1.1                          A bill for an act 
  1.2             relating to higher education; appropriating money for 
  1.3             higher education and related purposes to the higher 
  1.4             education services office, board of trustees of the 
  1.5             Minnesota state colleges and universities, board of 
  1.6             regents of the University of Minnesota, and the Mayo 
  1.7             Medical Foundation, with certain conditions; 
  1.8             authorizing revenue bonds; making changes to financial 
  1.9             aid programs, the higher education services office, 
  1.10            and the Minnesota state colleges and universities; 
  1.11            adding students to the regent candidate advisory 
  1.12            council; amending Minnesota Statutes 2002, sections 
  1.13            41D.01, subdivision 4; 93.22, subdivision 2; 124D.42, 
  1.14            subdivision 3; 135A.14, by adding a subdivision; 
  1.15            136A.03; 136A.031, subdivisions 2, 5; 136A.08, 
  1.16            subdivision 3; 136A.101, subdivision 5a; 136A.121, 
  1.17            subdivisions 6, 7, 9, 9a, 13; 136A.1211; 136A.125, 
  1.18            subdivision 2; 136A.171; 136A.29, subdivision 9; 
  1.19            136A.69; 136F.12; 136F.40, subdivision 2; 136F.45, 
  1.20            subdivisions 1, 2; 136F.581, subdivisions 1, 2; 
  1.21            136F.59, subdivision 3; 136F.60, subdivision 3; 
  1.22            136G.01; 136G.03, subdivision 31, by adding 
  1.23            subdivisions; 136G.05, subdivisions 4, 5, 10; 136G.09, 
  1.24            subdivisions 1, 2, 6, 7, 8, 9; 136G.11, subdivisions 
  1.25            1, 2, 3, 9, 13; 136G.13, subdivisions 1, 3; 137.0245, 
  1.26            subdivision 2; 299A.45, subdivision 2; proposing 
  1.27            coding for new law in Minnesota Statutes, chapters 
  1.28            135A; 136F; 136G; 137; repealing Minnesota Statutes 
  1.29            2002, sections 15A.081, subdivision 7b; 17.985; 
  1.30            93.223, subdivision 2; 93.2235, subdivision 2; 
  1.31            124D.95; 136A.011; 136A.031, subdivisions 1, 3, 4; 
  1.32            136A.07; 136A.124; 136F.13; 136F.56; 136F.582; 
  1.33            136F.59, subdivision 2; 136G.03, subdivision 25. 
  1.34  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.35                             ARTICLE 1 
  1.36                           APPROPRIATIONS 
  1.37  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.38     The sums in the columns marked "APPROPRIATIONS" are 
  1.39  appropriated from the general fund, or other named fund, to the 
  2.1   agencies and for the purposes specified in this article.  The 
  2.2   listing of an amount under the figure "2004" or "2005" in this 
  2.3   article indicates that the amount is appropriated to be 
  2.4   available for the fiscal year ending June 30, 2004, or June 30, 
  2.5   2005, respectively.  "The first year" is fiscal year 2004.  "The 
  2.6   second year" is fiscal year 2005.  "The biennium" is fiscal 
  2.7   years 2004 and 2005. 
  2.8                           SUMMARY BY FUND 
  2.9                             2004          2005           TOTAL
  2.10  General            $1,296,742,000 $1,301,970,000 $2,598,712,000
  2.11  Health Care
  2.12  Access                  2,157,000      2,157,000      4,314,000
  2.13                   SUMMARY BY AGENCY - ALL FUNDS
  2.14                            2004          2005           TOTAL
  2.15  Higher Education Services Office
  2.16                        177,102,000    192,734,000    369,836,000
  2.17  Board of Trustees of the Minnesota
  2.18  State Colleges and Universities
  2.19                        567,381,000    554,194,000  1,121,575,000
  2.20  Board of Regents of the University
  2.21  of Minnesota
  2.22                        552,941,000    555,724,000  1,108,665,000
  2.23  Mayo Medical Foundation
  2.24                          1,475,000      1,475,000      2,950,000
  2.25                                            APPROPRIATIONS 
  2.26                                         Available for the Year 
  2.27                                             Ending June 30 
  2.28                                            2004         2005 
  2.29  Sec. 2.  HIGHER EDUCATION
  2.30  SERVICES OFFICE
  2.31  Subdivision 1. Total
  2.32  Appropriation                     $  177,102,000 $  192,734,000 
  2.33  The amounts that may be spent from this 
  2.34  appropriation for each purpose are 
  2.35  specified in the following subdivisions.
  2.36  Notwithstanding Minnesota Statutes, 
  2.37  section 136A.1211, savings in the state 
  2.38  grant program in fiscal years 2004 and 
  2.39  2005 resulting from any increases in 
  2.40  the maximum federal grant must be used 
  2.41  as provided in this section. 
  2.42  Subd. 2.  State Grants               142,675,000    158,307,000 
  2.43  If the appropriation in this 
  2.44  subdivision for either year is 
  3.1   insufficient, the appropriation for the 
  3.2   other year is available for it.  
  3.3   For the biennium, the private 
  3.4   institution tuition maximum shall be 
  3.5   $8,983 in the first year and $8,983 in 
  3.6   the second year for four-year 
  3.7   institutions and $6,913 in the first 
  3.8   year and $6,913 in the second year for 
  3.9   two-year institutions. 
  3.10  This appropriation contains money to 
  3.11  set the living and miscellaneous 
  3.12  expense allowance at $5,405 in each 
  3.13  year. 
  3.14  The appropriation contains money to 
  3.15  provide educational benefits to 
  3.16  dependent children under age 23 and the 
  3.17  spouses of public safety officers 
  3.18  killed in the line of duty pursuant to 
  3.19  Minnesota Statutes 2002, section 
  3.20  299A.45.  
  3.21  Subd. 3.  Interstate Tuition
  3.22  Reciprocity                            3,600,000      3,600,000 
  3.23  If the appropriation in this 
  3.24  subdivision for either year is 
  3.25  insufficient, the appropriation for the 
  3.26  other year is available to meet 
  3.27  reciprocity contract obligations. 
  3.28  Subd. 4.  State Work Study            12,444,000     12,444,000 
  3.29  Subd. 5.  Child Care Grants            4,743,000      4,743,000 
  3.30  Subd. 6.  Minitex                      4,381,000      4,381,000 
  3.31  Subd. 7.  MnLINK                         450,000        450,000 
  3.32  The base appropriation for MnLINK 
  3.33  operations is $400,000 each year in 
  3.34  fiscal years 2006 and 2007. 
  3.35  Any unexpended funds from the 
  3.36  appropriation in Laws 1997, chapter 
  3.37  183, article 1, section 2, subdivision 
  3.38  8, shall cancel on June 30, 2005. 
  3.39  Subd. 8.  Learning Network  
  3.40  of Minnesota                           4,829,000      4,829,000 
  3.41  Subd. 9.  Minnesota College 
  3.42  Savings Plan                           1,120,000      1,120,000 
  3.43  Subd. 10.  Income Contingent
  3.44  Loans
  3.45  The higher education services office 
  3.46  shall administer an income-contingent 
  3.47  loan repayment program to assist 
  3.48  graduates of Minnesota schools in 
  3.49  medicine, dentistry, pharmacy, 
  3.50  chiropractic medicine, public health, 
  3.51  and veterinary medicine, and Minnesota 
  3.52  residents graduating from optometry and 
  3.53  osteopathy programs.  Applicant data 
  3.54  collected by the office for this 
  3.55  program may be disclosed to a consumer 
  3.56  credit reporting agency under the same 
  4.1   conditions as those that apply to the 
  4.2   supplemental loan program under 
  4.3   Minnesota Statutes, section 136A.162.  
  4.4   No new applicants may be accepted after 
  4.5   June 30, 1995. 
  4.6   Subd. 11.  Agency 
  4.7   Administration                         2,860,000      2,860,000 
  4.8   Subd. 12.  Balances Forward 
  4.9   A balance in the first year under this 
  4.10  section does not cancel, but is 
  4.11  available for the second year. 
  4.12  Subd. 13.  Transfers 
  4.13  The higher education services office 
  4.14  may transfer unencumbered balances from 
  4.15  the appropriations in this section to 
  4.16  the state grant appropriation, the 
  4.17  interstate tuition reciprocity 
  4.18  appropriation, the child care 
  4.19  appropriation, and the state work study 
  4.20  appropriation. 
  4.21  Subd. 14.  Reporting
  4.22  The higher education services office 
  4.23  shall collect data monthly from 
  4.24  institutions disbursing state financial 
  4.25  aid.  The data collected shall include, 
  4.26  but is not limited to, expenditures by 
  4.27  type to date and unexpended balances. 
  4.28  The higher education services office 
  4.29  shall evaluate and report monthly on 
  4.30  state financial aid expenditures and 
  4.31  unexpended balances to the chairs of 
  4.32  the higher education finance committees 
  4.33  of the senate and house of 
  4.34  representatives and the commissioner of 
  4.35  finance.  By July 15, December 15, 
  4.36  February 15, and April 15, the services 
  4.37  office shall provide updated state 
  4.38  grant spending projections taking into 
  4.39  account the most current and projected 
  4.40  enrollment and tuition and fee 
  4.41  information, economic conditions, and 
  4.42  other relevant factors.  Before 
  4.43  submitting state grant spending 
  4.44  projections, the office shall meet and 
  4.45  consult with representatives of public 
  4.46  and private postsecondary education, 
  4.47  the department of finance, governor's 
  4.48  office, legislative staff, and 
  4.49  financial aid administrators.  The 
  4.50  institutions are encouraged to provide 
  4.51  tuition information to the higher 
  4.52  education services office no later than 
  4.53  July 1 of each year. 
  4.54  Sec. 3.  BOARD OF TRUSTEES OF THE
  4.55  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  4.56  Subdivision 1.  Total
  4.57  Appropriation                        567,381,000    554,194,000 
  4.58  The amounts that may be spent from this 
  4.59  appropriation for each purpose are 
  4.60  specified in the following subdivisions.
