Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


  

                         Laws of Minnesota 1983 

                        CHAPTER 258--H.F.No. 1283
           An act relating to the organization and operation of 
          state government; appropriating money for education 
          and related purposes to the department of education, 
          higher education coordinating board, state university 
          board, state community college board, University of 
          Minnesota, and the Mayo medical foundation, with 
          certain conditions; establishing a state board of 
          vocational-technical education; providing certain 
          powers and duties relating to vocational technical 
          education to the state board and school districts;  
          changing the authority and duties of agencies and 
          their advisory councils with respect to governance, 
          membership, duration of existence, funding policy, 
          disposition of property, employment and compensation 
          of personnel, tuition, institutional closings, gifts, 
          expenditure approval, regent residency, 
          appropriations, parking fees, subscription fees, 
          scholarships, grants-in-aid, planning, hospital 
          charges, relations with private colleges, augmented 
          bonding authority, and related educational matters; 
          requiring certain reports and studies with respect 
          thereto; amending Minnesota Statutes 1982, sections 
          3.732, subdivision 1; 10A.01, subdivision 18; 43A.08, 
          subdivision 1a; 43A.18, subdivision 4; 120.17, 
          subdivision 7a; 120.81; 121.11, by adding a 
          subdivision; 121.212, subdivision 2; 121.931, 
          subdivision 7; 121.934, subdivision 2; 123.742, by 
          adding a subdivision; 123.743; 124.48; 136.03; 
          136.144; 136.62, by adding a subdivision; 136.67, by 
          adding a subdivision; 136A.121; 136A.14; 136A.141; 
          136A.143; 136A.15; 136A.16; 136A.17; 136A.18; 136A.26; 
          136A.29, subdivisions 2 and 9; 136A.42; 158.05; 
          proposing new law coded in Minnesota Statutes, 
          chapters 120, 136, and 136A; proposing new law coded 
          as Minnesota Statutes, chapters 135A and 136C; 
          repealing Minnesota Statutes 1982, sections 120.82; 
          121.11, subdivision 1; 121.902, subdivision 1a; 
          121.936, subdivision 6; 124.53; 136.034; 136A.144; 
          136A.145; 136A.146; 136A.161; 136A.19; 136A.20; 
          136A.21; 136A.22; 136A.236; and 136A.237. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [EDUCATION; APPROPRIATIONS.] 
    The sums set forth in the columns designated 
"APPROPRIATIONS" are appropriated from the general fund, or any 
other fund designated, to the agencies and for the purposes 
specified in the following sections of this act, to be available 
for the fiscal year indicated for each purpose.  The figures 
"1983," "1984," and "1985," wherever used in this act, mean that 
the appropriation or appropriations listed thereunder or 
therefor shall be available for the year ending June 30, 1983, 
June 30, 1984, or June 30, 1985, respectively.  

                            SUMMARY BY FUND 
            1983        1984         1985         TOTAL   
General             $536,028,700 $546,327,500 $1,082,356,200
Trunk Highway             19,500       20,500         40,000
Permanent University   2,500,000    2,500,000      5,000,000
Nongame Wildlife          25,000       25,000         50,000
TOTAL               $538,573,200 $548,873,000 $1,087,446,200

                     SUMMARY BY AGENCY - ALL FUNDS 
Department of
  Education         $ 27,433,500 $ 23,632,700 $   51,066,200
HECB                  56,205,700   59,045,000    115,250,700
State University
  System             105,201,700  106,166,000    211,367,700
Community College
  System              51,843,400   53,452,900    105,296,300
University of 
  Minnesota          296,545,000  305,371,700    601,916,700
Mayo Medical           1,343,900    1,204,700      2,548,600
                                          APPROPRIATIONS
                                        Available for the Year
                                           Ending June 30
                                          1984         1985
     Sec. 2.  [DEPARTMENT OF EDUCATION] 
  Subdivision 1.  General Operations
and Management                        $27,433,500   $23,632,700 
    Approved Complement 
    State - 501.4 
    Federal - 189.4 
    Special Revenue - 7.5 
    Bond Proceeds - 1.0 
 The amounts that may be expended from 
this appropriation for each program and 
activity are more specifically 
described in the following subdivisions 
of this section.  
  Subd. 2.  Special and Compensatory
Education 
      1984          1985 
   $2,458,900    $2,438,800  
 (a) Of this appropriation, $1,500,000 
in the first year, and $1,500,000 in 
the second year is for Indian 
scholarships.  Any unexpended balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium. 
