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Minnesota Legislature

Office of the Revisor of Statutes

HF 1856

3rd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 3rd Engrossment

  1.1                          A bill for an act
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; modifying 
  1.8             appropriations for instructional services; permitting 
  1.9             an admission fee waiver; modifying participation in 
  1.10            post-secondary enrollment options; requiring and 
  1.11            requesting a semester system and a common calendar; 
  1.12            creating definitions and actions during financial 
  1.13            emergencies; establishing a nursing grant program; 
  1.14            regulating student association changes; requiring 
  1.15            administrative interaction with students; requiring 
  1.16            certain communication through an exclusive 
  1.17            representative; modifying use of education institution 
  1.18            data; extending the repeal of the farmer-lender 
  1.19            mediation act; extending time for POST board funding 
  1.20            change; assigning duties to the library and 
  1.21            information services task force; establishing 
  1.22            electronic credit tracking; setting goals for 
  1.23            compensation plans and labor agreements; requiring 
  1.24            review of the Akita program; requiring efficiency in 
  1.25            use of facilities; establishing a model instruction 
  1.26            program in translating and interpreting services; 
  1.27            requiring distribution of career planning and job 
  1.28            placement information; requiring sabbatical policies; 
  1.29            abolishing the higher education coordinating board and 
  1.30            transferring certain duties; creating the higher 
  1.31            education services office and the higher education 
  1.32            services council; prescribing changes in certain 
  1.33            financial assistance programs; consolidating and 
  1.34            restructuring certain higher education statutes to 
  1.35            reflect the merger of the community colleges, state 
  1.36            universities, and technical colleges; amending 
  1.37            Minnesota Statutes 1994, sections 3.9741, subdivision 
  1.38            2; 15.38, subdivision 3; 126.56; 126.663, subdivision 
  1.39            3; 135A.031, subdivision 2; 135A.08, subdivisions 1 
  1.40            and 2; 135A.10, subdivision 1; 135A.12, subdivision 1; 
  1.41            135A.15, subdivision 1; 135A.153, subdivision 1; 
  1.42            136A.01; 136A.03; 136A.043; 136A.05, subdivision 1; 
  1.43            136A.07; 136A.08; 136A.101, subdivisions 2, 3, 5, 8, 
  1.44            and 10; 136A.121, subdivisions 5, 6, 9, 16, and by 
  1.45            adding a subdivision; 136A.125, subdivisions 4 and 6; 
  1.46            136A.1359, subdivisions 1, 2, and 3; 136A.15, 
  2.1             subdivisions 3 and 4; 136A.16, subdivision 1; 
  2.2             136A.233, subdivision 2; 136A.26, subdivisions 1 and 
  2.3             2; 136A.42; 136A.62, subdivision 2; 136A.69; 136A.81, 
  2.4             subdivision 1; 136E.01, subdivision 1; 136E.02, 
  2.5             subdivisions 1, 3, and 4; 136E.021, subdivision 2; 
  2.6             136E.04, subdivision 1, and by adding subdivisions; 
  2.7             136E.05; 136E.31; 136E.525, subdivisions 1, 2, and 3; 
  2.8             136E.692, subdivisions 1 and 3; 141.25, subdivision 8; 
  2.9             144.1487, subdivision 1; 144.1488, subdivisions 1 and 
  2.10            4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 
  2.11            144.1491, subdivision 2; 179A.07, subdivision 4; 
  2.12            298.2214, subdivision 5; and 363.03, subdivision 5; 
  2.13            Laws 1986, chapter 398, article 1, section 18, as 
  2.14            amended; Laws 1991, chapter 356, article 9, section 9, 
  2.15            as amended; Laws 1993, chapter 326, article 12, 
  2.16            section 15, subdivisions 4 and 5; Laws 1993, First 
  2.17            Special Session chapter 2, articles 1, section 2, 
  2.18            subdivision 3, and section 9, subdivision 6; and 9, 
  2.19            section 1, subdivision 7; Laws 1994, chapter 532, 
  2.20            article 6, section 12; and Laws 1994, chapter 643, 
  2.21            section 69, by adding subdivisions; proposing coding 
  2.22            for new law in Minnesota Statutes, chapters 135A; 
  2.23            136A; and 136E; proposing coding for new law as 
  2.24            Minnesota Statutes, chapter 136F; repealing Minnesota 
  2.25            Statutes 1994, sections 15.38, subdivision 4; 
  2.26            135A.052, subdivisions 2 and 3; 135A.08, subdivision 
  2.27            3; 135A.09; 135A.11; 135A.12, subdivision 5; 136.01; 
  2.28            136.02; 136.03; 136.031; 136.036; 136.045; 136.065; 
  2.29            136.07; 136.09; 136.10; 136.11; 136.111; 136.12; 
  2.30            136.13; 136.14; 136.141; 136.142; 136.143; 136.144; 
  2.31            136.145; 136.146; 136.147; 136.17; 136.171; 136.172; 
  2.32            136.18; 136.19; 136.20; 136.21; 136.22; 136.232; 
  2.33            136.24; 136.25; 136.261; 136.27; 136.31; 136.311; 
  2.34            136.32; 136.33; 136.34; 136.35; 136.36; 136.37; 
  2.35            136.38; 136.40; 136.41; 136.42; 136.43; 136.44; 
  2.36            136.45; 136.46; 136.47; 136.48; 136.49; 136.50; 
  2.37            136.501; 136.502; 136.503; 136.504; 136.505; 136.506; 
  2.38            136.507; 136.55; 136.56; 136.57; 136.58; 136.60; 
  2.39            136.6011; 136.602; 136.603; 136.61; 136.62; 136.621; 
  2.40            136.622; 136.63; 136.65; 136.651; 136.653; 136.67; 
  2.41            136.70; 136.71; 136.72; 136.88; 136.90; 136A.02; 
  2.42            136A.04; 136A.041; 136A.125, subdivision 5; 136A.16, 
  2.43            subdivision 11; 136A.85; 136A.86; 136A.88; 136C.01; 
  2.44            136C.02; 136C.03; 136C.04; 136C.041; 136C.042; 
  2.45            136C.043; 136C.044; 136C.05; 136C.06; 136C.07; 
  2.46            136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 136C.31; 
  2.47            136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 136C.50; 
  2.48            136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 136C.64; 
  2.49            136C.65; 136C.66; 136C.67; 136C.68; 136C.69; 136C.70; 
  2.50            136C.71; 136C.75; 136D.77; 136D.81, subdivision 2; 
  2.51            136E.04, subdivisions 2, 3, 4, 5, 6, and 7; 136E.395; 
  2.52            136E.692, subdivision 4; 137.31, subdivision 6; 
  2.53            137.35, subdivision 4; 137.38; 144.1488, subdivision 
  2.54            2; and 148.236; and Laws 1993, chapter 326, article 
  2.55            12, section 15, subdivision 2. 
  2.56  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.57                             ARTICLE 1
  2.58                           APPROPRIATIONS
  2.59  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  2.60     The sums in the columns marked "APPROPRIATIONS" are 
  2.61  appropriated from the general fund, or other named fund, to the 
  2.62  agencies and for the purposes specified in this article.  The 
  2.63  listing of an amount under the figure "1996" or "1997" in this 
  3.1   article indicates that the amount is appropriated to be 
  3.2   available for the fiscal year ending June 30, 1996, or June 30, 
  3.3   1997, respectively.  "The first year" is fiscal year 1996.  "The 
  3.4   second year" is fiscal year 1997.  "The biennium" is fiscal 
  3.5   years 1996 and 1997. 
  3.6                           SUMMARY BY FUND
  3.7                             1996          1997           TOTAL
  3.8   General            $1,066,898,000 $1,077,189,000 $2,144,087,000
  3.9                    SUMMARY BY AGENCY - ALL FUNDS
  3.10                            1996          1997           TOTAL
  3.11  Higher Education Services Office
  3.12                        115,993,000    120,193,000    236,186,000
  3.13  Board of Trustees of the Minnesota
  3.14  State Colleges and Universities
  3.15                        466,220,000    470,927,000    937,147,000
  3.16  Board of Regents of the University of Minnesota
  3.17                        483,860,000    485,124,000    968,984,000
  3.18  Mayo Medical Foundation
  3.19                            825,000        945,000      1,770,000
  3.20                                             APPROPRIATIONS 
  3.21                                         Available for the Year 
  3.22                                             Ending June 30 
  3.23                                            1996         1997 
  3.24  Sec. 2.  HIGHER EDUCATION
  3.25  SERVICES OFFICE
  3.26  Subdivision 1.  Total
  3.27  Appropriation                        115,993,000    120,193,000
  3.28  The amounts that may be spent from this 
  3.29  appropriation for each purpose are 
  3.30  specified in the following subdivisions.
  3.31  Subd. 2.  State Grants
  3.32       95,745,000        99,945,000
  3.33  If the appropriation in this 
  3.34  subdivision for either year is 
  3.35  insufficient, the appropriation for the 
  3.36  other year is available for it.  
  3.37  The legislature intends that the higher 
  3.38  education services office make full 
  3.39  grant awards in each year of the 
  3.40  biennium.  
  3.41  For the biennium, the private 
  3.42  institution tuition maximum shall be 
  3.43  $7,665 for four-year institutions and 
  3.44  $5,900 for two-year institutions. 
  4.1   This appropriation contains money to 
  4.2   set the living and miscellaneous 
  4.3   expense allowance at $4,115 in the 
  4.4   first year and $4,200 in the second 
  4.5   year. 
  4.6   If money is not appropriated in 
  4.7   separate legislation for the LINC 
  4.8   nursing grant program, the higher 
  4.9   education services office may spend 
  4.10  $25,000 each year from this 
  4.11  appropriation for the LINC program. 
  4.12  In order to maximize the eligibility 
  4.13  period for students who transfer to 
  4.14  four-year institutions, public and 
  4.15  private two-year colleges shall review 
  4.16  their credit requirements for program 
  4.17  completion and examine the number of 
  4.18  credits of financial aid eligibility 
  4.19  that students use in the first two 
  4.20  years. 
  4.21  This appropriation includes $250,000 
  4.22  each year for grants to nursing 
  4.23  programs to recruit persons of color 
  4.24  and to provide grants to nursing 
  4.25  students who are persons of color.  Of 
  4.26  this amount, $100,000 each year is for 
  4.27  recruitment and retention of students 
  4.28  of color in nursing programs leading to 
  4.29  licensure as a registered nurse.  Other 
  4.30  than the grants to students, all grants 
  4.31  shall be matched with at least the same 
  4.32  amount from grantee sources or nonstate 
  4.33  money.  
  4.34  If the federal government enacts a 
  4.35  federal student loan risk sharing fee, 
  4.36  the higher education services office 
  4.37  shall recover the fee by billing the 
  4.38  institutions that have a cohort loan 
  4.39  default rate greater than the federal 
  4.40  law permits. 
  4.41  Subd. 3.  Interstate Tuition
  4.42  Reciprocity
  4.43       4,500,000      4,500,000
  4.44  If the appropriation in this 
  4.45  subdivision for either year is 
  4.46  insufficient, the appropriation for the 
  4.47  other year is available to meet 
  4.48  reciprocity contract obligations. 
  4.49  The higher education services office is 
  4.50  authorized to negotiate a reciprocity 
  4.51  agreement with the province of Ontario. 
  4.52  Subd. 4.  State Work Study
  4.53       8,219,000      8,219,000
  4.54  Subd. 5.  Minitex Library Program
  4.55       2,108,000      2,108,000
  4.56  Subd. 6.  Learning Network of Minnesota
  4.57       3,050,000      3,050,000
  5.1   Subd. 7.  Income Contingent Loans
  5.2   The higher education services office 
  5.3   shall administer an income contingent 
  5.4   loan repayment program to assist 
  5.5   graduates of Minnesota schools in 
  5.6   medicine, dentistry, pharmacy, 
  5.7   chiropractic medicine, public health, 
  5.8   and veterinary medicine, and Minnesota 
  5.9   residents graduating from optometry and 
  5.10  osteopathy programs.  Applicant data 
  5.11  collected by the higher education 
  5.12  services office for this program may be 
  5.13  disclosed to a consumer credit 
  5.14  reporting agency under the same 
  5.15  conditions as apply to the supplemental 
  5.16  loan program under Minnesota Statutes, 
  5.17  section 136A.162.  No new applicants 
  5.18  may be accepted after June 30, 1995. 
  5.19  Subd. 8.  Agency Administration
  5.20       2,371,000      2,371,000
  5.21  The amount that may be spent for the 
  5.22  parent and student information activity 
  5.23  shall not exceed $95,000 each year. 
  5.24  This appropriation includes money for 
  5.25  the Minnesota Minority Education 
  5.26  Partnership. 
  5.27  Money encumbered in fiscal year 1994 
  5.28  and fiscal year 1995 for youth works 
  5.29  postservice benefits shall not cancel 
  5.30  but is available until the participants 
  5.31  for whom the money was encumbered are 
  5.32  no longer eligible to draw benefits. 
  5.33  Subd. 9.  Balances Forward 
  5.34  An unencumbered balance in the first 
  5.35  year under a subdivision in this 
  5.36  section does not cancel but is 
  5.37  available for the second year. 
  5.38  Subd. 10.  Transfers 
  5.39  The higher education services office 
  5.40  may transfer unencumbered balances from 
  5.41  the appropriations in this section to 
  5.42  the state grant appropriation and the 
  5.43  interstate tuition reciprocity 
  5.44  appropriation. 
  5.45  Sec. 3.  BOARD OF TRUSTEES OF THE
  5.46  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  5.47  Subdivision 1.  Total
  5.48  Appropriation                       466,220,000    470,927,000
  5.49  The amounts that may be spent from this 
  5.50  appropriation for each purpose are 
  5.51  specified in the following subdivisions.
  5.52  If the state university board or the 
  5.53  board of trustees of the Minnesota 
  5.54  state colleges and universities is 
  5.55  reimbursed under Minnesota Statutes, 
  5.56  section 115B.43, for expenses relating 
  5.57  to the cleanup of the Kummer landfill, 
  6.1   the state university board or the board 
  6.2   of trustees shall cancel the amount 
  6.3   reimbursed to the state general fund. 
  6.4   Subd. 2.  Instructional Expenditures 
  6.5   The legislature estimates that 
  6.6   instructional expenditures will be 
  6.7   $214,536,000 each year for the 
  6.8   technical colleges. 
  6.9   The legislature estimates that 
  6.10  instructional expenditures will be 
  6.11  $145,565,000 each year for community 
  6.12  colleges. 
  6.13  The legislature estimates that 
  6.14  instructional expenditures will be 
  6.15  $253,612,000 each year for state 
  6.16  universities. 
  6.17  During the biennium neither the board 
  6.18  nor campuses shall plan or develop 
  6.19  doctoral level programs or degrees 
  6.20  until after they have received the 
  6.21  recommendation of the house and senate 
  6.22  committees on education, finance, and 
  6.23  ways and means. 
  6.24  This appropriation includes continued 
  6.25  support of at least $400,000 each year 
  6.26  for the Mid-Tec and Heartland 
  6.27  Telecommunications Networks. 
  6.28  This appropriation includes $40,000 
  6.29  each year for American Indian 
  6.30  outreach.  The legislature anticipates 
  6.31  this money will assist the Fond Du Lac 
  6.32  campus to recruit, advise, and retain 
  6.33  American Indian students. 
  6.34  It is the intent of the legislature to 
  6.35  hold the Minnesota state colleges and 
  6.36  universities accountable for making 
  6.37  budgetary and policy decisions that 
  6.38  provide students with access to high 
  6.39  quality education and training 
  6.40  programs.  Significant and demonstrable 
  6.41  progress toward the goals in this 
  6.42  subdivision and in section 6, 
  6.43  subdivision 2, are expected in this 
  6.44  biennium for consideration in funding 
  6.45  decisions in the next supplemental 
  6.46  budget and in the 1998-1999 biennial 
  6.47  budget. 
  6.48  The commissioner of finance shall place 
  6.49  $5,000,000 of the second year 
  6.50  appropriation in a performance 
  6.51  incentive account.  The commissioner 
  6.52  shall release $1,000,000 of this amount 
  6.53  to the board of trustees each time that 
  6.54  it demonstrates that it has achieved 
  6.55  one of the following performance 
  6.56  measures: 
  6.57  (1) increase the percentage of the 
  6.58  budget directed to instruction and 
  6.59  academic resources; 
  6.60  (2) increase the number of credits 
  7.1   issued through telecommunications 
  7.2   between fiscal year 1995 and fiscal 
  7.3   year 1996; 
  7.4   (3) increase the retention of new 
  7.5   entering freshman on state university 
  7.6   campuses who continue into the 
  7.7   sophomore year between fiscal year 1995 
  7.8   and fiscal year 1996 by at least two 
  7.9   percent.  The appropriation shall be 
  7.10  distributed to those campuses that 
  7.11  achieve the increase; 
  7.12  (4) increase the percentage of students 
  7.13  in two-year programs who graduate 
  7.14  within two years of admission, and the 
  7.15  percentage of students in four-year 
  7.16  programs who graduate within four years 
  7.17  of admission by at least two percent.  
  7.18  The appropriation shall be distributed 
  7.19  to campuses that achieve the increase; 
  7.20  and 
  7.21  (5) increase in placement rates for 
  7.22  occupational programs and transfer 
  7.23  rates for academic programs for 
  7.24  community and technical colleges. 
  7.25  The legislature expects the board of 
  7.26  trustees to demonstrate its commitment 
  7.27  to enhancing educational quality, 
  7.28  including high priority initiatives 
  7.29  that capitalize on opportunities 
  7.30  created by merger for:  joint programs 
  7.31  with the University of Minnesota for 
  7.32  faculty, staff, and administrative 
  7.33  development; enhanced opportunities for 
  7.34  students of color; and opportunities 
  7.35  for using technology to the advantage 
  7.36  of students and faculty. 
  7.37  The legislature further expects the 
  7.38  board of trustees to make difficult 
  7.39  choices in its allocations, based on 
  7.40  critical evaluations of its campuses 
  7.41  and programs, including actions to 
  7.42  address the 14 duplicate two-year 
  7.43  programs located within 35 miles of 
  7.44  each other, as identified by the 
  7.45  legislative auditor, for which no 
  7.46  action has yet been taken. 
  7.47  Each college and university shall 
  7.48  demonstrate to the board that, in the 
  7.49  face of severe budget constraints, it 
  7.50  has identified those programs and 
  7.51  functions that are central to the 
  7.52  mission of that campus and are most 
  7.53  critical to meeting student needs, and 
  7.54  that the campus has redirected 
  7.55  resources to those identified areas to 
  7.56  protect the core educational 
  7.57  enterprise.  Further, each campus shall 
  7.58  demonstrate that it has taken actions 
  7.59  to improve the productivity of faculty, 
  7.60  administrators, and staff. 
  7.61  The amounts for library access; Fond du 
  7.62  Lac American Indian student outreach; 
  7.63  incentives for co-located campuses; 
  7.64  increased instructional appropriations; 
  8.1   performance funding; instructional 
  8.2   equipment; conversion to semesters; 
  8.3   systemwide computer system development 
  8.4   for accounting, payroll, personnel, 
  8.5   procurement, and student records; staff 
  8.6   training for use of systems; staff 
  8.7   restructuring, separation payments, and 
  8.8   unemployment insurance; and development 
  8.9   of library collections and curriculum 
  8.10  at Metro State University are for these 
  8.11  purposes only and shall be 
  8.12  nonrecurring.  The amounts are 
  8.13  $8,741,000 in fiscal year 1996 and 
  8.14  $16,147,000 in fiscal year 1997. 
  8.15  Subd. 3.  Noninstructional Expenditures 
  8.16  The legislature estimates that 
  8.17  noninstructional expenditures will be 
  8.18  $17,231,000 the first year and 
  8.19  $16,937,000 the second year for the 
  8.20  technical colleges. 
  8.21  The legislature estimates that the 
  8.22  noninstructional expenditures will be 
  8.23  $10,349,000 each year for the community 
  8.24  colleges. 
  8.25  The legislature estimates that the 
  8.26  noninstructional expenditures will be 
  8.27  $14,573,000 each year for the state 
  8.28  universities. 
  8.29  $508,000 the first year and $214,000 
  8.30  the second year are for debt service 
  8.31  payments. 
  8.32  $150,000 each year is for southwest 
  8.33  Asia veterans tuition relief.  
  8.34  Because of its interest in improving 
  8.35  efficiency and streamlining government 
  8.36  operations, the legislature intends to 
  8.37  measure the effects of removing a 
  8.38  campus from mandates imposed by state 
  8.39  agencies, other than basic health and 
  8.40  life safety issues, ADA regulations, 
  8.41  audit requirements, and employment, 
  8.42  affirmative action, and collective 
  8.43  bargaining issues.  Notwithstanding any 
  8.44  law to the contrary, the board shall 
  8.45  designate as a pilot site a state 
  8.46  university which has a commitment to 
  8.47  establishing cooperative arrangements 
  8.48  with the private sector and involvement 
  8.49  in quality initiatives.  The board 
  8.50  shall consult with the commissioner of 
  8.51  administration in the process.  The 
  8.52  board and the university shall 
  8.53  recommend to the legislature any 
  8.54  statutory changes that this pilot 
  8.55  demonstrates will promote efficiency 
  8.56  and economy on some or all Minnesota 
  8.57  state college and university campuses, 
  8.58  while protecting public interests. 
  8.59  Subd. 4.  State Council on 
  8.60  Vocational Technical Education 
  8.61  The appropriation in subdivision 1 
  8.62  includes money for the state council on 
  9.1   vocational education. 
  9.2   Sec. 4.  BOARD OF REGENTS OF THE 
  9.3   UNIVERSITY OF MINNESOTA 
  9.4   Subdivision 1.  Total
  9.5   Appropriation                        483,860,000    485,124,000
  9.6   The amounts that may be spent from this 
  9.7   appropriation for each purpose are 
  9.8   specified in the following subdivisions.
  9.9   Subd. 2.  Operations and
  9.10  Maintenance                          395,432,000    396,421,000
  9.11  (a) Instructional Expenditures 
  9.12  The legislature estimates that 
  9.13  instructional expenditures will be 
  9.14  $421,089,000 the first year and 
  9.15  $421,696,000 the second year. 
  9.16  The university is requested to examine 
  9.17  the feasibility of establishing a 
  9.18  higher education research center to 
  9.19  provide applied research on public 
  9.20  policy trends, issues, and problems in 
  9.21  higher education, particularly as they 
  9.22  apply to Minnesota. 
  9.23  The commissioner of finance shall place 
  9.24  $5,000,000 of the second year 
  9.25  appropriation in a performance 
  9.26  incentive account.  The $5,000,000 is a 
  9.27  nonrecurring appropriation.  The 
  9.28  commissioner shall release $1,000,000 
  9.29  of this amount to the board of regents 
  9.30  each time the university presents 
  9.31  evidence that it has achieved one of 
  9.32  the following performance measures: 
  9.33  (1) increases at the Twin Cities 
  9.34  campus, excluding general college, in 
  9.35  the percent of 1996 new entering 
  9.36  freshmen ranking in the top 25 percent 
  9.37  of their high school class; 
  9.38  (2) increases in the rate of retention 
  9.39  of 1995 new entering freshmen; 
  9.40  (3) increases in the number of 1996 new 
  9.41  entering freshmen who are minority 
  9.42  students and increases in the percent 
  9.43  of faculty hired in 1995-1996 who are 
  9.44  women or minorities; 
  9.45  (4) increases in the five-year 
  9.46  graduation rate measured between August 
  9.47  1994 and August 1996; and 
  9.48  (5) increases in the number of credits 
  9.49  issued through telecommunications 
  9.50  between fiscal year 1995 and fiscal 
  9.51  year 1996. 
  9.52  If money is not appropriated in 
  9.53  separate legislation for the rural 
  9.54  physicians program, $300,000 of this 
  9.55  appropriation shall be added to the 
  9.56  Duluth two-year medical school to 
  9.57  enhance the efforts to train rural 
 10.1   physicians.  This is a nonrecurring 
 10.2   appropriation. 