  5.1   The legislature intends that state 
  5.2   appropriations be used to strengthen 
  5.3   and support education of students.  To 
  5.4   this end, all money appropriated in 
  5.5   this section, except that in direct 
  5.6   support of system office activities, 
  5.7   shall be allocated by the board 
  5.8   directly to the colleges and 
  5.9   universities. 
  5.10  The legislature intends that the office 
  5.11  of the chancellor must reduce its 
  5.12  expenditures during the biennium ending 
  5.13  June 30, 2005, in at least the same 
  5.14  proportion as the reduction in the 
  5.15  allocation of state appropriations to 
  5.16  MnSCU institutions.  
  5.17  Subd. 2.  Operations and
  5.18  Maintenance                          564,381,000    551,194,000 
  5.19  Estimated Expenditures 
  5.20  and Appropriations 
  5.21  The legislature estimates that 
  5.22  instructional expenditures will be 
  5.23  $758,713,000 in the first year and 
  5.24  $738,933,000 in the second year.  The 
  5.25  legislature estimates that 
  5.26  noninstructional expenditures will be 
  5.27  $61,572,000 in the first year and 
  5.28  $61,572,000 in the second year. 
  5.29  During the biennium, neither the board 
  5.30  nor campuses shall plan or develop 
  5.31  doctoral level programs or degrees 
  5.32  until after they have received the 
  5.33  recommendation of the house and senate 
  5.34  committees on education, finance, and 
  5.35  ways and means. 
  5.36  During the biennium, technical and 
  5.37  consolidated colleges shall make use of 
  5.38  instructional advisory committees 
  5.39  consisting of employers, students, and 
  5.40  instructors.  The instructional 
  5.41  advisory committee shall be consulted 
  5.42  when a technical program is proposed to 
  5.43  be created, modified, or eliminated.  
  5.44  If a decision is made to eliminate a 
  5.45  program, a college shall adequately 
  5.46  notify students and make plans to 
  5.47  assist students affected by the closure.
  5.48  The board must publish an 
  5.49  Internet-based student manual that 
  5.50  identifies and describes how general 
  5.51  education courses at two-year MnSCU 
  5.52  institutions transfer to state 
  5.53  universities within the Minnesota state 
  5.54  colleges and universities system. 
  5.55  In each year, the board of trustees 
  5.56  shall increase the percentage of the 
  5.57  total general fund expenditures for 
  5.58  direct instruction and academic 
  5.59  support, as reported in the federal 
  5.60  Integrated Postsecondary Education Data 
  5.61  System (IPEDS). 
  5.62  By February 15 of each year, the board 
  6.1   of trustees shall report to the higher 
  6.2   education finance committees of the 
  6.3   legislature the percentage of total 
  6.4   general fund expenditures spent on 
  6.5   direct instruction and on academic 
  6.6   support during the previous fiscal year 
  6.7   by institution and for the system as a 
  6.8   whole. 
  6.9   The board may waive tuition for 
  6.10  eligible Southwest Asia veterans, as 
  6.11  provided in Minnesota Statutes, section 
  6.12  136F.28.  
  6.13  Subd. 3.  Health Education             3,000,000      3,000,000
  6.14  This appropriation is for health 
  6.15  education to meet the health care needs 
  6.16  of Minnesota by increasing nursing 
  6.17  graduates, recruiting nursing faculty, 
  6.18  and expanding the use of technology and 
  6.19  distance education in nursing and 
  6.20  allied healthcare. 
  6.21  Subd. 4.  Accountability 
  6.22  The board shall continue to submit 
  6.23  reports as required by Laws 2001, First 
  6.24  Special Session chapter 1, article 1, 
  6.25  section 3, subdivision 3. 
  6.26  Subd. 5.  Land Sales 
  6.27  Notwithstanding Minnesota Statutes 
  6.28  2002, sections 94.09 to 94.16, or any 
  6.29  other law to the contrary, in the 
  6.30  biennium ending June 30, 2005, the 
  6.31  board of trustees may sell surplus 
  6.32  state-owned land of an institution.  
  6.33  The board must deposit the net proceeds 
  6.34  of the sale in the account of the 
  6.35  institution from which the land was 
  6.36  sold.  The board must report all land 
  6.37  sales under this subdivision to the 
  6.38  chairs of the higher education 
  6.39  committees in the house and the senate 
  6.40  by January 1, 2006. 
  6.41  Sec. 4.  BOARD OF REGENTS OF THE 
  6.42  UNIVERSITY OF MINNESOTA 
  6.43  Subdivision 1.  Total
  6.44  Appropriation                        552,941,000    555,724,000 
  6.45  The amounts that may be spent from this 
  6.46  appropriation for each purpose are 
  6.47  specified in the following subdivisions.
  6.48  Subd. 2.  Operations and
  6.49  Maintenance                          486,300,000    489,083,000 
  6.50  Estimated Expenditures 
  6.51  and Appropriations 
  6.52  The legislature estimates that 
  6.53  instructional expenditures will be 
  6.54  $370,547,000 in the first year and 
  6.55  $374,676,000 in the second year.  The 
  6.56  legislature estimates that 
  6.57  noninstructional expenditures will be 
  6.58  $240,209,000 the first year and 
  7.1   $240,619,000 in the second year. 
  7.2   Subd. 3.  Health Care Access Fund      2,157,000      2,157,000
  7.3   This appropriation is from the health 
  7.4   care access fund for primary care 
  7.5   education initiatives. 
  7.6   Subd. 4.  Special
  7.7   Appropriation                         64,484,000     64,484,000
  7.8   The board may transfer amounts in this 
  7.9   subdivision to the operations and 
  7.10  maintenance appropriations in 
  7.11  subdivision 2. 
  7.12  (a) Agriculture and Extension Service 
  7.13      51,518,000     51,518,000
  7.14  This appropriation is for the 
  7.15  Agricultural Experiment Station, 
  7.16  Minnesota Extension Service. 
  7.17  The university must continue to provide 
  7.18  support for the rapid agricultural 
  7.19  response fund, and sustainable and 
  7.20  organic agriculture initiatives 
  7.21  including, but not limited to, the 
  7.22  alternative swine systems program. 
  7.23  Any salary increases granted by the 
  7.24  university to personnel paid from the 
  7.25  Minnesota Extension appropriation must 
  7.26  not result in a reduction of the county 
  7.27  responsibility for the salary payments. 
  7.28  During the biennium, the university 
  7.29  shall maintain an advisory council 
  7.30  system for each experiment station.  
  7.31  The advisory councils must be broadly 
  7.32  representative of the range in size and 
  7.33  income distribution of farms and 
  7.34  agribusinesses and must not 
  7.35  disproportionately represent those from 
  7.36  the upper half of the size and income 
  7.37  distributions.  
  7.38  (b) Health Sciences 
  7.39       5,016,000      5,016,000
  7.40  This appropriation is for the rural 
  7.41  physicians associates program, the 
  7.42  Veterinary Diagnostic Laboratory, 
  7.43  health sciences research, dental care, 
  7.44  and the Biomedical Engineering Center. 
  7.45  (c) Institute of Technology  
  7.46       1,411,000      1,411,000
  7.47  This appropriation is for the 
  7.48  Geological Survey and the Talented 
  7.49  Youth Mathematics Program. 
  7.50  (d) System Specials 
  7.51       6,539,000      6,539,000
  7.52  This appropriation is for general 
  8.1   research, student loans matching money, 
  8.2   industrial relations education, Natural 
  8.3   Resources Research Institute, Center 
  8.4   for Urban and Regional Affairs, Bell 
  8.5   Museum of Natural History, and the 
  8.6   Humphrey exhibit. 
  8.7   Subd. 5.  Academic Health Center 
  8.8   The appropriation under Minnesota 
  8.9   Statutes, section 137.026, if enacted, 
  8.10  is anticipated to be $22,515,000 in the 
  8.11  first year and $22,403,000 in the 
  8.12  second year. 
  8.13  Subd. 6.  Accountability 
  8.14  The board shall continue to submit 
  8.15  reports as required by Laws 2001, First 
  8.16  Special Session chapter 1, article 1, 
  8.17  section 4, subdivision 5, or a 
  8.18  comparable accountability report. 
  8.19  Sec. 5.  MAYO MEDICAL FOUNDATION 
  8.20  Subdivision 1.  Total
  8.21  Appropriation                           1,475,000       1,475,000
  8.22  The amounts that may be spent from this 
  8.23  appropriation for each purpose are 
  8.24  specified in the following subdivisions.
