1.1                          A bill for an act 
  1.2             relating to education; consolidating and restructuring 
  1.3             certain higher education statutes to reflect the 
  1.4             merger of the community colleges, state universities, 
  1.5             and technical colleges; amending Minnesota Statutes 
  1.6             1994, sections 15.38, subdivision 3; 136E.01, 
  1.7             subdivision 1; 136E.02, subdivisions 1 and 3; 
  1.8             136E.021, subdivision 2; 136E.03; 136E.04, 
  1.9             subdivisions 1, 3, and 7; 136E.05; 136E.31; 136E.525, 
  1.10            subdivisions 1 and 2; and 136E.692, subdivisions 1, 3, 
  1.11            and 4; proposing coding for new law as Minnesota 
  1.12            Statutes, chapter 136F; repealing Minnesota Statutes 
  1.13            1994, sections 15.38, subdivision 4; 136.01; 136.015; 
  1.14            136.017; 136.02; 136.03; 136.031; 136.036; 136.045; 
  1.15            136.065; 136.07; 136.09; 136.10; 136.11; 136.111; 
  1.16            136.12; 136.13; 136.14; 136.141; 136.142; 136.143; 
  1.17            136.144; 136.145; 136.146; 136.147; 136.17; 136.171; 
  1.18            136.172; 136.18; 136.19; 136.20; 136.21; 136.22; 
  1.19            136.232; 136.24; 136.25; 136.261; 136.27; 136.31; 
  1.20            136.311; 136.32; 136.33; 136.34; 136.35; 136.36; 
  1.21            136.37; 136.38; 136.40; 136.41; 136.42; 136.43; 
  1.22            136.44; 136.45; 136.46; 136.47; 136.48; 136.49; 
  1.23            136.50; 136.501; 136.502; 136.503; 136.504; 136.505; 
  1.24            136.506; 136.507; 136.55; 136.56; 136.57; 136.58; 
  1.25            136.60; 136.6011; 136.602; 136.603; 136.61; 136.62; 
  1.26            136.621; 136.622; 136.63; 136.65; 136.651; 136.653; 
  1.27            136.67; 136.70; 136.71; 136.72; 136.88; 136.90; 
  1.28            136C.01; 136C.02; 136C.03; 136C.04; 136C.041; 
  1.29            136C.042; 136C.043; 136C.044; 136C.05; 136C.06; 
  1.30            136C.07; 136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 
  1.31            136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 
  1.32            136C.50; 136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 
  1.33            136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 136C.69; 
  1.34            136C.70; 136C.71; 136C.75; 136E.04, subdivisions 2, 4, 
  1.35            5, and 6; and 136E.395; Laws 1994, chapter 532, 
  1.36            article 6, section 12, paragraph (a).  
  1.37  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.38                            DEFINITIONS 
  1.39     Section 1.  Minnesota Statutes 1994, section 15.38, 
  1.40  subdivision 3, is amended to read: 
  1.41     Subd. 3.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
  2.1   state university board of trustees of the Minnesota state 
  2.2   colleges and universities may purchase insurance coverage as it 
  2.3   deems necessary and appropriate to protect buildings and 
  2.4   contents and for activities ancillary to the programs of the 
  2.5   state colleges and universities. 
  2.6      Sec. 2.  [136F.01] [DEFINITIONS.] 
  2.7      Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
  2.8   the following terms have the meanings given them.  
  2.9      Subd. 2.  [BOARD OR BOARD OF TRUSTEES.] "Board" or "board 
  2.10  of trustees" means the board of trustees of the Minnesota state 
  2.11  colleges and universities.  
  2.12     Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
  2.13  of the Minnesota state colleges and universities.  
  2.14     Subd. 4.  [STATE COLLEGES AND UNIVERSITIES.] "State 
  2.15  colleges and universities" means Minnesota state colleges and 
  2.16  universities governed by the board of trustees.  
  2.17     Subd. 5.  [STUDENT ACTIVITIES.] "Student activities" means 
  2.18  lectures, concerts, and other functions contributing to the 
  2.19  mental, moral and cultural development of the student body and 
  2.20  community in which they live, athletic activities, including 
  2.21  intercollegiate contests, forensics, dramatics and such other 
  2.22  activities of any nature as in the opinion of the board 
  2.23  contribute to the educational, cultural, or physical well being 
  2.24  of the student body.  
  2.25                         BOARD OF TRUSTEES 
  2.26     Sec. 3.  Minnesota Statutes 1994, section 136E.01, 
  2.27  subdivision 1, is amended to read: 
  2.28     Subdivision 1.  [MEMBERSHIP.] The higher education board, 
  2.29  referred to in sections 136E.01 to 136E.05 as "the board," 
  2.30  consists of 15 members appointed by the governor with the advice 
  2.31  and consent of the senate.  At least one member of the board 
  2.32  must be a resident of each congressional district.  Three 
  2.33  members must be students who are enrolled at least half-time in 
  2.34  a degree, diploma, or certificate program or have graduated from 
  2.35  an institution governed by the board within one year of the date 
  2.36  of appointment.  The student members shall include:  one member 
  3.1   from a community college, one member from a state university, 
  3.2   and one member from a technical college.  The remaining members 
  3.3   must be appointed to represent the state at large.  
  3.4      Sec. 4.  Minnesota Statutes 1994, section 136E.02, 
  3.5   subdivision 1, is amended to read: 
  3.6      Subdivision 1.  [PURPOSE.] A higher education candidate 
  3.7   advisory council for the board candidate advisory council of 
  3.8   trustees of the Minnesota state colleges and universities shall 
  3.9   assist the governor in determining criteria for, and identifying 
  3.10  and recruiting qualified candidates for, nonstudent membership 
  3.11  on the higher education board. 
  3.12     Sec. 5.  Minnesota Statutes 1994, section 136E.02, 
  3.13  subdivision 3, is amended to read: 
  3.14     Subd. 3.  [DUTIES.] The advisory council shall: 
  3.15     (1) develop a statement of the selection criteria to be 
  3.16  applied and a description of the responsibilities and duties of 
  3.17  a member of the higher education board and shall distribute this 
  3.18  to potential candidates; and 
  3.19     (2) for each position on the board, identify and recruit 
  3.20  qualified candidates for the board, based on the background and 
  3.21  experience of the candidates, and their potential for 
  3.22  discharging the responsibilities of a member of the board. 
  3.23     Sec. 6.  Minnesota Statutes 1994, section 136E.021, 
  3.24  subdivision 2, is amended to read: 
  3.25     Subd. 2.  [CRITERIA.] After consulting with the higher 
  3.26  education board of trustees candidate advisory council, the 
  3.27  student associations shall jointly develop a statement of the 
  3.28  selection criteria to be applied to potential candidates. 
  3.29     Sec. 7.  Minnesota Statutes 1994, section 136E.03, is 
  3.30  amended to read: 
  3.31     136E.03 [MISSIONS.] 
  3.32     The mission of the board is to provide programs of study 
  3.33  that meet the needs of students for occupational, general, 
  3.34  baccalaureate, and graduate education.  The state universities, 
  3.35  community colleges, and technical colleges universities shall 
  3.36  have distinct missions as provided in section 135A.052, 
  4.1   subdivision 1.  Within that statutory definition and subject to 
  4.2   the approval of the board, each community college, state 
  4.3   university, and technical college campus may develop its own 
  4.4   distinct campus mission.  The board shall develop administrative 
  4.5   arrangements that make possible the efficient use of the 
  4.6   facilities and staff of the technical state colleges, community 
  4.7   colleges, and state universities for providing these several 
  4.8   different programs of study, so that students may have the 
  4.9   benefit of improved and broader course offerings, ease of 
  4.10  transfer among schools and programs, integrated course credit, 
  4.11  coordinated degree programs, and coordinated financial aid.  In 
  4.12  carrying out the merger of the three separate systems, the board 
  4.13  shall control administrative costs by eliminating duplicative 
  4.14  administrative positions and course offerings.  
  4.15     Sec. 8.  Minnesota Statutes 1994, section 136E.04, 
  4.16  subdivision 1, is amended to read: 
  4.17     Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
  4.18  possess all powers necessary to manage, supervise, and control 
  4.19  the technical state colleges, community colleges, and state 
  4.20  universities and all related property.  It Those powers shall 
  4.21  include, but are not limited to, those enumerated in this 
  4.22  section.  The board shall prescribe courses of study and 
  4.23  conditions of admission, prepare and confer diplomas set tuition 
  4.24  and fees, prescribe requirements for completion of programs, 
  4.25  approve the awarding of appropriate certificates, diplomas, and 
  4.26  degrees, and adopt suitable policies for the institutions it 
  4.27  manages.  Sections 14.01 to 14.47 do not apply to policies and 
  4.28  procedures of the board.  
