Bill Text: MN HF1240 | 2011-2012 | 87th Legislature | Introduced


Bill Title: Postsecondary education provisions amended, definitions modified, SELF loan revenue bond provisions modified, safety officer survivor education benefit eligibility requirements changed, Minnesota college savings plan matching grant phased out, achieve scholarship program ended, and money appropriated.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-03-21 - Introduction and first reading, referred to Rules and Legislative Administration [HF1240 Detail]

Download: Minnesota-2011-HF1240-Introduced.html

1.1A bill for an act
1.2relating to higher education; amending postsecondary education provisions;
1.3modifying definitions; modifying SELF loan revenue bonds provisions; making
1.4changes to eligibility requirements for safety officer's survivor education
1.5benefits; phasing out Minnesota college savings plan matching grants; making
1.6technical changes; ending the achieve scholarship program; appropriating
1.7money;amending Minnesota Statutes 2010, sections 136A.101, subdivision
1.88; 136A.1787; 136A.87; 136G.01; 136G.03, subdivisions 1, 18, 27; 136G.05,
1.9subdivisions 1, 6, 8; 299A.45, subdivision 1; repealing Minnesota Statutes
1.102010, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 10, 10a, 11, 14;
1.11136G.11, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; Laws 2009, chapter 95, article
1.122, section 39.
1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14ARTICLE 1
1.15HIGHER EDUCATION APPROPRIATIONS

1.16
Section 1. SUMMARY OF APPROPRIATIONS.
1.17    Subdivision 1. Summary By Fund. The amounts shown in this subdivision
1.18summarize 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
1.25summarize 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
2.9
2.10
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
2.14agencies and for the purposes specified in this article. The appropriations are from the
2.15general fund, or another named fund, and are available for the fiscal years indicated
2.16for each purpose. The figures "2012" and "2013" used in this article mean that the
2.17appropriations listed under them are available for the fiscal year ending June 30, 2012, or
2.18June 30, 2013, respectively. "The first year" is fiscal year 2012. "The second year" is fiscal
2.19year 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
2.27The amounts that may be spent for each
2.28purpose are specified in the following
2.29subdivisions.
2.30
Subd. 2.State Grants
144,238,000
144,238,000
2.31If the appropriation in this subdivision for
2.32either year is insufficient, the appropriation
2.33for the other year is available for it.
2.34For the biennium, the tuition maximum
2.35is $10,488 in each year for students in
2.36four-year programs, and $5,808 for students
2.37in two-year programs.
3.1This appropriation sets the living and
3.2miscellaneous expense allowance at $7,000
3.3each year.
3.4This appropriation includes the amount
3.5needed for the safety officer's survivor grant
3.6program under Minnesota Statutes, section
3.7299A.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
3.11The director must contract with at least one
3.12person with demonstrated competence in
3.13American Indian culture and residing in or
3.14near the city of Bemidji to assist students
3.15with the scholarships under Minnesota
3.16Statutes, section 136A.126, and with other
3.17information about financial aid for which
3.18the students may be eligible. Bemidji State
3.19University must provide office space at
3.20no cost to the Minnesota Office of Higher
3.21Education for purposes of administering the
3.22American Indian scholarship program under
3.23Minnesota Statutes, section 136A.126.
3.24
3.25
Subd. 6.Intervention for College Attendance
Program Grants
746,000
746,000
3.26For the intervention for college attendance
3.27program under Minnesota Statutes, section
3.28136A.861.
3.29Grants shall be awarded for one year and
3.30may be renewed with documentation to the
3.31Office 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
4.1If the appropriation in this subdivision for
4.2either year is insufficient, the appropriation
4.3for the other year is available to meet
4.4reciprocity contract obligations.
4.5
Subd. 9.Minnesota College Savings Plan
350,000
-0-
4.6This appropriation is for matching grants
4.7under Minnesota Statutes, section 136G.11,
4.8in 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
4.13A balance in the first year under this section
4.14does not cancel, but is available for the
4.15second year.
4.16
Subd. 14.Transfers
4.17The Minnesota Office of Higher Education
4.18may transfer unencumbered balances from
4.19the appropriations in this section to the state
4.20grant appropriation, the interstate tuition
4.21reciprocity appropriation, the child care
4.22grant appropriation, the Indian scholarship
4.23appropriation, the state work-study
4.24appropriation, and the get ready program. A
4.25transfer may be made only with prior written
4.26notice to the chairs of the senate and house of
4.27representatives committees with jurisdiction
4.28over 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
5.1The amounts that may be spent for each
5.2purpose are specified in the following
5.3subdivisions.
5.4
5.5
Subd. 2.Central Office and Shared Services
Unit
44,249,000
44,249,000
5.6For the Office of the Chancellor and the
5.7Shared 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
5.17The amounts that may be spent for each
5.18purpose are specified in the following
5.19subdivisions.
5.20
Subd. 2.Operations and Maintenance
543,668,000
543,668,000
5.21This appropriation includes funding for
5.22operation and maintenance of the system.
5.23
Subd. 3.Primary Care Education Initiatives
2,157,000
2,157,000
5.24This appropriation is from the health care
5.25access fund.
5.26
Subd. 4.Special Appropriations
5.27
(a) Agriculture and Extension Service
42,873,000
42,873,000
5.28For the Agricultural Experiment Station and
5.29the 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
5.32resident physicians in the St. Cloud Hospital
6.1family practice residency program. The
6.2program must prepare doctors to practice
6.3primary care medicine in the rural areas of
6.4the state. The legislature intends this program
6.5to improve health care in rural communities,
6.6provide affordable access to appropriate
6.7medical care, and manage the treatment of
6.8patients in a more cost-effective manner.
6.9The remainder of this appropriation is for
6.10the rural physicians associates program, the
6.11Veterinary Diagnostic Laboratory, health
6.12sciences research, dental care, and the
6.13Biomedical Engineering Center.
6.14
(c) Institute of Technology
1,138,000
1,138,000
6.15For the Geological Survey and the talented
6.16youth mathematics program.
6.17
(d) System Special
5,051,000
5,051,000
6.18For general research, industrial relations
6.19education, Natural Resources Research
6.20Institute, Center for Urban and Regional
6.21Affairs, Bell Museum of Natural History, and
6.22the Humphrey exhibit.
6.23
6.24
(e) University of Minnesota and Mayo
Foundation Partnership
6,563,000
6,563,000
6.25For the direct and indirect expenses of the
6.26collaborative research partnership between
6.27the University of Minnesota and the Mayo
6.28Foundation for research in biotechnology
6.29and medical genomics. An annual report
6.30on the expenditure of these funds must be
6.31submitted to the governor and the chairs
6.32of the senate and house of representatives
6.33committees responsible for higher education
6.34and economic development by June 30 of
6.35each fiscal year.
7.1
Subd. 5.Academic Health Center
7.2The appropriation for Academic Health
7.3Center funding under Minnesota Statutes,
7.4section 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
7.7The amounts that may be spent for the
7.8purposes are specified in the following
7.9subdivisions.
7.10
Subd. 2.Medical School
665,000
665,000
7.11The state of Minnesota must pay a capitation
7.12each year for each student who is a resident
7.13of Minnesota. The appropriation may be
7.14transferred between years of the biennium to
7.15accommodate enrollment fluctuations.
7.16It is intended that during the biennium the
7.17Mayo Clinic use the capitation money to
7.18increase the number of doctors practicing in
7.19rural areas in need of doctors.
7.20
7.21
Subd. 3.Family Practice and Graduate
Residency Program
686,000
686,000
7.22The state of Minnesota must pay stipend
7.23support for up to 27 residents each year.