  8.25  If appropriations are insufficient to 
  8.26  cover the rates established in 
  8.27  subdivisions 2 and 3, the Mayo Medical 
  8.28  Foundation may evenly distribute the 
  8.29  funds received among students who are 
  8.30  Minnesota residents. 
  8.31  Subd. 2.  Medical School                  545,000         545,000
  8.32  The state of Minnesota must pay a 
  8.33  capitation of $14,405 each year for 
  8.34  each student who is a resident of 
  8.35  Minnesota.  The appropriation may be 
  8.36  transferred between years of the 
  8.37  biennium to accommodate enrollment 
  8.38  fluctuations. 
  8.39  The legislature intends that during the 
  8.40  biennium the Mayo foundation use the 
  8.41  capitation money to increase the number 
  8.42  of doctors practicing in rural areas in 
  8.43  need of doctors.  
  8.44  Subd. 3.  Family Practice and
  8.45  Graduate Residency Program                563,000         563,000
  8.46  The state of Minnesota must pay a 
  8.47  capitation of $22,313 for 26 residents 
  8.48  each year and $44,627 for one resident 
  8.49  each year. 
  8.50  Subd. 4.  St. Cloud Hospital-Mayo 
  8.51  Family Practice Residency Program         367,000         367,000
  8.52  This appropriation is to the Mayo 
  8.53  foundation to support 12 resident 
  8.54  physicians each year in the St. Cloud 
  8.55  Hospital-Mayo Family Practice Residency 
  8.56  program.  The program shall prepare 
  9.1   doctors to practice primary care 
  9.2   medicine in the rural areas of the 
  9.3   state.  It is intended that this 
  9.4   program will improve health care in 
  9.5   rural communities, provide affordable 
  9.6   access to appropriate medical care, and 
  9.7   manage the treatment of patients in a 
  9.8   more cost-effective manner. 
  9.9                              ARTICLE 2 
  9.10                         RELATED PROVISIONS 
  9.11     Section 1.  Minnesota Statutes 2002, section 41D.01, 
  9.12  subdivision 4, is amended to read: 
  9.13     Subd. 4.  [EXPIRATION.] This section expires on June 
  9.14  30, 2003 2008. 
  9.15     Sec. 2.  Minnesota Statutes 2002, section 93.22, 
  9.16  subdivision 2, is amended to read: 
  9.17     Subd. 2.  [TACONITE LEASE REVENUE.] Notwithstanding 
  9.18  subdivision 1, from July 1, 2001, to June 30, 2006, payments 
  9.19  made under state taconite leases shall be distributed as follows:
  9.20     (1) if the lands or minerals and mineral rights covered by 
  9.21  a lease are held by the state by virtue of a school, swamp, or 
  9.22  internal improvement land grant of Congress, payments made under 
  9.23  the lease shall be distributed annually on September 1 to the 
  9.24  school fund mineral lease suspense account created under section 
  9.25  93.223, subdivision 1; and. 
  9.26     (2) if the lands or minerals and mineral rights covered by 
  9.27  a lease are held by the state by virtue of a university land 
  9.28  grant of Congress, payments made under the lease shall be 
  9.29  distributed annually on September 1 to the university mineral 
  9.30  lease suspense account created under section 93.223, subdivision 
  9.31  2. 
  9.32     Sec. 3.  Minnesota Statutes 2002, section 124D.42, 
  9.33  subdivision 3, is amended to read: 
  9.34     Subd. 3.  [POSTSERVICE BENEFIT.] (a) Each eligible 
  9.35  organization must agree to provide to every participant who 
  9.36  fulfills the terms of a contract under subdivision 2, a 
  9.37  nontransferable postservice benefit.  The benefit must be not 
  9.38  less than $4,725 per year of full-time service or prorated for 
  9.39  part-time service or for partial service of at least 900 hours.  
 10.1   Upon signing a contract under subdivision 2, each eligible 
 10.2   organization must deposit funds to cover the full amount of 
 10.3   postservice benefits obligated, except for national education 
 10.4   awards that are deposited in the national service trust fund.  
 10.5   Funds encumbered in fiscal years 1994 and 1995 for postservice 
 10.6   benefits must be available until the participants for whom the 
 10.7   funds were encumbered are no longer eligible to draw benefits.  
 10.8      (b) Nothing in this subdivision prevents a grantee 
 10.9   organization from using funds from nonfederal or nonstate 
 10.10  sources to increase the value of postservice benefits above the 
 10.11  value described in paragraph (a). 
 10.12     (c) The higher education services office must establish an 
 10.13  account for depositing funds for postservice benefits received 
 10.14  from eligible organizations.  If a participant does not complete 
 10.15  the term of service or, upon successful completion of the 
 10.16  program, does not use a postservice benefit according to 
 10.17  subdivision 4 within seven years, the amount of the postservice 
 10.18  benefit must be refunded to the eligible organization or, at the 
 10.19  organization's discretion, dedicated to another eligible 
 10.20  participant.  Interest earned on funds deposited in the 
 10.21  postservice benefit account is appropriated to the higher 
 10.22  education services office for the costs of administering the 
 10.23  postservice benefits accounts.  
 10.24     (d) The state must provide an additional postservice 
 10.25  benefit to any participant who successfully completes the 
 10.26  program.  The benefit must be a credit of five points to be 
 10.27  added to the competitive open rating of a participant who 
 10.28  obtains a passing grade on a civil service examination under 
 10.29  chapter 43A.  The benefit is available for five years after 
 10.30  completing the community service. 
 10.31     Sec. 4.  Minnesota Statutes 2002, section 135A.14, is 
 10.32  amended by adding a subdivision to read: 
 10.33     Subd. 6a.  [MENINGITIS INFORMATION.] Each public and 
 10.34  private postsecondary institution shall provide information on 
 10.35  the risks of meningococcal disease and on the availability and 
 10.36  effectiveness of any vaccine to each individual who is a 
 11.1   first-time enrollee and who resides in on-campus student 
 11.2   housing.  The institution may provide the information in an 
 11.3   electronic format.  The institution must consult with the 
 11.4   department of health on the preparation of the informational 
 11.5   materials provided under this subdivision. 
 11.6      Sec. 5.  [135A.157] [PENALTIES FOR RIOTING.] 
 11.7      A student in a postsecondary institution who is convicted 
 11.8   of riot under section 609.71 is not eligible for a state grant 
 11.9   award under section 136A.121 following conviction and must pay 
 11.10  the highest applicable tuition rate, including the nonresident 
 11.11  tuition rate, to attend a public postsecondary institution in 
 11.12  any subsequent enrollment periods. 
 11.13     Sec. 6.  Minnesota Statutes 2002, section 136A.03, is 
 11.14  amended to read: 
 11.15     136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
 11.16     The office of higher education shall be under the 
 11.17  administrative control of the director.  The director of the 
 11.18  higher education services office shall possess the powers and 
 11.19  perform the duties as prescribed by the higher education 
 11.20  services council and shall provided in this chapter.  The 
 11.21  director shall be appointed by the governor with the advice and 
 11.22  consent of the senate and serve in the unclassified service of 
 11.23  the state civil service.  The director, or the director's 
 11.24  designated representative, on behalf of the office is authorized 
 11.25  to sign contracts and execute all instruments necessary or 
 11.26  appropriate to carry out the purposes of sections 136A.01 to 
 11.27  136A.178 for the office.  The salary of the director shall be 
 11.28  established by the higher education services council according 
 11.29  to section 15A.0815.  The director shall be a person qualified 
 11.30  by training or experience in the field of higher education or in 
 11.31  financial aid administration.  The director may appoint other 
 11.32  professional employees who shall serve in the unclassified 
 11.33  service of the state civil service.  All other employees shall 
 11.34  be in the classified civil service.  
 11.35     An officer or professional employee in the unclassified 
 11.36  service as provided in this section is a person who has studied 
 12.1   higher education or a related field at the graduate level or has 
 12.2   similar experience and who is qualified for a career in 
 12.3   financial aid and other aspects of higher education and for 
 12.4   activities in keeping with the planning and administrative 
 12.5   responsibilities of the office and who is appointed to assume 
 12.6   responsibility for administration of educational programs or 
 12.7   research in matters of higher education. 
 12.8      Sec. 7.  Minnesota Statutes 2002, section 136A.031, 
 12.9   subdivision 2, is amended to read: 
 12.10     Subd. 2.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
 12.11  education advisory council (HEAC) is established.  The HEAC is 
 12.12  composed of the director of the office of higher education, who 
 12.13  shall serve as chair; the president and the senior 
 12.14  vice-president for academic affairs of the University of 
 12.15  Minnesota or designee; the chancellor of the Minnesota state 
 12.16  colleges and universities or designee; the associate 
 12.17  vice-chancellors of the state universities, community colleges, 
 12.18  and technical colleges; the commissioner of children, families, 
 12.19  and learning; the president of the private college council; and 
 12.20  a representative from the Minnesota association of private 
 12.21  post-secondary schools.  The HEAC shall also be composed of the 
 12.22  following members who shall be appointed by the governor:  three 
 12.23  citizen members, representing urban, rural, and regional areas 
 12.24  of the state, who are qualified by training or experience in the 
 12.25  fields of higher education, job skills training, and business; 
 12.26  and six student members, one representing the University of 
 12.27  Minnesota, three representing the Minnesota state colleges and 
 12.28  universities, one student representing four-year universities, 
 12.29  one student representing two-year community colleges, and one 
 12.30  student representing two-year technical colleges, one private 
 12.31  college student, and one private vocational school student.  The 
 12.32  term of citizen members is five years.  The term of student 
 12.33  members is two years.  The HEAC shall (1) bring to the attention 
 12.34  of the higher education services council governor any matters 
 12.35  that the HEAC deems necessary, and (2) review and comment upon 
 12.36  matters before the council as requested.  The council shall 
 13.1   refer all proposals to the HEAC before submitting 
 13.2   recommendations to the governor and the legislature.  The 
 13.3   council shall provide time for a report from the HEAC at each 
 13.4   meeting of the council. 
