1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, the board of trustees of the 
  1.5             Minnesota state colleges and universities, and the 
  1.6             board of regents of the University of Minnesota; 
  1.7             making technical changes related to the post-secondary 
  1.8             merger; redirecting University of Minnesota revenue; 
  1.9             extending survivor education benefits; amending 
  1.10            Minnesota Statutes 1994, sections 116L.03, subdivision 
  1.11            1; 169.121, subdivision 10; 202A.19, subdivision 3; 
  1.12            and 204C.03, subdivision 2; Minnesota Statutes 1995 
  1.13            Supplement, sections 116L.03, subdivision 2; 256.969, 
  1.14            subdivision 9; and 297A.25, subdivision 11; Laws 1994, 
  1.15            chapter 643, section 69, subdivision 1; Laws 1995, 
  1.16            chapter 212, article 1, section 3, subdivision 2; 
  1.17            proposing coding for new law in Minnesota Statutes, 
  1.18            chapter 256; repealing Minnesota Statutes 1995 
  1.19            Supplement, section 16A.125, subdivision 6a; Minnesota 
  1.20            Rules, parts 4800.8100, 4800.8200, 4800.8300, 
  1.21            4800.8400, 4830.6500, 4830.6510, 4830.6520, 4830.6600, 
  1.22            4830.6610, 4830.6620, 4830.8510, 4830.8520, 4830.8530, 
  1.23            4830.8535, 4830.8540, 4830.8550, 4830.8570, and 
  1.24            4830.8575. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.27     The sums in the columns headed "APPROPRIATIONS" are 
  1.28  appropriated from the general fund, or another named fund, to 
  1.29  the agencies and for the purposes specified to be available for 
  1.30  the fiscal years indicated for each purpose. 
  1.31                          SUMMARY BY FUND
  1.32                            1996          1997           TOTAL
  1.33  General            $      -0-     $   16,000,000 $   16,000,000
  1.34                   SUMMARY BY AGENCY - ALL FUNDS
  1.35                            1996          1997           TOTAL
  2.1   Higher Education Services
  2.2   Office                    -0-          1,700,000      1,700,000
  2.3   Board of Trustees of the
  2.4   Minnesota State Colleges
  2.5   and Universities          -0-          5,300,000      5,300,000
  2.6   Board of Regents of the University
  2.7   of Minnesota              -0-          9,000,000      9,000,000
  2.8                                              APPROPRIATIONS 
  2.9                                          Available for the Year 
  2.10                                             Ending June 30 
  2.11                                            1996         1997 
  2.12  Sec. 2.  HIGHER EDUCATION 
  2.13  SERVICES OFFICE                    $      -0-     $    1,700,000 
  2.14  The amounts that may be spent from this 
  2.15  appropriation for each purpose are as 
  2.16  follows: 
  2.17  (a) State Grants            
  2.18         -0-          1,500,000
  2.19  This appropriation contains money to 
  2.20  set the living and miscellaneous 
  2.21  expense at $4,255 in the second year. 
  2.22  By October 1, 1996, the higher 
  2.23  education services office shall 
  2.24  transfer any projected surplus in the 
  2.25  state grant appropriation to the state 
  2.26  work study program to be added to the 
  2.27  fiscal year 1997 appropriation in Laws 
  2.28  1995, chapter 212, article 1, section 
  2.29  2, subdivision 4. 
  2.30  (b) Statewide On-line Library 
  2.31  Information System Planning     
  2.32         -0-            150,000
  2.33  The higher education services office 
  2.34  shall manage and coordinate a process 
  2.35  to develop a statewide, on-line 
  2.36  information system for libraries, and 
  2.37  determine the benefits and functional 
  2.38  requirements of automated, statewide 
  2.39  linkages.  The process, reports, plans, 
  2.40  and requests for proposals shall be 
  2.41  subject to the review and 
  2.42  recommendation of the library planning 
  2.43  task force.  The higher education 
  2.44  services office shall coordinate with 
  2.45  the University of Minnesota, the 
  2.46  Minnesota state colleges and 
  2.47  universities, the Minnesota education 
  2.48  telecommunications council, the 
  2.49  government information access council, 
  2.50  the MINITEX advisory committee, the 
  2.51  advisory council of the office of 
  2.52  library development and services in the 
  2.53  department of children, families, and 
  2.54  learning, and the information policy 
  2.55  office in the department of 
  2.56  administration. 
  2.57  The statewide, on-line information 
  2.58  system must meet the following criteria:
  3.1   (1) be open to all University of 
  3.2   Minnesota, Minnesota state colleges and 
  3.3   universities, state government, public, 
  3.4   school, and private college libraries; 
  3.5   (2) have a formal governing structure 
  3.6   that includes the University of 
  3.7   Minnesota, Minnesota state colleges and 
  3.8   universities, and representatives of 
  3.9   participating state government, public, 
  3.10  school, private college, and other 
  3.11  libraries; 
  3.12  (3) provide for the broadest possible 
  3.13  sharing of information and cooperative 
  3.14  collection management; 
  3.15  (4) provide the people of Minnesota 
  3.16  with direct access to library catalogs 
  3.17  and information resources; 
  3.18  (5) allow libraries to retain local 
  3.19  options for determining when to begin 
  3.20  participating in the statewide systems 
  3.21  and for maintaining circulation 
  3.22  policies and practices; and 
  3.23  (6) have a plan for evaluation of 
  3.24  costs, access, and outcomes. 