  4.29     Sec. 9.  [136F.06] [POWERS AND DUTIES.] 
  4.30     Subd. 2.  [CHANCELLOR.] The board shall appoint a 
  4.31  chancellor who shall serve in the unclassified service.  The 
  4.32  chancellor shall be qualified by training and experience in the 
  4.33  field of education or administration.  The chancellor shall 
  4.34  possess powers and perform duties as delegated by the board.  
  4.35  The board shall set the salary of the chancellor according to 
  4.36  section 15A.081, subdivision 7b. 
  5.1      Sec. 10.  Minnesota Statutes 1994, section 136E.04, 
  5.2   subdivision 3, is amended to read: 
  5.3      Subd. 3.  [BUDGET.] (a) The board shall submit to the 
  5.4   governor and the legislature the budget request for its several 
  5.5   different programs of study.  
  5.6      (b) In its biennial budget request, the board shall provide 
  5.7   to the governor and legislature information on its occupational 
  5.8   and vocational programs specifying revenues, expenditures, 
  5.9   trends for expenditures, expenditures for instructional 
  5.10  equipment, and other relevant information related to those 
  5.11  programs.  The board shall also provide information on the 
  5.12  accountability measures it uses to determine the efficiency and 
  5.13  effectiveness of the occupational and vocational programs.  
  5.14     Sec. 11.  [136F.06] [POWERS AND DUTIES.] 
  5.15     Subd. 4.  [OFFICE LOCATION.] Notwithstanding chapter 16B, 
  5.16  the board may select the location for its central office. 
  5.17                            DESIGNATION 
  5.18     Sec. 12.  [136F.10] [DESIGNATION.] 
  5.19     The following are redesignated as the Minnesota state 
  5.20  colleges and universities:  the community colleges located at 
  5.21  Austin, Bloomington, Brainerd, Brooklyn Park, Cloquet, Coon 
  5.22  Rapids, Ely, Fergus Falls, Grand Rapids, Hibbing, International 
  5.23  Falls, Inver Grove Heights, Minneapolis, Rochester, Thief River 
  5.24  Falls, Virginia, White Bear Lake, Willmar, and Worthington; the 
  5.25  community college centers located at Cambridge and Duluth; the 
  5.26  state universities located at Bemidji, Mankato, Marshall, 
  5.27  Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan 
  5.28  area; and the technical colleges located at Alexandria, Albert 
  5.29  Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn Park, Canby, 
  5.30  Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, 
  5.31  Faribault, Granite Falls, Hibbing, Hutchinson, Jackson, 
  5.32  Minneapolis, Mahtomedi, Moorhead, North Mankato, Pine City, 
  5.33  Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul, 
  5.34  Staples, Thief River Falls, Wadena, Willmar, and Winona.  
  5.35     Sec. 13.  [136F.12] [FOND DU LAC CAMPUS.] 
  5.36     The Fond du Lac campus has a unique mission among two-year 
  6.1   colleges to serve the lower division general education needs in 
  6.2   Carlton and south St. Louis counties, and the education needs of 
  6.3   American Indians throughout the state and especially in northern 
  6.4   Minnesota.  Accordingly, while the college is governed by the 
  6.5   board of trustees, its governance is accomplished in conjunction 
  6.6   with the board of directors of Fond du Lac tribal college.  By 
  6.7   July 1, 1995, the board of trustees and the board of directors 
  6.8   of Fond du Lac tribal college shall implement the mechanisms 
  6.9   necessary to accomplish the sharing of authority while ensuring 
  6.10  accountability for college actions.  The mechanisms shall 
  6.11  supersede any previous arrangement, agreement, or memorandum of 
  6.12  understanding. 
  6.13     Sec. 14.  [136F.14] [CAMPUS MERGER OR REORGANIZATION.] 
  6.14     The board may merge or reorganize campuses or centers for 
  6.15  the purpose of increased efficiency, use of personnel, placement 
  6.16  of programs, student access, and other needs as determined by 
  6.17  the board. 
  6.18     Sec. 15.  [136F.16] [CAMPUS ESTABLISHMENT.] 
  6.19     Subdivision 1.  [NEW STATE COLLEGES AND UNIVERSITIES.] A 
  6.20  new state college or university shall be established only by 
  6.21  specific legislation.  For the purposes of this subdivision, 
  6.22  campuses or centers that are merged or reorganized under section 
  6.23  136F.14 are not new state colleges or universities. 
  6.24     Subd. 2.  [CAMPUS OR CENTER SITE.] The board may determine 
  6.25  the exact location and site for each campus or center. 
  6.26     Subd. 3.  [OFF-CAMPUS SITES.] The board shall not establish 
  6.27  off-campus centers or other permanent sites to provide academic 
  6.28  programs, courses, or student services without authorizing 
  6.29  legislation.  For the purposes of this subdivision, the campus 
  6.30  of Metropolitan State University is the seven-county 
  6.31  metropolitan area.  
  6.32     Sec. 16.  [136F.18] [CAMPUS CLOSING.] 
  6.33     The board may close a campus or center under its 
  6.34  jurisdiction.  Prior to closing a campus or center, the board 
  6.35  shall hold a public hearing on the issue in the area which would 
  6.36  be affected by the closing.  At the hearing affected persons 
  7.1   shall have an opportunity to present testimony.  The board shall 
  7.2   give notice of this hearing by publishing notice in the State 
  7.3   Register and in a newspaper of general circulation in the 
  7.4   affected area at least 30 days before the scheduled hearing.  
  7.5                               STUDENTS 
  7.6      Sec. 17.  Minnesota Statutes 1994, section 136E.04, 
  7.7   subdivision 7, is amended to read: 
  7.8      Subd. 7.  [REGISTRATION AND FINANCIAL AID.] The board shall 
  7.9   devise a student registration system that simplifies and 
  7.10  combines registration for the institutions it governs, improves 
  7.11  the financial aid application process for students, and provides 
  7.12  registration at common locations. 
  7.13     Sec. 18.  [136F.21] [STUDENT HEALTH.] 
  7.14     Subdivision 1.  [HEALTH SERVICE.] The board shall offer 
  7.15  health services for students at each state university and may 
  7.16  offer health services for students at each state college.  The 
  7.17  health services may be offered either on campus or in the nearby 
  7.18  community.  The board may charge each student a health service 
  7.19  fee set by the board.  The fees shall be used to maintain the 
  7.20  health service and equip and construct facilities.  The fee may 
  7.21  be used to contract for health, medical, and hospitalization 
  7.22  insurance for students.  The fees shall be deposited in an 
  7.23  activity fund and are annually appropriated to the board for the 
  7.24  purposes of this subdivision.  Each state college and university 
  7.25  shall provide an annual financial accounting of the health 
  7.26  service money to the board.  
  7.27     Subd. 2.  [HEALTH BENEFITS.] The board may contract for 
  7.28  hospital benefits coverage and medical benefits coverage for 
  7.29  students in the state colleges and universities in the same 
  7.30  manner as authorized by section 43A.23 for state employees.  
  7.31     Sec. 19.  Minnesota Statutes 1994, section 136E.525, 
  7.32  subdivision 1, is amended to read: 
  7.33     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
  7.34  statewide student association for the community colleges, one 
  7.35  for the state universities, and one for the technical colleges.  
  7.36  Each statewide campus student association shall be affiliated 
  8.1   with its campus statewide student associations but association 
  8.2   and all students enrolled on those campuses shall be members of 
  8.3   their respective statewide association. 
  8.4      Sec. 20.  Minnesota Statutes 1994, section 136E.525, 
  8.5   subdivision 2, is amended to read: 
  8.6      Subd. 2.  [FEES.] Each statewide association shall set its 
  8.7   fees to be collected by the board and shall submit any changes 
  8.8   in its fees to the board for review.  The board may revise or 
  8.9   reject the fee change.  Fees must be collected by each community 
  8.10  state college, state and university, and technical college and 
  8.11  shall be credited to each association's account to be spent as 
  8.12  determined by that association. 
  8.13     Sec. 21.  [136F.23] [STUDENTS; RECIPROCITY WITH OTHER 
  8.14  INSTITUTIONS.] 
  8.15     (a) The board may enter into contracts with private or 
  8.16  public colleges or universities in other states and in foreign 
  8.17  countries and with private colleges in this state on a 
  8.18  reciprocal basis in order to accomplish the following:  
  8.19     (1) to enable a student at any institution party to a 
  8.20  contract under this subdivision to take a specialized course or 
  8.21  courses at a different institution from that in which the 
  8.22  student is enrolled, with or without the payment of tuition 
  8.23  charges at the other institution; and 
  8.24     (2) to enable a student enrolled in any of the institutions 
  8.25  party to the contract to attend another institution party to the 
  8.26  contract without being required to pay nonresident tuition fees 
  8.27  and in accordance with the terms of the contract.  