 13.5      Sec. 8.  Minnesota Statutes 2002, section 136A.031, 
 13.6   subdivision 5, is amended to read: 
 13.7      Subd. 5.  [EXPIRATION.] Notwithstanding section 15.059, 
 13.8   subdivision 5a 5, the advisory groups group established in this 
 13.9   section expire expires on June 30, 2003 2005. 
 13.10     Sec. 9.  Minnesota Statutes 2002, section 136A.08, 
 13.11  subdivision 3, is amended to read: 
 13.12     Subd. 3.  [WISCONSIN.] A higher education reciprocity 
 13.13  agreement with the state of Wisconsin may include provision for 
 13.14  the transfer of funds between Minnesota and Wisconsin provided 
 13.15  that an income tax reciprocity agreement between Minnesota and 
 13.16  Wisconsin is in effect for the period of time included under the 
 13.17  higher education reciprocity agreement.  If this provision is 
 13.18  included, the amount of funds to be transferred shall be 
 13.19  determined according to a formula which is mutually acceptable 
 13.20  to the office and a duly designated agency representing 
 13.21  Wisconsin.  The formula shall recognize differences in tuition 
 13.22  rates between the two states and the number of students 
 13.23  attending institutions in each state under the agreement.  Any 
 13.24  payments to Minnesota by Wisconsin shall be deposited by the 
 13.25  office in the general fund of the state treasury.  The amount 
 13.26  required for the payments shall be certified by the director of 
 13.27  the office to the commissioner of finance annually. 
 13.28     Sec. 10.  Minnesota Statutes 2002, section 136A.101, 
 13.29  subdivision 5a, is amended to read: 
 13.30     Subd. 5a.  [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 
 13.31  family responsibility" means the amount of a family contribution 
 13.32  to a student's cost of attendance, as determined by a federal 
 13.33  need analysis, except that, beginning for the 1998-1999 academic 
 13.34  year, up to $25,000 in savings and other assets shall be 
 13.35  subtracted from the federal calculation of net worth before 
 13.36  determining the contribution.  For dependent students, the 
 14.1   assigned family responsibility is the parental contribution.  
 14.2   For independent students with dependents other than a spouse, 
 14.3   the assigned family responsibility is the student contribution. 
 14.4   For independent students without dependents other than a spouse, 
 14.5   the assigned family responsibility is 80 percent of the student 
 14.6   contribution.  Beginning in fiscal year 2002, The assigned 
 14.7   family responsibility for all independent students is reduced an 
 14.8   additional ten percent.  
 14.9      Sec. 11.  Minnesota Statutes 2002, section 136A.121, 
 14.10  subdivision 6, is amended to read: 
 14.11     Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
 14.12  attendance consists of allowances specified in law for living 
 14.13  and miscellaneous expenses, and an allowance for tuition and 
 14.14  fees equal to the lesser of the actual tuition and fees charged 
 14.15  by the institution, or the private institution tuition and fee 
 14.16  maximums established in law. 
 14.17     (b) For the purpose of paragraph (a), the private 
 14.18  institution tuition and fee maximum for two- and four-year, 
 14.19  private, residential, liberal arts, degree-granting colleges and 
 14.20  universities must be the same. 
 14.21     (c) For a student registering for less than full time, the 
 14.22  office shall prorate the living and miscellaneous expense 
 14.23  allowance to the actual number of credits for which the student 
 14.24  is enrolled. 
 14.25     The recognized cost of attendance for a student who is 
 14.26  confined to a Minnesota correctional institution shall consist 
 14.27  of the tuition and fee component in paragraph (a), with no 
 14.28  allowance for living and miscellaneous expenses. 
 14.29     Sec. 12.  Minnesota Statutes 2002, section 136A.121, 
 14.30  subdivision 7, is amended to read: 
 14.31     Subd. 7.  [INSUFFICIENT APPROPRIATION.] (a) If the amount 
 14.32  appropriated is determined by the office to be insufficient to 
 14.33  make full awards to applicants under subdivision 5, before any 
 14.34  award for that year has been disbursed, awards must be reduced 
 14.35  the office shall reduce awards by: 
 14.36     (1) prorating awards for summer academic terms; 
 15.1      (2) adding a surcharge to the applicant's assigned family 
 15.2   responsibility, as defined in section 136A.101, subdivision 5a; 
 15.3   and 
 15.4      (2) (3) adding a percentage increase in the applicant's 
 15.5   assigned student responsibility, as defined in subdivision 5.  
 15.6      The office may establish an award cutoff deadline, if 
 15.7   necessary.  If a grant for a summer term is prorated under this 
 15.8   section, credits earned during the term do not count toward the 
 15.9   student's enrollment limit under subdivision 9.  
 15.10     Sec. 13.  Minnesota Statutes 2002, section 136A.121, 
 15.11  subdivision 9, is amended to read: 
 15.12     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 15.13  office's requirements is eligible to apply for and receive a 
 15.14  grant in any year of undergraduate study unless the student has 
 15.15  obtained a baccalaureate degree or previously has been enrolled 
 15.16  full time or the equivalent for ten eight semesters or the 
 15.17  equivalent, excluding courses taken from a Minnesota school or 
 15.18  post-secondary institution which is not participating in the 
 15.19  state grant program and from which a student transferred no 
 15.20  credit.  A student enrolled in a two-year program at a four-year 
 15.21  institution is only eligible for the tuition and fee maximums 
 15.22  established by law for two-year institutions. 
 15.23     Sec. 14.  Minnesota Statutes 2002, section 136A.121, 
 15.24  subdivision 9a, is amended to read: 
 15.25     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 15.26  grants for four consecutive quarters or three consecutive 
 15.27  semesters during the course of a single fiscal year.  In 
 15.28  calculating a state grant for the fourth quarter or third 
 15.29  semester, the office must use the same calculation as it would 
 15.30  for any other term, except that the calculation must subtract 
 15.31  any Pell grant for which a student would be eligible even if the 
 15.32  student has exhausted the Pell grant for that fiscal year.  
 15.33     Sec. 15.  Minnesota Statutes 2002, section 136A.121, 
 15.34  subdivision 13, is amended to read: 
 15.35     Subd. 13.  [DEADLINE.] The office shall accept applications 
 15.36  for state grants until October 15 for awards for the first 
 16.1   semester or equivalent enrollment period and until February 15 
 16.2   and may establish a deadline for the acceptance of applications 
 16.3   that is later than February 15 for awards for the second 
 16.4   semester or equivalent enrollment period of each academic year.  
 16.5   A student who applies for state grant funds after the first 
 16.6   semester or the equivalent of the academic year may not receive 
 16.7   retroactive funding for the entire academic year. 
 16.8      Sec. 16.  Minnesota Statutes 2002, section 136A.1211, is 
 16.9   amended to read: 
 16.10     136A.1211 [USE OF STATE GRANT SAVINGS.] 
 16.11     Savings in the state grant program resulting from an 
 16.12  increase in the maximum federal Pell grant from the anticipated 
 16.13  level of $3,125 $4,050 shall be used by the office to increase 
 16.14  the living and miscellaneous expense allowance. 
 16.15     Sec. 17.  Minnesota Statutes 2002, section 136A.125, 
 16.16  subdivision 2, is amended to read: 
 16.17     Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
 16.18  a child care grant if the applicant: 
 16.19     (1) is a resident of the state of Minnesota; 
 16.20     (2) has a child 12 years of age or younger, or 14 years of 
 16.21  age or younger who is handicapped as defined in section 125A.02, 
 16.22  and who is receiving or will receive care on a regular basis 
 16.23  from a licensed or legal, nonlicensed caregiver; 
 16.24     (3) is income eligible as determined by the office's 
 16.25  policies and rules, but is not a recipient of assistance from 
 16.26  the Minnesota family investment program; 
 16.27     (4) has not earned a baccalaureate degree and has been 
 16.28  enrolled full time less than ten eight semesters or the 
 16.29  equivalent; 
 16.30     (5) is pursuing a nonsectarian program or course of study 
 16.31  that applies to an undergraduate degree, diploma, or 
 16.32  certificate; 
 16.33     (6) is enrolled at least half time in an eligible 
 16.34  institution; and 
 16.35     (7) is in good academic standing and making satisfactory 
 16.36  academic progress. 
 17.1      Sec. 18.  Minnesota Statutes 2002, section 136A.171, is 
 17.2   amended to read: 
 17.3      136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.] 
 17.4      The higher education services office may issue revenue 
 17.5   bonds to obtain funds for loans made in accordance with the 
 17.6   provisions of this chapter.  The aggregate amount of revenue 
 17.7   bonds, issued directly by the office, outstanding at any one 
 17.8   time, not including refunded bonds or otherwise defeased or 
 17.9   discharged bonds, shall not exceed $550,000,000 $850,000,000.  
