1.1                          A bill for an act 
  1.2             relating to higher education; modifying salary and 
  1.3             compensation procedures for the chancellor and other 
  1.4             personnel of the Minnesota state colleges and 
  1.5             universities; requiring board of regents and board of 
  1.6             trustees to maintain certain data to be eligible for 
  1.7             capital funding; modifying and making technical 
  1.8             changes for state designer selection board, student 
  1.9             residency, and child care grant provisions; increasing 
  1.10            aggregate principal amount of revenue bonds issued by 
  1.11            board of trustees; requiring a study and report; 
  1.12            requiring board of trustees to plan and coordinate 
  1.13            programs with certain intermediate school districts 
  1.14            and to provide relief to campuses experiencing 
  1.15            increased health care costs; transferring certain 
  1.16            programs from the higher education services office to 
  1.17            the department of children, families, and learning; 
  1.18            appropriating money to Minnesota state colleges and 
  1.19            universities to fund increased enrollment; amending 
  1.20            Minnesota Statutes 1998, sections 15A.081, subdivision 
  1.21            7b, and by adding a subdivision; 16B.33, subdivisions 
  1.22            2 and 3a; 135A.031, subdivision 2; 136A.125, by adding 
  1.23            a subdivision; 136F.40; and 136F.98, subdivision 1; 
  1.24            proposing coding for new law in Minnesota Statutes, 
  1.25            chapter 16A; repealing Minnesota Rules, parts 
  1.26            4830.9005 to 4830.9030. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28     Section 1.  Minnesota Statutes 1998, section 15A.081, 
  1.29  subdivision 7b, is amended to read: 
  1.30     Subd. 7b.  [HIGHER EDUCATION OFFICERS SERVICES OFFICE 
  1.31  DIRECTOR.] The board of trustees of the Minnesota state colleges 
  1.32  and universities and The higher education services council shall 
  1.33  set the salary rates rate for, respectively, the chancellor of 
  1.34  the Minnesota state colleges and universities and the director 
  1.35  of the higher education services office.  The board or the 
  1.36  council shall submit the proposed salary change to the 
  2.1   legislative coordinating commission for approval, modification, 
  2.2   or rejection in the manner provided in section 3.855.  
  2.3      In deciding whether to recommend a salary increase, the 
  2.4   governing board or council shall consider the performance of the 
  2.5   chancellor or director, including the chancellor's or director's 
  2.6   progress toward attaining affirmative action goals. 
  2.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
  2.8   following final enactment. 
  2.9      Sec. 2.  Minnesota Statutes 1998, section 15A.081, is 
  2.10  amended by adding a subdivision to read: 
  2.11     Subd. 7c.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES 
  2.12  CHANCELLOR.] The board of trustees of the Minnesota state 
  2.13  colleges and universities shall establish a salary range for the 
  2.14  position of chancellor of the Minnesota state colleges and 
  2.15  universities.  The board shall submit the proposed salary range 
  2.16  to the legislative coordinating commission for approval, 
  2.17  modification, or rejection in the manner provided in section 
  2.18  3.855.  The board shall establish the salary for the chancellor 
  2.19  within the approved salary range. 
  2.20     In deciding whether to approve a salary increase, the board 
  2.21  shall consider the performance of the chancellor, including the 
  2.22  chancellor's progress toward attaining affirmative action goals. 
  2.23     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  2.24  following final enactment. 
  2.25     Sec. 3.  [16A.633] [CAPITAL FUNDING CONTINGENT ON 
  2.26  MAINTAINING DATA.] 
  2.27     Subdivision 1.  [STATE AGENCIES.] Each state agency shall 
  2.28  provide to the commissioner of administration the data necessary 
  2.29  for the commissioner to maintain the department's database on 
  2.30  the location, description, and condition of state-owned 
  2.31  facilities.  The data must be provided by December 15 each 
  2.32  year.  The commissioner of administration must maintain both the 
  2.33  current inventory data and historical data.  A state agency is 
  2.34  not eligible to receive capital funding unless the agency has 
  2.35  provided the data required. 
