SF 1888

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  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; prescribing 
  1.8             changes in certain financial assistance programs; 
  1.9             establishing educational savings plan accounts; 
  1.10            clarifying duties of the higher education services 
  1.11            office; providing for appropriations for certain 
  1.12            enrollments; defining the mission for the Minnesota 
  1.13            state colleges and universities system; clarifying the 
  1.14            common numbering and credit transfer requirements; 
  1.15            making technical corrections relating to the 
  1.16            post-secondary merger; modifying the higher education 
  1.17            facilities authority revenue bond authority; modifying 
  1.18            certain capital improvement projects; placing a 
  1.19            condition on referendums by campus student 
  1.20            associations; establishing the Minnesota Virtual 
  1.21            University and a roundtable on vocational technical 
  1.22            education; amending Minnesota Statutes 1996, sections 
  1.23            16A.69, subdivision 2; 125.1385, subdivision 2; 
  1.24            126.56, subdivisions 2, 4a, and 7; 135A.031, 
  1.25            subdivision 2; 135A.052, subdivision 1; 135A.08, 
  1.26            subdivision 2; 136A.01, subdivision 2, and by adding a 
  1.27            subdivision; 136A.03; 136A.121, subdivisions 5, 7, and 
  1.28            9a; 136A.125, subdivisions 3 and 4; 136A.136, 
  1.29            subdivision 2; 136A.15, by adding a subdivision; 
  1.30            136A.16, subdivisions 1, 2, 8, and by adding 
  1.31            subdivisions; 136A.171; 136A.173, subdivisions 1, 3, 
  1.32            and 5; 136A.174; 136A.175, subdivisions 1 and 2; 
  1.33            136A.233, subdivisions 1 and 2; 136A.29, subdivision 
  1.34            9; 136F.05; 216C.27, subdivision 7; 290.01, 
  1.35            subdivision 19b; Laws 1994, chapter 643, sections 10, 
  1.36            subdivision 10, as amended; and 19, subdivision 9, as 
  1.37            amended; proposing coding for new law in Minnesota 
  1.38            Statutes, chapters 136A; and 290; repealing Laws 1995, 
  1.39            chapter 212, article 4, section 34; and Laws 1995 
  1.40            First Special Session chapter 2, article 1, sections 
  1.41            35 and 36. 
  1.42  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.43                             ARTICLE 1
  2.1                            APPROPRIATIONS
  2.2   Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  2.3      The sums in the columns marked "APPROPRIATIONS" are 
  2.4   appropriated from the general fund, or other named fund, to the 
  2.5   agencies and for the purposes specified in this article.  The 
  2.6   listing of an amount under the figure "1998" or "1999" in this 
  2.7   article indicates that the amount is appropriated to be 
  2.8   available for the fiscal year ending June 30, 1998, or June 30, 
  2.9   1999, respectively.  "The first year" is fiscal year 1998.  "The 
  2.10  second year" is fiscal year 1999.  "The biennium" is fiscal 
  2.11  years 1998 and 1999. 
  2.12                          SUMMARY BY FUND
  2.13                            1998          1999           TOTAL
  2.14  General            $1,160,704,000  $1,199,283,000 $2,359,987,000
  2.15                   SUMMARY BY AGENCY - ALL FUNDS
  2.16                            1998          1999           TOTAL
  2.17  Higher Education Services Office
  2.18                        142,675,000    156,464,000    299,139,000
  2.19  Board of Trustees of the Minnesota
  2.20  State Colleges and Universities
  2.21                        494,375,000    506,870,000  1,001,245,000
  2.22  Board of Regents of the
  2.23  University of Minnesota
  2.24                        522,505,000    534,667,000  1,057,172,000
  2.25  Mayo Medical Foundation
  2.26                          1,149,000      1,282,000      2,431,000
  2.27                                             APPROPRIATIONS 
  2.28                                         Available for the Year 
  2.29                                             Ending June 30 
  2.30                                            1998         1999 
  2.31  Sec. 2.  HIGHER EDUCATION
  2.32  SERVICES OFFICE
  2.33  Subdivision 1.  Total
  2.34  Appropriation                        142,675,000    156,464,000
  2.35  The amounts that may be spent from this 
  2.36  appropriation for each purpose are 
  2.37  specified in the following subdivisions.
  2.38  Subd. 2.  State Grants
  2.39      109,547,000       124,546,000
  2.40  If the appropriation in this 
  2.41  subdivision for either year is 
  3.1   insufficient, the appropriation for the 
  3.2   other year is available for it.  
  3.3   The legislature intends that the higher 
  3.4   education services office make full 
  3.5   grant awards in each year of the 
  3.6   biennium.  
  3.7   For the biennium, the private 
  3.8   institution tuition maximum shall be 
  3.9   $7,860 the first year and $8,055 the 
  3.10  second year for four-year institutions 
  3.11  and $6,050 the first year and $6,200 
  3.12  the second year for two-year 
  3.13  institutions. 
  3.14  This appropriation contains money to 
  3.15  set the living and miscellaneous 
  3.16  expense allowance at $4,500 in the 
  3.17  first year and $4,880 in the second 
  3.18  year. 
  3.19  This appropriation contains money to 
  3.20  develop and implement the Minnesota 
  3.21  Savings for College Program. 
  3.22  This appropriation contains money to 
  3.23  make full state grant awards to 
  3.24  students during the fourth quarter of 
  3.25  attendance. 
  3.26  This appropriation contains $250,000 
  3.27  each year for grants to nursing 
  3.28  programs to recruit persons of color 
  3.29  and to provide grants to nursing 
  3.30  students who are persons of color.  Of 
  3.31  this amount, $100,000 each year is for 
  3.32  recruitment and retention of students 
  3.33  of color in nursing programs leading to 
  3.34  licensure as a registered nurse.  Other 
  3.35  than the grants to students, all grants 
  3.36  shall be matched with at least the same 
  3.37  amount from grantee sources or nonstate 
  3.38  money.  
  3.39  This appropriation contains money for 
  3.40  the National Service Scholars Program. 
  3.41  This appropriation contains money for 
  3.42  the Law School Loan Repayment 
  3.43  Assistance Program. 
  3.44  If the federal government enacts a 
  3.45  federal student loan risk sharing fee, 
  3.46  the higher education services office 
  3.47  shall recover the fee by billing the 
  3.48  institutions that have a cohort loan 
  3.49  default rate greater than the federal 
  3.50  law permits. 
  3.51  Subd. 3.  Interstate Tuition
  3.52  Reciprocity
  3.53       4,000,000      4,000,000
  3.54  If the appropriation in this 
  3.55  subdivision for either year is 
  3.56  insufficient, the appropriation for the 
  3.57  other year is available to meet 
  3.58  reciprocity contract obligations. 
  4.1   The higher education services office is 
  4.2   authorized to negotiate a reciprocity 
  4.3   agreement with the province of Ontario. 
  4.4   Subd. 4.  State Work Study
  4.5        8,944,000      8,944,000
  4.6   Subd. 5.  Minitex Library Program
  4.7        2,858,000      2,858,000
  4.8   This appropriation contains money for 
  4.9   online access to science and technology 
  4.10  periodicals. 
  4.11  Subd. 6.  Learning Network of Minnesota
  4.12       8,052,000      6,764,000
  4.13  Up to $1,500,000 of this amount is to 
  4.14  assist in establishing a gigabit 
  4.15  capacity point of presence at the 
  4.16  University of Minnesota-Twin Cities and 
  4.17  to support the university's 
  4.18  participation in the national internet 
  4.19  two initiative for research and 
  4.20  development of telecommunications 
  4.21  networks.  This appropriation is 
  4.22  available to the extent matched by the 
  4.23  University of Minnesota or private 
  4.24  sources. 
  4.25  Subd. 7.  Income Contingent Loans
  4.26  The higher education services office 
  4.27  shall administer an income contingent 
  4.28  loan repayment program to assist 
  4.29  graduates of Minnesota schools in 
  4.30  medicine, dentistry, pharmacy, 
  4.31  chiropractic medicine, public health, 
  4.32  and veterinary medicine, and Minnesota 
  4.33  residents graduating from optometry and 
  4.34  osteopathy programs.  Applicant data 
  4.35  collected by the higher education 
  4.36  services office for this program may be 
  4.37  disclosed to a consumer credit 
  4.38  reporting agency under the same 
  4.39  conditions as apply to the supplemental 
  4.40  loan program under Minnesota Statutes, 
  4.41  section 136A.162.  No new applicants 
  4.42  may be accepted after June 30, 1995. 
  4.43  Subd. 8.  Minnesota Library
  4.44  Information Network
  4.45       6,380,000        6,380,000     
  4.46  This appropriation is for 
  4.47  implementation of the Minnesota library 
  4.48  information network, which shall be 
  4.49  developed in cooperation with the 
  4.50  library planning task force, and shall 
  4.51  include the development of:  (1) an 
  4.52  integrated library system that will 
  4.53  serve the libraries of the University 
  4.54  of Minnesota; the Minnesota state 
  4.55  colleges and universities system; state 
  4.56  government; interested public, school, 
  4.57  and private college libraries; and 
  4.58  not-for-profit institutions that meet 
  5.1   the requirements; and (2) a common 
  5.2   services gateway creating links to the 
  5.3   integrated library system for 
  5.4   compatible school, public, and 
  5.5   not-for-profit library information 
  5.6   systems statewide.  Staff needed for 
  5.7   training and user support, technical 
  5.8   support, installation, and operation of 
  5.9   the network shall be obtained from the 
  5.10  Minnesota state colleges and 
  5.11  universities system, the University of 
  5.12  Minnesota, and other entities that have 
  5.13  experience and expertise in operating a 
  5.14  large library automation system.  This 
  5.15  appropriation is available until 
  5.16  expended or until the network is 
  5.17  completed, whichever occurs first. 
  5.18  Subd. 9.  Agency Administration
  5.19       2,894,000      2,972,000
  5.20  This appropriation contains money for 
  5.21  the Minnesota Minority Education 
  5.22  Partnership. 
  5.23  This appropriation contains money for 
  5.24  the violence and abuse prevention 
  5.25  program costs. 
  5.26  Money encumbered for youth works 
  5.27  postservice benefits shall not cancel 
  5.28  but is available until the participants 
  5.29  for whom the money was encumbered are 
  5.30  no longer eligible to draw benefits. 
  5.31  Subd. 10.  Balances Forward 
  5.32  The appropriations in this section do 
  5.33  not cancel but are available for the 
  5.34  following year.  The director shall 
  5.35  notify the chairs of the higher 
  5.36  education divisions of the house and 
  5.37  senate of the amounts carried forward. 
  5.38  Subd. 11.  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, the 
  5.43  interstate tuition reciprocity 
  5.44  appropriation, the child care 
  5.45  appropriation, and the state work study 
  5.46  appropriation. 
  5.47  Sec. 3.  BOARD OF TRUSTEES OF THE
  5.48  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  5.49  Subdivision 1.  Total
  5.50  Appropriation                       494,375,000    506,870,000
  5.51  The amounts that may be spent from this 
  5.52  appropriation for each purpose are 
  5.53  specified in the following subdivisions.
