1.1                          A bill for an act 
  1.2             relating to higher education; Minnesota state colleges 
  1.3             and universities; making various clarifying, 
  1.4             technical, and conforming changes; making changes to 
  1.5             benefit provisions; expanding purchasing and 
  1.6             contracting authority; providing for treatment of 
  1.7             certain easements; authorizing the board of trustees 
  1.8             to accept and manage federal money; amending Minnesota 
  1.9             Statutes 2002, sections 136F.40, subdivision 2; 
  1.10            136F.45, subdivisions 1, 2; 136F.581, subdivisions 1, 
  1.11            2; 136F.59, subdivision 3; 136F.60, subdivision 3; 
  1.12            proposing coding for new law in Minnesota Statutes, 
  1.13            chapter 136F; repealing Minnesota Statutes 2002, 
  1.14            sections 136F.13; 136F.56; 136F.582; 136F.59, 
  1.15            subdivision 2. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2002, section 136F.40, 
  1.18  subdivision 2, is amended to read: 
  1.19     Subd. 2.  [CONTRACTS.] (a) The board may enter into a 
  1.20  contract with the chancellor, a vice-chancellor, or a president, 
  1.21  containing terms and conditions of employment.  The terms of the 
  1.22  contract must be authorized under a plan approved under section 
  1.23  43A.18, subdivision 3a. 
  1.24     (b) Notwithstanding section 43A.17, subdivision 11, or 
  1.25  other law to the contrary, a contract under this section may 
  1.26  provide a liquidated salary amount or other compensation if a 
  1.27  contract is terminated by the board prior to its expiration.  
  1.28     (c) Notwithstanding section 356.24 or other law to the 
  1.29  contrary, a contract under this section may contain a deferred 
  1.30  compensation plan made in conformance with section 457(f) of the 
  2.1   Internal Revenue Code. 
  2.2      Sec. 2.  Minnesota Statutes 2002, section 136F.45, 
  2.3   subdivision 1, is amended to read: 
  2.4      Subdivision 1.  [PURCHASE.] (a) At the request of an 
  2.5   employee, the board may negotiate and purchase an individual 
  2.6   annuity contract custodial account under section 403(b)(7) of 
  2.7   the Internal Revenue Code, for an employee for retirement or 
  2.8   other purposes from a company licensed to do business in 
  2.9   Minnesota, and may allocate a portion of the compensation 
  2.10  otherwise payable to the employee as salary for the purpose of 
  2.11  paying the entire premium contribution due or to become due 
  2.12  under the contract account.  The allocation shall be made in a 
  2.13  manner that will qualify the annuity premiums custodial account 
  2.14  contributions, or a portion portions thereof, for the benefit 
  2.15  afforded under section 403(b)(7) of the current federal Internal 
  2.16  Revenue Code or any equivalent provision of subsequent federal 
  2.17  income tax law.  The employee shall own the contract account and 
  2.18  the employee's rights thereunder shall be nonforfeitable except 
  2.19  for failure to pay premiums contributions.  
  2.20     (b) At its discretion, and in the same manner provided in 
  2.21  paragraph (a), the board may negotiate and purchase individual 
  2.22  custodial accounts under section 403(b)(7) of the Internal 
  2.23  Revenue Code, for employees of the higher education services 
  2.24  office as defined in section 136A.03.  Participation under this 
  2.25  paragraph must be in accordance with any applicable federal law. 
  2.26     Sec. 3.  Minnesota Statutes 2002, section 136F.45, 
  2.27  subdivision 2, is amended to read: 
  2.28     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
  2.29  shall be deposited in an annuity account established by the 
  2.30  board.  Payment of annuity premiums custodial account 
  2.31  contributions shall be made when due or in accordance with the 
  2.32  salary agreement entered into between the employee and the 
  2.33  board.  The money in the annuity account is not subject to the 
  2.34  budget, allotment, and incumbrance system provided for in 
  2.35  chapter 16A. 
  2.36     Sec. 4.  Minnesota Statutes 2002, section 136F.581, 
  3.1   subdivision 1, is amended to read: 
  3.2      Subdivision 1.  [CONDITIONS AUTHORITY FOR PURCHASES AND 
  3.3   CONTRACTS.] The board and the colleges and universities are 
  3.4   subject to the provisions of section 471.345.  In addition to 
  3.5   the contracting authority under this chapter, the board of 
  3.6   trustees may utilize any contracting options available to the 
  3.7   commissioner of administration under chapters 16A, 16B, 16C or 
  3.8   any other contract option available under state law. 
