1.1                          A bill for an act 
  1.2             relating to appropriations; appropriating money for 
  1.3             higher education and related purposes, with certain 
  1.4             conditions; requiring a study; amending Minnesota 
  1.5             Statutes 1996, section 136A.101, subdivision 7b; 
  1.6             Minnesota Statutes 1997 Supplement, section 136A.121, 
  1.7             subdivision 5; Laws 1996, chapter 366, section 6, as 
  1.8             amended; Laws 1997, chapter 183, article 1, section 2, 
  1.9             subdivisions 6, 9, and 13; and article 2, section 19. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1 
  1.12                           APPROPRIATIONS 
  1.13  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.14     The sums in the columns headed "APPROPRIATIONS" are 
  1.15  appropriated from the general fund, or another named fund, to 
  1.16  the agencies and for the purposes specified to be available for 
  1.17  the fiscal years indicated for each purpose. 
  1.18                          SUMMARY BY FUND
  1.19                            1998          1999           TOTAL
  1.20  General                   -0-     $   63,500,000 $   63,500,000
  1.21                   SUMMARY BY AGENCY - ALL FUNDS 
  1.22                            1998          1999           TOTAL
  1.23  Board of Trustees of 
  1.24  the Minnesota State Colleges 
  1.25  and Universities          -0-         31,500,000     31,500,000
  1.26  Board of Regents of 
  1.27  the University of 
  1.28  Minnesota                 -0-         32,000,000     32,000,000
  1.29                                              APPROPRIATIONS 
  1.30                                         Available for the Year 
  2.1                                              Ending June 30 
  2.2                                             1998         1999 
  2.3   Sec. 2.  MINNESOTA STATE COLLEGES
  2.4   AND UNIVERSITIES
  2.5                                      $      -0-     $  31,500,000
  2.6   (a) Faculty and Staff Development
  2.7          -0-          4,000,000 
  2.8   This appropriation is for internships 
  2.9   and other education and development 
  2.10  activities for college and university 
  2.11  faculty and staff.  
  2.12  (b) Business and Industry Partnerships
  2.13         -0-          6,000,000 
  2.14  This appropriation is for increasing 
  2.15  the number of graduates in critical 
  2.16  career areas identified in partnership 
  2.17  with business and industry. 
  2.18  This appropriation contains money for 
  2.19  stipends to students enrolled in 
  2.20  internships:  (1) required by a degree 
  2.21  or certificate program but not 
  2.22  currently subsidized by business or 
  2.23  industry, (2) established to train, 
  2.24  place, and retain hard-to-place 
  2.25  individuals, and (3) established to 
  2.26  train and place students into 
  2.27  high-demand occupations.  
  2.28  The Minnesota state colleges and 
  2.29  universities shall work with business, 
  2.30  industry, local workforce centers, and 
  2.31  the department of economic security in 
  2.32  the implementation of this initiative 
  2.33  at one or more technical college or 
  2.34  consolidated college sites, and report 
  2.35  to the senate and house higher 
  2.36  education divisions of the legislature 
  2.37  by February 1, 1999, on the progress in 
  2.38  their efforts. 
  2.39  (c) Student Initiatives
  2.40         -0-         21,500,000 
  2.41  This appropriation is for campus and 
  2.42  systemwide initiatives to foster 
  2.43  student success, including:  an 
  2.44  equipment base adjustment; and training 
  2.45  for students, faculty, and staff in 
  2.46  instructional technology.  
  2.47  (d) $11,500,000 of the appropriation in 
  2.48  this section is nonrecurring. 
  2.49  (e) The board of trustees shall 
  2.50  establish benchmarks with respect to 
  2.51  the quantity and quality of equipment 
  2.52  used in instructional programs.  The 
  2.53  benchmarks shall assist in planning for 
  2.54  the maintenance and replacement of the 
  2.55  equipment. 
  2.56  (f) The board of trustees is directed 
  3.1   to develop and implement a policy for 
  3.2   ensuring that buildings under its 
  3.3   management are properly maintained, 
  3.4   including the allocation of adequate 
  3.5   funding for such purpose. 
  3.6   (g) State Council on Vocational Technical Education 
  3.7   The state council on vocational 
  3.8   technical education shall continue for 
  3.9   the biennium. 