 17.10  Proceeds from the issuance of bonds may be held and invested by 
 17.11  the office pending disbursement in the form of loans.  All 
 17.12  interest and profits from the investments shall inure to the 
 17.13  benefit of the office and shall be available to the office for 
 17.14  the same purposes as the proceeds from the sale of revenue bonds 
 17.15  including, but not limited to, costs incurred in administering 
 17.16  loans under this chapter and loan reserve funds. 
 17.17     Sec. 19.  Minnesota Statutes 2002, section 136A.29, 
 17.18  subdivision 9, is amended to read: 
 17.19     Subd. 9.  The authority is authorized and empowered to 
 17.20  issue revenue bonds whose aggregate principal amount at any time 
 17.21  shall not exceed $650,000,000 $800,000,000 and to issue notes, 
 17.22  bond anticipation notes, and revenue refunding bonds of the 
 17.23  authority under the provisions of sections 136A.25 to 136A.42, 
 17.24  to provide funds for acquiring, constructing, reconstructing, 
 17.25  enlarging, remodeling, renovating, improving, furnishing, or 
 17.26  equipping one or more projects or parts thereof. 
 17.27     Sec. 20.  Minnesota Statutes 2002, section 136A.69, is 
 17.28  amended to read: 
 17.29     136A.69 [FEES.] 
 17.30     The office shall collect reasonable registration fees that 
 17.31  are sufficient to recover, but do not exceed, its costs of 
 17.32  administering the registration program.  The office shall charge 
 17.33  $1,100 for initial registration fees and $950 for annual renewal 
 17.34  fees. 
 17.35     Sec. 21.  Minnesota Statutes 2002, section 136F.12, is 
 17.36  amended to read: 
 18.1      136F.12 [FOND DU LAC CAMPUS.] 
 18.2      Subdivision 1.  [UNIQUE MISSIONS.] The Fond du Lac campus 
 18.3   has a unique mission among two-year colleges to serve the lower 
 18.4   division general education needs in Carlton and south St. Louis 
 18.5   counties, and the education needs of American Indians throughout 
 18.6   the state and especially in northern Minnesota.  The campus has 
 18.7   a further unique mission to provide programs in support of its 
 18.8   federal land grant status.  Accordingly, while the college is 
 18.9   governed by the board of trustees, its governance is 
 18.10  accomplished in conjunction with the board of directors of Fond 
 18.11  du Lac tribal college.  
 18.12     Subd. 2.  [SELECTED PROGRAMS.] Notwithstanding section 
 18.13  135A.052, subdivision 1, to better meet the education needs of 
 18.14  Minnesota's American Indian students, and in furtherance of the 
 18.15  unique missions provided in subdivision 1, Fond du Lac tribal 
 18.16  and community college may offer a baccalaureate program in 
 18.17  elementary education, as approved by the board of trustees of 
 18.18  the Minnesota state colleges and universities, and the board of 
 18.19  directors of Fond du Lac tribal and community college. 
 18.20     Subd. 3.  [BARGAINING UNIT ASSIGNMENT.] Notwithstanding 
 18.21  section 179A.10, subdivision 2, the state university 
 18.22  instructional unit shall include faculty who teach upper 
 18.23  division courses at the Fond du Lac tribal and community college.
 18.24     Sec. 22.  Minnesota Statutes 2002, section 136F.40, 
 18.25  subdivision 2, is amended to read: 
 18.26     Subd. 2.  [CONTRACTS.] (a) The board may enter into a 
 18.27  contract with the chancellor, a vice-chancellor, or a president, 
 18.28  containing terms and conditions of employment.  The terms of the 
 18.29  contract must be authorized under a plan approved under section 
 18.30  43A.18, subdivision 3a. 
 18.31     (b) Notwithstanding section 43A.17, subdivision 11, or 
 18.32  other law to the contrary, a contract under this section may 
 18.33  provide a liquidated salary amount or other compensation if a 
 18.34  contract is terminated by the board prior to its expiration.  
 18.35     (c) Notwithstanding section 356.24 or other law to the 
 18.36  contrary, a contract under this section may contain a deferred 
 19.1   compensation plan made in conformance with section 457(f) of the 
 19.2   Internal Revenue Code. 
 19.3      Sec. 23.  Minnesota Statutes 2002, section 136F.45, 
 19.4   subdivision 1, is amended to read: 
 19.5      Subdivision 1.  [PURCHASE.] (a) At the request of an 
 19.6   employee, the board may negotiate and purchase an individual 
 19.7   annuity contract custodial account under section 403(b)(7) of 
 19.8   the Internal Revenue Code, for an employee for retirement or 
 19.9   other purposes from a company licensed to do business in 
 19.10  Minnesota, and may allocate a portion of the compensation 
 19.11  otherwise payable to the employee as salary for the purpose of 
 19.12  paying the entire premium contribution due or to become due 
 19.13  under the contract account.  The allocation shall be made in a 
 19.14  manner that will qualify the annuity premiums custodial account 
 19.15  contributions, or a portion portions thereof, for the benefit 
 19.16  afforded under section 403(b)(7) of the current federal Internal 
 19.17  Revenue Code or any equivalent provision of subsequent federal 
 19.18  income tax law.  The employee shall own the contract account and 
 19.19  the employee's rights thereunder shall be nonforfeitable except 
 19.20  for failure to pay premiums contributions.  
 19.21     (b) At its discretion, and in the same manner provided in 
 19.22  paragraph (a), the board may negotiate and purchase individual 
 19.23  custodial accounts under section 403(b)(7) of the Internal 
 19.24  Revenue Code, for employees of the higher education services 
 19.25  office as defined in section 136A.03.  Participation under this 
 19.26  paragraph must be in accordance with any applicable federal law. 
 19.27     Sec. 24.  Minnesota Statutes 2002, section 136F.45, 
 19.28  subdivision 2, is amended to read: 
 19.29     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
 19.30  shall be deposited in an annuity account established by the 
 19.31  board.  Payment of annuity premiums custodial account 
 19.32  contributions shall be made when due or in accordance with the 
 19.33  salary agreement entered into between the employee and the 
 19.34  board.  The money in the annuity account is not subject to the 
 19.35  budget, allotment, and incumbrance system provided for in 
 19.36  chapter 16A. 
 20.1      Sec. 25.  Minnesota Statutes 2002, section 136F.581, 
 20.2   subdivision 1, is amended to read: 
 20.3      Subdivision 1.  [CONDITIONS AUTHORITY FOR PURCHASES AND 
 20.4   CONTRACTS.] The board and the colleges and universities are 
 20.5   subject to the provisions of section 471.345.  In addition to 
 20.6   the contracting authority under this chapter, the board of 
 20.7   trustees may utilize any contracting options available to the 
 20.8   commissioner of administration under chapters 16A, 16B, 16C, or 
 20.9   any other contract option available under state law. 
 20.10     Sec. 26.  Minnesota Statutes 2002, section 136F.581, 
 20.11  subdivision 2, is amended to read: 
 20.12     Subd. 2.  [POLICIES AND PROCEDURES.] The board shall 
 20.13  develop policies, and each college and university shall develop 
 20.14  procedures, for purchases and contracts that are consistent with 
 20.15  the authority granted in subdivision 1.  The policies and 
 20.16  procedures shall be developed through the system and campus 
 20.17  labor management committees and shall include provisions 
 20.18  requiring the system and campuses to determine that they cannot 
 20.19  use available staff before contracting with additional outside 
 20.20  consultants or services.  In addition, each college and 
 20.21  university, in consultation with the system office of the 
 20.22  chancellor, shall develop procedures for those purchases and 
 20.23  contracts that can be accomplished by a college and university 
 20.24  without board approval.  The board policies must allow each 
 20.25  college and university the local authority to enter into 
 20.26  contracts for construction projects of up to $250,000 and to 
 20.27  make other purchases of up to $50,000, without receiving board 
 20.28  approval.  The board may allow a college or university local 
 20.29  authority to make purchases over $50,000 without receiving board 
 20.30  approval. 
 20.31     Sec. 27.  Minnesota Statutes 2002, section 136F.59, 
 20.32  subdivision 3, is amended to read: 
 20.33     Subd. 3.  [OFFICE OF TECHNOLOGY.] The system office of the 
 20.34  chancellor and the campuses shall cooperate with the office of 
 20.35  technology in its responsibility to coordinate information and 
 20.36  communications technology development throughout the state.  The 
 21.1   system and campuses shall consult with the office of technology 
 21.2   throughout any efforts to plan or implement information and 
 21.3   communication systems to ensure that the systems are effective, 
 21.4   efficient, and, where appropriate, compatible with other state 
 21.5   systems. 
 21.6      Sec. 28.  Minnesota Statutes 2002, section 136F.60, 
 21.7   subdivision 3, is amended to read: 
 21.8      Subd. 3.  [EASEMENTS.] (a) The board may grant permanent or 
 21.9   temporary easements over, under, or across any land under its 
 21.10  jurisdiction for reasonable purposes determined by the board as 
 21.11  provided in paragraphs (b) and (c).  
 21.12     (b) The board may grant a revocable easement or permit 
 21.13  under this paragraph.  An easement or permit is revocable by 
 21.14  written notice given by the board if at any time its continuance 
 21.15  will conflict with a public use of the land over, under, or upon 
 21.16  which it is granted, or for any other reason.  The notice must 
 21.17  be in writing and is effective 90 days after the notice is sent 
 21.18  by certified mail to the last known address of the holder of 
 21.19  record of the easement.  If the address of the holder of the 
 21.20  easement or permit is not known, it expires 90 days after the 
 21.21  notice is recorded in the office of the county recorder of the 
 21.22  county in which the land is located.  Upon revocation of an 
 21.23  easement or permit, the board may allow a reasonable time to 
 21.24  vacate the premises affected. 
