SF 3702

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to higher education; establishing Knowledge 
  1.3             Transfer, Inc., a public corporation to develop 
  1.4             instructional programs and services to train and 
  1.5             prepare the state's workforce; proposing coding for 
  1.6             new law as Minnesota Statutes, chapter 136G. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [136G.01] [CITATION.] 
  1.9      Sections 136G.01 to 136G.10 may be cited as the "Minnesota 
  1.10  Knowledge Transfer, Inc. Act." 
  1.11     Sec. 2.  [136G.02] [DEFINITIONS.] 
  1.12     Subdivision 1.  [APPLICABILITY.] For purposes of this 
  1.13  chapter, the following terms have the meanings given them, 
  1.14  unless the context clearly indicates otherwise. 
  1.15     Subd. 2.  [BOARD.] "Board" means the board of directors of 
  1.16  Minnesota Knowledge Transfer, Inc. 
  1.17     Subd. 3.  [CORPORATION.] "Corporation" means Minnesota 
  1.18  Knowledge Transfer, Inc. 
  1.19     Sec. 3.  [136G.03] [CORPORATION; BOARD OF DIRECTORS; 
  1.20  POWERS.] 
  1.21     Subdivision 1.  [ESTABLISHMENT.] Minnesota Knowledge 
  1.22  Transfer, Inc. is established as a public corporation of the 
  1.23  state and is not subject to the laws governing a state agency 
  1.24  except as provided in this chapter.  The business of the 
  1.25  corporation must be conducted under the name "Minnesota 
  1.26  Knowledge Transfer, Inc." 
  2.1      Subd. 2.  [PURPOSE.] The primary purpose of the corporation 
  2.2   is to enhance the economy through preparation of a highly 
  2.3   skilled and adaptable workforce that meets the state's 
  2.4   opportunities and needs.  The primary focus of the corporation's 
  2.5   activities must be to develop quality instructional programs and 
  2.6   related services and to ensure the provision of these services 
  2.7   to the state's incumbent and emerging workforce. 
  2.8      Subd. 3.  [BOARD OF DIRECTORS.] The corporation is governed 
  2.9   by a board of nine directors.  The membership terms, 
  2.10  compensation, removal, and filling of vacancies of public 
  2.11  members of the board are as provided in section 15.0575.  
  2.12  Membership of the board consists of the following: 
  2.13     (1) one member appointed by the governor; 
  2.14     (2) two members who are not a member of the legislature, 
  2.15  one appointed by the speaker of the house and one appointed by 
  2.16  the subcommittee on committees of the committee on rules and 
  2.17  administration of the senate; and 
  2.18     (3) six members appointed by the board of trustees of 
  2.19  Minnesota state colleges and universities. 
  2.20  At least 50 percent of the members must have experience in 
  2.21  business, education, or economic development.  The board shall 
  2.22  annually elect from among its members a chair and other officers 
  2.23  necessary for the performance of its duties. 
  2.24     Subd. 4.  [BYLAWS.] The board of directors shall adopt 
  2.25  bylaws necessary for the conduct of the business of the 
  2.26  corporation, consistent with this chapter.  The corporation must 
  2.27  publish the bylaws and amendments to the bylaws in the State 
  2.28  Register. 
  2.29     Subd. 5.  [PLACES OF BUSINESS.] The board shall locate and 
  2.30  maintain the corporation's primary place of business within the 
  2.31  state.  The board may establish additional business locations in 
  2.32  other jurisdictions. 
  2.33     Subd. 6.  [MEETINGS AND ACTIONS OF THE BOARD.] The board 
  2.34  shall meet at least twice a year and may hold additional 
  2.35  meetings upon giving notice in accordance with the bylaws of the 
  2.36  corporation.  Board meetings are subject to section 471.705, 
  3.1   except when data described in subdivision 8 is discussed. 
  3.2      Subd. 7.  [CLOSED MEETINGS; RECORDING.] The board of 
  3.3   directors may by a majority vote in a public meeting decide to 
  3.4   hold a closed meeting authorized under subdivision 6.  The time 
  3.5   and place of the closed meeting must be announced at the public 
  3.6   meeting.  A written roll of members present at the closed 
  3.7   meeting must be made available to the public after the closed 
  3.8   meeting.  The proceedings of a closed meeting must be tape 
  3.9   recorded at the expense of the board and must be preserved by 
  3.10  the board for two years.  The data on the tape is nonpublic data 
  3.11  under section 13.02, subdivision 9. 
  3.12     Subd. 8.  [APPLICATION AND INVESTIGATIVE DATA.] The 
  3.13  following data is classified as private data with regard to data 
  3.14  on individuals under section 13.02, subdivision 12, or as 
  3.15  nonpublic data with regard to data not on individuals under 
  3.16  section 13.02, subdivision 9, whichever is applicable: 
  3.17     (1) financial data, statistics, and information furnished 
  3.18  in connection with proposed investments by the corporation, 
  3.19  including credit reports, financial statements, statements of 
  3.20  net worth, income tax returns, either personal or corporate, and 
  3.21  any other business and personal financial records; or 
  3.22     (2) security information, trade secret information, or 
  3.23  labor relations information, as defined in section 13.37, 
  3.24  subdivision 1, disclosed to members of the corporation board or 
  3.25  employees of the corporation under this chapter. 