  3.25  By January 15, 1997, the higher 
  3.26  education services office shall 
  3.27  recommend to the chairs of the higher 
  3.28  education committees of the legislature 
  3.29  a plan for creating a statewide, 
  3.30  on-line information system.  The plan, 
  3.31  subject to the prior review and 
  3.32  recommendation by the library planning 
  3.33  task force, shall include a proposed 
  3.34  implementation timeline, technical 
  3.35  standards, a draft request for 
  3.36  proposal, a governance structure, and a 
  3.37  budget. 
  3.38  The higher education services office 
  3.39  shall develop the final request for 
  3.40  proposal, subject to the prior review 
  3.41  and recommendation by the library 
  3.42  planning task force, for a statewide, 
  3.43  on-line information system no later 
  3.44  than June 30, 1997. 
  3.45  Money appropriated under this paragraph 
  3.46  may not be used for the office's 
  3.47  indirect or operating costs. 
  3.48  (c) Loan Repayment Assistance
  3.49         -0-             50,000 
  3.50  This appropriation is for the loan 
  3.51  repayment assistance program of 
  3.52  Minnesota to reimburse graduates of 
  3.53  Minnesota law schools working in 
  3.54  Minnesota communities who are eligible 
  3.55  under the criteria for loan repayment 
  3.56  assistance for institutional law school 
  3.57  debt.  The eligibility criteria must 
  3.58  include the following:  (1) recipient's 
  3.59  annual household income is $30,000 or 
  3.60  less; and (2) recipients are providing 
  4.1   legal services full time for 
  4.2   economically disadvantaged persons for 
  4.3   a nonprofit agency as defined by 
  4.4   sections 501(c)(3), 501(c)(4), or 
  4.5   501(c)(5) of the Internal Revenue Code 
  4.6   of 1986, or Native American tribal 
  4.7   governments.  The money may be released 
  4.8   to the program only in amounts that 
  4.9   match contributions from the private 
  4.10  sector. 
  4.11  Sec. 3.  BOARD OF TRUSTEES OF THE 
  4.12  MINNESOTA STATE COLLEGES 
  4.13  AND UNIVERSITIES                         -0-          4,900,000
  4.14  The amounts that may be spent from this 
  4.15  appropriation for each purpose are as 
  4.16  follows: 
  4.17  (a) Applied Research Center 
  4.18         -0-             50,000
  4.19  This appropriation is for Bemidji State 
  4.20  University to establish an applied 
  4.21  research, design, and development 
  4.22  center.  The center will contract with 
  4.23  Minnesota businesses and industries to 
  4.24  conduct applied research.  This 
  4.25  appropriation is nonrecurring. 
  4.26  (b) Instructional Technology Grants 
  4.27         -0-          4,525,000
  4.28  This appropriation is to develop an 
  4.29  electronic delivery system by awarding 
  4.30  competitive grants to campuses or 
  4.31  campus faculty for acquisition, 
  4.32  improvement, and innovative 
  4.33  applications of technology.  Up to 
  4.34  $300,000 of this appropriation may be 
  4.35  spent for central office administrative 
  4.36  costs.  The grants must be awarded for 
  4.37  proposals that are student centered and 
  4.38  directly affect classroom instruction, 
  4.39  advising, and other services that 
  4.40  enhance student success.  Priority 
  4.41  shall be placed on grant projects for 
  4.42  instructional technology.  Grants may 
  4.43  be for any amount up to $250,000 and 
  4.44  shall be awarded through a process 
  4.45  developed by the board.  The board 
  4.46  shall set up a review panel to judge 
  4.47  the proposals.  The panel shall include 
  4.48  faculty, administration, students, and 
  4.49  at least one member of the Minnesota 
  4.50  high technology council. 
  4.51  The legislature expects that the system 
  4.52  office will complete at least the 
  4.53  following tasks in the development of 
  4.54  the electronic delivery system:  (1) 
  4.55  request proposals from campuses and 
  4.56  award grants; (2) identify systemwide 
  4.57  network defects; and (3) promote 
  4.58  public/private ventures.  The system 
  4.59  shall report the results of use of this 
  4.60  appropriation in the 1997-1999 biennial 
  4.61  budget document. 
  5.1   (c) Regional Farm Business 
  5.2   Management Programs 
  5.3          -0-            150,000
  5.4   This appropriation is to update 
  5.5   electronic capability for the 
  5.6   instructors in farm business management 
  5.7   programs.  Each of the six regional 
  5.8   farm business management programs shall 
  5.9   receive $25,000 of this appropriation. 
  5.10  (d) Work Skills Upgrade Program 
  5.11         -0-            175,000
  5.12  The chancellor of the Minnesota state 
  5.13  colleges and universities shall 
  5.14  designate at least one technical 
  5.15  college or consolidated 
  5.16  community-technical college to be a 
  5.17  demonstration site for a work skills 
  5.18  upgrade program.  The program shall 
  5.19  offer learning experiences that have 
  5.20  broad application for Minnesotans 
  5.21  wishing to improve their employability 
  5.22  or otherwise keep current in skills 
  5.23  necessary to succeed in the changing 
  5.24  economy.  The program shall be offered 
  5.25  at low cost to the student.  The 
  5.26  chancellor shall report to the 
  5.27  education committees of the 
  5.28  legislature, in the biennial budget 
  5.29  document, on the progress of the 
  5.30  demonstration program and potential for 
  5.31  expanding the program to other campuses.