  8.28     (b) A contract entered into under this subdivision shall 
  8.29  provide for approximately equal advantages between the 
  8.30  contracting institutions and shall provide that the admission of 
  8.31  nonresidents shall be on a space available basis only. 
  8.32     Sec. 22.  [136F.24] [LEGAL COUNSELING AND SERVICE PROGRAM; 
  8.33  FUNDING.] 
  8.34     (a) Notwithstanding section 8.06, or any other law or rule 
  8.35  to the contrary, the official campus student association at each 
  8.36  state college or university may expend money for the purpose of 
  9.1   funding a program to provide legal counseling and services to 
  9.2   students of the state college or university.  The money to be 
  9.3   expended shall be from that certain account of the state college 
  9.4   and university activity funds allocated to the student 
  9.5   associations.  
  9.6      (b) In addition to the provisions of paragraph (a), the 
  9.7   statewide college and university student associations may expend 
  9.8   money assigned to them to fund a legal counseling and service 
  9.9   program. 
  9.10     Sec. 23.  [136F.25] [ABSENCE FOR CHEMICAL ABUSE TREATMENT.] 
  9.11     If a student is absent from a state college or university 
  9.12  to participate in a chemical abuse treatment program licensed by 
  9.13  the state, the student, upon request, shall remain on the roll 
  9.14  in the educational program of the state college or university in 
  9.15  which the student is enrolled, according to policies adopted by 
  9.16  the board. 
  9.17     Sec. 24.  [136F.28] [SOUTHWEST ASIA VETERANS; TECHNICAL 
  9.18  COLLEGES.] 
  9.19     Subdivision 1.  [GRANTS.] A Southwest Asia veteran who 
  9.20  enrolls in a technical college program, and who is a Minnesota 
  9.21  resident whose entire education has not included completion of 
  9.22  at least one technical college program is eligible for a state 
  9.23  grant of $500 per year if the veteran has GI Montgomery bill 
  9.24  benefits, or $1,000 per year if the veteran does not have GI 
  9.25  Montgomery bill benefits, until the veteran has completed the 
  9.26  lesser of (1) 115 credits in a technical college program, or (2) 
  9.27  one technical college program.  The grant is based on full-time 
  9.28  attendance and shall be prorated if the student is attending 
  9.29  less than full time.  To be eligible for the tuition relief, a 
  9.30  veteran who is discharged before July 1, 1993, must enroll in a 
  9.31  technical college by July 1, 1995, and a veteran who is 
  9.32  discharged on or after July 1, 1993, must enroll in a technical 
  9.33  college within two years of the date of discharge. All veterans 
  9.34  enrolled under this program must maintain a minimum of six 
  9.35  credits per quarter.  Total grants may not exceed the available 
  9.36  appropriation.  
 10.1      Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
 10.2   "Southwest Asia veteran"  means a person who:  
 10.3      (1) served in the active military service in any branch of 
 10.4   the armed forces of the United States any time between August 1, 
 10.5   1990 and February 27, 1992; 
 10.6      (2) became eligible for the Southwest Asia Service Medal as 
 10.7   a result of the service; 
 10.8      (3) was a Minnesota resident at the time of induction into 
 10.9   the armed forces and for the one year immediately preceding 
 10.10  induction; and 
 10.11     (4) has been separated or discharged from active military 
 10.12  service under conditions other than dishonorable.  
 10.13                             CURRICULUM 
 10.14     Sec. 25.  [136F.30] [COURSES AND PROGRAMS.] 
 10.15     Subdivision 1.  [COURSES OF STUDY.] The board shall 
 10.16  prescribe the courses of study, including graduate and 
 10.17  undergraduate academic programs, training in professional, 
 10.18  semiprofessional and technical fields, and adult education.  The 
 10.19  board shall avoid duplicate program offerings.  The board shall 
 10.20  place a high priority on ensuring the transferability of credit. 
 10.21     Subd. 2.  [ASSOCIATE DEGREE PLAN.] The board shall develop 
 10.22  a plan for awarding associate degrees which reflects the mission 
 10.23  of each campus it governs. 
 10.24     Subd. 3.  [SHORT-TERM PROGRAMS.] The board may approve a 
 10.25  short-term program in a state college or university as an 
 10.26  economic development initiative.  The short-term program shall 
 10.27  have an approved program length of not more than two years, be 
 10.28  operated for a specified duration, and shall not become 
 10.29  permanent.  
 10.30     Sec. 26.  [136F.32] [DEGREES; DIPLOMAS; CERTIFICATES.] 
 10.31     The board may award appropriate certificates, diplomas, or 
 10.32  degrees to persons who complete a prescribed curriculum. 
 10.33     Sec. 27.  [136F.34] [EDUCATIONAL TELEVISION AND 
 10.34  TELECOMMUNICATIONS.] 
 10.35     Subdivision 1.  [TELEVISION AND TELECOMMUNICATION.] The 
 10.36  board may establish educational television and telecommunication 
 11.1   projects at state colleges and universities, and may make 
 11.2   facilities available to public or private nonprofit 
 11.3   organizations.  
 11.4      Subd. 2.  [COOPERATION.] The board may cooperate and 
 11.5   contract with public and private educational television systems, 
 11.6   and other civic, cultural, and educational agencies and 
 11.7   nonprofit organizations. 
 11.8      Sec. 28.  [136F.35] [MODEL SCHOOLS.] 
 11.9      The board may establish model schools in a state university 
 11.10  for illustrating methods of teaching. 
 11.11                          HUMAN RESOURCES 
 11.12     Sec. 29.  [136F.40] [APPOINTMENT OF PERSONNEL.] 
 11.13     Subdivision 1.  [APPOINTMENT.] The board shall appoint all 
 11.14  presidents, teachers, and other necessary employees and shall 
 11.15  prescribe their duties consistent with chapter 43A.  Salaries 
 11.16  and benefits of employees must be determined according to 
 11.17  chapters 43A and 179A.  
 11.18     Subd. 2.  [INTERVIEW EXPENSES.] Candidates for positions in 
 11.19  the board office or in a state college or university who have 
 11.20  been invited by the board for an interview may be reimbursed for 
 11.21  travel and subsistence expenses in the same manner and amounts 
 11.22  as state employees.  
 11.23     Sec. 30.  Minnesota Statutes 1994, section 136E.31, is 
 11.24  amended to read: 
 11.25     136E.31 [ASSIGNMENT TO BARGAINING UNITS.] 
 11.26     Actions by the higher education board to merge or 
 11.27  redesignate institutions or to promote collaborative efforts 
 11.28  between institutions must not unilaterally change faculty 
 11.29  assignments to bargaining units provided in section 179A.10, 
 11.30  subdivision 2. 
 11.31     Sec. 31.  [136F.42] [EXTENDED LEAVES OF ABSENCE.] 
 11.32     Subdivision 1.  [DEFINITION.] As used in this section, 
 11.33  "teacher" means a person on the instructional or administrative 
 11.34  staff of the state colleges and universities who is a member of 
 11.35  the teachers retirement association under chapter 354 or who is 
 11.36  covered by the unclassified employees plan under chapter 352D or 
 12.1   individual retirement account plan under chapter 354B.  It shall 
 12.2   not include a chancellor, deputy chancellor, or vice-chancellor. 
 12.3      Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
 12.4   extended leave of absence without salary to a full time teacher 
 12.5   who has been employed by the board for at least five years and 
 12.6   has at least ten years of allowable service as defined in 
 12.7   section 354.05, subdivision 13.  The maximum duration of an 
 12.8   extended leave of absence pursuant to this section shall be 
 12.9   determined by mutual agreement of the board and the teacher at 
 12.10  the time the leave is granted and shall be at least three but no 
 12.11  more than five years.  An extended leave of absence pursuant to 
 12.12  this section shall be taken by mutual consent of the board and 
 12.13  the teacher.  No teacher may receive more than one leave of 
 12.14  absence pursuant to this section.  
 12.15     Subd. 3.  [REINSTATEMENT.] A teacher on an extended leave 
 12.16  of absence pursuant to this section shall have the right to be 
 12.17  reinstated to the same position or a similar position within the 
 12.18  department or program from which the leave was granted at the 
 12.19  beginning of the school year which immediately follows a year of 
 12.20  extended leave of absence, unless the teacher is discharged or 
 12.21  placed on retrenchment or on layoff or the teacher's contract is 
 12.22  terminated while the teacher is on the extended leave.  The 
 12.23  board shall not be obligated to reinstate a teacher who is on an 
 12.24  extended leave of absence pursuant to this section unless the 
 12.25  teacher advises the board of an intention to return before 
 12.26  February 1 in the school year preceding the school year in which 
 12.27  the teacher wishes to return.  
