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, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; establishing and 
  1.8             modifying programs that promote college affordability; 
  1.9             providing for agriculture education; clarifying the 
  1.10            role of the higher education services office; making 
  1.11            technical changes related to the post-secondary 
  1.12            merger; increasing the higher education facilities 
  1.13            authority bonding authority; modifying certain 
  1.14            conditions for the Minnesota state colleges and 
  1.15            universities; prescribing uses for the permanent 
  1.16            university fund; extending the repeal of the 
  1.17            farmer-lender mediation act; permitting certain land 
  1.18            conveyances; placing a condition on referenda by 
  1.19            campus student associations; establishing the 
  1.20            Minnesota Virtual University, a roundtable on 
  1.21            vocational technical education, and an agriculture 
  1.22            education leadership council; amending Minnesota 
  1.23            Statutes 1996, sections 16A.69, subdivision 2; 
  1.24            125.1385, subdivision 2; 126.56, subdivisions 2, 4a, 
  1.25            and 7; 135A.052, subdivision 1; 136A.03; 136A.101, by 
  1.26            adding a subdivision; 136A.121, subdivisions 5 and 9a; 
  1.27            136A.125, subdivision 4; 136A.1355; 136A.136, 
  1.28            subdivision 2; 136A.16, subdivision 8, and by adding 
  1.29            subdivisions; 136A.171; 136A.173, subdivision 3; 
  1.30            136A.233, subdivisions 2, 3, and by adding a 
  1.31            subdivision; 136A.29, subdivision 9; 136F.28, 
  1.32            subdivision 2; 136F.32; 136F.49; 136F.581, subdivision 
  1.33            2; 136F.72, subdivision 1; 136F.80; 137.022, 
  1.34            subdivision 2; 181.06, subdivision 2; 216C.27, 
  1.35            subdivision 7; and 583.22, subdivision 5; Laws 1986, 
  1.36            chapter 398, article 1, section 18, as amended; Laws 
  1.37            1994, chapter 643, section 19, subdivision 9, as 
  1.38            amended; Laws 1996, chapter 366, section 6; and Laws 
  1.39            1997, chapter 32, by adding a section; proposing 
  1.40            coding for new law in Minnesota Statutes, chapters 
  1.41            16A; 136A; and 136F; proposing coding for new law as 
  1.42            Minnesota Statutes, chapter 41D; repealing Minnesota 
  1.43            Statutes 1996, sections 126.113 and 137.41; Laws 1995, 
  1.44            chapter 212, article 4, section 34; and Laws 1995, 
  1.45            First Special Session chapter 2, article 1, sections 
  1.46            35 and 36. 
  2.1   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.2                              ARTICLE 1 
  2.3                            APPROPRIATIONS
  2.4   Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  2.5      The sums in the columns marked "APPROPRIATIONS" are 
  2.6   appropriated from the general fund, or other named fund, to the 
  2.7   agencies and for the purposes specified in this article.  The 
  2.8   listing of an amount under the figure "1998" or "1999" in this 
  2.9   article indicates that the amount is appropriated to be 
  2.10  available for the fiscal year ending June 30, 1998, or June 30, 
  2.11  1999, respectively.  "The first year" is fiscal year 1998.  "The 
  2.12  second year" is fiscal year 1999.  "The biennium" is fiscal 
  2.13  years 1998 and 1999. 
  2.14                          SUMMARY BY FUND
  2.15                            1998          1999           TOTAL
  2.16  General            $1,180,479,000 $1,191,244,000 $2,371,723,000
  2.17                   SUMMARY BY AGENCY - ALL FUNDS
  2.18                            1998          1999           TOTAL
  2.19  Higher Education Services Office
  2.20                        136,806,000    140,802,000    277,608,000
  2.21  Board of Trustees of the Minnesota
  2.22  State Colleges and Universities
  2.23                        501,682,000    513,954,000  1,015,636,000
  2.24  Board of Regents of the University
  2.25  of Minnesota
  2.26                        540,842,000    535,206,000  1,076,048,000
  2.27  Mayo Medical Foundation
  2.28                          1,149,000      1,282,000      2,431,000
  2.29                                             APPROPRIATIONS 
  2.30                                         Available for the Year 
  2.31                                             Ending June 30 
  2.32                                            1998         1999 
  2.33  Sec. 2.  HIGHER EDUCATION
  2.34  SERVICES OFFICE
  2.35  Subdivision 1.  Total
  2.36  Appropriation                        136,806,000    140,802,000
  2.37  The amounts that may be spent from this 
  2.38  appropriation for each purpose are 
  2.39  specified in the following subdivisions.
  2.40  Subd. 2.  State Grants
  3.1        99,046,000       115,171,000
  3.2   If the appropriation in this 
  3.3   subdivision for either year is 
  3.4   insufficient, the appropriation for the 
  3.5   other year is available for it.  
  3.6   The legislature intends that the higher 
  3.7   education services office make full 
  3.8   grant awards in each year of the 
  3.9   biennium.  
  3.10  For the biennium, the private 
  3.11  institution tuition maximum shall be 
  3.12  $7,860 in the first year and $8,055 in 
  3.13  the second year for four-year 
  3.14  institutions and $6,050 in the first 
  3.15  year and $6,200 in the second year for 
  3.16  two-year institutions. 
  3.17  This appropriation contains money to 
  3.18  set the living and miscellaneous 
  3.19  expense allowance at $4,500 in the 
  3.20  first year and $4,885 in the second 
  3.21  year. 
  3.22  This appropriation includes $250,000 
  3.23  each year for grants to nursing 
  3.24  programs to recruit persons of color 
  3.25  and to provide grants to nursing 
  3.26  students who are persons of color.  Of 
  3.27  this amount, $100,000 each year is for 
  3.28  recruitment and retention of students 
  3.29  of color in nursing programs leading to 
  3.30  licensure as a registered nurse.  Other 
  3.31  than the grants to students, all grants 
  3.32  shall be matched with at least the same 
  3.33  amount from grantee sources or nonstate 
  3.34  money.  
  3.35  $50,000 in each year is for the loan 
  3.36  repayment assistance program of 
  3.37  Minnesota to reimburse graduates of 
  3.38  Minnesota law schools working as 
  3.39  lawyers in Minnesota who meet the 
  3.40  eligibility criteria for loan repayment 
  3.41  for law school debt.  The eligibility 
  3.42  criteria must include the following:  
  3.43  (1) recipient's annual household income 
  3.44  is $30,000 or less; and (2) recipient 
  3.45  is providing legal services full time 
  3.46  for economically disadvantaged persons 
  3.47  for (a) a nonprofit agency as defined 
  3.48  by section 501(c)(3), 501(c)(4), or 
  3.49  501(c)(5) of the Internal Revenue Code 
  3.50  of 1986; (b) Native American tribal 
  3.51  governments, court systems, and public 
  3.52  interest organizations; (c) public 
  3.53  defense corporations; or (d) the state 
  3.54  board of public defense.  The money may 
  3.55  be released to the program only in 
  3.56  amounts that have been matched dollar 
  3.57  for dollar with private money. 
  3.58  This appropriation contains money for 
  3.59  the National Service Scholars program. 
  3.60  Subd. 3.  Interstate Tuition
  3.61  Reciprocity
  3.62       4,000,000      4,000,000
  4.1   If the appropriation in this 
  4.2   subdivision for either year is 
  4.3   insufficient, the appropriation for the 
  4.4   other year is available to meet 
  4.5   reciprocity contract obligations. 
  4.6   The higher education services office is 
  4.7   authorized to negotiate a reciprocity 
  4.8   agreement with the province of Ontario. 
  4.9   Subd. 4.  State Work Study
  4.10       9,444,000      9,444,000
  4.11  Subd. 5.  Minitex Library Program
  4.12       2,608,000      2,608,000
  4.13  This appropriation contains money for 
  4.14  online access to science and technology 
  4.15  periodicals. 
  4.16  Subd. 6.  Learning Network of Minnesota
  4.17       5,500,000      5,292,000
  4.18  Up to $1,500,000 of this amount is to 
  4.19  assist in establishing a gigabit 
  4.20  capacity point of presence at the 
  4.21  University of Minnesota-Twin Cities and 
  4.22  to support the University's 
  4.23  participation in the national Internet 
  4.24  two initiative for research and 
  4.25  development of telecommunications 
  4.26  networks.  This appropriation is 
  4.27  available to the extent matched by the 
  4.28  University of Minnesota or private 
  4.29  sources. 
  4.30  This appropriation includes money for 
  4.31  quality improvements and inter-region 
  4.32  and interstate connectivity for MnNet. 
  4.33  Subd. 7.  Income Contingent Loans
  4.34  The higher education services office 
  4.35  shall administer an income contingent 
  4.36  loan repayment program to assist 
  4.37  graduates of Minnesota schools in 
  4.38  medicine, dentistry, pharmacy, 
  4.39  chiropractic medicine, public health, 
  4.40  and veterinary medicine, and Minnesota 
  4.41  residents graduating from optometry and 
  4.42  osteopathy programs.  Applicant data 
  4.43  collected by the higher education 
  4.44  services office for this program may be 
  4.45  disclosed to a consumer credit 
  4.46  reporting agency under the same 
  4.47  conditions as apply to the supplemental 
  4.48  loan program under Minnesota Statutes, 
  4.49  section 136A.162.  No new applicants 
  4.50  may be accepted after June 30, 1995. 
  4.51  Subd. 8.  Minnesota Library
  4.52  Information Network
  4.53      12,000,000          -0-         
  4.54  This appropriation is for 
  4.55  implementation of the Minnesota library 
  4.56  information network, which shall be 
  5.1   developed in cooperation with the 
  5.2   library planning task force, and shall 
  5.3   include:  (1) an integrated library 
  5.4   system that will serve the libraries of 
  5.5   the University of Minnesota; the 
  5.6   Minnesota state colleges and 
  5.7   universities system; state government; 
  5.8   interested public, school, and private 
  5.9   college libraries; and not-for-profit 
  5.10  institutions that meet the 
  5.11  requirements; and (2) a common services 
  5.12  gateway creating links to the 
  5.13  integrated library system for 
  5.14  compatible school, public, and 
  5.15  not-for-profit library information 
  5.16  systems statewide.  Staff needed for 
  5.17  training and user support, technical 
  5.18  support, installation, and operation of 
  5.19  the network shall be obtained from the 
  5.20  Minnesota state colleges and 
  5.21  universities system, the University of 
  5.22  Minnesota, and other entities that have 
  5.23  experience and expertise in operating a 
  5.24  large library automation system.  This 
  5.25  appropriation is available until 
  5.26  expended or until the network is 
  5.27  completed, whichever occurs first. 
  5.28  Subd. 9.  Edvest 
  5.29       1,519,000      1,520,000 
  5.30  Subd. 10.  Agency Administration
  5.31       2,689,000      2,767,000
  5.32  This appropriation includes money for 
  5.33  the Minnesota Minority Education 
  5.34  Partnership. 
  5.35  Money encumbered for youth works 
  5.36  postservice benefits shall not cancel 
  5.37  but is available until the participants 
  5.38  for whom the money was encumbered are 
  5.39  no longer eligible to draw benefits. 
  5.40  The higher education advisory council 
  5.41  and the student advisory council shall 
  5.42  not expire on June 30, 1997, but shall 
  5.43  continue for the biennium. 
  5.44  Subd. 11.  Balances Forward 
  5.45  An unencumbered balance in the first 
  5.46  year under a subdivision in this 
  5.47  section does not cancel but is 
  5.48  available for the second year. 
  5.49  Subd. 12.  Transfers 
  5.50  The higher education services office 
  5.51  may transfer unencumbered balances from 
  5.52  the appropriations in this section to 
  5.53  the state grant appropriation, the 
  5.54  interstate tuition reciprocity 
  5.55  appropriation, the child care 
  5.56  appropriation, and the state work study 
  5.57  appropriation. 
  5.58  The higher education services office 
  5.59  shall make recommendations to the 1998 
  6.1   and 1999 legislatures on how to use any 
  6.2   savings resulting from federal Pell 
  6.3   grant changes.  Options for the office 
  6.4   to consider shall include, but not be 
  6.5   limited to, reducing the assigned 
  6.6   family responsibility for independent 
  6.7   students and reducing the student share 
  6.8   in the state grant formula. 
  6.9   Subd. 13.  Nonrecurring Appropriations 
  6.10  The appropriations for the Minnesota 
  6.11  library information network, quality 
  6.12  improvements on MnNet, inter-region and 
  6.13  interstate connectivity for MnNet, and 
  6.14  the National Service Scholars program 
  6.15  are nonrecurring. 
  6.16  Sec. 3.  BOARD OF TRUSTEES OF THE
  6.17  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  6.18  Subdivision 1.  Total
  6.19  Appropriation                       501,682,000    513,954,000
  6.20  The amounts that may be spent from this 
  6.21  appropriation for each purpose are 
  6.22  specified in the following subdivisions.
  6.23  In fiscal year 1998, each college and 
  6.24  university is to receive its fiscal 
  6.25  year 1997 state appropriation adjusted 
  6.26  for enrollment changes.  In addition, 
  6.27  instructional and noninstructional 
  6.28  appropriation increases for educational 
  6.29  improvements, performance, technology, 
  6.30  equipment, and the electronic academy 
  6.31  are to be distributed to the colleges 
  6.32  and universities based on a weighted 
  6.33  average as follows: 
  6.34  (1) each campus's proportion of the 
  6.35  fiscal year 1997 state appropriation, 
  6.36  weighted at 70 percent; and 
  6.37  (2) the proportion of each campus to 
  6.38  the total system full-year equivalent 
  6.39  enrollment for the 1996-1997 academic 
  6.40  year, weighted at 30 percent. 
  6.41  The system shall report to the 
  6.42  legislature on the board's progress in 
  6.43  developing a new allocation model by 
  6.44  February 1, 1998. 
  6.45  Subd. 2.  Instructional Expenditures 
  6.46  The legislature estimates that 
  6.47  instructional expenditures will be 
  6.48  $650,469,000 in the first year and 
  6.49  $664,765,000 in the second year. 