  5.32  The chancellor shall establish an 
  5.33  advisory group which includes the 
  5.34  commissioner of economic security or 
  5.35  the commissioner's designee; the 
  5.36  commissioner of children, families, and 
  5.37  learning or the commissioner's 
  5.38  designee; a representative of labor; a 
  5.39  representative of business; a faculty 
  5.40  member; and a student. 
  5.41  The advisory group shall: 
  5.42  (1) identify the outcomes of each 
  5.43  learning experience offered under the 
  5.44  program; 
  5.45  (2) establish methods to document that 
  5.46  students have achieved the outcomes 
  5.47  identified for each learning 
  5.48  experience; 
  5.49  (3) identify and seek nonstate money to 
  5.50  supplement the appropriation; and 
  5.51  (4) identify mechanisms whereby 
  5.52  students and employers who benefit from 
  5.53  the program are required to repay some 
  5.54  portion of the benefit. 
  5.55  "Learning experience" means a short 
  5.56  course offered at an on- or off-campus 
  5.57  site or through distance education; 
  5.58  computer-based instruction; 
  5.59  videocassettes; and other alternative 
  6.1   instructional technologies. 
  6.2   (e) Metro State University Planning 
  6.3   By February 15, 1997, the system office 
  6.4   and campuses of the Minnesota state 
  6.5   colleges and universities shall submit 
  6.6   to the legislature a master academic 
  6.7   plan for the metropolitan area that 
  6.8   defines the current and future missions 
  6.9   and plans of the metro area colleges 
  6.10  and universities.  Within the fiscal 
  6.11  realities of the state, the plan must 
  6.12  consider short- and long-term 
  6.13  demographic and enrollment projections, 
  6.14  physical plant capacity and needs, and 
  6.15  coordination and duplication of program 
  6.16  offerings.  The system office shall 
  6.17  consult with the University of 
  6.18  Minnesota during the planning process. 
  6.19  The plan must be submitted to the board 
  6.20  of trustees for approval before 
  6.21  submission for legislative approval. 
  6.22  Sec. 4.  BOARD OF REGENTS OF THE 
  6.23  UNIVERSITY OF MINNESOTA                  -0-          8,600,000
  6.24  The amounts that may be spent from this 
  6.25  appropriation for each purpose are as 
  6.26  follows: 
  6.27  (a) Academic Health Center 
  6.28  (1) Information Technology 
  6.29         -0-          2,000,000
  6.30  This appropriation is for a data and 
  6.31  video network and equipment to connect 
  6.32  academic health center faculty and 
  6.33  students on the St. Paul, Duluth, and 
  6.34  Minneapolis campuses and at 
  6.35  community-based sites. 
  6.36  (2) Restructuring
  6.37         -0-          6,600,000
  6.38  This appropriation is for the academic 
  6.39  health center for the development and 
  6.40  purchase of new information technology 
  6.41  to improve the delivery of health care 
  6.42  education programs and to redesign the 
  6.43  curriculum and underwrite the 
  6.44  development of new or expanded programs 
  6.45  in health care education.  Where 
  6.46  necessary, this money may also be used 
  6.47  to cover the costs of downsizing 
  6.48  programs and retraining faculty and 
  6.49  staff, but may not be used to finance 
  6.50  the integration of the University 
  6.51  hospital with Fairview Health Systems. 
  6.52  The legislature requests the faculty, 
  6.53  administration, and board of regents of 
  6.54  the University to pursue an internal 
  6.55  process leading to changes in the 
  6.56  tenure code applicable to the academic 
  6.57  health center, without infringing on 
  6.58  academic freedom. 
  6.59  The commissioner of finance shall place 
  7.1   this appropriation in a performance 
  7.2   incentive account. 
  7.3   The commissioner shall release 90 
  7.4   percent of this money to the board of 
  7.5   regents when the board of regents 
  7.6   certifies that changes have been made 
  7.7   in the personnel policies for clinical 
  7.8   faculty with regular appointments in 
  7.9   the academic health center which enable 
  7.10  the University to alter clinical 
  7.11  compensation and base salary, and 
  7.12  provide a streamlined due process 
  7.13  procedure for separation under the 
  7.14  provost of the academic health center, 
  7.15  without infringing on academic freedom. 
  7.16  The commissioner shall release ten 
  7.17  percent of this money when the 
  7.18  University demonstrates that it is 
  7.19  progressing in its development of the 
  7.20  school of medicine at the University of 
  7.21  Minnesota Duluth as a rural health 
  7.22  center.  This progress shall be 
  7.23  measured by (1) changes in the 
  7.24  educational program to expand the 
  7.25  coordination of training for rural 
  7.26  nurse practitioner, pharmacy, physician 
  7.27  assistant, and medical students; and 
  7.28  (2) development of electronic linkages 
  7.29  between distant sites to provide video 
  7.30  conferences, transmission of images, 
  7.31  and transfer of information. 
  7.32  Sec. 5.  BOARD OF TRUSTEES OF THE 
  7.33  MINNESOTA STATE COLLEGES AND UNIVERSITIES 
  7.34  AND THE BOARD OF REGENTS OF THE  
  7.35  UNIVERSITY OF MINNESOTA                  -0-            800,000 
  7.36  $400,000 of this appropriation is to 
  7.37  the board of trustees of the Minnesota 
  7.38  state colleges and universities and 
  7.39  $400,000 is to the board of regents of 
  7.40  the University of Minnesota to enter 
  7.41  into a joint project for distance 
  7.42  learning development. 