 12.28     Subd. 4.  [SENIORITY RIGHTS.] A teacher who is reinstated 
 12.29  to the same or similar position after an extended leave pursuant 
 12.30  to this section shall not lose tenure or credit for previous 
 12.31  seniority in the employing state college or university.  A 
 12.32  teacher shall not accrue seniority credit during the time of a 
 12.33  leave of absence pursuant to this section, except that a teacher 
 12.34  at a state college or university may accrue seniority credit 
 12.35  during the leave, consistent with the conditions of the 
 12.36  collective bargaining agreement.  
 13.1      Subd. 5.  [SALARY.] The years spent by a teacher on an 
 13.2   extended leave of absence pursuant to this section shall not be 
 13.3   included in the determination of the teacher's salary upon 
 13.4   reinstatement to the same or similar position by the board.  The 
 13.5   credits earned by a teacher on an extended leave of absence 
 13.6   pursuant to this section shall not be included in the 
 13.7   determination of the teacher's salary upon reinstatement to the 
 13.8   same or similar position by the board for a period of time equal 
 13.9   to the time of the extended leave of absence.  
 13.10     Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
 13.11  a leave of absence which is not subject to the provisions of 
 13.12  this section and section 354.094. 
 13.13     Sec. 32.  [136F.43] [ANNUITIES.] 
 13.14     Subdivision 1.  [PURCHASE.] At the request of an employee, 
 13.15  the board may negotiate and purchase an individual annuity 
 13.16  contract for an employee for retirement or other purposes from a 
 13.17  company licensed to do business in Minnesota, and may allocate a 
 13.18  portion of the compensation otherwise payable to the employee as 
 13.19  salary for the purpose of paying the entire premium due or to 
 13.20  become due under the contract. The allocation shall be made in a 
 13.21  manner that will qualify the annuity premiums, or a portion 
 13.22  thereof, for the benefit afforded under section 403(b) of the 
 13.23  current federal Internal Revenue Code or any equivalent 
 13.24  provision of subsequent federal income tax law. The employee 
 13.25  shall own the contract and the employee's rights thereunder 
 13.26  shall be nonforfeitable except for failure to pay premiums.  
 13.27     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
 13.28  shall be deposited in an annuity account established by the 
 13.29  board.  Payment of annuity premiums shall be made when due or in 
 13.30  accordance with the salary agreement entered into between the 
 13.31  employee and the board.  The money in the annuity account is not 
 13.32  subject to the budget, allotment, and incumbrance system 
 13.33  provided for in chapter 16A.  
 13.34     Sec. 33.  [136F.44] [NONPROFIT FOUNDATION PAYROLL 
 13.35  DEDUCTION.] 
 13.36     Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
 14.1   finance, upon the written request of an employee of the board, 
 14.2   may deduct from an employee's salary or wages the amount 
 14.3   requested for payment to a nonprofit state college or university 
 14.4   foundation meeting the requirements in subdivision 2.  The 
 14.5   commissioner shall issue a warrant for the deducted amount to 
 14.6   the nonprofit foundation.  The Penny fellowship of the Minnesota 
 14.7   state university student association shall be considered a 
 14.8   nonprofit state college and university foundation for purposes 
 14.9   of this section. 
 14.10     Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
 14.11  state college or university foundation that desires to receive 
 14.12  contributions through payroll deductions shall apply to the 
 14.13  board for approval to participate in the payroll deduction 
 14.14  plan.  The board may approve the application for participation 
 14.15  if the foundation:  
 14.16     (1) is tax exempt under section 501(c)3 of the Internal 
 14.17  Revenue Code of 1986, as amended; 
 14.18     (2) qualifies for tax deductible contributions under 
 14.19  section 170 of the Internal Revenue Code of 1986, as amended; 
 14.20     (3) secures funding solely for distribution to a state 
 14.21  college or university or for distribution to students in the 
 14.22  form of scholarships; and 
 14.23     (4) has been incorporated according to chapter 317A for at 
 14.24  least one calendar year before the date it applies to the board 
 14.25  for approval.  
 14.26     Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
 14.27  deductions authorized in subdivision 1 may not interfere with, 
 14.28  require a modification of, nor be conducted during the period of 
 14.29  a payroll deduction fund drive for employees authorized by 
 14.30  section 309.501. 
 14.31     Sec. 34.  [136F.45] [EMPLOYER-PAID HEALTH INSURANCE.] 
 14.32     (a) This section applies to a person who:  
 14.33     (1) retires from the state university system, the technical 
 14.34  college system, or the community college system, or from a 
 14.35  successor system employing state university, technical college, 
 14.36  or community college faculty, with at least ten years of service 
 15.1   credit in the system from which the person retires; 
 15.2      (2) was employed on a full-time basis immediately preceding 
 15.3   retirement as a state university, technical college, or 
 15.4   community college faculty member; 
 15.5      (3) begins drawing an annuity from the teachers retirement 
 15.6   association or from the first class cities teachers retirement 
 15.7   funds; and 
 15.8      (4) returns to work on not less than a one-third time basis 
 15.9   and not more than a two-thirds time basis in the system from 
 15.10  which the person retired under an agreement in which the person 
 15.11  may not earn a salary of more than $35,000 in a calendar year 
 15.12  from employment in the system from which the person retired.  
 15.13     (b) Initial participation, the amount of time worked, and 
 15.14  the duration of participation under this section must be 
 15.15  mutually agreed upon by the employer and the employee.  The 
 15.16  employer may require up to one-year notice of intent to 
 15.17  participate in the program as a condition of participation under 
 15.18  this section.  The employer shall determine the time of year the 
 15.19  employee shall work.  
 15.20     (c) For a person eligible under paragraphs (a) and (b), the 
 15.21  employing board shall make the same employer contribution for 
 15.22  hospital, medical, and dental benefits as would be made if the 
 15.23  person were employed full time.  
 15.24     (d) For work under paragraph (a), a person must receive a 
 15.25  percentage of the person's salary at the time of retirement that 
 15.26  is equal to the percentage of time the person works compared to 
 15.27  full-time work.  
 15.28     (e) If a collective bargaining agreement covering a person 
 15.29  provides for an early retirement incentive that is based on age, 
 15.30  the incentive provided to the person must be based on the 
 15.31  person's age at the time employment under this section ends.  
 15.32  However, the salary used to determine the amount of the 
 15.33  incentive must be the salary that would have been paid if the 
 15.34  person had been employed full time for the year immediately 
 15.35  preceding the time employment under this section ends.  
 15.36     Sec. 35.  [136F.49] [EXCHANGE TEACHERS.] 
 16.1      Subdivision 1.  [ASSIGNMENT; PROFESSIONAL STAFF.] The board 
 16.2   may assign a member of its professional staff to teach in 
 16.3   another institution of education beyond the borders of the state 
 16.4   of Minnesota.  When so assigned, the staff member is an exchange 
 16.5   teacher.  
 16.6      Subd. 2.  [ASSIGNMENT; TEACHERS.] The board may assign a 
 16.7   teacher for service in another institution of education beyond 
 16.8   the borders of the state of Minnesota in exchange for services 
 16.9   of a teacher with qualifications acceptable to the board.  
 16.10     Subd. 3.  [RIGHTS.] An exchange teacher shall retain all 
 16.11  rights under contract with the board as though teaching in a 
 16.12  Minnesota state college or university. 
 16.13     Sec. 36.  [136F.495] [LICENSURE.] 
 16.14     The board may adopt rules under chapter 14 for licensure of 
 16.15  teaching, support, and supervisory personnel in post-secondary 
 16.16  and adult vocational education.  When necessary for continuous 
 16.17  programs approved by the board and when the board determines 
 16.18  that appropriate licensure standards do not exist, the board may 
 16.19  adopt appropriate temporary standards without regard to chapter 
 16.20  14 and may issue temporary licenses to teaching and support 
 16.21  personnel.  A temporary license is valid for up to one year and 
 16.22  is not renewable, but a person holding a temporary license may, 
 16.23  upon its expiration, be issued a license in accordance with 
 16.24  standards adopted under chapter 14.  The board may establish a 
 16.25  processing fee for the issuance, renewal, or extension of a 
 16.26  license.  
 16.27                           ADMINISTRATION 
 16.28     Sec. 37.  [136F.50] [COOPERATION OR PROMOTION OF A STATE 
 16.29  COLLEGE OR UNIVERSITY.] 
 16.30     The board may cooperate by contractual arrangement or 
 16.31  otherwise with responsible persons, firms, corporations, 
 16.32  associations, or governmental agencies to promote short courses, 
 16.33  research, and other programs and activities in the state 
 16.34  colleges and universities as in the judgment of the board 
 16.35  contribute to the development of the state colleges and 
 16.36  universities and the welfare of their students. 