  2.36     Subd. 2.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
  3.1   board of trustees of the Minnesota state colleges and 
  3.2   universities shall establish and maintain data on the location, 
  3.3   description, and condition of board-owned facilities that is 
  3.4   comparable with the database established by the department of 
  3.5   administration.  The data must be updated annually and the board 
  3.6   must maintain both current inventory data and historical data.  
  3.7   The board is not eligible to receive capital funding unless the 
  3.8   board has established and maintains the data required. 
  3.9      Subd. 3.  [UNIVERSITY OF MINNESOTA.] The board of regents 
  3.10  of the University of Minnesota is requested to establish and 
  3.11  maintain data on the location, description, and condition of 
  3.12  university-owned facilities that is comparable with the database 
  3.13  established by the department of administration.  The university 
  3.14  is requested to update the data annually and maintain both 
  3.15  current inventory data and historical data.  The board of 
  3.16  regents is not eligible to receive capital funding unless the 
  3.17  board has established and maintains the data required. 
  3.18     <b>EFFECTIVE DATE:</b>  This section is effective June 30, 2003. 
  3.19     Sec. 4.  Minnesota Statutes 1998, section 16B.33, 
  3.20  subdivision 2, is amended to read: 
  3.21     Subd. 2.  [ORGANIZATION OF BOARD.] (a) [MEMBERSHIP.] The 
  3.22  state designer selection board consists of five seven 
  3.23  individuals, the majority of whom must be Minnesota residents.  
  3.24  Each of the following three four organizations shall nominate 
  3.25  one individual whose name and qualifications shall be submitted 
  3.26  to the commissioner of administration for consideration:  the 
  3.27  consulting engineers council of Minnesota after consultation 
  3.28  with other professional engineering societies in the state; 
  3.29  the AIA Minnesota society of architects; the Minnesota chapter 
  3.30  of the associated general contractors or the associated builders 
  3.31  and contractors, after consultation with other commercial 
  3.32  contractor associations in the state; and the Minnesota board of 
  3.33  the arts.  The commissioner may appoint the three four named 
  3.34  individuals to the board but may reject a nominated individual 
  3.35  and request another nomination.  The fifth member shall be a 
  3.36  representative of the user agency, the University of Minnesota, 
  4.1   or the Minnesota state colleges and universities, designated by 
  4.2   the user agency.  The remaining two citizen members shall also 
  4.3   be appointed by the commissioner.  
  4.4      (b) [NONVOTING MEMBERS MEMBER.] In addition to the five 
  4.5   seven members of the board, two one nonvoting members member 
  4.6   representing the commissioner shall participate in the 
  4.7   interviewing and selection of designers pursuant to this 
  4.8   section.  One shall be a representative of the commissioner and 
  4.9   shall participate in the interviewing and selection of designers 
  4.10  for all projects.  The other shall be a representative of the 
  4.11  user agency, who shall participate in the interviewing and 
  4.12  selection of the designers for the project being undertaken by 
  4.13  the user agency.  The commissioner shall appoint the 
  4.14  representative of the user agency in consultation with the user 
  4.15  agency.  
  4.16     (c) [TERMS; COMPENSATION; REMOVAL; VACANCIES.] The 
  4.17  membership terms, compensation, removal of members, and filling 
  4.18  of vacancies on the board are as provided in section 15.0575.  
  4.19  No individual may serve for more than two consecutive terms.  
  4.20     (d) [OFFICERS, RULES.] At its first meeting, the board 
  4.21  shall elect a voting member of the board as chair.  The board 
  4.22  shall also elect other officers necessary for the conduct of its 
  4.23  affairs.  The board shall adopt rules governing its operations 
  4.24  and the conduct of its meetings.  The rules shall provide for 
  4.25  the terms of the chair and other officers.  