  3.26     Subd. 9.  [STUDENT DATA.] Student data collected, created, 
  3.27  received, maintained, or disseminated by Minnesota Knowledge 
  3.28  Transfer, Inc. shall be classified in accordance with section 
  3.29  13.32. 
  3.30     Subd. 10.  [CONFLICT OF INTEREST.] A director, employee, or 
  3.31  officer of the corporation may not participate in or vote on a 
  3.32  decision of the board relating to an organization in which the 
  3.33  director has either a direct or indirect financial interest. 
  3.34     Subd. 11.  [CONTRIBUTIONS TO PUBLIC OFFICIALS; DISCLOSURE.] 
  3.35  Each director shall file a statement with the campaign finance 
  3.36  and public disclosure board disclosing the nature, amount, date, 
  4.1   and receipt of any contribution made to a public official, 
  4.2   political committee, political fund, or political party, as 
  4.3   defined in chapter 10A, that: 
  4.4      (1) was made within the four years preceding appointment to 
  4.5   the Minnesota Knowledge Transfer, Inc. board; and 
  4.6      (2) was subject to the reporting requirements of chapter 
  4.7   10A. 
  4.8   The statement must be updated annually during the director's 
  4.9   term to reflect contributions made to public officials during 
  4.10  the appointed director's tenure. 
  4.11     Subd. 12.  [AGENCY STATUS.] The corporation is not a state 
  4.12  agency except as otherwise provided in this act. 
  4.13     Subd. 13.  [TORT CLAIMS.] The corporation is a state agency 
  4.14  for purposes of section 3.736. 
  4.15     Subd. 14.  [STATEMENTS OF ECONOMIC INTEREST.] Directors and 
  4.16  officers of the corporation are public officials for the purpose 
  4.17  of section 10A.09, and must file statements of economic interest 
  4.18  with the campaign finance and public disclosure board. 
  4.19     Sec. 4.  [136G.04] [CORPORATE PERSONNEL.] 
  4.20     Subdivision 1.  [GENERALLY.] The board shall appoint and 
  4.21  set the compensation for a president, who serves as chief 
  4.22  executive officer of the corporation and who may appoint 
  4.23  subordinate officers.  The president's salary must be no greater 
  4.24  than 75 percent of the maximum salary established for the 
  4.25  position of chancellor.  The board may designate the president 
  4.26  as its general agent.  Subject to the control of the board, the 
  4.27  president shall employ employees, consultants, and agents the 
  4.28  president considers necessary.  The staff of the corporation 
  4.29  must include individuals knowledgeable in corporate leadership, 
  4.30  education, training, and the training and education needs of 
  4.31  business and industry.  The board shall define the duties and 
  4.32  designate the titles of the employees and agents. 
  4.33     Subd. 2.  [STATUS OF EMPLOYEES.] Employees, officers, and 
  4.34  directors of the corporation and programs governed by this 
  4.35  chapter are not state employees, but are covered by section 
  4.36  3.736 and, at the option of the board, may participate in the 
  5.1   retirement plan and the deferred compensation plan available to 
  5.2   employees of Minnesota state colleges and universities in the 
  5.3   unclassified service, and an insurance plan administered by the 
  5.4   commissioner of employee relations. 
  5.5      Subd. 3.  [CONTRIBUTIONS TO PUBLIC OFFICIALS; 
  5.6   DISCLOSURE.] The president shall file a statement with the 
  5.7   campaign finance and public disclosure board disclosing the 
  5.8   nature, amount, date, and recipient of any contribution made to 
  5.9   a public official which: 
  5.10     (1) was made within the four years preceding employment 
  5.11  with the Minnesota Knowledge Transfer, Inc. board; and 
  5.12     (2) was subject to the reporting requirements of chapter 
  5.13  10A. 
  5.14  The statement must be updated annually during the president's 
  5.15  employment to reflect contributions made to public officials 
  5.16  during the president's tenure. 
  5.17     Sec. 5.  [136G.05] [POWERS OF THE CORPORATION.] 
  5.18     Subdivision 1.  [GENERAL CORPORATE POWERS.] (a) The 
  5.19  corporation has the powers granted to a business corporation by 
  5.20  section 302A.161, subdivisions 3, 4, 5, 7, 8, 9, and 11 to 13, 
  5.21  except that the corporation may not act as a general partner in 
  5.22  any partnership; section 302A.161, subdivisions 14 to 18, and 22.
  5.23     (b) The state is not liable for the obligations of the 
  5.24  corporation. 
  5.25     (c) Section 302A.041 applies to this chapter and the 
  5.26  corporation in the same manner that it applies to business 
  5.27  corporations established under chapter 302A. 
  5.28     Subd. 2.  [EQUITY INVESTMENTS.] The corporation may acquire 
  5.29  an interest in a product or a private business entity, except 
  5.30  that the corporation may not acquire an interest in a business 
  5.31  entity engaged in a trade or industry whose profits are directly 
  5.32  regulated by the commissioner of commerce or the department of 
  5.33  public service.  The corporation may enter into joint venture 
  5.34  agreements with other private corporations to develop 
  5.35  educational materials and related programs or services. 
