1.1 	A bill for an act
1.2 	relating to education; postsecondary; establishing a budget for higher education; 
1.3 	appropriating money to the Office of Higher Education, the Board of Trustees 
1.4 	of the Minnesota State Colleges and Universities, the Board of Regents of 
1.5 	the University of Minnesota, and the Mayo Clinic; modifying the state grant 
1.6 	deduction; making changes to the assigned family responsibility;amending 
1.7 	Minnesota Statutes 2014, sections 136A.101, subdivision 5a; 136A.121, 
1.8 	subdivision 5.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	ARTICLE 1
1.11 	HIGHER EDUCATION APPROPRIATIONS

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

1.15	SUMMARY BY FUND
	
1.16			2016
		2017
		Total
	
1.17	General
	$
	1,476,251,000
	$
	1,509,188,000
	$
	2,985,439,000
	
1.18	Health Care Access
		2,157,000
		2,157,000
		4,314,000
	
1.19	Total
	$
	1,478,408,000
	$
	1,511,345,000
	$
	2,989,753,000
	
1.20 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
1.21 	summarize direct appropriations, by agency, made in this article.

1.22	SUMMARY BY AGENCY - ALL FUNDS
	
1.23			2016
		2017
		Total
	
1.24
1.25	Minnesota Office of Higher 
Education
	$
	238,058,000
	$
	239,895,000
	$
	477,953,000
	
2.1
2.2
2.3	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		622,143,000
		622,143,000
		1,244,286,000
	
2.4
2.5	Board of Regents of the 
University of Minnesota
		616,856,000
		647,956,000
		1,264,812,000
	
2.6	Mayo Clinic
		1,351,000
		1,351,000
		2,702,000
	
2.7	Total
	$
	1,478,408,000
	$
	1,511,345,000
	$
	2,989,753,000

2.8	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.9 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.10 	agencies and for the purposes specified in this article. The appropriations are from the 
2.11 	general fund, or another named fund, and are available for the fiscal years indicated 
2.12 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.13 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.14 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.15 	year 2017. "The biennium" is fiscal years 2016 and 2017.

2.16				APPROPRIATIONS
	
2.17				Available for the Year
	
2.18				Ending June 30
	
2.19					2016
		2017

2.20
2.21	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.22	Subdivision 1.Total Appropriation
 	$
	238,058,000
	$
	239,895,000
	
2.23 	The amounts that may be spent for each 
2.24 	purpose are specified in the following 
2.25 	subdivisions.

2.26	Subd. 2.State Grants
 		189,281,000
		189,281,000
	
2.27 	(a) If the appropriation in this subdivision for 
2.28 	either year is insufficient, the appropriation 
2.29 	for the other year is available for it.
2.30 	(b) This appropriation sets the living and 
2.31 	miscellaneous expense allowance at $8,858 
2.32 	for fiscal year 2016 and $8,958 for fiscal year 
2.33 	2017.

2.34	Subd. 3.Child Care Grants
 		6,684,000
		6,684,000

2.35	Subd. 4.State Work-Study
 		14,502,000
		14,502,000

3.1	Subd. 5.Interstate Tuition Reciprocity
 		12,718,000
		14,518,000
	
3.2 	If the appropriation in this subdivision for 
3.3 	either year is insufficient, the appropriation 
3.4 	for the other year is available to meet 
3.5 	reciprocity contract obligations.

3.6	Subd. 6.Safety Officer's Survivors
 		100,000
		100,000
	
3.7 	This appropriation is to provide educational 
3.8 	benefits under Minnesota Statutes, section 
3.9 	299A.45, to eligible dependent children and 
3.10 	to the spouses of public safety officers killed 
3.11 	in the line of duty.
3.12 	If the appropriation in this subdivision for 
3.13 	either year is insufficient, the appropriation 
3.14 	for the other year is available for it.

3.15	Subd. 7.Indian Scholarships
 		3,100,000
		3,100,000
	
3.16 	The director must contract with or employ 
3.17 	at least one person with demonstrated 
3.18 	competence in American Indian culture and 
3.19 	residing in or near the city of Bemidji to 
3.20 	assist students with the scholarships under 
3.21 	Minnesota Statutes, section 136A.126, and 
3.22 	with other information about financial aid for 
3.23 	which the students may be eligible. Bemidji 
3.24 	State University must provide office space 
3.25 	at no cost to the Minnesota Office of Higher 
3.26 	Education for purposes of administering the 
3.27 	American Indian scholarship program under 
3.28 	Minnesota Statutes, section 136A.126. This 
3.29 	appropriation includes funding to administer 
3.30 	the American Indian scholarship program.