  6.50  During the biennium neither the board 
  6.51  nor campuses shall plan or develop 
  6.52  doctoral level programs or degrees 
  6.53  until after they have received the 
  6.54  recommendation of the house and senate 
  6.55  committees on education, finance, and 
  6.56  ways and means. 
  6.57  This appropriation contains money for 
  6.58  educational enhancements including 
  7.1   improvements in programs, student 
  7.2   services, advising, library 
  7.3   acquisitions, and class size and 
  7.4   availability, while holding down 
  7.5   tuition increases.  
  7.6   This appropriation contains money for 
  7.7   further development of the electronic 
  7.8   academy, including delivery of academic 
  7.9   programs statewide via electronic 
  7.10  technology, development of multimedia 
  7.11  instructional technology across the 
  7.12  curriculum, development of automated 
  7.13  student services available online and 
  7.14  through the Internet, provision of 
  7.15  technological services for staff and 
  7.16  students, staff development, and 
  7.17  challenge grants for innovative 
  7.18  technology applications.  Up to 
  7.19  $300,000 each year is for central 
  7.20  office costs associated with the 
  7.21  implementation of the electronic 
  7.22  academy. 
  7.23  This appropriation includes money for 
  7.24  improvements in instructional 
  7.25  technology and equipment to be used for 
  7.26  the benefit of faculty and students on 
  7.27  campus. 
  7.28  This appropriation contains money to 
  7.29  develop and implement a common student 
  7.30  information system and central data 
  7.31  management system, and to upgrade the 
  7.32  management information systems network. 
  7.33  During the biennium, each college and 
  7.34  university shall demonstrate to the 
  7.35  board that, in the face of budget 
  7.36  constraints, it has identified those 
  7.37  programs and functions that are central 
  7.38  to the mission of that campus and are 
  7.39  most critical to meeting student needs, 
  7.40  and that the campus has redirected 
  7.41  resources to those identified areas to 
  7.42  protect the core educational 
  7.43  enterprise.  Further, each campus shall 
  7.44  demonstrate that it has taken actions 
  7.45  to improve the productivity of faculty, 
  7.46  administrators, and staff. 
  7.47  During the biennium, technical and 
  7.48  consolidated colleges shall make use of 
  7.49  instructional advisory committees 
  7.50  consisting of employers, students, and 
  7.51  instructors.  The instructional 
  7.52  advisory committee shall be consulted 
  7.53  when a technical program is proposed to 
  7.54  be created, modified, or eliminated.  
  7.55  If a decision is made to eliminate a 
  7.56  program, a college shall adequately 
  7.57  notify students and make plans to 
  7.58  assist students affected by the closure.
  7.59  In each year the board of trustees 
  7.60  shall increase the percentage of the 
  7.61  total general fund expenditures for 
  7.62  direct instruction, as reported in the 
  7.63  federal Integrated Postsecondary 
  7.64  Education Data System (IPEDS).  By 
  7.65  February 15 of 1998 and 1999, the board 
  8.1   of trustees shall report to the 
  8.2   legislature the percentage of total 
  8.3   general fund expenditures spent on 
  8.4   direct instruction and on 
  8.5   administrative support during the 
  8.6   previous fiscal year. 
  8.7   In the process of converting to 
  8.8   semesters, the system and campuses 
  8.9   shall develop and incorporate 
  8.10  mechanisms to improve credit transfer 
  8.11  as they redesign curriculum. 
  8.12  This appropriation contains money for 
  8.13  the Virtual University. 
  8.14  Subd. 3.  Noninstructional Expenditures 
  8.15  The legislature estimates that 
  8.16  noninstructional expenditures will be 
  8.17  $45,765,000 in the first year and 
  8.18  $43,741,000 in the second year. 
  8.19  This appropriation contains money to 
  8.20  reimburse campuses for snow and flood 
  8.21  disasters.  
  8.22  This appropriation contains money to 
  8.23  pay the first year's assessments for 
  8.24  the road and entrance improvements at 
  8.25  Inver Hills Community College.  It is 
  8.26  anticipated that the remainder of the 
  8.27  costs will be paid from bond sources. 
  8.28  This appropriation contains money for 
  8.29  development and implementation of the 
  8.30  Minnesota career and education planning 
  8.31  system in partnership with the 
  8.32  University of Minnesota, the department 
  8.33  of children, families, and learning, 
  8.34  and the Minnesota office of 
  8.35  technology.  System maintenance and 
  8.36  operation costs must be paid by 
  8.37  participating agencies and institutions.
  8.38  $204,000 in the first year and $99,000 
  8.39  in the second year are for debt service 
  8.40  payments. 
  8.41  $150,000 each year is for southwest 
  8.42  Asia veterans tuition relief.  
  8.43  $150,000 in the first year is to 
  8.44  establish pilot programs at one 
  8.45  community college, one technical 
  8.46  college, and one consolidated community 
  8.47  technical college to expand the child 
  8.48  care offerings on campus to include 
  8.49  infant care.  To be chosen by the board 
  8.50  to receive a grant, a campus must 
  8.51  demonstrate that (1) it has an 
  8.52  exemplary child care program, (2) there 
  8.53  is demand for infant care on campus, 
  8.54  and (3) it has the physical and 
  8.55  financial capacity to sustain an infant 
  8.56  care program after the pilot grant has 
  8.57  expired.  The board shall provide an 
  8.58  evaluation of the pilot programs and 
  8.59  its recommendations on expanding infant 
  8.60  care to other campuses to the education 
  8.61  committees of the legislature as part 
  9.1   of its 2000-2001 biennial budget 
  9.2   request. 
  9.3   Subd. 4.  State Council on 
  9.4   Vocational Technical Education 
  9.5   The appropriation in subdivision 1 
  9.6   includes money in the first year for 
  9.7   the state council on vocational 
  9.8   education. 
  9.9   Subd. 5.  Nonrecurring Appropriations 
  9.10  The appropriations for the information 
  9.11  management system, technology, 
  9.12  equipment, the Virtual University, the 
  9.13  Minnesota career and education planning 
  9.14  system, building repairs and 
  9.15  betterment, snow and flood disaster, 
  9.16  state council on vocational education, 
  9.17  Inver Hills Community College road 
  9.18  assessment, and the infant care pilot 
  9.19  project are nonrecurring. 
  9.20  Sec. 4.  BOARD OF REGENTS OF THE 
  9.21  UNIVERSITY OF MINNESOTA 
  9.22  Subdivision 1.  Total
  9.23  Appropriation                        540,842,000    535,206,000
  9.24  The amounts that may be spent from this 
  9.25  appropriation for each purpose are 
  9.26  specified in the following subdivisions.
  9.27  Subd. 2.  Operations and
  9.28  Maintenance                          470,998,000    468,362,000
  9.29  (a) Instructional Expenditures 
  9.30  The legislature estimates that 
  9.31  instructional expenditures will be 
  9.32  $420,752,000 in the first year and 
  9.33  $423,096,000 in the second year. 
  9.34  This appropriation includes money for 
  9.35  the Virtual University. 
  9.36  This appropriation includes money for 
  9.37  programmatic improvements. 
  9.38  (b) Noninstructional Expenditures 
  9.39  The legislature estimates that 
  9.40  noninstructional expenditures will be 
  9.41  $182,073,000 in the first year and 
  9.42  $178,649,000 in the second year.  
  9.43  This appropriation contains money for 
  9.44  the development and implementation of 
  9.45  the Minnesota career and education 
  9.46  planning system in partnership with the 
  9.47  Minnesota state colleges and 
  9.48  universities, the department of 
  9.49  children, families, and learning, and 
  9.50  the Minnesota office of technology.  
  9.51  System maintenance and operation costs 
  9.52  must be paid by participating agencies 
  9.53  and institutions. 
  9.54  $3,000,000 in the first year is to 
  9.55  supplement the appropriation under Laws 
 10.1   1996, chapter 463, section 14, 
 10.2   subdivision 7, for the Mariucci ice and 
 10.3   tennis facility.  The facility shall be 
 10.4   a multisheet ice arena, unless the 
 10.5   board of regents determines, after 
 10.6   consultation with the Minnesota amateur 
 10.7   sports commission, that construction of 
 10.8   a multisheet ice arena is not feasible. 
 10.9   Any net profits from the operation of 
 10.10  the facility must go to the women's 
 10.11  athletic department. 
 10.12  $250,000 in the first year is for the 
 10.13  academic health center to provide 
 10.14  research grants of up to $20,000 to 
 10.15  faculty.  These grants shall be given 
 10.16  to provide developmental support for 
 10.17  projects that have a strong potential 
 10.18  for future funding from outside sources.
 10.19  By February 15 of each year, the 
 10.20  University shall report to the higher 
 10.21  education divisions of the legislature 
 10.22  on its efforts to improve opportunities 
 10.23  for female athletes consistent with 
 10.24  Title IX. 
 10.25  This appropriation contains money for 
 10.26  the violence and abuse prevention 
 10.27  program.  The legislature intends this 
 10.28  to be the final state appropriation.  
 10.29  Future financing must be from nonstate 
 10.30  sources. 
 10.31  Subd. 3.  Special
 10.32  Appropriation                         69,844,000     66,844,000
 10.33  The amounts expended for each program 
 10.34  in the four categories of special 
 10.35  appropriations shall be separately 
 10.36  identified in the 1999 biennial budget 
 10.37  document. 
 10.38  (a) Agriculture and Extension Service 
 10.39      51,047,000     51,047,000
 10.40  This appropriation is for the 
 10.41  Agricultural Experiment Station, 
 10.42  Minnesota Extension Service, and for 
 10.43  initiatives designed to sustain 
 10.44  Minnesota's renewable natural 
 10.45  resource-based industries, including, 
 10.46  but not limited to, regional 
 10.47  sustainable agriculture partnerships, 
 10.48  research on wheat and barley scab, 
 10.49  spring wheat, grapes and wine, and 
 10.50  canola. 
 10.51  Any salary increases granted by the 
 10.52  university to personnel paid from the 
 10.53  Minnesota Extension appropriation must 
 10.54  not result in a reduction of the county 
 10.55  portion of the salary payments. 
 10.56  During the biennium, the university 
 10.57  shall maintain an advisory council 
 10.58  system for each experiment station.  
 10.59  The advisory councils must be broadly 
 10.60  representative of range of size and 
 10.61  income distribution of farms and 
 11.1   agribusinesses and must not 
 11.2   disproportionately represent those from 
 11.3   the upper half of the size and income 
 11.4   distributions. 
 11.5   This appropriation contains money for 
 11.6   agriculture education including money 
 11.7   for the Minnesota agriculture 
 11.8   leadership council and for grants.  It 
 11.9   also includes money for the university 
 11.10  to improve recruitment and 
 11.11  collaborative efforts at the college of 
 11.12  agriculture, food, and environmental 
 11.13  science.  
 11.14  (b) Health Sciences 
 11.15      10,066,000      7,066,000
 11.16  This appropriation is for indigent 
 11.17  patients (county papers), rural 
 11.18  physicians associates program, the 
 11.19  Veterinary Diagnostic Laboratory, 
 11.20  health sciences research, dental care, 
 11.21  and the Biomedical Engineering Center. 
 11.22  By January 15, 1998, the board of 
 11.23  regents, after consultation with the 
 11.24  board of animal health, the livestock 
 11.25  industry, and the Minnesota Veterinary 
 11.26  Medical Association, is requested to 
 11.27  make recommendations to the higher 
 11.28  education finance divisions of the 
 11.29  legislature regarding transfer of 
 11.30  funding for the Veterinary Diagnostic 
 11.31  Laboratory to the board of animal 
 11.32  health. 
 11.33  This appropriation contains money for 
 11.34  technology transfer, research and 
 11.35  public service, and the Biomedical 
 11.36  Engineering Center endowment.  
 11.37  (c) Institute of Technology  
 11.38       1,552,000      1,552,000
 11.39  This appropriation is for the 
 11.40  Geological Survey and the Talented 
 11.41  Youth Mathematics Program. 
 11.42  (d) System Specials 
 11.43       7,179,000      7,179,000
 11.44  This appropriation is for general 
 11.45  research, student loans matching money, 
 11.46  industrial relations education, Natural 
 11.47  Resources Research Institute, Center 
 11.48  for Urban and Regional Affairs, Bell 
 11.49  Museum of Natural History, and the 
 11.50  Humphrey exhibit.  For the biennium, 
 11.51  the board shall not reduce the total 
 11.52  allocation for industrial relations 
 11.53  education. 
 11.54  Subd. 4.  Nonrecurring Appropriations 
 11.55  The appropriations for the 
 11.56  administrative process redesign, the 
 11.57  Virtual University, the Minnesota 
 12.1   career and education planning system, 
 12.2   the Biomedical Engineering Center 
 12.3   endowment, technology transfer, women's 
 12.4   ice sheet and tennis facility, violence 
 12.5   and abuse prevention program, and 
 12.6   programmatic improvements and 
 12.7   performance are nonrecurring. 
 12.8   Sec. 5.  MAYO MEDICAL FOUNDATION 
 12.9   Subdivision 1.  Total
 12.10  Appropriation                           1,149,000       1,282,000
 12.11  The amounts that may be spent from this 
 12.12  appropriation for each purpose are 
 12.13  specified in the following subdivisions.
 12.14  Subd. 2.  Medical School
 12.15         441,000        455,000
 12.16  The state of Minnesota shall pay a 
 12.17  capitation of $11,047 in the first year 
 12.18  and $11,378 in the second year for each 
 12.19  student who is a resident of 
 12.20  Minnesota.  The appropriation may be 
 12.21  transferred between years of the 
 12.22  biennium to accommodate enrollment 
 12.23  fluctuations. 
 12.24  The legislature intends that during the 
 12.25  biennium the Mayo foundation use the 
 12.26  capitation money to increase the number 
 12.27  of doctors practicing in rural areas in 
 12.28  need of doctors.  
 12.29  Subd. 3.  Family Practice and
 12.30  Graduate Residency Program
 12.31         408,000        467,000
 12.32  The state of Minnesota provides a 
 12.33  capitation of $15,107 in the first year 
 12.34  and $15,560 in the second year for each 
 12.35  student. 
