1.1.................... moves to amend S. F. No. 2415, the third engrossment, as amended, as
1.3Page 40, after line 13, insert:

1.4    "Sec. 24. [137.026] ADMINISTRATIVE COSTS.
1.5(a) The Board of Regents of the University of Minnesota is requested to maintain
1.6administrative costs at or below 15 percent of the university's total expenditures for its fiscal
1.7year. If the university's administrative costs exceed 15 percent of total expenditures, the
1.8board must remit to the state treasury an amount equal to the excess by the end of the
1.9university's fiscal year.
1.10(b) Administrative costs are expenditures not associated with direct mission delivery or
1.11student aid. Administrative costs must include personnel and nonpersonnel expenses in the
1.12university's leadership and oversight and in mission support and facilities, but must exclude
1.13the following items:
1.14(1) student workers;
1.15(2) campus operations;
1.16(3) repair and maintenance;
1.17(4) utilities;
1.18(5) rents or leases; and
1.19(6) debt and capital project transfers.
1.20(c) The accounting methods for calculating administrative costs under this section must
1.21conform with the accounting methods used in reporting administrative costs under section
1.22135A.031, subdivision 7, paragraph (a), clause (11), item (vii).
2.1(d) Within 90 days of the end of the university's fiscal year, the board is requested to
2.2report data on its administrative costs to the legislature. The report must include the ratio
2.3of administrative costs to the university's total expenditures and explain any amounts remitted
2.4to the state treasury under paragraph (a). The report must explain any change in accounting
2.5methods from the previous year's report. The report must be filed in accordance with section
2.63.195, with copies provided to the chairs and ranking minority members of the committees
2.7in the house of representatives and the senate with jurisdiction over higher education finance
2.8and policy."
2.9Renumber the sections in sequence and correct the internal references
2.10Amend the title accordingly