3.31	Subd. 8.Tribal College Grants
 		150,000
		150,000

3.32
3.33	Subd. 9.High School-to-College Developmental 
Transition Grants
 		100,000
		100,000
	
4.1 	For grants under Minnesota Statutes, section 
4.2 	136A.862, for the high school-to-college 
4.3 	developmental transition program grants.

4.4
4.5	Subd. 10.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
4.6 	For the intervention for college attendance 
4.7 	program under Minnesota Statutes, section 
4.8 	136A.861.
4.9 	This appropriation includes funding to 
4.10 	administer the intervention for college 
4.11 	attendance program grants.

4.12	Subd. 11.Student-Parent Information
 		122,000
		122,000

4.13	Subd. 12.Get Ready
 		180,000
		180,000

4.14	Subd. 13.Midwest Higher Education Compact
 		95,000
		95,000

4.15	Subd. 14.Minnesota Minority Partnership
 		45,000
		45,000

4.16
4.17	Subd. 15.United Family Medicine Residency 
Program
 		351,000
		351,000
	
4.18 	For a grant to United Family Medicine 
4.19 	residency program. This appropriation 
4.20 	shall be used to support up to 18 resident 
4.21 	physicians each year in family practice at 
4.22 	United Family Medicine residency programs 
4.23 	and shall prepare doctors to practice family 
4.24 	care medicine in underserved rural and 
4.25 	urban areas of the state. It is intended 
4.26 	that this program will improve health 
4.27 	care in underserved communities, provide 
4.28 	affordable access to appropriate medical 
4.29 	care, and manage the treatment of patients in 
4.30 	a cost-effective manner.

4.31	Subd. 16.MnLINK Gateway and Minitex
 		5,905,000
		5,905,000

4.32
4.33	Subd. 17.Statewide Longitudinal Education 
Data System
 		882,000
		882,000

4.34	Subd. 18.Hennepin County Medical Center
 		645,000
		645,000
	
5.1 	For transfer to Hennepin County Medical 
5.2 	Center for graduate family medical education 
5.3 	programs at Hennepin County Medical 
5.4 	Center.

5.5	Subd. 19.Agency Administration
 		2,527,000
		2,564,000

5.6	Subd. 20.Balances Forward
 					
5.7 	A balance in the first year under this section 
5.8 	does not cancel, but is available for the 
5.9 	second year.

5.10	Subd. 21.Transfers
 					
5.11 	The Minnesota Office of Higher Education 
5.12 	may transfer unencumbered balances from 
5.13 	the appropriations in this section to the state 
5.14 	grant appropriation, the interstate tuition 
5.15 	reciprocity appropriation, the child care 
5.16 	grant appropriation, the Indian scholarship 
5.17 	appropriation, the state work-study 
5.18 	appropriation, the get ready appropriation, 
5.19 	the intervention for college attendance 
5.20 	program appropriation, and the public safety 
5.21 	officers' survivors appropriation. Transfers 
5.22 	from the child care or state work-study 
5.23 	appropriations may only be made to the 
5.24 	extent there is a projected surplus in the 
5.25 	appropriation. A transfer may be made only 
5.26 	with prior written notice to the chairs and 
5.27 	ranking minority members of the senate 
5.28 	and house of representatives committees 
5.29 	and divisions with jurisdiction over higher 
5.30 	education finance.

5.31
5.32
5.33	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

5.34	Subdivision 1.Total Appropriation
 	$
	622,143,000
	$
	622,143,000
	
6.1 	The amounts that may be spent for each 
6.2 	purpose are specified in the following 
6.3 	subdivisions.

6.4
6.5	Subd. 2.Central Office and Shared Services 
Unit
 		33,074,000
		33,074,000
	