 12.36  Subd. 4.  St. Cloud Hospital-Mayo 
 12.37  Family Practice Residency Program 
 12.38         300,000        360,000
 12.39  This appropriation is to the Mayo 
 12.40  foundation to support 10 resident 
 12.41  physicians in the first year and 12 
 12.42  resident physicians in the second year 
 12.43  in the St. Cloud Hospital-Mayo Family 
 12.44  Practice Residency Program.  The 
 12.45  program shall prepare doctors to 
 12.46  practice primary care medicine in the 
 12.47  rural areas of the state.  It is 
 12.48  intended that this program will improve 
 12.49  health care in rural communities, 
 12.50  provide affordable access to 
 12.51  appropriate medical care, and manage 
 12.52  the treatment of patients in a more 
 12.53  cost-effective manner. 
 12.54  Sec. 6.  POST-SECONDARY SYSTEMS 
 12.55  The legislature intends that the 
 12.56  University of Minnesota and the 
 13.1   Minnesota state colleges and 
 13.2   universities correct technical college 
 13.3   credit transfer problems.  The systems, 
 13.4   in conjunction with their campuses and 
 13.5   with faculty and student 
 13.6   representatives, shall convene faculty 
 13.7   task forces in appropriate curricular 
 13.8   areas to determine, within sound 
 13.9   academic standards, which technical 
 13.10  college courses shall transfer to 
 13.11  academic institutions and whether each 
 13.12  course is accepted for general 
 13.13  education, major field, or elective 
 13.14  credit.  The task forces shall complete 
 13.15  their work in time to implement changes 
 13.16  for the 1998-1999 academic year.  The 
 13.17  systems shall develop mechanisms for 
 13.18  assessing the success of the changes 
 13.19  after they have been implemented and 
 13.20  shall determine whether this process 
 13.21  should be used to update the entire 
 13.22  transfer curriculum, particularly in 
 13.23  light of semester conversion.  The 
 13.24  systems shall report on their progress 
 13.25  and recommendations for any further 
 13.26  action as part of the 2000-2001 
 13.27  biennial budget request.  By February 
 13.28  1, 1998, the systems shall provide a 
 13.29  brief progress report that includes an 
 13.30  assessment of the feasibility of common 
 13.31  course numbering. 
 13.32  A college or university that 
 13.33  establishes a lab school shall report 
 13.34  to its governing board and the higher 
 13.35  education divisions of the legislature 
 13.36  by February 1, 1999, on all direct and 
 13.37  indirect expenditures related to the 
 13.38  establishment and operation of the 
 13.39  school.  The report shall include 
 13.40  documentation of all sources of 
 13.41  financing for these expenses. 
 13.42  The University of Minnesota and the 
 13.43  Minnesota state colleges and 
 13.44  universities shall jointly prepare a 
 13.45  report to be submitted to the higher 
 13.46  education divisions of the legislature 
 13.47  by February 1, 1998, that provides a 
 13.48  detailed review of current and planned 
 13.49  expenditures on information 
 13.50  technology.  The plan shall specify the 
 13.51  goals and objectives of the systems and 
 13.52  the campuses in their use of technology 
 13.53  and demonstrate how these goals and 
 13.54  objectives will serve the state's 
 13.55  interest in higher education. 
 13.56                             ARTICLE 2
 13.57                       COLLEGE AFFORDABILITY
 13.58     Section 1.  [16A.645] [GOPHER STATE BONDS.] 
 13.59     Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The 
 13.60  commissioner of finance, in consultation with the University of 
 13.61  Minnesota, the Minnesota state colleges and universities, and 
 13.62  the private college council, shall establish a college savings 
 14.1   bond program, to be known as "gopher state bonds" to encourage 
 14.2   individuals to save for higher education costs by investing in 
 14.3   state general obligation bonds.  The program consists of:  (1) 
 14.4   issuing a portion of the state general obligation bonds in zero 
 14.5   coupon form and in denominations and maturities that will be 
 14.6   attractive to individuals saving to pay for higher education 
 14.7   costs; and (2) developing a program for marketing the bonds to 
 14.8   investors who are saving to pay for higher education costs.  The 
 14.9   commissioner of finance may designate all or a portion of each 
 14.10  state general obligation bond sale as "gopher state bonds." 
 14.11     Subd. 2.  [DENOMINATIONS; MATURITIES.] The commissioner 
 14.12  shall determine the appropriate denominations and maturities for 
 14.13  gopher state bonds.  It is the intent of the legislature to make 
 14.14  bonds available in as small denominations as is feasible given 
 14.15  the costs of marketing and administering the bond issue.  
 14.16  Minimum denominations of $500 must be made available.  The 
 14.17  minimum denomination bonds need not be made available for bonds 
 14.18  of all maturities.  For purposes of this section, "denomination" 
 14.19  means the compounded maturity amount of the bond. 
 14.20     Subd. 3.  [DIRECT SALE PERMITTED.] Notwithstanding the 
 14.21  provisions of section 16A.646, subdivision 5, the commissioner 
 14.22  may sell any series of gopher state bonds directly to the public 
 14.23  or to financial institutions for prompt resale to the public 
 14.24  upon the terms and conditions and the restrictions the 
 14.25  commissioner prescribes.  The commissioner may enter into all 
 14.26  contracts deemed necessary or desirable to accomplish the sale 
 14.27  in a cost-effective manner including a private or negotiated 
 14.28  sale, but the commissioner may contract for investment banking 
 14.29  and banking services only after receiving competitive proposals 
 14.30  for the services. 
 14.31     Subd. 4.  [MARKETING PLAN.] The commissioner and the higher 
 14.32  education advisory council shall develop a plan for marketing 
 14.33  gopher state bonds. 
 14.34     The plan must include strategies to: 
 14.35     (1) inform parents and relatives about the availability of 
 14.36  the bonds; 
 15.1      (2) take orders for the bonds; 
 15.2      (3) target the sale of the bonds to Minnesota residents, 
 15.3   especially parents and relatives of children who are likely to 
 15.4   seek higher education; 
 15.5      (4) ensure that purchase of the bonds by corporations will 
 15.6   not prevent individuals and relatives of future students from 
 15.7   buying them; and 
 15.8      (5) market the bonds at the lowest cost to the state. 
 15.9      Subd. 5.  [EFFECT ON STUDENT GRANTS.] The first $25,000 of 
 15.10  gopher state bonds purchased for the benefit of a student must 
 15.11  not be considered in determining the financial need of an 
 15.12  applicant for the state grant program under section 136A.121. 
 15.13  This $25,000 is in addition to any other asset exclusion 
 15.14  authorized under chapter 136A. 
 15.15     Sec. 2.  [16A.646] [ZERO COUPON BONDS.] 
 15.16     Subdivision 1.  [AUTHORITY TO ISSUE.] When authorized by 
 15.17  law to issue state general obligation bonds, the commissioner 
 15.18  may issue all or part of the bonds as serial maturity bonds or 
 15.19  as zero coupon bonds or a combination of the two. 
 15.20     Subd. 2.  [DEFINITIONS.] For purposes of this section and 
 15.21  section 16A.645, the following terms have the meanings given 
 15.22  them. 
 15.23     (a) "Compounded maturity" means the amount of principal and 
 15.24  interest payable at maturity on zero coupon bonds. 
 15.25     (b) "Serial maturity bonds" means bonds maturing on a 
 15.26  specified day in two or more consecutive years and bearing 
 15.27  interest at a specified rate payable periodically to maturity or 
 15.28  prior redemption. 
 15.29     (c) "Zero coupon bonds" means bonds in a stated principal 
 15.30  amount, maturing on a specified date or dates, and bearing 
 15.31  interest that accrues and compounds to and is payable only at 
 15.32  maturity or upon prior redemption of the bonds. 
 15.33     Subd. 3.  [METHOD OF SALE; PRINCIPAL AMOUNT.] Except as 
 15.34  otherwise provided by this section or section 16A.645, any 
 15.35  series of bonds including zero coupon bonds must be issued and 
 15.36  sold under the provisions of section 16A.641.  The stated 
 16.1   principal amount of zero coupon bonds must be used to determine 
 16.2   the principal amount of bonds issued under the laws authorizing 
 16.3   issuance of state general obligation bonds. 
 16.4      Subd. 4.  [SINKING FUND.] The commissioner's order 
 16.5   authorizing the issuance of zero coupon bonds shall establish a 
 16.6   separate sinking fund account for the zero coupon bonds in the 
 16.7   state bond fund.  There is annually appropriated from the 
 16.8   general fund to each zero coupon bond account, beginning in the 
 16.9   year in which the zero coupon bonds are issued, an amount not 
 16.10  less than the sum of: 
 16.11     (1) the total stated principal amount of the zero coupon 
 16.12  bonds that would have matured from their date of issue to and 
 16.13  including the second July 1 following the transfer of 
 16.14  appropriated money, if the bonds matured serially in an equal 
 16.15  principal amount in each year during their term and in the same 
 16.16  month as their stated maturity date; plus 
 16.17     (2) the total amount of interest accruing on the stated 
 16.18  principal amount of the bonds and on interest previously 
 16.19  accrued, from bonds date of issue to and including the second 
 16.20  July 1 following the transfer of appropriated money; less 
 16.21     (3) the amount in the sinking fund account for the payment 
 16.22  of the compounded maturity amount of the bonds, including 
 16.23  interest earnings on amounts in the account.  This appropriation 
 16.24  is in lieu of all other appropriations made with respect to zero 
 16.25  coupon bonds.  The appropriated amounts must be transferred from 
 16.26  the general fund to the sinking fund account in the state bond 
 16.27  fund by December 1 of each year. 
 16.28     Subd. 5.  [SALE.] Except as otherwise provided in section 
 16.29  16A.645, zero coupon bonds, or a series of bonds including zero 
 16.30  coupon bonds, must be sold at public sale at a price not less 
 16.31  than 98 percent of their stated principal amount.  No state 
 16.32  trunk highway bond may be sold for a price of less than par and 
 16.33  accrued interest. 
 16.34     Sec. 3.  Minnesota Statutes 1996, section 136A.101, is 
 16.35  amended by adding a subdivision to read: 
 16.36     Subd. 5a.  [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 
 17.1   family responsibility" means the amount of a family contribution 
 17.2   to a student's cost of attendance, as determined by a federal 
 17.3   need analysis, except that, beginning for the 1998-1999 academic 
 17.4   year, up to $25,000 in savings and other assets shall be 
 17.5   subtracted from the federal calculation of net worth before 
 17.6   determining the contribution.  For dependent students, the 
 17.7   assigned family responsibility is the parental contribution.  
 17.8   For independent students with dependents other than a spouse, 
 17.9   the assigned family responsibility is the student contribution. 
 17.10  For independent students without dependents other than a spouse, 
 17.11  the assigned family responsibility is 80 percent of the student 
 17.12  contribution. 
 17.13     Sec. 4.  Minnesota Statutes 1996, section 136A.121, 
 17.14  subdivision 5, is amended to read: 
 17.15     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 17.16  based on a sharing of responsibility for covering the recognized 
 17.17  cost of attendance by the applicant, the applicant's family, and 
 17.18  the government.  The amount of a financial stipend must not 
 17.19  exceed a grant applicant's recognized cost of attendance, as 
 17.20  defined in subdivision 6, after deducting the following:  
 17.21     (1) the assigned student responsibility of at least 50 
 17.22  percent of the cost of attending the institution of the 
 17.23  applicant's choosing; 
 17.24     (2) the assigned family responsibility, as determined by 
 17.25  the federal need analysis, which for (i) dependent students, is 
 17.26  the parental contribution as calculated by the federal need 
 17.27  analysis, and for (ii) independent students, is the student 
 17.28  contribution as determined by the federal need analysis; and as 
 17.29  defined in section 136A.101; and 
 17.30     (3) the amount of a federal Pell grant award for which the 
 17.31  grant applicant is eligible. 
 17.32     The minimum financial stipend is $300 per academic year. 
 17.33     Sec. 5.  Minnesota Statutes 1996, section 136A.121, 
 17.34  subdivision 9a, is amended to read: 
 17.35     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 17.36  grants for four consecutive quarters or three consecutive 
 18.1   semesters during the course of a single fiscal year.  In 
 18.2   calculating a state grant for the fourth quarter or third 
 18.3   semester, the office must use the same calculation as it would 
 18.4   for any other term, except that the calculation must subtract 
 18.5   any Pell grant for which a student would be eligible even if the 
 18.6   student has exhausted the Pell grant for that fiscal year. 
 18.7      Sec. 6.  Minnesota Statutes 1996, section 136A.125, 
 18.8   subdivision 4, is amended to read: 
 18.9      Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 18.10  child care grant must be based on: 
 18.11     (1) the income of the applicant and the applicant's spouse, 
 18.12  if any; 
 18.13     (2) the number in the applicant's family, as defined by the 
 18.14  office; and 
 18.15     (3) the number of eligible children in the applicant's 
 18.16  family.  
 18.17     The maximum award to the applicant shall be $1,700 $2,000 
 18.18  for each eligible child per academic year.  The office shall 
 18.19  prepare a chart to show the amount of a grant that will be 
 18.20  awarded per child based on the factors in this subdivision.  The 
 18.21  chart shall include a range of income and family size. 
 18.22     Sec. 7.  Minnesota Statutes 1996, section 136A.1355, is 
 18.23  amended to read: 
 18.24     136A.1355 [RURAL PHYSICIANS.] 
 18.25     Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
 18.26  education account is established in the health care access 
 18.27  fund.  The higher education services office commissioner shall 
 18.28  use money from the account to establish a loan forgiveness 
 18.29  program for medical students residents agreeing to practice in 
 18.30  designated rural areas, as defined by the commissioner.  
 18.31     Subd. 2.  [ELIGIBILITY.] To be eligible to participate in 
 18.32  the program, a prospective physician must submit a letter of 
 18.33  interest to the higher education services office commissioner.  