  3.9      Sec. 5.  Minnesota Statutes 2002, section 136F.581, 
  3.10  subdivision 2, is amended to read: 
  3.11     Subd. 2.  [POLICIES AND PROCEDURES.] The board shall 
  3.12  develop policies, and each college and university shall develop 
  3.13  procedures, for purchases and contracts that are consistent with 
  3.14  the authority granted in subdivision 1.  The policies and 
  3.15  procedures shall be developed through the system and campus 
  3.16  labor management committees and shall include provisions 
  3.17  requiring the system and campuses to determine that they cannot 
  3.18  use available staff before contracting with additional outside 
  3.19  consultants or services.  In addition, each college and 
  3.20  university, in consultation with the system office of the 
  3.21  chancellor, shall develop procedures for those purchases and 
  3.22  contracts that can be accomplished by a college and university 
  3.23  without board approval.  The board policies must allow each 
  3.24  college and university the local authority to enter into 
  3.25  contracts for construction projects of up to $250,000 and to 
  3.26  make other purchases of up to $50,000, without receiving board 
  3.27  approval.  The board may allow a college or university local 
  3.28  authority to make purchases over $50,000 without receiving board 
  3.29  approval. 
  3.30     Sec. 6.  Minnesota Statutes 2002, section 136F.59, 
  3.31  subdivision 3, is amended to read: 
  3.32     Subd. 3.  [OFFICE OF TECHNOLOGY.] The system office of the 
  3.33  chancellor and the campuses shall cooperate with the office of 
  3.34  technology in its responsibility to coordinate information and 
  3.35  communications technology development throughout the state.  The 
  3.36  system and campuses shall consult with the office of technology 
  4.1   throughout any efforts to plan or implement information and 
  4.2   communication systems to ensure that the systems are effective, 
  4.3   efficient, and, where appropriate, compatible with other state 
  4.4   systems. 
  4.5      Sec. 7.  Minnesota Statutes 2002, section 136F.60, 
  4.6   subdivision 3, is amended to read: 
  4.7      Subd. 3.  [EASEMENTS.] (a) The board may grant permanent or 
  4.8   temporary easements over, under, or across any land under its 
  4.9   jurisdiction for reasonable purposes determined by the board as 
  4.10  provided in paragraphs (b) and (c).  
  4.11     (b) The board may grant a revocable easement or permit 
  4.12  under this paragraph.  An easement or permit is revocable by 
  4.13  written notice given by the board if at any time its continuance 
  4.14  will conflict with a public use of the land over, under, or upon 
  4.15  which it is granted, or for any other reason.  The notice must 
  4.16  be in writing and is effective 90 days after the notice is sent 
  4.17  by certified mail to the last known address of the holder of 
  4.18  record of the easement.  If the address of the holder of the 
  4.19  easement or permit is not known, it expires 90 days after the 
  4.20  notice is recorded in the office of the county recorder of the 
  4.21  county in which the land is located.  Upon revocation of an 
  4.22  easement or permit, the board may allow a reasonable time to 
  4.23  vacate the premises affected. 
  4.24     (c) State land subject to an easement or permit granted by 
  4.25  the board remains subject to sale or lease, and the sale or 
  4.26  lease does not revoke the permit or easement granted. 
  4.27     Sec. 8.  [136F.65] [ACCEPTANCE OF FEDERAL MONEY.] 
  4.28     The board of trustees is hereby designated the state agency 
  4.29  empowered to accept any and all money provided for or made 
  4.30  available to this state by the United States of America or any 
  4.31  department or agency thereof for the construction and equipping 
  4.32  of any building for university or college purposes in accordance 
  4.33  with the provisions of federal law and any rules or regulations 
  4.34  promulgated thereunder and are further authorized to do any and 
  4.35  all things required of this state by such federal law and the 
  4.36  rules and regulations promulgated thereunder in order to obtain 
  5.1   such federal money.  
  5.2      Sec. 9.  [REPEALER.] 
  5.3      Minnesota Statutes 2002, sections 136F.13; 136F.56; 
  5.4   136F.582; and 136F.59, subdivision 2, are repealed. 
  5.5      Sec. 10.  [EFFECTIVE DATE.] 
  5.6      Sections 1 to 9 are effective the day following final 
  5.7   enactment.