 (b) Of this appropriation, $300,000 in 
the first year and $300,000 in the 
second year is for Indian 
post-secondary preparation grants to 
school districts to be used to support 
programs for secondary students who are 
of one-fourth or more Indian ancestry 
and who, in the opinion of the district 
superintendent, have the capabilities 
to benefit from higher education.  This 
appropriation shall be expended with 
the approval of the governor after 
consultation with the legislative 
advisory commission as provided in 
Minnesota Statutes, section 3.30.  
Release of these funds shall also be 
contingent upon submission of a plan 
prepared by the state board, with the 
advice and counsel of the Minnesota 
Indian scholarship committee.  The plan 
shall describe the objectives and the 
methods for implementing the program, 
including the manner in which grants 
will be distributed in proportion to 
the geographical distribution of the 
Indian population of the state.  This 
plan shall be submitted to the chairmen 
of the house and senate education 
committees and the house appropriations 
and senate finance committees prior to 
the submission to the legislative 
advisory commission. 
 (c) Of this appropriation, $61,100 in 
the first year and $36,100 in the 
second year is for the Indian education 
unit for one position and for 
procurement of equipment and services 
necessary for the computerization of 
the accounting and data management 
operations of the Indian scholarship 
program. 
 The department of education shall 
maintain the existing Minnesota Indian 
education scholarship office at Bemidji 
during the biennium ending June 30, 
1985, with no reduction in general fund 
appropriations. 
  Subd. 3.  Braille and Sight-Saving
School and School for the Deaf 
     1984           1985
  $ 5,622,300   $ 5,531,600
 (a) $113,600 the first year and $86,200 
the second year is for repairs, 
replacements and betterments at the 
Minnesota School for the Deaf and the 
Minnesota Braille and Sight-Saving 
School.  Any unexpended balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium.  
 $98,900 the first year is for repair 
and purchase of equipment at the 
Minnesota School for the Deaf and the 
Minnesota Braille and Sight-Saving 
School.  Any unexpended balance 
remaining in the first year does not 
cancel but is available for the second 
year of the biennium.  
 (b) $148,000 in the first year and 
$148,000 in the second year is for 
summer school at the Minnesota School 
for the Deaf and the Minnesota Braille 
and Sight-Saving School.  
 (c) $9,500 in the first year and $9,500 
in the second year is for the 
Parent-Child Institute at the Minnesota 
School for the Deaf and the Minnesota 
Braille and Sight-Saving School.  
 (d) $74,500 in the first year and 
$75,000 in the second year is for the 
purchase of mainstreaming services at 
the Minnesota School for the Deaf and 
the Minnesota Braille and Sight-Saving 
School.  
 (e) If the amounts appropriated in (b), 
(c), and (d) are insufficient, the 
commissioner may transfer other 
operating funds appropriated to the 
residential schools, with the exception 
of the funds in (a), for these purposes.
 (f) It is the intent of the legislature 
that during the biennium in the event 
that federal EHA-Title VI-C funds for 
the Minnesota School for the Deaf and 
the Minnesota Braille and Sight-Saving 
School are diminished or no longer 
available, the commissioner of 
education may make application to the 
legislative advisory commission at one 
of its regularly scheduled meetings to 
obtain state funds to replace 
diminished federal funds. 
 (g) In the event that the legislative 
audit commission does not approve a 
program evaluation of the Minnesota 
School for the Deaf and the Minnesota 
Braille and Sight-Saving School during 
the first year, the commissioner of 
finance, in consultation with the 
commissioners of education and 
administration, shall carry out such an 
evaluation.  The evaluation shall 
consider the cost-effectiveness of the 
academic, residential, support, and 
administrative services in comparison 
to similar programs and the feasibility 
of alternative methods of service 
delivery.  The study shall be submitted 
to the chairmen of the house 
appropriations and senate finance 
committees by January 15, 1984. 
  Subd. 4.  Vocational Technical
Instruction 
   $5,590,300    $4,892,200
 Of this appropriation $1,999,100 in the 
first year and $1,440,100 for the 
second year is for post-secondary 
vocational repair and betterment aid. 
The appropriation for post-secondary 
repair and betterment aid for 1984 
includes $191,000 for aid for fiscal 
year 1983 payable in fiscal year 1984, 
and $1,808,100 for aid for fiscal year 
1984 payable in fiscal year 1984. 
 The appropriation for post-secondary 
repair and betterment aid for 1985 
includes $319,000 for aid for fiscal 
year 1984 payable in fiscal year 1985, 
and $1,121,100 for aid for fiscal year 
1985 payable in fiscal year 1985. 
 $525,000 the first year and $500,000 
the second year is for the Minnesota 
curriculum services center, the 
vocational student organization center, 
and vocational area agricultural 
coordinators.  If the appropriation for 
either year is insufficient, the 
appropriation for the other year is 
available for it.  This appropriation 
shall be spent pursuant to agreements 
between the state board of education 
and the recipients.  The agreements are 
not subject to the contract approval 
procedures of the commissioner of 
administration. 
