1.1                          A bill for an act 
  1.2             relating to higher education; creating a separate 
  1.3             subdivision for the salary procedure for the 
  1.4             chancellor of the Minnesota state colleges and 
  1.5             universities; authorizing chancellors and presidents 
  1.6             to receive additional compensation for early contract 
  1.7             termination; amending Minnesota Statutes 1998, 
  1.8             sections 15A.081, subdivision 7b, and by adding a 
  1.9             subdivision; and 136F.40. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1998, section 15A.081, 
  1.12  subdivision 7b, is amended to read: 
  1.13     Subd. 7b.  [HIGHER EDUCATION OFFICERS SERVICES OFFICE 
  1.14  DIRECTOR.] The board of trustees of the Minnesota state colleges 
  1.15  and universities and The higher education services council shall 
  1.16  set the salary rates rate for, respectively, the chancellor of 
  1.17  the Minnesota state colleges and universities and the director 
  1.18  of the higher education services office.  The board or the 
  1.19  council shall submit the proposed salary change to the 
  1.20  legislative coordinating commission for approval, modification, 
  1.21  or rejection in the manner provided in section 3.855.  
  1.22     In deciding whether to recommend a salary increase, the 
  1.23  governing board or council shall consider the performance of the 
  1.24  chancellor or director, including the chancellor's or director's 
  1.25  progress toward attaining affirmative action goals. 
  1.26     Sec. 2.  Minnesota Statutes 1998, section 15A.081, is 
  1.27  amended by adding a subdivision to read: 
  2.1      Subd. 7c.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES 
  2.2   CHANCELLOR.] The board of trustees of the Minnesota state 
  2.3   colleges and universities shall establish a salary range for the 
  2.4   position of chancellor of the Minnesota state colleges and 
  2.5   universities.  The board shall submit the proposed salary range 
  2.6   to the legislative coordinating commission for approval, 
  2.7   modification, or rejection in the manner provided in section 
  2.8   3.855.  The board shall establish the salary for the chancellor 
  2.9   within the approved salary range. 
  2.10     In deciding whether to approve a salary increase, the board 
  2.11  shall consider the performance of the chancellor, including the 
  2.12  chancellor's progress toward attaining affirmative action goals. 
  2.13     Sec. 3.  Minnesota Statutes 1998, section 136F.40, is 
  2.14  amended to read: 
  2.15     136F.40 [APPOINTMENT OF PERSONNEL.] 
  2.16     Subdivision 1.  [APPOINTMENT PROCEDURE.] The board shall 
  2.17  appoint all presidents, teachers, and other necessary employees 
  2.18  and shall prescribe their duties consistent with chapter 43A.  
  2.19  Salaries and benefits of employees must be determined according 
  2.20  to chapters 43A and 179A and other applicable provisions.  
  2.21     Subd. 2.  [COMPENSATION.] Notwithstanding any other 
  2.22  provision to the contrary, when establishing compensation the 
  2.23  board may provide, through a contract, a liquidated salary 
  2.24  amount or other compensation if a contract with a chancellor or 
  2.25  president is terminated by the board prior to its expiration. 
  2.26     Any benefits under this subdivision shall be excluded in 
  2.27  computation of retirement, insurance, and other benefits 
  2.28  available through or from the state.  Any benefits or additional 
  2.29  compensation under this subdivision must be as provided under 
  2.30  the plan approved under section 43A.18, subdivision 3a.