  7.43  The systems shall use the appropriation 
  7.44  for the following functions: 
  7.45  (1) to acquire, develop, and distribute 
  7.46  high quality distance learning 
  7.47  resources and courseware needed to meet 
  7.48  identified distance learning needs; 
  7.49  (2) to award grants to faculty to 
  7.50  develop technology-based courseware for 
  7.51  a variety of delivery modes including 
  7.52  multimedia and the Internet; 
  7.53  (3) to decide which courses and degrees 
  7.54  shall be offered by each institution in 
  7.55  order to eliminate overlap and promote 
  7.56  efficient use of resources; and 
  7.57  (4) to develop strategies to market and 
  7.58  distribute distance learning proposals 
  7.59  within and outside Minnesota, including 
  7.60  possible collaborative relationships 
  7.61  with private organizations. 
  8.1   Staffing for the joint project shall be 
  8.2   provided by the member systems. 
  8.3   The higher education systems shall 
  8.4   report in the 1997-1999 biennial budget 
  8.5   document on progress in carrying out 
  8.6   the functions specified and any 
  8.7   organizational or governance structure 
  8.8   changes needed for the joint project to 
  8.9   most effectively carry out its 
  8.10  functions. 
  8.11     Sec. 6.  Minnesota Statutes 1994, section 116L.03, 
  8.12  subdivision 1, is amended to read: 
  8.13     Subdivision 1.  [MEMBERS.] The partnership shall be 
  8.14  governed by a board of 12 11 directors.  
  8.15     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
  8.16  116L.03, subdivision 2, is amended to read: 
  8.17     Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
  8.18  partnership board consists of:  eight members appointed by the 
  8.19  governor, the commissioner of trade and economic development, 
  8.20  the commissioner of economic security, the chancellor of the 
  8.21  technical college system, and the chancellor, or the 
  8.22  chancellor's designee, of the board of trustees of the Minnesota 
  8.23  state colleges and universities.  If the chancellor makes a 
  8.24  designation under this subdivision, the designee must have 
  8.25  experience in technical education.  
  8.26     Sec. 8.  Minnesota Statutes 1994, section 169.121, 
  8.27  subdivision 10, is amended to read: 
  8.28     Subd. 10.  [RESEARCH PROGRAMS.] No person is guilty of a 
  8.29  violation of this section committed while participating in a 
  8.30  research or demonstration project conducted by the Minnesota 
  8.31  highway safety center created pursuant to section 136.147.  This 
  8.32  subdivision applies only to conduct occurring while operating a 
  8.33  state-owned vehicle under the supervision of personnel of the 
  8.34  center on the grounds of the center.  
  8.35     Sec. 9.  Minnesota Statutes 1994, section 202A.19, 
  8.36  subdivision 3, is amended to read: 
  8.37     Subd. 3.  The University of Minnesota may not schedule an 
  8.38  event which will take place after 6:00 p.m. on the day of a 
  8.39  major political party precinct caucus unless permission to do so 
  8.40  has been received from the board of regents.  No Minnesota state 
  9.1   college or university may schedule an event which will take 
  9.2   place after 6:00 p.m. on the day of a major political party 
  9.3   precinct caucus unless permission to do so has been received 
  9.4   from the state university board of trustees of the Minnesota 
  9.5   state colleges and universities.  No community college may 
  9.6   schedule an event which will take place after 6:00 p.m. on the 
  9.7   day of a major political party precinct caucus unless permission 
  9.8   to do so has been received from the state board for community 
  9.9   colleges. 
  9.10     Sec. 10.  Minnesota Statutes 1994, section 204C.03, 
  9.11  subdivision 2, is amended to read: 
  9.12     Subd. 2.  [STATE COLLEGES AND UNIVERSITIES AND COMMUNITY 
  9.13  COLLEGES.] Except for regularly scheduled classes, no Minnesota 
  9.14  state college or university or state community college shall 
  9.15  schedule an event between 6:00 p.m. and 8:00 p.m. on the day 
  9.16  that an election is held in any political subdivision in which 
  9.17  the university or college is located.  
  9.18     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
  9.19  256.969, subdivision 9, is amended to read: 
  9.20     Subd. 9.  [DISPROPORTIONATE NUMBERS OF LOW-INCOME PATIENTS 
  9.21  SERVED.] (a) For admissions occurring on or after October 1, 
  9.22  1992, through December 31, 1992, the medical assistance 
  9.23  disproportionate population adjustment shall comply with federal 
  9.24  law and shall be paid to a hospital, excluding regional 
  9.25  treatment centers and facilities of the federal Indian Health 
  9.26  Service, with a medical assistance inpatient utilization rate in 
  9.27  excess of the arithmetic mean.  The adjustment must be 
  9.28  determined as follows: 
  9.29     (1) for a hospital with a medical assistance inpatient 
  9.30  utilization rate above the arithmetic mean for all hospitals 
  9.31  excluding regional treatment centers and facilities of the 
  9.32  federal Indian Health Service but less than or equal to one 
  9.33  standard deviation above the mean, the adjustment must be 
  9.34  determined by multiplying the total of the operating and 
  9.35  property payment rates by the difference between the hospital's 
  9.36  actual medical assistance inpatient utilization rate and the 
 10.1   arithmetic mean for all hospitals excluding regional treatment 
 10.2   centers and facilities of the federal Indian Health Service; and 
 10.3      (2) for a hospital with a medical assistance inpatient 
 10.4   utilization rate above one standard deviation above the mean, 
 10.5   the adjustment must be determined by multiplying the adjustment 
 10.6   that would be determined under clause (1) for that hospital by 
 10.7   1.1.  If federal matching funds are not available for all 
 10.8   adjustments under this subdivision, the commissioner shall 
 10.9   reduce payments on a pro rata basis so that all adjustments 
 10.10  qualify for federal match.  The commissioner may establish a 
 10.11  separate disproportionate population operating payment rate 
 10.12  adjustment under the general assistance medical care program.  