 17.1      Sec. 38.  Minnesota Statutes 1994, section 136E.05, is 
 17.2   amended to read: 
 17.3      136E.05 [LOCAL ADVISORY COMMITTEES.] 
 17.4      Subdivision 1.  [APPOINTMENT.] The president, with the 
 17.5   approval of the chancellor and the board, may appoint a local 
 17.6   advisory committee for each campus.  Committee members must be 
 17.7   qualified people who have knowledge of and interest in the 
 17.8   campus.  The board shall define the role and authority of the 
 17.9   advisory committees and establish procedures for the 
 17.10  appointment, terms, and termination of members.  The president 
 17.11  or an appointee of the president shall regularly meet and 
 17.12  consult with the local advisory committee. 
 17.13     Subd. 2.  [COMPENSATION.] Advisory committee members shall 
 17.14  serve without compensation and without reimbursement for 
 17.15  expenses.  
 17.16     Sec. 39.  [136F.54] [PARKING AND TRAFFIC REGULATION.] 
 17.17     Subdivision 1.  [BOARD POWER.] Notwithstanding section 
 17.18  169.966, the board may authorize a state college or university 
 17.19  to adopt and enforce policies, regulations, or ordinances for 
 17.20  the regulation of traffic and parking in parking facilities and 
 17.21  on private roads and roadways situated on property owned, 
 17.22  leased, occupied, or operated by the state college or university.
 17.23     Subd. 2.  [FINES; FEES.] A state college or university may 
 17.24  collect a fine and a towing fee for a violation.  Money 
 17.25  collected under this section by a state college or university is 
 17.26  annually appropriated to the state college or university for 
 17.27  parking lot maintenance, improvement, and policy enforcement. 
 17.28     Subd. 3.  [DISPUTES.] A state college or university, with 
 17.29  the approval of the board, shall establish procedures to resolve 
 17.30  a dispute arising from enforcement of a policy. 
 17.31     Subd. 4.  [PROCEDURE.] Chapter 14 does not apply to this 
 17.32  section.  
 17.33     Subd. 5.  [ENFORCEMENT.] Every sheriff, constable, police 
 17.34  officer, or other peace officer shall have authority to enforce 
 17.35  all policies and ordinances adopted pursuant to this section and 
 17.36  shall have authority to arrest and prosecute offenders for 
 18.1   violations of law.  
 18.2      Sec. 40.  [136F.56] [STUDENT HOUSING MANAGEMENT.] 
 18.3      The board may contract with student housing facility owners 
 18.4   or on-site management firms to assist in the operation, control, 
 18.5   and management of the facility. 
 18.6      Sec. 41.  [136F.58] [STATE COUNCIL ON VOCATIONAL TECHNICAL 
 18.7   EDUCATION.] 
 18.8      Subdivision 1.  [STATE AGENCY PURPOSE.] The state council 
 18.9   on vocational technical education, formerly known as the 
 18.10  Minnesota state advisory council for vocational education, is a 
 18.11  state agency in the executive branch.  Its purpose is to 
 18.12  implement section 112 of the Carl D. Perkins Vocational 
 18.13  Education Act of 1984, United States Code, title 20, section 
 18.14  2322, and other purposes necessary to improve vocational 
 18.15  technical education.  
 18.16     Subd. 2.  [MEMBERS; TERMS.] The governor shall appoint the 
 18.17  members of the council according to United States Code, title 
 18.18  20, section 2322.  Except as otherwise provided by that act, 
 18.19  members are governed by section 15.0575.  
 18.20     Subd. 3.  [OFFICES.] The commissioner of administration 
 18.21  shall provide the council with suitable office space, 
 18.22  furnishings, and equipment.  
 18.23     Subd. 4.  [FUNDING.] Federal, state, or private money 
 18.24  received by the council must be deposited in the state treasury 
 18.25  and credited to a special account for the council.  The council 
 18.26  has sole authority to spend its money.  The money may not be 
 18.27  diverted or reprogrammed by any agency or person to any other 
 18.28  purpose.  Unless restricted by federal or other state law, the 
 18.29  council may carry forward any unexpended balance from one fiscal 
 18.30  year to the next and from one fiscal biennium to the next.  
 18.31     Subd. 5.  [SERVICE CONTRACTS.] The council may contract for 
 18.32  the services it needs to carry out its function.  The council 
 18.33  may also contract to provide services to other organizations. 
 18.34  The contracts are not subject to the contract approval 
 18.35  procedures of the commissioner of administration or of chapter 
 18.36  16B.  
 19.1      Subd. 6.  [FISCAL AGENT.] The board shall act as fiscal 
 19.2   agent for the council and provide other support services 
 19.3   necessary for disbursements, accounting, auditing, and reporting.
 19.4      Subd. 7.  [STAFF.] The council may employ an executive 
 19.5   director and other staff needed to carry out its duties.  The 
 19.6   executive director shall serve in the unclassified service and 
 19.7   may be paid an allowance not to exceed $2,000 annually for 
 19.8   miscellaneous expenses in connection with duties of the office. 
 19.9   The council may contract with professional, technical, and 
 19.10  clerical consultants and interns needed to carry out its 
 19.11  functions. 
 19.12     Sec. 42.  [136F.59] [CLASSES ON HOLIDAYS.] 
 19.13     The board may conduct classes in the state colleges and 
 19.14  universities on any of the following holidays:  Martin Luther 
 19.15  King's Birthday, Presidents' Day, Columbus Day, and Veterans Day.
 19.16     Sec. 43.  [136F.591] [BOOKSTORES.] 
 19.17     The board may permit a state college or university to 
 19.18  conduct a bookstore in a state college or university building, 
 19.19  or may allocate space in a state college or university building 
 19.20  and permit a person or corporation to conduct a bookstore 
 19.21  therein without rent at the board's pleasure and on such 
 19.22  conditions as the board may impose.  The board may provide 
 19.23  insurance, at no cost to the state, for the inventory of a 
 19.24  bookstore a state college or university conducts in its building.
 19.25                             FACILITIES 
 19.26     Sec. 44.  [136F.60] [COLLEGE AND UNIVERSITY SITES; 
 19.27  ACQUISITION.] 
 19.28     Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
 19.29  UNIVERSITIES.] The board may purchase property adjacent to or in 
 19.30  the vicinity of the campuses as necessary for the development of 
 19.31  a state university.  Before taking action, the board shall 
 19.32  consult with the chairs of the senate finance committee and the 
 19.33  house ways and means committee about the proposed action.  The 
 19.34  board shall explain the need to acquire property, specify the 
 19.35  property to be acquired, and indicate the source and amount of 
 19.36  money needed for the acquisition.  The amount needed may be 
 20.1   spent from sums previously appropriated for purposes of the 
 20.2   state colleges and universities, including but not limited to 
 20.3   general fund appropriations for instructional or 
 20.4   noninstructional expenditures, general fund appropriations 
 20.5   carried forward, or state college and university activity fund 
 20.6   appropriations. The board may pay relocation costs, at its 
 20.7   discretion, when acquiring property.  
 20.8      Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
 20.9   appropriated to the board to acquire lands or sites for public 
 20.10  buildings or real estate, the acquisition may be by gift, 
 20.11  purchase, or condemnation proceedings.  Condemnation proceedings 
 20.12  must be under chapter 117. 
 20.13     Sec. 45.  [136F.64] [STUDENT HOUSING; LAND TRANSFER.] 
 20.14     At the request of the board, the commissioner of 
 20.15  administration shall transfer and convey, or lease for a term of 
 20.16  years, state land under the control of but no longer needed by a 
 20.17  state college or university to the city where the state college 
 20.18  or university is located.  The land must be used by the city for 
 20.19  student housing.  The conveyance must be made for no monetary 
 20.20  consideration, and by quitclaim deed in a form approved by the 
 20.21  attorney general.  The deed must provide that the land reverts 
 20.22  to the state if it is no longer used for student housing unless 
 20.23  the owner of improvements on the land agrees before the 
 20.24  reversion to pay the state the value of the unimproved land as 
 20.25  determined by the commissioner before the improvements were 
 20.26  made.  The commissioner shall inflate the value of the 
 20.27  unimproved land by three percent compounded annually for each 
 20.28  year of ownership after the improvements were made.  For 
 20.29  purposes of determining the value, the commissioner shall 
 20.30  designate two or more of the regularly appointed and qualified 
 20.31  state appraisers to determine the value of the land.  