  3.10  The appropriation in Laws 1997, chapter 
  3.11  183, article 1, section 3, subdivision 
  3.12  1, includes money in the second year 
  3.13  for the state council on vocational 
  3.14  technical education. 
  3.15  (1) The state council on vocational 
  3.16  technical education, the governor's 
  3.17  workforce development council, the 
  3.18  department of economic security, the 
  3.19  Minnesota state colleges and 
  3.20  universities, and the department of 
  3.21  children, families, and learning shall 
  3.22  work together to achieve the following: 
  3.23  (i) secure funding for secondary 
  3.24  vocational technical education at a 
  3.25  level commensurate with current and 
  3.26  future workforce needs; 
  3.27  (ii) develop procedures to measure and 
  3.28  collect data on the effectiveness of 
  3.29  vocational technical education in 
  3.30  preparing students for work; 
  3.31  (iii) develop public vocational 
  3.32  technical education programs based on 
  3.33  industry and labor-validated skill 
  3.34  standards to meet existing and emerging 
  3.35  occupational needs; 
  3.36  (iv) establish benchmarks for ratios of 
  3.37  students to licensed school guidance 
  3.38  counselors; and 
  3.39  (v) recommend the proper role for each 
  3.40  affected state council and agency in 
  3.41  the "school-to-work" system. 
  3.42  The state council shall report to the 
  3.43  affected legislative committees of the 
  3.44  legislature by February 1, 1999, on 
  3.45  progress made toward achievement of the 
  3.46  above items. 
  3.47  (2) The state council on vocational 
  3.48  technical education shall study: 
  3.49  (i) barriers relative to youth in the 
  3.50  workforce; 
  3.51  (ii) potential mechanisms to increase 
  3.52  the participation of employers in 
  3.53  approved experience-based instruction 
  3.54  programs; and 
  3.55  (iii) the cost of liability management 
  3.56  for employers hosting individuals in a 
  3.57  work-based education or training 
  4.1   program. 
  4.2   The council will report to the affected 
  4.3   legislative committees of the 
  4.4   legislature on these issues by February 
  4.5   1, 1999, and include recommendations, 
  4.6   if any, for changes in law or policy 
  4.7   with respect to these issues. 
  4.8   Notwithstanding Laws 1997, chapter 183, 
  4.9   article 1, section 3, subdivision 2, 
  4.10  the board of trustees shall spend one 
  4.11  percent more in fiscal year 1999 than 
  4.12  was spent in fiscal year 1998 on direct 
  4.13  instruction, as reported in the federal 
  4.14  Integrated Postsecondary Education Data 
  4.15  System. 
  4.16  Sec. 3.  UNIVERSITY OF MINNESOTA        -0-          32,000,000
  4.17  Subdivision 1.  Operations and Maintenance 
  4.18  (a) This appropriation is for strategic 
  4.19  academic initiatives in digital 
  4.20  technology, molecular and cellular 
  4.21  biology, and design; an equipment base 
  4.22  adjustment; the Northstar Research 
  4.23  Coalition; a faculty set-up and 
  4.24  equipment fund; and faculty and staff 
  4.25  compensation.  $10,000,000 of this 
  4.26  appropriation is nonrecurring. 
  4.27  The board of regents is requested to 
  4.28  develop and implement a policy for 
  4.29  ensuring that buildings under its 
  4.30  management are properly maintained, 
  4.31  including the allocation of adequate 
  4.32  funding for such purpose. 
  4.33  (b) The board of regents is requested 
  4.34  to establish a partnership with private 
  4.35  industry to leverage the university's 
  4.36  research capabilities into economic 
  4.37  development results through the 
  4.38  creation of a nonprofit, tax-exempt 
  4.39  corporation to be known as the 
  4.40  Northstar Research Coalition.  The 
  4.41  money for projects funded under this 
  4.42  initiative must be used to establish 
  4.43  endowed faculty chairs in the area of 
  4.44  technology-based research, purchase 
  4.45  equipment for research laboratories, 
  4.46  and fund research projects consistent 
  4.47  with priorities established by the 
  4.48  partnership. 
  4.49  The coalition may fund research 
  4.50  projects that establish collaborative 
  4.51  research efforts between the University 
  4.52  of Minnesota and the private sector, 
  4.53  the Mayo clinic, or the Minnesota state 
  4.54  colleges and universities. 