6.6 	For the Office of the Chancellor and the 
6.7 	Shared Services Division.

6.8	Subd. 3.Operations and Maintenance
 		584,954,000
		584,954,000

6.9	Subd. 4.Learning Network of Minnesota
 		4,115,000
		4,115,000

6.10
6.11	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

6.12	Subdivision 1.Total Appropriation
 	$
	616,856,000
	$
	647,956,000

6.13	Appropriations by Fund
	
6.14		2016
	2017
	
6.15	General
	614,699,000
	645,799,000
	
6.16	Health Care Access
	2,157,000
	2,157,000
	
6.17 	The amounts that may be spent for each 
6.18 	purpose are specified in the following 
6.19 	subdivisions.

6.20	Subd. 2.Operations and Maintenance
 		548,761,000
		579,861,000
	
6.21 	$5,000,000 in fiscal year 2016 and 
6.22 	$25,000,000 in fiscal year 2017 are for the 
6.23 	medical school to support clinical research 
6.24 	and to establish and hire medical discovery 
6.25 	teams. Up to $2,000,000 of this appropriation 
6.26 	may be used for nationally recognized rural 
6.27 	and urban physician training programs such 
6.28 	as the Rural Physician Associate Program, 
6.29 	the Metropolitan Physicians Associate 
6.30 	Program, and the Rural Medical Scholars 
6.31 	Program. The University of Minnesota 
6.32 	Medical School is requested to submit a 
6.33 	biennial report on the medical discovery 
6.34 	teams to the governor and the chairs and 
7.1 	ranking minority members of the legislative 
7.2 	committees with jurisdiction over higher 
7.3 	education that includes the following:
7.4 	(1) progress on metrics and benchmarks 
7.5 	adopted in the medical school's strategic plan;
7.6 	(2) total increases in medical school 
7.7 	philanthropy and National Institutes of 
7.8 	Health funding; and
7.9 	(3) status of funding from Fairview Health 
7.10 	Services to the medical school for academic 
7.11 	support and clinical research.

7.12	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
7.13 	This appropriation is from the health care 
7.14 	access fund.

7.15	Subd. 4.Special Appropriations

7.16	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
7.17 	For the Agricultural Experiment Station and 
7.18 	the Minnesota Extension Service:
7.19 	(1) the agricultural experiment stations 
7.20 	and Minnesota Extension Service must 
7.21 	convene agricultural advisory groups to 
7.22 	focus research, education, and extension 
7.23 	activities on producer needs and implement 
7.24 	an outreach strategy that more effectively 
7.25 	and rapidly transfers research results and best 
7.26 	practices to producers throughout the state;
7.27 	(2) this appropriation includes funding for 
7.28 	research and outreach on the production of 
7.29 	renewable energy from Minnesota biomass 
7.30 	resources, including agronomic crops, plant 
7.31 	and animal wastes, and native plants or trees. 
7.32 	The following areas should be prioritized and 
7.33 	carried out in consultation with Minnesota 
8.1 	producers, renewable energy, and bioenergy 
8.2 	organizations:
8.3 	(i) biofuel and other energy production from 
8.4 	perennial crops, small grains, row crops, 
8.5 	and forestry products in conjunction with 
8.6 	the Natural Resources Research Institute 
8.7 	(NRRI);
8.8 	(ii) alternative bioenergy crops and cropping 
8.9 	systems; and
8.10 	(iii) biofuel coproducts used for livestock 
8.11 	feed;
8.12 	(3) this appropriation includes funding 
8.13 	for the College of Food, Agricultural, and 
8.14 	Natural Resources Sciences to establish and 
8.15 	provide leadership for organic agronomic, 
8.16 	horticultural, livestock, and food systems 
8.17 	research, education, and outreach and for 
8.18 	the purchase of state-of-the-art laboratory, 
8.19 	planting, tilling, harvesting, and processing 
8.20 	equipment necessary for this project;
8.21 	(4) this appropriation includes funding 
8.22 	for research efforts that demonstrate a 
8.23 	renewed emphasis on the needs of the state's 
8.24 	agriculture community. The following 
8.25 	areas should be prioritized and carried 
8.26 	out in consultation with Minnesota farm 
8.27 	organizations:
8.28 	(i) vegetable crop research with priority for 
8.29 	extending the Minnesota vegetable growing 
8.30 	season;
8.31 	(ii) fertilizer and soil fertility research and 
8.32 	development;
9.1 	(iii) soil, groundwater, and surface water 
9.2 	conservation practices and contaminant 
9.3 	reduction research;
9.4 	(iv) discovering and developing plant 
9.5 	varieties that use nutrients more efficiently;
9.6 	(v) breeding and development of turf seed 
9.7 	and other biomass resources in all three 
9.8 	Minnesota biomes;
9.9 	(vi) development of new disease-resistant 
9.10 	and pest-resistant varieties of turf and 
9.11 	agronomic crops;
9.12 	(vii) utilizing plant and livestock cells to treat 
9.13 	and cure human diseases;
9.14 	(viii) the development of dairy coproducts;
9.15 	(ix) a rapid agricultural response fund for 
9.16 	current or emerging animal, plant, and insect 
9.17 	problems affecting production or food safety;
9.18 	(x) crop pest and animal disease research;
9.19 	(xi) developing animal agriculture that is 
9.20 	capable of sustainably feeding the world;
9.21 	(xii) consumer food safety education and 
9.22 	outreach;
9.23 	(xiii) programs to meet the research and 
9.24 	outreach needs of organic livestock and crop 
9.25 	farmers; and
9.26 	(xiv) alternative bioenergy crops and 
9.27 	cropping systems; and growing, harvesting, 
9.28 	and transporting biomass plant material; and
9.29 	(5) by February 1, 2017, the Board of Regents 
9.30 	must submit a report to the legislative 
9.31 	committees and divisions with responsibility 
9.32 	for agriculture and higher education finance 
10.1 	on the status and outcomes of research and 
10.2 	initiatives funded in this section.