 10.3   The amounts for U-2000; wheat and 
 10.4   barley scab research; performance 
 10.5   funding; 1994 U-2000 supplement; and 
 10.6   part of the Cambridge Bank reduction 
 10.7   restoration are for those purposes only 
 10.8   and shall be nonrecurring.  The amounts 
 10.9   are $26,268,000 in fiscal year 1996 and 
 10.10  $27,532,000 in fiscal year 1997. 
 10.11  (b) Noninstructional Expenditures 
 10.12  The legislature estimates that 
 10.13  noninstructional expenditures will be 
 10.14  $104,994,000 each year.  
 10.15  Subd. 3.  Special
 10.16  Appropriation                         88,428,000     88,703,000
 10.17  The amounts expended for each program 
 10.18  in the four categories of special 
 10.19  appropriations shall be separately 
 10.20  identified in the 1997 biennial budget 
 10.21  document. 
 10.22  (a) Agriculture and Extension Service 
 10.23      47,547,000     47,797,000
 10.24  This appropriation is for the 
 10.25  Agricultural Experiment Station and 
 10.26  Minnesota Extension Service. 
 10.27  $500,000 in each year is for additional 
 10.28  wheat and barley scab research. 
 10.29  Any salary increases granted by the 
 10.30  university to personnel paid from the 
 10.31  Minnesota Extension appropriation must 
 10.32  not result in a reduction of the county 
 10.33  portion of the salary payments. 
 10.34  During the biennium, the university 
 10.35  shall maintain an advisory council 
 10.36  system for each experiment station.  
 10.37  The advisory councils must be broadly 
 10.38  representative of range of size and 
 10.39  income distribution of farms and 
 10.40  agribusinesses and must not 
 10.41  disproportionately represent those from 
 10.42  the upper half of the size and income 
 10.43  distributions. 
 10.44  (b) Health Sciences 
 10.45      17,758,000     17,758,000
 10.46  This appropriation is for Indigent 
 10.47  Patients (County Papers), Rural 
 10.48  Physicians Associates Program, Medical 
 10.49  Research, Special Hospitals Service and 
 10.50  Educational Offset, the Veterinary 
 10.51  Diagnostic Laboratory, Institute for 
 10.52  Human Genetics, Health Sciences 
 10.53  Research, and the Biomedical 
 10.54  Engineering Center. 
 10.55  (c) Institute of Technology  
 11.1        3,067,000      3,067,000
 11.2   This appropriation is for the 
 11.3   Geological Survey, Underground Space 
 11.4   Center, Talented Youth Mathematics 
 11.5   Program, Microelectronics and 
 11.6   Information Science Center, and the 
 11.7   Center for Advanced Manufacturing, 
 11.8   Design, and Control. 
 11.9   (d) System Specials 
 11.10      20,056,000     20,081,000
 11.11  This appropriation is for Fellowships 
 11.12  for Minority and Disadvantaged 
 11.13  Students, General Research, 
 11.14  Intercollegiate Athletics, Student 
 11.15  Loans Matching Money, Industrial 
 11.16  Relations Education, Natural Resources 
 11.17  Research Institute, Sea Grant College 
 11.18  Program, Biological Process Technology 
 11.19  Institute, Supercomputer Institute, 
 11.20  Center for Urban and Regional Affairs, 
 11.21  Bell Museum of Natural History, the 
 11.22  Leadership Academy Program, and the 
 11.23  Humphrey Exhibit.  The appropriation 
 11.24  for the Leadership Academy Program is 
 11.25  nonrecurring. 
 11.26  By January 15, 1996, the board of 
 11.27  regents is requested to provide its 
 11.28  final report and its consultant's 
 11.29  report on the policies and practices it 
 11.30  has planned or implemented to comply 
 11.31  with title VII, title IX, and the Equal 
 11.32  Pay Act, as they apply across 
 11.33  university activities, including men's 
 11.34  and women's athletic coaching. 
 11.35  Subd. 4.  Specials Transfer 
 11.36  The appropriation in subdivision 3, 
 11.37  paragraph (b), for Medical Research, 
 11.38  Special Hospitals Service and 
 11.39  Educational Offset, and the Institute 
 11.40  for Human Genetics; and in paragraph 
 11.41  (c) for the Underground Space Center, 
 11.42  Microelectronics and Information 
 11.43  Science Center, and the Center for 
 11.44  Advanced Manufacturing, Design, and 
 11.45  Control; and in paragraph (d) for the 
 11.46  Fellowships for Minority and 
 11.47  Disadvantaged Students, Intercollegiate 
 11.48  Athletics, Sea Grant College Program, 
 11.49  Biological Process Technology 
 11.50  Institute, and the Supercomputer 
 11.51  Institute shall be merged with the 
 11.52  operation and maintenance funding in 
 11.53  subdivision 2, effective June 30, 1997. 
 11.54  Sec. 5.  MAYO MEDICAL FOUNDATION 
 11.55  Subdivision 1.  Total
 11.56  Appropriation                            825,000        945,000
 11.57  The amounts that may be spent from this 
 11.58  appropriation for each purpose are 
 11.59  specified in the following subdivisions.
 11.60  Subd. 2.  Medical School
 12.1          429,000        429,000
 12.2   The state of Minnesota shall pay a 
 12.3   capitation of $10,736 each year for 
 12.4   each student who is a resident of 
 12.5   Minnesota.  The appropriation may be 
 12.6   transferred between years of the 
 12.7   biennium to accommodate enrollment 
 12.8   fluctuations. 
 12.9   The legislature intends that during the 
 12.10  biennium the Mayo foundation use the 
 12.11  capitation money to increase the number 
 12.12  of doctors practicing in rural areas in 
 12.13  need of doctors.  
 12.14  Subd. 3.  Family Practice and
 12.15  Graduate Residency Program
 12.16         396,000        396,000
 12.17  The state of Minnesota provides a 
 12.18  capitation of $13,192 each year for 
 12.19  each student. 
 12.20  Subd. 4.  St. Cloud Hospital-Mayo 
 12.21  Family Practice Residency Program 
 12.22                        120,000
 12.23  This appropriation is to the Mayo 
 12.24  Foundation to support four resident 
 12.25  physicians in the St. Cloud 
 12.26  Hospital-Mayo Family Practice Residency 
 12.27  Program.  This appropriation is 
 12.28  contingent upon $950,000 in matching 
 12.29  money being made available from 
 12.30  nonstate sources.  The program shall 
 12.31  prepare doctors to practice primary 
 12.32  care medicine in the rural areas of the 
 12.33  state.  It is intended that this 
 12.34  program will improve health care in 
 12.35  rural communities, provide affordable 
 12.36  access to appropriate medical care, and 
 12.37  manage the treatment of patients in a 
 12.38  more cost-effective manner.  This 
 12.39  appropriation is nonrecurring. 
 12.40  Sec. 6.  POST-SECONDARY SYSTEMS 
 12.41  Subdivision 1.  Settlements 
 12.42  The board of regents of the University 
 12.43  of Minnesota and the board of trustees 
 12.44  of the Minnesota state colleges and 
 12.45  universities are requested to summarize 
 12.46  and report on all out-of-court 
 12.47  settlements involving the University of 
 12.48  Minnesota and the state colleges and 
 12.49  universities to the chairs of the house 
 12.50  and senate education committees.  The 
 12.51  report shall not specifically identify 
 12.52  settlements that are covered under 
 12.53  confidentiality agreements or orders. 
 12.54  Subd 2.  Accountability Measures  
 12.55  The board of regents of the University 
 12.56  of Minnesota is requested to, and the 
 12.57  board of trustees of the Minnesota 
 12.58  state colleges and universities shall, 
 13.1   establish: 
 13.2   (1) a set of accountability measures 
 13.3   that reflect each system's specific 
 13.4   mission; and 
 13.5   (2) goals to improve each system's 
 13.6   performance on the measures established.
 13.7   Each system shall establish both 
 13.8   system-level and institution-level 
 13.9   accountability measures and goals.  
 13.10  Each system will report to the 
 13.11  legislature in the biennial budget 
 13.12  document on the measures selected and 
 13.13  timeline for achieving the established 
 13.14  goals.  In addition, each system will 
 13.15  include baseline data and a description 
 13.16  of the processes implemented to 
 13.17  evaluate progress toward the goals 
 13.18  established.  Examples of goals include:
 13.19  (1) develop a post-tenure review 
 13.20  process; 
 13.21  (2) increase student satisfaction with 
 13.22  the education received; 
 13.23  (3) improve time to completion rates; 
 13.24  (4) reduce the number of credits 
 13.25  required to receive a degree; and 
 13.26  (5) assess employer satisfaction with 
 13.27  graduates from different programs. 
 13.28                             ARTICLE 2
 13.29                       ADDITIONAL PROVISIONS
 13.30     Section 1.  Minnesota Statutes 1994, section 135A.031, 
 13.31  subdivision 2, is amended to read: 
 13.32     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
 13.33  state share of the estimated expenditures for instruction shall 
 13.34  vary for some categories of students, as designated in this 
 13.35  subdivision. 
 13.36     (a) The state must provide at least 67 percent of the 
 13.37  estimated expenditures for: 
 13.38     (1) students who resided in the state for at least one 
 13.39  calendar year prior to applying for admission or dependent 
 13.40  students whose parent or legal guardian resides in Minnesota at 
 13.41  the time the student applies; 
 13.42     (2) Minnesota residents who can demonstrate that they were 
 13.43  temporarily absent from the state without establishing residency 
 13.44  elsewhere; 
 13.45     (3) residents of other states or provinces who are 
 14.1   attending a Minnesota institution under a tuition reciprocity 
 14.2   agreement; and 
 14.3      (4) students who have been in Minnesota as migrant 
 14.4   farmworkers, as defined in the Code of Federal Regulations, 
 14.5   title 20, section 633.104, over a period of at least two years 
 14.6   immediately before admission or readmission to a Minnesota 
 14.7   public post-secondary institution, or students who are 
 14.8   dependents of such migrant farmworkers. 
 14.9      (b) The state must provide 32 percent of the estimated 
 14.10  expenditures for definition of full year equivalent for purposes 
 14.11  of the formula calculations in this chapter is twice the normal 
 14.12  value for the following enrollments: 
 14.13     (1) students who are concurrently enrolled in a public 
 14.14  secondary school and for whom the institution is receiving any 
 14.15  compensation under the post-secondary enrollment options act; 
 14.16  and 
 14.17     (2) students enrolled under the student exchange program of 
 14.18  the Midwest Compact. 
 14.19     (c) The state may not provide any of the estimated 
 14.20  expenditures for undergraduate students (1) who do not meet the 
 14.21  residency criteria under paragraph (a), or (2) who have 
 14.22  completed, without receiving a baccalaureate degree, 48 or more 
 14.23  quarter credits or the equivalent, applicable toward the degree, 
 14.24  beyond the number required for a baccalaureate in their major. 
 14.25  Credits for courses in which a student received a grade of "F" 
 14.26  or "W" shall be counted toward this maximum, as if the credits 
 14.27  had been earned. 
 14.28     Sec. 2.  [135A.042] [FEE WAIVER.] 
 14.29     The president of a state university, community college, or 
 14.30  technical college may waive the fee assessed to a student 
 14.31  applying for admission, if the president determines that the fee 
 14.32  would impose an economic hardship on the student or the 
 14.33  student's family. 
 14.34     Sec. 3.  [135A.101] [POST-SECONDARY ENROLLMENT OPTIONS.] 
 14.35     Subdivision 1.  [REQUIREMENTS FOR PARTICIPATION.] To 
 14.36  participate in the post-secondary enrollment options program, a 
 15.1   college or university must abide by the provisions in this 
 15.2   section.  The institution may provide information about its 
 15.3   programs to a secondary school or to a pupil or parent, but may 
 15.4   not recruit or solicit participation on financial grounds. 
 15.5      Subd. 2.  [PROHIBITION.] An institution shall not enroll 
 15.6   secondary pupils, for post-secondary enrollment options 
 15.7   purposes, in developmental courses or other courses that are not 
 15.8   college level.  For the purposes of this section, a 
 15.9   "developmental course" means a post-secondary course taken to 
 15.10  prepare a student for college-level work and for which the 
 15.11  post-secondary institution does not grant credit or which cannot 
 15.12  be used to meet degree, diploma, or certificate requirements. 
 15.13     Sec. 4.  [135A.181] [ACADEMIC CALENDAR.] 
 15.14     Subdivision 1.  [TRANSITION TO SEMESTER SYSTEM.] The board 
 15.15  of trustees of the Minnesota state colleges and universities 
 15.16  shall convert, and the board of regents of the University of 
 15.17  Minnesota is requested to convert, to the semester system by the 
 15.18  1998-1999 academic year.  The public post-secondary institutions 
 15.19  shall review and revise the content and structure of their 
 15.20  academic programs, degrees, and courses, and prepare new course 
 15.21  materials as necessary.  Each public post-secondary board shall 
 15.22  submit information on the progress to a semester system in the 
 15.23  1997 biennial budget document. 
 15.24     Subd. 2.  [COMMON CALENDAR.] The semester system required 
 15.25  in subdivision 1 shall be offered on a common calendar 
 15.26  throughout all campuses under the jurisdiction of the board of 
 15.27  trustees of the Minnesota state colleges and universities.  This 
 15.28  calendar shall include a common start and end date for each 
 15.29  semester as well as common summer school schedules.  The board 
 15.30  of trustees may exempt a campus from this calendar if they 
 15.31  determine that because of extenuating circumstances an 
 15.32  alternative calendar would better serve students' needs. 
 15.33     Subd. 3.  [REPEALER.] This section is repealed June 30, 
 15.34  1999. 
 15.35     Sec. 5.  [135A.19] [FINANCIAL EMERGENCY.] 
 15.36     The board of trustees of the Minnesota state colleges and 
 16.1   universities and the board of regents of the University of 
 16.2   Minnesota may immediately layoff employees, without notice, if 
 16.3   the respective board has declared a financial emergency.  All 
 16.4   other contractual provisions relating to layoffs continue to 
 16.5   apply.  A financial emergency may be declared if, at any time:  
 16.6   (1) the projected revenue for the system from tuition and the 
 16.7   general fund for the current or next fiscal year is less than 93 
 16.8   percent of the anticipated expenditures in the board approved 
 16.9   budget, and (2) if tuition would need to be increased more than 
 16.10  three times the annual inflation rate to solve the shortfall. 
 16.11     For employees of the Minnesota state colleges and 
 16.12  universities covered under a collective bargaining agreement, 
 16.13  this section applies to all collective bargaining agreements 
 16.14  effective after July 1, 1995, and shall be effective for each 
 16.15  collective bargaining agreement covering those employees the day 
 16.16  after it has been ratified by the legislative commission on 
 16.17  employee relations.  For represented employees of the University 
 16.18  of Minnesota, this section applies the day following signing of 
 16.19  the next agreement.  For employees not covered by a collective 
 16.20  bargaining agreement, this section is effective July 1, 1995.  
 16.21  The board of trustees of the Minnesota state colleges and 
 16.22  universities and the board of regents of the University of 
 16.23  Minnesota shall balance layoffs of faculty, other employees, and 
 16.24  administrators.  The boards should strive to provide 
 16.25  uninterrupted service and instruction to students. 
 16.26     Sec. 6.  [136A.136] [NURSING GRANT PROGRAM.] 
 16.27     Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
 16.28  established under the supervision of the higher education 
 16.29  services office and the administration of the metropolitan 
 16.30  healthcare foundation's project LINC (Ladders in Nursing 
 16.31  Careers) to provide grants to Minnesota health care facility 
 16.32  employees seeking to complete a baccalaureate or master's degree 
 16.33  in nursing. 
 16.34     Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
 16.35  FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
 16.36  foundation's project LINC shall administer the grant program and 
 17.1   award grants to eligible health care facility employees.  To be 
 17.2   eligible to receive a grant, a person must be: 
 17.3      (1) an employee of a health care facility located in 
 17.4   Minnesota, whom the facility has recommended to the metropolitan 
 17.5   healthcare foundation's project LINC for consideration; 
 17.6      (2) working part time, up to 32 hours per pay period, for 
 17.7   the health care facility, while maintaining full salary and 
 17.8   benefits; 
 17.9      (3) enrolled full time in a Minnesota school or college of 
 17.10  nursing to complete a baccalaureate or master's degree in 
 17.11  nursing; and 
 17.12     (4) a resident of the state of Minnesota. 
 17.13     The grant must be awarded for one academic year but is 
 17.14  renewable for a maximum of six semesters or nine quarters of 
 17.15  full-time study, or their equivalent.  The grant must be used 
 17.16  for tuition, fees, and books.  Priority in awarding grants shall 
 17.17  be given to persons with the greatest financial need.  The 
 17.18  health care facility may require its employee to commit to a 
 17.19  reasonable postprogram completion of employment at the health 
 17.20  care facility as a condition for the financial support the 
 17.21  facility provides. 
 17.22     Subd. 3.  [RESPONSIBILITY OF HIGHER EDUCATION SERVICES 
 17.23  OFFICE.] The higher education services office shall distribute 
 17.24  money each year, contingent upon an appropriation, to the 
 17.25  metropolitan healthcare foundation's project LINC to be used to 
 17.26  award grants under this section, provided that the higher 
 17.27  education services office shall not distribute the money unless 
 17.28  the metropolitan healthcare foundation's project LINC matches 
 17.29  the money with an equal amount from nonstate sources.  The 
 17.30  metropolitan healthcare foundation's project LINC shall expend 
 17.31  nonstate money prior to expending state money and shall return 
 17.32  to the higher education services office all state money not used 
 17.33  each year for nursing program grants to be redistributed under 
 17.34  this section.  The metropolitan healthcare foundation's project 
 17.35  LINC shall report to the higher education services office on its 
 17.36  program activity as requested by the office. 
 18.1      Sec. 7.  Minnesota Statutes 1994, section 136E.525, 
 18.2   subdivision 3, is amended to read: 
 18.3      Subd. 3.  [CONSOLIDATION.] No Changes may be made to 
 18.4   student associations located on community college, state 
 18.5   university, technical college, or consolidated colocated 
 18.6   campuses without with the approval of the students of each 
 18.7   affected campus association in consultation with its state 
 18.8   student association. 
 18.9      Sec. 8.  [136E.60] [ADMINISTRATIVE INTERACTION WITH 
 18.10  STUDENTS.] 
 18.11     Subdivision 1.  [SYSTEM AND CAMPUS ADMINISTRATORS.] As part 
 18.12  of their annual goal setting activity, all unrepresented system 
 18.13  and campus academic administrators employed in their positions 
 18.14  before July 1, 1995, shall have the expectation of substantially 
 18.15  increasing their interaction with students through activities 
 18.16  such as teaching a regularly scheduled course or serving as an 
 18.17  academic advisor.  Contracts for persons initially employed in 
 18.18  unclassified administrative positions on or after July 1, 1995, 
 18.19  shall include requirements for activities involving student 
 18.20  contact.  
 18.21     Subd. 2.  [EVALUATION.] Each state university, community 
 18.22  college, and technical college campus shall provide an 
 18.23  evaluation of this activity to the board, and the board shall 
 18.24  include a summary of campus and system activities in its 
 18.25  1998-1999 biennial budget request.  
 18.26     Sec. 9.  Minnesota Statutes 1994, section 179A.07, 
 18.27  subdivision 4, is amended to read: 
 18.28     Subd. 4.  [OTHER COMMUNICATION.] If an exclusive 
 18.29  representative has been certified for an appropriate unit, the 
 18.30  employer shall not meet and negotiate or meet and confer with 
 18.31  any employee or group of employees who are in that unit except 
 18.32  through the exclusive representative.  This subdivision does not 
 18.33  prevent communication to the employer, other than through the 
 18.34  exclusive representative, of advice or recommendations by 
 18.35  professional employees, if this communication is a part of the 
 18.36  employee's work assignment.  This subdivision does not prevent 
 19.1   communication between public post-secondary employers and 
 19.2   post-secondary professional employees, other than through the 
 19.3   exclusive representative, regarding policies and matters that 
 19.4   are not terms and conditions of employment. 
 19.5      Sec. 10.  Minnesota Statutes 1994, section 363.03, 
 19.6   subdivision 5, is amended to read: 
 19.7      Subd. 5.  [EDUCATIONAL INSTITUTION.] It is an unfair 
 19.8   discriminatory practice: 
 19.9      (1) To discriminate in any manner in the full utilization 
 19.10  of or benefit from any educational institution, or the services 
 19.11  rendered thereby to any person because of race, color, creed, 
 19.12  religion, national origin, sex, age, marital status, status with 
 19.13  regard to public assistance, sexual orientation, or disability, 
 19.14  or to fail to ensure physical and program access for disabled 
 19.15  persons.  For purposes of this paragraph, program access 
 19.16  includes but is not limited to providing taped texts, 
 19.17  interpreters or other methods of making orally delivered 
 19.18  materials available, readers in libraries, adapted classroom 
 19.19  equipment, and similar auxiliary aids or services.  Program 
 19.20  access does not include providing attendants, individually 
 19.21  prescribed devices, readers for personal use or study, or other 
 19.22  devices or services of a personal nature. 
 19.23     (2) To exclude, expel, or otherwise discriminate against a 
 19.24  person seeking admission as a student, or a person enrolled as a 
 19.25  student because of race, color, creed, religion, national 
 19.26  origin, sex, age, marital status, status with regard to public 
 19.27  assistance, sexual orientation, or disability. 
 19.28     (3) To make or use a written or oral inquiry, or form of 
 19.29  application for admission that elicits or attempts to elicit 
 19.30  information, or to make or keep a record, concerning the race, 
 19.31  color, creed, religion, national origin, sex, age, marital 
 19.32  status, sexual orientation, or disability of a person seeking 
 19.33  admission, except as permitted by rules of the department. 
 19.34     (4) To make or use a written or oral inquiry or form of 
 19.35  application that elicits or attempts to elicit information, or 
 19.36  to keep a record concerning the race, color, national origin, 
 20.1   sex, age, or marital status of a person seeking admission, 
 20.2   unless the information is collected for purposes of evaluating 
 20.3   the effectiveness of recruitment, admissions, and other 
 20.4   educational policies, and is maintained separately from the 
 20.5   application. 
 20.6      Sec. 11.  Laws 1986, chapter 398, article 1, section 18, as 
 20.7   amended by Laws 1987, chapter 292, section 37; Laws 1989, 
 20.8   chapter 350, article 16, section 8; Laws 1990, chapter 525, 
 20.9   section 1; Laws 1991, chapter 208, section 2; and Laws 1993, 
 20.10  First Special Session chapter 2, article 6, section 2, is 
 20.11  amended to read: 
 20.12     Sec. 18.  [REPEALER.] 
 20.13     Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
 20.14  subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
 20.15  and 583.305, are repealed on July 1, 1995 1997. 
 20.16     Sec. 12.  Laws 1993, First Special Session chapter 2, 
 20.17  article 1, section 9, subdivision 6, is amended to read: 
 20.18  Subd. 6.  POST Board 
 20.19  Beginning in fiscal year 1996 1998, 
 20.20  money for law enforcement education 
 20.21  that is currently provided through the 
 20.22  POST board shall be provided through 
 20.23  general fund appropriations to be 
 20.24  calculated at the same initial base as 
 20.25  the previous POST funding, except that 
 20.26  the base adjustment for the community 
 20.27  colleges shall be $290,000.  The 
 20.28  legislature intends that penalty 
 20.29  surcharge dollars under Minnesota 
 20.30  Statutes, section 626.861, subdivision 
 20.31  1, shall continue to be appropriated to 
 20.32  the POST account for other lawful 
 20.33  purposes. 
 20.34     Sec. 13.  Laws 1994, chapter 643, section 69, is amended by 
 20.35  adding a subdivision to read: 
 20.36     Subd. 1a.  [FINANCING SOURCE REVIEW.] The task force shall 
 20.37  identify current library financing sources and make 
 20.38  recommendations on how to use the money more efficiently.  The 
 20.39  task force shall also identify additional financing sources.  By 
 20.40  February 1, 1996, the task force shall provide recommendations 
 20.41  to the legislature on financing structures that are designed to 
 20.42  promote cooperation and collaboration among all libraries. 