  4.55  The duties of the coalition include: 
  4.56  (1) identifying technology-based 
  4.57  research projects that have the 
  4.58  potential to create significant 
  4.59  opportunities for economic development 
  4.60  and industrial growth in the state; 
  5.1   (2) strengthening the university's 
  5.2   research capabilities in subject areas 
  5.3   associated with emerging 
  5.4   technology-based industries; 
  5.5   (3) expanding the research capacity of 
  5.6   the university through the creation of 
  5.7   opportunities for the university to 
  5.8   assist private enterprises in emerging 
  5.9   technology-based industries; 
  5.10  (4) promoting the transfer of 
  5.11  technology from the research laboratory 
  5.12  to commercial application by 
  5.13  businesses; 
  5.14  (5) developing application procedures 
  5.15  for, reviewing, and prioritizing 
  5.16  research projects seeking funding under 
  5.17  this initiative; and 
  5.18  (6) creating opportunities for 
  5.19  collaborative research opportunities 
  5.20  between the University of Minnesota, 
  5.21  the Mayo clinic, and the Minnesota 
  5.22  state colleges and universities. 
  5.23  The board shall have the authority to 
  5.24  allocate state and nonstate money to 
  5.25  projects. 
  5.26  The incorporating documents of the 
  5.27  Northstar Research Coalition must 
  5.28  provide for equal representation of 
  5.29  university and private sector interests 
  5.30  on the coalition's board of directors 
  5.31  and provide that changes in the 
  5.32  governance structure require a super 
  5.33  majority of the board.  The board 
  5.34  consists of 12 members.  Six shall be 
  5.35  appointed by the board of regents of 
  5.36  the University of Minnesota.  The 
  5.37  initial six members representing the 
  5.38  private sector shall be appointed by 
  5.39  the governor.  Subsequent members 
  5.40  representing the private sector shall 
  5.41  be appointed by the incumbent members.  
  5.42  Private sector members of the board 
  5.43  must have an expertise in the 
  5.44  technology research needs of the state 
  5.45  and not be affiliated with the 
  5.46  university. 
  5.47  This appropriation contains $500,000 
  5.48  for the university's contribution to 
  5.49  the Northstar Research Coalition.  The 
  5.50  commissioner of finance may not release 
  5.51  the money for this appropriation until 
  5.52  the university presents evidence that a 
  5.53  nonprofit, tax-exempt corporation, to 
  5.54  be known as the Northstar Research 
  5.55  Coalition, in a form complying with 
  5.56  paragraph (b), has been established; 
  5.57  and there is a match, equal to at least 
  5.58  the appropriation amount, from nonstate 
  5.59  sources. 
  5.60  (c) The board of regents is requested 
  5.61  to establish benchmarks with respect to 
  5.62  the quality and quantity of equipment 
  5.63  used in instructional programs.  The 
  6.1   benchmarks shall assist in planning for 
  6.2   the maintenance and replacement of the 
  6.3   equipment. 
  6.4   Subd. 2.  Agriculture Specials
  6.5   This appropriation includes money for 
  6.6   initiatives designed to sustain 
  6.7   Minnesota's renewable natural 
  6.8   resource-based industries, including, 
  6.9   but not limited to, a rapid response 
  6.10  fund to conduct research to solve 
  6.11  problems affecting spring and winter 
  6.12  wheat, barley, canola, potatoes, and 
  6.13  respiratory diseases affecting turkeys. 
  6.14  This appropriation contains money for 
  6.15  agricultural research and outreach.  
  6.16     Sec. 4.  Laws 1997, chapter 183, article 1, section 2, 
  6.17  subdivision 6, is amended to read: 
  6.18  Subd. 6.  Learning Network of Minnesota
  6.19       5,500,000      5,292,000
  6.20  Up to $1,500,000 of this amount is to 
  6.21  assist in establishing a gigabit 
  6.22  capacity point of presence at the 
  6.23  University of Minnesota-Twin Cities and 
  6.24  to support the University's 
  6.25  participation in the national Internet 
  6.26  2 initiative for research and 
  6.27  development of telecommunications 
  6.28  networks.  This appropriation is 
  6.29  available to the extent matched by the 
  6.30  University of Minnesota or private 
  6.31  sources. 
  6.32  This appropriation includes money for 
  6.33  quality improvements and inter-region 
  6.34  and interstate connectivity for MnNet. 
  6.35  This appropriation does not cancel but 
  6.36  is available until expended. 