 21.25     (c) State land subject to an easement or permit granted by 
 21.26  the board remains subject to sale or lease, and the sale or 
 21.27  lease does not revoke the permit or easement granted. 
 21.28     Sec. 29.  [136F.65] [ACCEPTANCE OF FEDERAL MONEY.] 
 21.29     The board of trustees is hereby designated the state agency 
 21.30  empowered to accept any and all money provided for or made 
 21.31  available to this state by the United States of America or any 
 21.32  department or agency thereof for the construction and equipping 
 21.33  of any building for university or college purposes in accordance 
 21.34  with the provisions of federal law and any rules or regulations 
 21.35  promulgated thereunder and are further authorized to do any and 
 21.36  all things required of this state by such federal law and the 
 22.1   rules and regulations promulgated thereunder in order to obtain 
 22.2   such federal money.  
 22.3      Sec. 30.  Minnesota Statutes 2002, section 136G.01, is 
 22.4   amended to read: 
 22.5      136G.01 [PLAN ESTABLISHED.] 
 22.6      A college savings plan known as the Minnesota college 
 22.7   savings plan is established.  In establishing this plan, the 
 22.8   legislature seeks to encourage individuals to save for 
 22.9   post-secondary education by: 
 22.10     (1) providing a qualified state tuition plan under federal 
 22.11  tax law; 
 22.12     (2) providing matching grants for contributions to the 
 22.13  program by low- and middle-income families; and 
 22.14     (3) by encouraging individuals, foundations, and businesses 
 22.15  to provide additional grants to participating students. 
 22.16     Sec. 31.  Minnesota Statutes 2002, section 136G.03, is 
 22.17  amended by adding a subdivision to read: 
 22.18     Subd. 4a.  [APPLICATION.] "Application" means the form 
 22.19  executed by a prospective account owner to enter into a 
 22.20  participation agreement and open an account in the plan.  The 
 22.21  application incorporates by reference the participation 
 22.22  agreement. 
 22.23     Sec. 32.  Minnesota Statutes 2002, section 136G.03, is 
 22.24  amended by adding a subdivision to read: 
 22.25     Subd. 21a.  [MINOR TRUST ACCOUNT.] "Minor trust account" 
 22.26  means a Uniform Gift to Minors Act account, a Uniform Transfers 
 22.27  to Minors Act account, or a trust instrument naming a minor 
 22.28  person as beneficiary, created and operating under the laws of 
 22.29  Minnesota or another state. 
 22.30     Sec. 33.  Minnesota Statutes 2002, section 136G.03, 
 22.31  subdivision 31, is amended to read: 
 22.32     Subd. 31.  [ROLLOVER DISTRIBUTION.] "Rollover distribution" 
 22.33  means a transfer of funds made: 
 22.34     (1) from one account to another account within 60 days of a 
 22.35  distribution; 
 22.36     (2) from another qualified state tuition program to an 
 23.1   account within 60 days of the distribution; or 
 23.2      (3) to another qualified state tuition program from an 
 23.3   account within 60 days of a distribution. 
 23.4      Each When there is a change of beneficiary in a rollover 
 23.5   distribution, the transfer of funds must be made for the benefit 
 23.6   of a new beneficiary who is a member of the family of the prior 
 23.7   beneficiary.  A rollover distribution is permitted from one 
 23.8   qualified tuition plan to another once every 12 months without a 
 23.9   change of beneficiary.  
 23.10     Sec. 34.  Minnesota Statutes 2002, section 136G.05, 
 23.11  subdivision 4, is amended to read: 
 23.12     Subd. 4.  [PLAN TO COMPLY WITH FEDERAL LAW.] The director 
 23.13  shall ensure that the plan meets the requirements for a 
 23.14  qualified state tuition program under section 529(b)(1)(A)(ii) 
 23.15  of the Internal Revenue Code.  The director may request a 
 23.16  private letter ruling or rulings from the Internal Revenue 
 23.17  Service or take any other steps to ensure that the plan 
 23.18  qualifies under section 529 of the Internal Revenue Code or 
 23.19  other relevant provisions of federal law. 
 23.20     Sec. 35.  Minnesota Statutes 2002, section 136G.05, 
 23.21  subdivision 5, is amended to read: 
 23.22     Subd. 5.  [MINIMUM PENALTY NONQUALIFIED DISTRIBUTIONS AND 
 23.23  MATCHING GRANTS.] In establishing the terms of the program, the 
 23.24  office must provide that refunds of amounts in an account are 
 23.25  subject to a minimum penalty, as required by section 529(b)(3) 
 23.26  of the Internal Revenue Code.  If the refunds or payments are 
 23.27  not used for qualified higher education expenses of the 
 23.28  designated beneficiary, this penalty must equal, at least, the 
 23.29  proportionate amount of any matching grants deposited in the 
 23.30  account under section 136G.11 and the investment return on the 
 23.31  grants, plus an additional penalty that meets the requirement of 
 23.32  federal law.  There cannot be a nonqualified withdrawal of 
 23.33  matching grant funds and any refund of matching grants must be 
 23.34  returned to the plan. 
 23.35     Sec. 36.  Minnesota Statutes 2002, section 136G.05, 
 23.36  subdivision 10, is amended to read: 
 24.1      Subd. 10.  [DATA.] Account owner data, account data, and 
 24.2   data on beneficiaries of accounts are private data on 
 24.3   individuals or nonpublic data as defined in section 13.02, 
 24.4   except that the names and addresses of the beneficiaries of 
 24.5   accounts that receive matching grants are public. 
 24.6      Sec. 37.  Minnesota Statutes 2002, section 136G.09, 
 24.7   subdivision 1, is amended to read: 
 24.8      Subdivision 1.  [CONTRIBUTIONS TO AN ACCOUNT.] A person may 
 24.9   make contributions to an account on behalf of a beneficiary. 
 24.10  Contributions to an account made by persons other than the 
 24.11  account owner become the property of the account owner.  A 
 24.12  person does not acquire an interest in an account by making 
 24.13  contributions to an account.  Contributions to an account must 
 24.14  be made by check, money order, or other commercially acceptable 
 24.15  means as permitted by the United States Internal Revenue Service 
 24.16  and other applicable federal and state law and authorized 
 24.17  approved by the plan administrator in cooperation with the 
 24.18  office and the board. 
 24.19     Sec. 38.  Minnesota Statutes 2002, section 136G.09, 
 24.20  subdivision 2, is amended to read: 
 24.21     Subd. 2.  [AUTHORITY OF ACCOUNT OWNER.] Except as provided 
 24.22  for minor trust accounts in section 136G.14, an account owner is 
 24.23  the only person entitled to: 
 24.24     (1) select or change a beneficiary or a contingent account 
 24.25  owner; or 
 24.26     (2) request distributions or rollover distributions from an 
 24.27  account. 
 24.28     Sec. 39.  Minnesota Statutes 2002, section 136G.09, 
 24.29  subdivision 6, is amended to read: 
 24.30     Subd. 6.  [CHANGE OF BENEFICIARY.] Except as provided for 
 24.31  minor trust accounts in section 136G.14, an account owner may 
 24.32  change the beneficiary of an account to a member of the family 
 24.33  of the current beneficiary, at any time without penalty, if the 
 24.34  change will not cause the total account balance of all accounts 
 24.35  held for the new beneficiary to exceed the maximum account 
 24.36  balance limit as provided in subdivision 8.  A change of 
 25.1   beneficiary other than as permitted in this subdivision is 
 25.2   treated as a nonqualified distribution under section 136G.13, 
 25.3   subdivision 3. 
 25.4      Sec. 40.  Minnesota Statutes 2002, section 136G.09, 
 25.5   subdivision 7, is amended to read: 
 25.6      Subd. 7.  [CHANGE OF ACCOUNT OWNERSHIP.] Except as provided 
 25.7   for minor trust accounts in section 136G.14, an account owner 
 25.8   may transfer ownership of an account to another person eligible 
 25.9   to be an account owner.  All transfers of ownership are absolute 
 25.10  and irrevocable. 
 25.11     Sec. 41.  Minnesota Statutes 2002, section 136G.09, 
 25.12  subdivision 8, is amended to read: 
 25.13     Subd. 8.  [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a 
 25.14  contribution is made, the total account balance of all accounts 
 25.15  held for the same beneficiary, including matching grant 
 25.16  accounts, must not exceed the maximum account balance limit as 
 25.17  determined under this subdivision. 
 25.18     (b) The maximum account balance limit is reduced for 
 25.19  withdrawals from any account for the same beneficiary that are 
 25.20  qualified distributions, distributions due to the death or 
 25.21  disability of the beneficiary, or distributions due to the 
 25.22  beneficiary receiving a scholarship.  Subsequent contributions 
 25.23  must not be made to replenish an account if the contribution 
 25.24  results in the total account balance of all accounts held for 
 25.25  the beneficiary to exceed the reduced maximum account balance 
 25.26  limit.  Any subsequent contributions must be rejected.  A 
 25.27  subsequent contribution accepted in error must be returned to 
 25.28  the account owner plus any earnings on the contribution less any 
 25.29  applicable penalties. 
