1.1.................... moves to amend H.F. No. 1692 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1

1.4HIGHER EDUCATION APPROPRIATIONS

1.5

Section 1. SUMMARY OF APPROPRIATIONS.

1.6 Subdivision 1. Summary By Fund. The amounts shown in this subdivision
1.7summarize direct appropriations, by fund, made in this article.

`1.8`	SUMMARY BY FUND
`1.9`			2014		2015		Total
`1.10`	General	$	1,336,854,000	$	1,378,282,000	$	2,715,136,000
`1.11`	Health Care Access		2,157,000		2,157,000		4,314,000
`1.12`	Total	$	1,339,011,000	$	1,380,439,000	$	2,719,450,000

1.13 Subd. 2. Summary By Agency - All Funds. The amounts shown in this subdivision
1.14summarize direct appropriations, by agency, made in this article.

`1.15`	SUMMARY BY AGENCY - ALL FUNDS
`1.16`			2014		2015		Total
`1.17` `1.18`	Minnesota Office of Higher Education	$	195,969,000	$	196,197,000	$	392,166,000
`1.19` `1.20` `1.21`	Board of Trustees of the Minnesota State Colleges and Universities		570,865,000		597,865,000		1,168,730,000
`1.22` `1.23`	Board of Regents of the University of Minnesota		570,826,000		585,026,000		1,155,852,000
`1.24`	Mayo Clinic		1,351,000		1,351,000		2,702,000
`1.25`	Total	$	1,339,011,000	$	1,380,439,000	$	2,719,450,000

1.26

Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.1 The sums shown in the columns marked "Appropriations" are appropriated to the
2.2agencies and for the purposes specified in this article. The appropriations are from the
2.3general fund, or another named fund, and are available for the fiscal years indicated
2.4for each purpose. The figures "2014" and "2015" used in this article mean that the
2.5appropriations listed under them are available for the fiscal year ending June 30, 2014, or
2.6June 30, 2015, respectively. "The first year" is fiscal year 2014. "The second year" is fiscal
2.7year 2015. "The biennium" is fiscal years 2014 and 2015.

`2.8`	APPROPRIATIONS
`2.9`	Available for the Year
`2.10`	Ending June 30
`2.11`		2014	2015

2.12
2.13

Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION

2.14

Subdivision 1.Total Appropriation

195,969,000

196,197,000

2.15The amounts that may be spent for each
2.16purpose are specified in the following
2.17subdivisions.

2.18

Subd. 2.State Grants

160,005,000

160,214,000

2.19If the appropriation in this subdivision for
2.20either year is insufficient, the appropriation
2.21for the other year is available for it.
2.22For the biennium, the tuition maximum is
2.23$10,488 in each year for students in four-year
2.24programs, and $5,808 in fiscal year 2014
2.25and $5,865 in fiscal year 2015 for students
2.26in two-year programs.
2.27This appropriation sets the living and
2.28miscellaneous expense allowance at $7,000
2.29each year.
2.30Notwithstanding section 136A.101,
2.31subdivision 5a, for the biennium ending June
2.3230, 2015, the assigned family responsibility
2.33for independent students without dependents
2.34other than a spouse is 53 percent of the
2.35student contribution, and the assigned family
3.1responsibility for independent students with
3.2dependents other than a spouse is 80 percent
3.3of the student contribution.

3.4

Subd. 3.Child Care Grants

6,684,000

3.5

Subd. 4.State Work-Study

14,502,000

3.6

Subd. 5.Interstate Tuition Reciprocity

3,250,000

3.7If the appropriation in this subdivision for
3.8either year is insufficient, the appropriation
3.9for the other year is available to meet
3.10reciprocity contract obligations.

3.11

Subd. 6.Safety Officer's Survivors

100,000

3.12This appropriation is to provide educational
3.13benefits under Minnesota Statutes, section
3.14299A.45, to eligible dependent children and
3.15to the spouses of public safety officers killed
3.16in the line of duty.
3.17If the appropriation in this subdivision for
3.18either year is insufficient, the appropriation
3.19for the other year is available for it.

3.20

Subd. 7.Indian Scholarships

1,850,000

3.21The director must contract with or employ
3.22at least one person with demonstrated
3.23competence in American Indian culture and
3.24residing in or near the city of Bemidji to
3.25assist students with the scholarships under
3.26Minnesota Statutes, section 136A.126, and
3.27with other information about financial aid for
3.28which the students may be eligible. Bemidji
3.29State University must provide office space
3.30at no cost to the Minnesota Office of Higher
3.31Education for purposes of administering the
3.32American Indian scholarship program under
3.33Minnesota Statutes, section 136A.126. This
4.1appropriation includes funding to administer
4.2the American Indian scholarship program.