  5.54  Subd. 2.  Instructional Expenditures 
  5.55  The legislature estimates that the 
  5.56  instructional expenditures will be 
  5.57  $646,469,000 for the first year and 
  6.1   $659,681,000 for the second year. 
  6.2   During the biennium neither the board 
  6.3   nor campuses shall plan or develop 
  6.4   doctoral level programs or degrees 
  6.5   until after they have received the 
  6.6   recommendation of the house and senate 
  6.7   committees on education, finance, and 
  6.8   ways and means. 
  6.9   This appropriation contains money for 
  6.10  further development of the electronic 
  6.11  academy, including delivery of academic 
  6.12  programs delivered statewide via 
  6.13  electronic technology, development of 
  6.14  multimedia instructional technology 
  6.15  across the curriculum, development of 
  6.16  automated student services available 
  6.17  online and through the Internet, 
  6.18  provision of technological services for 
  6.19  staff and students, staff development, 
  6.20  and challenge grants for innovative 
  6.21  technology applications.  Up to 
  6.22  $300,000 each year is for central 
  6.23  office costs associated with the 
  6.24  implementation of the electronic 
  6.25  academy. 
  6.26  This appropriation contains $250,000 
  6.27  each year to increase acquisition of 
  6.28  books and periodicals for libraries at 
  6.29  all campuses.  The commissioner of 
  6.30  finance shall annually release $250,000 
  6.31  to the board of trustees if the annual 
  6.32  budgeted amount is at least $250,000 
  6.33  larger than the 1997 fiscal year budget 
  6.34  for books and periodicals. 
  6.35  This appropriation contains money to 
  6.36  develop and implement a common student 
  6.37  information system and central data 
  6.38  management system, and to upgrade the 
  6.39  management information systems 
  6.40  network.  The student information 
  6.41  system shall be compatible with the 
  6.42  Virtual University. 
  6.43  This appropriation contains money for 
  6.44  nonroutine repairs and betterment which 
  6.45  are required to extend the useful life 
  6.46  of state facilities and delay the need 
  6.47  for more costly future repairs. 
  6.48  This appropriation contains money for 
  6.49  development and implementation of the 
  6.50  Virtual University. 
  6.51  Each college and university shall 
  6.52  demonstrate to the board that, in the 
  6.53  face of budget constraints, it has 
  6.54  identified those programs and functions 
  6.55  that are central to the mission of that 
  6.56  campus and are most critical to meeting 
  6.57  student needs, and that the campus has 
  6.58  redirected resources to those 
  6.59  identified areas to protect the core 
  6.60  educational enterprise.  Further, each 
  6.61  campus shall demonstrate that it has 
  6.62  taken actions to improve the 
  6.63  productivity of faculty, 
  6.64  administrators, and staff. 
  7.1   Technical and consolidated colleges 
  7.2   shall make use of instructional 
  7.3   advisory committees which consist of 
  7.4   employers, students, and instructors.  
  7.5   The instructional advisory committee 
  7.6   shall be consulted when a technical 
  7.7   program is proposed to be created, 
  7.8   modified, or eliminated.  If a decision 
  7.9   is made to eliminate a program, a 
  7.10  college shall adequately notify 
  7.11  students and make plans to assist 
  7.12  students affected by the closure. 
  7.13  The board of trustees must establish 
  7.14  performance measures for determining 
  7.15  progress in achieving institutional 
  7.16  goals. 
  7.17  The board of trustees must annually 
  7.18  prepare an institutional performance 
  7.19  report describing progress in attaining 
  7.20  identified performance goals.  This 
  7.21  report must be submitted to the 
  7.22  legislature by January 15, 1999, and 
  7.23  each January thereafter.  The first 
  7.24  report must cover the period ending 
  7.25  June 30, 1998.  The report must include 
  7.26  not less than three years of historical 
  7.27  data, if practicable, for each 
  7.28  performance goal.  The report must be 
  7.29  available to the public by both written 
  7.30  and electronic means. 
  7.31  The commissioner of finance shall place 
  7.32  $10,000,000 of the appropriation in a 
  7.33  performance incentive account.  The 
  7.34  commissioner of finance shall release 
  7.35  this amount to the Minnesota state 
  7.36  colleges and universities when the 
  7.37  board of trustees certifies that it has 
  7.38  submitted the January 1999 report to 
  7.39  the legislature. 
  7.40  The board is requested to adopt a 
  7.41  resolution to develop a common 
  7.42  numbering convention as required under 
  7.43  Minnesota Statutes, section 135A.08, 
  7.44  subdivision 2. 
  7.45  The board is requested to submit a 
  7.46  progress report on the common numbering 
  7.47  convention to the legislature no later 
  7.48  than February 9, 1998. 
  7.49  The board is requested to submit a plan 
  7.50  to the legislature on how to integrate 
  7.51  technical college coursework into its 
  7.52  two- and four-year degree programs 
  7.53  while maintaining the academic 
  7.54  integrity of its programs.  The report 
  7.55  shall be submitted before February 9, 
  7.56  1998. 
  7.57  Subd. 3.  Noninstructional Expenditures 
  7.58  The legislature estimates that 
  7.59  noninstructional expenditures will be 
  7.60  $42,458,000 the first year and 
  7.61  $41,741,000 the second year. 
  7.62  This appropriation contains money to 
  8.1   reimburse campuses located in the snow 
  8.2   disaster area declared on January 16, 
  8.3   1997, for costs in excess of 150 
  8.4   percent of the fiscal year 1996 
  8.5   expenditures associated with the 
  8.6   various snowfalls. 
  8.7   This appropriation contains money to 
  8.8   pay the first year's assessments for 
  8.9   the road and entrance improvements at 
  8.10  Inver Hills Community College.  It is 
  8.11  anticipated that the remainder of the 
  8.12  costs will be paid from bond sources. 
  8.13  This appropriation contains money for 
  8.14  development and implementation of the 
  8.15  Minnesota career and education planning 
  8.16  system in partnership with the 
  8.17  University of Minnesota. 
  8.18  $204,000 the first year and $99,000 the 
  8.19  second year are for debt service 
  8.20  payments. 
  8.21  $150,000 each year is for southwest 
  8.22  Asia veterans tuition relief.  
  8.23  Subd. 4.  State Council on 
  8.24  Vocational Technical Education 
  8.25  The appropriation in subdivision 1 
  8.26  includes money in the first year for 
  8.27  the state council on vocational 
  8.28  education. 
  8.29  Sec. 4.  BOARD OF REGENTS OF THE 
  8.30  UNIVERSITY OF MINNESOTA 
  8.31  Subdivision 1.  Total
  8.32  Appropriation                        522,505,000    534,667,000
  8.33  The amounts that may be spent from this 
  8.34  appropriation for each purpose are 
  8.35  specified in the following subdivisions.
  8.36  Subd. 2.  Operations and
  8.37  Maintenance                          459,161,000    471,323,000
  8.38  (a) Instructional Expenditures 
  8.39  The legislature estimates that 
  8.40  instructional expenditures will be 
  8.41  $431,555,000 the first year and 
  8.42  $445,274,000 the second year. 
  8.43  This appropriation contains $250,000 
  8.44  each year to increase acquisition of 
  8.45  books and periodicals for libraries at 
  8.46  all campuses.  The commissioner of 
  8.47  finance shall annually release $250,000 
  8.48  to the board of regents if the annual 
  8.49  budgeted amount is at least $250,000 
  8.50  larger than the 1997 fiscal year budget 
  8.51  for books and periodicals. 
  8.52  This appropriation contains money for 
  8.53  development and implementation of the 
  8.54  Virtual University. 
  8.55  The board of regents is requested to 
  8.56  establish performance measures for 
  9.1   determining progress in achieving 
  9.2   institutional goals. 
  9.3   The board of regents is requested to 
  9.4   annually prepare an institutional 
  9.5   performance report describing progress 
  9.6   in attaining identified performance 
  9.7   goals.  This report is requested to be 
  9.8   submitted to the legislature by January 
  9.9   15, 1998, and each January thereafter.  
  9.10  The first report should cover the 
  9.11  period ending June 30, 1997.  The 
  9.12  report should include not less than 
  9.13  three years of historical data, if 
  9.14  practicable, for each performance 
  9.15  goal.  The report should be available 
  9.16  to the public by both written and 
  9.17  electronic means. 
  9.18  The commissioner of finance shall place 
  9.19  $10,000,000 of the appropriation in a 
  9.20  performance incentive account.  The 
  9.21  commissioner of finance shall release 
  9.22  $5,000,000 to the University of 
  9.23  Minnesota when the board of regents 
  9.24  certifies that it has submitted the 
  9.25  January 1998 report to the legislature 
  9.26  and $5,000,000 when the board of 
  9.27  regents certifies that it has submitted 
  9.28  the January 1999 report to the 
  9.29  legislature. 
  9.30  This appropriation contains money for 
  9.31  enhancement of recruitment and 
  9.32  collaboration efforts at the College of 
  9.33  Agriculture, Food, and Environmental 
  9.34  Sciences for agriculture and education 
  9.35  programs. 
  9.36  The board is requested to adopt a 
  9.37  resolution to develop a common 
  9.38  numbering convention as required under 
  9.39  Minnesota Statutes, section 135A.08, 
  9.40  subdivision 2. 
  9.41  The board is requested to submit a 
  9.42  progress report on the common numbering 
  9.43  convention to the legislature no later 
  9.44  than February 9, 1998. 
  9.45  The board is requested to submit a plan 
  9.46  to the legislature on how to integrate 
  9.47  technical college coursework into its 
  9.48  two- and four-year degree programs 
  9.49  while maintaining the academic 
  9.50  integrity of its programs.  The report 
  9.51  shall be submitted before February 9, 
  9.52  1998. 
  9.53  (b) Noninstructional Expenditures 
  9.54  The legislature estimates that 
  9.55  noninstructional expenditures will be 
  9.56  $159,433,000 each year.  
  9.57  This appropriation contains money for 
  9.58  development and implementation of the 
  9.59  Minnesota career and education planning 
  9.60  system in partnership with the 
  9.61  Minnesota state colleges and 
  9.62  universities system. 
 10.1   Subd. 3.  Special
 10.2   Appropriation                         63,344,000     63,344,000
 10.3   The amounts expended for each program 
 10.4   in the four categories of special 
 10.5   appropriations shall be separately 
 10.6   identified in the 1999 biennial budget 
 10.7   document. 
 10.8   (a) Agriculture and Extension Service 
 10.9       50,547,000     50,547,000
 10.10  This appropriation is for the 
 10.11  Agricultural Experiment Station, 
 10.12  Minnesota Extension Service, and for 
 10.13  initiatives designed to sustain 
 10.14  Minnesota's renewable natural 
 10.15  resource-based industries. 
 10.16  Any salary increases granted by the 
 10.17  university to personnel paid from the 
 10.18  Minnesota Extension appropriation must 
 10.19  not result in a reduction of the county 
 10.20  portion of the salary payments. 
 10.21  During the biennium, the university 
 10.22  shall maintain an advisory council 
 10.23  system for each experiment station.  