  4.26     (e) [MEETINGS.] The board shall meet as often as is 
  4.27  necessary, not less than twice annually, in order to act 
  4.28  expeditiously on requests submitted to it for selection of 
  4.29  primary designers.  
  4.30     (f) [OFFICE, STAFF, RECORDS.] The department of 
  4.31  administration shall provide the board with suitable quarters to 
  4.32  maintain an office, hold meetings, and keep records.  The 
  4.33  commissioner shall designate an employee of the department of 
  4.34  administration to serve as executive secretary to the board and 
  4.35  shall furnish a secretarial staff to the board as necessary for 
  4.36  the expeditious conduct of the board's duties and 
  5.1   responsibilities.  
  5.2      <b>EFFECTIVE DATE:</b>  This section is effective the day 
  5.3   following final enactment. 
  5.4      Sec. 5.  Minnesota Statutes 1998, section 16B.33, 
  5.5   subdivision 3a, is amended to read: 
  5.6      Subd. 3a.  [HIGHER EDUCATION PROJECTS.] (a) When the 
  5.7   University of Minnesota or the Minnesota state colleges and 
  5.8   universities undertakes a project involving construction or 
  5.9   major remodeling, as defined in section 16B.335, subdivision 1, 
  5.10  with an estimated cost greater than $2,000,000 or a planning 
  5.11  project with estimated fees greater than $200,000, the system 
  5.12  shall submit a written request for a primary designer to the 
  5.13  commissioner, as provided in subdivision 3. 
  5.14     (b) When the University of Minnesota or the Minnesota state 
  5.15  colleges and universities undertakes a project involving 
  5.16  renovation, repair, replacement, or rehabilitation, the system 
  5.17  office may submit a written request for a primary designer to 
  5.18  the commissioner as provided in subdivision 3. 
  5.19     (c) For projects at the University of Minnesota or the 
  5.20  state colleges and universities, the board shall select at least 
  5.21  two primary designers under subdivision 4 for recommendation to 
  5.22  the board of regents or the board of trustees.  Meeting records 
  5.23  or written evaluations that document the final selection are 
  5.24  public records.  The board of regents or the board of trustees 
  5.25  shall notify the commissioner of the designer selected from the 
  5.26  recommendations. 
  5.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  5.28  following final enactment. 
  5.29     Sec. 6.  Minnesota Statutes 1998, section 135A.031, 
  5.30  subdivision 2, is amended to read: 
  5.31     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
  5.32  state share of the estimated expenditures for instruction shall 
  5.33  vary for some categories of students, as designated in this 
  5.34  subdivision. 
  5.35     (a) The state must provide at least 67 percent of the 
  5.36  estimated expenditures for: 
  6.1      (1) students who resided in the state for at least one 
  6.2   calendar year prior to applying for admission or dependent 
  6.3   students whose parent or legal guardian resides in Minnesota at 
  6.4   the time the student applies; 
  6.5      (2) Minnesota residents who can demonstrate that they were 
  6.6   temporarily absent from the state without establishing residency 
  6.7   elsewhere; 
  6.8      (3) residents of other states or provinces who are 
  6.9   attending a Minnesota institution under a tuition reciprocity 
  6.10  agreement; and 
  6.11     (4) students who are Minnesota residents or residents of 
  6.12  other states including students who have been in Minnesota as 
  6.13  migrant farmworkers, as defined in the Code of Federal 
  6.14  Regulations, title 20, section 633.104, over a period of at 
  6.15  least two years immediately before admission or readmission to a 
  6.16  Minnesota public post-secondary institution, or students who are 
  6.17  dependents of such migrant farmworkers. 
  6.18     (b) The definition of full year equivalent for purposes of 
  6.19  the formula calculations in this chapter is twice the normal 
  6.20  value for the following enrollments: 
  6.21     (1) students who are concurrently enrolled in a public 
  6.22  secondary school and for whom the institution is receiving any 
  6.23  compensation under the Post-Secondary Enrollment Options Act; 
  6.24  and 
  6.25     (2) students enrolled under the student exchange program of 
  6.26  the Midwest Compact. 