 10.13  For purposes of this subdivision medical assistance does not 
 10.14  include general assistance medical care.  The commissioner shall 
 10.15  report annually on the number of hospitals likely to receive the 
 10.16  adjustment authorized by this paragraph.  The commissioner shall 
 10.17  specifically report on the adjustments received by public 
 10.18  hospitals and public hospital corporations located in cities of 
 10.19  the first class. 
 10.20     (b) For admissions occurring on or after July 1, 1993, the 
 10.21  medical assistance disproportionate population adjustment shall 
 10.22  comply with federal law and shall be paid to a hospital, 
 10.23  excluding regional treatment centers and facilities of the 
 10.24  federal Indian Health Service, with a medical assistance 
 10.25  inpatient utilization rate in excess of the arithmetic mean.  
 10.26  The adjustment must be determined as follows: 
 10.27     (1) for a hospital with a medical assistance inpatient 
 10.28  utilization rate above the arithmetic mean for all hospitals 
 10.29  excluding regional treatment centers and facilities of the 
 10.30  federal Indian Health Service but less than or equal to one 
 10.31  standard deviation above the mean, the adjustment must be 
 10.32  determined by multiplying the total of the operating and 
 10.33  property payment rates by the difference between the hospital's 
 10.34  actual medical assistance inpatient utilization rate and the 
 10.35  arithmetic mean for all hospitals excluding regional treatment 
 10.36  centers and facilities of the federal Indian Health Service; 
 11.1      (2) for a hospital with a medical assistance inpatient 
 11.2   utilization rate above one standard deviation above the mean, 
 11.3   the adjustment must be determined by multiplying the adjustment 
 11.4   that would be determined under clause (1) for that hospital by 
 11.5   1.1.  The commissioner may establish a separate disproportionate 
 11.6   population operating payment rate adjustment under the general 
 11.7   assistance medical care program.  For purposes of this 
 11.8   subdivision, medical assistance does not include general 
 11.9   assistance medical care.  The commissioner shall report annually 
 11.10  on the number of hospitals likely to receive the adjustment 
 11.11  authorized by this paragraph.  The commissioner shall 
 11.12  specifically report on the adjustments received by public 
 11.13  hospitals and public hospital corporations located in cities of 
 11.14  the first class; and 
 11.15     (3) for a hospital that had medical assistance 
 11.16  fee-for-service payment volume during calendar year 1991 in 
 11.17  excess of 13 percent of total medical assistance fee-for-service 
 11.18  payment volume, a medical assistance disproportionate population 
 11.19  adjustment shall be paid in addition to any other 
 11.20  disproportionate payment due under this subdivision as follows:  
 11.21  $1,515,000 due on the 15th of each month after noon, beginning 
 11.22  July 15, 1995.  For a hospital that had medical assistance 
 11.23  fee-for-service payment volume during calendar year 1991 in 
 11.24  excess of eight percent of total medical assistance 
 11.25  fee-for-service payment volume and is was the primary hospital 
 11.26  affiliated with the University of Minnesota, a medical 
 11.27  assistance disproportionate population adjustment shall be paid 
 11.28  in addition to any other disproportionate payment due under this 
 11.29  subdivision as follows:  $505,000 due on the 15th of each month 
 11.30  after noon, beginning July 15, 1995. 
 11.31     (c) The commissioner shall adjust rates paid to a health 
 11.32  maintenance organization under contract with the commissioner to 
 11.33  reflect rate increases provided in paragraph (b), clauses (1) 
 11.34  and (2), on a nondiscounted hospital-specific basis but shall 
 11.35  not adjust those rates to reflect payments provided in clause 
 11.36  (3). 
 12.1      (d) If federal matching funds are not available for all 
 12.2   adjustments under paragraph (b), the commissioner shall reduce 
 12.3   payments under paragraph (b), clauses (1) and (2), on a pro rata 
 12.4   basis so that all adjustments under paragraph (b) qualify for 
 12.5   federal match. 
 12.6      (e) For purposes of this subdivision, medical assistance 
 12.7   does not include general assistance medical care.  
 12.8      Sec. 12.  [256.9692] [EFFECT OF INTEGRATION AGREEMENT ON 
 12.9   DIVISION OF COST.] 
 12.10     Beginning in the first calendar month after there is a 
 12.11  definitive integration agreement affecting the University of 
 12.12  Minnesota hospital and clinics and Fairview hospital and health 
 12.13  care services, Fairview hospital and health care services shall 
 12.14  pay the University of Minnesota $505,000 on the 15th of each 
 12.15  month, after receiving the state payment, provided that the 
 12.16  University of Minnesota has fulfilled the requirements of 
 12.17  section 256B.19, subdivision 1c. 