 10.24  The advisory councils must be broadly 
 10.25  representative of range of size and 
 10.26  income distribution of farms and 
 10.27  agribusinesses and must not 
 10.28  disproportionately represent those from 
 10.29  the upper half of the size and income 
 10.30  distributions. 
 10.31  (b) Health Sciences 
 10.32       4,067,000      4,067,000
 10.33  This appropriation is for indigent 
 10.34  patients (county papers), Rural 
 10.35  Physicians Associates Program, the 
 10.36  Veterinary Diagnostic Laboratory, 
 10.37  health sciences research, dental care, 
 10.38  and the Biomedical Engineering Center. 
 10.39  (c) Institute of Technology  
 10.40       1,552,000      1,552,000
 10.41  This appropriation is for the 
 10.42  Geological Survey and the Talented 
 10.43  Youth Mathematics Program. 
 10.44  (d) System Specials 
 10.45       7,179,000      7,179,000
 10.46  This appropriation is for General 
 10.47  Research, Student Loans Matching Money, 
 10.48  Industrial Relations Education, Natural 
 10.49  Resources Research Institute, Center 
 10.50  for Urban and Regional Affairs, Bell 
 10.51  Museum of Natural History, and the 
 10.52  Humphrey Exhibit. 
 10.53  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.54  Subdivision 1.  Total
 11.1   Appropriation                           1,149,000       1,282,000
 11.2   The amounts that may be spent from this 
 11.3   appropriation for each purpose are 
 11.4   specified in the following subdivisions.
 11.5   Subd. 2.  Medical School
 11.6          441,000        455,000
 11.7   The state of Minnesota shall pay a 
 11.8   capitation of $11,047 the first year 
 11.9   and $11,378 the second year for each 
 11.10  student who is a resident of 
 11.11  Minnesota.  The appropriation may be 
 11.12  transferred between years of the 
 11.13  biennium to accommodate enrollment 
 11.14  fluctuations. 
 11.15  The legislature intends that during the 
 11.16  biennium the Mayo foundation use the 
 11.17  capitation money to increase the number 
 11.18  of doctors practicing in rural areas in 
 11.19  need of doctors.  
 11.20  Subd. 3.  Family Practice and
 11.21  Graduate Residency Program
 11.22         408,000        467,000
 11.23  The state of Minnesota provides a 
 11.24  capitation of $15,107 the first year 
 11.25  and $15,560 the second year for each 
 11.26  student. 
 11.27  Subd. 4.  St. Cloud Hospital-Mayo 
 11.28  Family Practice Residency Program 
 11.29         300,000        360,000
 11.30  This appropriation is to the Mayo 
 11.31  foundation to support 10 resident 
 11.32  physicians the first year and 12 
 11.33  resident physicians the second year in 
 11.34  the St. Cloud Hospital-Mayo Family 
 11.35  Practice Residency Program.  The 
 11.36  program shall prepare doctors to 
 11.37  practice primary care medicine in the 
 11.38  rural areas of the state.  It is 
 11.39  intended that this program will improve 
 11.40  health care in rural communities, 
 11.41  provide affordable access to 
 11.42  appropriate medical care, and manage 
 11.43  the treatment of patients in a more 
 11.44  cost-effective manner. 
 11.45                             ARTICLE 2
 11.46       ASSISTING STUDENTS TO FINANCE POST-SECONDARY EDUCATION 
 11.47     Section 1.  Minnesota Statutes 1996, section 136A.121, 
 11.48  subdivision 5, is amended to read: 
 11.49     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 11.50  based on a sharing of responsibility for covering the recognized 
 11.51  cost of attendance by the applicant, the applicant's family, and 
 11.52  the government.  The amount of a financial stipend must not 
 12.1   exceed a grant applicant's recognized cost of attendance, as 
 12.2   defined in subdivision 6, after deducting the following:  
 12.3      (1) the assigned student responsibility of at least 50 48 
 12.4   percent of the cost of attending the institution of the 
 12.5   applicant's choosing; 
 12.6      (2) the assigned family responsibility, as determined by 
 12.7   the federal need analysis, which except that an allowance of up 
 12.8   to $16,000 for post-secondary education savings shall be 
 12.9   subtracted from the net worth calculation in the federal need 
 12.10  analysis.  For (i) dependent students, the assigned family 
 12.11  responsibility is the parental contribution as calculated by the 
 12.12  federal need analysis, and for (ii) independent students, the 
 12.13  assigned family responsibility is the student contribution as 
 12.14  determined by the federal need analysis; and 
 12.15     (3) the amount of a federal Pell grant award for which the 
 12.16  grant applicant is eligible.  
 12.17     The minimum financial stipend is $300 per academic year.  
 12.18     Sec. 2.  Minnesota Statutes 1996, section 136A.121, 
 12.19  subdivision 9a, is amended to read: 
 12.20     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 12.21  grants for four consecutive quarters or three consecutive 
 12.22  semesters during the course of a single fiscal year.  In 
 12.23  calculating a state grant for the fourth quarter or third 
 12.24  semester, the office must use the same calculation as it would 
 12.25  for any other term, except that the calculation must subtract 
 12.26  any Pell grant for which a student would be eligible even if the 
 12.27  student has exhausted the Pell grant for that fiscal year. 
 12.28     Sec. 3.  [136A.1211] [STATE GRANTS.] 
 12.29     The full grant award shall be available for students 
 12.30  carrying 13 or more credits per quarter or semester, or the 
 12.31  equivalent.  The budget shall be prorated per credit for 
 12.32  students carrying less than 13 credits. 
 12.33     Sec. 4.  Minnesota Statutes 1996, section 136A.125, 
 12.34  subdivision 4, is amended to read: 
 12.35     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 12.36  child care grant must be based on: 
 13.1      (1) the income of the applicant and the applicant's spouse, 
 13.2   if any; 
 13.3      (2) the number in the applicant's family, as defined by the 
 13.4   office; and 
 13.5      (3) the number of eligible children in the applicant's 
 13.6   family.  
 13.7      The maximum award to the applicant shall be $1,700 $2,000 
 13.8   for each eligible child per academic year.  The office shall 
 13.9   prepare a chart to show the amount of a grant that will be 
 13.10  awarded per child based on the factors in this subdivision.  The 
 13.11  chart shall include a range of income and family size. 
 13.12     Sec. 5.  [136A.149] [LAW SCHOOL LOAN REPAYMENT ASSISTANCE 
 13.13  PROGRAM.] 
 13.14     Subdivision 1.  [ESTABLISHMENT.] A law school loan 
 13.15  repayment assistance program is established under the 
 13.16  supervision of the higher education services office and the 
 13.17  administration of Loan Repayment Assistance Program of 
 13.18  Minnesota, Inc. to provide grants for reimbursement to attorneys 
 13.19  eligible under criteria for loan repayment assistance. 
 13.20     Subd. 2.  [RESPONSIBILITY OF LOAN REPAYMENT ASSISTANCE 
 13.21  PROGRAM OF MINNESOTA, INC.] Loan Repayment Assistance Program of 
 13.22  Minnesota, Inc. shall administer the reimbursement program.  To 
 13.23  be eligible to receive reimbursement, a person must be a 
 13.24  graduate of a Minnesota law school and have secured full-time 
 13.25  employment as an attorney in Minnesota at a qualifying public 
 13.26  interest organization.  Qualifying organizations include: 
 13.27     (1) Native American tribal governments, court systems, and 
 13.28  public interest organizations; 
 13.29     (2) nonprofit organizations as provided by sections 
 13.30  501(c)(3), 501(c)(4), and 501(c)(5) of the Internal Revenue Code 
 13.31  of 1986, as amended through December 31, 1996; 
 13.32     (3) public defense corporations and Indian child welfare 
 13.33  defense corporations under section 611.216; and 
 13.34     (4) state board of public defense employees under section 
 13.35  611.24. 
 13.36     The reimbursement may be used only for institutional law 
 14.1   school debt. 
 14.2      Subd. 3.  [RESPONSIBILITY OF HIGHER EDUCATION SERVICES 
 14.3   OFFICE.] The higher education services office shall distribute 
 14.4   money each year, contingent upon an appropriation, to Loan 
 14.5   Repayment Assistance Program of Minnesota, Inc. to be used to 
 14.6   award reimbursements under this section.  The office shall not 
 14.7   distribute the money unless Loan Repayment Assistance Program of 
 14.8   Minnesota, Inc. matches the amount with private contributions on 
 14.9   a basis of $2 of the appropriation to each $1 of private 
 14.10  contributions. 
 14.11     Sec. 6.  Minnesota Statutes 1996, section 136A.233, 
 14.12  subdivision 1, is amended to read: 
 14.13     Subdivision 1.  [ALLOCATION ALLOCATIONS TO INSTITUTIONS.] 
 14.14  The higher education services office shall allocate work-study 
 14.15  money to eligible post-secondary institutions according to the 
 14.16  resident full-time equivalent enrollment of all eligible 
 14.17  post-secondary institutions that apply to participate in the 
 14.18  program, and the amount of the allocation that an institution 
 14.19  spent during the previous academic year.  Each institution 
 14.20  wishing to participate in the work-study program must submit, in 
 14.21  accordance with policies and procedures established by the 
 14.22  office, an estimate of the amount of funds needed by the 
 14.23  institution.  Any funds allocated to an institution that exceed 
 14.24  the actual need of the institution shall be reallocated by the 
 14.25  office to other institutions.  An institution may use up to 30 
 14.26  percent of its allocation for student internships with private 
 14.27  employers.  An institution may carry forward or backward the 
 14.28  same percentage of its initial allocation that is authorized 
 14.29  under federal work-study provisions.  
 14.30     Sec. 7.  Minnesota Statutes 1996, section 136A.233, 
 14.31  subdivision 2, is amended to read: 
 14.32     Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
 14.33  to 136A.233, the words defined in this subdivision have the 
 14.34  meanings ascribed to them. 
 14.35     (a) "Eligible student" means a Minnesota resident enrolled 
 14.36  or intending to enroll at least half time in a degree, diploma, 
 15.1   or certificate program in a Minnesota post-secondary institution.
 15.2      (b) "Minnesota resident" means a student who meets the 
 15.3   conditions in section 136A.101, subdivision 8. 
 15.4      (c) "Financial need" means the need for financial 
 15.5   assistance in order to attend a post-secondary institution as 
 15.6   determined by a post-secondary institution according to 
 15.7   guidelines established by the higher education services office. 
 15.8      (d) "Eligible employer" means any eligible post-secondary 
 15.9   institution and any nonprofit, nonsectarian agency or state 
 15.10  institution located in the state of Minnesota, including state 
 15.11  hospitals, and also includes a handicapped person or a person 
 15.12  over 65 who employs a student to provide personal services in or 
 15.13  about the residence of the handicapped person or the person over 
 15.14  65, and a private employer who provides student internships 
 15.15  designed to enhance student knowledge or skill in a way that 
 15.16  would help the student attain full-time employment. 
 15.17     (e) "Eligible post-secondary institution" means any 
 15.18  post-secondary institution eligible for participation in the 
 15.19  Minnesota state grant program as specified in section 136A.101, 
 15.20  subdivision 4. 