 18.34  A student or resident who is accepted must sign a contract to 
 18.35  agree to serve at least three of the first five years following 
 18.36  residency in a designated rural area. 
 19.1      Subd. 3.  [LOAN FORGIVENESS.] For each fiscal years 
 19.2   beginning on and year after July 1, 1995, the higher education 
 19.3   services office commissioner may accept up to four applicants 
 19.4   who are fourth year medical students, three 12 applicants who 
 19.5   are medical residents, including four applicants who are 
 19.6   pediatric residents, and four six applicants who are family 
 19.7   practice residents, and one applicant who is an two applicants 
 19.8   who are internal medicine resident residents, per fiscal year 
 19.9   for participation in the loan forgiveness program.  If 
 19.10  the higher education services office commissioner does not 
 19.11  receive enough applicants per fiscal year to fill the number of 
 19.12  residents in the specific areas of practice, the resident 
 19.13  applicants may be from any area of practice.  The eight 12 
 19.14  resident applicants may be in any year of training; however, 
 19.15  priority must be given to the following categories of residents 
 19.16  in descending order:  third year residents, second year 
 19.17  residents, and first year residents.  Applicants are responsible 
 19.18  for securing their own loans.  Applicants chosen to participate 
 19.19  in the loan forgiveness program may designate for each year of 
 19.20  medical school, up to a maximum of four years, an agreed amount, 
 19.21  not to exceed $10,000, as a qualified loan.  For each year that 
 19.22  a participant serves as a physician in a designated rural area, 
 19.23  up to a maximum of four years, the higher education services 
 19.24  office commissioner shall annually pay an amount equal to one 
 19.25  year of qualified loans.  Participants who move their practice 
 19.26  from one designated rural area to another remain eligible for 
 19.27  loan repayment.  In addition, if in any year that a resident 
 19.28  participating in the loan forgiveness program serves at least 
 19.29  four weeks during a year of residency substituting for a rural 
 19.30  physician to temporarily relieve the rural physician of rural 
 19.31  practice commitments to enable the rural physician to take a 
 19.32  vacation, engage in activities outside the practice area, or 
 19.33  otherwise be relieved of rural practice commitments, the 
 19.34  participating resident may designate up to an additional $2,000, 
 19.35  above the $10,000 yearly maximum, for each year of residency 
 19.36  during which the resident substitutes for a rural physician for 
 20.1   four or more weeks. 
 20.2      Subd. 4.  [PENALTY FOR NONFULFILLMENT.] If a participant 
 20.3   does not fulfill the required three-year minimum commitment of 
 20.4   service in a designated rural area, the higher education 
 20.5   services office commissioner shall collect from the participant 
 20.6   the amount paid by the commissioner under the loan forgiveness 
 20.7   program.  The higher education services office commissioner 
 20.8   shall deposit the money collected in the rural physician 
 20.9   education account established in subdivision 1.  The 
 20.10  commissioner shall allow waivers of all or part of the money 
 20.11  owed the commissioner if emergency circumstances prevented 
 20.12  fulfillment of the three-year service commitment.  
 20.13     Subd. 5.  [LOAN FORGIVENESS; UNDERSERVED URBAN 
 20.14  COMMUNITIES.] For each fiscal years year beginning on and after 
 20.15  July 1, 1995, the higher education services office commissioner 
 20.16  may accept up to four applicants who are either fourth year 
 20.17  medical students, or residents in family practice, pediatrics, 
 20.18  or internal medicine per fiscal year for participation in the 
 20.19  urban primary care physician loan forgiveness program.  The 
 20.20  resident applicants may be in any year of residency training; 
 20.21  however, priority will be given to the following categories of 
 20.22  residents in descending order:  third year residents, second 
 20.23  year residents, and first year residents.  If the higher 
 20.24  education services office commissioner does not receive enough 
 20.25  qualified applicants per fiscal year to fill the number of slots 
 20.26  for urban underserved communities, the slots may be allocated to 
 20.27  students or residents who have applied for the rural physician 
 20.28  loan forgiveness program in subdivision 1.  Applicants are 
 20.29  responsible for securing their own loans.  For purposes of this 
 20.30  provision, "qualifying educational loans" are government and 
 20.31  commercial loans for actual costs paid for tuition, reasonable 
 20.32  education expenses, and reasonable living expenses related to 
 20.33  the graduate or undergraduate education of a health care 
 20.34  professional.  Applicants chosen to participate in the loan 
 20.35  forgiveness program may designate for each year of medical 
 20.36  school, up to a maximum of four years, an agreed amount, not to 
 21.1   exceed $10,000, as a qualified loan.  For each year that a 
 21.2   participant serves as a physician in a designated underserved 
 21.3   urban area, up to a maximum of four years, the higher education 
 21.4   services office commissioner shall annually pay an amount equal 
 21.5   to one year of qualified loans.  Participants who move their 
 21.6   practice from one designated underserved urban community to 
 21.7   another remain eligible for loan repayment. 
 21.8      Sec. 8.  Minnesota Statutes 1996, section 136A.136, 
 21.9   subdivision 2, is amended to read: 
 21.10     Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
 21.11  FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
 21.12  foundation's project LINC shall administer the grant program and 
 21.13  award grants to eligible health care facility employees.  To be 
 21.14  eligible to receive a grant, a person must be: 
 21.15     (1) an employee of a health care facility located in 
 21.16  Minnesota, whom the facility has recommended to the metropolitan 
 21.17  healthcare foundation's project LINC for consideration; 
 21.18     (2) working part time, up to 32 fewer hours than the 
 21.19  person's regular schedule per pay period, for the health care 
 21.20  facility organization, while maintaining full salary and 
 21.21  original benefits and a salary greater than the number of hours 
 21.22  worked; 
 21.23     (3) enrolled full time in a Minnesota school or college of 
 21.24  nursing to complete a baccalaureate or master's degree in 
 21.25  nursing; and 
 21.26     (4) a resident of the state of Minnesota. 
 21.27     The grant must be awarded for one academic year but is 
 21.28  renewable for a maximum of six semesters or nine quarters of 
 21.29  full-time study, or their equivalent.  The grant must be used 
 21.30  for tuition, fees, and books.  Priority in awarding grants shall 
 21.31  be given to persons with the greatest financial need.  The 
 21.32  health care facility may require its employee to commit to a 
 21.33  reasonable postprogram completion of employment at the health 
 21.34  care facility as a condition for the financial support the 
 21.35  facility provides. 
 21.36     Sec. 9.  Minnesota Statutes 1996, section 136A.233, 
 22.1   subdivision 2, is amended to read: 
 22.2      Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
 22.3   to 136A.233, the words defined in this subdivision have the 
 22.4   meanings ascribed to them. 
 22.5      (a) "Eligible student" means a Minnesota resident enrolled 
 22.6   or intending to enroll at least half time in a degree, diploma, 
 22.7   or certificate program in a Minnesota post-secondary institution.
 22.8      (b) "Minnesota resident" means a student who meets the 
 22.9   conditions in section 136A.101, subdivision 8. 
 22.10     (c) "Financial need" means the need for financial 
 22.11  assistance in order to attend a post-secondary institution as 
 22.12  determined by a post-secondary institution according to 
 22.13  guidelines established by the higher education services office. 
 22.14     (d) "Eligible employer" means any eligible post-secondary 
 22.15  institution and, any nonprofit, nonsectarian agency or state 
 22.16  institution located in the state of Minnesota, including state 
 22.17  hospitals, and also includes a handicapped person or a person 
 22.18  over 65 who employs a student to provide personal services in or 
 22.19  about the person's residence of the handicapped person or the 
 22.20  person over 65, or a private, for-profit employer employing a 
 22.21  student as an intern in a position directly related to the 
 22.22  student's field of study that will enhance the student's 
 22.23  knowledge and skills in that field.  
 22.24     (e) "Eligible post-secondary institution" means any 
 22.25  post-secondary institution eligible for participation in the 
 22.26  Minnesota state grant program as specified in section 136A.101, 
 22.27  subdivision 4. 
 22.28     (f) "Independent student" has the meaning given it in the 
 22.29  Higher Education Act of 1965, United States Code, title 20, 
 22.30  section 1070a-6, and applicable regulations. 
 22.31     (g) "Half-time" for undergraduates has the meaning given in 
 22.32  section 136A.101, subdivision 7b, and for graduate students is 
 22.33  defined by the institution. 
 22.34     Sec. 10.  Minnesota Statutes 1996, section 136A.233, 
 22.35  subdivision 3, is amended to read: 
 22.36     Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
 23.1   eligible students by post-secondary institutions as provided in 
 23.2   this subdivision. 
 23.3      (a) Students shall be selected for participation in the 
 23.4   program by the post-secondary institution on the basis of 
 23.5   student financial need. 
 23.6      (b) In selecting students for participation, priority must 
 23.7   be given to students enrolled for at least 12 credits. 
 23.8      (c) Students will be paid for hours actually worked and the 
 23.9   maximum hourly rate of pay shall not exceed the maximum hourly 
 23.10  rate of pay permitted under the federal college work-study 
 23.11  program. 
 23.12     (d) Minimum pay rates will be determined by an applicable 
 23.13  federal or state law. 
 23.14     (e) The office shall annually establish a minimum 
 23.15  percentage rate of student compensation to be paid by an 
 23.16  eligible employer. 
 23.17     (f) Each post-secondary institution receiving money for 
 23.18  state work-study grants shall make a reasonable effort to place 
 23.19  work-study students in employment with eligible employers 
 23.20  outside the institution.  However, a public employer other than 
 23.21  the institution may not terminate, lay off, or reduce the 
 23.22  working hours of a permanent employee for the purpose of hiring 
 23.23  a work-study student, or replace a permanent employee who is on 
 23.24  layoff from the same or substantially the same job by hiring a 
 23.25  work-study student. 
 23.26     (g) The percent of the institution's work-study allocation 
 23.27  provided to graduate students shall not exceed the percent of 
 23.28  graduate student enrollment at the participating institution. 
 23.29     (h) An institution may use up to 30 percent of its 
 23.30  allocation for student internships with private, for-profit 
 23.31  employers. 
 23.32     Sec. 11.  Minnesota Statutes 1996, section 136A.233, is 
 23.33  amended by adding a subdivision to read: 
 23.34     Subd. 4.  [COOPERATION WITH LOCAL SCHOOLS.] Each campus 
 23.35  using the state work study program is encouraged to cooperate 
 23.36  with its local public elementary and secondary schools to place 
 24.1   college work study students in activities in the schools, such 
 24.2   as tutoring.  Students must be placed in meaningful activities 
 24.3   that directly assist students in kindergarten through grade 12 
 24.4   in meeting graduation standards including the profiles of 
 24.5   learning.  College students shall work under direct supervision; 
 24.6   therefore, school hiring authorities are not required to request 
 24.7   criminal background checks on these students under section 
 24.8   120.1045. 
 24.9      Sec. 12.  [136A.241] [EDVEST PROGRAM ESTABLISHED.] 
 24.10     An EdVest savings program is established.  In establishing 
 24.11  this program, the legislature seeks to encourage individuals to 
 24.12  save for post-secondary education by: 
 24.13     (1) providing a qualified state tuition program under 
 24.14  federal tax law; 
 24.15     (2) providing matching grants for contributions to the 
 24.16  program by low- and middle-income families; and 
 24.17     (3) by encouraging individuals, foundations, and businesses 
 24.18  to provide additional grants to participating students. 
 24.19     Sec. 13.  [136A.242] [DEFINITIONS.] 
 24.20     Subdivision 1.  [GENERAL.] For purposes of sections 
 24.21  136A.241 to 136A.245, the following terms have the meanings 
 24.22  given. 
 24.23     Subd. 2.  [ADJUSTED GROSS INCOME.] "Adjusted gross income" 
 24.24  means adjusted gross income as defined in section 62 of the 
 24.25  Internal Revenue Code. 
 24.26     Subd. 3.  [BENEFICIARY.] "Beneficiary" means the designated 
 24.27  beneficiary for the account, as defined in section 529(e)(1) of 
 24.28  the Internal Revenue Code. 
 24.29     Subd. 4.  [BOARD.] "Board" means the state board of 
 24.30  investment. 
 24.31     Subd. 5.  [DIRECTOR.] "Director" means the director of the 
 24.32  higher education services office. 
 24.33     Subd. 6.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 24.34  the executive director of the state board of investment. 
 24.35     Subd. 7.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
 24.36  means the Internal Revenue Code of 1986, as amended. 
 25.1      Subd. 8.  [OFFICE.] "Office" means the higher education 
 25.2   services office. 
 25.3      Subd. 9.  [PROGRAM.] "Program" or "EdVest" refers to the 
 25.4   program established under sections 136A.241 to 136A.245. 
 25.5      Sec. 14.  [136A.243] [HIGHER EDUCATION SERVICES OFFICE.] 
 25.6      Subdivision 1.  [RESPONSIBILITIES.] (a) The director shall 
 25.7   establish the rules, terms, and conditions for the program, 
 25.8   subject to the requirements of sections 136A.241 to 136A.245. 
 25.9      (b) The director shall prescribe the application forms, 
 25.10  procedures, and other requirements that apply to the program. 
 25.11     Subd. 2.  [ACCOUNTS-TYPE PROGRAM.] The office must 
 25.12  establish the program and the program must be operated as an 
 25.13  accounts-type program that permits individuals to save for 
 25.14  qualified higher education costs incurred at any institution, 
 25.15  regardless of whether it is private or public or whether it is 
 25.16  located within or outside of this state.  A separate account 
 25.17  must be maintained for each beneficiary for whom contributions 
 25.18  are made. 
 25.19     Subd. 3.  [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In 
 25.20  designing and establishing the program's requirements and in 
 25.21  negotiating or entering contracts with third parties under 
 25.22  subdivision 8, the director shall consult with the executive 
 25.23  director. 
 25.24     Subd. 4.  [PROGRAM TO COMPLY WITH FEDERAL LAW.] The 
 25.25  director shall take steps to ensure that the program meets the 
 25.26  requirements for a qualified state tuition program under section 
 25.27  529 of the Internal Revenue Code.  The director may request a 
 25.28  private letter ruling or rulings from the Internal Revenue 
 25.29  Service or take any other steps to ensure that the program 
 25.30  qualifies under section 529 of the Internal Revenue Code or 
 25.31  other relevant provisions of federal law. 