 20.43     Sec. 14.  Laws 1994, chapter 643, section 69, is amended by 
 21.1   adding a subdivision to read: 
 21.2      Subd. 1b.  [ELECTRONIC LIBRARY COORDINATION PLANNING.] The 
 21.3   task force shall build upon the leadership initiatives provided 
 21.4   by MINITEX and the post-secondary systems, relating to the 
 21.5   development of electronic library and information services, and 
 21.6   develop a vision of, and plans for, the coordinated use of 
 21.7   electronic storage and transmission in providing library and 
 21.8   information services.  The plans shall: 
 21.9      (1) explore the feasibility of consolidating the PALS and 
 21.10  LUMINA systems; 
 21.11     (2) explore and make recommendations about joint 
 21.12  acquisition of electronic access to information; 
 21.13     (3) plan for the coordinated use of electronic storage and 
 21.14  transmission in providing library and information services to 
 21.15  Minnesota post-secondary systems, public libraries, and 
 21.16  elementary and secondary school libraries, including appropriate 
 21.17  connections to the Internet and eventually to the national 
 21.18  information infrastructure; 
 21.19     (4) provide for, and make recommendations about, 
 21.20  appropriate governance and administrative structures, if needed; 
 21.21     (5) provide for approaches necessary to meet the needs of 
 21.22  distance learners; and 
 21.23     (6) identify, study, and make recommendations on any other 
 21.24  matters that the task force deems necessary for the coordination 
 21.25  and expansion of technologies in the provision of library and 
 21.26  information services. 
 21.27     The task force shall coordinate its work with the 
 21.28  telecommunications council, the government information access 
 21.29  council, the MINITEX advisory committee, and the advisory 
 21.30  council to the office of library development and services in the 
 21.31  department of education. 
 21.32     Sec. 15.  [CREDIT TRACKING.] 
 21.33     The board of regents of the University of Minnesota and the 
 21.34  board of trustees of the Minnesota state colleges and 
 21.35  universities are requested to develop a centralized electronic 
 21.36  tracking system of credits earned by students. 
 22.1      Sec. 16.  [COMPENSATION PLANS AND LABOR AGREEMENTS.] 
 22.2      In negotiating labor agreements that are collectively 
 22.3   bargained and compensation plans for all public higher education 
 22.4   system employees, the legislature expects the board of trustees 
 22.5   of the Minnesota state colleges and universities, the board of 
 22.6   regents of the University of Minnesota, the commissioner of 
 22.7   employee relations, and the legislative commission on employee 
 22.8   relations to achieve these goals: 
 22.9      (1) define the expected work activities and other 
 22.10  professional responsibilities of all employees in order to 
 22.11  increase course availability to students, to enhance 
 22.12  instructional quality, to ensure student access to faculty, and 
 22.13  to ensure that institution and system missions are served; 
 22.14     (2) reassess existing layoff procedures, tuition waivers, 
 22.15  layoff notices, employee transfers between campuses, employee 
 22.16  evaluations, and sabbaticals to ensure that institutional and 
 22.17  system missions are served; 
 22.18     (3) define reasonable work week and work year for full-time 
 22.19  employees to ensure that institutional and system missions are 
 22.20  served; and 
 22.21     (4) articulate a common understanding regarding when system 
 22.22  administrators may interact with employees outside of meet and 
 22.23  confer provisions in collective bargaining agreements. 
 22.24     Sec. 17.  [AKITA.] 
 22.25     Subdivision 1.  [INTENT.] The legislature intends to 
 22.26  provide opportunities for international programs that enhance 
 22.27  the global perspective and understanding of post-secondary 
 22.28  students.  However, with increasing fiscal constraints, the 
 22.29  legislature intends that these programs operate in an efficient 
 22.30  and effective manner.  
 22.31     Subd. 2.  [PLAN.] The state university board and the board 
 22.32  of trustees of the state colleges and universities shall begin 
 22.33  immediately to prepare and implement a plan to make the Akita 
 22.34  program more efficient.  The plan shall provide for the 
 22.35  expansion of enrollment in the Akita program and, by the 
 22.36  1997-1998 academic year, for the reduction of the per full year 
 23.1   enrollment expenditure level associated with the program.  The 
 23.2   boards shall work in cooperation with the state university 
 23.3   campuses and other Minnesota colleges and universities to 
 23.4   determine the reasons for the low enrollment levels in the Akita 
 23.5   program and to find efficient ways to address these 
 23.6   enrollments.  The boards shall also examine the uses of state 
 23.7   money in support of the program, determine more efficient ways 
 23.8   to use state resources, and seek more nonstate funding.  As part 
 23.9   of the plan, the boards shall specify the interim and final 
 23.10  measures that will be used to determine the effectiveness of the 
 23.11  plan, including appropriate programmatic cost comparisons and 
 23.12  specific targets for reduction of state expenditures. 
 23.13     Subd. 3.  [RECOMMENDATIONS.] By September 15, 1995, the 
 23.14  board of trustees shall forward its recommendations and 
 23.15  performance measures to the chairs of the higher education 
 23.16  divisions of the senate and house education committees.  As part 
 23.17  of its 1998-1999 biennial budget request, the board of trustees 
 23.18  shall include documentation on the effectiveness of its plan 
 23.19  including the Akita program's performance on each of the 
 23.20  measures in the plan. 
 23.21     Sec. 18.  [FACILITY USE.] 
 23.22     The post-secondary governing boards and their campuses 
 23.23  shall determine ways in which campus facilities can be used more 
 23.24  efficiently in order to (1) reduce the need for state physical 
 23.25  plant investments, and (2) to improve students' opportunities 
 23.26  for timely completion.  The boards shall consider schedule 
 23.27  changes such as expanded summer terms, increased weekend and 
 23.28  evening courses, short courses, and other scheduling 
 23.29  alternatives.  As part of their 1998-1999 biennial budget 
 23.30  requests, the boards shall demonstrate the changes that their 
 23.31  campuses have made or plan to make, and the performance measures 
 23.32  that will be used to determine the effectiveness of these 
 23.33  changes. 
 23.34     Sec. 19.  [INTERPRETING AND TRANSLATING PROGRAM.] 
 23.35     Subdivision 1.  [CHARGE.] The board of trustees of the 
 23.36  state colleges and universities shall develop a model 
 24.1   instruction program in spoken language interpreting and 
 24.2   translating services, as provided in this section.  In 
 24.3   developing the program, the board shall consult with the 
 24.4   University of Minnesota; non-English speaking communities; the 
 24.5   prosecution, defense, and judiciary systems; the interpreting 
 24.6   and translating communities; battered women's programs; and 
 24.7   government and nonprofit agencies providing human, social, and 
 24.8   health services. 
 24.9      Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 24.10  the following definitions apply. 
 24.11     (a) "Interpreter" means any person who is readily able to 
 24.12  comprehend a message uttered in one language and reexpress that 
 24.13  message in a spoken form in a second language without modifying 
 24.14  the meaning in any significant way. 
 24.15     (b) "Translator" means any person who is readily able to 
 24.16  comprehend a message written in one language and reexpress the 
 24.17  message in a written form in a second language without modifying 
 24.18  the meaning in any significant way. 
 24.19     Subd. 3.  [BOARD RESPONSIBILITIES.] (a) The board shall 
 24.20  determine the need for, and recommend programs to meet 
 24.21  educational training needs in, spoken language interpreting and 
 24.22  translating services at the certificate level, associate degree 
 24.23  level, or both.  Courses shall be designed to articulate with 
 24.24  advanced education and training programs in the field.  The 
 24.25  curriculum shall, at a minimum, include instruction in: 
 24.26     (1) spoken language proficiency to meet potential client 
 24.27  needs; 
 24.28     (2) technical terminology needed for specialization; 
 24.29     (3) ethical standards involved in interpreting and 
 24.30  translating; 
 24.31     (4) background in the culture of the language relevant to 
 24.32  the interpretation and translation; 
 24.33     (5) internship needs and other practical opportunities to 
 24.34  serve clients; and 
 24.35     (6) fundamental skills in effective interpreting and 
 24.36  translating. 
 25.1      (b) The board shall review and recommend programs to train 
 25.2   providers in the appropriate use of interpreters and translators.
 25.3      (c) The board shall: 
 25.4      (1) collect and review recent data to determine the number 
 25.5   of non-English speaking residents and the native language of 
 25.6   these persons; 
 25.7      (2) determine geographic areas in Minnesota with the 
 25.8   greatest need for spoken language and translator services; 
 25.9      (3) determine the most efficient and effective ways of 
 25.10  delivering the program to areas of need; 
 25.11     (4) recommend what provider or providers can best implement 
 25.12  and deliver the program, with emphasis on encouraging 
 25.13  collaborative efforts; 
 25.14     (5) determine the cost of implementing and providing the 
 25.15  program, including the possibility of competitive grants; and 
 25.16     (6) consult with persons developing the statewide judicial 
 25.17  interpreter certification and training program under Laws 1994, 
 25.18  chapter 636, article 1, section 14. 
 25.19     (d) The board shall transmit its recommendations, together 
 25.20  with its plan to develop appropriate programs, to the 
 25.21  appropriate committees of the legislature by January 20, 1996. 
 25.22     Sec. 20.  [CAREER PLANNING AND JOB PLACEMENT INFORMATION.] 
 25.23     Subdivision 1.  [PLAN.] The state universities, community 
 25.24  colleges, and technical colleges shall each develop and 
 25.25  implement plans, in conjunction with the board of trustees, to 
 25.26  provide job placement history and projected demand to students 
 25.27  at the time the student declares a major program or field of 
 25.28  study.  The University of Minnesota campuses are requested to 
 25.29  develop and implement similar plans. 
 25.30     Subd. 2.  [CONTENTS.] Information provided must include 
 25.31  program placement history, and projected demand in the field and 
 25.32  in associated types of placement, using labor market forecasting 
 25.33  information from the department of economic security.  The plan 
 25.34  must provide for students to indicate in writing that they 
 25.35  received the information. 
 25.36     Subd. 3.  [OUTCOMES.] As part of its biennial budget 
 26.1   request, the board of trustees shall demonstrate its efforts to 
 26.2   better inform students about careers and provide a summary of 
 26.3   job placement data. 
 26.4      Sec. 21.  [SABBATICALS.] 
 26.5      The board of trustees of the Minnesota state colleges and 
 26.6   universities shall develop policies and procedures to ensure 
 26.7   that the granting of sabbaticals is for the purpose of 
 26.8   encouraging special studies, investigations, and research that 
 26.9   contribute to the quality of education, scholarship, and 
 26.10  service.  To fulfill this purpose, the policies shall primarily 
 26.11  grant sabbaticals to faculty and to administrators with academic 
 26.12  responsibilities.  Additionally, the policies shall provide for 
 26.13  annual summary reporting to the board of all sabbatical plans 
 26.14  approved by a president or the chancellor, as appropriate, with 
 26.15  final summary reports of results achieved and the salary and 
 26.16  other costs paid on behalf of the faculty members or 
 26.17  administrators during the sabbaticals.  The board of regents of 
 26.18  the University of Minnesota is requested to review its 
 26.19  sabbatical policies, and to make any necessary adjustments to 
 26.20  meet the purpose described in this section, and also provide for 
 26.21  the reporting of sabbatical related information. 
 26.22     Sec. 22.  [REPEALER.] 
 26.23     Minnesota Statutes 1994, sections 136A.16, subdivision 11; 
 26.24  137.31, subdivision 6; 137.35, subdivision 4; and 137.38, are 
 26.25  repealed. 
 26.26     Sec. 23.  [EFFECTIVE DATES.] 
 26.27     Section 1, paragraph (c), is effective July 1, 1995, for 
 26.28  students beginning classes as freshmen in a Minnesota public 
 26.29  post-secondary institution.  Section 17 is effective the day 
 26.30  following final enactment. 
 26.31                             ARTICLE 3 
 26.32         HIGHER EDUCATION SERVICES OFFICE AND FINANCIAL AID 
 26.33     Section 1.  Minnesota Statutes 1994, section 126.56, is 
 26.34  amended to read: 
 26.35     126.56 [SUMMER SCHOLARSHIPS FOR ACADEMIC ENRICHMENT.] 
 26.36     Subdivision 1.  [ESTABLISHMENT.] A scholarship program is 
 27.1   established to enable secondary students to attend summer 
 27.2   programs sponsored by post-secondary institutions. 
 27.3      Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
 27.4   scholarship, a student shall: 
 27.5      (1) be a United States citizen or permanent resident of the 
 27.6   United States; 
 27.7      (2) be a resident of Minnesota; 
 27.8      (3) attend an eligible program; 
 27.9      (4) have completed at least one year of secondary school 
 27.10  but not have graduated from high school; 
 27.11     (5) have earned at least a B average during the semester or 
 27.12  quarter prior to application, or have earned at least a B 
 27.13  average during the semester or quarter prior to application in 
 27.14  the academic subject area applicable to the summer program the 
 27.15  student wishes to attend; and 
 27.16     (6) demonstrate need for financial assistance. 
 27.17     Subd. 3.  [FINANCIAL NEED.] Need for financial assistance 
 27.18  shall be based on family income, family size, and special 
 27.19  necessary expenditures of the family.  The higher 
 27.20  education coordinating board services office shall review the 
 27.21  financial need of each pupil to meet the actual costs of 
 27.22  attending the summer program, as determined by the institution 
 27.23  sponsoring the summer program.  The board office shall award 
 27.24  scholarships within the limits of the appropriation for this 
 27.25  section.  If the amount appropriated is insufficient, the board 
 27.26  office shall allocate the amount appropriated in the manner it 
 27.27  determines.  A scholarship shall not exceed $1,000. 
 27.28     Subd. 4.  [ELIGIBLE INSTITUTIONS.] A scholarship may be 
 27.29  used only at an eligible institution.  A Minnesota public 
 27.30  post-secondary institution is an eligible institution.  A 
 27.31  private post-secondary institution is eligible if it: 
 27.32     (1) is accredited by the North Central Association of 
 27.33  Colleges; 
 27.34     (2) offers an associate or baccalaureate degree program 
 27.35  approved under section 136A.65, subdivision 1; and 
 27.36     (3) is located in Minnesota. 
 28.1      Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
 28.2   only for an eligible program.  To be eligible, a program must: 
 28.3      (1) provide, as its primary purpose, academic instruction 
 28.4   for student enrichment in curricular areas including, but not 
 28.5   limited to, communications, humanities, social studies, social 
 28.6   science, science, mathematics, art, or foreign languages; 
 28.7      (2) not be offered for credit to post-secondary students; 
 28.8      (3) not provide remedial instruction; 
 28.9      (4) meet any other program requirements established by the 
 28.10  state board of education and the higher education coordinating 
 28.11  board services office; and 
 28.12     (5) be approved by the commissioner.  
 28.13     Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
 28.14  assist the state board of education in approving eligible 
 28.15  programs and shall assist the higher education coordinating 
 28.16  board services office in planning, implementing, and evaluating 
 28.17  the scholarship program.  The committee shall consist of 11 
 28.18  members, to include the executive director of the higher 
 28.19  education coordinating board services office or a 
 28.20  representative, the commissioner of education or a 
 28.21  representative, two secondary school administrators and two 
 28.22  secondary teachers appointed by the commissioner of education, 
 28.23  the executive director of the academic excellence foundation, a 
 28.24  private college representative appointed by the president of the 
 28.25  Minnesota private college council, a community college 
 28.26  representative appointed by the community college 
 28.27  chancellor, and a state university representative appointed by 
 28.28  the state university chancellor of the Minnesota state colleges 
 28.29  and universities, and a University of Minnesota representative 
 28.30  appointed by the president of the University of Minnesota.  The 
 28.31  committee expires June 30, 1995 1997. 
 28.32     Subd. 6.  [INFORMATION.] The higher education coordinating 
 28.33  board services office, in cooperation with the academic 
 28.34  excellence foundation, shall assemble and distribute information 
 28.35  about scholarships and eligible programs.  
 28.36     Subd. 7.  [ADMINISTRATION.] The higher education 
 29.1   coordinating board services office and commissioner shall 
 29.2   determine the time and manner for scholarship applications, 
 29.3   awards, and program approval. 
 29.4      Subd. 8.  [EXEMPTION FROM RULEMAKING.] Sections 14.01 to 
 29.5   14.47 do not apply to this section. 
 29.6      Sec. 2.  Minnesota Statutes 1994, section 126.663, 
 29.7   subdivision 3, is amended to read: 
 29.8      Subd. 3.  [MODEL LEARNER OUTCOMES.] The department shall 
 29.9   develop and maintain model learner outcomes in state board 
 29.10  identified subject areas, including career vocational learner 
 29.11  outcomes.  The department shall make learner outcomes available 
 29.12  upon request by a district.  Learner outcomes shall be for 
 29.13  pupils in early childhood through grade 12.  The department 
 29.14  shall consult with each of the public post-secondary systems and 
 29.15  with the higher education coordinating board in developing model 
 29.16  learner outcomes appropriate for entry into post-secondary 
 29.17  institutions.  Learner outcomes shall include thinking and 
 29.18  problem solving skills. 
 29.19     Sec. 3.  Minnesota Statutes 1994, section 135A.08, 
 29.20  subdivision 1, is amended to read: 
 29.21     Subdivision 1.  [COURSE EQUIVALENCY.] The regents of the 
 29.22  University of Minnesota, state university board, state board for 
 29.23  community colleges, and state board of technical colleges, in 
 29.24  conjunction with the higher education coordinating board, and 
 29.25  the trustees of the Minnesota state colleges and universities 
 29.26  shall develop and maintain course equivalency guides for use 
 29.27  between institutions that have a high frequency of transfer.  
 29.28  Subject to the determination of the higher education 
 29.29  coordinating board made in consultation with the state board of 
 29.30  technical colleges, Course equivalency guides shall not be 
 29.31  required for vocational technical programs that have not been 
 29.32  divided into identifiable courses.  The governing boards of 
 29.33  private institutions that grant associate and baccalaureate 
 29.34  degrees and that have a high frequency of transfer students are 
 29.35  requested to participate in developing these guides. 
 29.36     Sec. 4.  Minnesota Statutes 1994, section 135A.08, 
 30.1   subdivision 2, is amended to read: 
 30.2      Subd. 2.  [COMMON NUMBERING.] The regents of the University 
 30.3   of Minnesota, state university board, state board for community 
 30.4   colleges, and state board of technical colleges, in conjunction 
 30.5   with the higher education coordinating board, and the trustees 
 30.6   of the Minnesota state colleges and universities shall develop 
 30.7   and maintain a common numbering convention to distinguish 
 30.8   remedial, lower division, upper division, and graduate level 
 30.9   coursework.  The governing boards of private institutions that 
 30.10  grant associate and baccalaureate degrees are requested to 
 30.11  cooperate in the development of this numbering convention. 
 30.12     Sec. 5.  Minnesota Statutes 1994, section 135A.10, 
 30.13  subdivision 1, is amended to read: 
 30.14     Subdivision 1.  [POLICY AND PROCEDURES TO AWARD CREDIT.] 
 30.15  The board of regents of the University of Minnesota, the state 
 30.16  university board, and the state board for community colleges 
 30.17  board of trustees of the Minnesota state colleges and 
 30.18  universities shall each develop a clear and uniform policy for 
 30.19  its system for awarding post-secondary credit toward a degree 
 30.20  for a student who earns an acceptable score on an advanced 
 30.21  placement program examination.  Each policy must include 
 30.22  procedures to inform students and prospective students about 
 30.23  credit award and procedures to assure implementation on each 
 30.24  campus.  The higher education coordinating board shall assist in 
 30.25  developing the policy. 
 30.26     Sec. 6.  Minnesota Statutes 1994, section 135A.12, 
 30.27  subdivision 1, is amended to read: 
 30.28     Subdivision 1.  [APPLICABILITY.] This section applies 
 30.29  to the higher education coordinating board, each public 
 30.30  post-secondary governing board, and each public post-secondary 
 30.31  institution, and each school board that operates a technical 
 30.32  college.  
 30.33     Sec. 7.  Minnesota Statutes 1994, section 135A.15, 
 30.34  subdivision 1, is amended to read: 
 30.35     Subdivision 1.  [POLICY REQUIRED.] The governing board of 
 30.36  each public technical college, community college, or state 
 31.1   university trustees of the Minnesota state colleges and 
 31.2   universities shall, and the University of Minnesota is requested 
 31.3   to, adopt a clear, understandable written policy on sexual 
 31.4   harassment and sexual violence that informs victims of their 
 31.5   rights under the crime victims bill of rights, including the 
 31.6   right to assistance from the crime victims reparations board and 
 31.7   the office of the crime victim ombudsman.  The policy must apply 
 31.8   to students and employees and must provide information about 
 31.9   their rights and duties.  The policy must apply to criminal 
 31.10  incidents occurring on property owned by the post-secondary 
 31.11  system or institution in which the victim is a student or 
 31.12  employee of that system or institution.  It must include 
 31.13  procedures for reporting incidents of sexual harassment or 
 31.14  sexual violence and for disciplinary actions against violators.  
 31.15  During student registration, each technical college, community 
 31.16  college, or state university shall, and the University of 
 31.17  Minnesota is requested to, provide each student with information 
 31.18  regarding its policy.  A copy of the policy also shall be posted 
 31.19  at appropriate locations on campus at all times.  Each private 
 31.20  post-secondary institution that enrolls students who receive 
 31.21  state financial aid is an eligible institution as defined in 
 31.22  section 136A.101, subdivision 4, must adopt a policy that meets 
 31.23  the requirements of this section.  The higher education 
 31.24  coordinating board shall coordinate the policy development of 
 31.25  the systems and institutions and periodically provide for review 
 31.26  and necessary changes in the policies. 
 31.27     Sec. 8.  Minnesota Statutes 1994, section 135A.153, 
 31.28  subdivision 1, is amended to read: 
 31.29     Subdivision 1.  [CREATION AND DESIGNATION.] The higher 
 31.30  education center on violence and abuse is created.  The higher 
 31.31  education center on violence and abuse shall be located at and 
 31.32  managed by a public or private post-secondary institution in 
 31.33  Minnesota.  The higher education coordinating board shall 
 31.34  designate the location of the center following review of 
 31.35  proposals from potential higher education sponsors. 
 31.36     Sec. 9.  Minnesota Statutes 1994, section 136A.01, is 
 32.1   amended to read: 
 32.2      136A.01 [HIGHER EDUCATION SERVICES OFFICE.] 
 32.3      Subdivision 1.  [CREATION.] A coordinating board An office 
 32.4   for higher education in the state of Minnesota, to be known as 
 32.5   the Minnesota higher education coordinating board services 
 32.6   office or HESO, is hereby created. 
 32.7      Subd. 2.  [RESPONSIBILITIES.] The higher education services 
 32.8   office is responsible for: 
 32.9      (1) necessary state level administration of financial aid 
 32.10  programs, including accounting, auditing, and disbursing state 
 32.11  and federal financial aid funds, and reporting on financial aid 
 32.12  programs to the governor and the legislature; 
 32.13     (2) approval, registration, licensing, and financial aid 
 32.14  eligibility of private collegiate and career schools, under 
 32.15  sections 136A.61 to 136A.71 and chapter 141; 
 32.16     (3) administering the telecommunications council under Laws 
 32.17  1993, First Special Session chapter 2, article 5, section 2, the 
 32.18  Learning Network of Minnesota, and the statewide library task 
 32.19  force; 
 32.20     (4) negotiating and administering reciprocity agreements; 
 32.21     (5) publishing and distributing financial aid information 
 32.22  and materials, and other information and materials under section 
 32.23  136A.87, to students and parents; 
 32.24     (6) collecting and maintaining student enrollment and 
 32.25  financial aid data; 
 32.26     (7) administering the federal programs that affect students 
 32.27  and institutions on a statewide basis; and 
 32.28     (8) prescribing policies, procedures, and rules under 
 32.29  chapter 14 necessary to administer the programs under its 
 32.30  supervision. 