4.3
4.4

Subd. 8.Intervention for College Attendance
Program Grants

671,000

4.5For the intervention for college attendance
4.6program under Minnesota Statutes, section
4.7136A.861.
4.8This appropriation includes funding to
4.9administer the intervention for college
4.10attendance program grants.

4.11

Subd. 9.Student-Parent Information

122,000

4.12

Subd. 10.Get Ready

180,000

4.13

Subd. 11.Midwest Higher Education Compact

95,000

4.14

Subd. 12.Minnesota Minority Partnership

45,000

4.15
4.16

Subd. 13.United Family Medicine Residency
Program

351,000

4.17

Subd. 14.MnLINK Gateway and Minitex

5,605,000

4.18

Subd. 15.Agency Administration

2,491,000

4.19

Subd. 16.Balances Forward

4.20A balance in the first year under this section
4.21does not cancel, but is available for the
4.22second year.

4.23
4.24
4.25

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

4.26

Subdivision 1.Total Appropriation

570,865,000

597,865,000

4.27The amounts that may be spent for each
4.28purpose are specified in the following
4.29subdivisions.

4.30
4.31

Subd. 2.Central Office and Shared Services
Unit

33,074,000

5.1For the Office of the Chancellor and the
5.2Shared Services Division.

5.3

Subd. 3.Operations and Maintenance

533,676,000

560,676,000

5.4This appropriation includes $25,500,000 in
5.5fiscal year 2014 and $52,500,000 in fiscal
5.6year 2015 for student tuition relief. The
5.7Board of Trustees may not set the tuition
5.8rate in any degree-granting program for the
5.92013-2014 and 2014-2015 academic years at
5.10a rate greater than the 2012-2013 academic
5.11year rate. The student tuition relief may not
5.12be offset by increases in mandatory fees,
5.13charges, or other assessments to the student
5.14that would result in an estimated cost of
5.15attendance directly attributable to the board,
5.16institution, or program in which the student
5.17is enrolled at an amount greater than that
5.18estimate for the 2012-2013 academic year.

5.19

Subd. 4.Learning Network of Minnesota

4,115,000

5.20
5.21

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

5.22

Subdivision 1.Total Appropriation

570,826,000

585,026,000

`5.23`	Appropriations by Fund
`5.24`		2014	2015
`5.25`	General	568,669,000	582,869,000
`5.26`	Health Care Access	2,157,000	2,157,000

5.27The amounts that may be spent for each
5.28purpose are specified in the following
5.29subdivisions.

5.30

Subd. 2.Operations and Maintenance

507,081,000

521,281,000

5.31This appropriation includes funding for
5.32operation and maintenance of the system.
6.1This appropriation includes $14,200,000 in
6.2fiscal year 2014 and $28,400,000 in fiscal
6.3year 2015 for tuition relief for resident
6.4undergraduate students. Notwithstanding
6.5section 137.025, subdivision 1, the
6.6commissioner of management and budget
6.7may not distribute any appropriation
6.8provided under this subdivision until
6.9the Board of Regents certifies to the
6.10commissioner that it has established resident
6.11tuition rates for courses in all baccalaureate
6.12programs at a rate no greater than the rate
6.13charged for the 2012-2013 academic year,
6.14and that the student tuition relief is not offset
6.15by increases in mandatory fees, charges, or
6.16other assessments to the student that would
6.17result in an estimated costs of attendance
6.18directly attributable to the board, institution,
6.19or program in which the student is enrolled
6.20at an amount greater than that estimate for
6.21the 2012-2013 academic year.
6.22The Board of Regents of the University
6.23of Minnesota must transfer $645,000 in
6.24fiscal year 2014 and $645,000 in fiscal year
6.252015 from the appropriations made to it for
6.26operations and maintenance to the Hennepin
6.27County Medical Center for graduate family
6.28medicine education programs at Hennepin
6.29County Medical Center.
6.30$9,000,000 in fiscal year 2014 and $9,000,000
6.31in fiscal year 2015 are for the Minnesota
6.32Discovery, Research, and InnoVation
6.33Economy (MnDRIVE) funding program.

6.34

Subd. 3.Primary Care Education Initiatives

2,157,000

7.1This appropriation is from the health care
7.2access fund.