 15.21     (f) "Independent student" has the meaning given it in the 
 15.22  Higher Education Act of 1965, United States Code, title 20, 
 15.23  section 1070a-6, and applicable regulations. 
 15.24     (g) "Half-time" for undergraduates has the meaning given in 
 15.25  section 136A.101, subdivision 7b, and for graduate students is 
 15.26  defined by the institution. 
 15.27     Sec. 8.  Minnesota Statutes 1996, section 290.01, 
 15.28  subdivision 19b, is amended to read: 
 15.29     Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
 15.30  individuals, estates, and trusts, there shall be subtracted from 
 15.31  federal taxable income: 
 15.32     (1) interest income on obligations of any authority, 
 15.33  commission, or instrumentality of the United States to the 
 15.34  extent includable in taxable income for federal income tax 
 15.35  purposes but exempt from state income tax under the laws of the 
 15.36  United States; 
 16.1      (2) if included in federal taxable income, the amount of 
 16.2   any overpayment of income tax to Minnesota or to any other 
 16.3   state, for any previous taxable year, whether the amount is 
 16.4   received as a refund or as a credit to another taxable year's 
 16.5   income tax liability; 
 16.6      (3) the amount paid to others not to exceed $650 for each 
 16.7   dependent in grades kindergarten to 6 and $1,000 for each 
 16.8   dependent in grades 7 to 12, for tuition, textbooks, and 
 16.9   transportation of each dependent in attending an elementary or 
 16.10  secondary school situated in Minnesota, North Dakota, South 
 16.11  Dakota, Iowa, or Wisconsin, wherein a resident of this state may 
 16.12  legally fulfill the state's compulsory attendance laws, which is 
 16.13  not operated for profit, and which adheres to the provisions of 
 16.14  the Civil Rights Act of 1964 and chapter 363.  As used in this 
 16.15  clause, "textbooks" includes books and other instructional 
 16.16  materials and equipment used in elementary and secondary schools 
 16.17  in teaching only those subjects legally and commonly taught in 
 16.18  public elementary and secondary schools in this state.  
 16.19  "Textbooks" does not include instructional books and materials 
 16.20  used in the teaching of religious tenets, doctrines, or worship, 
 16.21  the purpose of which is to instill such tenets, doctrines, or 
 16.22  worship, nor does it include books or materials for, or 
 16.23  transportation to, extracurricular activities including sporting 
 16.24  events, musical or dramatic events, speech activities, driver's 
 16.25  education, or similar programs.  In order to qualify for the 
 16.26  subtraction under this clause the taxpayer must elect to itemize 
 16.27  deductions under section 63(e) of the Internal Revenue Code; 
 16.28     (4) to the extent included in federal taxable income, 
 16.29  distributions from a qualified governmental pension plan, an 
 16.30  individual retirement account, simplified employee pension, or 
 16.31  qualified plan covering a self-employed person that represent a 
 16.32  return of contributions that were included in Minnesota gross 
 16.33  income in the taxable year for which the contributions were made 
 16.34  but were deducted or were not included in the computation of 
 16.35  federal adjusted gross income.  The distribution shall be 
 16.36  allocated first to return of contributions until the 
 17.1   contributions included in Minnesota gross income have been 
 17.2   exhausted.  This subtraction applies only to contributions made 
 17.3   in a taxable year prior to 1985; 
 17.4      (5) income as provided under section 290.0802; 
 17.5      (6) the amount of unrecovered accelerated cost recovery 
 17.6   system deductions allowed under subdivision 19g; 
 17.7      (7) to the extent included in federal adjusted gross 
 17.8   income, income realized on disposition of property exempt from 
 17.9   tax under section 290.491; 
 17.10     (8) to the extent not deducted in determining federal 
 17.11  taxable income, the amount paid for health insurance of 
 17.12  self-employed individuals as determined under section 162(l) of 
 17.13  the Internal Revenue Code, except that the 25 percent limit does 
 17.14  not apply.  If the taxpayer deducted insurance payments under 
 17.15  section 213 of the Internal Revenue Code of 1986, the 
 17.16  subtraction under this clause must be reduced by the lesser of: 
 17.17     (i) the total itemized deductions allowed under section 
 17.18  63(d) of the Internal Revenue Code, less state, local, and 
 17.19  foreign income taxes deductible under section 164 of the 
 17.20  Internal Revenue Code and the standard deduction under section 
 17.21  63(c) of the Internal Revenue Code; or 
 17.22     (ii) the lesser of (A) the amount of insurance qualifying 
 17.23  as "medical care" under section 213(d) of the Internal Revenue 
 17.24  Code to the extent not deducted under section 162(1) of the 
 17.25  Internal Revenue Code or excluded from income or (B) the total 
 17.26  amount deductible for medical care under section 213(a); and 
 17.27     (9) the exemption amount allowed under Laws 1995, chapter 
 17.28  255, article 3, section 2, subdivision 3; and 
 17.29     (10) the amounts deposited in or earned on deposits in an 
 17.30  educational savings plan account under section 290.055. 
 17.31     Sec. 9.  [290.055] [EDUCATIONAL SAVINGS PLAN ACCOUNTS.] 
 17.32     Subdivision 1.  [EXCLUSION.] (a) Gross income does not 
 17.33  include the amount, up to a maximum of $10,000, paid in cash 
 17.34  during the taxable year by an individual taxpayer to an 
 17.35  educational savings plan account established under this section, 
 17.36  together with all income earned within the taxable year on the 
 18.1   account.  In the case of a married couple filing separate 
 18.2   returns, the total amount excludable from gross income for 
 18.3   contributions to an educational savings plan account during the 
 18.4   taxable year must not exceed $10,000.  This total exclusion for 
 18.5   a married couple may be taken by either spouse or divided 
 18.6   between them as they elect.  The amount of income earned on any 
 18.7   amount contributed in excess of $10,000 during a taxable year or 
 18.8   in excess of the maximum contribution permitted by paragraph (b) 
 18.9   during all taxable years is not excluded from gross income. 
 18.10     (b) The exclusion shall not be available to an individual 
 18.11  taxpayer with modified adjusted gross income over $50,000, or in 
 18.12  the case of a joint return, $100,000.  The amounts excludable 
 18.13  from gross income for contributions to an educational savings 
 18.14  plan account by an individual for all taxable years must not 
 18.15  exceed $75,000.  In the case of a married individual whose 
 18.16  spouse has filed separate returns, the $75,000 amount must be 
 18.17  reduced by an amount equal to the sum of the contributions 
 18.18  excluded from gross income under this subdivision for all 
 18.19  taxable years by the spouse on a separate return.  If a taxpayer 
 18.20  establishes an educational savings plan account for the benefit 
 18.21  of more than one individual, the limits provided in this 
 18.22  paragraph apply to each account separately. 
 18.23     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
 18.24  following terms have the meanings given. 
 18.25     (a) "Educational savings plan account" means a trust 
 18.26  created or organized in Minnesota for the exclusive benefit of 
 18.27  an individual taxpayer or for an individual who is the child or 
 18.28  grandchild of the taxpayer or for whom the taxpayer is legal 
 18.29  guardian, and who has not reached age 19 when the first deposit 
 18.30  is made in the account, but only if the written governing 
 18.31  instrument creating the trust meets the following requirements: 
 18.32     (1) Contributions will not be accepted for the taxable year 
 18.33  in excess of $10,000 or in excess of $75,000 for all taxable 
 18.34  years, exclusive of income paid or accrued. 
 18.35     (2) The trustee is a financial institution, as defined in 
 18.36  section 47.015, or a credit union, chartered or supervised under 
 19.1   federal or state law, whose accounts are insured by the Federal 
 19.2   Deposit Insurance Corporation, the Federal Savings and Loan 
 19.3   Insurance Corporation, the National Credit Union Administration, 
 19.4   or any agency of this state or any federal agency established 
 19.5   for the purpose of insuring accounts in these financial 
 19.6   institutions. 
 19.7      (3) The assets of the trust must be invested only in 
 19.8   savings or time deposits in amounts fully insured as prescribed 
 19.9   in clause (2).  Funds held in the trust may be commingled for 
 19.10  purposes of investment, but individual records must be 
 19.11  maintained by the trustee for each educational savings plan 
 19.12  account holder that show all transactions in detail. 
 19.13     (4) The entire interest of an individual for whose benefit 
 19.14  the trust is maintained will be distributed for the benefit of 
 19.15  the individual no sooner than the day the individual becomes 18 
 19.16  years of age and no later than the day the individual becomes 30 
 19.17  years of age. 
 19.18     (5) Except as provided in subdivision 4 in the case of a 
 19.19  disability or death, the trustee will distribute no part of the 
 19.20  funds in the account unless the trustee:  (i) verifies that the 
 19.21  money is to be used for a qualified expenditure and provides 
 19.22  that the instrument of payment is payable to the post-secondary 
 19.23  institution; or (ii) withholds eight percent of the amount 
 19.24  withdrawn from the account and remits it to the commissioner of 
 19.25  revenue within ten days after the date of the withdrawal.  The 
 19.26  amount so withheld must be applied to the liability of the 
 19.27  taxpayer under subdivision 4. 
 19.28     (b) "Qualified expenditure" means an expenditure for a 
 19.29  beneficiary student for tuition for a program or course of study 
 19.30  that applies to an accredited degree, diploma, or certificate at 
 19.31  a public or private post-secondary institution.  The student 
 19.32  must be at least 18 years of age and no more than 29 years of 
 19.33  age. 
 19.34     Subd. 3.  [SANCTIONS ON TRUSTEE.] Except as provided in 
 19.35  subdivision 4, a trustee who fails to pay to or deposit with the 
 19.36  commissioner any sum required by subdivision 2 to be deducted, 
 20.1   withheld, and paid, shall be personally and individually liable 
 20.2   to the state for payment of that sum.  Failure to comply with 
 20.3   the requirements of subdivision 2, paragraph (a), clause (5), 
 20.4   shall be subject to the penalties and interest applicable to 
 20.5   withholding tax violations under chapter 289A. 
 20.6      If the trustee, in violation of subdivision 2, fails to 
 20.7   deduct and withhold the amounts required by subdivision 2 and 
 20.8   thereafter the taxes against which any amount withheld may be 
 20.9   credited are paid, the amounts required to be deducted and 
 20.10  withheld shall not be collected from the trustee.  Payment of 
 20.11  the tax due under subdivision 4 does not relieve the trustee 
 20.12  from liability for any penalties and interest otherwise 
 20.13  applicable in respect of its failure to deduct and withhold.  
 20.14     Subd. 4.  [DISTRIBUTIONS; TAX LIABILITY.] (a) Any amount 
 20.15  paid or distributed out of an educational savings plan account 
 20.16  must be included in gross income by the taxpayer for the taxable 
 20.17  year in which the distribution is received, unless the amount is 
 20.18  used exclusively in connection with a qualified expenditure. 
 20.19  This paragraph does not apply to a distribution out of an 
 20.20  educational savings plan account to the extent that it was not 
 20.21  excluded from gross income either as educational savings plan 
 20.22  account contributions or income derived from the contribution. 