 32.31     Sec. 10.  [136A.011] [HIGHER EDUCATION SERVICES COUNCIL.] 
 32.32     Subdivision 1.  [MEMBERSHIP.] The higher education services 
 32.33  council consists of eight citizens and one student appointed by 
 32.34  the governor.  In making appointments, the governor shall 
 32.35  consider the geographic, gender, and ethnic diversity in the 
 32.36  state.  No more than five members of the council may belong to 
 33.1   the same political party.  The student member must be a 
 33.2   full-time student enrolled in a Minnesota post-secondary 
 33.3   institution at the time of appointment.  The student advisory 
 33.4   council shall recommend two to four candidates for the student 
 33.5   position.  The governor is not bound by these recommendations.  
 33.6   A nonstudent member of the council may not be an employee of or 
 33.7   receive compensation from a public or private post-secondary 
 33.8   institution while serving on the council.  A student member may 
 33.9   receive compensation as a student body officer or may be a 
 33.10  recipient of financial aid, including work study, but may not 
 33.11  otherwise be employed or compensated by a post-secondary 
 33.12  institution while serving on the council. 
 33.13     The term of each citizen member is six years, and that of 
 33.14  the student member is two years.  As nearly as possible, 
 33.15  one-third of the terms of the members must expire every two 
 33.16  years.  The compensation, removal of voting members, and filling 
 33.17  of vacancies among voting members on the council is governed by 
 33.18  section 15.0575, subdivisions 3, 4, and 5. 
 33.19     Subd. 2.  [DUTIES.] The council shall: 
 33.20     (1) appoint the director of the higher education services 
 33.21  office, as provided in section 136A.03; 
 33.22     (2) provide advice and review regarding the performance of 
 33.23  the higher education services office in its duties and in any 
 33.24  policies, procedures, or rules the office prescribes to perform 
 33.25  its duties; and 
 33.26     (3) communicate with and make recommendations to the 
 33.27  governor and the legislature. 
 33.28     Sec. 11.  Minnesota Statutes 1994, section 136A.03, is 
 33.29  amended to read: 
 33.30     136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
 33.31     The higher education coordinating board may appoint an 
 33.32  executive secretary or director as its principal executive 
 33.33  officer, and such other officers and employees as it may deem 
 33.34  necessary to carry out its duties.  The executive secretary or 
 33.35  director of the higher education services office shall possess 
 33.36  such the powers and perform such the duties as are delegated 
 34.1   prescribed by the board higher education services council and 
 34.2   shall serve in the unclassified service of the state civil 
 34.3   service.  The salary of the executive director shall be 
 34.4   established pursuant by the higher education services council 
 34.5   according to section 15A.081, subdivision 1.  The executive 
 34.6   director shall be a person qualified by training and ability or 
 34.7   experience in the field of higher education or in educational 
 34.8   financial aid administration.  The board director may also 
 34.9   appoint other officers and professional employees who shall 
 34.10  serve in the unclassified service of the state civil service and 
 34.11  fix the salaries thereof which shall be commensurate with 
 34.12  salaries in the classified service.  All other employees shall 
 34.13  be in the classified civil service.  
 34.14     An officer or professional employee in the unclassified 
 34.15  service as provided in this section is a person who has studied 
 34.16  higher education or a related field at the graduate level or has 
 34.17  similar experience and who is qualified for a career in some 
 34.18  aspect financial aid and other aspects of higher education and 
 34.19  for activities in keeping with the planning and administrative 
 34.20  responsibilities of the board office and who is appointed to 
 34.21  assume responsibility for administration of educational programs 
 34.22  or research in matters of higher education. 
 34.23     Sec. 12.  [136A.031] [ADVISORY GROUPS.] 
 34.24     Subdivision 1.  [APPOINTMENT.] The higher education 
 34.25  services council may appoint advisory task forces as necessary 
 34.26  to assist in the administration of the higher education services 
 34.27  office responsibilities.  The task forces' expiration and the 
 34.28  terms, compensation, and removal of members are as provided in 
 34.29  section 15.059. 
 34.30     Subd. 2.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
 34.31  education advisory council (HEAC) is established.  The HEAC is 
 34.32  composed of the president and the senior vice-president for 
 34.33  academic affairs of the University of Minnesota; the chancellor 
 34.34  of the Minnesota state colleges and universities; the associate 
 34.35  vice-chancellors of the state universities, community colleges, 
 34.36  and technical colleges; the commissioner of education; the 
 35.1   president of the private college council; and a representative 
 35.2   from the Minnesota association of private post-secondary 
 35.3   schools.  The HEAC shall (1) bring to the attention of the 
 35.4   higher education services council any matters that the HEAC 
 35.5   deems necessary, and (2) review and comment upon matters before 
 35.6   the council.  The council shall refer all proposals to the HEAC 
 35.7   before submitting recommendations to the governor and the 
 35.8   legislature.  The council shall provide time for a report from 
 35.9   the HEAC at each meeting of the council. 
 35.10     Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
 35.11  council (SAC) to the higher education services council is 
 35.12  established.  The members of SAC shall include the chair of the 
 35.13  University of Minnesota student senate, the state chair of the 
 35.14  Minnesota state university student association, the president of 
 35.15  the Minnesota community college student association, the 
 35.16  president of the Minnesota technical college student 
 35.17  association, the president of the Minnesota association of 
 35.18  private college students, and a student who is enrolled in a 
 35.19  private vocational school, to be appointed by the Minnesota 
 35.20  association of private post-secondary schools.  A member may be 
 35.21  represented by a student designee who attends an institution 
 35.22  from the same system that the absent member represents.  The SAC 
 35.23  shall select one of its members to serve as chair. 
 35.24     The higher education services council shall inform the SAC 
 35.25  of all matters related to student issues under consideration and 
 35.26  shall refer all proposals to the SAC before taking action or 
 35.27  sending the proposals to the governor or legislature.  The SAC 
 35.28  shall report to the higher education services council quarterly 
 35.29  and at other times that the SAC considers desirable.  The SAC 
 35.30  shall determine its meeting times, but it shall also meet with 
 35.31  the council within 30 days after the director's request for a 
 35.32  meeting. 
 35.33     The SAC shall: 
 35.34     (1) bring to the attention of the higher education services 
 35.35  council any matter that the SAC believes needs the attention of 
 35.36  the council; 
 36.1      (2) make recommendations to the higher education services 
 36.2   council as it finds appropriate; 
 36.3      (3) appoint student members to the higher education 
 36.4   services council advisory groups as provided in subdivision 4; 
 36.5   and 
 36.6      (4) provide any reasonable assistance to the council. 
 36.7      Subd. 4.  [STUDENT REPRESENTATION.] If requested by the 
 36.8   SAC, the director must place at least one student from an 
 36.9   affected educational system on any task force created under 
 36.10  subdivision 1.  The student member or members shall be appointed 
 36.11  by the SAC. 
 36.12     Sec. 13.  Minnesota Statutes 1994, section 136A.043, is 
 36.13  amended to read: 
 36.14     136A.043 [INFORMATION TECHNOLOGY.] 
 36.15     The higher education coordinating board services office 
 36.16  shall initiate activities to coordinate state policy development 
 36.17  regarding the use of information technology in post-secondary 
 36.18  education instruction and administration.  These activities 
 36.19  shall include at least the following:  a survey, conducted in 
 36.20  collaboration with the post-secondary education systems, of 
 36.21  existing information technology use and needs of institutions 
 36.22  and regions; initiation of collaborative activities to share 
 36.23  information and resources; and provision of opportunities for 
 36.24  post-secondary education policy makers to review issues and 
 36.25  needs for policy development. 
 36.26     Sec. 14.  Minnesota Statutes 1994, section 136A.05, 
 36.27  subdivision 1, is amended to read: 
 36.28     Subdivision 1.  All public institutions of higher 
 36.29  education, all school districts providing post-secondary 
 36.30  vocational education, and all state departments and agencies 
 36.31  shall cooperate with and supply information requested by the 
 36.32  higher education coordinating board services office in order to 
 36.33  enable it to carry out and perform its duties.  Private 
 36.34  post-secondary institutions are requested to cooperate and 
 36.35  provide information. 
 36.36     Sec. 15.  Minnesota Statutes 1994, section 136A.07, is 
 37.1   amended to read: 
 37.2      136A.07 [REPORTS.] 
 37.3      The higher education coordinating board services office 
 37.4   shall report periodically to the governor and legislature 
 37.5   concerning its activities from time to time and may report in 
 37.6   connection therewith to the governing body of each institution 
 37.7   of higher education in the state, both public and private. It 
 37.8   shall file a formal report with the governor not later than 
 37.9   October 15 of and legislature each even-numbered year so that 
 37.10  the information therein contained, including recommendations, 
 37.11  may be embodied in the governor's budget message to the 
 37.12  legislature.  It shall also report to the legislature not later 
 37.13  than November 15 of each even-numbered year. 
 37.14     Sec. 16.  Minnesota Statutes 1994, section 136A.08, is 
 37.15  amended to read: 
 37.16     136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT 
 37.17  TUITION WITH OTHER STATES OR PROVINCES.] 
 37.18     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 37.19  section, the terms "province" and "provincial" mean the Canadian 
 37.20  province of Manitoba. 
 37.21     Subd. 2.  [AUTHORIZATION.] The Minnesota higher education 
 37.22  coordinating board services office, in consultation with the 
 37.23  commissioner of finance and each affected public post-secondary 
 37.24  board, may enter into agreements, on subjects that include 
 37.25  remission of nonresident tuition for designated categories of 
 37.26  students at public post-secondary institutions, with appropriate 
 37.27  state or provincial agencies and public post-secondary 
 37.28  institutions in other states or provinces.  The agreements shall 
 37.29  be for the purpose of the mutual improvement of educational 
 37.30  advantages for residents of this state and other states or 
 37.31  provinces with whom agreements are made.  
 37.32     Subd. 3.  [WISCONSIN.] A higher education reciprocity 
 37.33  agreement with the state of Wisconsin may include provision for 
 37.34  the transfer of funds between Minnesota and Wisconsin provided 
 37.35  that an income tax reciprocity agreement between Minnesota and 
 37.36  Wisconsin is in effect for the period of time included under the 
 38.1   higher education reciprocity agreement.  If this provision is 
 38.2   included, the amount of funds to be transferred shall be 
 38.3   determined according to a formula which is mutually acceptable 
 38.4   to the board office and a duly designated agency representing 
 38.5   Wisconsin.  The formula shall recognize differences in tuition 
 38.6   rates between the two states and the number of students 
 38.7   attending institutions in each state under the agreement.  Any 
 38.8   payments to Minnesota by Wisconsin shall be deposited by the 
 38.9   board office in the general fund of the state treasury.  The 
 38.10  amount required for the payments shall be certified by 
 38.11  the executive director of the higher education coordinating 
 38.12  board office to the commissioner of finance annually. 
 38.13     Subd. 4.  [NORTH DAKOTA; SOUTH DAKOTA.] A reciprocity 
 38.14  agreement with North Dakota may include provision for the 
 38.15  transfer of funds between Minnesota and North Dakota.  If 
 38.16  provision for transfer of funds between the two states is 
 38.17  included, the amount of funds to be transferred shall be 
 38.18  determined according to a formula which is mutually acceptable 
 38.19  to the board office and a duly designated agency representing 
 38.20  North Dakota.  In adopting a formula, the board office shall 
 38.21  consider tuition rates in the two states and the number of 
 38.22  students attending institutions in each state under the 
 38.23  agreement.  Any payment to Minnesota by North Dakota shall be 
 38.24  deposited by the board office in the general fund.  The amount 
 38.25  required for the payments shall be certified by the executive 
 38.26  director of the higher education coordinating board office to 
 38.27  the commissioner of finance annually.  All provisions in this 
 38.28  subdivision pertaining to North Dakota shall also be applied to 
 38.29  South Dakota, and all authority and conditions granted for 
 38.30  higher education reciprocity with North Dakota are also granted 
 38.31  for higher education reciprocity with South Dakota. 
 38.32     Subd. 5.  [FINANCIAL AID.] The board office may enter into 
 38.33  an agreement, with a state or province with which it has 
 38.34  negotiated a reciprocity agreement for tuition, to permit 
 38.35  students to receive student aid awards from the student's state 
 38.36  or province of residence for attending an eligible institution 
 39.1   in the other state or province. 
 39.2      Subd. 6.  [APPROVAL.] An agreement made by the board office 
 39.3   under this section is not valid as to a particular institution 
 39.4   without the approval of that institution's state or provincial 
 39.5   governing board.  A valid agreement under this subdivision that 
 39.6   incurs additional financial liability to the state or to any of 
 39.7   the Minnesota public post-secondary boards, beyond enrollment 
 39.8   funding adjustments, must be submitted to the commissioner of 
 39.9   finance and to the chairs of the higher education finance 
 39.10  divisions of the senate and house for review.  The agreement 
 39.11  remains valid unless it is disapproved in law. 
 39.12     Sec. 17.  Minnesota Statutes 1994, section 136A.101, 
 39.13  subdivision 2, is amended to read: 
 39.14     Subd. 2.  "Board" "Office" means the Minnesota higher 
 39.15  education coordinating board services office. 
 39.16     Sec. 18.  Minnesota Statutes 1994, section 136A.101, 
 39.17  subdivision 3, is amended to read: 
 39.18     Subd. 3.  "Director" means the executive director of the 
 39.19  Minnesota higher education coordinating board services office. 
 39.20     Sec. 19.  Minnesota Statutes 1994, section 136A.101, 
 39.21  subdivision 5, is amended to read: 
 39.22     Subd. 5.  "Financial need" means the demonstrated need of 
 39.23  the applicant for financial assistance to meet the actual 
 39.24  recognized costs of attending the eligible institution of choice 
 39.25  as determined from financial information on the applicant and, 
 39.26  if required, on the applicant's parents, by a college 
 39.27  scholarship service or equivalent service under criteria 
 39.28  established by the board the federal need analysis. 
 39.29     Sec. 20.  Minnesota Statutes 1994, section 136A.101, 
 39.30  subdivision 8, is amended to read: 
 39.31     Subd. 8.  "Resident student" means a student who meets one 
 39.32  of the following conditions:  
 39.33     (1) an independent student who has resided in Minnesota for 
 39.34  purposes other than post-secondary education for at least 12 
 39.35  months without being enrolled at a post-secondary educational 
 39.36  institution for more than five credits in any term; 
 40.1      (2) a dependent student whose parent or legal guardian 
 40.2   resides in Minnesota at the time the student applies; 
 40.3      (3) a student who graduated from a Minnesota high school, 
 40.4   if the student was a resident of Minnesota during the student's 
 40.5   period of attendance at the Minnesota high school; or 
 40.6      (4) a student who, after residing in the state for a 
 40.7   minimum of one year, earned a high school equivalency 
 40.8   certificate in Minnesota. 
 40.9      Sec. 21.  Minnesota Statutes 1994, section 136A.101, 
 40.10  subdivision 10, is amended to read: 
 40.11     Subd. 10.  "Satisfactory academic progress" means that: 
 40.12     (1) at the end of a point between a student's first and 
 40.13  second academic year of attendance at an institution:, 
 40.14     (1) the student has at least a cumulative grade point 
 40.15  average of C or its equivalent, or academic standing consistent 
 40.16  with its the institution's graduation requirements; or and 
 40.17     (2) The student's failure to have at least a cumulative 
 40.18  grade point average of C or its equivalent, or academic standing 
 40.19  consistent with its graduation requirements, was caused by (a) 
 40.20  the death of a relative of the student; (b) an injury or illness 
 40.21  of the student; or (c) other special circumstances.  by the end 
 40.22  of the first term of the third and fourth academic year of 
 40.23  attendance, (i) the student has a cumulative grade point average 
 40.24  of at least a C or its equivalent, (ii) the student's advisor 
 40.25  certifies that the student has reviewed the general education 
 40.26  requirements necessary for graduation and is making satisfactory 
 40.27  progress toward completing them, and (iii) the student's advisor 
 40.28  certifies that the student has chosen a major and reviewed the 
 40.29  requirements necessary for completion of the major. 
 40.30     Sec. 22.  Minnesota Statutes 1994, section 136A.121, 
 40.31  subdivision 5, is amended to read: 
 40.32     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 40.33  based on a sharing of responsibility for covering the recognized 
 40.34  cost of attendance by the applicant, the applicant's family, and 
 40.35  the government.  The amount of a financial stipend must not 
 40.36  exceed a grant applicant's recognized cost of attendance, as 
 41.1   defined in subdivision 6, after deducting the following:  
 41.2      (1) a contribution by the grant applicant the assigned 
 41.3   student responsibility of at least 50 percent of the cost of 
 41.4   attending the institution of the applicant's choosing; 
 41.5      (2) for an applicant who is not an independent student, a 
 41.6   contribution by the grant applicant's parents, the assigned 
 41.7   family responsibility, as determined by a standardized the 
 41.8   federal need analysis, which for (i) dependent students, is the 
 41.9   parental contribution as calculated by the federal need 
 41.10  analysis, and for (ii) independent students, is the student 
 41.11  contribution as determined by the federal need analysis; and 
 41.12     (3) the amount of a federal Pell grant award for which the 
 41.13  grant applicant is eligible.  
 41.14     The minimum financial stipend is $100 $300 per academic 
 41.15  year.  
 41.16     Sec. 23.  Minnesota Statutes 1994, section 136A.121, 
 41.17  subdivision 6, is amended to read: 
 41.18     Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
 41.19  attendance consists of allowances specified by the board in law 
 41.20  for room and board and miscellaneous expenses, and 
 41.21     (1) for public institutions, tuition and fees charged by 
 41.22  the institution; or 
 41.23     (2) for private institutions, an allowance for tuition and 
 41.24  fees equal to the lesser of the actual tuition and fees charged 
 41.25  by the institution, or the instructional costs per full-year 
 41.26  equivalent student in comparable public institutions private 
 41.27  institution tuition maximums established in law. 
 41.28     (b) For the purpose of paragraph (a), clause (2), 
 41.29  "comparable public institutions" to both the private institution 
 41.30  tuition maximum for two- and four-year, private, residential, 
 41.31  liberal arts, degree-granting colleges and universities must be 
 41.32  the same. 
 41.33     (c) For a student attending less than full time, the board 
 41.34  office shall prorate the recognized cost of attendance to the 
 41.35  actual number of credits for which the student is enrolled. 
 41.36     The recognized cost of attendance for a student who is 
 42.1   confined to a Minnesota correctional institution shall consist 
 42.2   of the tuition and fee component in clause (1) or (2), with no 
 42.3   allowance for living expenses. 
 42.4      Sec. 24.  Minnesota Statutes 1994, section 136A.121, 
 42.5   subdivision 9, is amended to read: 
 42.6      Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 42.7   board's office's requirements is eligible to apply for and 
 42.8   receive a grant in any year of undergraduate study unless the 
 42.9   student has obtained a baccalaureate degree or previously has 
 42.10  been enrolled full time or the equivalent for eight semesters or 
 42.11  12 quarters, excluding courses taken from a Minnesota school or 
 42.12  post-secondary institution which is not participating in the 
 42.13  state grant program and from which a student transferred no 
 42.14  credit. 
 42.15     Sec. 25.  Minnesota Statutes 1994, section 136A.121, is 
 42.16  amended by adding a subdivision to read: 
 42.17     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 42.18  grants for four consecutive quarters or three consecutive 
 42.19  semesters during the course of a single fiscal year.  In 
 42.20  calculating a state grant for the fourth quarter or third 
 42.21  semester, the office must use the same calculation as it would 
 42.22  for any other term, except that the calculation must subtract 
 42.23  any Pell grant for which a student would be eligible even if the 
 42.24  student has exhausted the Pell grant for that fiscal year. 
 42.25     Sec. 26.  Minnesota Statutes 1994, section 136A.121, 
 42.26  subdivision 16, is amended to read: 
 42.27     Subd. 16.  [HOW APPLIED; ORDER.] Grants awarded under this 
 42.28  section and sections 136A.132 to 136A.1354 must be applied to 
 42.29  educational costs in the following order:  tuition, fees, books, 
 42.30  supplies, and other expenses.  Unpaid portions of the awards 
 42.31  revert to the grant account. 
 42.32     Sec. 27.  Minnesota Statutes 1994, section 136A.125, 
 42.33  subdivision 4, is amended to read: 
 42.34     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 42.35  child care grant must be based on: 
 42.36     (1) the income of the applicant and the applicant's spouse, 
 43.1   if any; 
 43.2      (2) the number in the applicant's family, as defined by the 
 43.3   board; and 
 43.4      (3) the number of eligible children in the applicant's 
 43.5   family.  
 43.6      The maximum award to the applicant shall be $1,500 $1,700 
 43.7   for each eligible child per academic year.  The board office 
 43.8   shall prepare a chart to show the amount of a grant that will be 
 43.9   awarded per child based on the factors in this subdivision.  The 
 43.10  chart shall include a range of income and family size. 
 43.11     Sec. 28.  Minnesota Statutes 1994, section 136A.125, 
 43.12  subdivision 6, is amended to read: 
 43.13     Subd. 6.  [YEARLY ALLOCATIONS TO INSTITUTIONS.] The board 
 43.14  office shall base yearly allocations on the need for funds using 
 43.15  relevant factors as determined by the board office in 
 43.16  consultation with the institutions.  Up to five percent of 
 43.17  the allocation money spent on students' child care awards, as 
 43.18  determined by the board office, may be used for an institution's 
 43.19  administrative expenses related to the child care grant 
 43.20  program.  Any money designated, but not used, for this purpose 
 43.21  must be reallocated to child care grants.  An institution may 
 43.22  carry forward or backward ten percent of its annual allocation 
 43.23  to be used for awards in the previous or subsequent academic 
 43.24  year. 
 43.25     Sec. 29.  Minnesota Statutes 1994, section 136A.1359, 
 43.26  subdivision 1, is amended to read: 
 43.27     Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
 43.28  established under the authority of the higher education 
 43.29  coordinating board services office to provide grants to students 
 43.30  who are persons of color who are entering or enrolled in an 
 43.31  educational program that leads to licensure as a registered 
 43.32  nurse, or advanced nursing education. 
 43.33     Sec. 30.  Minnesota Statutes 1994, section 136A.1359, 
 43.34  subdivision 2, is amended to read: 
 43.35     Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
 43.36  a student shall be:  
 44.1      (1) a citizen of the United States or permanent resident of 
 44.2   the United States; 
 44.3      (2) a resident of the state of Minnesota; 
 44.4      (3) an Asian Pacific-American, African-American, American 
 44.5   Indian, or Hispanic-American (Latino, Chicano, or Puerto Rican); 
 44.6      (4) entering or enrolled in a nursing program in Minnesota 
 44.7   that leads to licensure as a registered nurse, a baccalaureate 
 44.8   degree in nursing, a master's degree in nursing, or program of 
 44.9   advanced nursing education; and 
 44.10     (5) eligible under any additional criteria established by 
 44.11  the school, college, or program of nursing in which the student 
 44.12  is enrolled.  Students applying for a grant must be willing to 
 44.13  practice in Minnesota for at least three years following 
 44.14  licensure. 
 44.15     The grant must be awarded for one academic year but is 
 44.16  renewable for a maximum of six semesters or nine quarters of 
 44.17  full-time study, or their equivalent.  
 44.18     Sec. 31.  Minnesota Statutes 1994, section 136A.1359, 
 44.19  subdivision 3, is amended to read: 
 44.20     Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
 44.21  school, college, or program of nursing that wishes to 
 44.22  participate in the student nursing grant program shall apply to 
 44.23  the higher education coordinating board services office for 
 44.24  grant money, according to policies established by the board 
 44.25  office.  A school, college, or program of nursing shall 
 44.26  establish criteria to use in awarding the grants.  The criteria 
 44.27  must include consideration of the likelihood of a student's 
 44.28  success in completing the nursing educational program and must 
 44.29  give priority to students with the greatest financial 
 44.30  need.  Grants must be $2,500 per year.  Each grant must be for a 
 44.31  minimum of $2,000 but not exceed $4,000.  Each school, college, 
 44.32  or program of nursing shall agree that the money awarded through 
 44.33  this grant program must not be used to replace any other grant 
 44.34  or scholarship money for which the student would be otherwise 
 44.35  eligible. 