7.3

Subd. 4.Special Appropriations

7.4

(a) Agriculture and Extension Service

42,922,000

7.5For the Agricultural Experiment Station and
7.6the Minnesota Extension Service:
7.7(1) the agricultural experiment stations
7.8and Minnesota Extension Service must
7.9convene agricultural advisory groups to
7.10focus research, education, and extension
7.11activities on producer needs and implement
7.12an outreach strategy that more effectively
7.13and rapidly transfers research results and best
7.14practices to producers throughout the state;
7.15(2) this appropriation includes funding for
7.16research and outreach on the production of
7.17renewable energy from Minnesota biomass
7.18resources, including agronomic crops, plant
7.19and animal wastes, and native plants or trees.
7.20The following areas should be prioritized and
7.21carried out in consultation with Minnesota
7.22producers, renewable energy, and bioenergy
7.23organizations:
7.24(i) biofuel and other energy production from
7.25perennial crops, small grains, row crops,
7.26and forestry products in conjunction with
7.27the Natural Resources Research Institute
7.28(NRRI);
7.29(ii) alternative bioenergy crops and cropping
7.30systems; and
7.31(iii) biofuel coproducts used for livestock
7.32feed;
8.1(3) this appropriation includes funding
8.2for the College of Food, Agricultural, and
8.3Natural Resources Sciences to establish and
8.4provide leadership for organic agronomic,
8.5horticultural, livestock, and food systems
8.6research, education, and outreach and for
8.7the purchase of state-of-the-art laboratory,
8.8planting, tilling, harvesting, and processing
8.9equipment necessary for this project;
8.10(4) this appropriation includes funding
8.11for research efforts that demonstrate a
8.12renewed emphasis on the needs of the state's
8.13agriculture community. The following
8.14areas should be prioritized and carried
8.15out in consultation with Minnesota farm
8.16organizations:
8.17(i) vegetable crop research with priority for
8.18extending the Minnesota vegetable growing
8.19season;
8.20(ii) fertilizer and soil fertility research and
8.21development;
8.22(iii) soil, groundwater, and surface water
8.23conservation practices and contaminant
8.24reduction research;
8.25(iv) discovering and developing plant
8.26varieties that use nutrients more efficiently;
8.27(v) breeding and development of turf seed
8.28and other biomass resources in all three
8.29Minnesota biomes;
8.30(vi) development of new disease-resistant
8.31and pest-resistant varieties of turf and
8.32agronomic crops;
8.33(vii) utilizing plant and livestock cells to treat
8.34and cure human diseases;
9.1(viii) the development of dairy coproducts;
9.2(ix) a rapid agricultural response fund for
9.3current or emerging animal, plant, and insect
9.4problems affecting production or food safety;
9.5(x) crop pest and animal disease research;
9.6(xi) developing animal agriculture that is
9.7capable of sustainably feeding the world;
9.8(xii) consumer food safety education and
9.9outreach;
9.10(xiii) programs to meet the research and
9.11outreach needs of organic livestock and crop
9.12farmers; and
9.13(xiv) alternative bioenergy crops and
9.14cropping systems; and growing, harvesting,
9.15and transporting biomass plant material; and
9.16(5) by February 1, 2015, the Board of
9.17Regents must submit a report to the
9.18legislative committees with responsibility
9.19for agriculture and higher education finance
9.20on the status and outcomes of research and
9.21initiatives funded in this section.

9.22

(b) Health Sciences

4,854,000

9.23$346,000 each year is to support up to 12
9.24resident physicians in the St. Cloud Hospital
9.25family practice residency program. The
9.26program must prepare doctors to practice
9.27primary care medicine in rural areas of the
9.28state. The legislature intends this program
9.29to improve health care in rural communities,
9.30provide affordable access to appropriate
9.31medical care, and manage the treatment of
9.32patients in a more cost-effective manner.
9.33The remainder of this appropriation is for
10.1the rural physicians associates program, the
10.2Veterinary Diagnostic Laboratory, health
10.3sciences research, dental care, and the
10.4Biomedical Engineering Center.

10.5

1,140,000

10.6For the Geological Survey and the talented
10.7youth mathematics program.

10.8

(d) System Special

5,181,000

10.9For general research, industrial relations
10.10education, Natural Resources Research
10.11Institute, Center for Urban and Regional
10.12Affairs, Bell Museum of Natural History, and
10.13the Humphrey exhibit.
10.14Of this amount, $125,000 in fiscal year 2014
10.15and $125,000 in fiscal year 2015 are for the
10.16Labor Education Service.

10.17
10.18

(e) University of Minnesota and Mayo
Foundation Partnership

7,491,000

10.19

Subd. 5.Academic Health Center

10.20The appropriation for Academic Health
10.21Center funding under Minnesota Statutes,
10.22section 297F.10, is estimated to be
10.23$22,250,000 each year.

10.24

Sec. 6. MAYO CLINIC

10.25

Subdivision 1.Total Appropriation

1,351,000

10.26The amounts that may be spent for the
10.27purposes are specified in the following
10.28subdivisions.