 20.23     (b) If a distribution from an education savings plan 
 20.24  account to an individual for whose benefit the account was 
 20.25  established is made and not used in connection with a qualified 
 20.26  expenditure, the tax liability of the taxpayer who made the 
 20.27  deposit in the account under this chapter for the taxable year 
 20.28  in which the distribution is received must be increased by ten 
 20.29  percent of the amount of the distribution which is also 
 20.30  includable in the gross income of that taxpayer for the taxable 
 20.31  year.  The tax liability shall not be reduced by any 
 20.32  nonrefundable credits.  If, during any taxable year, the 
 20.33  taxpayer or other individual for whose benefit the account was 
 20.34  established uses the account or any portion of it as security 
 20.35  for a loan, the portion so used is treated as distributed to the 
 20.36  taxpayer.  The liability is not imposed if the payment or 
 21.1   distribution is attributable to the death or disability of the 
 21.2   taxpayer or the other individual for whose benefit the account 
 21.3   was established.  For purposes of this paragraph, disability has 
 21.4   the meaning given it in section 290A.03, subdivision 10.  An 
 21.5   individual is not disabled unless the individual furnishes proof 
 21.6   of the disability in the form and manner required by the 
 21.7   commissioner of revenue.  Upon the death of the taxpayer who 
 21.8   made deposits in the account, the money in the account is 
 21.9   payable to the estate of the taxpayer.  Upon the death of an 
 21.10  individual for whose benefit the account had been established, 
 21.11  the money in the account is payable to the taxpayer who made 
 21.12  deposits in the account. 
 21.13     Subd. 5.  [REPORTS.] The trustee of an educational savings 
 21.14  plan account shall make reports regarding the account to the 
 21.15  commissioner of revenue, to the taxpayer who made the deposits 
 21.16  in the account, and to the individual for whom the account is 
 21.17  maintained with respect to contributions, distributions, and 
 21.18  other matters required by rules adopted by the commissioner of 
 21.19  revenue.  The reports required by this subdivision must be filed 
 21.20  at a time and in a manner required by the rules.  A person who 
 21.21  fails to file a required report is subject to a penalty of $10 
 21.22  to be paid to the commissioner of revenue for each instance of 
 21.23  failure to file. 
 21.24     Sec. 10.  [STUDENT FEES.] 
 21.25     By December 1, 1998, the higher education services office 
 21.26  shall provide information to the public post-secondary boards 
 21.27  advising them how to maximize financial aid when establishing 
 21.28  student fees. 
 21.29     Sec. 11.  [NATIONAL SERVICE SCHOLARS PROGRAM.] 
 21.30     A national service scholars program is established under 
 21.31  the administration of the higher education services office to 
 21.32  match scholarship grants made under the National Service 
 21.33  Scholars program of the Corporation for National Service to 
 21.34  students attending Minnesota high schools and who will attend a 
 21.35  Minnesota post-secondary institution.  Not more than one 
 21.36  matching grant of $500 may be made for each high school per 
 22.1   year.  The state money shall be available until June 30, 1999, 
 22.2   if federal money is available. 
 22.3      Sec. 12.  [EFFECTIVE DATE.] 
 22.4      Sections 8 and 9 are effective for taxable years beginning 
 22.5   after December 31, 1996. 
 22.6                              ARTICLE 3 
 22.7                           OTHER PROVISIONS 
 22.8      Section 1.  Minnesota Statutes 1996, section 16A.69, 
 22.9   subdivision 2, is amended to read: 
 22.10     Subd. 2.  [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of 
 22.11  final contracts for the completion of a project for construction 
 22.12  or other permanent improvement, or upon the abandonment of the 
 22.13  project, the agency to whom the appropriation was made may 
 22.14  transfer the unencumbered balance in the project account to 
 22.15  another project enumerated in the same section of that 
 22.16  appropriation act.  The transfer must be made only to cover bids 
 22.17  for the other project that were higher than was estimated when 
 22.18  the appropriation for the other project was made and not to 
 22.19  cover an expansion of the other project.  The money transferred 
 22.20  under this section is appropriated for the purposes for which 
 22.21  transferred.  For transfers for technical colleges by the state 
 22.22  board of technical of trustees of the Minnesota state colleges 
 22.23  and universities, the total cost of both projects and the 
 22.24  required local share for both projects are adjusted 
 22.25  accordingly.  The agency proposing a transfer shall report to 
 22.26  the chair of the senate finance committee and the chair of the 
 22.27  house of representatives ways and means committee before the 
 22.28  transfer is made under this subdivision. 
 22.29     Sec. 2.  Minnesota Statutes 1996, section 125.1385, 
 22.30  subdivision 2, is amended to read: 
 22.31     Subd. 2.  [COMPENSATION.] State money for faculty exchange 
 22.32  programs is to compensate for expenses that are unavoidable and 
 22.33  beyond the normal living expenses exchange participants would 
 22.34  incur if they were not involved in this exchange.  The state 
 22.35  university board of trustees of the Minnesota state colleges and 
 22.36  universities, the board of regents, or of the University of 
 23.1   Minnesota, and their respective campuses, in conjunction with 
 23.2   the participating school districts, must control costs for all 
 23.3   participants as much as possible, through means such as 
 23.4   arranging housing exchanges, providing campus housing, and 
 23.5   providing university, state, or school district cars for 
 23.6   transportation.  The boards and campuses may seek other sources 
 23.7   of funding to supplement these appropriations, if necessary. 
 23.8      Sec. 3.  Minnesota Statutes 1996, section 126.56, 
 23.9   subdivision 2, is amended to read: 
 23.10     Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
 23.11  scholarship, a student shall: 
 23.12     (1) be a United States citizen or permanent resident of the 
 23.13  United States; 
 23.14     (2) be a resident of Minnesota; 
 23.15     (3) attend an eligible program; 
 23.16     (4) have completed at least one year of secondary school 
 23.17  but not have graduated from high school; 
 23.18     (5) have earned at least a B average or its equivalent 
 23.19  during the semester or quarter prior to application, or have 
 23.20  earned at least a B average or its equivalent during the 
 23.21  semester or quarter prior to application in the academic subject 
 23.22  area applicable to the summer program the student wishes to 
 23.23  attend; and 
 23.24     (6) demonstrate need for financial assistance; and 
 23.25     (7) be 19 years of age or younger. 
 23.26     Sec. 4.  Minnesota Statutes 1996, section 126.56, 
 23.27  subdivision 4a, is amended to read: 
 23.28     Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
 23.29  only for an eligible program.  To be eligible, a program must: 
 23.30     (1) provide, as its primary purpose, academic instruction 
 23.31  for student enrichment in curricular areas including, but not 
 23.32  limited to, communications, humanities, social studies, social 
 23.33  science, science, mathematics, art, or foreign languages; 
 23.34     (2) not be offered for credit to post-secondary students; 
 23.35     (3) not provide remedial instruction; 
 23.36     (4) meet any other program requirements established by the 
 24.1   state board of education and the higher education services 
 24.2   office; and 
 24.3      (5) be approved by the commissioner director of the higher 
 24.4   education services office.  
 24.5      Sec. 5.  Minnesota Statutes 1996, section 126.56, 
 24.6   subdivision 7, is amended to read: 
 24.7      Subd. 7.  [ADMINISTRATION.] The higher education services 
 24.8   office and commissioner shall determine the time and manner for 
 24.9   scholarship applications, awards, and program approval. 
 24.10     Sec. 6.  Minnesota Statutes 1996, section 135A.031, 
 24.11  subdivision 2, is amended to read: 
 24.12     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
 24.13  state share of the estimated expenditures for instruction shall 
 24.14  vary for some categories of students, as designated in this 
 24.15  subdivision. 
 24.16     (a) The state must provide at least 67 percent of the 
 24.17  estimated expenditures for: 
 24.18     (1) students who resided in the state for at least one 
 24.19  calendar year prior to applying for admission or dependent 
 24.20  students whose parent or legal guardian resides in Minnesota at 
 24.21  the time the student applies; 
 24.22     (2) Minnesota residents who can demonstrate that they were 
 24.23  temporarily absent from the state without establishing residency 
 24.24  elsewhere; 
 24.25     (3) veterans of the armed services discharged within one 
 24.26  year of date of attendance who evidence intent to establish 
 24.27  residency in Minnesota; 
 24.28     (4) residents of other states or provinces who are 
 24.29  attending a Minnesota institution under a tuition reciprocity 
 24.30  agreement; and 
 24.31     (4) (5) students who have been in Minnesota as migrant 
 24.32  farmworkers, as defined in the Code of Federal Regulations, 
 24.33  title 20, section 633.104, over a period of at least two years 
 24.34  immediately before admission or readmission to a Minnesota 
 24.35  public post-secondary institution, or students who are 
 24.36  dependents of such migrant farmworkers. 
 25.1      (b) The definition of full year equivalent for purposes of 
 25.2   the formula calculations in this chapter is twice the normal 
 25.3   value for the following enrollments: 
 25.4      (1) students who are concurrently enrolled in a public 
 25.5   secondary school and for whom the institution is receiving any 
 25.6   compensation under the post-secondary enrollment options act; 
 25.7   and 
 25.8      (2) students enrolled under the student exchange program of 
 25.9   the Midwest Compact. 
 25.10     (c) The state may not provide any of the estimated 
 25.11  expenditures for undergraduate students (1) who do not meet the 
 25.12  residency criteria under paragraph (a), or (2) who have 
 25.13  completed, without receiving a baccalaureate degree, 48 or more 
 25.14  quarter credits or the equivalent, applicable toward the degree, 
 25.15  beyond the number required for a baccalaureate in their major. 
 25.16  Credits for courses in which a student received a grade of "F" 
 25.17  or "W" shall be counted toward this maximum, as if the credits 
 25.18  had been earned. 
 25.19     Sec. 7.  Minnesota Statutes 1996, section 135A.052, 
 25.20  subdivision 1, is amended to read: 
 25.21     Subdivision 1.  [STATEMENT OF MISSIONS.] The legislature 
 25.22  recognizes each public post-secondary system to have has a 
 25.23  distinctive mission within the overall provision of public 
 25.24  higher education in the state and a responsibility to cooperate 
 25.25  with the other systems system.  These missions are as follows: 
 25.26     (1) the technical college system shall offer vocational 
 25.27  training and education to prepare students for skilled 
 25.28  occupations that do not require a baccalaureate degree; 
 25.29     (2) the community college system shall offer lower division 
 25.30  instruction in academic programs, occupational programs in which 
 25.31  all credits earned will be accepted for transfer to a 
 25.32  baccalaureate degree in the same field of study, and remedial 
 25.33  studies, for students transferring to baccalaureate institutions 
 25.34  and for those seeking associate degrees; 
 25.35     (3) the state university system shall offer undergraduate 
 25.36  and graduate instruction through the master's degree, including 
 26.1   specialist certificates, in the liberal arts and sciences and 
 26.2   professional education; and 
 26.3      (a) The Minnesota state colleges and universities shall 
 26.4   provide accessible high quality, future-oriented education and 
 26.5   community service through technical, prebaccalaureate, 
 26.6   baccalaureate, master's, occupational, and continuing education 
 26.7   programs.  The programs include: 
 26.8      (1) technical and occupational education programs which 
 26.9   prepare students for skilled occupations that do not require a 
 26.10  baccalaureate degree, and in which credits earned may be 
 26.11  accepted for transfer to a baccalaureate degree; 
 26.12     (2) prebaccalaureate programs which offer lower division 
 26.13  instruction in academic programs, occupational programs in which 
 26.14  credits earned will be accepted for transfer to a baccalaureate 
 26.15  degree, and remedial studies; and 
 26.16     (3) baccalaureate and graduate programs which offer 
 26.17  undergraduate and graduate instruction through the master's 
 26.18  degree, including specialist certificates, in the liberal arts 
 26.19  and sciences and professional education. 
