1.1                          A bill for an act 
  1.2             relating to the University of Minnesota; requiring the 
  1.3             university to utilize a competitive grant process in 
  1.4             order to obtain state funding; amending Minnesota 
  1.5             Statutes 2002, sections 137.025, subdivision 1; 
  1.6             137.09; 137.34, subdivision 4; proposing coding for 
  1.7             new law in Minnesota Statutes, chapter 137. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [137.0105] [FUNDING; UNIVERSITY OF MINNESOTA.] 
  1.10     (a) The state of Minnesota, in place of the current 
  1.11  biennial appropriation and base funding system, shall meet its 
  1.12  commitment to the University of Minnesota hereon through an 
  1.13  annual competitive grant process.  This process shall be the new 
  1.14  state funding mechanism for the University of Minnesota and the 
  1.15  university must utilize the competitive grant process for 
  1.16  allocation of the state's financial resources. 
  1.17     (b) The university shall submit its grant requests to, on a 
  1.18  form and in a manner prescribed by, the house higher education 
  1.19  finance committee and senate higher education budget division.  
  1.20  The house and senate committees shall make to the legislature, 
  1.21  recommendations on grant awards for the university.  If awards 
  1.22  are authorized by the legislature, the commissioner of finance 
  1.23  shall make payment to the university pursuant to section 
  1.24  137.025.  Amounts allocated by the legislature for grants under 
  1.25  this section that are not awarded shall return to the general 
  1.26  fund. 
  2.1      Sec. 2.  Minnesota Statutes 2002, section 137.025, 
  2.2   subdivision 1, is amended to read: 
  2.3      Subdivision 1.  The commissioner of finance shall pay no 
  2.4   money to the University of Minnesota pursuant to a ~~direct~~ 
  2.5   ~~appropriation~~ grant award, other than an appropriation for 
  2.6   buildings, until the university first certifies to the 
  2.7   commissioner of finance that its aggregate balances in the 
  2.8   temporary investment pool, cash, or separate investments, 
  2.9   resulting from all state maintenance and special appropriations 
  2.10  do not exceed $7,000,000, or any other amount specified ~~in the~~ 
  2.11  ~~act making the appropriation~~ by legislative act, plus one-third 
  2.12  of all tuition and fee payments from the previous fiscal year.  
  2.13  Upon this certification, ~~1/12 of the annual appropriation~~ grants 
  2.14  shall be paid to the university ~~shall be paid at the~~ 
  2.15  ~~beginning~~ according to the terms of each ~~month~~ grant.  
  2.16  Additional payments shall be made by the commissioner of finance 
  2.17  whenever the state ~~appropriations~~ grants and tuition aggregate 
  2.18  balances in the temporary investment pool, cash, or separate 
  2.19  investments are reduced below the indicated levels. 
  2.20     Sec. 3.  Minnesota Statutes 2002, section 137.09, is 
  2.21  amended to read: 
  2.22     137.09 [BOARD OF REGENTS NOT TO EXCEED ~~APPROPRIATIONS~~ 
  2.23  AWARDS; PENALTY.] 
  2.24     It shall be unlawful for the board of regents to permit any 
  2.25  expenditures for any purpose in excess of the amount 
  2.26  ~~appropriated~~ awarded or contemplated by law and any member or 
  2.27  agent of the board violating this provision shall be guilty of a 
  2.28  gross misdemeanor; and, upon conviction, fined not less than 
  2.29  $100 nor more than $3,000, or be imprisoned in the county jail 
  2.30  for not less than six months, or by both fine and imprisonment.  
  2.31     Sec. 4.  Minnesota Statutes 2002, section 137.34, 
  2.32  subdivision 4, is amended to read: 
  2.33     Subd. 4.  [PROGRAM FUNDING.] Money for support of the rural 
  2.34  health and safety program in the Minnesota extension service may 
  2.35  be accepted from the following sources:  
  2.36     (1) ~~legislative appropriations from the general fund~~ grant 
  3.1   awards under section 137.0105; 
  3.2      (2) funds from other sources within the University of 
  3.3   Minnesota and the extension service to the extent not precluded 
  3.4   by other law; and 
  3.5      (3) gifts or grants from individuals, organizations, 
  3.6   governmental units, foundations, corporations, or other sources 
  3.7   except that no restrictions may be placed by the giver with 
  3.8   respect to the functions, duties, and responsibilities of the 
  3.9   program. 
  3.10     Sec. 5.  [EFFECTIVE DATE.] 
  3.11     This act is effective July 1, 2003.