 12.18     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 12.19  297A.25, subdivision 11, is amended to read: 
 12.20     Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
 12.21  all sales, including sales in which title is retained by a 
 12.22  seller or a vendor or is assigned to a third party under an 
 12.23  installment sale or lease purchase agreement under section 
 12.24  465.71, of tangible personal property to, and all storage, use 
 12.25  or consumption of such property by, the United States and its 
 12.26  agencies and instrumentalities, the University of Minnesota, 
 12.27  state universities, community colleges, technical colleges, 
 12.28  state academies, the Minnesota center for arts education, and 
 12.29  school districts are exempt. 
 12.30     As used in this subdivision, "school districts" means 
 12.31  public school entities and districts of every kind and nature 
 12.32  organized under the laws of the state of Minnesota, including, 
 12.33  without limitation, school districts, intermediate school 
 12.34  districts, education districts, educational cooperative service 
 12.35  units, secondary vocational cooperative centers, special 
 12.36  education cooperatives, joint purchasing cooperatives, 
 13.1   telecommunication cooperatives, regional management information 
 13.2   centers, technical colleges, joint vocational technical 
 13.3   districts, and any instrumentality of a school district, as 
 13.4   defined in section 471.59. 
 13.5      Sales exempted by this subdivision include sales under 
 13.6   section 297A.01, subdivision 3, paragraph (f), but do not 
 13.7   include sales under section 297A.01, subdivision 3, paragraph 
 13.8   (j), clause (vii).  
 13.9      Sales to hospitals and nursing homes owned and operated by 
 13.10  political subdivisions of the state are exempt under this 
 13.11  subdivision.  
 13.12     The sales to and exclusively for the use of libraries of 
 13.13  books, periodicals, audio-visual materials and equipment, 
 13.14  photocopiers for use by the public, and all cataloguing and 
 13.15  circulation equipment, and cataloguing and circulation software 
 13.16  for library use are exempt under this subdivision.  For purposes 
 13.17  of this paragraph "libraries" means libraries as defined in 
 13.18  section 134.001, county law libraries under chapter 134A, the 
 13.19  state library under section 480.09, and the legislative 
 13.20  reference library. 
 13.21     Sales of supplies and equipment used in the operation of an 
 13.22  ambulance service owned and operated by a political subdivision 
 13.23  of the state are exempt under this subdivision provided that the 
 13.24  supplies and equipment are used in the course of providing 
 13.25  medical care.  Sales to a political subdivision of repair and 
 13.26  replacement parts for emergency rescue vehicles and fire trucks 
 13.27  and apparatus are exempt under this subdivision.  
 13.28     Sales to a political subdivision of machinery and 
 13.29  equipment, except for motor vehicles, used directly for mixed 
 13.30  municipal solid waste management services at a solid waste 
 13.31  disposal facility as defined in section 115A.03, subdivision 10, 
 13.32  are exempt under this subdivision.  
 13.33     Sales to political subdivisions of chore and homemaking 
 13.34  services to be provided to elderly or disabled individuals are 
 13.35  exempt. 
 13.36     Sales of telephone services to the department of 
 14.1   administration that are used to provide telecommunications 
 14.2   services through the intertechnologies revolving fund are exempt 
 14.3   under this subdivision. 
 14.4      This exemption shall not apply to building, construction or 
 14.5   reconstruction materials purchased by a contractor or a 
 14.6   subcontractor as a part of a lump-sum contract or similar type 
 14.7   of contract with a guaranteed maximum price covering both labor 
 14.8   and materials for use in the construction, alteration, or repair 
 14.9   of a building or facility.  This exemption does not apply to 
 14.10  construction materials purchased by tax exempt entities or their 
 14.11  contractors to be used in constructing buildings or facilities 
 14.12  which will not be used principally by the tax exempt entities. 
 14.13     This exemption does not apply to the leasing of a motor 
 14.14  vehicle as defined in section 297B.01, subdivision 5, except for 
 14.15  leases entered into by the United States or its agencies or 
 14.16  instrumentalities.  
 14.17     The tax imposed on sales to political subdivisions of the 
 14.18  state under this section applies to all political subdivisions 
 14.19  other than those explicitly exempted under this subdivision, 
 14.20  notwithstanding section 115A.69, subdivision 6, 116A.25, 
 14.21  360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
 14.22  469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
 14.23  to the contrary enacted before 1992. 
 14.24     Sales exempted by this subdivision include sales made to 
 14.25  other states or political subdivisions of other states, if the 
 14.26  sale would be exempt from taxation if it occurred in that state, 
 14.27  but do not include sales under section 297A.01, subdivision 3, 
 14.28  paragraphs (c) and (e). 