 26.20     (4) (b) The University of Minnesota shall offer 
 26.21  undergraduate, graduate, and professional instruction through 
 26.22  the doctoral degree, and shall be the primary state supported 
 26.23  academic agency for research and extension services. 
 26.24     (c) It is part of the mission of each system that within 
 26.25  the system's resources the system's governing board and 
 26.26  chancellor or president shall endeavor to: 
 26.27     (a) (1) prevent the waste or unnecessary spending of public 
 26.28  money; 
 26.29     (b) (2) use innovative fiscal and human resource practices 
 26.30  to manage the state's resources and operate the system as 
 26.31  efficiently as possible; 
 26.32     (c) (3) coordinate the system's activities wherever 
 26.33  appropriate with the activities of other systems and 
 26.34  governmental agencies; 
 26.35     (d) (4) use technology where appropriate to increase system 
 26.36  productivity, improve customer service, increase public access 
 27.1   to information about the system, and increase public 
 27.2   participation in the business of the system; 
 27.3      (e) (5) utilize constructive and cooperative 
 27.4   labor-management practices to the extent otherwise required by 
 27.5   chapters 43A and 179A; and 
 27.6      (f) (6) recommend to the legislature appropriate changes in 
 27.7   law necessary to carry out the mission of the system. 
 27.8      Sec. 8.  Minnesota Statutes 1996, section 135A.08, 
 27.9   subdivision 2, is amended to read: 
 27.10     Subd. 2.  [COMMON NUMBERING; CREDIT TRANSFER.] To 
 27.11  facilitate credit transfer between systems, the regents of the 
 27.12  University of Minnesota and the trustees of the Minnesota state 
 27.13  colleges and universities shall, as soon as practicable, develop 
 27.14  and maintain a common numbering convention to for courses which 
 27.15  are substantially equivalent in subject matter.  The common 
 27.16  numbering convention shall also distinguish remedial, lower 
 27.17  division, upper division, and graduate level coursework.  The 
 27.18  governing boards of private institutions that grant associate 
 27.19  and baccalaureate degrees are requested to cooperate in the 
 27.20  development of this numbering convention. 
 27.21     Sec. 9.  Minnesota Statutes 1996, section 136A.01, 
 27.22  subdivision 2, is amended to read: 
 27.23     Subd. 2.  [RESPONSIBILITIES.] The higher education services 
 27.24  office is responsible for: 
 27.25     (1) necessary state level administration of financial aid 
 27.26  programs, including accounting, auditing, and disbursing state 
 27.27  and federal financial aid funds, and reporting on financial aid 
 27.28  programs to the governor and the legislature; 
 27.29     (2) approval, registration, licensing, and financial aid 
 27.30  eligibility of private collegiate and career schools, under 
 27.31  sections 136A.61 to 136A.71 and chapter 141; 
 27.32     (3) administering the telecommunications council under Laws 
 27.33  1993, First Special Session chapter 2, article 5, section 2, the 
 27.34  Learning Network of Minnesota, and the statewide library task 
 27.35  force; 
 27.36     (4) negotiating and administering reciprocity agreements; 
 28.1      (5) publishing and distributing financial aid information 
 28.2   and materials, and other information and materials under section 
 28.3   136A.87, to students and parents; 
 28.4      (6) collecting and maintaining student enrollment and 
 28.5   financial aid data; 
 28.6      (7) administering the federal programs that affect students 
 28.7   and institutions on a statewide basis; and 
 28.8      (8) issuing revenue bonds, debt, notes, revenue refunding 
 28.9   bonds, and other obligations under sections 136A.01 to 136A.1791 
 28.10  to provide funds to make loans to students attending 
 28.11  post-secondary institutions; and 
 28.12     (9) prescribing policies, procedures, and rules under 
 28.13  chapter 14 necessary to administer the programs under its 
 28.14  supervision. 
 28.15     Sec. 10.  Minnesota Statutes 1996, section 136A.01, is 
 28.16  amended by adding a subdivision to read: 
 28.17     Subd. 3.  [SUCCESSOR STATUS.] The office is the legal 
 28.18  successor in all respects of the Minnesota higher education 
 28.19  coordinating board established by Laws 1965, chapter 809, 
 28.20  article 32, and all bonds, resolutions, contracts, and 
 28.21  liabilities of the Minnesota higher education coordinating board 
 28.22  are the bonds, resolutions, contracts, and liabilities of the 
 28.23  office. 
 28.24     Sec. 11.  Minnesota Statutes 1996, section 136A.03, is 
 28.25  amended to read: 
 28.26     136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
 28.27     The director of the higher education services office shall 
 28.28  possess the powers and perform the duties as prescribed by the 
 28.29  higher education services council and shall serve in the 
 28.30  unclassified service of the state civil service.  The director, 
 28.31  or the director's designated representative, on behalf of the 
 28.32  office is authorized to sign contracts and execute all 
 28.33  instruments necessary or appropriate to carry out the purposes 
 28.34  of sections 136A.01 to 136A.1791 for the office.  The salary of 
 28.35  the director shall be established by the higher education 
 28.36  services council according to section 15A.081, subdivision 1.  
 29.1   The director shall be a person qualified by training or 
 29.2   experience in the field of higher education or in financial aid 
 29.3   administration.  The director may appoint other professional 
 29.4   employees who shall serve in the unclassified service of the 
 29.5   state civil service.  All other employees shall be in the 
 29.6   classified civil service.  
 29.7      An officer or professional employee in the unclassified 
 29.8   service as provided in this section is a person who has studied 
 29.9   higher education or a related field at the graduate level or has 
 29.10  similar experience and who is qualified for a career in 
 29.11  financial aid and other aspects of higher education and for 
 29.12  activities in keeping with the planning and administrative 
 29.13  responsibilities of the office and who is appointed to assume 
 29.14  responsibility for administration of educational programs or 
 29.15  research in matters of higher education. 
 29.16     Sec. 12.  Minnesota Statutes 1996, section 136A.121, 
 29.17  subdivision 7, is amended to read: 
 29.18     Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
 29.19  appropriated is determined by the office to be insufficient to 
 29.20  make full awards to applicants under subdivision 5, before any 
 29.21  award for that year has been disbursed, awards must be reduced 
 29.22  by: 
 29.23     (1) adding a surcharge to the contribution of the 
 29.24  applicant's parents, assigned family responsibility in 
 29.25  subdivision 5, clause (2); and then 
 29.26     (2) adding a percentage increase in the applicant's 
 29.27  contribution assigned student responsibility in subdivision 5, 
 29.28  clause (1).  
 29.29     Sec. 13.  Minnesota Statutes 1996, section 136A.125, 
 29.30  subdivision 3, is amended to read: 
 29.31     Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
 29.32  post-secondary institution, a Minnesota private, baccalaureate 
 29.33  degree granting college or university, or a Minnesota 
 29.34  nonprofit or private, for-profit two-year vocational technical 
 29.35  school granting associate degrees is eligible to receive child 
 29.36  care funds from the office and disburse them to eligible 
 30.1   students. 
 30.2      Sec. 14.  Minnesota Statutes 1996, section 136A.136, 
 30.3   subdivision 2, is amended to read: 
 30.4      Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
 30.5   FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
 30.6   foundation's project LINC shall administer the grant program and 
 30.7   award grants to eligible health care facility employees.  To be 
 30.8   eligible to receive a grant, a person must be: 
 30.9      (1) an employee of a health care facility located in 
 30.10  Minnesota, whom the facility has recommended to the metropolitan 
 30.11  healthcare foundation's project LINC for consideration; 
 30.12     (2) working part time, up to 32 less hours than their 
 30.13  regular schedule per pay period, for the health care 
 30.14  facility organization, while maintaining full salary and their 
 30.15  original benefits and a salary greater than the number of hours 
 30.16  worked; 
 30.17     (3) enrolled full time in a Minnesota school or college of 
 30.18  nursing to complete a baccalaureate or master's degree in 
 30.19  nursing; and 
 30.20     (4) a resident of the state of Minnesota. 
 30.21     The grant must be awarded for one academic year but is 
 30.22  renewable for a maximum of six semesters or nine quarters of 
 30.23  full-time study, or their equivalent.  The grant must be used 
 30.24  for tuition, fees, and books.  Priority in awarding grants shall 
 30.25  be given to persons with the greatest financial need.  The 
 30.26  health care facility may require its employee to commit to a 
 30.27  reasonable postprogram completion of employment at the health 
 30.28  care facility as a condition for the financial support the 
 30.29  facility provides. 
 30.30     Sec. 15.  Minnesota Statutes 1996, section 136A.15, is 
 30.31  amended by adding a subdivision to read: 
 30.32     Subd. 2a.  "Council" means the higher education services 
 30.33  council under section 136A.011. 
 30.34     Sec. 16.  Minnesota Statutes 1996, section 136A.16, 
 30.35  subdivision 1, is amended to read: 
 30.36     Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
 31.1   higher education services office is designated as the 
 31.2   administrative agency for carrying out the purposes and terms of 
 31.3   sections 136A.15 136A.01 to 136A.1702 136A.1791.  The office may 
 31.4   establish one or more loan programs. 
 31.5      Sec. 17.  Minnesota Statutes 1996, section 136A.16, 
 31.6   subdivision 2, is amended to read: 
 31.7      Subd. 2.  The office shall adopt policies and prescribe 
 31.8   appropriate rules to carry out the purposes of sections 136A.15 
 31.9   136A.01 to 136A.1702 136A.1791.  The policies and rules except 
 31.10  as they relate to loans under section 136A.1701 must be 
 31.11  compatible with the provisions of the National Vocational 
 31.12  Student Loan Insurance Act of 1965 and the provisions of title 
 31.13  IV of the Higher Education Act of 1965, and any amendments 
 31.14  thereof. 
 31.15     Sec. 18.  Minnesota Statutes 1996, section 136A.16, 
 31.16  subdivision 8, is amended to read: 
 31.17     Subd. 8.  Money made available to the office that is not 
 31.18  immediately needed for the purposes of sections 136A.15 136A.01 
 31.19  to 136A.1702 136A.1791 may be invested by the office.  The money 
 31.20  must be invested in bonds, certificates of indebtedness, and 
 31.21  other fixed income securities, except preferred stocks, which 
 31.22  are legal investments for the permanent school fund.  The money 
 31.23  may also be invested in prime quality commercial paper that is 
 31.24  eligible for investment in the state employees retirement fund.  