 44.36     Sec. 32.  Minnesota Statutes 1994, section 136A.15, 
 45.1   subdivision 3, is amended to read: 
 45.2      Subd. 3.  "Board" "Office" means the Minnesota higher 
 45.3   education coordinating board services office. 
 45.4      Sec. 33.  Minnesota Statutes 1994, section 136A.15, 
 45.5   subdivision 4, is amended to read: 
 45.6      Subd. 4.  "Director" means the executive director of the 
 45.7   Minnesota higher education coordinating board services office. 
 45.8      Sec. 34.  Minnesota Statutes 1994, section 136A.16, 
 45.9   subdivision 1, is amended to read: 
 45.10     Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
 45.11  higher education coordinating board services office is 
 45.12  designated as the administrative agency for carrying out the 
 45.13  purposes and terms of sections 136A.15 to 136A.1702.  The board 
 45.14  office may establish one or more loan programs. 
 45.15     Sec. 35.  Minnesota Statutes 1994, section 136A.233, 
 45.16  subdivision 2, is amended to read: 
 45.17     Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
 45.18  to 136A.233, the words defined in this subdivision have the 
 45.19  meanings ascribed to them. 
 45.20     (a) "Eligible student" means a Minnesota resident enrolled 
 45.21  or intending to enroll at least half time in a degree, diploma, 
 45.22  or certificate program in a Minnesota post-secondary institution.
 45.23     (b) "Minnesota resident" means a student who meets the 
 45.24  conditions in section 136A.101, subdivision 8. 
 45.25     (c) "Financial need" means the need for financial 
 45.26  assistance in order to attend a post-secondary institution as 
 45.27  determined by a post-secondary institution according to 
 45.28  guidelines established by the higher education coordinating 
 45.29  board services office. 
 45.30     (d) "Eligible employer" means any eligible post-secondary 
 45.31  institution and any nonprofit, nonsectarian agency or state 
 45.32  institution located in the state of Minnesota, including state 
 45.33  hospitals, and also includes a handicapped person or a person 
 45.34  over 65 who employs a student to provide personal services in or 
 45.35  about the residence of the handicapped person or the person over 
 45.36  65. 
 46.1      (e) "Eligible post-secondary institution" means any 
 46.2   post-secondary institution eligible for participation in the 
 46.3   Minnesota state grant program as specified in section 136A.101, 
 46.4   subdivision 4. 
 46.5      (f) "Independent student" has the meaning given it in the 
 46.6   Higher Education Act of 1965, United States Code, title 20, 
 46.7   section 1070a-6, and applicable regulations. 
 46.8      (g) "Half-time" for undergraduates has the meaning given in 
 46.9   section 136A.101, subdivision 7b, and for graduate students is 
 46.10  defined by the institution. 
 46.11     Sec. 36.  Minnesota Statutes 1994, section 136A.26, 
 46.12  subdivision 1, is amended to read: 
 46.13     Subdivision 1.  [MEMBERSHIP.] The Minnesota higher 
 46.14  education facilities authority shall consist of eight members 
 46.15  appointed by the governor with the advice and consent of the 
 46.16  senate, and the executive director of the Minnesota higher 
 46.17  education coordinating board.  The executive director of the 
 46.18  coordinating board may designate a member of the director's 
 46.19  staff to sit in the director's place as a member of the 
 46.20  authority a representative of the higher education services 
 46.21  office.  
 46.22     All members to be appointed by the governor shall be 
 46.23  residents of the state.  At least two members must reside 
 46.24  outside the metropolitan area as defined in section 473.121, 
 46.25  subdivision 2.  At least one of the members shall be a person 
 46.26  having a favorable reputation for skill, knowledge, and 
 46.27  experience in the field of state and municipal finance; and at 
 46.28  least one shall be a person having a favorable reputation for 
 46.29  skill, knowledge, and experience in the building construction 
 46.30  field; and at least one of the members shall be a trustee, 
 46.31  director, officer, or employee of an institution of higher 
 46.32  education. 
 46.33     Sec. 37.  Minnesota Statutes 1994, section 136A.26, 
 46.34  subdivision 2, is amended to read: 
 46.35     Subd. 2.  [TERM; COMPENSATION; REMOVAL.] The membership 
 46.36  terms, compensation, removal of members, and filling of 
 47.1   vacancies for authority members other than the executive 
 47.2   director of the higher education coordinating board or the 
 47.3   director's designee representative of the higher education 
 47.4   services office, and the chief executive officer president of 
 47.5   the private college council, shall be as provided in section 
 47.6   15.0575. 
 47.7      Sec. 38.  Minnesota Statutes 1994, section 136A.42, is 
 47.8   amended to read: 
 47.9      136A.42 [ANNUAL REPORT.] 
 47.10     The authority shall keep an accurate account of all of its 
 47.11  activities and all of its receipts and expenditures and shall 
 47.12  annually make a report thereof to the higher education 
 47.13  coordinating board services office.  The higher education 
 47.14  coordinating board shall review and comment upon the report and 
 47.15  make such recommendations as it deems necessary to the governor 
 47.16  and the legislature. 
 47.17     Sec. 39.  Minnesota Statutes 1994, section 136A.62, 
 47.18  subdivision 2, is amended to read: 
 47.19     Subd. 2.  [BOARD OFFICE.] "Board" "Office" means the 
 47.20  Minnesota higher education coordinating board services office. 
 47.21     Sec. 40.  [136A.685] [PRIVATE INSTITUTIONS; ADJUDICATION OF 
 47.22  FRAUD OR MISREPRESENTATION.] 
 47.23     The office shall not provide registration or degree or name 
 47.24  approval to a school if there has been a criminal or civil 
 47.25  adjudication of fraud or misrepresentation in Minnesota or in 
 47.26  another state or jurisdiction against the school or its owner, 
 47.27  officers, agents, or sponsoring organization.  Such an 
 47.28  adjudication of fraud or misrepresentation shall be sufficient 
 47.29  cause for the office to determine that a school: 
 47.30     (1) does not qualify for exemption under section 136A.657; 
 47.31  or 
 47.32     (2) is not approved to grant degrees or to use the term 
 47.33  "academy," "institute," or "university" in its name. 
 47.34     Sec. 41.  Minnesota Statutes 1994, section 136A.69, is 
 47.35  amended to read: 
 47.36     136A.69 [FEES.] 
 48.1      The board may office shall collect reasonable registration 
 48.2   fees not to exceed $450 for an initial registration of each 
 48.3   school and $350 for each annual renewal of an existing 
 48.4   registration that are sufficient to recover, but do not exceed, 
 48.5   its costs of administering the registration program. 
 48.6      Sec. 42.  Minnesota Statutes 1994, section 136A.81, 
 48.7   subdivision 1, is amended to read: 
 48.8      Subdivision 1.  [FEES AND TUITION.] Except for an 
 48.9   administration fee of $6 a credit hour established by the 
 48.10  governing board at a level to recover costs, to be collected 
 48.11  only when a course is taken for credit, a senior citizen who is 
 48.12  a legal resident of Minnesota is entitled without payment of 
 48.13  tuition or activity fees to attend courses offered for credit, 
 48.14  audit any courses offered for credit, or enroll in any noncredit 
 48.15  adult vocational education courses in any state supported 
 48.16  institution of higher education in Minnesota when space is 
 48.17  available after all tuition-paying students have been 
 48.18  accommodated.  For the purposes of this section and section 
 48.19  136A.80, the term "noncredit adult vocational education courses" 
 48.20  shall not include those adult vocational education courses 
 48.21  designed and offered specifically and exclusively for senior 
 48.22  citizens.  
 48.23     The provisions of this section and section 136A.80 do not 
 48.24  apply to noncredit courses designed and offered by the 
 48.25  University of Minnesota, and the Minnesota state university 
 48.26  system, the community college system, and the technical colleges 
 48.27  and universities specifically and exclusively for senior 
 48.28  citizens.  Senior citizens enrolled under the provisions of this 
 48.29  section and section 136A.80 shall not be included by such 
 48.30  institutions in their computation of full-time equivalent 
 48.31  students when requesting staff or appropriations.  The enrollee 
 48.32  shall pay laboratory or material fees. 
 48.33     Sec. 43.  Minnesota Statutes 1994, section 141.25, 
 48.34  subdivision 8, is amended to read: 
 48.35     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
 48.36  initial license under sections 141.21 to 141.36 shall be 
 49.1   accompanied by $650 as a nonrefundable application 
 49.2   fee established by the office that is sufficient to recover, but 
 49.3   not exceed, its administrative costs. 
 49.4      (b) All licenses shall expire one year from the date issued 
 49.5   by the board office.  Each renewal application shall be 
 49.6   accompanied by a nonrefundable renewal fee of $650 established 
 49.7   by the office that is sufficient to recover, but does not 
 49.8   exceed, its administrative costs.  
 49.9      (c) Application for renewal of license shall be made at 
 49.10  least 30 days before the expiration of the school's current 
 49.11  license.  Each renewal form shall be supplied by the board 
 49.12  office.  It shall not be necessary for an applicant to supply 
 49.13  all information required in the initial application at the time 
 49.14  of renewal unless requested by the board office. 
 49.15     Sec. 44.  Minnesota Statutes 1994, section 144.1487, 
 49.16  subdivision 1, is amended to read: 
 49.17     Subdivision 1.  [DEFINITIONS.] (a) For purposes of sections 
 49.18  144.1487 to 144.1492, the following definitions apply definition 
 49.19  applies. 
 49.20     (b) "Board" means the higher education coordinating board. 
 49.21     (c) "Health professional shortage area" means an area 
 49.22  designated as such by the federal Secretary of Health and Human 
 49.23  Services, as provided under Code of Federal Regulations, title 
 49.24  42, part 5, and United States Code, title 42, section 254E. 
 49.25     Sec. 45.  Minnesota Statutes 1994, section 144.1488, 
 49.26  subdivision 1, is amended to read: 
 49.27     Subdivision 1.  [DUTIES OF THE COMMISSIONER OF HEALTH.] The 
 49.28  commissioner shall administer the state loan repayment program.  
 49.29  The commissioner shall: 
 49.30     (1) ensure that federal funds are used in accordance with 
 49.31  program requirements established by the federal National Health 
 49.32  Services Corps; 
 49.33     (2) notify potentially eligible loan repayment sites about 
 49.34  the program; 
 49.35     (3) develop and disseminate application materials to sites; 
 49.36     (4) review and rank applications using the scoring criteria 
 50.1   approved by the federal Department of Health and Human Services 
 50.2   as part of the Minnesota department of health's National Health 
 50.3   Services Corps state loan repayment program application; 
 50.4      (5) select sites that qualify for loan repayment based upon 
 50.5   the availability of federal and state funding; 
 50.6      (6) provide the higher education coordinating board with a 
 50.7   list of qualifying sites; and 
 50.8      (7) carry out other activities necessary to implement and 
 50.9   administer sections 144.1487 to 144.1492. 
 50.10     The commissioner shall enter into an interagency agreement 
 50.11  with the higher education coordinating board to carry out the 
 50.12  duties assigned to the board under sections 144.1487 to 144.1492.
 50.13     (7) verify the eligibility of program participants; 
 50.14     (8) sign a contract with each participant that specifies 
 50.15  the obligations of the participant and the state; 
 50.16     (9) arrange for the payment of qualifying educational loans 
 50.17  for program participants; 
 50.18     (10) monitor the obligated service of program participants; 
 50.19     (11) waive or suspend service or payment obligations of 
 50.20  participants in appropriate situations; 
 50.21     (12) place participants who fail to meet their obligations 
 50.22  in default; and 
 50.23     (13) enforce penalties for default. 
 50.24     Sec. 46.  Minnesota Statutes 1994, section 144.1488, 
 50.25  subdivision 4, is amended to read: 
 50.26     Subd. 4.  [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be 
 50.27  eligible to apply to the higher education coordinating board 
 50.28  commissioner for the loan repayment program, health 
 50.29  professionals must be citizens or nationals of the United 
 50.30  States, must not have any unserved obligations for service to a 
 50.31  federal, state, or local government, or other entity, and must 
 50.32  be ready to begin full-time clinical practice upon signing a 
 50.33  contract for obligated service. 
 50.34     (b) In selecting physicians for participation, the board 
 50.35  commissioner shall give priority to physicians who are board 
 50.36  certified or have completed a residency in family practice, 
 51.1   osteopathic general practice, obstetrics and gynecology, 
 51.2   internal medicine, or pediatrics.  A physician selected for 
 51.3   participation is not eligible for loan repayment until the 
 51.4   physician has an employment agreement or contract with an 
 51.5   eligible loan repayment site and has signed a contract for 
 51.6   obligated service with the higher education coordinating 
 51.7   board commissioner. 
 51.8      Sec. 47.  Minnesota Statutes 1994, section 144.1489, 
 51.9   subdivision 1, is amended to read:  
 51.10     Subdivision 1.  [CONTRACT REQUIRED.] Before starting the 
 51.11  period of obligated service, a participant must sign a contract 
 51.12  with the higher education coordinating board commissioner that 
 51.13  specifies the obligations of the participant and the board 
 51.14  commissioner. 
 51.15     Sec. 48.  Minnesota Statutes 1994, section 144.1489, 
 51.16  subdivision 3, is amended to read: 
 51.17     Subd. 3.  [LENGTH OF SERVICE.] Participants must agree to 
 51.18  provide obligated service for a minimum of two years.  A 
 51.19  participant may extend a contract to provide obligated service 
 51.20  for a third year, subject to board approval by the commissioner 
 51.21  and the availability of federal and state funding. 
 51.22     Sec. 49.  Minnesota Statutes 1994, section 144.1489, 
 51.23  subdivision 4, is amended to read: 
 51.24     Subd. 4.  [AFFIDAVIT OF SERVICE REQUIRED.] Within 30 days 
 51.25  of the start of obligated service, and by February 1 of each 
 51.26  succeeding calendar year, a participant shall submit an 
 51.27  affidavit to the board commissioner stating that the participant 
 51.28  is providing the obligated service and which is signed by a 
 51.29  representative of the organizational entity in which the service 
 51.30  is provided.  Participants must provide written notice to 
 51.31  the board commissioner within 30 days of:  a change in name or 
 51.32  address, a decision not to fulfill a service obligation, or 
 51.33  cessation of clinical practice. 
 51.34     Sec. 50.  Minnesota Statutes 1994, section 144.1490, is 
 51.35  amended to read: 
 51.36     144.1490 [RESPONSIBILITIES OF THE LOAN REPAYMENT PROGRAM.] 
 52.1      Subdivision 1.  [LOAN REPAYMENT.] Subject to the 
 52.2   availability of federal and state funds for the loan repayment 
 52.3   program, the higher education coordinating board commissioner 
 52.4   shall pay all or part of the qualifying education loans up to 
 52.5   $20,000 annually for each primary care physician participant 
 52.6   that fulfills the required service obligation.  For purposes of 
 52.7   this provision, "qualifying educational loans" are government 
 52.8   and commercial loans for actual costs paid for tuition, 
 52.9   reasonable education expenses, and reasonable living expenses 
 52.10  related to the graduate or undergraduate education of a health 
 52.11  care professional. 
 52.12     Subd. 2.  [PROCEDURE FOR LOAN REPAYMENT.] Program 
 52.13  participants, at the time of signing a contract, shall designate 
 52.14  the qualifying loan or loans for which the higher education 
 52.15  coordinating board commissioner is to make payments.  The 
 52.16  participant shall submit to the board commissioner all payment 
 52.17  books for the designated loan or loans or all monthly billings 
 52.18  for the designated loan or loans within five days of receipt.  
 52.19  The board commissioner shall make payments in accordance with 
 52.20  the terms and conditions of the designated loans, in an amount 
 52.21  not to exceed $20,000 when annualized.  If the amount paid by 
 52.22  the board commissioner is less than $20,000 during a 12-month 
 52.23  period, the board commissioner shall pay during the 12th month 
 52.24  an additional amount towards a loan or loans designated by the 
 52.25  participant, to bring the total paid to $20,000.  The total 
 52.26  amount paid by the board commissioner must not exceed the amount 
 52.27  of principal and accrued interest of the designated loans. 
 52.28     Sec. 51.  Minnesota Statutes 1994, section 144.1491, 
 52.29  subdivision 2, is amended to read: 
 52.30     Subd. 2.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 52.31  service obligations cancel in the event of a participant's 
 52.32  death.  The board commissioner may waive or suspend payment or 
 52.33  service obligations in case of total and permanent disability or 
 52.34  long-term temporary disability lasting for more than two years.  
 52.35  The board commissioner shall evaluate all other requests for 
 52.36  suspension or waivers on a case-by-case basis. 
 53.1      Sec. 52.  Minnesota Statutes 1994, section 298.2214, 
 53.2   subdivision 5, is amended to read: 
 53.3      Subd. 5.  [HECB AND SYSTEM APPROVAL.] A program may not be 
 53.4   offered under a contract executed according to this section 
 53.5   unless it is approved by the higher education coordinating board 
 53.6   and the board of the system offering the program.  
 53.7      Sec. 53.  Laws 1993, chapter 326, article 12, section 15, 
 53.8   subdivision 4, is amended to read: 
 53.9      Subd. 4.  [PROFESSIONAL EDUCATION AND LICENSURE.] By March 
 53.10  15, 1994, The center shall convene task forces for professions 
 53.11  that work with victims and perpetrators of violence.  Task 
 53.12  forces must be formed for the following professions:  teachers, 
 53.13  school administrators, guidance counselors, law enforcement 
 53.14  officers, lawyers, physicians, nurses, psychologists, and social 
 53.15  workers.  Each task force must include representatives of the 
 53.16  licensing agency, higher education systems offering programs in 
 53.17  the profession, appropriate professional associations, students 
 53.18  or recent graduates, representatives of communities served by 
 53.19  the profession, and employers or experienced professionals.  The 
 53.20  center must establish guidelines for the work of the task 
 53.21  forces.  Each task force must review current programs, licensing 
 53.22  regulations and examinations, and accreditation standards to 
 53.23  identify specific needs and plans for ensuring that 
 53.24  professionals are adequately prepared and updated on violence 
 53.25  and abuse issues. 
 53.26     Sec. 54.  Laws 1993, chapter 326, article 12, section 15, 
 53.27  subdivision 5, is amended to read:  
 53.28     Subd. 5.  [PROGRESS REPORT.] The center shall provide a 
 53.29  progress report to the legislature by March 15, 1994 1996. 
 53.30     Sec. 55.  Laws 1993, First Special Session chapter 2, 
 53.31  article 1, section 2, subdivision 3, is amended to read: 
 53.32  Subd. 3.  State Grants 
 53.33      101,950,000       97,950,000
 53.34  If the appropriation in this 
 53.35  subdivision for either year is 
 53.36  insufficient, the appropriation for the 
 53.37  other year is available for it.  
 54.1   The legislature intends that the higher 
 54.2   education coordinating board make full 
 54.3   grant awards in each year of the 
 54.4   biennium. 
 54.5   This appropriation contains money for 
 54.6   increasing living allowances for state 
 54.7   grants to $4,115 each year.  
 54.8   Beginning in the 1994-1995 academic 
 54.9   year, the legislature intends to adopt 
 54.10  the private college cap of $6,814 
 54.11  recommended by the higher education 
 54.12  coordinating board and the department 
 54.13  of finance, pending alternative 
 54.14  recommendations of the financial aid 
 54.15  task force. 
 54.16  The higher education coordinating board 
 54.17  shall meet with the nursing community 
 54.18  in order to evaluate consolidating all 
 54.19  nursing grant programs administered by 
 54.20  the state, and report its findings to 
 54.21  the legislature by February 1, 1994.  
 54.22  This appropriation includes $250,000 
 54.23  each year for grants to nursing 
 54.24  programs to recruit persons of color 
 54.25  and to provide grants to nursing 
 54.26  students who are persons of color.  Of 
 54.27  this amount, $100,000 each year is for 
 54.28  recruitment and retention of students 
 54.29  of color in nursing programs leading to 
 54.30  licensure as a registered nurse.  Other 
 54.31  than the grants to students, all grants 
 54.32  shall be matched with at least the same 
 54.33  amount from grantee sources for 
 54.34  nonstate money. 
 54.35  This appropriation includes money to 
 54.36  begin postservice benefit accounts for 
 54.37  the youthworks program.  By October 1, 
 54.38  1993, the higher education coordinating 
 54.39  board, in consultation with the 
 54.40  youthworks task force, shall design a 
 54.41  plan to administer the postservice 
 54.42  benefit accounts of the youthworks 
 54.43  program.  The plan shall include 
 54.44  strategies to augment the appropriation 
 54.45  by maximizing federal and other 
 54.46  nonstate money.  The board shall report 
 54.47  the plan to the education committees of 
 54.48  the legislature by October 1, 1993.  In 
 54.49  the event that federal money becomes 
 54.50  available for post-secondary 
 54.51  initiatives involving community 
 54.52  service, the board may use this money 
 54.53  for any state contribution required. 
 54.54     Sec. 56.  [INITIAL COUNCIL.] 
 54.55     Notwithstanding section 10, the governor shall appoint the 
 54.56  members to the higher education services council by July 1, 
 54.57  1995.  One-third of the appointments shall be for two years, 
 54.58  one-third for four years, and one-third for six years. 
 54.59     Sec. 57.  [TRANSFER OF PROGRAMS.] 
 55.1      The responsibilities of the higher education coordinating 
 55.2   board, or its successor, confirmed and specified under Minnesota 
 55.3   Statutes, sections 136A.1355 to 136A.1358, are transferred under 
 55.4   Minnesota Statutes, section 15.039, to the Minnesota department 
 55.5   of health. 
 55.6      Sec. 58.  [TRANSFER.] 
 55.7      On July 1, 1995, the higher education coordinating board is 
 55.8   abolished and the remaining duties and responsibilities of the 
 55.9   board are transferred to the higher education services office as 
 55.10  provided in Minnesota Statutes, section 15.039, subdivisions 1 
 55.11  to 6.  Positions in the higher education coordinating board are 
 55.12  transferred under Minnesota Statutes, section 15.039, 
 55.13  subdivision 7, except that the board shall determine the 
 55.14  incumbents to be transferred, so long as the number of 
 55.15  incumbents transferred is equal to the number of positions 
 55.16  sufficient to carry out the duties being transferred. 
 55.17     All obligations related to bond covenants entered into 
 55.18  under Minnesota Statutes, sections 136A.15 to 136A.1702 are 
 55.19  transferred to the higher education services office under 
 55.20  Minnesota Statutes, section 15.039, subdivision 5a. 
 55.21     Sec. 59.  [INSTRUCTION TO REVISOR.] 
 55.22     Subdivision 1.  [RENUMBERING.] In the next edition of 
 55.23  Minnesota Statutes, the revisor of statutes shall renumber each 
 55.24  section specified in column A with the number set forth in 
 55.25  column B.  The revisor shall make necessary cross-reference 
 55.26  changes consistent with the renumbering. 
 55.27              Column A                 Column B
 55.28              136A.80                  135A.51
 55.29              136A.81                  135A.52
 55.30     Subd. 2.  [NAME CHANGE.] The revisor of statutes is 
 55.31  directed to change the term "higher education coordinating 
 55.32  board," and similar terms, to "higher education services office,"
 55.33  or similar terms.  The revisor must work with the house and 
 55.34  senate staff in making the changes.  The change must be made in 
 55.35  the next edition of Minnesota Statutes and Minnesota Rules. 
 55.36     Subd. 3.  [TRANSFER OF DUTIES.] In the next and subsequent 
 56.1   editions of Minnesota Statutes, the revisor shall change the 
 56.2   term "board" to "commissioner" in Minnesota Statutes, sections 
 56.3   136A.1355 to 136A.1358. 