 Until June 30, 1985, the Minnesota 
curriculum services center may sell to 
school districts and agencies in other 
states and to the general public its 
instructional material and media at 
commercial or market prices.  The 
profit derived from the sale of 
materials and media will be used to 
offset the operating costs of the 
center.  An accounting of costs, sales 
and receipts shall be provided to the 
commissioner of education on July 1, 
1984 and July 1, 1985. 
 Funding for the Minnesota Curriculum 
Services Center during the biennium 
shall be allocated under the average 
cost funding methodology.  
 The state board for vocational 
education shall develop and implement a 
plan for the transfer of the area 
agricultural coordinator functions and 
positions into the area 
vocational-technical institute system 
effective July 1, 1984, for the 
biennium.  During the biennium support 
for the positions shall be provided all 
or in part from the instructional funds 
under the average cost funding 
methodology.  
 $300,000 in the first year and $300,000 
in the second year is for the 
acquisition of equipment for 
technology-related programs in the area 
vocational-technical institutes. 
 $150,000 in the first year is 
appropriated for the purpose of 
implementing sections 56, 57, 58, 59, 
60, 61, 63, and 64. 
 Federal money received for state 
vocational education programs pursuant 
to the Vocational Education Act of 
1963, Section 120, United States Code, 
title 20, section 2330 and required to 
be used for vocational education of the 
disadvantaged and handicapped shall be 
used during the biennium only for 
grants and not for state administrative 
costs.  During the biennium the grant 
money may be used by a school district 
for its own administrative costs if 
otherwise permitted by federal law.  
The remainder of section 120 money not 
required to be used for eliminating sex 
bias, for displaced homemakers 
programs, and for matching requirements 
in vocational education shall be used 
during the biennium for grants for 
post-secondary vocational instructional 
aid allocations for support services. 
  Subd. 5.  General Instructional Services 
   $2,429,800    $2,466,000 
 During the biennium fees may be 
collected from school districts and 
educational systems pursuant to section 
26 for subscriptions to the Minnesota 
Career Information Service and 
appropriated pursuant to section 27. 
 Of the amounts provided by this 
subdivision, $19,500 in 1984 and 
$20,500 in 1985 are from the trunk 
highway fund. 
  Subd. 6.  Special Services 
   $2,103,200    $2,037,800
 (a) During the biennium the state board 
of education and the state board of 
teaching, after joint consultation, 
shall individually set consistent 
license fees for which they are 
responsible at a level sufficient to 
recover all department of education and 
board of teaching costs associated with 
the licensure, relicensure, and 
placement of teachers, administrators, 
and other education professionals.  In 
calculating these costs, the value of 
the services of the attorney general 
shall be considered.  During the 
biennium in setting these fees, the 
state board of education and the board 
of teaching are exempt from the public 
hearing process in Minnesota Statutes, 
chapter 14.  Notice of the revised fees 
shall be published in the state 
register, followed by 30-day public 
comment period before the revisions are 
effective.  In assigning fees, the 
board of teaching shall consider 
differences between full-time and 
part-time employment in teaching and 
implementation of a differential fee 
structure for vocational education 
adult supplemental licenses. 
 (b) Fees for private trade school 
licenses and for solicitors' permits 
are increased to (1) private trade 
school license - inital fee $440; (2) 
private trade school license - renewal 
$330; (3) solicitor permits - $165.  
Notice of the revised fees shall be 
published in the state register as soon 
as practicable.  During the biennium 
ending June 30, 1985, these fees shall 
not be decreased and may be increased 
pursuant to Minnesota Statutes, 
sections 14.14, 16A.128, and 214.06.  
  Subd. 7.  School Management 
Services 
   $6,991,900    $3,995,000
 (a) $880,000 in the first year is for 
the Minnesota Educational Computing 
Consortium (MECC) for the operation of 
the management information services 
unit.  Any unexpended balance remaining 
in the first year does not cancel but 
is available for the second year of the 
biennium.  
 The executive director of MECC shall 
submit a plan annually during the 
biennium to the 
Elementary-Secondary-Vocational (ESV) 
Computer Council and to the 
commissioner of education detailing its 
plan for the management information 
system unit. 