 25.30     (c) The maximum account balance limit is not reduced for a 
 25.31  nonqualified distribution or a rollover distribution.  When such 
 25.32  distributions are taken, subsequent contributions may be made to 
 25.33  replenish an account up to the maximum account balance limit. 
 25.34     (d) The office must establish a maximum account balance 
 25.35  limit.  The office must adjust the maximum account balance 
 25.36  limit, as necessary, or on January 1 of each year.  The maximum 
 26.1   account balance limit must not exceed the amount permitted for 
 26.2   the plan to qualify as a qualified state tuition program under 
 26.3   section 529 of the Internal Revenue Code.  For calendar years 
 26.4   2002 2004 and 2003 2005, the maximum account balance is 
 26.5   $235,000. 
 26.6      (e) If the total account balance of all accounts held for a 
 26.7   single beneficiary reaches the maximum account balance limit 
 26.8   prior to the end of that calendar year, the beneficiary may 
 26.9   receive an applicable matching grant for that calendar year. 
 26.10     Sec. 42.  Minnesota Statutes 2002, section 136G.09, 
 26.11  subdivision 9, is amended to read: 
 26.12     Subd. 9.  [EXCESS CONTRIBUTIONS AND BALANCES.] A 
 26.13  contribution to any account for a beneficiary must be rejected 
 26.14  if the contribution would cause the total account balance of all 
 26.15  accounts held for the same beneficiary, including the matching 
 26.16  grant account, to exceed the maximum account balance limit under 
 26.17  section 529 of the Internal Revenue Code as established by the 
 26.18  office.  If a contribution under this subdivision is accepted in 
 26.19  error, the contribution must be returned to the account owner 
 26.20  plus any earnings thereon, less applicable penalties.  A payment 
 26.21  of an excess contribution to the account owner may be a 
 26.22  nonqualified distribution subject to a penalty. 
 26.23     Sec. 43.  Minnesota Statutes 2002, section 136G.11, 
 26.24  subdivision 1, is amended to read: 
 26.25     Subdivision 1.  [MATCHING GRANT QUALIFICATION.] By March 
 26.26  1 June 30 of each year, a state matching grant must be added to 
 26.27  each account established under the program if the following 
 26.28  conditions are met: 
 26.29     (1) the contributor applies, in writing in a form 
 26.30  prescribed by the director, for a matching grant; 
 26.31     (2) a minimum contribution of $200 was made during the 
 26.32  preceding calendar year; and 
 26.33     (3) the family income of the beneficiary did not exceed 
 26.34  $80,000. 
 26.35     Sec. 44.  Minnesota Statutes 2002, section 136G.11, 
 26.36  subdivision 2, is amended to read: 
 27.1      Subd. 2.  [FAMILY INCOME.] (a) For purposes of this 
 27.2   section, "family income" means: 
 27.3      (1) if the beneficiary is under age 25, the combined 
 27.4   adjusted gross income of the beneficiary's parents or legal 
 27.5   guardians as reported on the federal tax return or returns for 
 27.6   the most recently available tax calendar year in which 
 27.7   contributions were made.  If the beneficiary's parents are 
 27.8   divorced, the income of the parent claiming the beneficiary as a 
 27.9   dependent on the federal individual income tax return and the 
 27.10  income of that parent's spouse, if any, is used to determine 
 27.11  family income; or 
 27.12     (2) if the beneficiary is age 25 or older, the combined 
 27.13  adjusted gross income of the beneficiary and spouse, if any. 
 27.14     (b) For a parent or legal guardian of beneficiaries under 
 27.15  age 25 and for beneficiaries age 25 or older who resided in 
 27.16  Minnesota and filed a federal individual income tax return two 
 27.17  years prior to the year in which the matching grant is awarded, 
 27.18  the matching grant must be based on family income from Internal 
 27.19  Revenue Service tax data on file with the Minnesota department 
 27.20  of revenue.  
 27.21     (c) Parents or legal guardians of beneficiaries under age 
 27.22  25 and beneficiaries age 25 or older who did not reside in 
 27.23  Minnesota two years prior to the year in which the matching 
 27.24  grant is awarded must provide a signed copy of their federal 
 27.25  individual income tax return to the office, regardless of who 
 27.26  the account owner is, in order to be considered for a matching 
 27.27  grant, the matching grant must be based on family income from 
 27.28  the calendar year in which contributions were made. 
 27.29     Sec. 45.  Minnesota Statutes 2002, section 136G.11, 
 27.30  subdivision 3, is amended to read: 
 27.31     Subd. 3.  [RESIDENCY REQUIREMENT.] (a) If the beneficiary 
 27.32  is under age 25, the beneficiary's parents or legal guardians 
 27.33  must be Minnesota residents to qualify for a matching grant.  If 
 27.34  the beneficiary is age 25 or older, the beneficiary must be a 
 27.35  Minnesota resident to qualify for a matching grant. 
 27.36     (b) To meet the residency requirements, the parent or legal 
 28.1   guardian of beneficiaries under age 25 must have filed a 
 28.2   Minnesota individual income tax return as a Minnesota resident, 
 28.3   claiming and claimed the beneficiary as a dependent, two years 
 28.4   prior to the year in which the matching grant is awarded on the 
 28.5   federal tax return of the parent or legal guardian for the 
 28.6   calendar year in which contributions were made.  For 
 28.7   beneficiaries age 25 or older, the beneficiary, and a spouse, if 
 28.8   any, must have filed a Minnesota and a federal individual income 
 28.9   tax return as a Minnesota resident two years prior to the year 
 28.10  in which the matching grant is awarded for the calendar year in 
 28.11  which contributions were made. 
 28.12     (c) A parent of beneficiaries under age 25 and 
 28.13  beneficiaries age 25 or older who did not reside in Minnesota 
 28.14  two years prior to the year in which the matching grant is 
 28.15  awarded must establish Minnesota residency through the issuance 
 28.16  of a Minnesota driver's license or identification card in the 
 28.17  calendar year in which contributions were made are not eligible 
 28.18  for a matching grant. 
 28.19     Sec. 46.  Minnesota Statutes 2002, section 136G.11, 
 28.20  subdivision 9, is amended to read: 
 28.21     Subd. 9.  [ANNUAL APPLICATION.] An account owner must 
 28.22  submit an application form for a matching grant on an annual 
 28.23  basis.  The application must be postmarked by December 31 May 1 
 28.24  of the year preceding the awarding of the in which the matching 
 28.25  grant would be awarded if the applicant qualifies for a matching 
 28.26  grant.  
 28.27     Sec. 47.  Minnesota Statutes 2002, section 136G.11, 
 28.28  subdivision 13, is amended to read: 
 28.29     Subd. 13.  [FORFEITURE OF MATCHING GRANTS.] (a) Matching 
 28.30  grants are forfeited if: 
 28.31     (1) the account owner transfers the total account balance 
 28.32  of an account to another account or to another qualified state 
 28.33  tuition program; 
 28.34     (2) the beneficiary receives a full tuition scholarship or 
 28.35  admission to a United States service academy; 
 28.36     (3) the beneficiary dies or becomes disabled; 
 29.1      (4) the account owner changes the beneficiary of the 
 29.2   account; or 
 29.3      (5) the account owner closes the account with a 
 29.4   nonqualified withdrawal. 
 29.5      (b) Matching grants must be proportionally forfeited if: 
 29.6      (1) the account owner transfers a portion of an account to 
 29.7   another account or to another qualified state tuition program; 
 29.8      (2) the beneficiary receives a scholarship covering a 
 29.9   portion of qualified higher education expenses; or 
 29.10     (3) the account owner makes a partial nonqualified 
 29.11  withdrawal. 
 29.12     (c) If the account owner makes a misrepresentation in a 
 29.13  participation agreement or an application for a matching grant 
 29.14  that results in a matching grant, the matching grant associated 
 29.15  with the misrepresentation is forfeited.  The office and the 
 29.16  board must instruct the plan administrator as to the amount to 
 29.17  be forfeited from the matching grant account.  The office and 
 29.18  the board must withdraw the matching grant or the proportion of 
 29.19  the matching grant that is related to the misrepresentation. 
 29.20     Sec. 48.  Minnesota Statutes 2002, section 136G.13, 
 29.21  subdivision 1, is amended to read: 
 29.22     Subdivision 1.  [QUALIFIED DISTRIBUTION METHODS.] (a) 
 29.23  Qualified distributions may be made: 
 29.24     (1) directly to participating eligible educational 
 29.25  institutions on behalf of the beneficiary; or 
 29.26     (2) in the form of a check payable to both the beneficiary 
 29.27  and the eligible educational institution; or. 
 29.28     (3) to an account owner with a receipt verifying the 
 29.29  payment of qualified higher education expenses. 
 29.30     (b) When administratively feasible, distributions may be 
 29.31  made when the account owner and beneficiary certify prior to the 
 29.32  distribution that the distribution will be expended for 
 29.33  qualified higher education expenses a reasonable time after the 
 29.34  distribution.  The plan administrator may retain a penalty on 
 29.35  the earnings portion of the nonqualified distribution until 
 29.36  payment of qualified higher education expenses are 
 30.1   substantiated.  A payment receipt showing payment for qualified 
 30.2   higher education expenses must be submitted to the program 
 30.3   administrator within 30 days of distribution. 
 30.4      (c) Qualified distributions must be withdrawn 
 30.5   proportionally from contributions and earnings in an account 
 30.6   owner's account on the date of distribution as provided in 
 30.7   section 529 of the Internal Revenue Code. 