  6.27     (c) The state may not provide any of the estimated 
  6.28  expenditures for undergraduate students (1) who do not meet the 
  6.29  residency criteria under paragraph (a), or (2) who have 
  6.30  completed, without receiving a baccalaureate degree, 48 or more 
  6.31  quarter credits or the equivalent, applicable toward the degree, 
  6.32  beyond the number required for a baccalaureate in their major. 
  6.33  Credits for courses in which a student received a grade of "F" 
  6.34  or "W" shall be counted toward this maximum, as if the credits 
  6.35  had been earned. 
  6.36     <b>EFFECTIVE DATE:</b>  This section is effective July 1, 2003. 
  7.1      Sec. 7.  Minnesota Statutes 1998, section 136A.125, is 
  7.2   amended by adding a subdivision to read: 
  7.3      Subd. 4c.  [SURPLUS FUNDS.] Any projected surplus of funds 
  7.4   in the child care grant program in the first year of the 
  7.5   biennium shall be used to augment the maximum award in 
  7.6   subdivision 4 in the second year of the biennium. 
  7.7      <b>EFFECTIVE DATE:</b>  This section is effective the day 
  7.8   following final enactment. 
  7.9      Sec. 8.  Minnesota Statutes 1998, section 136F.40, is 
  7.10  amended to read: 
  7.11     136F.40 [APPOINTMENT OF PERSONNEL.] 
  7.12     Subdivision 1.  [APPOINTMENT PROCEDURE.] The board shall 
  7.13  appoint all presidents, teachers, and other necessary employees 
  7.14  and shall prescribe their duties consistent with chapter 43A.  
  7.15  Salaries and benefits of employees must be determined according 
  7.16  to chapters 43A and 179A and other applicable provisions.  
  7.17     Subd. 2.  [COMPENSATION.] Notwithstanding any other 
  7.18  provision to the contrary, when establishing compensation the 
  7.19  board may provide, through a contract, a liquidated salary 
  7.20  amount or other compensation if a contract with a chancellor or 
  7.21  president is terminated by the board prior to its expiration. 
  7.22     Any benefits shall be excluded in computation of 
  7.23  retirement, insurance, and other benefits available through or 
  7.24  from the state.  Any benefits or additional compensation must be 
  7.25  as provided under the plan approved under section 43A.18, 
  7.26  subdivision 3a. 
  7.27     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  7.28  following final enactment. 
  7.29     Sec. 9.  Minnesota Statutes 1998, section 136F.98, 
  7.30  subdivision 1, is amended to read: 
  7.31     Subdivision 1.  [ISSUANCE OF BONDS.] The board of trustees 
  7.32  of the Minnesota state colleges and universities or a successor 
  7.33  may issue additional revenue bonds under sections 136F.90 to 
  7.34  136F.97 in an aggregate principal amount not 
  7.35  exceeding $40,000,000, subject to the resolutions authorizing 
  7.36  its outstanding revenue bonds $100,000,000, and payable from the 
  8.1   revenue appropriated to the fund established by section 136F.94, 
  8.2   and use the proceeds together with other public or private money 
  8.3   that may otherwise become available to acquire land, and to 
  8.4   acquire, construct, complete, remodel, and equip structures or 
  8.5   portions thereof to be used for dormitory, residence hall, 
  8.6   student union, food service, and related parking purposes at the 
  8.7   state universities.  Bonds may be issued to refund previously 
  8.8   issued bonds, and any such refunding bonds may be issued in 
  8.9   addition to the bonds otherwise authorized by this subdivision.  
  8.10  Before issuing the bonds or any part of them, the board shall 
  8.11  consult with and obtain the advisory recommendations of the 
  8.12  chairs of the house ways and means committee and the senate 
  8.13  finance committee about the facilities to be financed by the 
  8.14  bonds. 