 31.25  All interest and profits from such investments inure to the 
 31.26  benefit of the office or may be pledged for security of bonds 
 31.27  issued by the office or its predecessor, the Minnesota higher 
 31.28  education coordinating board. 
 31.29     Sec. 19.  Minnesota Statutes 1996, section 136A.16, is 
 31.30  amended by adding a subdivision to read: 
 31.31     Subd. 13.  The office may sue and be sued. 
 31.32     Sec. 20.  Minnesota Statutes 1996, section 136A.16, is 
 31.33  amended by adding a subdivision to read: 
 31.34     Subd. 14.  The office may sell at public or private sale, 
 31.35  at the price or prices determined by the office, any note or 
 31.36  other instrument or obligation evidencing or securing a loan 
 32.1   made by the office or its predecessor, the Minnesota higher 
 32.2   education coordinating board. 
 32.3      Sec. 21.  Minnesota Statutes 1996, section 136A.16, is 
 32.4   amended by adding a subdivision to read: 
 32.5      Subd. 15.  The office may obtain municipal bond insurance, 
 32.6   letters of credit, surety obligations, or similar agreements 
 32.7   from financial institutions. 
 32.8      Sec. 22.  Minnesota Statutes 1996, section 136A.171, is 
 32.9   amended to read: 
 32.10     136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.] 
 32.11     The higher education services office may issue revenue 
 32.12  bonds to obtain funds for loans made in accordance with the 
 32.13  provisions of this chapter.  The aggregate amount of revenue 
 32.14  bonds, issued directly by the office, outstanding at any one 
 32.15  time, not including refunded bonds or otherwise defeased or 
 32.16  discharged bonds, shall not exceed $550,000,000.  Proceeds from 
 32.17  the issuance of bonds may be held and invested by the office 
 32.18  pending disbursement in the form of loans.  All interest and 
 32.19  profits from the investments shall inure to the benefit of the 
 32.20  office and shall be available to the board office for the same 
 32.21  purposes as the proceeds from the sale of revenue bonds 
 32.22  including, but not limited to, costs incurred in administering 
 32.23  loans under this chapter and loan reserve funds. 
 32.24     Sec. 23.  Minnesota Statutes 1996, section 136A.173, 
 32.25  subdivision 1, is amended to read: 
 32.26     Subdivision 1.  The office may from time to time issue 
 32.27  revenue bonds for purposes of sections 136A.15 to 136A.179 
 32.28  136A.1791 and all such revenue bonds, notes, bond anticipation 
 32.29  notes, or other obligations of the office issued pursuant to 
 32.30  sections 136A.15 to 136A.179 136A.1791 shall be and are hereby 
 32.31  declared to be negotiable for all purposes notwithstanding their 
 32.32  payment from a limited source and without regard to any other 
 32.33  law or laws.  In anticipation of the sale of such revenue bonds, 
 32.34  the office may issue negotiable bond anticipation notes and may 
 32.35  renew the same from time to time, but the maximum maturity of 
 32.36  any such note, including renewals thereof, shall not exceed five 
 33.1   years from the date of issue of the original note.  Such notes 
 33.2   shall be paid from any revenues of the office available therefor 
 33.3   and not otherwise pledged, or from the proceeds of sale of the 
 33.4   revenue bonds of the office in anticipation of which they were 
 33.5   issued.  The notes shall be issued in the same manner as the 
 33.6   revenue bonds.  Such notes and the resolution or resolutions 
 33.7   authorizing the same may contain any provisions, conditions, or 
 33.8   limitations which a bond resolution or of the office council may 
 33.9   contain. 
 33.10     Sec. 24.  Minnesota Statutes 1996, section 136A.173, 
 33.11  subdivision 3, is amended to read: 
 33.12     Subd. 3.  The revenue bonds may be issued as serial bonds 
 33.13  or as term bonds, or the office, in its discretion, may issue 
 33.14  bonds of both types.  The revenue bonds shall be authorized by 
 33.15  resolution of the members of the office council and shall bear 
 33.16  such date or dates, mature at such time or times, not exceeding 
 33.17  50 years from their respective dates, bear interest at such rate 
 33.18  or rates, payable at such time or times, be in denominations, be 
 33.19  in such form, either coupon or registered, carry such 
 33.20  registration privileges, be executed in such manner, be payable 
 33.21  in lawful money of the United States of America at such place or 
 33.22  places, and be subject to such terms of redemption, as such 
 33.23  resolution or resolutions may provide.  The revenue bonds or 
 33.24  notes may be sold at public or private sale for such price or 
 33.25  prices as the office council shall determine.  Pending 
 33.26  preparation of the definitive bonds, the office may issue 
 33.27  interim receipts or certificates which shall be exchanged for 
 33.28  such definite bonds. 
 33.29     Sec. 25.  Minnesota Statutes 1996, section 136A.173, 
 33.30  subdivision 5, is amended to read: 
 33.31     Subd. 5.  Neither the members of the council, the office, 
 33.32  nor any person executing the revenue bonds or notes shall be 
 33.33  liable personally on the revenue bonds or notes or be subject to 
 33.34  any personal liability or accountability by reason of the 
 33.35  issuance thereof. 
 33.36     Sec. 26.  Minnesota Statutes 1996, section 136A.174, is 
 34.1   amended to read: 
 34.2      136A.174 [SECURITY FOR BONDS.] 
 34.3      In the discretion of the office any revenue bonds issued 
 34.4   under the provisions of sections 136A.15 to 136A.179 136A.1791 
 34.5   may be secured by a trust agreement by and between the office 
 34.6   and a corporate trustee or trustees, which may be any trust 
 34.7   company or bank having the powers of a trust company within the 
 34.8   state.  Such trust agreement or the resolution providing for the 
 34.9   issuance of such revenue bonds may pledge or assign the revenues 
 34.10  to be received or proceeds of any contract or contracts pledged 
 34.11  or any portion thereof.  Such trust agreement or resolution 
 34.12  providing for the issuance of such revenue bonds may contain 
 34.13  such provisions for protecting and enforcing the rights and 
 34.14  remedies of the bondholders as may be reasonable and proper and 
 34.15  not in violation of laws, including particularly such provisions 
 34.16  as have hereinabove been specifically authorized to be included 
 34.17  in any resolution or resolutions of the office council 
 34.18  authorizing revenue bonds thereof.  Any bank or trust company 
 34.19  incorporated under the laws of the state which may act as 
 34.20  depository of the proceeds of bonds or of revenues or other 
 34.21  moneys may furnish such indemnifying bonds or pledges such 
 34.22  securities as may be required by the office.  Any such trust 
 34.23  agreement may set forth the rights and remedies of the 
 34.24  bondholders and of the trustee or trustees and may restrict the 
 34.25  individual right of action by bondholders.  In addition to the 
 34.26  foregoing, any such trust agreement or resolution may contain 
 34.27  such other provisions as the office may deem reasonable and 
 34.28  proper for the security of the bondholders. 
 34.29     Sec. 27.  Minnesota Statutes 1996, section 136A.175, 
 34.30  subdivision 1, is amended to read: 
 34.31     Subdivision 1.  The office is hereby authorized to provide 
 34.32  for the issuance of revenue bonds of the office for the purpose 
 34.33  of refunding any revenue bonds of the office or its predecessor, 
 34.34  the Minnesota higher education coordinating board, then 
 34.35  outstanding, including the payment of any redemption premium 
 34.36  thereon and any interest accrued or to accrue to the earliest or 
 35.1   any subsequent date of redemption, purchase or maturity of such 
 35.2   revenue bonds. 
 35.3      Sec. 28.  Minnesota Statutes 1996, section 136A.175, 
 35.4   subdivision 2, is amended to read: 
 35.5      Subd. 2.  The proceeds of any such revenue bonds issued for 
 35.6   the purpose of refunding outstanding revenue bonds may, in the 
 35.7   discretion of the office, be applied to the purchase or 
 35.8   retirement at maturity or redemption of such outstanding revenue 
 35.9   bonds of the office or its predecessor, the Minnesota higher 
 35.10  education coordinating board, either on their earliest or any 
 35.11  subsequent redemption date or upon the purchase or at the 
 35.12  maturity thereof and may, pending such application be placed in 
 35.13  escrow to such purchase or retirement at maturity or redemption 
 35.14  on such date as may be determined by the office. 
 35.15     Sec. 29.  [136A.1791] [PUBLIC PURPOSE; TAX FREE STATUS.] 
 35.16     The exercise of the powers granted under sections 136A.15 
 35.17  to 136A.1791 will be in all respects for the benefit of the 
 35.18  people of this state, for the increase of their commerce, 
 35.19  welfare, and prosperity, and for the improvement of their health 
 35.20  and living conditions, and as providing loans by the office or 
 35.21  its agent will constitute the performance of an essential public 
 35.22  function. 
 35.23     Sec. 30.  Minnesota Statutes 1996, section 136A.29, 
 35.24  subdivision 9, is amended to read: 
 35.25     Subd. 9.  The authority is authorized and empowered to 
 35.26  issue revenue bonds whose aggregate principal amount at any time 
 35.27  shall not exceed $350,000,000 $500,000,000 and to issue notes, 
 35.28  bond anticipation notes, and revenue refunding bonds of the 
 35.29  authority under the provisions of sections 136A.25 to 136A.42, 
 35.30  to provide funds for acquiring, constructing, reconstructing, 
 35.31  enlarging, remodeling, renovating, improving, furnishing, or 
 35.32  equipping one or more projects or parts thereof. 
 35.33     Sec. 31.  Minnesota Statutes 1996, section 136F.05, is 
 35.34  amended to read: 
 35.35     136F.05 [MISSIONS.] 
 35.36     The mission of the board is to provide programs of study 
 36.1   that meet the needs of students for occupational, general, 
 36.2   baccalaureate, and graduate education.  The state colleges and 
 36.3   universities, community colleges, and technical colleges shall 
 36.4   have distinct missions as the mission provided in section 
 36.5   135A.052, subdivision 1.  Within that statutory definition and 
 36.6   subject to the approval of the board, each community college, 
 36.7   consolidated college, state university, and technical college 
 36.8   may develop its own distinct campus mission.  The board shall 
 36.9   develop administrative arrangements that make possible the 
 36.10  efficient use of the facilities and staff of the technical 
 36.11  colleges, community colleges, consolidated colleges, and state 
 36.12  universities for providing these several different programs of 
 36.13  study, so that students may have the benefit of improved and 
 36.14  broader course offerings, ease of transfer among schools and 
 36.15  programs, integrated course credit, coordinated degree programs, 
 36.16  and coordinated financial aid.  In carrying out the merger of 
 36.17  the three separate systems, the board shall control 
 36.18  administrative costs by eliminating duplicative administrative 
 36.19  positions and course offerings. 
