Each clinical medical education 
  2.2   program must distribute funds to the training sites as specified 
  2.3   in the commissioner's approval letter.  Sponsoring institutions, 
  2.4   which are accredited through an organization recognized by the 
  2.5   department of education or the health care financing 
  2.6   administration, may contract directly with training sites to 
  2.7   provide clinical training.  To ensure the quality of clinical 
  2.8   training, those accredited sponsoring institutions must: 
  2.9      (1) develop contracts specifying the terms, expectations, 
  2.10  and outcomes of the clinical training conducted at sites; and 
  2.11     (2) take necessary action if the contract requirements are 
  2.12  not met.  Action may include the withholding of payments under 
  2.13  this section or the removal of students from the site.  
  2.14     (d) Any funds not distributed in accordance with the 
  2.15  commissioner's approval letter must be returned to the medical 
  2.16  education and research fund within 30 days of receiving notice 
  2.17  from the commissioner.  The commissioner shall distribute 
  2.18  returned funds to the appropriate training sites in accordance 
  2.19  with the commissioner's approval letter.  
  2.20     (e) An amount equal to the funds transferred to the 
  2.21  commissioner under section 62J.694, subdivision 2a, paragraph 
  2.22  (b), shall be distributed by the commissioner to the University 
  2.23  of Minnesota board of regents to be used for the costs of the 
  2.24  academic health center as specified under section 62J.694, 
  2.25  subdivision 2a, paragraph (a). 
  2.26     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  2.27  62J.694, subdivision 2a, is amended to read: 
  2.28     Subd. 2a.  [EXPENDITURE; ACADEMIC HEALTH CENTER ACCOUNT.] 
  2.29  (a) Beginning in January 2002, up to five percent of the fair 
  2.30  market value of the academic health center account is annually 
  2.31  appropriated to the board of regents for the costs of the 
  2.32  academic health center.  Appropriations are to be transferred 
  2.33  quarterly and may only be used for instructional costs of health 
  2.34  professional programs at the academic health center and for 
  2.35  interdisciplinary academic initiatives within the academic 
  2.36  health center, except as specified in paragraph (b). 
  3.1      (b) Of the amount appropriated under paragraph (a), 
  3.2   $4,850,000 shall be transferred annually to the commissioner of 
  3.3   health for distribution under section 62J.692.