  6.37     Sec. 5.  Laws 1997, chapter 183, article 1, section 2, 
  6.38  subdivision 9, is amended to read: 
  6.39  Subd. 9.  Edvest 
  6.40       1,519,000      1,520,000 
  6.41  This appropriation does not cancel but 
  6.42  is available until June 30, 2001. 
  6.43     Sec. 6.  Laws 1997, chapter 183, article 1, section 2, 
  6.44  subdivision 13, is amended to read:  
  6.45  Subd. 13.  Nonrecurring Appropriations 
  6.46  The appropriations for the Minnesota 
  6.47  library information network, quality 
  6.48  improvements on MnNet, inter-region and 
  6.49  interstate connectivity for MnNet, and 
  6.50  the National Service Scholars program 
  6.51  are nonrecurring. 
  7.1      Sec. 7.  Laws 1997, chapter 183, article 2, section 19, is 
  7.2   amended to read: 
  7.3      Sec. 19.  [NATIONAL SERVICE SCHOLARS PROGRAM.] 
  7.4      A national service scholars program is established under 
  7.5   the administration of the higher education services office to 
  7.6   match scholarship grants made under the National Service 
  7.7   Scholars program of the Corporation for National Service to 
  7.8   students attending Minnesota high schools and who will attend a 
  7.9   Minnesota post-secondary institution.  Not more than one 
  7.10  matching grant of $500 may be made for each high school per 
  7.11  year.  The state money shall be available until June 30, 1999 
  7.12  the participants for whom the money was appropriated are no 
  7.13  longer eligible to draw benefits, if federal money is available. 
  7.14     Sec. 8.  Laws 1996, chapter 366, section 6, as amended by 
  7.15  Laws 1997, chapter 183, article 3, section 31, is amended to 
  7.16  read: 
  7.17     Sec. 6.  [MORATORIUM.] 
  7.18     Notwithstanding any law to the contrary, until June 30, 
  7.19  1998 1999, an educational institution that was licensed under 
  7.20  Minnesota Statutes, chapter 141, on December 31, 1995, must 
  7.21  continue to comply with the provisions of that chapter and may 
  7.22  not use any of the exemptions available under Minnesota 
  7.23  Statutes, section 141.35. 
  7.24                             ARTICLE 2 
  7.25                           FINANCIAL AID 
  7.26     Section 1.  Minnesota Statutes 1996, section 136A.101, 
  7.27  subdivision 7b, is amended to read: 
  7.28     Subd. 7b.  [HALF TIME.] "Half time" means enrollment in a 
  7.29  minimum of eight six credits per quarter or semester, or the 
  7.30  equivalent. 
  7.31     Sec. 2.  Minnesota Statutes 1997 Supplement, section 
  7.32  136A.121, subdivision 5, is amended to read: 
  7.33     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
  7.34  based on a sharing of responsibility for covering the recognized 
  7.35  cost of attendance by the applicant, the applicant's family, and 
  7.36  the government.  The amount of a financial stipend must not 
  8.1   exceed a grant applicant's recognized cost of attendance, as 
  8.2   defined in subdivision 6, after deducting the following:  
  8.3      (1) the assigned student responsibility of at least 50 47 
  8.4   percent of the cost of attending the institution of the 
  8.5   applicant's choosing; 
  8.6      (2) the assigned family responsibility as defined in 
  8.7   section 136A.101; and 
  8.8      (3) the amount of a federal Pell grant award for which the 
  8.9   grant applicant is eligible. 
  8.10     The minimum financial stipend is $300 per academic year. 
  8.11     Sec. 3.  [STUDY.] 
  8.12     The legislature intends to extend the availability of 
  8.13  educational opportunities for parents of young children of lower 
  8.14  economic status.  The higher education services office, in 
  8.15  cooperation with the Minnesota state colleges and universities 
  8.16  and the University of Minnesota is directed to examine the 
  8.17  costs, impacts, solutions, and law changes necessary to make 
  8.18  child care, work study, or other financial aid programs more 
  8.19  readily accessible.  The study will include an analysis of 
  8.20  priority rules, funding match requirements, and extending 
  8.21  availability of the child care program to include work study 
  8.22  hours.  The higher education services office shall report to the 
  8.23  higher education divisions of the legislature on these issues by 
  8.24  December 1, 1998.