 25.32     Subd. 5.  [MINIMUM PENALTY.] In establishing the terms of 
 25.33  the program, the office must provide that refunds of amounts in 
 25.34  an account are subject to a minimum penalty, as required by 
 25.35  section 529(b)(3) of the Internal Revenue Code.  If the refunds 
 25.36  or payments are not used for qualified higher education expenses 
 26.1   of the designated beneficiary, this penalty must equal, at 
 26.2   least, the proportionate amount of any matching grants deposited 
 26.3   in the account under section 136A.245 and the investment return 
 26.4   on the grants, plus an additional penalty that meets the 
 26.5   requirement of federal law. 
 26.6      Subd. 6.  [THREE-YEAR PERIOD FOR WITHDRAWAL OF GRANTS.] A 
 26.7   matching grant deposited in the account under section 136A.245 
 26.8   may not be withdrawn within three years of the establishment of 
 26.9   the account of the beneficiary.  In calculating the three-year 
 26.10  period, the period held in another account is included, if the 
 26.11  account includes a rollover from another account under section 
 26.12  529(c)(3)(C) of the Internal Revenue Code. 
 26.13     Subd. 7.  [MARKETING.] The director shall make parents and 
 26.14  other interested individuals aware of the availability and 
 26.15  advantages of the program as a way to save for higher education 
 26.16  costs.  The cost of these promotional efforts must be paid 
 26.17  entirely from state general fund appropriations and may not be 
 26.18  funded with fees imposed on participants. 
 26.19     Subd. 8.  [ADMINISTRATION.] The director shall administer 
 26.20  the program, including accepting and processing applications, 
 26.21  maintaining account records, making payments, making matching 
 26.22  grants under section 136A.245, and undertaking any other 
 26.23  necessary tasks to administer the program.  The office may 
 26.24  contract with one or more third parties to carry out some or all 
 26.25  of these administrative duties, including promotion and 
 26.26  marketing of the program.  The office and the board may jointly 
 26.27  contract with third-party providers, if the office and board 
 26.28  determine that it is desirable to contract with the same entity 
 26.29  or entities for administration and investment management. 
 26.30     Subd. 9.  [AUTHORITY TO IMPOSE FEES.] The office may impose 
 26.31  fees on participants in the program to recover the costs of 
 26.32  administration.  The office must use its best efforts to keep 
 26.33  these fees as low as possible, consistent with efficient 
 26.34  administration, so that the returns on savings invested in the 
 26.35  program will be as high as possible. 
 26.36     Sec. 15.  [136A.244] [INVESTMENT OF ACCOUNTS.] 
 27.1      Subdivision 1.  [STATE BOARD TO INVEST.] The state board of 
 27.2   investment shall invest the money deposited in accounts in the 
 27.3   program. 
 27.4      Subd. 2.  [PERMITTED INVESTMENTS.] The board may invest the 
 27.5   accounts in any permitted investment under section 11A.24.  
 27.6      Subd. 3.  [CONTRACTING AUTHORITY.] The board may contract 
 27.7   with one or more third parties for investment management, 
 27.8   recordkeeping, or other services in connection with investing 
 27.9   the accounts.  The board and office may jointly contract with 
 27.10  third-party providers, if the office and board determine that it 
 27.11  is desirable to contract with the same entity or entities for 
 27.12  administration and investment management. 
 27.13     Subd. 4.  [FEES.] The board may impose fees on participants 
 27.14  in the program to recover the cost of investment management and 
 27.15  related tasks for the program.  The board must use its best 
 27.16  efforts to keep these fees as low as possible, consistent with 
 27.17  high quality investment management, so that the returns on 
 27.18  savings invested in the program will be as high as possible. 
 27.19     Sec. 16.  [136A.245] [MATCHING GRANTS.] 
 27.20     Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By March 1 
 27.21  of each year, a state matching grant must be added to each 
 27.22  account established under the program if the following 
 27.23  conditions are met: 
 27.24     (1) the contributor applies, in writing in a form 
 27.25  prescribed by the director, for a matching grant; 
 27.26     (2) a minimum contribution of $200 was made during the 
 27.27  preceding calendar year; and 
 27.28     (3) the family income of the beneficiary did not exceed 
 27.29  $80,000. 
 27.30     Subd. 2.  [FAMILY INCOME.] For purposes of this section, 
 27.31  "family income" means: 
 27.32     (1) if the beneficiary is under age 25, the combined 
 27.33  adjusted gross income of the beneficiary's parents as reported 
 27.34  on the federal tax return or returns for the most recently 
 27.35  available tax year; or 
 27.36     (2) if the beneficiary is age 25 or older, the combined 
 28.1   adjusted gross income of the beneficiary and spouse, if any. 
 28.2      Subd. 3.  [AMOUNT OF MATCHING GRANT.] The amount of the 
 28.3   matching grant for a beneficiary equals: 
 28.4      (1) if the beneficiary's family income is $50,000 or less, 
 28.5   15 percent of the sum of the contributions made to the 
 28.6   beneficiary's account during the calendar year, not to exceed 
 28.7   $300; and 
 28.8      (2) if the beneficiary's family income is more than $50,000 
 28.9   but not more than $80,000, five percent of the sum of the 
 28.10  contributions made to the beneficiary's account during the 
 28.11  calendar year, not to exceed $300. 
 28.12     Subd. 4.  [BUDGET LIMIT.] If the total amount of matching 
 28.13  grants determined under subdivision 3 exceeds the amount of the 
 28.14  appropriation for the fiscal year, the director shall 
 28.15  proportionately reduce each grant so that the total equals the 
 28.16  available appropriation. 
 28.17     Subd. 5.  [COORDINATION WITH DEPARTMENT OF REVENUE.] In 
 28.18  administering matching grants, the director may require that 
 28.19  applicants submit sufficient information to determine whether 
 28.20  the beneficiary qualifies for a grant, including the Social 
 28.21  Security numbers, family income information, and any other 
 28.22  information the director determines necessary.  The applicant or 
 28.23  applicants may authorize the director to request information 
 28.24  from the commissioner of revenue to verify eligibility for a 
 28.25  grant from tax information on file with the commissioner or 
 28.26  obtained from the Internal Revenue Service.  If this method is 
 28.27  used and the taxpayer has authorized a release of the 
 28.28  information to the director, the commissioner of revenue may 
 28.29  verify that the beneficiary is eligible for a grant at a 
 28.30  specified rate and maximum and disclose that information to the 
 28.31  director, notwithstanding the provisions of chapter 270B. 
 28.32     Subd. 6.  [PRIVATE CONTRIBUTIONS.] (a) The office may 
 28.33  solicit and accept contributions from private corporations, 
 28.34  other businesses, foundations, or individuals to provide: 
 28.35     (1) matching grants under this section in addition to those 
 28.36  funded with direct appropriations; or 
 29.1      (2) grants to students who withdraw money from accounts 
 29.2   established under the program. 
 29.3      (b) Amounts contributed may only be used for those 
 29.4   purposes.  Amounts contributed are appropriated to the director 
 29.5   to make grants. 
 29.6      (c) Contributors may designate a specific field of study, 
 29.7   geographic area, or other criteria that govern use of the grants 
 29.8   funded with their contributions, but may not discriminate on the 
 29.9   basis of race, ethnicity, or gender.  The office may refuse 
 29.10  contributions that are subject, in the judgment of the director, 
 29.11  to unacceptable conditions on their use. 
 29.12     Sec. 17.  Minnesota Statutes 1996, section 181.06, 
 29.13  subdivision 2, is amended to read: 
 29.14     Subd. 2.  [PAYROLL DEDUCTIONS.] A written contract may be 
 29.15  entered into between an employer and an employee wherein the 
 29.16  employee authorizes the employer to make payroll deductions for 
 29.17  the purpose of paying union dues, premiums of any life 
 29.18  insurance, hospitalization and surgical insurance, group 
 29.19  accident and health insurance, group term life insurance, group 
 29.20  annuities or contributions to credit unions or a community chest 
 29.21  fund, a local arts council, a local science council or a local 
 29.22  arts and science council, or Minnesota benefit association, a 
 29.23  federally or state registered political action committee, or 
 29.24  participation in any employee stock purchase plan or savings 
 29.25  plan for periods longer than 60 days, including gopher state 
 29.26  bonds established under section 16A.645. 
 29.27     Sec. 18.  [STUDENT FEES.] 
 29.28     By December 1, 1998, the higher education services office 
 29.29  shall provide information to the public post-secondary boards 
 29.30  advising them how to maximize financial aid when establishing 
 29.31  student fees. 
 29.32     Sec. 19.  [NATIONAL SERVICE SCHOLARS PROGRAM.] 
 29.33     A national service scholars program is established under 
 29.34  the administration of the higher education services office to 
 29.35  match scholarship grants made under the National Service 
 29.36  Scholars program of the Corporation for National Service to 
 30.1   students attending Minnesota high schools and who will attend a 
 30.2   Minnesota post-secondary institution.  Not more than one 
 30.3   matching grant of $500 may be made for each high school per 
 30.4   year.  The state money shall be available until June 30, 1999, 
 30.5   if federal money is available. 
 30.6      Sec. 20.  [REVISOR'S INSTRUCTION.] 
 30.7      The revisor of statutes shall renumber Minnesota Statutes, 
 30.8   section 136A.1355, in an appropriate place in Minnesota 
 30.9   Statutes, chapter 144. 
 30.10     Sec. 21.  [EFFECTIVE DATE.] 
 30.11     Section 5 is effective the day following final enactment.  
 30.12  Sections 1, 2, and 17 are effective for the sale of general 
 30.13  obligation bonds after July 1, 1998. 
 30.14                             ARTICLE 3
 30.15                          OTHER PROVISIONS
 30.16     Section 1.  Minnesota Statutes 1996, section 16A.69, 
 30.17  subdivision 2, is amended to read: 
 30.18     Subd. 2.  [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of 
 30.19  final contracts for the completion of a project for construction 
 30.20  or other permanent improvement, or upon the abandonment of the 
 30.21  project, the agency to whom the appropriation was made may 
 30.22  transfer the unencumbered balance in the project account to 
 30.23  another project enumerated in the same section of that 
 30.24  appropriation act.  The transfer must be made only to cover bids 
 30.25  for the other project that were higher than was estimated when 
 30.26  the appropriation for the other project was made and not to 
 30.27  cover an expansion of the other project.  The money transferred 
 30.28  under this section is appropriated for the purposes for which 
 30.29  transferred.  For transfers for technical colleges by the state 
 30.30  board of technical of trustees of the Minnesota state colleges 
 30.31  and universities, the total cost of both projects and the 
 30.32  required local share for both projects are adjusted 
 30.33  accordingly.  The agency proposing a transfer shall report to 
 30.34  the chair of the senate finance committee and the chair of the 
 30.35  house of representatives ways and means committee before the 
 30.36  transfer is made under this subdivision. 
 31.1      Sec. 2.  [41D.01] [MINNESOTA AGRICULTURE EDUCATION 
 31.2   LEADERSHIP COUNCIL.] 
 31.3      Subdivision 1.  [ESTABLISHMENT; MEMBERSHIP.] The Minnesota 
 31.4   agriculture education leadership council is established.  The 
 31.5   council is composed of 16 members as follows: 
 31.6      (1) the chair of the University of Minnesota agricultural 
 31.7   education program; 
 31.8      (2) a representative of the commissioner of children, 
 31.9   families, and learning; 
 31.10     (3) a representative of the Minnesota state colleges and 
 31.11  universities recommended by the chancellor; 
 31.12     (4) the president and the president-elect of the Minnesota 
 31.13  vocational agriculture instructors association; 
 31.14     (5) a representative of the Future Farmers of America 
 31.15  Foundation; 
 31.16     (6) a representative of the commissioner of agriculture; 
 31.17     (7) the dean of the college of agriculture, food, and 
 31.18  environmental sciences at the University of Minnesota; 
 31.19     (8) two members representing agriculture education and 
 31.20  agriculture business appointed by the governor; 
 31.21     (9) the chair of the senate committee on agriculture and 
 31.22  rural development; 
 31.23     (10) the chair of the house committee on agriculture; 
 31.24     (11) the ranking minority member of the senate committee on 
 31.25  agriculture and rural development, and a member of the senate 
 31.26  committee on children, families and learning designated by the 
 31.27  subcommittee on committees of the committee on rules and 
 31.28  administration; and 
 31.29     (12) the ranking minority member of the house agriculture 
 31.30  committee, and a member of the house education committee 
 31.31  designated by the speaker. 
 31.32     Subd. 2.  [POWERS AND DUTIES.] Specific powers and duties 
 31.33  of the council are to: 
 31.34     (1) develop recommendations to the legislature and the 
 31.35  governor and provide review for agriculture education programs 
 31.36  in Minnesota; 
 32.1      (2) establish a grant program to foster and encourage the 
 32.2   development of secondary and post-secondary agriculture 
 32.3   education programs; 
 32.4      (3) coordinate and articulate Minnesota's agriculture 
 32.5   education policy across all programs and institutions; 
 32.6      (4) identify the critical needs for agriculture educators; 
 32.7      (5) serve as a link between the agribusiness sector and the 
 32.8   agriculture education system to communicate mutual concerns, 
 32.9   needs, and projections; 
 32.10     (6) establish and maintain an increased awareness of 
 32.11  agriculture education and its continued need to all citizens of 
 32.12  Minnesota; 
 32.13     (7) operate the Minnesota center for agriculture education 
 32.14  created in section 41D.03; 
 32.15     (8) gain broad public support for agriculture education in 
 32.16  Minnesota; and 
 32.17     (9) report annually on its activities to the senate 
 32.18  agriculture and rural development committee and the house 
 32.19  agriculture committee. 