 (b) $3,634,000 in the first year and 
$1,500,000 in the second year is for 
regional computing support for regional 
management information centers.  The 
appropriation for the second year shall 
be placed in a contingent account.  The 
funds in the contingent account shall 
be released when the study described in 
the next sentence is completed, and 
upon compliance with Minnesota 
Statutes, section 3.30.  The ESV 
computer council with the assistance of 
the commissioner of education shall 
conduct a study on how best to meet 
state information needs in the most 
cost effective manner.  The study shall 
be completed and delivered to the 
chairmen of the house appropriations 
committee and senate finance committee 
by December 1, 1983.  The study shall 
include but not be limited to an 
analysis of:  
 (1) the state and local benefits 
derived from Elementary-Secondary- 
Vocational Information System (ESV-IS) 
data processing and the current costs 
associated with providing the benefits; 
 (2) an alternative number of regional 
and state data processing sites and the 
costs of each alternative;  
 (3) the ESV-IS applications software 
necessary to support state mandated 
data acquisition;  
 (4) alternatives for supporting the 
development and maintenance of ESV-IS 
and the State Department of Education 
Information System (SDE-IS) application 
software and the cost of each 
alternative; 
 (5) the costs and benefits of releasing 
large districts from the mandate to 
affiliate with ESV regional management 
information centers. 
 (c) $1,068,100 in 1984 and $1,095,600 
in 1985 is for support of the education 
data systems section.  Any unexpended 
balance remaining in the first year 
does not cancel but is available for 
the second year of the biennium.  
 The commissioner of education shall 
annually during the biennium submit to 
the ESV computer council a detailed 
budget and workplan for the education 
data systems section for review and 
comment.  A change in the workplan 
shall be featured in the succeeding 
year's submission.  
  Subd. 8.  Auxiliary and General
Support Services 
   $2,050,100    $2,080,200
 $129,400 in the first year and $129,600 
in the second year is for the 
Elementary-Secondary-Vocational 
Computer Council. 
  Subd. 9.  General Authority
 The commissioner of education with the 
approval of the commissioner of finance 
may transfer unencumbered balances 
among the above programs during the 
biennium.  Transfers shall be reported 
forthwith to the house appropriations 
and senate finance committees. 
 It is the intent of the legislature, 
that, during the biennium except in the 
case of executive order to the 
contrary, the department of education 
be allowed to transfer money among the 
various object of expenditure 
categories and activities within each 
program. 
 The department of education may during 
the biennium spend federal block grant 
funds received under the education 
consolidation and improvement act of 
1981, as amended, as shown in the 
biennial budget allocation plan.  
Changes may be made to accommodate 
adjustments in salary or other costs.  
However, material changes shall be 
reported to the senate finance 
committee and the house appropriations 
committee. 
  Subd. 10.  Board of Teaching 
   $187,000    $191,100
     Sec. 3.  [HIGHER EDUCATION
COORDINATING BOARD]   
  Subdivision 1.  General Operations
and Management                          56,205,700   59,045,000
 The amounts that may be expended from 
this appropriation for each purpose are 
more specifically described in the 
following subdivisions of this section. 
  Subd. 2.  Salaries and Expenses 
   $2,027,600    $1,890,900
 This appropriation includes money for 
the administration of the state student 
assistance programs, program planning 
and coordination, policy planning and 
research, and agency management 
services. 
 This appropriation includes money for a 
study of the need for engineering 
support programs in two-year 
institutions.  The study shall be 
presented to the house appropriations 
and senate finance committees by 
December 1, 1984. 
  Subd. 3.  State Scholarship, Nurses
Scholarship and State 
Grant-In-Aid 
   $42,374,000   $47,266,000
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available to meet 
scholarship and grant obligations.  
 This appropriation includes money for 
grants to part-time students.  If 
administrative problems preclude full 
consolidation of part-time student 
grants with the state grant and 
scholarship program, an amount not to 
exceed $300,000 of the above 
appropriation shall be available in 
each year of the biennium for 
allocation to eligible post-secondary 
institutions to accommodate the needs 
of part-time students, pursuant to 
Minnesota Statutes, section 136A.132.  
 Of the above appropriation, an amount 
not to exceed $100,000 is available in 
1984 to cover short-term living and 
transportation expenses of AVTI 
students.  The funds shall be advanced 
to the AVTI's at the beginning of the 
biennium and shall be used only to meet 
emergency needs of students who will 
receive awards from the state 
scholarship and grant program.  The 
advances shall be repaid by students 
upon receipt of their state grant or 
scholarship award and all advances 
shall be returned to the higher 
education coordinating board before the 
end of the biennium.  The higher 
education coordinating board shall 
develop administrative rules or 
procedures as necessary to implement 
this provision of law.  
 Notwithstanding any law to the 
contrary, the allowance for tuition and 
fees in the cost of attendance for 
four-year private institutions shall 
not exceed $3,598 in the 1983-1984 
school year and $4,063 in the 1984-1985 
school year.  The allowance for tuition 
and fees in the cost of attendance for 
two-year private collegiate and 
vocational institutions shall not 
exceed $3,573 in the 1983-1984 school 
year and $3,752 in the 1984-1985 school 
year. 