 36.20     Sec. 32.  Minnesota Statutes 1996, section 216C.27, 
 36.21  subdivision 7, is amended to read: 
 36.22     Subd. 7.  [BUILDING EVALUATORS.] The commissioner shall 
 36.23  certify evaluators in each county of the state who are qualified 
 36.24  to determine the compliance of a residence with applicable 
 36.25  energy efficiency standards.  The commissioner shall, by rule 
 36.26  pursuant to chapter 14, adopt standards for the certification 
 36.27  and performance of evaluators and set a fee for the 
 36.28  certification of evaluators which is sufficient to cover the 
 36.29  ongoing costs of the program once it is established.  The 
 36.30  commissioner shall encourage the certification of existing 
 36.31  groups of trained municipal personnel and qualified individuals 
 36.32  from community-based organizations and public service 
 36.33  organizations.  Each certified evaluator shall, on request of 
 36.34  the owner, inspect any residence and report the degree to which 
 36.35  it complies with applicable energy efficiency standards 
 36.36  established pursuant to subdivision 1.  The inspections shall be 
 37.1   made within 30 days of the request.  The commissioner shall 
 37.2   enter into an agreement with the department of children, 
 37.3   families, and learning board of trustees of the Minnesota state 
 37.4   colleges and universities for the provision of evaluator 
 37.5   training through at institutions that offer the technical 
 37.6   colleges training.  The commissioner may contract with 
 37.7   the technical colleges board to reduce the training costs to the 
 37.8   students.  The commissioner may eliminate the examination fee 
 37.9   for persons seeking upgraded certificates.  The commissioner may 
 37.10  also establish requirements for continuing education, periodic 
 37.11  recertification, and revocation of certification for evaluators. 
 37.12     Sec. 33.  Laws 1994, chapter 643, section 10, subdivision 
 37.13  10, as amended by Laws 1995, First Special Session chapter 2, 
 37.14  article 1, section 42, is amended to read: 
 37.15  Subd. 10.  Rochester Technical College University
 37.16  Center Rochester                                       1,200,000
 37.17  This appropriation is to for predesign 
 37.18  and design of an integrated campus in 
 37.19  accordance with this subdivision.  
 37.20  $600,000 of this appropriation is 
 37.21  available immediately.  The remainder 
 37.22  is available after a master academic 
 37.23  plan has been approved under clause (3) 
 37.24  and the technical college has been 
 37.25  sold., remodeling of student support 
 37.26  facilities, remodeling of facilities 
 37.27  for joint academic programming, and 
 37.28  construction of roads and other 
 37.29  infrastructure to integrate the campus 
 37.30  for the delivery of consolidated 
 37.31  college, state university, and 
 37.32  University of Minnesota programs at the 
 37.33  University Center Rochester.  Planning 
 37.34  may include consideration of 
 37.35  codevelopment of facilities with local 
 37.36  units of government. 
 37.37  (1) The board of trustees of the 
 37.38  Minnesota state colleges and 
 37.39  universities may enter into an 
 37.40  agreement for the sale of the Rochester 
 37.41  Technical College.  The sale is 
 37.42  contingent on the approval of the board 
 37.43  of trustees and a determination by the 
 37.44  board of trustees that the sale is 
 37.45  consistent with its priorities.  The 
 37.46  sale price shall equal the appraised 
 37.47  value if sold to independent school 
 37.48  district No. 535, Rochester, or, if 
 37.49  sold to any other party, the sale price 
 37.50  shall not be less than the appraised 
 37.51  value. 
 37.52  It is the intent of the legislature 
 37.53  that no technical college program 
 37.54  reduction, apart from normal program 
 38.1   review, shall occur as a result of this 
 38.2   sale. 
 38.3   (2) The sale shall not cause the 
 38.4   technical college to lease space or to 
 38.5   move to any temporary site. 
 38.6   (3) Prior to the preparation of design 
 38.7   documents, the post-secondary boards 
 38.8   and the relevant campus staff shall 
 38.9   jointly prepare a master academic plan 
 38.10  for an integrated campus for the 
 38.11  Rochester center facility.  The boards 
 38.12  shall consider the creation of a 
 38.13  polytechnic university.  The plan shall 
 38.14  be submitted for review to the higher 
 38.15  education finance divisions by January 
 38.16  16, 1996, and must be approved by the 
 38.17  legislature before the remaining 
 38.18  $600,000 of the appropriation is 
 38.19  available.  
 38.20  (4) The proceeds from the sale of the 
 38.21  technical college are appropriated for 
 38.22  the design and construction necessary 
 38.23  to integrate technical college programs 
 38.24  into the Rochester center and to add or 
 38.25  modify space where necessary.  The new 
 38.26  technical college program space must be 
 38.27  attached to and must maximize the 
 38.28  current services, space, and programs 
 38.29  of the technical college, community 
 38.30  college, state university, and 
 38.31  University of Minnesota cooperative 
 38.32  campus.  The state board of trustees 
 38.33  may not begin construction of this 
 38.34  project until the legislature has 
 38.35  approved the construction plans. 
 38.36  (5) The state board of trustees shall 
 38.37  develop a plan to relocate to the 
 38.38  Austin, Faribault, and other 
 38.39  Southeastern Minnesota campuses all 
 38.40  Rochester campus programs that are not 
 38.41  essential to the integrated mission 
 38.42  planned for the Rochester center 
 38.43  facility.  This plan must be completed 
 38.44  prior to preparing design documents for 
 38.45  the technical college addition to the 
 38.46  Rochester center. 
 38.47  (6) The state board of trustees shall 
 38.48  consider relocating the horticulture 
 38.49  technology program from the Rochester 
 38.50  campus to the Austin campus of 
 38.51  Riverland technical college before the 
 38.52  start of the 1995-1996 academic year. 
 38.53     Sec. 34.  Laws 1994, chapter 643, section 19, subdivision 
 38.54  9, as amended by Laws 1995, chapter 224, section 124, is amended 
 38.55  to read:  
 38.56  Subd. 9.  Museum and Center for 
 38.57  American Indian History                               1,100,000
 38.58  This appropriation is for the board of 
 38.59  trustees of the Minnesota state 
 38.60  colleges and universities to plan, 
 38.61  design, and construct a museum and 
 39.1   center for American Indian history and 
 39.2   policy.  The facility shall be located 
 39.3   at Bemidji State University.  This 
 39.4   appropriation is not available unless 
 39.5   matched by $1,000,000 from nonpublic 
 39.6   sources dollar for dollar to the extent 
 39.7   matched by nonstate money, provided 
 39.8   that a minimum of $500,000 must be 
 39.9   raised from nonstate money.  If more 
 39.10  than $1,100,000 is raised from nonstate 
 39.11  money, the money may be used to expand 
 39.12  the project.  Initiation of the project 
 39.13  must begin prior to June 30, 2001.  The 
 39.14  board of trustees of the Minnesota 
 39.15  state colleges and universities is not 
 39.16  required to pay any debt service for 
 39.17  this appropriation. 
 39.18     Sec. 35.  [STUDENT ORGANIZATIONS.] 
 39.19     A campus student association shall not hold a referendum to 
 39.20  determine statewide affiliation before May 1, 1998, or before 
 39.21  the statewide student associations for the community colleges 
 39.22  and technical colleges consolidate, whichever is sooner. 
 39.23     Sec. 36.  [MINNESOTA VIRTUAL UNIVERSITY.] 
 39.24     Subdivision 1.  [ESTABLISHMENT.] The Minnesota Virtual 
 39.25  University is established as a public-private partnership 
 39.26  consisting of the University of Minnesota, the Minnesota state 
 39.27  colleges and universities, and private colleges and universities 
 39.28  to ensure that lifelong learning opportunities are developed and 
 39.29  available to Minnesota citizens and businesses.  The Minnesota 
 39.30  Virtual University shall establish multiple points of entry for 
 39.31  students with immediate access to all instructional, support, 
 39.32  and administrative services. 
 39.33     Subd. 2.  [COORDINATION.] The University of Minnesota, the 
 39.34  Minnesota state colleges and universities, and the private 
 39.35  colleges and universities are requested to: 
 39.36     (1) oversee the development and implementation of an 
 39.37  electronic system that will support immediate access to all 
 39.38  instructional, support, and administrative services in a 
 39.39  seamless and customer-friendly manner; 
 39.40     (2) ensure that the Minnesota Virtual University develops 
 39.41  and offers on-line programs in, at least, nursing, math, 
 39.42  computer science, and the use of information technology in 
 39.43  elementary and secondary learning; 
 39.44     (3) include private business colleges and universities and 
 40.1   other institutions that could support the development of a 
 40.2   virtual university; and 
 40.3      (4) develop an electronic system supporting student 
 40.4   services, including, but not limited to, course catalogs, 
 40.5   registration systems, credit banks, and occupation and employer 
 40.6   data.  The electronic system shall be designed to integrate with 
 40.7   existing and future systems supporting the University of 
 40.8   Minnesota, the Minnesota state colleges and universities, and 
 40.9   private colleges and universities. 
 40.10     Sec. 37.  [ROUNDTABLE ON VOCATIONAL TECHNICAL EDUCATION.] 
 40.11     A roundtable discussion on vocational technical education 
 40.12  in the state shall be convened.  The roundtable shall consist of 
 40.13  nine members appointed by the governor, as follows: 
 40.14     (1) one member of the state council on vocational technical 
 40.15  education; 
 40.16     (2) the chancellor of the Minnesota state colleges and 
 40.17  universities; 
 40.18     (3) a member of private industry who regularly hires 
 40.19  graduates of vocational technical education programs; 
 40.20     (4) a secondary vocational technical educator; 
 40.21     (5) a post-secondary faculty member in vocational technical 
 40.22  education; 
 40.23     (6) a current student in vocational technical education; 
 40.24     (7) a member of the higher education budget division of the 
 40.25  senate committee on children, families, and learning; 
 40.26     (8) a member of the higher education finance division of 
 40.27  the education committee of the house; and 
 40.28     (9) a representative of organized labor. 
 40.29     The roundtable shall make recommendations on strategies 
 40.30  needed to effectively provide efficient vocational technical 
 40.31  education in Minnesota.  The roundtable shall consider the role 
 40.32  of vocational technical education, its relationship to building 
 40.33  skill-based competencies, its importance to the state, its 
 40.34  relation to secondary and higher education, and the workforce 
 40.35  development needs of the state.  The roundtable shall report to 
 40.36  the legislature on its recommendations by January 15, 1998.  The 
 41.1   state council on vocational technical education and the 
 41.2   Minnesota state colleges and universities shall provide staffing 
 41.3   and other necessary support to the roundtable. 
 41.4      Sec. 38.  [INSTRUCTION TO REVISOR.] 
 41.5      The revisor of statutes shall change the phrases "state 
 41.6   board of technical colleges," "state board for vocational 
 41.7   technical education," "state board for community colleges," and 
 41.8   "state university board," or similar, to "board of trustees of 
 41.9   the Minnesota state colleges and universities" in Minnesota 
 41.10  Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, 
 41.11  subdivision 2b; and 354.66, subdivision 1a. 
 41.12     Sec. 39.  [REPEALER.] 
 41.13     Laws 1995, chapter 212, article 4, section 34; and Laws 
 41.14  1995, First Special Session chapter 2, article 1, sections 35 
 41.15  and 36, are repealed.