 56.4      Sec. 60.  [REPEALER.] 
 56.5      Minnesota Statutes 1994, sections 135A.052, subdivisions 2 
 56.6   and 3; 135A.08, subdivision 3; 135A.09; 135A.11; 135A.12, 
 56.7   subdivision 5; 136A.02; 136A.04; 136A.041; 136A.125, subdivision 
 56.8   5; 136A.85; 136A.86; 136A.88; 136D.77; 136D.81, subdivision 2; 
 56.9   144.1488, subdivision 2; and 148.236; and Laws 1993, chapter 
 56.10  326, article 12, section 15, subdivision 2, are repealed. 
 56.11                             ARTICLE 4
 56.12                               MERGER
 56.13     Section 1.  Minnesota Statutes 1994, section 3.9741, 
 56.14  subdivision 2, is amended to read: 
 56.15     Subd. 2.  [POST-SECONDARY EDUCATION BOARD.] The legislative 
 56.16  auditor may enter into an interagency agreement with 
 56.17  the community college board, state university board, or the 
 56.18  state board of technical board of trustees of the Minnesota 
 56.19  state colleges and universities to conduct financial audits, in 
 56.20  addition to audits conducted under section 3.972, subdivision 
 56.21  2.  All payments received for audits requested by the board 
 56.22  shall be paid to the legislative auditor's account and need not 
 56.23  be deposited in the general fund. 
 56.24     Sec. 2.  Minnesota Statutes 1994, section 15.38, 
 56.25  subdivision 3, is amended to read: 
 56.26     Subd. 3.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
 56.27  state university board of trustees of the Minnesota state 
 56.28  colleges and universities may purchase insurance coverage as it 
 56.29  deems necessary and appropriate to protect buildings and 
 56.30  contents and for activities ancillary to the programs of the 
 56.31  state colleges and universities. 
 56.32                            DEFINITIONS 
 56.33     Sec. 3.  [136F.01] [DEFINITIONS.] 
 56.34     Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
 56.35  the following terms have the meanings given them.  
 56.36     Subd. 2.  [BOARD OR BOARD OF TRUSTEES.] "Board" or "board 
 57.1   of trustees" means the board of trustees of the Minnesota state 
 57.2   colleges and universities.  
 57.3      Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
 57.4   of the Minnesota state colleges and universities.  
 57.5      Subd. 4.  [STATE COLLEGES AND UNIVERSITIES.] "State 
 57.6   colleges and universities" means Minnesota state colleges and 
 57.7   universities governed by the board of trustees.  
 57.8      Subd. 5.  [STUDENT ACTIVITIES.] "Student activities" means 
 57.9   lectures, concerts, and other functions contributing to the 
 57.10  mental, moral, and cultural development of the student body and 
 57.11  community in which they live, athletic activities, including 
 57.12  intercollegiate contests, forensics, dramatics, and such other 
 57.13  activities of any nature as in the opinion of the board 
 57.14  contribute to the educational, cultural, or physical well being 
 57.15  of the student body.  
 57.16     Sec. 4.  [PRINCIPLES.] 
 57.17     Subdivision 1.  [FINDINGS; INTENT.] In merging the state 
 57.18  universities, community colleges, and technical colleges, the 
 57.19  legislature intends to seek ways to preserve access to quality 
 57.20  post-secondary education in Minnesota, to enhance the choices of 
 57.21  students who attend public colleges and universities, to improve 
 57.22  accountability, and to provide cost-effective programs.  
 57.23     Subd. 2.  [BOARD.] It is the role of the board to govern 
 57.24  the institutions for which it is responsible through policy and 
 57.25  decision making that are necessary to ensure that needs of the 
 57.26  state and the ability of institutions to provide education are 
 57.27  met.  Further, it is the role of the board to ensure that the 
 57.28  institutions are well managed and that the state's investment is 
 57.29  enhanced by choosing a chancellor, presidents, and other 
 57.30  employees who will provide leadership to the system, college, or 
 57.31  university, and by holding them accountable.  Finally, it is the 
 57.32  role of the board to balance the competing needs of the colleges 
 57.33  and universities, determine the priorities among those needs, 
 57.34  and coordinate institutional actions to ensure that the state's 
 57.35  interests are well served, while preserving and enhancing the 
 57.36  local identities and initiatives of the colleges and 
 58.1   universities.  
 58.2      Subd. 3.  [SYSTEM OFFICE.] It is the role of the chancellor 
 58.3   and the system office to provide general management of the 
 58.4   colleges and universities necessary to protect the state's 
 58.5   investment, particularly in the areas of financial 
 58.6   accountability and programmatic offerings.  It is the further 
 58.7   role of the system office to carry out the policies of the board 
 58.8   while providing information and advice on development of those 
 58.9   policies.  Finally, it is the role of the system office to 
 58.10  provide the leadership and services the campuses need to provide 
 58.11  quality education in an efficient manner and to hold the 
 58.12  campuses accountable for their actions. 
 58.13     Subd. 4.  [COLLEGES AND UNIVERSITIES.] It is the role of 
 58.14  the colleges and universities to provide quality education and 
 58.15  services to meet the needs of students and of the state.  In so 
 58.16  doing, it is the role of the colleges and universities to 
 58.17  provide the day-to-day management and decision making that 
 58.18  affect the education they deliver.  It is the role of the 
 58.19  college and university presidents to provide leadership on the 
 58.20  campuses, while promoting a collegial environment that involves 
 58.21  faculty, staff, and students in decision making.  
 58.22     Subd. 5.  [BOARD ACTION.] In accordance with the principles 
 58.23  in section 136F.011, the board shall review the proposed 
 58.24  structure of the system office with the objective of further 
 58.25  reducing or eliminating those functions that are unnecessary.  
 58.26  Savings that occur shall be redirected to support instruction on 
 58.27  the campuses. 
 58.28                         BOARD OF TRUSTEES 
 58.29     Sec. 5.  Minnesota Statutes 1994, section 136E.01, 
 58.30  subdivision 1, is amended to read: 
 58.31     Subdivision 1.  [MEMBERSHIP.] The higher education board, 
 58.32  referred to in sections 136E.01 to 136E.05 as "the board," 
 58.33  consists of 15 members appointed by the governor with the advice 
 58.34  and consent of the senate.  At least one member of the board 
 58.35  must be a resident of each congressional district.  Three 
 58.36  members must be students who are enrolled at least half-time in 
 59.1   a degree, diploma, or certificate program or have graduated from 
 59.2   an institution governed by the board within one year of the date 
 59.3   of appointment.  The student members shall include:  one member 
 59.4   from a community college, one member from a state university, 
 59.5   and one member from a technical college.  The remaining members 
 59.6   must be appointed to represent the state at large.  
 59.7      Sec. 6.  Minnesota Statutes 1994, section 136E.02, 
 59.8   subdivision 1, is amended to read: 
 59.9      Subdivision 1.  [PURPOSE.] A higher education candidate 
 59.10  advisory council for the board candidate advisory council of 
 59.11  trustees of the Minnesota state colleges and universities shall 
 59.12  assist the governor in determining criteria for, and identifying 
 59.13  and recruiting qualified candidates for, nonstudent membership 
 59.14  on the higher education board. 
 59.15     Sec. 7.  Minnesota Statutes 1994, section 136E.02, 
 59.16  subdivision 3, is amended to read: 
 59.17     Subd. 3.  [DUTIES.] The advisory council shall: 
 59.18     (1) develop a statement of the selection criteria to be 
 59.19  applied and a description of the responsibilities and duties of 
 59.20  a member of the higher education board and shall distribute this 
 59.21  to potential candidates; and 
 59.22     (2) for each position on the board, identify and recruit 
 59.23  qualified candidates for the board, based on the background and 
 59.24  experience of the candidates, and their potential for 
 59.25  discharging the responsibilities of a member of the board. 
 59.26     Sec. 8.  Minnesota Statutes 1994, section 136E.02, 
 59.27  subdivision 4, is amended to read: 
 59.28     Subd. 4.  [RECOMMENDATIONS.] The advisory council shall 
 59.29  recommend at least two and not more than four candidates for 
 59.30  each seat.  By January 2 April 15 of each even-numbered year, 
 59.31  the advisory council shall submit its recommendations to the 
 59.32  governor.  The governor is not bound by these recommendations. 
 59.33     Sec. 9.  Minnesota Statutes 1994, section 136E.021, 
 59.34  subdivision 2, is amended to read: 
 59.35     Subd. 2.  [CRITERIA.] After consulting with the higher 
 59.36  education board of trustees candidate advisory council, the 
 60.1   student associations shall jointly develop a statement of the 
 60.2   selection criteria to be applied to potential candidates. 
 60.3      Sec. 10.  Minnesota Statutes 1994, section 136E.04, 
 60.4   subdivision 1, is amended to read: 
 60.5      Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
 60.6   manage, supervise, and control possess all powers necessary to 
 60.7   govern the technical state colleges, community colleges, and 
 60.8   state universities and all related property.  It Those powers 
 60.9   shall include, but are not limited to, those enumerated in this 
 60.10  section.  The board shall prescribe courses of study and 
 60.11  conditions of admission, prepare and confer diplomas set tuition 
 60.12  and fees, prescribe requirements for completion of programs, 
 60.13  approve the awarding of appropriate certificates, diplomas, and 
 60.14  degrees, and adopt suitable policies for the institutions it 
 60.15  manages governs.  Sections 14.01 to 14.47 do not apply to 
 60.16  policies and procedures of the board.  
 60.17     Sec. 11.  Minnesota Statutes 1994, section 136E.04, is 
 60.18  amended by adding a subdivision to read: 
 60.19     Subd. 1b.  [GOVERNANCE AUTHORITY.] The board shall have the 
 60.20  authority needed to operate and govern the state colleges and 
 60.21  universities unless otherwise directed or limited by law. 
 60.22     Sec. 12.  Minnesota Statutes 1994, section 136E.04, is 
 60.23  amended by adding a subdivision to read: 
 60.24     Subd. 4a.  [OFFICE LOCATION.] Notwithstanding chapter 16B, 
 60.25  the board may select the location for its central office. 
 60.26     Sec. 13.  [136E.041] [CHANCELLOR.] 
 60.27     The board shall appoint a chancellor who shall serve in the 
 60.28  unclassified service.  The chancellor shall possess powers and 
 60.29  perform duties as delegated by the board.  The board shall set 
 60.30  the salary of the chancellor according to section 15A.081, 
 60.31  subdivision 7b. 
 60.32                            DESIGNATION 
 60.33     Sec. 14.  [136F.10] [DESIGNATION.] 
 60.34     The following are designated as the Minnesota state 
 60.35  colleges and universities:  the community colleges located at 
 60.36  Austin, Bloomington, Brainerd, Brooklyn Park, Cloquet, Coon 
 61.1   Rapids, Ely, Fergus Falls, Grand Rapids, Hibbing, International 
 61.2   Falls, Inver Grove Heights, Minneapolis, Rochester, Thief River 
 61.3   Falls, Virginia, White Bear Lake, Willmar, and Worthington; the 
 61.4   community college centers located at Cambridge and Duluth; the 
 61.5   state universities located at Bemidji, Mankato, Marshall, 
 61.6   Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan 
 61.7   area; and the technical colleges located at Alexandria, Albert 
 61.8   Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn Park, Canby, 
 61.9   Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, 
 61.10  Faribault, Granite Falls, Hibbing, Hutchinson, Jackson, 
 61.11  Minneapolis, Mahtomedi, Moorhead, North Mankato, Pine City, 
 61.12  Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul, 
 61.13  Staples, Thief River Falls, Wadena, Willmar, and Winona.  
 61.14     Sec. 15.  [136F.12] [FOND DU LAC CAMPUS.] 
 61.15     The Fond du Lac campus has a unique mission among two-year 
 61.16  colleges to serve the lower division general education needs in 
 61.17  Carlton and south St. Louis counties, and the education needs of 
 61.18  American Indians throughout the state and especially in northern 
 61.19  Minnesota.  Accordingly, while the college is governed by the 
 61.20  board of trustees, its governance is accomplished in conjunction 
 61.21  with the board of directors of Fond du Lac tribal college.  By 
 61.22  July 1, 1995, the board of trustees and the board of directors 
 61.23  of Fond du Lac tribal college shall implement the mechanisms 
 61.24  necessary to accomplish the sharing of authority while ensuring 
 61.25  accountability for college actions.  The mechanisms shall 
 61.26  supersede any previous arrangement, agreement, or memorandum of 
 61.27  understanding. 
 61.28     Sec. 16.  [136F.14] [CAMPUS MERGER OR REORGANIZATION.] 
 61.29     The board may merge or reorganize campuses or centers for 
 61.30  the purpose of increased efficiency, use of personnel, placement 
 61.31  of programs, student access, and other needs as determined by 
 61.32  the board.  The board shall report its action to the legislature.
 61.33     Sec. 17.  [136F.16] [CAMPUS ESTABLISHMENT.] 
 61.34     Subdivision 1.  [NEW STATE COLLEGES AND UNIVERSITIES.] A 
 61.35  new state college or university shall be established only by 
 61.36  specific legislation.  For the purposes of this subdivision, 
 62.1   campuses or centers that are merged or reorganized under section 
 62.2   136F.14 are not new state colleges or universities. 
 62.3      Subd. 2.  [CAMPUS OR CENTER SITE.] The board may determine 
 62.4   the exact location and site for each campus or center. 
 62.5      Subd. 3.  [OFF-CAMPUS SITES.] The board shall not establish 
 62.6   off-campus centers or other permanent sites to provide academic 
 62.7   programs, courses, or student services without authorizing 
 62.8   legislation.  For the purposes of this subdivision, the campus 
 62.9   of Metropolitan State University is the seven-county 
 62.10  metropolitan area.  
 62.11     Sec. 18.  [136F.18] [CAMPUS CLOSING.] 
 62.12     The board may close a campus or center under its 
 62.13  jurisdiction.  Prior to closing a campus or center, the board 
 62.14  shall hold a public hearing on the issue in the area which would 
 62.15  be affected by the closing.  At the hearing affected persons 
 62.16  shall have an opportunity to present testimony.  The board shall 
 62.17  give notice of this hearing by publishing notice in the State 
 62.18  Register and in a newspaper of general circulation in the 
 62.19  affected area at least 30 days before the scheduled hearing.  
 62.20                              STUDENTS 
 62.21     Sec. 19.  [136F.21] [STUDENT HEALTH.] 
 62.22     Subdivision 1.  [HEALTH SERVICE.] The board shall offer 
 62.23  health services for students at each state university and may 
 62.24  offer health services for students at each state college.  The 
 62.25  health services may be offered either on campus or in the nearby 
 62.26  community.  The board may charge each student a health service 
 62.27  fee set by the board.  The fees shall be used to maintain the 
 62.28  health service and equip and construct facilities.  The fee may 
 62.29  be used to contract for health, medical, and hospitalization 
 62.30  insurance for students.  The fees shall be deposited in an 
 62.31  activity fund and are annually appropriated to the board for the 
 62.32  purposes of this subdivision.  Each state college and university 
 62.33  shall provide an annual financial accounting of the health 
 62.34  service money to the board.  
 62.35     Subd. 2.  [HEALTH BENEFITS.] The board may contract for 
 62.36  hospital benefits coverage and medical benefits coverage for 
 63.1   students in the state colleges and universities in the same 
 63.2   manner as authorized by section 43A.23 for state employees.  
 63.3      Sec. 20.  Minnesota Statutes 1994, section 136E.525, 
 63.4   subdivision 1, is amended to read: 
 63.5      Subdivision 1.  [STATEWIDE.] The board shall recognize one 
 63.6   statewide student association for the community colleges, one 
 63.7   for the state universities, and one for the technical colleges.  
 63.8   Each statewide campus student association shall be affiliated 
 63.9   with its campus statewide student associations but association 
 63.10  and all students enrolled on those campuses shall be members of 
 63.11  their respective statewide association. 
 63.12     Sec. 21.  Minnesota Statutes 1994, section 136E.525, 
 63.13  subdivision 2, is amended to read: 
 63.14     Subd. 2.  [FEES.] Each statewide association shall set its 
 63.15  fees to be collected by the board and shall submit any changes 
 63.16  in its fees to the board for review.  The board may revise or 
 63.17  reject the fee change.  Fees must be collected by each community 
 63.18  state college, state and university, and technical college and 
 63.19  shall be credited to each association's account to be spent as 
 63.20  determined by that association. 
 63.21     Sec. 22.  [136F.22] [STUDENT ASSOCIATIONS; PURCHASING 
 63.22  AUTHORITY.] 
 63.23     Notwithstanding chapter 16A or 16B, the student 
 63.24  associations recognized by the board of trustees of the 
 63.25  Minnesota state colleges and universities may purchase goods or 
 63.26  materials through state purchasing authority for the ordinary 
 63.27  day-to-day operations of the associations.  The student 
 63.28  associations must be nonprofit 501(c)(3) organizations in order 
 63.29  to qualify for this authority.  The department of administration 
 63.30  may require that the purchase documents be approved by 
 63.31  appropriate officials in the board's central office. 
 63.32     Sec. 23.  [136F.24] [LEGAL COUNSELING AND SERVICE PROGRAM; 
 63.33  FUNDING.] 
 63.34     Notwithstanding section 8.06, or any other law or rule to 
 63.35  the contrary, the official campus student association at each 
 63.36  state college or university may fund a program to provide legal 
 64.1   counseling and services to students of the state college or 
 64.2   university.  The money shall be from an account of the state 
 64.3   college and university activity funds allocated to the student 
 64.4   associations or other money assigned to them.  
 64.5      Sec. 24.  [136F.25] [ABSENCE FOR CHEMICAL ABUSE TREATMENT.] 
 64.6      If a student is absent from a state college or university 
 64.7   to participate in a chemical abuse treatment program licensed by 
 64.8   the state, the student, upon request, shall remain on the roll 
 64.9   in the educational program of the state college or university in 
 64.10  which the student is enrolled, according to policies adopted by 
 64.11  the board. 
 64.12     Sec. 25.  [136F.28] [SOUTHWEST ASIA VETERANS; TECHNICAL 
 64.13  COLLEGES.] 
 64.14     Subdivision 1.  [GRANTS.] A Southwest Asia veteran who 
 64.15  enrolls in a technical college program, and who is a Minnesota 
 64.16  resident whose entire education has not included completion of 
 64.17  at least one technical college program is eligible for a state 
 64.18  grant of $500 per year if the veteran has GI Montgomery bill 
 64.19  benefits, or $1,000 per year if the veteran does not have GI 
 64.20  Montgomery bill benefits, until the veteran has completed the 
 64.21  lesser of (1) 115 credits in a technical college program, or (2) 
 64.22  one technical college program.  The grant is based on full-time 
 64.23  attendance and shall be prorated if the student is attending 
 64.24  less than full time.  To be eligible for the tuition relief, a 
 64.25  veteran who is discharged before July 1, 1993, must enroll in a 
 64.26  technical college by July 1, 1995, and a veteran who is 
 64.27  discharged on or after July 1, 1993, must enroll in a technical 
 64.28  college within two years of the date of discharge.  All veterans 
 64.29  enrolled under this program must maintain a minimum of six 
 64.30  credits per quarter.  Total grants may not exceed the available 
 64.31  appropriation.  
 64.32     Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
 64.33  "Southwest Asia veteran"  means a person who:  
 64.34     (1) served in the active military service in any branch of 
 64.35  the armed forces of the United States any time between August 1, 
 64.36  1990 and February 27, 1992; 
 65.1      (2) became eligible for the Southwest Asia Service Medal as 
 65.2   a result of the service; 
 65.3      (3) was a Minnesota resident at the time of induction into 
 65.4   the armed forces and for the one year immediately preceding 
 65.5   induction; and 
 65.6      (4) has been separated or discharged from active military 
 65.7   service under conditions other than dishonorable.  
 65.8                              CURRICULUM 
 65.9      Sec. 26.  [136F.30] [COURSES AND PROGRAMS.] 
 65.10     The board shall prescribe the courses of study, including 
 65.11  graduate and undergraduate academic programs, training in 
 65.12  professional, semiprofessional, and technical fields, and adult 
 65.13  education.  The board shall avoid duplicate program offerings.  
 65.14  The board shall place a high priority on ensuring the 
 65.15  transferability of credit. 
 65.16     Sec. 27.  [136F.32] [DEGREES; DIPLOMAS; CERTIFICATES.] 
 65.17     The board may approve awarding of appropriate certificates, 
 65.18  diplomas, or degrees to persons who complete a prescribed 
 65.19  curriculum. 
 65.20     Sec. 28.  [136F.36] [TECHNICAL COLLEGE CARPENTRY PROGRAM 
 65.21  CONSTRUCTION AUTHORITY.] 
 65.22     Subdivision 1.  [AUTHORITY TO ACQUIRE, DEVELOP, AND SELL 
 65.23  REAL PROPERTY FOR INSTRUCTIONAL PURPOSES.] For the purpose of 
 65.24  instructional construction by technical colleges, the board may 
 65.25  purchase or otherwise acquire real property that it does not 
 65.26  intend to use as a permanent educational site.  The board may, 
 65.27  upon the terms and conditions it sets, develop and sell real 
 65.28  property acquired under this section.  Sale shall be for fair 
 65.29  market value.  Where real property acquired under this section 
 65.30  cannot be sold for fair market value, the board may lease the 
 65.31  real property under the terms and conditions it sets.  The board 
 65.32  may also contract for the use of real property it does not own.  
 65.33  Where the board makes improvements to real property it does not 
 65.34  own, the landowner shall compensate the board for the fair 
 65.35  market value of the board's contribution to the improvements.  
 65.36  No other authorizing legislation or legislative approval is 
 66.1   required for an acquisition, improvement, or sale under this 
 66.2   section.  Proceeds from the sale, lease, or improvement of real 
 66.3   property under this section are appropriated to the board. 
 66.4      Subd. 2.  [EXEMPTIONS.] The sale requirements of chapters 
 66.5   92 and 94 do not apply to this section, nor do the leasing 
 66.6   provisions of section 16B.24, nor do the construction 
 66.7   supervision and control provisions of sections 16B.30 to 
 66.8   16B.335.  The board will normally competitively bid contracts 
 66.9   related to instructional construction but, notwithstanding the 
 66.10  provisions of sections 16B.07 to 16B.09, may negotiate contracts 
 66.11  without competitive bidding where it deems appropriate. 
 66.12     Subd. 3.  [WARRANTIES.] The board may, in its discretion, 
 66.13  offer the warranties contained in chapter 327A. 
 66.14                          HUMAN RESOURCES 
 66.15     Sec. 29.  [136F.40] [APPOINTMENT OF PERSONNEL.] 
 66.16     The board shall appoint all presidents, teachers, and other 
 66.17  necessary employees and shall prescribe their duties consistent 
 66.18  with chapter 43A.  Salaries and benefits of employees must be 
 66.19  determined according to chapters 43A and 179A.  
 66.20     Sec. 30.  Minnesota Statutes 1994, section 136E.31, is 
 66.21  amended to read: 
 66.22     136E.31 [ASSIGNMENT TO BARGAINING UNITS.] 
 66.23     Actions by the higher education board to merge or 
 66.24  redesignate institutions or to promote collaborative efforts 
 66.25  between institutions must not unilaterally change faculty 
 66.26  assignments to bargaining units provided in section 179A.10, 
 66.27  subdivision 2. 
 66.28     Sec. 31.  [136F.42] [EXTENDED LEAVES OF ABSENCE.] 
 66.29     Subdivision 1.  [DEFINITION.] As used in this section, 
 66.30  "teacher" means a person on the instructional or administrative 
 66.31  staff of the state colleges and universities who is a member of 
 66.32  the teachers retirement association under chapter 354 or who is 
 66.33  covered by the unclassified employees plan under chapter 352D or 
 66.34  individual retirement account plan under chapter 354B.  It shall 
 66.35  not include a chancellor, deputy chancellor, or vice-chancellor. 