 20.32     Sec. 46.  Minnesota Statutes 1994, section 136E.692, 
 20.33  subdivision 1, is amended to read: 
 20.34     Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The higher 
 20.35  education board shall supervise and control the preparation of 
 20.36  plans and specifications for the construction, alteration, or 
 21.1   enlargement of community college, state university, and 
 21.2   technical state college and university buildings, structures, 
 21.3   and improvements for which appropriations are made to the board. 
 21.4   The board shall advertise for bids and award contracts in 
 21.5   connection with the improvements, supervise and inspect the 
 21.6   work, approve necessary changes in the plans and specifications, 
 21.7   approve estimates for payment, and accept the improvements when 
 21.8   completed according to the plans and specifications. 
 21.9      Sec. 47.  Minnesota Statutes 1994, section 136E.692, 
 21.10  subdivision 3, is amended to read: 
 21.11     Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
 21.12  projects, the higher education board must not restrict its 
 21.13  access to litigation or limit its methods of redress to 
 21.14  arbitration or other nonjudicial procedures. 
 21.15     Sec. 48.  Minnesota Statutes 1994, section 136E.692, 
 21.16  subdivision 4, is amended to read: 
 21.17     Subd. 4.  [REPAIRS.] The higher education board shall 
 21.18  supervise and control the making of necessary repairs to all 
 21.19  community state college, state and university, and technical 
 21.20  college buildings and structures. 
 21.21     Sec. 49.  [136F.68] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
 21.22     In awarding contracts for capital projects under section 
 21.23  16B.09, the board shall consider the documentation provided by 
 21.24  the bidders regarding their qualifications, including evidence 
 21.25  of having successfully completed similar work, or delivering 
 21.26  services or products comparable to that being requested.  The 
 21.27  board shall set procedures to administer this section, which 
 21.28  must include practices that will assist in the economic 
 21.29  development of small businesses, small targeted group 
 21.30  businesses, and businesses in economically disadvantaged areas 
 21.31  designated under section 16B.19. 
 21.32                              FINANCE 
 21.33     Sec. 50.  [136F.70] [TUITION; FEES; ACTIVITIES FUNDS.] 
 21.34     Subdivision 1.  [TUITION.] The board shall set rates of 
 21.35  tuition for the various instructional programs, including 
 21.36  in-service education courses, general adult education programs, 
 22.1   summer session programs, off-campus courses, institutes, 
 22.2   projects, and reciprocity agreements.  The board may waive 
 22.3   tuition for certain persons, courses, and programs.  
 22.4      Subd. 2.  [FEES.] The board may prescribe fees to be 
 22.5   charged students for student unions, state college and 
 22.6   university activities, functions, and purposes.  
 22.7      Subd. 3.  [REFUNDS.] The board may make refunds to students 
 22.8   for tuition, activity fees, union fees, and any other fees from 
 22.9   imprest cash funds.  The imprest cash fund shall be reimbursed 
 22.10  periodically by checks or warrants drawn on the funds and 
 22.11  accounts to which the refund should ultimately be charged.  The 
 22.12  amounts necessary to pay the refunds are appropriated from the 
 22.13  funds and accounts to which they are charged.  
 22.14     Sec. 51.  [136F.71] [RECEIPTS.] 
 22.15     Subdivision 1.  [APPROPRIATION OF RECEIPTS.] All receipts 
 22.16  of every kind, nature, and description, including student 
 22.17  tuition and fees, all federal receipts, aids, contributions, and 
 22.18  reimbursements, but not including receipts attributable to state 
 22.19  colleges and universities activity funds, in all the state 
 22.20  colleges and universities are appropriated to the board, but are 
 22.21  subject to budgetary control to be exercised by the commissioner 
 22.22  of finance.  The balance in these funds shall not cancel on June 
 22.23  30, but shall be available in the next fiscal year. 
 22.24     Subd. 2.  [ACTIVITY FUNDS.] All receipts attributable to 
 22.25  the state colleges and universities activity funds and deposited 
 22.26  in the state treasury are appropriated to the board and are not 
 22.27  subject to budgetary control as exercised by the commissioner of 
 22.28  finance.  
 22.29     Sec. 52.  [136F.72] [FUNDS.] 
 22.30     Subdivision 1.  [ACTIVITY FUNDS.] The board shall establish 
 22.31  in each state college and university a fund to be known as the 
 22.32  activity fund.  The purpose of these funds shall be to provide 
 22.33  for the administration of state college and university 
 22.34  activities designed for student recreational, social, welfare, 
 22.35  and educational pursuits supplemental to the regular curricular 
 22.36  offerings.  The activity funds shall encompass accounts for 
 23.1   student activities, student health services authorized college 
 23.2   and university agencies, authorized auxiliary enterprises, 
 23.3   student loans, gifts and endowments, and in addition other 
 23.4   accounts as the board may prescribe.  
 23.5      Subd. 2.  [ADMINISTRATIVE FUND AND ACCOUNTS.] The board may 
 23.6   establish a fund within the board office for management of 
 23.7   employee retirement funds.  The board may establish an 
 23.8   administrative fund at each state college and university or 
 23.9   within the board office for the administration of contracts, 
 23.10  student equipment purchases, and receipt and transfer of foreign 
 23.11  program money.  
 23.12     Subd. 3.  [ADMINISTRATION.] The board, independent of other 
 23.13  authority and notwithstanding chapters 16A and 16B, shall 
 23.14  administer the money collected for the state colleges and 
 23.15  universities activity funds and the administrative fund.  All 
 23.16  activity fund money collected shall be administered under the 
 23.17  policies of the board subject to audit of the legislative 
 23.18  auditor.  
 23.19     Subd. 4.  [IMPREST CASH FUNDS.] The board may establish an 
 23.20  imprest cash fund in each of its state colleges and universities.
 23.21     Sec. 53.  [136F.73] [CASH OVER AND SHORT ACCOUNT OF IMPREST 
 23.22  CASH FUND.] 
 23.23     The board may establish a cash over and short account 
 23.24  within the imprest cash fund for each state college and 
 23.25  university.  This account shall be used to record on a daily 
 23.26  basis overages and shortages of cash receipts.  At the end of 
 23.27  each fiscal year, the board shall credit or debit the overage or 
 23.28  shortage from each state college or university to the board 
 23.29  maintenance and equipment appropriation account.  In the 
 23.30  instance of a debit balance remaining in any cash over and short 
 23.31  accounts, the board may transfer from the maintenance and 
 23.32  equipment appropriation account moneys sufficient to offset such 
 23.33  debit balance.  The commissioner of finance shall make the 
 23.34  appropriate adjustments and entries on the general books of 
 23.35  account of the state.  
 23.36     Sec. 54.  [136F.74] [CARRY-OVER AUTHORITY.] 
 24.1      The board may carry over any unexpended balance from its 
 24.2   appropriation from the first year of a biennium into the second 
 24.3   year of the biennium.  The board may carry over any unexpended 
 24.4   balance into the following biennium.  The amounts carried over 
 24.5   must not be taken into account in determining state 
 24.6   appropriations and must not be deducted from a later 
 24.7   appropriation. 
 24.8      Sec. 55.  [136F.75] [LITIGATION AWARDS.] 
 24.9      Notwithstanding any law to the contrary, the board may keep 
 24.10  money received from successful litigation by or against the 
 24.11  board.  Awards made to the state or the board resulting from 
 24.12  litigation against or by the board must be kept by the board to 
 24.13  the credit of the account from which the litigation was 
 24.14  originally funded.  An award that exceeds the costs incurred in 
 24.15  the litigation shall be used by the board for repair or 
 24.16  replacement projects.  The board shall report on any awards it 
 24.17  receives as part of its biennial budget request.  
 24.18     Sec. 56.  [136F.77] [TECHNICAL EQUIPMENT.] 
 24.19     Subdivision 1.  [PROPRIETARY PURCHASES.] Notwithstanding 
 24.20  the competitive bidding requirements of chapter 16B, technical 
 24.21  educational equipment may be purchased for state colleges and 
 24.22  universities on request of the board either by brand designation 
 24.23  or in accordance with standards and specifications prescribed by 
 24.24  the board.  The purchase is subject to supervision by the 
 24.25  information policy office under section 16B.41.  
 24.26     Subd. 2.  [COMPUTER SALES AND SUPPORT.] The board may sell 
 24.27  computers and related products to state college and university 
 24.28  staff and students to advance their instructional and research 
 24.29  abilities.  The board shall contract with a private vendor for 
 24.30  service, maintenance, and support for computers and related 
 24.31  products sold by the board. 