  Subd. 4.  Interstate Tuition
Reciprocity 
   $6,850,000    $4,800,000 
If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available to meet 
reciprocity contract obligations. 
  Subd. 5.  State Work Study 
    $4,209,000   $4,428,600
 Any unexpended balance of not more than 
$160,000 remaining at the end of the 
first year shall not cancel but is 
available for the purposes of the 
appropriation in subdivision 3 for the 
second year. 
  Subd. 6.  Medical Student Loans 
    $  115,000
  Subd. 7.  Minitex Library
Program 
    $  630,100   $  659,500
  Subd. 8.  Notwithstanding any
other provision to the contrary,
none of the personnel, powers, or
duties of the higher education
coordinating board shall be
transferred to any other department,
higher education system, or other
part of state government.
  Subd. 9.  Any unexpended balances 
in this section remaining in the first 
year do not cancel but are available 
for the second year of the biennium. 
     Sec. 4.  [STATE UNIVERSITY BOARD]  
  Subdivision 1.  General Operations
and Management                         105,201,700   106,166,000
 The amounts that may be expended from 
this appropriation for each purpose are 
more specifically described in the 
following subdivisions of this section. 
  Subd. 2.  Engineering Programs 
This appropriation includes funds for 
the first two years of a three-year, 
phased development of engineering 
programs at Mankato State University 
and St. Cloud State University. 
 Of the total authorized expenditures, 
$50,000 each year of the biennium for 
the engineering program at St. Cloud 
State University and $50,000 each year 
of the biennium for the engineering 
program at Mankato State University is 
available upon submission of required 
documentation that the state money has 
been matched by contributions from 
nonstate sources.  This matching 
requirement may be satisfied with 
donated equipment or supplies with the 
approval of the chairmen of the senate 
finance committee and the house 
appropriations committee. 
  Subd. 3.  Instructional Expenditures
 It is estimated that the amount for 
instructional expenditures will be 
$142,076,300 for the first year, and 
$148,285,200 for the second year. 
If the actual amount is different, the 
chancellor shall furnish the house 
appropriations and senate finance 
committees and the commissioner of 
finance with a report on December 1 of 
each year detailing the amount of the 
difference and provide an explanation 
thereof. 
  Subd. 4.  Non-Instructional Expenditures 
 It is estimated that the amount for 
non-instructional expenditures will be 
$14,213,700 for the first year, and 
$13,899,900 for the second year. 
If the actual amount is different, the 
chancellor shall furnish the house 
appropriations and senate finance 
committees and the commissioner of 
finance with a report on December 1 of 
each year detailing the amount of the 
difference and providing an explanation 
thereof. 
 (a) Of this amount, $624,100 the first 
year and $607,100 the second year is 
for state matching of federal student 
loan funds and federal work study funds.
 (b) Of this amount, $1,382,800 the 
first year and $1,382,800 the second 
year is for repairs and betterments. 
  Subd. 5.  The state university board 
shall submit a report to the chairmen of the
house appropriations and senate finance
committees by January 15, 1985,
on the use of all money exempt from 
budgetary control by the commissioner 
of finance pursuant to Minnesota 
Statutes, sections 136.11, subdivision 
5; 136.144; and 136.37.  
 The state university system is 
authorized to charge summer session 
expenditures to the fiscal year in 
which most of the summer session 
activity takes place. 
    Sec. 5.  [STATE COMMUNITY COLLEGE
BOARD] 
  Subdivision 1.  General Operations
and Management                          51,843,400   53,452,900
 The amounts that may be expended from 
this appropriation for each purpose are 
more specifically described in the 
following subdivisions of this section. 
  Subd. 2.  Instructional Expenditures
 It is estimated that the amount for 
instructional expenditures will be 
$71,372,700 for the first year, and 
$74,494,700 for the second year. 
 If the actual amount is different, the 
chancellor shall furnish the house 
appropriations and senate finance 
committees and the commissioner of 
finance with a report on December 1 of 
each year detailing the amount of the 
difference and providing an explanation 
thereof. 
  Subd. 3.  Non-Instructional Expenditures
 It is estimated that the amount for 
non-instructional expenditures will be 
$7,645,800 for the first year, and 
$8,001,900 for the second year. 
 If the actual amount is different, the 
chancellor shall furnish the house 
appropriations and senate finance 
committees and the commissioner of 
finance with a report on December 1 of 
each year detailing the amount of the 
difference and providing an explanation 
thereof.  