7.24ARTICLE 2
7.25RELATED HIGHER EDUCATION PROVISIONS

7.26    Section 1. Minnesota Statutes 2010, section 136A.101, subdivision 8, is amended to
7.27read:
7.28    Subd. 8. Resident student. "Resident student" means a student who meets one of
7.29the following conditions:
7.30    (1) a student who has resided in Minnesota for purposes other than postsecondary
7.31education for at least 12 months without being enrolled at a postsecondary educational
7.32institution for more than five credits in any term;
8.1    (2) a dependent student whose parent or legal guardian resides in Minnesota at the
8.2time the student applies;
8.3    (3) a student who graduated from a Minnesota high school, if the student was a
8.4resident of Minnesota during the student's period of attendance at the Minnesota high
8.5school and the student is physically attending a Minnesota postsecondary educational
8.6institution;
8.7    (4) a student who, after residing in the state for a minimum of one year, earned a
8.8high school equivalency certificate in Minnesota;
8.9    (5) a member, spouse, or dependent of a member of the armed forces of the United
8.10States stationed in Minnesota on active federal military service as defined in section
8.11190.05 , subdivision 5c;
8.12    (6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
8.13is a Minnesota resident;
8.14    (7) a person or spouse of a person who relocated to Minnesota from an area that
8.15is declared a presidential disaster area within the preceding 12 months if the disaster
8.16interrupted the person's postsecondary education; or
8.17    (8) a person defined as a refugee under United States Code, title 8, section
8.181101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
8.19continued to reside in Minnesota.; or
8.20(9) with the exception of persons meeting the criteria in clause (3) or (4), a resident
8.21student who leaves Minnesota for more than one year for reasons other than postsecondary
8.22education or military service shall no longer be considered a resident student until the
8.23student subsequently meets one of the criteria in this subdivision. A person who leaves
8.24Minnesota for purposes other than military service or postsecondary education is not a
8.25resident student if the student enrolls exclusively in distance education courses.