 30.8      Sec. 49.  Minnesota Statutes 2002, section 136G.13, 
 30.9   subdivision 3, is amended to read: 
 30.10     Subd. 3.  [NONQUALIFIED DISTRIBUTION.] An account owner may 
 30.11  request a nonqualified distribution from an account at any 
 30.12  time.  Nonqualified distributions are based on the total account 
 30.13  balances in an account owner's account and must be withdrawn 
 30.14  proportionally from contributions and earnings as provided in 
 30.15  section 529 of the Internal Revenue Code.  The earnings portion 
 30.16  of a nonqualified distribution is subject to a penalty a federal 
 30.17  additional tax pursuant to section 529 of the Internal Revenue 
 30.18  Code.  For purposes of this subdivision, "earnings portion" 
 30.19  means the ratio of the earnings in the account to the total 
 30.20  account balance, immediately prior to the distribution, 
 30.21  multiplied by the distribution.  The penalty must be withheld 
 30.22  from the total amount of any distribution. 
 30.23     Sec. 50.  [136G.14] [MINOR TRUST ACCOUNTS.] 
 30.24     (a) This section applies to a plan account in which funds 
 30.25  of a minor trust account are invested. 
 30.26     (b) The account owner may not be changed to any person 
 30.27  other than a successor custodian or the beneficiary unless a 
 30.28  court order directing the change of ownership is provided to the 
 30.29  plan administrator.  The custodian must sign all forms and 
 30.30  requests submitted to the plan administrator in the custodian's 
 30.31  representative capacity.  The custodian must notify the plan 
 30.32  administrator in writing when the beneficiary becomes legally 
 30.33  entitled to be the account owner.  An account owner under this 
 30.34  section may not select a contingent account owner.  
 30.35     (c) The beneficiary of an account under this section may 
 30.36  not be changed.  If the beneficiary dies, assets in a plan 
 31.1   account become the property of the beneficiary's estate.  Funds 
 31.2   in an account must not be transferred or rolled over to another 
 31.3   account owner or to an account for another beneficiary.  A 
 31.4   nonqualified distribution from an account, or a distribution due 
 31.5   to the disability or scholarship award to the beneficiary, must 
 31.6   be used for the benefit of the beneficiary. 
 31.7      Sec. 51.  Minnesota Statutes 2002, section 137.0245, 
 31.8   subdivision 2, is amended to read: 
 31.9      Subd. 2.  [MEMBERSHIP.] The regent candidate advisory 
 31.10  council shall consist of 24 members.  Twelve members shall be 
 31.11  appointed by the subcommittee on committees of the committee on 
 31.12  rules and administration of the senate.  Twelve members shall be 
 31.13  appointed by the speaker of the house of representatives.  Each 
 31.14  appointing authority must appoint one member who is a student 
 31.15  enrolled in a degree program at the University of Minnesota at 
 31.16  the time of appointment.  No more than one-third of the members 
 31.17  appointed by each appointing authority may be current or former 
 31.18  legislators.  No more than two-thirds of the members appointed 
 31.19  by each appointing authority may belong to the same political 
 31.20  party; however, political activity or affiliation is not 
 31.21  required for the appointment of any member.  Geographical 
 31.22  representation must be taken into consideration when making 
 31.23  appointments.  Section 15.0575 shall govern the advisory 
 31.24  council, except that: 
 31.25     (1) the members shall be appointed to six-year terms with 
 31.26  one-third appointed each even-numbered year; and 
 31.27     (2) student members are appointed to two-year terms with 
 31.28  two students appointed each even-numbered year. 
 31.29     Sec. 52.  [137.026] [APPROPRIATIONS; ACADEMIC HEALTH 
 31.30  CENTER.] 
 31.31     Money deposited in the academic health center special 
 31.32  revenue fund under section 297F.10 is annually appropriated to 
 31.33  the board of regents for the academic health center at the 
 31.34  University of Minnesota. 
 31.35     Sec. 53.  Minnesota Statutes 2002, section 299A.45, 
 31.36  subdivision 2, is amended to read: 
 32.1      Subd. 2.  [AWARD AMOUNT.] (a) The amount of the award 
 32.2   is the lesser of: 
 32.3      (1) for public institutions, the actual tuition and fees 
 32.4   charged by the institution; or 
 32.5      (2) for private institutions the lesser of (i) the actual 
 32.6   tuition and fees charged by the institution; or (ii) the highest 
 32.7   tuition and fees charged by a public institution in Minnesota 
 32.8      (2) the tuition maximums established in law. 
 32.9      (b) An award under this subdivision must not affect a 
 32.10  recipient's eligibility for a state grant under section 136A.121.
 32.11     Sec. 54.  [LEARN AND EARN PROGRAM; POSTSECONDARY 
 32.12  OPPORTUNITIES ACCOUNT.] 
 32.13     The higher education services office shall maintain a 
 32.14  postsecondary opportunities account for students who earned 
 32.15  stipends and bonuses that were deposited in the account through 
 32.16  the learn and earn graduation achievement program under 
 32.17  Minnesota Statutes 2000, section 124D.32.  A participating 
 32.18  student may, upon graduation from high school, use the funds 
 32.19  accumulated for the student toward the costs of attending a 
 32.20  Minnesota postsecondary institution or a career-training 
 32.21  program, including the costs of tuition, books, and lab fees.  
 32.22  Funds accumulated for a student must be available to the student 
 32.23  from the time a student graduates from high school until ten 
 32.24  years after the date the student entered the learn and earn 
 32.25  graduation achievement program.  After ten years, the office 
 32.26  shall close the account and any remaining money in the account 
 32.27  must cancel to the general fund.  
 32.28     Sec. 55.  [OPTIONAL STUDENT FEES.] 
 32.29     The board of trustees of the Minnesota state colleges and 
 32.30  universities must provide students with the opportunity to 
 32.31  affirmatively choose to pay any optional student fee used to 
 32.32  fund student groups.  These optional fees must not be assessed 
 32.33  by requiring a student to opt out of the fee.  The board of 
 32.34  regents of the University of Minnesota are requested to provide 
 32.35  all students with opportunity to affirmatively choose to pay any 
 32.36  optional student fee used to fund student groups and to not 
 33.1   require students to opt out of these fees. 
 33.2      Sec. 56.  [SURVEY OF EDUCATION FACULTY.] 
 33.3      (a) The board of trustees of the Minnesota state colleges 
 33.4   and universities must evaluate the teaching experience of 
 33.5   faculty providing instruction to prepare teachers for licensure 
 33.6   in kindergarten through grade 12 education.  The evaluation must 
 33.7   include a survey of all tenured and adjunct faculty at a state 
 33.8   university who provide instruction in a college of education or 
 33.9   any other college or division that prepares students for teacher 
 33.10  licensure.  The survey must, at a minimum, address the following:
 33.11     (1) the extent to which faculty are licensed to teach at 
 33.12  the kindergarten through grade 12 level in Minnesota; 
 33.13     (2) the extent to which faculty members are licensed in the 
 33.14  subject area or grade level in which they are providing 
 33.15  instruction; 
 33.16     (3) for licensed faculty, the date of their most recent 
 33.17  teaching experience in a kindergarten through grade 12 school 
 33.18  and the date of their most recent teaching experience in a 
 33.19  kindergarten through grade 12 school in the subject or grade 
 33.20  level in which they are providing instruction at a Minnesota 
 33.21  state colleges and universities institution. 
 33.22     (b) The board of regents of the University of Minnesota and 
 33.23  the private colleges in Minnesota that participate in the state 
 33.24  grant program under Minnesota Statutes, section 136A.121, that 
 33.25  provide instruction leading to kindergarten through grade 12 
 33.26  teacher licensure are requested to evaluate the kindergarten 
 33.27  through grade 12 teaching experience of faculty in their 
 33.28  colleges of education or other colleges, divisions, or 
 33.29  departments that provide instruction leading to licensure by 
 33.30  surveying tenured and adjunct faculty.  The survey must include 
 33.31  the three issues in paragraph (a). 
 33.32     (c) By January 15, 2004, the board of trustees must, and 
 33.33  the board of regents and the private colleges are requested to, 
 33.34  report the results of this evaluation to the chairs of the 
 33.35  higher education and the education policy committees in the 
 33.36  senate and the house of representatives. 
 34.1      Sec. 57.  [REVISOR'S INSTRUCTION.] 
 34.2      The revisor of statutes shall substitute the term "office 
 34.3   of higher education" for "higher education services office" 
 34.4   wherever the term appears in Minnesota Statutes and Minnesota 
 34.5   Rules.  The revisor shall also make any grammatical changes 
 34.6   related to the changes in terms. 
 34.7      Sec. 58.  [REPEALER.] 
 34.8      Minnesota Statutes 2002, sections 15A.081, subdivision 7b; 
 34.9   17.985; 93.223, subdivision 2; 93.2235, subdivision 2; 124D.95; 
 34.10  136A.011; 136A.031, subdivisions 1, 3, and 4; 136A.07; 136A.124; 
 34.11  136F.13; 136F.56; 136F.582; 136F.59, subdivision 2; and 136G.03, 
 34.12  subdivision 25, are repealed. 
 34.13     Sec. 59.  [EFFECTIVE DATE.] 
 34.14     Sections 1, 4, 5, and 22 to 29 are effective the day 
 34.15  following final enactment.