 (a) Of this amount, $440,600 the first 
year and $440,600 the second year is 
for state matching of federal student 
loan funds and federal work study funds.
 (b) Of this amount, $673,600 the first 
year and $673,600 the second year is 
for repairs and betterments. 
  Subd. 4.  The community college system 
is authorized to charge summer session 
expenditures to the fiscal year in 
which most of the summer session 
activity takes place. 
     Sec. 6.  [UNIVERSITY OF MINNESOTA] 
  Subdivision 1.  Total Appropriation   296,545,000  305,371,700
 The amounts that may be expended from 
this appropriation for each purpose are 
more specifically described in the 
following subdivisions of this section. 
  Subd. 2.  Operations and
Maintenance                              247,291,600  253,232,700
 These appropriations are made from: 
 (a) income derived from investment of 
the permanent university fund, which is 
appropriated to the university as 
provided in Minnesota Statutes, section 
137.022.  It is estimated that this 
income will not exceed $2,500,000 for 
the first year and $2,500,000 for the 
second year; and 
 (b) the general fund.  It is estimated 
that the amount required from the 
general fund will be at least 
$244,791,600 for the first year and 
$250,732,700 for the second year.  
 On December 1, 1984, and December 1, 
1985, the president of the University 
of Minnesota shall furnish the house 
appropriations and senate finance 
committees and the commissioner of 
finance the following information:  
 (1) The total amount of receipts during 
the fiscal year 1984 from all sources 
in excess of $117,729,100 and during 
the fiscal year 1985 from all sources 
in excess of $125,356,600; 
 (2) The sources of these receipts; and 
 (3) The purposes for which any excess 
receipts were expended and accounts to 
which transferred.  
 The board of regents shall certify to 
the commissioner of finance at the end 
of each quarter the amount of earnings 
derived from the investment of the 
permanent university fund.  
 If this income during any fiscal year 
exceeds the amounts stated in (a), the 
amount payable from the general fund is 
reduced accordingly.  
 In preparing the university's 
legislative budget request for the 
1985-1987 biennium, all projected 
income from student tuition shall be 
based on a charge per credit hour 
schedule.  
 This appropriation includes funds for 
faculty salary equalization at the 
coordinate campuses.  
 The legislature recommends that the 
university assure that the class of its 
female, nonstudent employees is not 
subject to sex discrimination and that 
this objective be accomplished to the 
extent possible by a university-wide 
program of review and if necessary by 
adjustments in policy and practices 
rather than by case-by-case litigation. 
 The legislature recommends that the 
university assure that the class of its 
administrative employees is not subject 
to special protection in times of 
budget reduction, retrenchment, and/or 
layoffs. 
 (c) Instructional expenditures: 
It is estimated that the amount for 
instructional expenditures will be 
$245,218,000 for the first year, and 
$258,042,500 for the second year. 
 During the fiscal biennium ending June 
30, 1985, if the actual amount is 
different, the University of Minnesota 
shall furnish the house appropriations 
and senate finance committees and the 
commissioner of finance with a report 
on December 1 of each year detailing 
the amount of the difference and 
provide an explanation thereof. 
 Of the above amount, $135,000 the first 
year, and $180,000 the second year is 
for law library acquisitions. 
 To the extent feasible, funds shall be 
allocated for positions in the college 
of veterinary medicine and the 
veterinary teaching hospital. 
 $500,000 of the money for the second 
year is to constitute the medical 
education contingency fund.  It is the 
intent of the legislature that steps be 
taken to reduce the projected 
oversupply of physicians in Minnesota.  
The university's study on medical 
school enrollment, including 
recommendations for reductions in 
entering class size for the 1984-1985 
academic year and subsequent 
implications for funding, shall be 
presented to the chairmen of the senate 
finance committee and the house 
appropriations committee by October 1, 
1983.  The medical education contingent 
fund is available upon submission of 
required documentation that the 
university is moving to address the 
physician oversupply problem.  The 
request for release of this money shall 
be reviewed by the education division 
of the house appropriations committee 
and the education subcommittee of the 
senate finance committee.  A 
recommendation on the release of the 
money shall be made by the chairmen of 
the house appropriations and senate 
finance committees, whose 
recommendations are advisory only. 
 $800,000 the first year and $1,400,000 
the second year is for the Duluth 
campus of the University of Minnesota 
for the establishment of a four-year 
engineering school.  The money shall be 
used for programs in computer, 
electronics, and mineral engineering.  
$100,000 each year of this money is 
available for the Duluth engineering 
program upon submission of required 
documentation that the state money has 
been matched by contributions from 
nonstate sources.  This matching 
requirement may be satisfied with 
donated equipment or supplies with the 
approval of the chairmen of the senate 
finance committee and the house 
appropriations committee. 