 32.20     Subd. 3.  [COUNCIL OFFICERS; TERMS AND COMPENSATION OF 
 32.21  APPOINTEES; STAFF.] (a) The chair of the senate agriculture and 
 32.22  rural development committee and the chair of the house 
 32.23  agriculture committee are the cochairs of the council. 
 32.24     (b) The council's membership terms, compensation, filling 
 32.25  of vacancies, and removal of members are as provided in section 
 32.26  15.0575. 
 32.27     (c) The council may employ an executive director and any 
 32.28  other staff to carry out its functions. 
 32.29     Subd. 4.  [EXPIRATION.] This section expires on June 30, 
 32.30  2002. 
 32.31     Sec. 3.  [41D.02] [AGRICULTURE EDUCATION GRANT PROGRAM.] 
 32.32     Subdivision 1.  [ESTABLISHMENT.] The Minnesota agriculture 
 32.33  education leadership council shall establish a program to 
 32.34  provide grants under subdivisions 2 and 3 to educational 
 32.35  institutions and other appropriate entities for secondary and 
 32.36  post-secondary agriculture education programs. 
 33.1      Subd. 2.  [SECONDARY AGRICULTURAL EDUCATION.] The council 
 33.2   may provide grants for: 
 33.3      (1) planning and establishment costs for secondary 
 33.4   agriculture education programs; 
 33.5      (2) new instructional and communication technologies; and 
 33.6      (3) curriculum updates. 
 33.7      Subd. 3.  [POST-SECONDARY EDUCATION.] The council may 
 33.8   provide grants for: 
 33.9      (1) new instructional and communication technologies; and 
 33.10     (2) special project funding, including programming, 
 33.11  in-service training, and support staff. 
 33.12     Sec. 4.  [41D.03] [MINNESOTA CENTER FOR AGRICULTURE 
 33.13  EDUCATION.] 
 33.14     Subdivision 1.  [GOVERNANCE.] The Minnesota center for 
 33.15  agriculture education is governed by the Minnesota agriculture 
 33.16  education leadership council. 
 33.17     Subd. 2.  [POWERS AND DUTIES OF COUNCIL.] (a) The council 
 33.18  has the powers necessary for the care, management, and control 
 33.19  of the Minnesota center for agriculture education and all its 
 33.20  real and personal property.  The powers shall include, but are 
 33.21  not limited to, those listed in this subdivision. 
 33.22     (b) The council may employ necessary employees, and 
 33.23  contract for other services to ensure the efficient operation of 
 33.24  the center for agriculture education. 
 33.25     (c) The council may receive and award grants.  The council 
 33.26  may establish a charitable foundation and accept, in trust or 
 33.27  otherwise, any gift, grant, bequest, or devise for educational 
 33.28  purposes and hold, manage, invest, and dispose of them and the 
 33.29  proceeds and income of them according to the terms and 
 33.30  conditions of the gift, grant, bequest, or devise and its 
 33.31  acceptance.  The council shall adopt internal procedures to 
 33.32  administer and monitor aids and grants. 
 33.33     (d) The council may establish or coordinate evening, 
 33.34  continuing education, and summer programs for teachers and 
 33.35  pupils. 
 33.36     (e) The council may determine the location for the 
 34.1   Minnesota center for agriculture education and any additional 
 34.2   facilities related to the center, including the authority to 
 34.3   lease a temporary facility. 
 34.4      (f) The council may enter into contracts with other public 
 34.5   and private agencies and institutions for building maintenance 
 34.6   services if it determines that these services could be provided 
 34.7   more efficiently and less expensively by a contractor than by 
 34.8   the council itself.  The council may also enter into contracts 
 34.9   with public or private agencies and institutions, school 
 34.10  districts or combinations of school districts, or educational 
 34.11  cooperative service units to provide supplemental educational 
 34.12  instruction and services. 
 34.13     Subd. 3.  [CENTER ACCOUNT.] There is established in the 
 34.14  state treasury a center for agriculture education account in the 
 34.15  special revenue fund.  All money collected by the council, 
 34.16  including rental income, shall be deposited in the account.  
 34.17  Money in the account, including interest earned, is appropriated 
 34.18  to the council for the operation of its services and programs. 
 34.19     Subd. 4.  [EMPLOYEES.] (a) The council shall employ persons 
 34.20  who shall serve in the unclassified service. 
 34.21     (b) The employees hired under this subdivision and any 
 34.22  other necessary employees hired by the council shall be state 
 34.23  employees in the executive branch. 
 34.24     Subd. 5.  [POLICIES.] The council may adopt administrative 
 34.25  policies about the operation of the center. 
 34.26     Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
 34.27  SPACE.] Public post-secondary institutions shall provide space 
 34.28  for the Minnesota center for agriculture education at a 
 34.29  reasonable cost to the center to the extent that space is 
 34.30  available at the public post-secondary institutions. 
 34.31     Subd. 7.  [PURCHASING INSTRUCTIONAL ITEMS.] Technical 
 34.32  educational equipment may be procured for programs of the 
 34.33  Minnesota center for agriculture education by the council either 
 34.34  by brand designation or in accordance with standards and 
 34.35  specifications the council may adopt, notwithstanding chapter 
 34.36  16B. 
 35.1      Sec. 5.  [41D.04] [RESOURCE, MAGNET, AND OUTREACH 
 35.2   PROGRAMS.] 
 35.3      Subdivision 1.  [RESOURCE AND OUTREACH.] The center shall 
 35.4   offer resource and outreach programs and services statewide 
 35.5   aimed at the enhancement of agriculture education opportunities 
 35.6   for pupils in elementary and secondary school. 
 35.7      Subd. 2.  [CENTER RESPONSIBILITIES.] The center shall: 
 35.8      (1) provide information and technical services to 
 35.9   agriculture teachers, professional agriculture organizations, 
 35.10  school districts, and the department of children, families, and 
 35.11  learning; 
 35.12     (2) gather and conduct research in agriculture education; 
 35.13     (3) design and promote agriculture education opportunities 
 35.14  for all Minnesota pupils in elementary and secondary schools; 
 35.15  and 
 35.16     (4) serve as liaison for the department of children, 
 35.17  families, and learning to national organizations for agriculture 
 35.18  education. 
 35.19     Sec. 6.  Minnesota Statutes 1996, section 125.1385, 
 35.20  subdivision 2, is amended to read: 
 35.21     Subd. 2.  [COMPENSATION.] State money for faculty exchange 
 35.22  programs is to compensate for expenses that are unavoidable and 
 35.23  beyond the normal living expenses exchange participants would 
 35.24  incur if they were not involved in this exchange.  The state 
 35.25  university board of trustees of the Minnesota state colleges and 
 35.26  universities, the board of regents, or of the University of 
 35.27  Minnesota, and their respective campuses, in conjunction with 
 35.28  the participating school districts, must control costs for all 
 35.29  participants as much as possible, through means such as 
 35.30  arranging housing exchanges, providing campus housing, and 
 35.31  providing university, state, or school district cars for 
 35.32  transportation.  The boards and campuses may seek other sources 
 35.33  of funding to supplement these appropriations, if necessary. 
 35.34     Sec. 7.  Minnesota Statutes 1996, section 126.56, 
 35.35  subdivision 2, is amended to read: 
 35.36     Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
 36.1   scholarship, a student shall: 
 36.2      (1) be a United States citizen or permanent resident of the 
 36.3   United States; 
 36.4      (2) be a resident of Minnesota; 
 36.5      (3) attend an eligible program; 
 36.6      (4) have completed at least one year of secondary school 
 36.7   but not have graduated from high school; 
 36.8      (5) have earned at least a B average or its equivalent 
 36.9   during the semester or quarter prior to application, or have 
 36.10  earned at least a B average or its equivalent during the 
 36.11  semester or quarter prior to application in the academic subject 
 36.12  area applicable to the summer program the student wishes to 
 36.13  attend; and 
 36.14     (6) demonstrate need for financial assistance; and 
 36.15     (7) be 19 years of age or younger. 
 36.16     Sec. 8.  Minnesota Statutes 1996, section 126.56, 
 36.17  subdivision 4a, is amended to read: 
 36.18     Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
 36.19  only for an eligible program.  To be eligible, a program must: 
 36.20     (1) provide, as its primary purpose, academic instruction 
 36.21  for student enrichment in curricular areas including, but not 
 36.22  limited to, communications, humanities, social studies, social 
 36.23  science, science, mathematics, art, or foreign languages; 
 36.24     (2) not be offered for credit to post-secondary students; 
 36.25     (3) not provide remedial instruction; 
 36.26     (4) meet any other program requirements established by the 
 36.27  state board of education and the higher education services 
 36.28  office; and 
 36.29     (5) be approved by the commissioner director of the higher 
 36.30  education services office.  
 36.31     Sec. 9.  Minnesota Statutes 1996, section 126.56, 
 36.32  subdivision 7, is amended to read: 
 36.33     Subd. 7.  [ADMINISTRATION.] The higher education services 
 36.34  office and commissioner shall determine the time and manner for 
 36.35  scholarship applications, awards, and program approval. 
 36.36     Sec. 10.  Minnesota Statutes 1996, section 135A.052, 
 37.1   subdivision 1, is amended to read: 
 37.2      Subdivision 1.  [STATEMENT OF MISSIONS.] The legislature 
 37.3   recognizes each type of public post-secondary system institution 
 37.4   to have a distinctive mission within the overall provision of 
 37.5   public higher education in the state and a responsibility to 
 37.6   cooperate with the each other systems.  These missions are as 
 37.7   follows: 
 37.8      (1) the technical college system colleges shall offer 
 37.9   vocational training and education to prepare students for 
 37.10  skilled occupations that do not require a baccalaureate degree; 
 37.11     (2) the community college system colleges shall offer lower 
 37.12  division instruction in academic programs, occupational programs 
 37.13  in which all credits earned will be accepted for transfer to a 
 37.14  baccalaureate degree in the same field of study, and remedial 
 37.15  studies, for students transferring to baccalaureate institutions 
 37.16  and for those seeking associate degrees; 
 37.17     (3) consolidated community technical colleges shall offer 
 37.18  the same types of instruction, programs, certificates, diplomas, 
 37.19  and degrees as the technical colleges and community colleges 
 37.20  offer; 
 37.21     (4) the state university system universities shall offer 
 37.22  undergraduate and graduate instruction through the master's 
 37.23  degree, including specialist certificates, in the liberal arts 
 37.24  and sciences and professional education; and 
 37.25     (4) (5) the University of Minnesota shall offer 
 37.26  undergraduate, graduate, and professional instruction through 
 37.27  the doctoral degree, and shall be the primary state supported 
 37.28  academic agency for research and extension services. 
 37.29     It is part of the mission of each system that within the 
 37.30  system's resources the system's governing board and chancellor 
 37.31  or president shall endeavor to: 
 37.32     (a) prevent the waste or unnecessary spending of public 
 37.33  money; 
 37.34     (b) use innovative fiscal and human resource practices to 
 37.35  manage the state's resources and operate the system as 
 37.36  efficiently as possible; 
 38.1      (c) coordinate the system's activities wherever appropriate 
 38.2   with the activities of the other systems system and governmental 
 38.3   agencies; 
 38.4      (d) use technology where appropriate to increase system 
 38.5   productivity, improve customer service, increase public access 
 38.6   to information about the system, and increase public 
 38.7   participation in the business of the system; 
 38.8      (e) utilize constructive and cooperative labor-management 
 38.9   practices to the extent otherwise required by chapters 43A and 
 38.10  179A; and 
 38.11     (f) recommend to the legislature appropriate changes in law 
 38.12  necessary to carry out the mission of the system. 
 38.13     Sec. 11.  Minnesota Statutes 1996, section 136A.03, is 
 38.14  amended to read: 
 38.15     136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
 38.16     The director of the higher education services office shall 
 38.17  possess the powers and perform the duties as prescribed by the 
 38.18  higher education services council and shall serve in the 
 38.19  unclassified service of the state civil service.  The director, 
 38.20  or the director's designated representative, on behalf of the 
 38.21  office is authorized to sign contracts and execute all 
 38.22  instruments necessary or appropriate to carry out the purposes 
 38.23  of sections 136A.01 to 136A.178 for the office.  The salary of 
 38.24  the director shall be established by the higher education 
 38.25  services council according to section 15A.081, subdivision 1.  
 38.26  The director shall be a person qualified by training or 
 38.27  experience in the field of higher education or in financial aid 
 38.28  administration.  The director may appoint other professional 
 38.29  employees who shall serve in the unclassified service of the 
 38.30  state civil service.  All other employees shall be in the 
 38.31  classified civil service.  
 38.32     An officer or professional employee in the unclassified 
 38.33  service as provided in this section is a person who has studied 
 38.34  higher education or a related field at the graduate level or has 
 38.35  similar experience and who is qualified for a career in 
 38.36  financial aid and other aspects of higher education and for 
 39.1   activities in keeping with the planning and administrative 
 39.2   responsibilities of the office and who is appointed to assume 
 39.3   responsibility for administration of educational programs or 
 39.4   research in matters of higher education. 
 39.5      Sec. 12.  Minnesota Statutes 1996, section 136A.16, 
 39.6   subdivision 8, is amended to read: 
 39.7      Subd. 8.  Money made available to the office that is not 
 39.8   immediately needed for the purposes of sections 136A.15 to 
 39.9   136A.1702 may be invested by the office.  The money must be 
 39.10  invested in bonds, certificates of indebtedness, and other fixed 
 39.11  income securities, except preferred stocks, which are legal 
 39.12  investments for the permanent school fund.  The money may also 
 39.13  be invested in prime quality commercial paper that is eligible 
 39.14  for investment in the state employees retirement fund.  All 
 39.15  interest and profits from such investments inure to the benefit 
 39.16  of the office or may be pledged for security of bonds issued by 
 39.17  the office or its predecessor, the Minnesota higher education 
 39.18  coordinating board. 
