HF 1108

as introduced - 87th Legislature (2011 - 2012) Posted on 03/14/2011 10:58am

A bill for an act
relating to higher education; limiting salaries and payment of bonuses in certain
contracts; requiring an organizational efficiency study of the Minnesota State
Colleges and Universities; phasing out centers of excellence; clarifying use of
certain appropriations; amending Minnesota Statutes 2010, sections 15A.081,
subdivision 7c; 136F.40, subdivision 2; repealing Minnesota Statutes 2010,
section 136F.31.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

TRANSFORMING HIGHER EDUCATION

Section 1. new text begin REPORT ON TRANSFORMING HIGHER EDUCATION.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall
do a comprehensive evaluation of the structure of the Minnesota State Colleges and
Universities and report to the legislature with recommendations for improvements to
increase the efficiency and effectiveness of delivering postsecondary education through
public two-year colleges and state universities. The study must evaluate the organization
of the Minnesota State Colleges and Universities system, and must consider and evaluate
the following organizational alternatives:
new text end

new text begin (1) the alignment of the two-year and four-year institutions into separate
administrative systems;
new text end

new text begin (2) establishment of regional education districts;
new text end

new text begin (3) formation of multicampus institutions;
new text end

new text begin (4) district or subdistrict accreditation of institutions;
new text end

new text begin (5) regional delivery of shared services and programs; and
new text end

new text begin (6) elimination of duplicate services and programs.
new text end

new text begin The study must identify potential structural and operational efficiencies and must
recommend methods to refocus administration at the campus level and reduce or
eliminate duplicative administration through central services. The costs and benefits
of each alternative in the study must be evaluated and reported with the study findings
and recommendations, by January 30, 2012, to the committees of the legislature with
responsibility for higher education finance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin CENTERS OF EXCELLENCE SUNSET.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities must
develop a plan to phase out centers of excellence as a systemwide initiative. Beginning
in fiscal year 2013 and thereafter, any amount of the base operations and maintenance
appropriation attributable to centers of excellence under Minnesota Statutes, section
136F.31, must not be separately allocated by the board, but must be included in the total
amount available for allocation to all institutions.
new text end

Sec. 3. new text begin FUNDING TRANSFORMATIONAL INITIATIVES.
new text end

new text begin Any new transformational initiatives for the Minnesota State Colleges and
Universities undertaken by the board of trustees during fiscal years 2012 and 2013 must be
funded out of the direct appropriation for the central office and shared services. None of
the direct appropriations for operation and maintenance of the Minnesota State Colleges
and Universities may be used for new transformational initiatives in the biennium ending
June 30, 2013.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 136F.31, new text end new text begin is repealed.
new text end

ARTICLE 2

HIGHER EDUCATION COMPENSATION

Section 1.

Minnesota Statutes 2010, section 15A.081, subdivision 7c, is amended to
read:

Subd. 7c.

Minnesota State Colleges and Universities chancellor.

The Board of
Trustees of the Minnesota State Colleges and Universities shall establish a salary range for
the position of chancellor of the Minnesota State Colleges and Universities. The board
shall submit the proposed salary range to the Legislative Coordinating Commission for
approval, modification, or rejection in the manner provided in section 3.855. The board
shall establish deleted text begin the deleted text end new text begin a new text end salary for the chancellor deleted text begin within the approved salary range deleted text end new text begin that does
not exceed the governor's salary new text end .

In deciding whether to approve a salary increase, the board shall consider the
performance of the chancellor in areas including educational leadership, student success,
system management, human resources, and affirmative action.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
contracts entered into on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2010, section 136F.40, subdivision 2, is amended to read:

Subd. 2.

Contracts.

(a) The board may enter into a contract with the chancellor,
a vice-chancellor, or a president, containing terms and conditions of employment. The
terms of the contract must be authorized under a plan approved under section 43A.18,
subdivision 3a. new text begin The salary established for a contract under this section must not exceed
the governor's salary.
new text end

(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a
contract under this section may provide a liquidated salary amount or other compensation
if a contract is terminated by the board prior to its expiration.

(c) Notwithstanding section 356.24 or other law to the contrary, a contract under
this section may contain a deferred compensation plan made in conformance with section
457(f) of the Internal Revenue Code.

new text begin (d) Notwithstanding any provision of the plan approved under section 43A.18,
subdivision 3a, a contract under this section must not authorize or otherwise provide
for a bonus payment.
new text end

new text begin (e) To promote transparency and accountability, the board must provide timely,
complete, and easily accessible information on its Web site on the compensation of
persons with contracts under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment for
contracts entered into on or after that date.
new text end