 It is the intent of the legislature 
that the university address the problem 
of teaching assistants for whom English 
is a second language.  The university 
shall develop a plan for insuring that 
teaching assistants are proficient in 
speaking, reading, and writing the 
English language as it is spoken in the 
United States.  The plan shall be 
presented to the legislature by 
December 1, 1983. 
 (d) Non-instructional expenditures: 
 It is estimated that the amount for 
non-instructional expenditures will be 
$119,802,700 for the first year and 
$120,546,800 for the second year. 
 During the fiscal biennium ending June 
30, 1985, if the actual amount is 
different, the University of Minnesota 
shall furnish the house appropriations 
and senate finance committees and the 
commissioner of finance with a report 
on December 1 of each year detailing 
the amount of the difference and 
providing an explanation thereof. 
  Subd. 3.  Special Appropriations     49,253,400   52,139,000
(a)  Agricultural Extension Service 
   $10,637,700   $11,164,600
 This appropriation includes money for 
agriculture extension work, county 
agricultural agents, home demonstration 
and 4-H club work, and soil 
conservation.  Any salary increases 
granted by the university to personnel 
paid from this appropriation shall not 
result in a reduction of the county 
portion of the salary payments.  
(b)  Agricultural Research 
   $10,517,200   $11,033,000 
 Of the above amount, $10,417,200 the 
first year and $10,933,000 the second 
year is for agricultural research. 
 Of the above amount, $100,000 each year 
is for either of the following 
options:  (a) an additional amount for 
agricultural research; or (b) the fire 
information, research and education 
center.  This money is not to be 
divided between agricultural research 
and the FIRE center; it is to be used 
for one option or the other. 
 This appropriation includes money for 
research on aquatic plants (including 
wild rice), soybeans, avian disease, 
swine disease, corn improvement, and 
irrigation.  
The university shall maintain an 
advisory council system for each 
experiment station.  The advisory 
councils shall be broadly 
representative of range of size and 
income distributions for farms and 
agribusiness, and shall not be 
disproportionately represented by those 
from the upper half of the size and 
income distributions of farms and 
agribusiness. 
(c)  Coleman Leukemia Research Center 
   $   210,000   $   220,500 
(d)  County Papers 
   $ 2,000,000   $ 2,000,000 
(e)  Medical Research 
   $ 1,902,200   $ 1,997,300 
(f)  Rural Physicians Associates Program 
   $   418,200   $   514,100 
(g)  Special Hospitals, Service and 
Educational Offset 
   $12,420,700   $13,041,700 
 This amount includes $9,318,900 each 
year which is counted as instructional 
cost. 
 Fees for service furnished to counties 
and individuals under this program 
shall be sought to augment the money 
appropriated; the fees are appropriated 
to the university hospitals, to be 
available until June 30, 1985. 
(h)  Faculty Travel 
   $    85,000   $    89,300 
(i)  Fellowships for Minority and 
Disadvantaged Students or Environmental 
Pathology Laboratory 
   $    50,000   $    50,000 
 This appropriation is to be used for 
either of the following options:  (a) 
fellowships for minority and 
disadvantaged students; or (b) support 
for the environmental pathology 
laboratory.  This appropriation is not 
to be divided between the fellowships 
and the laboratory; it is to be used 
for one option or the other. 
 Any unexpended balance remaining in the 
first year does not cancel but is 
available for the second year of the 
biennium. 
(j)  General Research 
   $ 1,815,700   $ 1,906,400
 This appropriation is, as the board of 
regents may direct, for general 
research, business and economic 
research including Duluth, center for 
urban and regional affairs, museum of 
natural history, and juvenile justice 
seminar.  
(k)  Geological Survey 
   $649,200      $681,700 
(l)  Hormel Institute 
   $155,200      $163,000 
 To support the operation of the 
institute and to promote research by 
the institute.  
(m)  Immigration History Research Center 
 The appropriation in Laws 1981, chapter 
359, section 9, subdivision 12, for the 
immigration history research center is 
available until June 30, 1985.  One of 
every two dollars contributed from 
nonstate and nonfederal sources may be 
donated services or donated or loaned 
personal or real property.  These 
services and property shall be valued 
according to the Code of Federal 
Regulations, title 34, sections 74.54 
to 74.57 (1980). 
(n)  Industrial Relations Education 
   $591,600      $621,200 
(o)  Intercollegiate Athletics 
   $1,688,400    $1,772,800 
 This appropriation shall be used as a 
general offset to the expenses of 
intercollegiate athletics. 