 66.36     Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
 67.1   extended leave of absence without salary to a full-time teacher 
 67.2   who has been employed by the board for at least five years and 
 67.3   has at least ten years of allowable service as defined in 
 67.4   section 354.05, subdivision 13.  The maximum duration of an 
 67.5   extended leave of absence pursuant to this section shall be 
 67.6   determined by mutual agreement of the board and the teacher at 
 67.7   the time the leave is granted and shall be at least three but no 
 67.8   more than five years.  An extended leave of absence under this 
 67.9   section shall be taken by mutual consent of the board and the 
 67.10  teacher.  No teacher may receive more than one leave of absence 
 67.11  under this section.  
 67.12     Subd. 3.  [REINSTATEMENT.] A teacher on an extended leave 
 67.13  of absence under this section shall have the right to be 
 67.14  reinstated to the same position or a similar position within the 
 67.15  department or program from which the leave was granted at the 
 67.16  beginning of the school year which immediately follows a year of 
 67.17  extended leave of absence, unless the teacher is discharged or 
 67.18  placed on retrenchment or on layoff or the teacher's contract is 
 67.19  terminated while the teacher is on the extended leave.  The 
 67.20  board shall not be obligated to reinstate a teacher who is on an 
 67.21  extended leave of absence under this section unless the teacher 
 67.22  advises the board of an intention to return before February 1 in 
 67.23  the school year preceding the school year in which the teacher 
 67.24  wishes to return.  
 67.25     Subd. 4.  [SENIORITY RIGHTS.] A teacher who is reinstated 
 67.26  to the same or similar position after an extended leave under 
 67.27  this section shall not lose tenure or credit for previous 
 67.28  seniority in the employing state college or university.  A 
 67.29  teacher shall not accrue seniority credit during the time of a 
 67.30  leave of absence under this section, except that a teacher at a 
 67.31  state college or university may accrue seniority credit during 
 67.32  the leave, consistent with the conditions of the collective 
 67.33  bargaining agreement.  
 67.34     Subd. 5.  [SALARY.] The years spent by a teacher on an 
 67.35  extended leave of absence under this section shall not be 
 67.36  included in the determination of the teacher's salary upon 
 68.1   reinstatement to the same or similar position by the board.  The 
 68.2   credits earned by a teacher on an extended leave of absence 
 68.3   under this section shall not be included in the determination of 
 68.4   the teacher's salary upon reinstatement to the same or similar 
 68.5   position by the board for a period of time equal to the time of 
 68.6   the extended leave of absence.  
 68.7      Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
 68.8   a leave of absence which is not subject to the provisions of 
 68.9   this section and section 354.094. 
 68.10     Sec. 32.  [136F.43] [ANNUITIES.] 
 68.11     Subdivision 1.  [PURCHASE.] At the request of an employee, 
 68.12  the board may negotiate and purchase an individual annuity 
 68.13  contract for an employee for retirement or other purposes from a 
 68.14  company licensed to do business in Minnesota, and may allocate a 
 68.15  portion of the compensation otherwise payable to the employee as 
 68.16  salary for the purpose of paying the entire premium due or to 
 68.17  become due under the contract. The allocation shall be made in a 
 68.18  manner that will qualify the annuity premiums, or a portion 
 68.19  thereof, for the benefit afforded under section 403(b) of the 
 68.20  current federal Internal Revenue Code or any equivalent 
 68.21  provision of subsequent federal income tax law. The employee 
 68.22  shall own the contract and the employee's rights thereunder 
 68.23  shall be nonforfeitable except for failure to pay premiums.  
 68.24     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
 68.25  shall be deposited in an annuity account established by the 
 68.26  board.  Payment of annuity premiums shall be made when due or in 
 68.27  accordance with the salary agreement entered into between the 
 68.28  employee and the board.  The money in the annuity account is not 
 68.29  subject to the budget, allotment, and incumbrance system 
 68.30  provided for in chapter 16A.  
 68.31     Sec. 33.  [136F.44] [NONPROFIT FOUNDATION PAYROLL 
 68.32  DEDUCTION.] 
 68.33     Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
 68.34  finance, upon the written request of an employee of the board, 
 68.35  may deduct from an employee's salary or wages the amount 
 68.36  requested for payment to a nonprofit state college or university 
 69.1   foundation meeting the requirements in subdivision 2.  The 
 69.2   commissioner shall issue a warrant for the deducted amount to 
 69.3   the nonprofit foundation.  The Penny fellowship of the Minnesota 
 69.4   state university student association shall be considered a 
 69.5   nonprofit state college and university foundation for purposes 
 69.6   of this section. 
 69.7      Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
 69.8   state college or university foundation that desires to receive 
 69.9   contributions through payroll deductions shall apply to the 
 69.10  board for approval to participate in the payroll deduction 
 69.11  plan.  The board may approve the application for participation 
 69.12  if the foundation:  
 69.13     (1) is tax exempt under section 501(c)3 of the Internal 
 69.14  Revenue Code of 1986, as amended; 
 69.15     (2) qualifies for tax deductible contributions under 
 69.16  section 170 of the Internal Revenue Code of 1986, as amended; 
 69.17     (3) secures funding solely for distribution to a state 
 69.18  college or university or for distribution to students in the 
 69.19  form of scholarships; and 
 69.20     (4) has been incorporated according to chapter 317A for at 
 69.21  least one calendar year before the date it applies to the board 
 69.22  for approval.  
 69.23     Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
 69.24  deductions authorized in subdivision 1 may not interfere with, 
 69.25  require a modification of, nor be conducted during the period of 
 69.26  a payroll deduction fund drive for employees authorized by 
 69.27  section 309.501. 
 69.28     Sec. 34.  [136F.45] [EMPLOYER-PAID HEALTH INSURANCE.] 
 69.29     (a) This section applies to a person who:  
 69.30     (1) retires from the state university system, the technical 
 69.31  college system, or the community college system, or from a 
 69.32  successor system employing state university, technical college, 
 69.33  or community college faculty, with at least ten years of service 
 69.34  credit in the system from which the person retires; 
 69.35     (2) was employed on a full-time basis immediately preceding 
 69.36  retirement as a state university, technical college, or 
 70.1   community college faculty member; 
 70.2      (3) begins drawing an annuity from the teachers retirement 
 70.3   association or from the first class cities teachers retirement 
 70.4   funds; and 
 70.5      (4) returns to work on not less than a one-third time basis 
 70.6   and not more than a two-thirds time basis in the system from 
 70.7   which the person retired under an agreement in which the person 
 70.8   may not earn a salary of more than $35,000 in a calendar year 
 70.9   from employment in the system from which the person retired.  
 70.10     (b) Initial participation, the amount of time worked, and 
 70.11  the duration of participation under this section must be 
 70.12  mutually agreed upon by the employer and the employee.  The 
 70.13  employer may require up to one-year notice of intent to 
 70.14  participate in the program as a condition of participation under 
 70.15  this section.  The employer shall determine the time of year the 
 70.16  employee shall work.  
 70.17     (c) For a person eligible under paragraphs (a) and (b), the 
 70.18  employing board shall make the same employer contribution for 
 70.19  hospital, medical, and dental benefits as would be made if the 
 70.20  person were employed full time.  
 70.21     (d) For work under paragraph (a), a person must receive a 
 70.22  percentage of the person's salary at the time of retirement that 
 70.23  is equal to the percentage of time the person works compared to 
 70.24  full-time work.  
 70.25     (e) If a collective bargaining agreement covering a person 
 70.26  provides for an early retirement incentive that is based on age, 
 70.27  the incentive provided to the person must be based on the 
 70.28  person's age at the time employment under this section ends.  
 70.29  However, the salary used to determine the amount of the 
 70.30  incentive must be the salary that would have been paid if the 
 70.31  person had been employed full time for the year immediately 
 70.32  preceding the time employment under this section ends.  
 70.33     Sec. 35.  [136F.495] [LICENSURE.] 
 70.34     The board may adopt policies for licensure of teaching 
 70.35  personnel in technical colleges and may establish a processing 
 70.36  fee for the issuance, renewal, or extension of a license. 
 71.1                            ADMINISTRATION 
 71.2      Sec. 36.  [136F.50] [COOPERATION OR PROMOTION OF A STATE 
 71.3   COLLEGE OR UNIVERSITY.] 
 71.4      The board may cooperate by contractual arrangement or 
 71.5   otherwise with responsible persons, firms, corporations, 
 71.6   associations, or governmental agencies to promote short courses, 
 71.7   research, and other programs and activities in the state 
 71.8   colleges and universities as in the judgment of the board 
 71.9   contribute to the development of the state colleges and 
 71.10  universities and the welfare of their students. 
 71.11     Sec. 37.  Minnesota Statutes 1994, section 136E.05, is 
 71.12  amended to read: 
 71.13     136E.05 [LOCAL ADVISORY COMMITTEES.] 
 71.14     Subdivision 1.  [APPOINTMENT.] The president, with the 
 71.15  approval of the chancellor and the board, may appoint a local 
 71.16  advisory committee for each campus.  Committee members must be 
 71.17  qualified people who have knowledge of and interest in the 
 71.18  campus.  The board shall define the role and authority of the 
 71.19  advisory committees and establish procedures for the 
 71.20  appointment, terms, and termination of members.  The president 
 71.21  or an appointee of the president shall regularly meet and 
 71.22  consult with the local advisory committee. 
 71.23     Subd. 2.  [COMPENSATION.] Advisory committee members shall 
 71.24  serve without compensation and without reimbursement for 
 71.25  expenses.  
 71.26     Sec. 38.  [136F.54] [PARKING AND TRAFFIC REGULATION.] 
 71.27     Subdivision 1.  [BOARD POWER.] Notwithstanding section 
 71.28  169.966, the board may authorize a state college or university 
 71.29  to adopt and enforce policies, regulations, or ordinances for 
 71.30  the regulation of traffic and parking in parking facilities and 
 71.31  on private roads and roadways situated on property owned, 
 71.32  leased, occupied, or operated by the state college or university.
 71.33     Subd. 2.  [FINES; FEES.] A state college or university may 
 71.34  collect a fine and a towing fee for a violation.  Money 
 71.35  collected under this section by a state college or university is 
 71.36  annually appropriated to the state college or university for 
 72.1   parking lot maintenance, improvement, and policy enforcement. 
 72.2      Subd. 3.  [DISPUTES.] A state college or university, with 
 72.3   the approval of the board, shall establish procedures to resolve 
 72.4   a dispute arising from enforcement of a policy. 
 72.5      Subd. 4.  [PROCEDURE.] Chapter 14 does not apply to this 
 72.6   section.  
 72.7      Subd. 5.  [ENFORCEMENT.] Every sheriff, constable, police 
 72.8   officer, or other peace officer shall have authority to enforce 
 72.9   all policies and ordinances adopted pursuant to this section and 
 72.10  shall have authority to arrest and prosecute offenders for 
 72.11  violations of law.  
 72.12     Sec. 39.  [136F.56] [STUDENT HOUSING MANAGEMENT.] 
 72.13     The board may contract with student housing facility owners 
 72.14  or on-site management firms to assist in the operation, control, 
 72.15  and management of the facility. 
 72.16     Sec. 40.  [136F.58] [STATE COUNCIL ON VOCATIONAL TECHNICAL 
 72.17  EDUCATION.] 
 72.18     Subdivision 1.  [STATE AGENCY PURPOSE.] The state council 
 72.19  on vocational technical education, formerly known as the 
 72.20  Minnesota state advisory council for vocational education, is a 
 72.21  state agency in the executive branch.  Its purpose is to 
 72.22  implement section 112 of the Carl D. Perkins Vocational 
 72.23  Education Act of 1984, United States Code, title 20, section 
 72.24  2322, and other purposes necessary to improve vocational 
 72.25  technical education.  
 72.26     Subd. 2.  [MEMBERS; TERMS.] The governor shall appoint the 
 72.27  members of the council according to United States Code, title 
 72.28  20, section 2322.  Except as otherwise provided by that act, 
 72.29  members are governed by section 15.0575.  
 72.30     Subd. 3.  [OFFICES.] The commissioner of administration 
 72.31  shall provide the council with suitable office space, 
 72.32  furnishings, and equipment.  
 72.33     Subd. 4.  [FUNDING.] Federal, state, or private money 
 72.34  received by the council must be deposited in the state treasury 
 72.35  and credited to a special account for the council.  The council 
 72.36  has sole authority to spend its money.  The money may not be 
 73.1   diverted or reprogrammed by any agency or person to any other 
 73.2   purpose.  Unless restricted by federal or other state law, the 
 73.3   council may carry forward any unexpended balance from one fiscal 
 73.4   year to the next and from one fiscal biennium to the next.  
 73.5      Subd. 5.  [SERVICE CONTRACTS.] The council may contract for 
 73.6   the services it needs to carry out its function.  The council 
 73.7   may also contract to provide services to other organizations. 
 73.8   The contracts are not subject to the contract approval 
 73.9   procedures of the commissioner of administration or of chapter 
 73.10  16B.  
 73.11     Subd. 6.  [FISCAL AGENT.] The board shall act as fiscal 
 73.12  agent for the council and provide other support services 
 73.13  necessary for disbursements, accounting, auditing, and reporting.
 73.14     Subd. 7.  [STAFF.] The council may employ an executive 
 73.15  director and other staff needed to carry out its duties.  The 
 73.16  executive director shall serve in the unclassified service and 
 73.17  may be paid an allowance not to exceed $2,000 annually for 
 73.18  miscellaneous expenses in connection with duties of the office. 
 73.19  The council may contract with professional, technical, and 
 73.20  clerical consultants and interns needed to carry out its 
 73.21  functions. 
 73.22     Sec. 41.  [136F.591] [BOOKSTORES.] 
 73.23     The board may permit a state college or university to 
 73.24  conduct a bookstore in a state college or university building, 
 73.25  or may allocate space in a state college or university building 
 73.26  and permit a person or corporation to conduct a bookstore 
 73.27  therein without rent at the board's pleasure and on such 
 73.28  conditions as the board may impose.  The board may provide 
 73.29  insurance, at no cost to the state, for the inventory of a 
 73.30  bookstore a state college or university conducts in its building.
 73.31                             FACILITIES 
 73.32     Sec. 42.  [136F.60] [COLLEGE AND UNIVERSITY SITES; 
 73.33  ACQUISITION.] 
 73.34     Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
 73.35  UNIVERSITIES.] The board may purchase property adjacent to or in 
 73.36  the vicinity of the campuses as necessary for the development of 
 74.1   a state university.  Before taking action, the board shall 
 74.2   consult with the chairs of the senate finance committee and the 
 74.3   house ways and means committee about the proposed action.  The 
 74.4   board shall explain the need to acquire property, specify the 
 74.5   property to be acquired, and indicate the source and amount of 
 74.6   money needed for the acquisition.  The amount needed may be 
 74.7   spent from sums previously appropriated for purposes of the 
 74.8   state colleges and universities, including, but not limited to, 
 74.9   general fund appropriations for instructional or 
 74.10  noninstructional expenditures, general fund appropriations 
 74.11  carried forward, or state college and university activity fund 
 74.12  appropriations.  The board may pay relocation costs, at its 
 74.13  discretion, when acquiring property.  
 74.14     Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
 74.15  appropriated to the board to acquire lands or sites for public 
 74.16  buildings or real estate, the acquisition may be by gift, 
 74.17  purchase, or condemnation proceedings.  Condemnation proceedings 
 74.18  must be under chapter 117. 
 74.19     Sec. 43.  Minnesota Statutes 1994, section 136E.692, 
 74.20  subdivision 1, is amended to read: 
 74.21     Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The higher 
 74.22  education board shall supervise and control the preparation of 
 74.23  plans and specifications for the construction, 
 74.24  alteration, repair, or enlargement of community college, state 
 74.25  university, and technical state college and university 
 74.26  buildings, structures, and improvements for which appropriations 
 74.27  are made to the board.  The board shall advertise for bids and 
 74.28  award contracts in connection with the improvements, supervise 
 74.29  and inspect the work, approve necessary changes in the plans and 
 74.30  specifications, approve estimates for payment, and accept the 
 74.31  improvements when completed according to the plans and 
 74.32  specifications. 
 74.33     Sec. 44.  Minnesota Statutes 1994, section 136E.692, 
 74.34  subdivision 3, is amended to read: 
 74.35     Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
 74.36  projects, the higher education board must not restrict its 
 75.1   access to litigation or limit its methods of redress to 
 75.2   arbitration or other nonjudicial procedures. 
 75.3      Sec. 45.  [136F.68] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
 75.4      In awarding contracts for capital projects under section 
 75.5   136E.692, the board shall consider the documentation provided by 
 75.6   the bidders regarding their qualifications, including evidence 
 75.7   of having successfully completed similar work, or delivering 
 75.8   services or products comparable to that being requested.  The 
 75.9   board shall set procedures to administer this section, which 
 75.10  must include practices that will assist in the economic 
 75.11  development of small businesses, small targeted group 
 75.12  businesses, and businesses in economically disadvantaged areas 
 75.13  designated under section 16B.19. 
 75.14     Sec. 46.  [136F.19] [STATE PROPERTY AGREEMENTS.] 
 75.15     Notwithstanding section 16B.24, the board may enter into an 
 75.16  agreement with an intermediate school district for the 
 75.17  cooperative use of state property for an initial period of ten 
 75.18  years, which may be renewed or extended for additional periods 
 75.19  of up to ten years each. 
 75.20                              FINANCE 
 75.21     Sec. 47.  [136F.70] [TUITION; FEES; ACTIVITIES FUNDS.] 
 75.22     Subdivision 1.  [TUITION.] The board shall set rates of 
 75.23  tuition for the various instructional programs.  The board may 
 75.24  waive tuition for certain persons, courses, and programs.  
 75.25     Subd. 2.  [FEES.] The board may prescribe fees to be 
 75.26  charged students for student unions, state college and 
 75.27  university activities, functions, and purposes.  
 75.28     Subd. 3.  [REFUNDS.] The board may make refunds to students 
 75.29  for tuition, activity fees, union fees, and any other fees from 
 75.30  imprest cash funds.  The imprest cash fund shall be reimbursed 
 75.31  periodically by checks or warrants drawn on the funds and 
 75.32  accounts to which the refund should ultimately be charged.  The 
 75.33  amounts necessary to pay the refunds are appropriated from the 
 75.34  funds and accounts to which they are charged.  
 75.35     Sec. 48.  [136F.71] [RECEIPTS.] 
 75.36     Subdivision 1.  [APPROPRIATION OF RECEIPTS.] All receipts 
 76.1   of every kind, nature, and description, including student 
 76.2   tuition and fees, all federal receipts, aids, contributions, and 
 76.3   reimbursements, but not including receipts attributable to state 
 76.4   colleges and universities activity funds, in all the state 
 76.5   colleges and universities are appropriated to the board, but are 
 76.6   subject to budgetary control to be exercised by the commissioner 
 76.7   of finance.  The balance in these funds shall not cancel on June 
 76.8   30, but shall be available in the next fiscal year. 
 76.9      Subd. 2.  [ACTIVITY FUNDS.] All receipts attributable to 
 76.10  the state colleges and universities activity funds and deposited 
 76.11  in the state treasury are appropriated to the board and are not 
 76.12  subject to budgetary control as exercised by the commissioner of 
 76.13  finance.  
 76.14     Sec. 49.  [136F.72] [FUNDS.] 
 76.15     Subdivision 1.  [ACTIVITY FUNDS.] The board may establish 
 76.16  in each state college and university a fund to be known as the 
 76.17  activity fund.  The purpose of these funds shall be to provide 
 76.18  for the administration of state college and university 
 76.19  activities designed for student recreational, social, welfare, 
 76.20  and educational pursuits supplemental to the regular curricular 
 76.21  offerings.  The activity funds shall encompass accounts for 
 76.22  student activities, student health services authorized college 
 76.23  and university agencies, authorized auxiliary enterprises, 
 76.24  student loans, gifts and endowments, and other accounts as the 
 76.25  board may prescribe.  
 76.26     Subd. 2.  [ADMINISTRATIVE FUND AND ACCOUNTS.] The board may 
 76.27  establish a fund within the board office for management of 
 76.28  employee retirement funds.  The board may establish an 
 76.29  administrative fund at each state college and university or 
 76.30  within the board office for the administration of contracts, 
 76.31  student equipment purchases, and receipt and transfer of foreign 
 76.32  program money.  
 76.33     Subd. 3.  [ADMINISTRATION.] The board, independent of other 
 76.34  authority and notwithstanding chapters 16A and 16B, shall 
 76.35  administer the money collected for the state colleges and 
 76.36  universities activity funds and the administrative fund.  All 
 77.1   activity fund money collected shall be administered under the 
 77.2   policies of the board subject to audit of the legislative 
 77.3   auditor.  
 77.4      Subd. 4.  [IMPREST CASH FUNDS.] The board may establish an 
 77.5   imprest cash fund in each of its state colleges and universities.
 77.6      Sec. 50.  [136F.73] [CASH OVER AND SHORT ACCOUNT OF IMPREST 
 77.7   CASH FUND.] 
 77.8      The board may establish a cash over and short account 
 77.9   within the imprest cash fund for each state college and 
 77.10  university.  This account shall be used to record on a daily 
 77.11  basis overages and shortages of cash receipts.  At the end of 
 77.12  each fiscal year, the board shall credit or debit the overage or 
 77.13  shortage from each state college or university to the board 
 77.14  maintenance and equipment appropriation account.  In the 
 77.15  instance of a debit balance remaining in any cash over and short 
 77.16  accounts, the board may transfer from the maintenance and 
 77.17  equipment appropriation account moneys sufficient to offset such 
 77.18  debit balance.  The commissioner of finance shall make the 
 77.19  appropriate adjustments and entries on the general books of 
 77.20  account of the state.  
 77.21     Sec. 51.  [136F.74] [CARRY-OVER AUTHORITY.] 
 77.22     The board may carry over any unexpended balance from its 
 77.23  appropriation from the first year of a biennium into the second 
 77.24  year of the biennium.  The board may carry over any unexpended 
 77.25  balance into the following biennium.  The amounts carried over 
 77.26  must not be taken into account in determining state 
 77.27  appropriations and must not be deducted from a later 
 77.28  appropriation. 
 77.29     Sec. 52.  [136F.75] [LITIGATION AWARDS.] 
 77.30     Notwithstanding any law to the contrary, the board may keep 
 77.31  money received from successful litigation by or against the 
 77.32  board.  Awards made to the state or the board resulting from 
 77.33  litigation against or by the board must be kept by the board to 
 77.34  the credit of the account from which the litigation was 
 77.35  originally funded.  An award that exceeds the costs incurred in 
 77.36  the litigation shall be used by the board for repair or 
 78.1   replacement projects. 
 78.2      Sec. 53.  [136F.77] [TECHNICAL EQUIPMENT.] 
 78.3      Subdivision 1.  [PROPRIETARY PURCHASES.] Notwithstanding 
 78.4   the competitive bidding requirements of chapter 16B, technical 
 78.5   educational equipment may be purchased for state colleges and 
 78.6   universities on request of the board either by brand designation 
 78.7   or in accordance with standards and specifications prescribed by 
 78.8   the board.  The purchase is subject to supervision by the 
 78.9   information policy office under section 16B.41.  
 78.10     Subd. 2.  [COMPUTER SALES AND SUPPORT.] The board may sell 
 78.11  computers and related products to state college and university 
 78.12  staff and students to advance their instructional and research 
 78.13  abilities.  The board shall contract with a private vendor for 
 78.14  service, maintenance, and support for computers and related 
 78.15  products sold by the board. 
 78.16     Sec. 54.  [136F.79] [SOLE STATE AGENCY.] 
 78.17     The board is the sole state agency to receive and disburse 
 78.18  federal funds authorized by the Vocational Education Act of 
 78.19  1963, as amended in the education amendments of 1976, Public Law 
 78.20  Number 94-482, and Code of Federal Regulations, title 34, part 
 78.21  400.  The board shall develop and submit the state plan for 
 78.22  vocational technical education.  The board shall develop the 
 78.23  state plan according to terms of agreement with the state board 
 78.24  of education.  