 39.19     Sec. 13.  Minnesota Statutes 1996, section 136A.16, is 
 39.20  amended by adding a subdivision to read: 
 39.21     Subd. 13.  The office may sue and be sued. 
 39.22     Sec. 14.  Minnesota Statutes 1996, section 136A.16, is 
 39.23  amended by adding a subdivision to read: 
 39.24     Subd. 14.  The office may sell at public or private sale, 
 39.25  at the price or prices determined by the office, any note or 
 39.26  other instrument or obligation evidencing or securing a loan 
 39.27  made by the office or its predecessor, the Minnesota higher 
 39.28  education coordinating board. 
 39.29     Sec. 15.  Minnesota Statutes 1996, section 136A.16, is 
 39.30  amended by adding a subdivision to read: 
 39.31     Subd. 15.  The office may obtain municipal bond insurance, 
 39.32  letters of credit, surety obligations, or similar agreements 
 39.33  from financial institutions. 
 39.34     Sec. 16.  Minnesota Statutes 1996, section 136A.171, is 
 39.35  amended to read: 
 39.36     136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.] 
 40.1      The higher education services office may issue revenue 
 40.2   bonds to obtain funds for loans made in accordance with the 
 40.3   provisions of this chapter.  The aggregate amount of revenue 
 40.4   bonds, issued directly by the office, outstanding at any one 
 40.5   time, not including refunded bonds or otherwise defeased or 
 40.6   discharged bonds, shall not exceed $550,000,000.  Proceeds from 
 40.7   the issuance of bonds may be held and invested by the office 
 40.8   pending disbursement in the form of loans.  All interest and 
 40.9   profits from the investments shall inure to the benefit of the 
 40.10  office and shall be available to the board office for the same 
 40.11  purposes as the proceeds from the sale of revenue bonds 
 40.12  including, but not limited to, costs incurred in administering 
 40.13  loans under this chapter and loan reserve funds. 
 40.14     Sec. 17.  Minnesota Statutes 1996, section 136A.173, 
 40.15  subdivision 3, is amended to read: 
 40.16     Subd. 3.  The revenue bonds may be issued as serial bonds 
 40.17  or as term bonds, or the office, in its discretion, may issue 
 40.18  bonds of both types.  The revenue bonds shall be authorized by 
 40.19  resolution of the members director of the office and shall bear 
 40.20  such date or dates, mature at such time or times, not exceeding 
 40.21  50 years from their respective dates, bear interest at such rate 
 40.22  or rates, payable at such time or times, be in denominations, be 
 40.23  in such form, either coupon or registered, carry such 
 40.24  registration privileges, be executed in such manner, be payable 
 40.25  in lawful money of the United States of America at such place or 
 40.26  places, and be subject to such terms of redemption, as such 
 40.27  resolution or resolutions may provide.  The revenue bonds or 
 40.28  notes may be sold at public or private sale for such price or 
 40.29  prices as the office shall determine.  Pending preparation of 
 40.30  the definitive bonds, the office may issue interim receipts or 
 40.31  certificates which shall be exchanged for such definite bonds. 
 40.32     Sec. 18.  Minnesota Statutes 1996, section 136A.29, 
 40.33  subdivision 9, is amended to read: 
 40.34     Subd. 9.  The authority is authorized and empowered to 
 40.35  issue revenue bonds whose aggregate principal amount at any time 
 40.36  shall not exceed $350,000,000 $500,000,000 and to issue notes, 
 41.1   bond anticipation notes, and revenue refunding bonds of the 
 41.2   authority under the provisions of sections 136A.25 to 136A.42, 
 41.3   to provide funds for acquiring, constructing, reconstructing, 
 41.4   enlarging, remodeling, renovating, improving, furnishing, or 
 41.5   equipping one or more projects or parts thereof. 
 41.6      Sec. 19.  Minnesota Statutes 1996, section 136F.28, 
 41.7   subdivision 2, is amended to read: 
 41.8      Subd. 2.  [DEFINITIONS.] For the purpose of this 
 41.9   section, the following terms have the meaning given to them: 
 41.10     (a) "Southwest Asia veteran" means a person who:  
 41.11     (1) served in the active military service in any branch of 
 41.12  the armed forces of the United States any time between August 1, 
 41.13  1990, and February 27, 1992; 
 41.14     (2) became eligible for the Southwest Asia Service Medal as 
 41.15  a result of the service; 
 41.16     (3) was a Minnesota resident at the time of induction into 
 41.17  the armed forces and for the one year immediately preceding 
 41.18  induction; and 
 41.19     (4) has been separated or discharged from active military 
 41.20  service under conditions other than dishonorable.  
 41.21     (b) "Technical college" means a technical college or 
 41.22  consolidated community technical college under the governance of 
 41.23  the Minnesota state colleges and universities. 
 41.24     Sec. 20.  Minnesota Statutes 1996, section 136F.32, is 
 41.25  amended to read: 
 41.26     136F.32 [DEGREES; DIPLOMAS; CERTIFICATES.] 
 41.27     Subdivision 1.  [APPROVAL.] The board may approve awarding 
 41.28  of appropriate certificates, diplomas, or degrees to persons who 
 41.29  complete a prescribed curriculum. 
 41.30     Subd. 2.  [TECHNICAL AND CONSOLIDATED TECHNICAL 
 41.31  COLLEGES.] A technical college or consolidated technical 
 41.32  community college shall offer students the option of pursuing 
 41.33  diplomas and certificates in each technical education program, 
 41.34  unless the board determines that this is not practicable for 
 41.35  certain programs.  All credits earned for a diploma or 
 41.36  certificate shall be applicable toward any available degree in 
 42.1   the same program. 
 42.2      Sec. 21.  Minnesota Statutes 1996, section 136F.49, is 
 42.3   amended to read: 
 42.4      136F.49 [LICENSURE.] 
 42.5      The board may shall adopt policies for licensure of 
 42.6   teaching personnel in technical colleges and for vocational 
 42.7   technical instructors teaching outside the Minnesota state 
 42.8   colleges and universities system.  The board may establish a 
 42.9   processing fee for the issuance, renewal, or extension of a 
 42.10  license. 
 42.11     Sec. 22.  Minnesota Statutes 1996, section 136F.581, 
 42.12  subdivision 2, is amended to read: 
 42.13     Subd. 2.  [POLICIES AND PROCEDURES.] The board shall 
 42.14  develop policies, and each college and university shall develop 
 42.15  procedures, for purchases and contracts that are consistent with 
 42.16  subdivision 1.  The policies and procedures shall be developed 
 42.17  through the system and campus labor management committees and 
 42.18  shall include provisions requiring the system and campuses to 
 42.19  determine that they cannot use available staff before 
 42.20  contracting with additional outside consultants or services.  In 
 42.21  addition, each college and university, in consultation with the 
 42.22  system office, shall develop procedures for those purchases and 
 42.23  contracts that can be accomplished by a college and university 
 42.24  without board approval.  The board policies must allow each 
 42.25  college and university the local authority to enter into 
 42.26  contracts for construction projects of up to $250,000 and to 
 42.27  make other purchases of up to $50,000, without receiving board 
 42.28  approval.  The board may allow a college or university local 
 42.29  authority to make purchases over $50,000 without receiving board 
 42.30  approval. 
 42.31     Sec. 23.  Minnesota Statutes 1996, section 136F.72, 
 42.32  subdivision 1, is amended to read: 
 42.33     Subdivision 1.  [ACTIVITY FUNDS.] The board may establish 
 42.34  in each state college and university a fund to be known as the 
 42.35  activity fund.  The purpose of these funds shall be to provide 
 42.36  for the administration of state college and university 
 43.1   activities designed for student recreational, social, welfare, 
 43.2   and educational pursuits supplemental to the regular curricular 
 43.3   offerings.  The activity funds shall encompass accounts for 
 43.4   student activities, student health services authorized college 
 43.5   and university agencies, authorized auxiliary 
 43.6   enterprises, federal, state, and private student loans financial 
 43.7   aid, gifts and endowments, and other accounts as the board may 
 43.8   prescribe.  
 43.9      Sec. 24.  Minnesota Statutes 1996, section 136F.80, is 
 43.10  amended to read: 
 43.11     136F.80 [GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.] 
 43.12     Subdivision 1.  [RECEIPT AND ACCEPTANCE.] The board may 
 43.13  apply for, receive, and accept on behalf of the state and for 
 43.14  the benefit of any state college or university any grant, gift, 
 43.15  bequest, devise, or endowment that any person, firm, 
 43.16  corporation, foundation, or association, or government agency 
 43.17  may make to the board for the purposes of the state colleges and 
 43.18  universities, or any federal, state, or private money made 
 43.19  available for the purpose of providing student financial aid at 
 43.20  the state colleges and universities.  The board may use any 
 43.21  money given to it or to any of the state colleges and 
 43.22  universities consistent with the terms and conditions under 
 43.23  which the money was received and for the purposes stated.  All 
 43.24  moneys received under this subdivision are appropriated to the 
 43.25  board for use in the colleges and universities and shall be 
 43.26  administered within the college and university activity funds.  
 43.27  These moneys shall not be taken into account in determining 
 43.28  appropriations or allocations.  All taxes and special 
 43.29  assessments constituting a lien on any real property received 
 43.30  and accepted by the board under this section shall be paid in 
 43.31  full before title is transferred to the state. 
 43.32     Subd. 2.  [DEPOSIT OF MONEY.] The board shall provide by 
 43.33  policy, in accordance with provisions of chapter 118 118A, for 
 43.34  the deposit of all money received or referred to under this 
 43.35  section.  Whenever the board shall by resolution determine that 
 43.36  there are moneys in the state college or university funds not 
 44.1   currently needed, the board may by resolution authorize and 
 44.2   direct the president of the college or university to invest a 
 44.3   specified amount in securities as are duly authorized as legal 
 44.4   investments for savings banks and trust companies.  Securities 
 44.5   so purchased shall be deposited and held for the board by any 
 44.6   bank or trust company authorized to do a banking business in 
 44.7   this state.  Notwithstanding the provisions of chapter 118 118A, 
 44.8   the state board of investment may invest assets of the board, 
 44.9   colleges, and universities when requested by the board, college, 
 44.10  or university. 
 44.11     Sec. 25.  [136F.81] [TRANSFER OF GIFTS.] 
 44.12     A college or university that receives a gift or bequest 
 44.13  that is intended for purposes performed by a foundation approved 
 44.14  under section 136F.46 may transfer the money to its foundation, 
 44.15  provided the money is used only for public purposes. 
 44.16     Sec. 26.  Minnesota Statutes 1996, section 137.022, 
 44.17  subdivision 2, is amended to read: 
 44.18     Subd. 2.  [INCOME.] The All income from the permanent 
 44.19  university fund is appropriated annually to the board of 
 44.20  regents.  Authority over this income is vested solely in the 
 44.21  board but must be used by the board directly to enhance the 
 44.22  mission of the university.  This appropriation of income must 
 44.23  not be used to reduce other appropriations made to the board of 
 44.24  regents.  The determination of this income shall be based on the 
 44.25  procedures detailed in section 11A.16, subdivision 5, or 11A.12, 
 44.26  subdivision 2. 
 44.27     Sec. 27.  Minnesota Statutes 1996, section 216C.27, 
 44.28  subdivision 7, is amended to read: 
 44.29     Subd. 7.  [BUILDING EVALUATORS.] The commissioner shall 
 44.30  certify evaluators in each county of the state who are qualified 
 44.31  to determine the compliance of a residence with applicable 
 44.32  energy efficiency standards.  The commissioner shall, by rule 
 44.33  pursuant to chapter 14, adopt standards for the certification 
 44.34  and performance of evaluators and set a fee for the 
 44.35  certification of evaluators which is sufficient to cover the 
 44.36  ongoing costs of the program once it is established.  The 
 45.1   commissioner shall encourage the certification of existing 
 45.2   groups of trained municipal personnel and qualified individuals 
 45.3   from community-based organizations and public service 
 45.4   organizations.  Each certified evaluator shall, on request of 
 45.5   the owner, inspect any residence and report the degree to which 
 45.6   it complies with applicable energy efficiency standards 
 45.7   established pursuant to subdivision 1.  The inspections shall be 
 45.8   made within 30 days of the request.  The commissioner shall 
 45.9   enter into an agreement with the department of children, 
 45.10  families, and learning board of trustees of the Minnesota state 
 45.11  colleges and universities for the provision of evaluator 
 45.12  training through at institutions that offer the technical 
 45.13  colleges training.  The commissioner may contract with 
 45.14  the technical colleges board to reduce the training costs to the 
 45.15  students.  The commissioner may eliminate the examination fee 
 45.16  for persons seeking upgraded certificates.  The commissioner may 
 45.17  also establish requirements for continuing education, periodic 
 45.18  recertification, and revocation of certification for evaluators. 
 45.19     Sec. 28.  Minnesota Statutes 1996, section 583.22, 
 45.20  subdivision 5, is amended to read: 
 45.21     Subd. 5.  [DIRECTOR.] "Director" means the director of the 
 45.22  agricultural extension service conflict and change center at the 
 45.23  University of Minnesota's Humphrey Institute or the director's 
 45.24  designee. 
 45.25     Sec. 29.  Laws 1986, chapter 398, article 1, section 18, as 
 45.26  amended by Laws 1987, chapter 292, section 37; Laws 1989, 
 45.27  chapter 350, article 16, section 8; Laws 1990, chapter 525, 
 45.28  section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
 45.29  Special Session chapter 2, article 6, section 2; and Laws 1995, 
 45.30  chapter 212, article 2, section 11, is amended to read: 
 45.31     Sec. 18.  [REPEALER.] 
 45.32     Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
 45.33  subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
 45.34  and 583.305, are repealed on July 1, 1997 1998. 