10.29

Subd. 2.Medical School

665,000

10.30
10.31

Subd. 3.Family Practice and Graduate
Residency Program

686,000

11.1ARTICLE 2

11.2HIGHER EDUCATION POLICY

11.3    Section 1. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:
11.4    Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor,
11.5a vice-chancellor, or a president, containing terms and conditions of employment. The
11.6terms of the contract must be authorized under a plan approved under section 43A.18,
11.7subdivision 3a .
11.8(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
11.9contract under this section may provide a liquidated salary amount or other compensation
11.10if a contract is terminated by the board prior to its expiration.
11.11(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
11.12this section may contain a deferred compensation plan made in conformance with section
11.13457(f) of the Internal Revenue Code.
11.14(d) Notwithstanding any provision of the plan approved under section 43A.18,
11.15subdivision 3a, a contract under this section must not authorize or otherwise provide for a
11.16discretionary or mandatory bonus payment.
11.17EFFECTIVE DATE.This section is effective the day following final enactment
11.18and applies to contracts entered into on or after that date.

11.19    Sec. 2. Minnesota Statutes 2012, section 137.027, is amended to read:
11.20137.027 APPROPRIATION; FRINGE BENEFITS.
11.21(a) Direct appropriations to the University of Minnesota include money to pay
11.22the employer's share of Social Security, state retirement, and health insurance. Money
11.23provided for these purposes shall be expended only for these purposes and any amounts in
11.24excess of the employer's share shall be returned to the state treasury.
11.25(b) Unless otherwise explicitly provided for in law, direct appropriations to the
11.26University of Minnesota do not include, and may not be used to pay, any mandatory or
11.27discretionary bonus payment provided for in an employment contract with the president
11.28or vice-presidents, chancellors, provosts, vice provosts, deans, or directors of individual
11.29programs.

11.30    Sec. 3. [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
11.31ECONOMY FUNDING PROGRAM.
12.1    Subdivision 1. Establishment. (a) The Minnesota Discovery, Research, and
12.2InnoVation Economy (MnDRIVE) funding program is established to discover new
12.3knowledge through scientific research that will:
12.4(1) advance the state's economy;
12.5(2) leverage opportunities and establish priorities in sectors of state strength and
12.6comparative advantage;
12.7(3) improve the health and wellbeing of Minnesota's citizens;
12.8(4) advance the capacity and competitiveness of existing and emerging food- and
12.9manufacturing-related science and technology industries; and
12.10(5) build a better Minnesota by driving progress and advancing the common good.
12.11(b) The MnDRIVE funding program shall establish priorities by investing in
12.12scientific research that promotes:
12.13(1) programs that can position Minnesota as a leader in engineering, science,
12.14technology, and food-related solutions;
12.15(2) initiatives that support the growth of targeted industry clusters and the
12.16competitiveness of existing Minnesota engineering, science, technology, and food
12.17companies in developing new products and services;
12.18(3) initiatives that can result in creating new Minnesota-based companies;
12.19(4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
12.20the incidence of disease, and transform how we prevent, treat, and cure diseases; and
12.21(5) initiatives that can secure a safer environment, seek sustainable energy solutions,
12.22and prevent, diagnose, and treat environmental problems associated with Minnesota
12.23industry.
12.24    Subd. 2. Funding requests. The Board of Regents of the University of Minnesota,
12.25acting alone or in partnership with other public or private entities, is requested to submit
12.26investment proposals consistent with the goals and objectives of the MnDRIVE funding
12.27program as part of the Board of Regents biennial budget request to the legislature. The
12.28Board of Regents must give consideration to investments in existing scientific research
12.29programs that meet these guidelines but may require additional resources in order to
12.30preserve or accelerate Minnesota into a national or global leadership position. The
12.31governor shall submit a recommendation to the legislature regarding funding requests
12.32submitted by the Board of Regents.
12.33    Subd. 3. Reporting. By March 1 of each odd-numbered year, the Board of Regents
12.34of the University of Minnesota must provide to the chairs and ranking minority members
12.35of the legislative committees with primary jurisdiction over higher education policy and
13.1finance a summary report of investments and accomplishments related to funds received
13.2from the state under subdivision 2 from the prior biennium.
13.3EFFECTIVE DATE.This section is effective the day following final enactment."
13.4Delete the title and insert:

13.5"A bill for an act

13.6relating to education; postsecondary; establishing a budget for higher education;
13.7appropriating money to the Office of Higher Education, the Board of Trustees
13.8of the Minnesota State Colleges and Universities, the Board of Regents of the
13.9University of Minnesota, and the Mayo Clinic; prohibiting tuition increases;
13.10regulating bonus payments; establishing the Minnesota Discovery, Research, and
13.11InnoVation Economy funding program;amending Minnesota Statutes 2012,
13.12sections 136F.40, subdivision 2; 137.027; proposing coding for new law in
13.13Minnesota Statutes, chapter 137."