 24.32     Sec. 57.  [136F.78] [FINANCING FOR CHILD CARE FACILITIES.] 
 24.33     A state college or university may seek financing for child 
 24.34  care facilities through the higher education facilities 
 24.35  authority, as provided in section 136A.28, subdivision 3, only 
 24.36  with the explicit authorization of the board.  
 25.1      Sec. 58.  [136F.79] [SOLE STATE AGENCY.] 
 25.2      The board is the sole state agency to receive and disburse 
 25.3   federal funds authorized by the Vocational Education Act of 
 25.4   1963, as amended in the education amendments of 1976, Public Law 
 25.5   Number 94-482, and Code of Federal Regulations, title 34, part 
 25.6   400.  The board shall develop and submit the state plan for 
 25.7   vocational technical education.  The board shall develop the 
 25.8   state plan according to terms of agreement with the state board 
 25.9   of education.  
 25.10                          GRANTS AND GIFTS 
 25.11     Sec. 59.  [136F.80] [GRANTS; GIFTS; BEQUESTS; DEVISES; 
 25.12  ENDOWMENTS.] 
 25.13     Subdivision 1.  [RECEIPT AND ACCEPTANCE.] The board may 
 25.14  apply for, receive, and accept on behalf of the state and for 
 25.15  the benefit of any state college or university any grant, gift, 
 25.16  bequest, devise, or endowment that any person, firm, 
 25.17  corporation, foundation, association, or government agency may 
 25.18  make to the board for the purposes of the state colleges and 
 25.19  universities.  The board may use any money given to it or to any 
 25.20  of the state colleges and universities consistent with the terms 
 25.21  and conditions under which the money was received and for the 
 25.22  purposes stated.  All moneys received are appropriated to the 
 25.23  board for use in the colleges and universities.  These moneys 
 25.24  shall not be taken into account in determining appropriations or 
 25.25  allocations.  All taxes and special assessments constituting a 
 25.26  lien on any real property received and accepted by the board 
 25.27  under this section shall be paid in full before title is 
 25.28  transferred to the state.  
 25.29     Subd. 2.  [DEPOSIT OF MONEY.] The board shall provide by 
 25.30  policy, in accordance with provisions of chapter 118, for the 
 25.31  deposit of all money received or referred to under this 
 25.32  section.  Whenever the board shall by resolution determine that 
 25.33  there are moneys in the state college or university funds not 
 25.34  currently needed, the board may by resolution authorize and 
 25.35  direct the president of the college or university to invest a 
 25.36  specified amount in securities as are duly authorized as legal 
 26.1   investments for savings banks and trust companies. Securities so 
 26.2   purchased shall be deposited and held for the board by any bank 
 26.3   or trust company authorized to do a banking business in this 
 26.4   state. 
 26.5                          GENERAL PROVISIONS 
 26.6      Sec. 60.  [TRANSFER OF RETIREMENT FUND MEMBERSHIP FOR 
 26.7   TECHNICAL COLLEGE EMPLOYEES; ELECTION TO RETAIN RETIREMENT FUND 
 26.8   MEMBERSHIP.] 
 26.9      A person who is employed by a technical college or by the 
 26.10  technical college system on June 30, 1995, and who is 
 26.11  transferred to state employment shall remain a member of the 
 26.12  public employees retirement association or the Minneapolis 
 26.13  employees retirement fund, whichever applies, unless the person 
 26.14  affirmatively elects, in writing, retirement coverage by the 
 26.15  general state employees retirement plan of the Minnesota state 
 26.16  retirement system.  The following provisions govern the election 
 26.17  of a transfer or the retention of retirement benefit coverage:  
 26.18     (1) For a person who desires to transfer benefit coverage, 
 26.19  the affirmative written election must be made within 120 days of 
 26.20  the transfer of the employee to state employment.  
 26.21     (2) On behalf of transferred employees who retain 
 26.22  retirement benefit coverage with the pretransfer retirement 
 26.23  plan, the board shall make the applicable employer contributions 
 26.24  to the public employees retirement association under Minnesota 
 26.25  Statutes, section 353.27, subdivisions 3 and 3a, or the same 
 26.26  percentage of covered payroll employer contribution to the 
 26.27  Minneapolis employees retirement fund that special school 
 26.28  district No. 1 is required to make for that school year under 
 26.29  Minnesota Statutes, section 422A.101, subdivision 2.  
 26.30     (3) An employee who makes a retirement benefit coverage 
 26.31  transfer election under this section may revoke that election at 
 26.32  any time within the first six months after the person becomes a 
 26.33  state employee.  Once an employee revokes the retirement benefit 
 26.34  coverage transfer election, the employee may not make another 
 26.35  election.  If the initial retirement benefit coverage transfer 
 26.36  election is revoked, all retirement contributions made by or on 
 27.1   behalf of the employee revoking a prior election must be 
 27.2   transferred to the applicable retirement plan as though they 
 27.3   were erroneous deductions or contributions, plus monthly 
 27.4   interest at an annual rate of 8.5 percent, compounded monthly, 
 27.5   and the balance remaining between any contribution amount 
 27.6   transferred and the amount of contributions that otherwise would 
 27.7   have been due are payable in the applicable proportions by the 
 27.8   revoking employee and the board, plus monthly interest at an 
 27.9   annual rate of 8.5 percent, compounded monthly.  
 27.10     (4) The executive directors of the Minnesota state 
 27.11  retirement system, the public employees retirement association, 
 27.12  and the Minneapolis employees retirement fund, and the 
 27.13  chancellor of the higher education system, shall confer and 
 27.14  jointly adopt appropriate procedures for making the retirement 
 27.15  benefit coverage transfer elections under this section.  
 27.16     (5) The executive directors of the public employees 
 27.17  retirement association, the Minnesota state retirement system, 
 27.18  and the Minneapolis employees retirement fund, whichever 
 27.19  applies, shall, upon request, provide appropriate benefit 
 27.20  counseling to applicable affected employees on the effect of 
 27.21  electing retirement benefit coverage by the general state 
 27.22  employees retirement plan of the Minnesota state retirement 
 27.23  system. 
 27.24     Sec. 61.  [STATUTORY DOWNSIZING; BOARD RECOMMENDATIONS.] 
 27.25     By January 1, 1996, the board of trustees of the Minnesota 
 27.26  state colleges and universities and the board of regents of the 
 27.27  University of Minnesota shall provide the education committees 
 27.28  of the legislature with recommendations to reduce the number of 
 27.29  statutory sections relating to higher education, including, but 
 27.30  not limited to, recommendations regarding statutory sections 
 27.31  that could be incorporated in board policies or procedures, and 
 27.32  regarding statutory sections that are obsolete. 
 27.33     Sec. 62.  [EARLY SEPARATION INCENTIVES.] 
 27.34     Subdivision 1.  [EMPLOYER PARTICIPATION; HIGHER EDUCATION 
 27.35  AGENCIES.] (a) In order to minimize the disruptive effects of 
 27.36  layoffs or reorganization attributable to the merger of the 
 28.1   state universities, community colleges, and technical colleges, 
 28.2   and the restructuring of the higher education coordinating 
 28.3   board, employees of the higher education coordinating board, the 
 28.4   state university, community college, and technical college 
 28.5   systems, and employees of local school districts, joint 
 28.6   technical districts, and intermediate districts assigned to a 
 28.7   technical college position, who are employed in positions that 
 28.8   are to be eliminated in the merger and restructuring, as 
 28.9   certified by the chancellor of the higher education board or the 
 28.10  executive director of the higher education coordinating board, 
 28.11  are entitled to elect an early separation incentive set forth in 
 28.12  subdivision 3. 
 28.13     (b) The higher education board and the higher education 
 28.14  coordinating board must determine those specific positions to be 
 28.15  permanently eliminated as part of the merger or restructuring 
 28.16  and identify the employees who may elect one of the early 
 28.17  separation incentives established by this section. 
 28.18     Subd. 2.  [ELIGIBILITY.] A person employed by the employing 
 28.19  units identified in subdivision 1 is eligible to elect the 
 28.20  incentive if the person: 
 28.21     (1) is an employee of the higher education coordinating 
 28.22  board, a state university, community college, or technical 
 28.23  college, or an administrative employee of a local school 
 28.24  district, joint technical district and intermediate district 
 28.25  assigned to a technical college position whose position is to be 
 28.26  eliminated; 
 28.27     (2) is at least age 55 but is not yet age 65; 
 28.28     (3) is employed in a permanent position and in active work 
 28.29  status at the time the incentive is elected; 
 28.30     (4) upon retirement, termination, or separation is 
 28.31  immediately eligible for a retirement annuity from a defined 
 28.32  benefit Minnesota public employee pension plan or a distribution 
 28.33  from a defined contribution Minnesota public employee pension 
 28.34  plan; 
 28.35     (5) retires, separates, or is terminated from an eligible 
 28.36  position after June 30, 1994, but before July 1, 1996; and 
 29.1      (6) has been certified by the chancellor of the higher 
 29.2   education board or the executive director of the higher 
 29.3   education coordinating board as eligible to elect an early 
 29.4   separation incentive. 