  8.15     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  8.16  following final enactment. 
  8.17     Sec. 10.  [SCHOOL GUIDANCE COUNSELING INCENTIVE GRANTS.] 
  8.18     The higher education services office must recommend 
  8.19  incentives to increase the number of guidance counselors in 
  8.20  elementary and secondary schools.  
  8.21     By January 15, 2001, the higher education services office 
  8.22  must report to the legislature on the recommended incentives 
  8.23  with a recommendation for funding. 
  8.24     Sec. 11.  [STUDY OF EDUCATIONAL FOUNDATIONS.] 
  8.25     Prior to November 15, 2000, the board of trustees of the 
  8.26  Minnesota state colleges and universities shall study and make 
  8.27  recommendations on the use of educational foundation support for 
  8.28  additional compensation and benefits for the position of 
  8.29  chancellor and campus president.  The study must include 
  8.30  information about the use of foundation money for salary 
  8.31  compensation at higher educational institutions in other 
  8.32  states.  The study shall be provided to the house higher 
  8.33  education finance committee, the house ways and means committee, 
  8.34  the senate higher education finance division, the senate 
  8.35  education finance committee, and the legislative coordinating 
  8.36  commission.  
  9.1      <b>EFFECTIVE DATE:</b>  This section is effective the day 
  9.2   following final enactment. 
  9.3      Sec. 12.  [INTERMEDIATE DISTRICT COORDINATED PLANNING.] 
  9.4      (a) The board of trustees of the Minnesota state colleges 
  9.5   and universities must initiate a planning process to plan and 
  9.6   coordinate programs between the intermediate school districts 
  9.7   and the Minnesota state college and university system. 
  9.8      The board of trustees must include planning with 
  9.9   intermediate school districts No. 287; No. 916; and No. 917. 
  9.10     (b) The board of trustees and the intermediate school 
  9.11  districts must study the compatibility of program offerings and 
  9.12  develop a long-range facilities plan to address intermediate 
  9.13  school district facility needs.  The results of the study must 
  9.14  be reported to the education committees of the legislature by 
  9.15  February 15, 2001. 
  9.16     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  9.17  following final enactment. 
  9.18     Sec. 13.  [ALLOCATION FOR EXCESS HEALTH CARE COSTS.] 
  9.19     The board of trustees must provide relief to campuses who 
  9.20  have experienced health care cost increases of greater than 80 
  9.21  percent above the systemwide average increase since 1996. 
  9.22     Sec. 14.  [TRANSFER OF OUTREACH PROGRAMS.] 
  9.23     Responsibility for outreach and early intervention programs 
  9.24  administered by the higher education services office, including 
  9.25  the Get Ready program, the community service learning grants, 
  9.26  and the early intervention for college attendance programs is 
  9.27  transferred to the department of children, families, and 
  9.28  learning.  $897,000 in fiscal year 2001 is transferred from the 
  9.29  higher education services office to the department of children, 
  9.30  families, and learning in accordance with Minnesota Statutes, 
  9.31  section 16B.37. 
  9.32     <b>EFFECTIVE DATE:</b>  This section is effective the day 
  9.33  following final enactment. 
  9.34     Sec. 15.  [APPROPRIATION.] 
  9.35     $5,792,000 in fiscal year 2000 and $5,792,000 in fiscal 
  9.36  year 2001 is appropriated from the general fund to the board of 
 10.1   trustees of the Minnesota state colleges and universities as a 
 10.2   deficiency appropriation to fund increased enrollments.  This 
 10.3   appropriation is in addition to the appropriation in Laws 1999, 
 10.4   chapter 214, article 1, section 3, subdivision 1.  This is a 
 10.5   one-time appropriation.  
 10.6      <b>EFFECTIVE DATE:</b>  This section is effective the day 
 10.7   following final enactment. 
 10.8      Sec. 16.  [REPEALER.] 
 10.9      Minnesota Rules, parts 4830.9005 to 4830.9030, are repealed.