 14.29     Sec. 14.  Laws 1994, chapter 643, section 69, subdivision 
 14.30  1, is amended to read: 
 14.31     Subdivision 1.  [TASK FORCE MEMBERSHIP.] An 18-member A 
 14.32  22-member planning task force for library and information 
 14.33  services shall be established and shall be composed of:  three 
 14.34  representatives appointed by the chancellor of the higher 
 14.35  education board Minnesota state colleges and universities, one 
 14.36  of whom may be serving on the MINITEX advisory committee; two 
 15.1   representatives appointed by the president of the University of 
 15.2   Minnesota, one of whom may be serving on the MINITEX advisory 
 15.3   committee; one representative appointed by the president of the 
 15.4   Minnesota private college council; the director of MINITEX; one 
 15.5   representative appointed by the commissioner of finance; one 
 15.6   representative appointed by the commissioner of administration; 
 15.7   one representative appointed by the executive director of the 
 15.8   Minnesota higher education coordinating board services office; 
 15.9   the director of the office of library development and services; 
 15.10  five representatives of public libraries appointed by the 
 15.11  director of library development and services; two 
 15.12  representatives of elementary and secondary schools appointed by 
 15.13  the commissioner of education children, families, and learning; 
 15.14  and one representative four representatives appointed by the 
 15.15  governor who shall represent the private sector.  The executive 
 15.16  director of the Minnesota higher education coordinating 
 15.17  board services office shall confer with the other appointing 
 15.18  authorities to ensure that at least one-half of the task force 
 15.19  members are employed in occupations unrelated to library 
 15.20  science.  The executive director of the Minnesota higher 
 15.21  education coordinating board shall convene the first meeting of 
 15.22  the task force. 
 15.23     Sec. 15.  Laws 1995, chapter 212, article 1, section 3, 
 15.24  subdivision 2, is amended to read: 
 15.25  Subd. 2.  Instructional Expenditures 
 15.26  The legislature estimates that 
 15.27  instructional expenditures will be 
 15.28  $214,536,000 each year for the 
 15.29  technical colleges. 
 15.30  The legislature estimates that 
 15.31  instructional expenditures will be 
 15.32  $145,565,000 each year for community 
 15.33  colleges. 
 15.34  The legislature estimates that 
 15.35  instructional expenditures will be 
 15.36  $253,612,000 each year for state 
 15.37  universities. 
 15.38  During the biennium neither the board 
 15.39  nor campuses shall plan or develop 
 15.40  doctoral level programs or degrees 
 15.41  until after they have received the 
 15.42  recommendation of the house and senate 
 15.43  committees on education, finance, and 
 16.1   ways and means. 
 16.2   This appropriation includes continued 
 16.3   support of at least $400,000 each year 
 16.4   for the Mid-Tec and Heartland 
 16.5   Telecommunications Networks. 
 16.6   This appropriation includes $40,000 
 16.7   each year for American Indian 
 16.8   outreach.  The legislature anticipates 
 16.9   this money will assist the Fond Du Lac 
 16.10  campus to recruit, advise, and retain 
 16.11  American Indian students. 
 16.12  It is the intent of the legislature to 
 16.13  hold the Minnesota state colleges and 
 16.14  universities accountable for making 
 16.15  budgetary and policy decisions that 
 16.16  provide students with access to high 
 16.17  quality education and training 
 16.18  programs.  Significant and demonstrable 
 16.19  progress toward the goals in this 
 16.20  subdivision and in section 6, 
 16.21  subdivision 2, are expected in this 
 16.22  biennium for consideration in funding 
 16.23  decisions in the next supplemental 
 16.24  budget and in the 1998-1999 biennial 
 16.25  budget. 
 16.26  The commissioner of finance shall place 
 16.27  $5,000,000 of the second year 
 16.28  appropriation in a performance 
 16.29  incentive account.  The commissioner 
 16.30  shall release $1,000,000 of this amount 
 16.31  to the board of trustees each time that 
 16.32  it demonstrates that it has achieved 
 16.33  one of the following performance 
 16.34  measures has been achieved: 
 16.35  (1) increase the percentage of the 
 16.36  budget directed to instruction and 
 16.37  academic resources; 
 16.38  (2) increase the number of credits 
 16.39  issued through telecommunications 
 16.40  between fiscal year 1995 and fiscal 
 16.41  year 1996; 
 16.42  (3) increase the retention of new 
 16.43  entering freshman on state university 
 16.44  campuses who continue into the 
 16.45  sophomore year between fiscal year 1995 
 16.46  and fiscal year 1996 by at least two 
 16.47  percent.  The appropriation shall be 
 16.48  distributed released for distribution 
 16.49  to those campuses that achieve the 
 16.50  increase; 
 16.51  (4) increase the percentage of students 
 16.52  in two-year programs who graduate 
 16.53  within two years of admission, and the 
 16.54  percentage of students in four-year 
 16.55  programs who graduate within four years 
 16.56  of admission by at least two percent.  
 16.57  The appropriation shall be distributed 
 16.58  released for distribution to campuses 
 16.59  that achieve the increase; and 
 16.60  (5) increase in placement rates for 
 16.61  occupational programs and transfer 
 16.62  rates for academic programs for 
 17.1   community and technical colleges. 
 17.2   One-half of the appropriation for this 
 17.3   measure shall be released for placement 
 17.4   rate improvements, and one-half shall 
 17.5   be released for transfer rate 
 17.6   improvements.  
 17.7   The legislature expects the board of 
 17.8   trustees to demonstrate its commitment 
 17.9   to enhancing educational quality, 
 17.10  including high priority initiatives 
 17.11  that capitalize on opportunities 
 17.12  created by merger for:  joint programs 
 17.13  with the University of Minnesota for 
 17.14  faculty, staff, and administrative 
 17.15  development; enhanced opportunities for 
 17.16  students of color; and opportunities 
 17.17  for using technology to the advantage 
 17.18  of students and faculty. 