 29.5      Subd. 3.  [INCENTIVES.] (a) Eligible employees may elect 
 29.6   one of the following incentives but may not elect both.  
 29.7      (b) Retirement under this section means permanent 
 29.8   separation or termination from employment with or under the 
 29.9   control of the higher education board, the higher education 
 29.10  coordinating board, or the higher education systems to be merged.
 29.11     (c) Employees who separate, terminate, or retire with the 
 29.12  early retirement incentive under paragraph (e) may not be 
 29.13  rehired by the state in any employment position under the 
 29.14  control of the higher education board or the higher education 
 29.15  coordinating board. 
 29.16     (d) An eligible employee who receives a termination notice 
 29.17  after July 1, 1994, may elect to take a six-month retraining 
 29.18  leave in order to complete a course of study that is approved by 
 29.19  the higher education board or the higher education coordinating 
 29.20  board and which is designed to prepare the employee to assume a 
 29.21  faculty position at a state university, community college, or 
 29.22  technical college.  The retraining leave must be at the full 
 29.23  salary level that the person received immediately before the 
 29.24  termination notice, including fringe benefits.  The leave must 
 29.25  be completed no later than June 30, 1996.  Employees who seek to 
 29.26  return to teaching must satisfy the qualifications established 
 29.27  by applicable collective bargaining agreements.  Any subsequent 
 29.28  faculty appointments must be in accordance with collective 
 29.29  bargaining agreements and policies of the higher education 
 29.30  board.  The individual's pretermination notice employment ceases 
 29.31  at the conclusion of the retraining leave.  Individual employee 
 29.32  eligibility for severance payments must be made in accordance 
 29.33  with the policies of the employing unit in effect at the time 
 29.34  the incentive was elected.  Notice of election of this incentive 
 29.35  must be made before April 1, 1996, on forms prescribed by the 
 29.36  higher education board. 
 30.1      (e) An eligible employee may elect the following instead of 
 30.2   the incentive in paragraph (d): 
 30.3      (1) state-paid hospital, medical, and dental insurance to 
 30.4   age 65.  An employee who retires, is terminated, or is separated 
 30.5   is eligible for single or dependent insurance coverages, 
 30.6   whichever applies, and any employer payments to which the person 
 30.7   was entitled immediately before retirement, termination, or 
 30.8   separation subject to any changes in coverage and employer and 
 30.9   employee payments through collective bargaining or personnel 
 30.10  plans in positions equivalent to the position from which the 
 30.11  employee retired, terminated, or separated.  The employee is not 
 30.12  eligible for employer-paid life insurance.  If the employee is 
 30.13  not yet age 65 at the time of retirement or separation, the 
 30.14  employee is eligible for employer-paid insurance under the 
 30.15  provisions of a personnel plan and has at least as many months 
 30.16  service with the current employer and as the number of months 
 30.17  the individual is under age 65 at the time of retirement; and 
 30.18     (2) if the eligible employee has at least 15 years of 
 30.19  combined service credit in a Minnesota public pension plan, a 
 30.20  one-time opportunity to purchase up to two years of service 
 30.21  credit in or to make not more than two years of additional 
 30.22  member contributions to the public pension plan that the 
 30.23  employee is a member of at the time of retirement or separation 
 30.24  as follows: 
 30.25     (i) Eligible employees may have the additional payment made 
 30.26  on the basis of the employee's base salary in the year of 
 30.27  separation as denoted in the salary schedule in the applicable 
 30.28  employer personnel policy and at the rate and in the manner 
 30.29  specified in section 352.04, 353.27, 354.42, or 354A.12, 
 30.30  whichever applies.  The employee payment must include interest 
 30.31  at the rate of 8.5 percent.  The employer shall make the 
 30.32  required employer contribution and employer additional 
 30.33  contribution to the retirement fund as specified in section 
 30.34  352.04, 353.27, 354.42, or 354A.12, whichever applies for an 
 30.35  employee who elects this option.  Both the required employee and 
 30.36  employer payments must be made to the fund before the employee's 
 31.1   date of retirement or separation, whichever is earlier. 
 31.2      (ii) Defined contribution plan members in plans established 
 31.3   by chapter 352D or 354B must have additional employee and 
 31.4   employer contributions made on the basis of the employee's base 
 31.5   salary in the year of retirement as denoted in the salary 
 31.6   schedule in the applicable employer personnel policy and at the 
 31.7   rate and in the manner specified in section 352D.04, subdivision 
 31.8   2, or 354B.04, as applicable.  The additional contributions must 
 31.9   be made before the employee's date of retirement or separation, 
 31.10  whichever is earlier. 
 31.11     Sec. 63.  [REVISOR INSTRUCTION.] 
 31.12     (a) In the next and subsequent editions of Minnesota 
 31.13  Statutes, the revisor shall renumber each section in column A 
 31.14  with the corresponding number in column B.  
 31.15            COLUMN A                    COLUMN B
 31.16            136.31                      136F.90
 31.17            136.31, subd. 7             136F.90, subd. 6
 31.18            136.32                      136F.91
 31.19            136.33                      136F.92
 31.20            136.34                      136F.93
 31.21            136.35                      136F.94
 31.22            136.36                      136F.95
 31.23            136.37                      136F.96
 31.24            136.38                      136F.97
 31.25            136.41, subd. 8             136F.98, subd. 1
 31.26            136.41, subd. 9             136F.98, subd. 2
 31.27            136.41, subd. 10            136F.98, subd. 3
 31.28            136E.01                     136F.02
 31.29            136E.02                     136F.03
 31.30            136E.021                    136F.04
 31.31            136E.03                     136F.05
 31.32            136E.04, subds 1 and 3      136F.06
 31.33            136E.04, subd. 7            136F.20
 31.34            136E.04, subd. 8            136F.47
 31.35            136E.05                     136F.52
 31.36            136E.31                     136F.41
 32.1             136E.525                    136F.22
 32.2             136E.692                    136F.66
 32.3      (b) In the next and subsequent editions of Minnesota 
 32.4   Statutes, the revisor shall correct all cross-references to 
 32.5   sections renumbered, recodified, or repealed in sections 1 to 64.
 32.6      Sec. 64.  [REPEALER.] 
 32.7      Minnesota Statutes 1994, sections 15.38, subdivision 4; 
 32.8   136.01; 136.015; 136.017; 136.02; 136.03; 136.031; 136.036; 
 32.9   136.045; 136.065; 136.07; 136.09; 136.10; 136.11; 136.111; 
 32.10  136.12; 136.13; 136.14; 136.141; 136.142; 136.143; 136.144; 
 32.11  136.145; 136.146; 136.147; 136.17; 136.171; 136.172; 136.18; 
 32.12  136.19; 136.20; 136.21; 136.22; 136.232; 136.24; 136.25; 
 32.13  136.261; 136.27; 136.31; 136.311; 136.32; 136.33; 136.34; 
 32.14  136.35; 136.36; 136.37; 136.38; 136.40; 136.41; 136.42; 136.43; 
 32.15  136.44; 136.45; 136.46; 136.47; 136.48; 136.49; 136.50; 136.501; 
 32.16  136.502; 136.503; 136.504; 136.505; 136.506; 136.507; 136.55; 
 32.17  136.56; 136.57; 136.58; 136.60; 136.6011; 136.602; 136.603; 
 32.18  136.61; 136.62; 136.621; 136.622; 136.63; 136.65; 136.651; 
 32.19  136.653; 136.67; 136.70; 136.71; 136.72; 136.88; 136.90; 
 32.20  136C.01; 136C.02; 136C.03; 136C.04; 136C.041; 136C.042; 
 32.21  136C.043; 136C.044; 136C.05; 136C.06; 136C.07; 136C.075; 
 32.22  136C.08; 136C.13; 136C.15; 136C.17; 136C.31; 136C.34; 136C.41; 
 32.23  136C.411; 136C.43; 136C.44; 136C.50; 136C.51; 136C.60; 136C.61; 
 32.24  136C.62; 136C.63; 136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 
 32.25  136C.69; 136C.70; 136C.71; 136C.75; 136E.04, subdivisions 2, 4, 
 32.26  5, and 6; 136E.395; and Laws 1994, chapter 532, article 6, 
 32.27  section 12, paragraph (a), are repealed. 
 32.28     Sec. 65.  [EFFECTIVE DATE.] 
 32.29     Sections 1 to 64 are effective July 1, 1995.