 45.35     Sec. 30.  Laws 1994, chapter 643, section 19, subdivision 
 45.36  9, as amended by Laws 1995, chapter 224, section 124, is amended 
 46.1   to read:  
 46.2   Subd. 9.  Museum and Center for 
 46.3   American Indian History                               1,100,000
 46.4   This appropriation is for the board of 
 46.5   trustees of the Minnesota state 
 46.6   colleges and universities to plan, 
 46.7   design, and construct a museum and 
 46.8   center for American Indian history and 
 46.9   policy.  The facility shall be located 
 46.10  at Bemidji State University.  This 
 46.11  appropriation is not available unless 
 46.12  matched by $1,000,000 from nonpublic 
 46.13  sources dollar for dollar to the extent 
 46.14  matched by nonstate money, provided 
 46.15  that a minimum of $500,000 must be 
 46.16  raised from nonstate money.  If more 
 46.17  than $1,100,000 is raised from nonstate 
 46.18  money, the money may be used to expand 
 46.19  the project.  Initiation of the project 
 46.20  must begin prior to June 30, 2001.  The 
 46.21  board of trustees of the Minnesota 
 46.22  state colleges and universities is not 
 46.23  required to pay any debt service for 
 46.24  this appropriation. 
 46.25     Sec. 31.  Laws 1996, chapter 366, section 6, is amended to 
 46.26  read: 
 46.27     Sec. 6.  [MORATORIUM.] 
 46.28     Notwithstanding any law to the contrary, until June 30, 
 46.29  1997 1998, an educational institution that was licensed under 
 46.30  Minnesota Statutes, chapter 141, on December 31, 1995, must 
 46.31  continue to comply with the provisions of that chapter and may 
 46.32  not use any of the exemptions available under Minnesota 
 46.33  Statutes, section 141.35. 
 46.34     Sec. 32.  Laws 1997, chapter 32, is amended by adding a 
 46.35  section to read: 
 46.36     Sec. 2.  [EFFECTIVE DATE.] 
 46.37     This act is effective the day after the final enactment of 
 46.38  S. F. No. 1888.  
 46.39     Sec. 33.  [STUDENT ORGANIZATIONS.] 
 46.40     A campus student association shall not hold a referendum to 
 46.41  determine statewide affiliation before May 1, 1998, or before 
 46.42  the statewide student associations for the community colleges 
 46.43  and technical colleges consolidate, whichever is sooner. 
 46.44     Sec. 34.  [MINNESOTA VIRTUAL UNIVERSITY.] 
 46.45     Subdivision 1.  [ESTABLISHMENT.] The Minnesota Virtual 
 46.46  University is established as a public-private partnership 
 47.1   consisting of the University of Minnesota, the Minnesota state 
 47.2   colleges and universities, and private colleges and universities 
 47.3   to ensure that lifelong learning opportunities are developed and 
 47.4   available to Minnesota citizens and businesses.  The Minnesota 
 47.5   Virtual University shall establish multiple points of entry for 
 47.6   students with immediate access to all instructional, support, 
 47.7   and administrative services. 
 47.8      Subd. 2.  [COORDINATION.] The University of Minnesota, the 
 47.9   Minnesota state colleges and universities, and the private 
 47.10  colleges and universities are requested to: 
 47.11     (1) oversee the development and implementation of an 
 47.12  electronic system that will support immediate access to all 
 47.13  instructional, support, and administrative services in a 
 47.14  seamless and customer-friendly manner; 
 47.15     (2) include private businesses, and other institutions that 
 47.16  could support the development of a virtual university; and 
 47.17     (3) develop an electronic system supporting student 
 47.18  services, including, but not limited to, course catalogs, 
 47.19  registration systems, credit banks, and occupation and employer 
 47.20  data.  The electronic system shall be designed to integrate with 
 47.21  existing and future systems supporting the University of 
 47.22  Minnesota, the Minnesota state colleges and universities, and 
 47.23  private colleges and universities. 
 47.24     Sec. 35.  [MNSCU EXCLUSION.] 
 47.25     Notwithstanding any law to the contrary, the Minnesota 
 47.26  state colleges and universities are not a state agency for the 
 47.27  purposes of laws relating to the office of technology. 
 47.28     Sec. 36.  [ROUNDTABLE ON VOCATIONAL TECHNICAL EDUCATION.] 
 47.29     Subdivision 1.  [ESTABLISHMENT; MEMBERS.] A roundtable 
 47.30  discussion on vocational technical education in the state shall 
 47.31  be convened.  The roundtable shall consist of 13 members as 
 47.32  follows: 
 47.33     (1) the commissioner of the department of children, 
 47.34  families, and learning or the commissioner's designee; 
 47.35     (2) the chancellor of the Minnesota state colleges and 
 47.36  universities or the chancellor's designee; 
 48.1      (3) a majority member of the higher education budget 
 48.2   division of the senate committee on children, families and 
 48.3   learning, appointed by the senate majority leader, and a 
 48.4   minority member of the same division appointed by the minority 
 48.5   leader; 
 48.6      (4) a majority member of the higher education finance 
 48.7   division of the education committee of the house, appointed by 
 48.8   the speaker of the house, and a minority member of the same 
 48.9   division appointed by the minority leader; 
 48.10     (5) a member of the state vocational school planning 
 48.11  committee, selected by the committee; and 
 48.12     (6) the following members, appointed by the governor: 
 48.13     (i) one member of the state council on vocational technical 
 48.14  education; 
 48.15     (ii) a member of private industry who regularly hires 
 48.16  graduates of vocational technical education programs; 
 48.17     (iii) a secondary vocational technical educator; 
 48.18     (iv) a post-secondary faculty member in vocational 
 48.19  technical education; 
 48.20     (v) a current student in vocational technical education; 
 48.21  and 
 48.22     (vi) a representative of organized labor. 
 48.23     Subd. 2.  [DUTIES.] The roundtable shall make 
 48.24  recommendations on strategies needed to effectively provide 
 48.25  efficient vocational technical education in Minnesota.  The 
 48.26  roundtable shall consider at least the following issues: 
 48.27     (1) how counseling at the secondary and post-secondary 
 48.28  level could improve student success in job placement; 
 48.29     (2) how recruitment efforts by technical colleges could 
 48.30  help fill classroom vacancies; 
 48.31     (3) how to encourage cooperation with industry in 
 48.32  curriculum design, internship development, and projection of 
 48.33  potential job growth areas; and 
 48.34     (4) the relationship of technical colleges to current 
 48.35  school-to-work programs. 
 48.36     Subd. 3.  [REPORTS.] The roundtable shall report to the 
 49.1   legislature on its recommendations by January 15, 1998.  The 
 49.2   state council on vocational technical education and the 
 49.3   Minnesota state colleges and universities shall provide staffing 
 49.4   and other necessary support to the roundtable. 
 49.5      Subd. 4.  [PLANNING COMMITTEE; CONTINUATION.] The state 
 49.6   vocational school planning committee, established under Laws 
 49.7   1995, First Special Session chapter 3, article 3, section 12, 
 49.8   shall continue until June 30, 1998. 
 49.9      Sec. 37.  [BOARD AUTHORITY TO PURCHASE, SELL, TRANSFER, 
 49.10  LEASE, AND CONVEY CERTAIN LAND AND IMPROVEMENTS.] 
 49.11     Subdivision 1.  [AUTHORITY.] The board of trustees may 
 49.12  purchase, sell, transfer, lease, and convey land and 
 49.13  improvements described in this section, and may retain all 
 49.14  proceeds from the sale or lease of real estate under Minnesota 
 49.15  Statutes, section 136F.71.  The provisions of Minnesota 
 49.16  Statutes, sections 94.09 to 94.16 and 103F.535, do not apply to 
 49.17  real estate transactions authorized by this section. 
 49.18     Subd. 2.  [ST. CLOUD.] The board of trustees may purchase 
 49.19  fee title from the Central Minnesota Council of Boy Scouts, 
 49.20  Inc., of approximately 1.4 acres of land that includes an office 
 49.21  building and that is contiguous to St. Cloud Technical College 
 49.22  for college operations. 
 49.23     Subd. 3.  [INVER HILLS; NORMANDALE LAND TRANSFERS.] (a) The 
 49.24  board of trustees may transfer fee title to approximately eight 
 49.25  acres of state-owned real estate operated by Inver Hills 
 49.26  Community College to the city of Inver Grove Heights.  The 
 49.27  purpose of the transfer is to provide land for the construction 
 49.28  of a community library at no cost to the state, the board, or 
 49.29  Inver Hills Community College.  In the event that the property 
 49.30  is no longer used for public purposes, title to the land shall 
 49.31  revert to the state.  The transfer is contingent on the board of 
 49.32  trustees acquiring fee title to approximately eight acres of 
 49.33  real estate owned by the city of Inver Grove Heights, adjacent 
 49.34  to Inver Hills Community College, for college operations. 
 49.35     (b) The board of trustees may transfer fee title to 
 49.36  approximately 12 acres of state-owned real estate that comprises 
 50.1   Normandale Community College's athletic fields to the city of 
 50.2   Bloomington.  In the event that the property is no longer used 
 50.3   for public purposes, title to the land shall revert to the 
 50.4   state.  The transfer is contingent on the board acquiring fee 
 50.5   title to approximately 12 acres of real estate owned by the city 
 50.6   of Bloomington, which is in the vicinity of Normandale Community 
 50.7   College, for college operations.  The land acquired by the 
 50.8   college must remain undeveloped.  The transfer must include 
 50.9   provisions to allow the college continued use of the fields. 
 50.10     Subd. 4.  [WINONA, JACKSON, MAHTOMEDI PROPERTY SALE.] (a) 
 50.11  The board of trustees may sell the state's interest in an 
 50.12  aviation hangar and related land operated by the Winona campus 
 50.13  of Winona-Red Wing Technical College for no less than the 
 50.14  assessed value of the property.  The sale may be by public 
 50.15  auction, sealed bid, listing with a real estate broker licensed 
 50.16  under Minnesota Statutes, chapter 82, or other means selected by 
 50.17  the board of trustees. 
 50.18     (b) The board of trustees may sell a former armory building 
 50.19  operated by the Jackson campus of Minnesota West Community and 
 50.20  Technical College for no less than the assessed value of the 
 50.21  property.  The sale may be by public auction, sealed bid, 
 50.22  listing with a real estate broker licensed under Minnesota 
 50.23  Statutes, chapter 82, or other means selected by the board of 
 50.24  trustees. 
 50.25     (c) The board of trustees may sell or lease for $1 
 50.26  state-owned real estate operated by Century Community and 
 50.27  Technical College to the city of Mahtomedi for construction of 
 50.28  an ice arena.  Additional terms may be set by the board.  The 
 50.29  board shall ensure adequate future educational development space 
 50.30  is maintained on the east campus and shall give priority to 
 50.31  other state-owned land operated by Century Community and 
 50.32  Technical College.  Any sale or lease must include provisions 
 50.33  for use of the facility by the college.  If the land is sold and 
 50.34  later is no longer used for city recreational purposes, the 
 50.35  property shall revert to the state.  Prior to any negotiations 
 50.36  with the city of Mahtomedi, the chancellor must report to the 
 51.1   chairs of the house and senate education committees on the 
 51.2   relationship of the ice arena to the long-term educational and 
 51.3   facility development goals of the college. 
 51.4      Subd. 5.  [MINNEAPOLIS TRANSFER.] Notwithstanding the 
 51.5   provisions of Minnesota Statutes, chapter 94, or any other state 
 51.6   law, if the board of trustees of the Minnesota state colleges 
 51.7   and universities system or the school board of special school 
 51.8   district No. 1, Minneapolis, ceases to use its portion of the 
 51.9   real property along Second Avenue North adjacent to Bassett's 
 51.10  creek in Minneapolis known as the transportation center for a 
 51.11  purpose related to normal, authorized board functions or 
 51.12  activities, or if the board of trustees or the school board 
 51.13  wishes to permanently abandon, sell, or lease or otherwise 
 51.14  transfer the control of a material part of its portion of the 
 51.15  real property, the board of trustees must offer to convey its 
 51.16  portion of the property to the school board for $1 or the school 
 51.17  board must offer to convey its portion of the property to the 
 51.18  board of trustees for $1.  The board of trustees and the school 
 51.19  board are each authorized to convey their portion of the 
 51.20  property upon timely acceptance of such offer.  An offer 
 51.21  extended shall become void if not accepted in writing within 60 
 51.22  days of issuance. 
 51.23     Subd. 6.  [MANKATO STATE.] The board of trustees of the 
 51.24  Minnesota state colleges and universities may accept money from 
 51.25  the Mankato State University Foundation to construct a black box 
 51.26  theater on the Mankato State University campus.  The board shall 
 51.27  supervise the construction as provided in Minnesota Statutes, 
 51.28  section 136F.64. 
 51.29     Subd. 7.  [ST. CLOUD STATE UNIVERSITY.] The board of 
 51.30  trustees of the Minnesota state colleges and universities may 
 51.31  build a bus stop structure with some retail services on the 
 51.32  campus of St. Cloud State University.  It is intended that no 
 51.33  appropriation for this specific purpose is needed or obligated 
 51.34  by this authorization.  An operating agreement may be executed 
 51.35  for a period of five to 25 years subject to the requirements of 
 51.36  Minnesota Statutes, section 16B.24, subdivision 5. 
 52.1      Subd. 8.  [NORTH HENNEPIN COMMUNITY 
 52.2   COLLEGE.] Notwithstanding Minnesota Statutes, section 16B.26, 
 52.3   the board of trustees may grant permanent utility, drainage, and 
 52.4   access easements at North Hennepin Community College, in a form 
 52.5   prescribed by the attorney general. 
 52.6      Sec. 38.  [INSTRUCTION TO REVISOR.] 
 52.7      The revisor of statutes shall change the phrases "state 
 52.8   board of technical colleges," "state board for vocational 
 52.9   technical education," "state board for community colleges," and 
 52.10  "state university board," or similar, to "board of trustees of 
 52.11  the Minnesota state colleges and universities" in Minnesota 
 52.12  Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, 
 52.13  subdivision 2b; and 354.66, subdivision 1a. 
 52.14     Sec. 39.  [REPEALER.] 
 52.15     Minnesota Statutes 1996, sections 126.113; and 137.41; Laws 
 52.16  1995, chapter 212, article 4, section 34; and Laws 1995, First 
 52.17  Special Session chapter 2, article 1, sections 35 and 36, are 
 52.18  repealed. 
 52.19     Sec. 40.  [EFFECTIVE DATES.] 
 52.20     Sections 21, 29, and 31 are effective the day following 
 52.21  final enactment.