 17.19  The legislature further expects the 
 17.20  board of trustees to make difficult 
 17.21  choices in its allocations, based on 
 17.22  critical evaluations of its campuses 
 17.23  and programs, including actions to 
 17.24  address the 14 duplicate two-year 
 17.25  programs located within 35 miles of 
 17.26  each other, as identified by the 
 17.27  legislative auditor, for which no 
 17.28  action has yet been taken. 
 17.29  Each college and university shall 
 17.30  demonstrate to the board that, in the 
 17.31  face of severe budget constraints, it 
 17.32  has identified those programs and 
 17.33  functions that are central to the 
 17.34  mission of that campus and are most 
 17.35  critical to meeting student needs, and 
 17.36  that the campus has redirected 
 17.37  resources to those identified areas to 
 17.38  protect the core educational 
 17.39  enterprise.  Further, each campus shall 
 17.40  demonstrate that it has taken actions 
 17.41  to improve the productivity of faculty, 
 17.42  administrators, and staff. 
 17.43  The amounts for library access; Fond du 
 17.44  Lac American Indian student outreach; 
 17.45  incentives for co-located campuses; 
 17.46  increased instructional appropriations; 
 17.47  performance funding; instructional 
 17.48  equipment; conversion to semesters; 
 17.49  systemwide computer system development 
 17.50  for accounting, payroll, personnel, 
 17.51  procurement, and student records; staff 
 17.52  training for use of systems; staff 
 17.53  restructuring, separation payments, and 
 17.54  unemployment insurance; and development 
 17.55  of library collections and curriculum 
 17.56  at Metro State University are for these 
 17.57  purposes only and shall be 
 17.58  nonrecurring.  The amounts are 
 17.59  $8,741,000 in fiscal year 1996 and 
 17.60  $16,147,000 in fiscal year 1997. 
 17.61     Sec. 16.  [PUBLIC SAFETY OFFICER'S SURVIVOR BENEFITS; 
 17.62  EDUCATIONAL BENEFITS FOR CERTAIN SURVIVING CHILDREN.] 
 17.63     Each surviving child of a volunteer firefighter killed in 
 18.1   the line of duty before July 1, 1990, who was eligible to 
 18.2   receive educational benefits as of that date under Minnesota 
 18.3   Statutes, section 299A.45, but for whom educational certificates 
 18.4   were not issued by the department of public safety, shall be 
 18.5   eligible to receive an educational benefit award equal to the 
 18.6   amount the child would have been eligible to receive had the 
 18.7   certificates been issued in a timely manner. 
 18.8      The awards under this section are otherwise subject to 
 18.9   Minnesota Statutes, section 299A.45. 
 18.10     Sec. 17.  [REPEALER.] 
 18.11     (a) Minnesota Statutes 1995 Supplement, section 16A.125, 
 18.12  subdivision 6a, is repealed. 
 18.13     (b) Minnesota Rules, parts 4800.8100, 4800.8200, 4800.8300, 
 18.14  4800.8400, 4830.6500, 4830.6510, 4830.6520, 4830.6600, 
 18.15  4830.6610, 4830.6620, 4830.8510, 4830.8520, 4830.8530, 
 18.16  4830.8535, 4830.8540, 4830.8550, 4830.8570, and 4830.8575, are 
 18.17  repealed. 
 18.18     Sec. 18.  [INSTRUCTION TO REVISOR.] 
 18.19     (a) In the next and subsequent editions of Minnesota 
 18.20  Statutes, the revisor shall delete "community college," "board 
 18.21  of community colleges," or related terms; "state university," 
 18.22  "board of state universities," or related terms; and "technical 
 18.23  college," "board of technical colleges," or related terms and 
 18.24  replace them with "Minnesota state colleges and universities," 
 18.25  "board of trustees of the Minnesota state colleges and 
 18.26  universities," or related terms in the following sections and 
 18.27  subdivisions:  3.3005, subdivision 1; 3.732, subdivision 1; 
 18.28  3.754; 13.792; 15.44; 16A.127, subdivision 8; 16B.101, 
 18.29  subdivision 1; 16B.24, subdivision 2; 16B.30; 16B.31, 
 18.30  subdivision 1; 16B.61, subdivision 5; 43A.08, subdivision 1a; 
 18.31  116N.02, subdivision 1; 116O.09, subdivision 4; 135A.06, 
 18.32  subdivision 1; 138.054, subdivision 2; 216C.13; 256.7365, 
 18.33  subdivision 4; 256H.01, subdivision 13; 268.65, subdivision 2; 
 18.34  309.515, subdivision 1; and 491A.01, subdivision 6.  
 18.35     (b) In the next and subsequent editions of Minnesota 
 18.36  Statutes, the revisor shall change the term "chancellor of 
 19.1   vocational education" to "chancellor of the Minnesota state 
 19.2   colleges and universities" in Minnesota Statutes, section 
 19.3   268.363. 
 19.4      (c) In the next and subsequent editions of Minnesota 
 19.5   Statutes, the revisor shall change the cross-reference to 
 19.6   chapter "136C" to "136F" in Minnesota Statutes, section 326.84, 
 19.7   subdivision 3, clause (9). 
 19.8      Sec. 19.  [EFFECTIVE DATE.] 
 19.9      Sections 3, paragraph (e), 7, 11, 12, 14, 15, and 16 are 
 19.10  effective the day after final enactment. 
 19.11     Section 17, paragraph (a), is effective June 30, 1997.