  5.36     Subd. 3.  [CONTRACTS.] Contracts between the corporation 
  6.1   and Minnesota state colleges and universities shall not be 
  6.2   subject to the requirements of section 471.345. 
  6.3      Subd. 4.  [DUTIES.] (a) The primary duties of the 
  6.4   corporation shall include: 
  6.5      (1) developing and marketing educational programs, courses, 
  6.6   and services; and 
  6.7      (2) developing or obtaining technology for the delivery of 
  6.8   educational programs. 
  6.9      (b) The corporation shall also: 
  6.10     (1) establish programs, activities, and policies that 
  6.11  provide educational technology transfer and educational 
  6.12  development assistance to Minnesota state colleges and 
  6.13  universities, business and industry entities, and other private 
  6.14  or public institutions; 
  6.15     (2) provide educational-related assistance to educational 
  6.16  institutions for the development of new products or services, or 
  6.17  to assist in bringing new products or services to the 
  6.18  educational marketplace; 
  6.19     (3) provide or procure research services and testing of 
  6.20  educational technology products; 
  6.21     (4) obtain educational materials or services from 
  6.22  individuals or private or public entities; 
  6.23     (5) make matching research grants for applied research and 
  6.24  development to public and private post-secondary education 
  6.25  institutions; and 
  6.26     (6) enter into contracts for establishing formal 
  6.27  relationships with public or private research institutes or 
  6.28  facilities or other entities. 
  6.29     (c) Available proceeds from the corporation's activities 
  6.30  shall be distributed annually to Minnesota state colleges and 
  6.31  universities.  Amounts so distributed are hereby appropriated to 
  6.32  the board of trustees of Minnesota state colleges and 
  6.33  universities. 
  6.34     Subd. 5.  [RULES.] The corporation is exempt from the 
  6.35  rulemaking requirements of chapter 14. 
  6.36     Subd. 6.  [SUPPORT ORGANIZATIONS.] On making a 
  7.1   determination that the public policies and purposes of this 
  7.2   chapter will be carried out to a greater extent than what might 
  7.3   otherwise occur, the board may cause to be created and may 
  7.4   delegate, assign, or transfer to one or more entities, 
  7.5   including, without limitation, a corporation, nonprofit 
  7.6   corporation, limited liability company, partnership, or limited 
  7.7   partnerships in this or any foreign jurisdiction, any or all 
  7.8   rights and duties, assets and liabilities, powers or authority 
  7.9   created, authorized or allowed under this chapter, except to the 
  7.10  extent specifically limited by the constitution or by law. 
  7.11     Sec. 6.  [136G.06] [FACILITIES.] 
  7.12     The corporation may construct, acquire, lease, own, or 
  7.13  operate one or more on-site training or educational facilities 
  7.14  in this state or other jurisdictions. 
  7.15     Sec. 7.  [136G.07] [RESEARCH GRANTS TO EDUCATION UNITS.] 
  7.16     The board may make matching grants to public and private 
  7.17  post-secondary education institutions or units within those 
  7.18  institutions for educational research and development. 
  7.19     Sec. 8.  [136G.08] [AUDITS.] 
  7.20     The board shall contract with a certified public accounting 
  7.21  firm to do a financial and compliance audit of the corporation 
  7.22  and any subsidiary annually in accordance with generally 
  7.23  accepted accounting standards.  The corporation is subject to 
  7.24  the auditing requirements under sections 3.971 and 3.972. 
  7.25     Sec. 9.  [136G.09] [ANNUAL REPORT.] 
  7.26     The board shall submit a report to the chairs of the senate 
  7.27  higher education budget division and the house higher education 
  7.28  finance committee of the legislature, the governor, and the 
  7.29  board of Minnesota state colleges and universities on the 
  7.30  activities of the corporation by February 1 of each year.  The 
  7.31  report must include at least the following:  a description of 
  7.32  the corporation's activities during the previous year; 
  7.33  identification of all sources of funding; a list of the assets 
  7.34  and liabilities of the corporation; and a description of any 
  7.35  significant changes in the bylaws or programmatic direction of 
  7.36  the corporation.  Reports must be made to the legislature as 
  8.1   required by section 3.195. 
  8.2      Sec. 10.  [136G.10] [DISSOLUTION.] 
  8.3      In the event of dissolution of the corporation for any 
  8.4   reason, the state, upon action by the governor, and after 
  8.5   consultation with the legislative advisory commission, may 
  8.6   require the liquidation of all holdings and investments and the 
  8.7   return of the proceeds of that liquidation and any wholly owned 
  8.8   assets of the corporation to the state, in exchange for the 
  8.9   assumption of all outstanding obligations of the corporation. 
  8.10     If the corporation is dissolved, or certain of its 
  8.11  functions transferred to another entity, the assets and 
  8.12  liabilities and property associated with the dissolved or 
  8.13  transferred functions must be transferred to the board of 
  8.14  trustees of the Minnesota state colleges and universities.