 78.25                          GRANTS AND GIFTS 
 78.26     Sec. 55.  [136F.80] [GRANTS; GIFTS; BEQUESTS; DEVISES; 
 78.27  ENDOWMENTS.] 
 78.28     Subdivision 1.  [RECEIPT AND ACCEPTANCE.] The board may 
 78.29  apply for, receive, and accept on behalf of the state and for 
 78.30  the benefit of any state college or university any grant, gift, 
 78.31  bequest, devise, or endowment that any person, firm, 
 78.32  corporation, foundation, association, or government agency may 
 78.33  make to the board for the purposes of the state colleges and 
 78.34  universities.  The board may use any money given to it or to any 
 78.35  of the state colleges and universities consistent with the terms 
 78.36  and conditions under which the money was received and for the 
 79.1   purposes stated.  All moneys received are appropriated to the 
 79.2   board for use in the colleges and universities.  These moneys 
 79.3   shall not be taken into account in determining appropriations or 
 79.4   allocations.  All taxes and special assessments constituting a 
 79.5   lien on any real property received and accepted by the board 
 79.6   under this section shall be paid in full before title is 
 79.7   transferred to the state.  
 79.8      Subd. 2.  [DEPOSIT OF MONEY.] The board shall provide by 
 79.9   policy, in accordance with provisions of chapter 118, for the 
 79.10  deposit of all money received or referred to under this 
 79.11  section.  Whenever the board shall by resolution determine that 
 79.12  there are moneys in the state college or university funds not 
 79.13  currently needed, the board may by resolution authorize and 
 79.14  direct the president of the college or university to invest a 
 79.15  specified amount in securities as are duly authorized as legal 
 79.16  investments for savings banks and trust companies. Securities so 
 79.17  purchased shall be deposited and held for the board by any bank 
 79.18  or trust company authorized to do a banking business in this 
 79.19  state. 
 79.20     Sec. 56.  Laws 1991, chapter 356, article 9, section 9, as 
 79.21  amended by Laws 1994, chapter 532, article 5, section 1, 
 79.22  subdivision 1, is amended to read: 
 79.23     Subdivision 1.  [TRANSFER OF POWERS; GENERALLY.] The state 
 79.24  board of technical colleges, the state board for community 
 79.25  colleges, and the state university board and their respective 
 79.26  chancellors retain responsibility for operating and managing 
 79.27  their systems until July 1, 1995.  On July 1, 1995, the 
 79.28  authority, duties, responsibilities, related property of the 
 79.29  state board of technical colleges, school boards, intermediate 
 79.30  school boards, and joint vocational technical boards with 
 79.31  respect to technical colleges, the state board for community 
 79.32  colleges, and the state university board are transferred to the 
 79.33  higher education board board of trustees of the Minnesota state 
 79.34  colleges and universities under Minnesota Statutes, section 
 79.35  15.039. 
 79.36     Effective July 1, 1995, school boards, intermediate school 
 80.1   boards, and joint vocational technical boards shall transfer to 
 80.2   the higher education board state all real property, personal 
 80.3   property, and improvements and attachments thereto related to 
 80.4   technical colleges as determined by the higher education board, 
 80.5   and shall convey all interests in the property.  The school 
 80.6   boards, intermediate school boards, and joint vocational 
 80.7   technical boards shall not receive compensation for the 
 80.8   conveyance of the interests.  For a school board or a joint 
 80.9   vocational technical board, on July 1, 1995, title and ownership 
 80.10  of all personal property, real property, and improvements and 
 80.11  attachments thereto related to technical colleges as determined 
 80.12  by the board of trustees of the Minnesota state colleges and 
 80.13  universities shall vest in the state, under the management, 
 80.14  supervision, and control of the board of trustees of the 
 80.15  Minnesota state colleges and universities.  For an intermediate 
 80.16  school board, on July 1, 1995, title and ownership of all 
 80.17  personal property, real property, and improvements and 
 80.18  attachments thereto related to technical colleges as determined 
 80.19  by the board of trustees of the Minnesota state colleges and 
 80.20  universities and the intermediate school board shall vest in the 
 80.21  state, under the management, supervision, and control of the 
 80.22  board of trustees of the Minnesota state colleges and 
 80.23  universities.  If by June 15, 1995, the higher education board 
 80.24  and an intermediate school board cannot agree on ownership of 
 80.25  personal property, real property, and improvements and 
 80.26  attachments thereto, the commissioner of the bureau of mediation 
 80.27  services shall appoint a special mediator under Minnesota 
 80.28  Statutes, section 179.02, subdivision 2, to settle the dispute.  
 80.29  On or after July 1, 1995, a school board or intermediate school 
 80.30  board that has transferred property under this subdivision, if 
 80.31  requested by the board of trustees of the Minnesota state 
 80.32  colleges and universities, shall issue a deed of conveyance or 
 80.33  other document appropriate to transfer title or ownership to the 
 80.34  state to serve as evidence of transfer of title or ownership.  
 80.35  The board of trustees of the Minnesota state colleges and 
 80.36  universities as successor in interest to any joint vocational 
 81.1   technical board may execute such a deed of conveyance or other 
 81.2   appropriate document to the state for that purpose.  All debt 
 81.3   service payments on the transferred property that have a due 
 81.4   date on or after July 1, 1995, become the responsibility of 
 81.5   the higher education board of trustees of the Minnesota state 
 81.6   colleges and universities. 
 81.7      On July 1, 1995, all other obligations incurred on behalf 
 81.8   of a technical college by a school board, a joint vocational 
 81.9   district under Minnesota Statutes, section 136C.60, or an 
 81.10  intermediate school district under Minnesota Statutes, chapter 
 81.11  136D, which will not be satisfied on or before June 30, 1995, 
 81.12  transfer to the higher education board of trustees of the 
 81.13  Minnesota state colleges and universities subject to limits 
 81.14  identified in state law or in plans or policies of the higher 
 81.15  education board of trustees of the Minnesota state colleges and 
 81.16  universities subject to legislative approval. 
 81.17     The state board of technical colleges, state board for 
 81.18  community colleges, and state university board are abolished, 
 81.19  effective July 1, 1995. 
 81.20     For the purposes of this subdivision "higher education 
 81.21  board" is the same entity as "board of trustees of the state 
 81.22  colleges and universities." 
 81.23     Sec. 57.  Laws 1993, First Special Session chapter 2, 
 81.24  article 9, section 1, subdivision 7, is amended to read: 
 81.25     Subd. 7.  [EXPIRATION.] This section expires on June 30, 
 81.26  1995 1997. 
 81.27     Sec. 58.  Laws 1994, chapter 532, article 6, section 12, is 
 81.28  amended to read: 
 81.29     Sec. 12.  [REVISOR INSTRUCTION.] 
 81.30     (a) In the 1996 edition of Minnesota Statutes, the revisor 
 81.31  shall renumber sections 136.31 as 136E.80; 136.31, subdivision 
 81.32  7, as 136E.80, subdivision 6; 136.32 as 136E.81; 136.33 as 
 81.33  136E.82; 136.34 as 136E.83; 136.35 as 136E.84; 136.36 as 
 81.34  136E.85; 136.37 as 136E.86; 136.38 as 136E.87; 136.41, 
 81.35  subdivision 8, as 136E.88, subdivision 1; 136.41, subdivision 9, 
 81.36  as 136E.88, subdivision 2; 136.41, subdivision 10, as 136E.88, 
 82.1   subdivision 3. 
 82.2      (b) The revisor shall add "Federal Tax on Interest" as a 
 82.3   headnote to section 136.41, subdivision 9. 
 82.4      Sec. 59.  [TRANSFER OF RETIREMENT FUND MEMBERSHIP FOR 
 82.5   TECHNICAL COLLEGE EMPLOYEES; ELECTION TO RETAIN RETIREMENT FUND 
 82.6   MEMBERSHIP.] 
 82.7      A person who is employed by a technical college or by the 
 82.8   technical college system on June 30, 1995, and who is 
 82.9   transferred to state employment shall remain a member of the 
 82.10  public employees retirement association or the Minneapolis 
 82.11  employees retirement fund, whichever applies, unless the person 
 82.12  affirmatively elects, in writing, retirement coverage by the 
 82.13  general state employees retirement plan of the Minnesota state 
 82.14  retirement system.  The following provisions govern the election 
 82.15  of a transfer or the retention of retirement benefit coverage:  
 82.16     (1) For a person who desires to transfer benefit coverage, 
 82.17  the affirmative written election must be made within 120 days of 
 82.18  the transfer of the employee to state employment.  
 82.19     (2) On behalf of transferred employees who retain 
 82.20  retirement benefit coverage with the pretransfer retirement 
 82.21  plan, the board shall make the applicable employer contributions 
 82.22  to the public employees retirement association under Minnesota 
 82.23  Statutes, section 353.27, subdivisions 3 and 3a, or the same 
 82.24  percentage of covered payroll employer contribution to the 
 82.25  Minneapolis employees retirement fund that special school 
 82.26  district No. 1 is required to make for that school year under 
 82.27  Minnesota Statutes, section 422A.101, subdivision 2.  
 82.28     (3) An employee who makes a retirement benefit coverage 
 82.29  transfer election under this section may revoke that election at 
 82.30  any time within the first six months after the person becomes a 
 82.31  state employee.  Once an employee revokes the retirement benefit 
 82.32  coverage transfer election, the employee may not make another 
 82.33  election.  If the initial retirement benefit coverage transfer 
 82.34  election is revoked, all retirement contributions made by or on 
 82.35  behalf of the employee revoking a prior election must be 
 82.36  transferred to the applicable retirement plan as though they 
 83.1   were erroneous deductions or contributions, plus monthly 
 83.2   interest at an annual rate of 8.5 percent, compounded monthly, 
 83.3   and the balance remaining between any contribution amount 
 83.4   transferred and the amount of contributions that otherwise would 
 83.5   have been due are payable in the applicable proportions by the 
 83.6   revoking employee and the board, plus monthly interest at an 
 83.7   annual rate of 8.5 percent, compounded monthly.  
 83.8      (4) The executive directors of the Minnesota state 
 83.9   retirement system, the public employees retirement association, 
 83.10  and the Minneapolis employees retirement fund, and the 
 83.11  chancellor of the higher education system, shall confer and 
 83.12  jointly adopt appropriate procedures for making the retirement 
 83.13  benefit coverage transfer elections under this section.  
 83.14     (5) The executive directors of the public employees 
 83.15  retirement association, the Minnesota state retirement system, 
 83.16  and the Minneapolis employees retirement fund, whichever 
 83.17  applies, shall, upon request, provide appropriate benefit 
 83.18  counseling to applicable affected employees on the effect of 
 83.19  electing retirement benefit coverage by the general state 
 83.20  employees retirement plan of the Minnesota state retirement 
 83.21  system. 
 83.22     Sec. 60.  [INSURANCE TRANSITION.] 
 83.23     This section applies to a technical college employee of a 
 83.24  school district, intermediate district, or regional district who 
 83.25  becomes a state employee on July 1, 1995.  If such an employee 
 83.26  had amounts withheld from paychecks issued by the district 
 83.27  either before or after June 30, 1995, to cover the costs of 
 83.28  insurance benefits for a period after June 30, 1995, the 
 83.29  district must refund any such amounts to the employee by 
 83.30  September 1, 1995.  The district must also transfer any money 
 83.31  designated as the employer share of these benefits to the board 
 83.32  of trustees of the Minnesota state colleges and universities to 
 83.33  be credited toward the employer share of insurance benefits.  
 83.34     Sec. 61.  [COLLEGE AND UNIVERSITY ADMINISTRATION.] 
 83.35     By February 15, 1996, the board of trustees shall report to 
 83.36  the education committees of the house of representatives and 
 84.1   senate on plans to reduce the administrative costs in the state 
 84.2   colleges and universities.  The plan shall outline the board's 
 84.3   goals for administrative cost reductions at both the system 
 84.4   office and the colleges and universities, efforts to promote 
 84.5   collaboration among institutions, increases in productivity for 
 84.6   administrators, faculty, staff, and students, and measures to 
 84.7   reduce overlap and duplication in programs.  
 84.8      Sec. 62.  [ELIMINATING STATUTES; BOARD RECOMMENDATIONS.] 
 84.9      By January 1, 1996, the board of trustees of the Minnesota 
 84.10  state colleges and universities and the board of regents of the 
 84.11  University of Minnesota shall provide the education committees 
 84.12  of the legislature with recommendations to reduce the number of 
 84.13  statutory sections relating to higher education, including, but 
 84.14  not limited to, recommendations regarding statutory sections 
 84.15  that could be incorporated in board policies or procedures, and 
 84.16  regarding statutory sections that are obsolete. 
 84.17     Sec. 63.  [EARLY SEPARATION INCENTIVES.] 
 84.18     Subdivision 1.  [EMPLOYER PARTICIPATION; HIGHER EDUCATION 
 84.19  AGENCIES.] (a) In order to minimize the disruptive effects of 
 84.20  layoffs or reorganization attributable to the merger of the 
 84.21  state universities, community colleges, and technical colleges, 
 84.22  and the restructuring of the higher education coordinating 
 84.23  board, employees of the higher education coordinating board, the 
 84.24  state university, community college, and technical college 
 84.25  systems, and employees of local school districts, joint 
 84.26  technical districts, and intermediate districts assigned to a 
 84.27  technical college position, who are employed in positions that 
 84.28  are to be eliminated in the merger and restructuring, as 
 84.29  certified by the chancellor of the higher education board or the 
 84.30  executive director of the higher education coordinating board, 
 84.31  are entitled to elect an early separation incentive set forth in 
 84.32  subdivision 3. 
 84.33     (b) The higher education board and the higher education 
 84.34  coordinating board must determine those specific positions to be 
 84.35  permanently eliminated as part of the merger or restructuring 
 84.36  and identify the employees who may elect one of the early 
 85.1   separation incentives established by this section. 
 85.2      (c) For the purposes of this section "higher education 
 85.3   board" is the same entity as "board of trustees of the state 
 85.4   colleges and universities" and the higher education coordinating 
 85.5   board is the same entity as the "higher education services 
 85.6   office." 
 85.7      Subd. 2.  [ELIGIBILITY.] A person employed by the employing 
 85.8   units identified in subdivision 1 is eligible to elect the 
 85.9   incentive if the person: 
 85.10     (1) is an employee of the higher education coordinating 
 85.11  board, a state university, community college, or technical 
 85.12  college, or an administrative employee of a local school 
 85.13  district, joint technical district and intermediate district 
 85.14  assigned to a technical college position whose position is to be 
 85.15  eliminated; 
 85.16     (2) is at least age 55 but is not yet age 65; 
 85.17     (3) is employed in a permanent position and in active work 
 85.18  status at the time the incentive is elected; 
 85.19     (4) upon retirement, termination, or separation is 
 85.20  immediately eligible for a retirement annuity from a defined 
 85.21  benefit Minnesota public employee pension plan or a distribution 
 85.22  from a defined contribution Minnesota public employee pension 
 85.23  plan; 
 85.24     (5) retires, separates, or is terminated from an eligible 
 85.25  position after June 30, 1994, but before July 1, 1996; and 
 85.26     (6) has been certified by the chancellor of the higher 
 85.27  education board or the executive director of the higher 
 85.28  education coordinating board as eligible to elect an early 
 85.29  separation incentive. 
 85.30     Notwithstanding anything in this subdivision, the executive 
 85.31  director of the higher education coordinating board, or the 
 85.32  chancellor of the higher education board may certify any 
 85.33  employee, regardless of age, as eligible to elect the six-month 
 85.34  retraining leave described in subdivision 3, paragraph (d).  
 85.35     Subd. 3.  [INCENTIVES.] (a) Eligible employees may elect 
 85.36  one of the following incentives but may not elect both.  
 86.1      (b) Retirement under this section means permanent 
 86.2   separation or termination from employment with or under the 
 86.3   control of the higher education board, the higher education 
 86.4   coordinating board, or the higher education systems to be merged.
 86.5      (c) Employees who separate, terminate, or retire with the 
 86.6   early retirement incentive under paragraph (e) may not be 
 86.7   rehired by the state in any employment position under the 
 86.8   control of the higher education board or the higher education 
 86.9   coordinating board. 
 86.10     (d) An eligible employee who receives a termination notice 
 86.11  after July 1, 1994, may elect to take a six-month retraining 
 86.12  leave in order to complete a course of study that is approved by 
 86.13  the higher education board or the higher education coordinating 
 86.14  board and which is designed to prepare the employee to assume a 
 86.15  faculty position at a state university, community college, or 
 86.16  technical college.  The retraining leave must be at the full 
 86.17  salary level that the person received immediately before the 
 86.18  termination notice, including fringe benefits.  The leave must 
 86.19  be completed no later than June 30, 1996.  Employees who seek to 
 86.20  return to teaching must satisfy the qualifications established 
 86.21  by applicable collective bargaining agreements.  Any subsequent 
 86.22  faculty appointments must be in accordance with collective 
 86.23  bargaining agreements and policies of the higher education 
 86.24  board.  The individual's pretermination notice employment ceases 
 86.25  at the conclusion of the retraining leave.  Individual employee 
 86.26  eligibility for severance payments must be made in accordance 
 86.27  with the policies of the employing unit in effect at the time 
 86.28  the incentive was elected.  Notice of election of this incentive 
 86.29  must be made before April 1, 1996, on forms prescribed by the 
 86.30  higher education board. 
 86.31     (e) An eligible employee may elect the following instead of 
 86.32  the incentive in paragraph (d): 
 86.33     (1) state-paid hospital, medical, and dental insurance to 
 86.34  age 65.  An employee who retires, is terminated, or is separated 
 86.35  is eligible for single or dependent insurance coverages, 
 86.36  whichever applies, and any employer payments to which the person 
 87.1   was entitled immediately before retirement, termination, or 
 87.2   separation subject to any changes in coverage and employer and 
 87.3   employee payments through collective bargaining or personnel 
 87.4   plans in positions equivalent to the position from which the 
 87.5   employee retired, terminated, or separated.  The employee is not 
 87.6   eligible for employer-paid life insurance.  If the employee is 
 87.7   not yet age 65 at the time of retirement or separation, the 
 87.8   employee is eligible for employer-paid insurance under the 
 87.9   provisions of a personnel plan and has at least as many months 
 87.10  service with the current employer and as the number of months 
 87.11  the individual is under age 65 at the time of retirement; and 
 87.12     (2) if the eligible employee has at least 15 years of 
 87.13  combined service credit in a Minnesota public pension plan, a 
 87.14  one-time opportunity to purchase up to two years of service 
 87.15  credit in or to make not more than two years of additional 
 87.16  member contributions to the public pension plan that the 
 87.17  employee is a member of at the time of retirement or separation 
 87.18  as follows: 
 87.19     (i) Eligible employees may have the additional payment made 
 87.20  on the basis of the employee's base salary in the year of 
 87.21  separation as denoted in the salary schedule in the applicable 
 87.22  employer personnel policy and at the rate and in the manner 
 87.23  specified in section 352.04, 353.27, 354.42, or 354A.12, 
 87.24  whichever applies.  The employee payment must include interest 
 87.25  at the rate of 8.5 percent.  The employer shall make the 
 87.26  required employer contribution and employer additional 
 87.27  contribution to the retirement fund as specified in section 
 87.28  352.04, 353.27, 354.42, or 354A.12, whichever applies for an 
 87.29  employee who elects this option.  Both the required employee and 
 87.30  employer payments must be made to the fund before the employee's 
 87.31  date of retirement or separation, whichever is earlier. 
 87.32     (ii) Defined contribution plan members in plans established 
 87.33  by chapter 352D or 354B must have additional employee and 
 87.34  employer contributions made on the basis of the employee's base 
 87.35  salary in the year of retirement as denoted in the salary 
 87.36  schedule in the applicable employer personnel policy and at the 
 88.1   rate and in the manner specified in section 352D.04, subdivision 
 88.2   2, or 354B.04, as applicable.  The additional contributions must 
 88.3   be made before the employee's date of retirement or separation, 
 88.4   whichever is earlier. 
 88.5      Subd. 4.  [PROFESSIONAL CONTRACTS; SELF LOAN 
 88.6   PROGRAM.] Notwithstanding anything in this section, employees 
 88.7   eligible for early separation incentives under this section may 
 88.8   be employed under a professional, technical contract to provide 
 88.9   technical assistance relating to the student educational loan 
 88.10  fund (SELF) program, or to the statewide database, not to exceed 
 88.11  1,044 hours in any consecutive 12-month period. 
 88.12     Sec. 64.  [REVISOR INSTRUCTION.] 
 88.13     (a) In the next and subsequent editions of Minnesota 
 88.14  Statutes, the revisor shall renumber each section in column A 
 88.15  with the corresponding number in column B.  
 88.16            COLUMN A                    COLUMN B
 88.17            136.015                     136F.015
 88.18            136.017                     136F.017
 88.19            136.31                      136F.90
 88.20            136.31, subd. 7             136F.90, subd. 6
 88.21            136.32                      136F.91
 88.22            136.33                      136F.92
 88.23            136.34                      136F.93
 88.24            136.35                      136F.94
 88.25            136.36                      136F.95
 88.26            136.37                      136F.96
 88.27            136.38                      136F.97
 88.28            136.41, subd. 8             136F.98, subd. 1
 88.29            136.41, subd. 9             136F.98, subd. 2
 88.30            136.41, subd. 10            136F.98, subd. 3
 88.31            136E.01                     136F.02
 88.32            136E.02                     136F.03
 88.33            136E.021                    136F.04
 88.34            136E.03                     136F.05
 88.35            136E.04, subd. 1            136F.06
 88.36            136E.04, subd. 8            136F.47
 89.1             136E.05                     136F.52
 89.2             136E.31                     136F.41
 89.3             136E.525                    136F.22
 89.4             136E.692                    136F.66
 89.5      (b) In the next and subsequent editions of Minnesota 
 89.6   Statutes, the revisor shall correct all cross-references to 
 89.7   sections renumbered, recodified, or repealed in sections 1 to 65.
 89.8      (c) In the next and subsequent editions of Minnesota 
 89.9   Statutes, the revisor shall change the term "higher education 
 89.10  board," and similar terms to "board of trustees of the Minnesota 
 89.11  state colleges and universities," or similar terms. 
 89.12     Sec. 65.  [REPEALER.] 
 89.13     Minnesota Statutes 1994, sections 15.38, subdivision 4; 
 89.14  136.01; 136.02; 136.03; 136.031; 136.036; 136.045; 136.065; 
 89.15  136.07; 136.09; 136.10; 136.11; 136.111; 136.12; 136.13; 136.14; 
 89.16  136.141; 136.142; 136.143; 136.144; 136.145; 136.146; 136.147; 
 89.17  136.17; 136.171; 136.172; 136.18; 136.19; 136.20; 136.21; 
 89.18  136.22; 136.232; 136.24; 136.25; 136.261; 136.27; 136.31; 
 89.19  136.311; 136.32; 136.33; 136.34; 136.35; 136.36; 136.37; 136.38; 
 89.20  136.40; 136.41; 136.42; 136.43; 136.44; 136.45; 136.46; 136.47; 
 89.21  136.48; 136.49; 136.50; 136.501; 136.502; 136.503; 136.504; 
 89.22  136.505; 136.506; 136.507; 136.55; 136.56; 136.57; 136.58; 
 89.23  136.60; 136.6011; 136.602; 136.603; 136.61; 136.62; 136.621; 
 89.24  136.622; 136.63; 136.65; 136.651; 136.653; 136.67; 136.70; 
 89.25  136.71; 136.72; 136.88; 136.90; 136C.01; 136C.02; 136C.03; 
 89.26  136C.04; 136C.041; 136C.042; 136C.043; 136C.044; 136C.05; 
 89.27  136C.06; 136C.07; 136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 
 89.28  136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 136C.50; 
 89.29  136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 136C.64; 136C.65; 
 89.30  136C.66; 136C.67; 136C.68; 136C.69; 136C.70; 136C.71; 136C.75; 
 89.31  136E.04, subdivisions 2, 3, 4, 5, 6, and 7; 136E.395; and 
 89.32  136E.692, subdivision 4, are repealed.  
 89.33     Sec. 66.  [EFFECTIVE DATE.] 
 89.34     Sections 56 and 63 are effective the day following final 
 89.35  enactment.