10.3	(b) Health Sciences
		9,204,000
		9,204,000
	
10.4 	$346,000 each year is to support up to 12 
10.5 	resident physicians in the St. Cloud Hospital 
10.6 	family practice residency program. The 
10.7 	program must prepare doctors to practice 
10.8 	primary care medicine in rural areas of the 
10.9 	state. The legislature intends this program 
10.10 	to improve health care in rural communities, 
10.11 	provide affordable access to appropriate 
10.12 	medical care, and manage the treatment of 
10.13 	patients in a more cost-effective manner. 
10.14 	The remainder of this appropriation is for 
10.15 	the rural physicians associates program, the 
10.16 	Veterinary Diagnostic Laboratory, health 
10.17 	sciences research, dental care, and the 
10.18 	Biomedical Engineering Center.

10.19	(c) Institute of Technology
		1,140,000
		1,140,000
	
10.20 	For the geological survey and the talented 
10.21 	youth mathematics program.

10.22	(d) System Special
		5,181,000
		5,181,000
	
10.23 	For general research, the Labor Education 
10.24 	Service, Natural Resources Research 
10.25 	Institute, Center for Urban and Regional 
10.26 	Affairs, Bell Museum of Natural History, and 
10.27 	the Humphrey exhibit.
10.28 	Of this amount, $125,000 in fiscal year 2016 
10.29 	and $125,000 in fiscal year 2017 are added 
10.30 	to the base for the Labor Education Service.

10.31
10.32	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,491,000
		7,491,000
	
10.33 	For the direct and indirect expenses of the 
10.34 	collaborative research partnership between 
11.1 	the University of Minnesota and the Mayo 
11.2 	Foundation for research in biotechnology 
11.3 	and medical genomics. This appropriation is 
11.4 	available until expended. An annual report 
11.5 	on the expenditure of these funds must be 
11.6 	submitted to the governor and the chairs of 
11.7 	the legislative committee responsible for 
11.8 	higher education finance by June 30 of each 
11.9 	fiscal year.

11.10	Subd. 5.Academic Health Center
 					
11.11 	The appropriation for Academic Health 
11.12 	Center funding under Minnesota Statutes, 
11.13 	section 297F.10, is estimated to be 
11.14 	$22,250,000 each year.

11.15	Sec. 6. MAYO CLINIC

11.16	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
11.17 	The amounts that may be spent are specified 
11.18 	in the following subdivisions.

11.19	Subd. 2.Medical School
 		665,000
		665,000
	
11.20 	The state must pay a capitation each year for 
11.21 	each student who is a resident of Minnesota. 
11.22 	The appropriation may be transferred 
11.23 	between each year of the biennium to 
11.24 	accommodate enrollment fluctuations. It is 
11.25 	intended that during the biennium the Mayo 
11.26 	Clinic use the capitation money to increase 
11.27 	the number of doctors practicing in rural 
11.28 	areas in need of doctors.

11.29
11.30	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
11.31 	The state must pay stipend support for up to 
11.32 	27 residents each year.

12.1 	ARTICLE 2
12.2 	HIGHER EDUCATION POLICY

12.3 	Section 1. Minnesota Statutes 2014, section 136A.101, subdivision 5a, is amended to 
12.4 	read:
12.5 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
12.6 	the amount of a family's contribution to a student's cost of attendance, as determined by a 
12.7 	federal need analysis. For dependent students, the assigned family responsibility is 96 94
12.8 	percent of the parental contribution. For independent students with dependents other than 
12.9 	a spouse, the assigned family responsibility is 86 70 percent of the student contribution. 
12.10 	For independent students without dependents other than a spouse, the assigned family 
12.11 	responsibility is 50 34 percent of the student contribution.

12.12 	Sec. 2. Minnesota Statutes 2014, section 136A.121, subdivision 5, is amended to read:
12.13 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
12.14 	responsibility for covering the recognized cost of attendance by the applicant, the 
12.15 	applicant's family, and the government. The amount of a financial stipend must not 
12.16 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
12.17 	deducting the following:
12.18 	(1) the assigned student responsibility of at least 50 percent of the cost of attending 
12.19 	the institution of the applicant's choosing;
12.20 	(2) the assigned family responsibility as defined in section 136A.101; and
12.21 	(3) the amount of a federal Pell grant award for which the grant applicant is
12.22 	financially eligible, unless the student is ineligible to receive a Pell grant under United 
12.23 	States Code, title 20, section 1091(a)(5) or (d).
12.24 	The minimum financial stipend is $100 per academic year.