8.26    Sec. 2. Minnesota Statutes 2010, section 136A.1787, is amended to read:
8.27136A.1787 SELF LOAN REVENUE BONDS ANNUAL CERTIFICATE OF
8.28NEED.
8.29(a) In order to ensure the payment of the principal of and interest on bonds and
8.30notes of the office and the continued maintenance of the loan capital fund under section
8.31136A.1785 , the office shall annually determine and certify to the governor, on or before
8.32December 1, the amount, if any:
8.33(1) needed to restore the loan capital fund to the minimum amount required by a
8.34resolution or indenture relating to any bonds or notes of the office, not exceeding the
9.1maximum amount of principal and interest to become due and payable in any subsequent
9.2year on all bonds or notes which are then outstanding;
9.3(2) determined by the office to be needed in the immediately ensuing following
9.4fiscal year, with other funds pledged and estimated to be received during that year, for
9.5the payment of the principal and interest due and payable in that year on all outstanding
9.6bonds and notes; and
9.7(3) needed to restore any debt service reserve fund securing any outstanding bonds
9.8or notes of the office to the amount required in a resolution or indenture relating to such
9.9outstanding bonds or notes.
9.10(b) If the office determines the need under paragraph (a), clause (2) or (3), to be for
9.11the immediately following fiscal year, the governor shall include and submit the amounts
9.12certified by the office in accordance with this section to the legislature in the governor's
9.13budget for the immediately following fiscal year, or. If the office determines the need
9.14under paragraph (a), clause (2) or (3), to be for the current fiscal year, the governor shall
9.15include and submit the amounts certified in a governor's supplemental budget if the regular
9.16budget for that year has previously been approved enacted.

9.17    Sec. 3. Minnesota Statutes 2010, section 136A.87, is amended to read:
9.18136A.87 PLANNING INFORMATION FOR POSTSECONDARY
9.19EDUCATION.
9.20The office shall make available to all residents beginning in 7th grade through
9.21adulthood information about planning and preparing for postsecondary opportunities.
9.22Information must be provided to all 7th grade students and their parents annually
9.23by September 30 about planning for their postsecondary education. The office may
9.24also provide information to high school students and their parents, to adults, and to
9.25out-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
9.28and 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
9.31education;
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
9.34in the state, their respective missions and expectations for students, their preparation
9.35requirements, 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
10.3and systems;
10.4(9) the costs of postsecondary education and the availability of financial assistance
10.5in meeting these costs, including specific information about the Minnesota Promise and
10.6achieve scholarship program;
10.7(10) the interrelationship of assistance from student financial aid, public assistance,
10.8and 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:
10.11136G.01 PLAN ESTABLISHED.
10.12A college savings plan known as the Minnesota college savings plan is established.
10.13In establishing this plan, the legislature seeks to encourage individuals to save for
10.14postsecondary 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
10.17middle-income families; and
10.18(3) (2) encouraging individuals, foundations, and businesses to provide additional
10.19grants 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
10.22following 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
10.25grant account under section 136G.11 for eligible account beneficiaries for account
10.26contributions 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
10.29136G.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,
11.2and conditions for the plan, subject to the requirements of sections 136G.01 to 136G.13
11.3136G.14
.
11.4(b) The director shall prescribe the application forms, procedures, and other
11.5requirements 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
11.8in the a matching grant account based on account owner contributions during calendar
11.9years 2001 to 2010 under section 136G.11 may not be withdrawn within three years of the
11.10establishment of the account of the beneficiary. In calculating the three-year period, the
11.11period held in another account is included, if the account includes a rollover from another
11.12account 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
11.15accepting and processing applications, maintaining account records, making payments,
11.16making matching grants under section 136G.11, and undertaking any other necessary
11.17tasks to administer the program. The office may contract with one or more third parties to
11.18carry out some or all of these administrative duties, including providing incentives and
11.19marketing the program. The office and the board may jointly contract with third-party
11.20providers, if the office and board determine that it is desirable to contract with the same
11.21entity 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
11.24this section if the person:
11.25    (1) is certified under section 299A.44 and in compliance with this section and rules
11.26of 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,
11.28at 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
11.30semesters or the equivalent, except that a student who withdraws from enrollment for
11.31active military service is entitled to an additional semester or the equivalent of eligibility;
11.32and
12.1    (4) is related in one of the following ways to a public safety officer killed in the
12.2line 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
12.6duty 181 consecutive days or more and has been honorably discharged or released to the
12.7dependent 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,
12.1010, 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,
12.12and 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.
12.15Sections 3 to 10 are effective July 1, 2012.
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