(p)  Lake Superior Basin Studies 
   $127,900      $134,300 
(q)  Micro-Electronics and 
Information Science Center 
   $600,000      $600,000 
 The above appropriation is available 
upon submission of required 
documentation that the state money has 
been matched by contributions from 
nonstate sources.  Matching 
requirements may be satisfied with 
donated equipment or supplies with the 
approval of the chairmen of the senate 
finance committee and house 
appropriations committee. 
(r)  Mineral Resources Research 
Center 
   $363,200      $481,400 
(s)  Plant Bio-Mass Energy Research 
   $126,600      $132,900 
(t)  Sea Grant Institute 
   $115,900      $121,700 
(u)  Student Loans Matching Funds 
   $92,800       $92,800  
(v)  Summer Session and Continuing 
Education Supplement 
   $1,290,700    $1,355,300 
 This appropriation includes money for 
the administration of the elderhostel 
program. 
(w)  Veterinary Diagnostic Laboratory 
   $1,045,200    $1,195,000 
 This appropriation includes $25,000 
each year from the nongame wildlife 
account in the special revenue fund for 
the Raptor Rehabilitation and Research 
Clinic. 
(x)  Productivity Center
   $200,000      $300,000
 The above appropriation is available 
upon submission of required 
documentation that the state money has 
been matched by contributions from 
nonstate sources.  Matching 
requirements may be satisfied with 
donated equipment or supplies with the 
approval of the chairmen of the senate 
finance committee and house 
appropriations committee. 
(y)  Natural Resources Research Institute
   $1,650,000    $2,250,000
(z)  Bio-Technology Center
   $500,000      $220,000
 The above appropriation for the second 
year is available upon submission of 
required documentation that the state 
money has been matched by contributions 
from nonstate sources.  Matching 
requirements may be satisfied with 
donated equipment or supplies with the 
approval of the chairmen of the senate 
finance committee and house 
appropriations committee. 
 Any unexpended balance remaining in the 
first year does not cancel but is 
available for the second year of the 
biennium. 
     Sec. 7.  [MAYO MEDICAL FOUNDATION]  1,343,900     1,204,700
  Subdivision 1.  Medical School    
   $1,191,100    $1,041,300
 The state of Minnesota shall pay a 
capitation of $8,330 in fiscal years 
1984 and 1985 for each student who is a 
resident of Minnesota for a maximum of 
40 such students in each class.  
 Capitation funds shall be paid for a 
maximum of 20 students in each class 
for students who enter Mayo Medical 
School during the 1984-1985 academic 
year or thereafter. 
 It is the intent of the legislature 
that the Mayo foundation use the 
capitation funds towards the objective 
of increasing the number of doctors 
practicing in rural areas in need of 
doctors as identified by the higher 
education coordinating board.  The Mayo 
foundation shall submit a plan to the 
legislature by December 1, 1983, on how 
it plans to meet these objectives. 
  Subd. 2.  Family Practice and 
Graduate Residency Program  
   $152,800      $163,400
 The state of Minnesota shall pay 
capitation of $12,730 in fiscal year 
1984 and $13,620 in fiscal year 1985 
for a maximum of 12 students each year. 
     Sec. 8.  [AFFIRMATIVE ACTION FOR 
TECHNOLOGY-RELATED EDUCATION.]
 It is the intent of the legislature 
that during the biennium, 
technology-related education be made 
available to all qualified registrants 
at public institutions of 
post-secondary education in Minnesota.  
The University of Minnesota, the State 
University Board, the Community College 
Board, and the Board for 
Vocational-Technical Education shall 
each develop a plan on how affirmative 
action with regard to women, 
minorities, and the handicapped will be 
promoted in the spending of 
technology-related funds for 
educational programs.  The plans shall 
be presented to the legislature by 
December 1, 1983.  
    Sec. 9.  Minnesota Statutes 1982, section 3.732, 
subdivision 1, is amended to read: 
    Subdivision 1.  As used in this section and section 3.736 
the terms defined in this section have the meanings given them. 
    (1) "State" includes each of the departments, boards, 
agencies, commissions and officers in the executive branch of 
the state of Minnesota and includes but is not limited to the 
Minnesota Educational Computing Consortium, Minnesota Housing 
Finance Agency, the Minnesota Higher Education Coordinating 
Board, the Minnesota Higher Education Facilities Authority, the 
Armory Building Commission, the State Zoological Board, the 
University of Minnesota, state universities, community colleges, 
state hospitals, and state penal institutions.  It does not 
include a city, town, county, school district, or other local 
governmental body corporate and politic. 
    (2) "Employee of the state" means all present or former 
officers, members, directors or employees of the state, members 
of the national guard, or persons acting on behalf of the state 
in an official capacity, temporarily or permanently, with or 
without compensation, but does not include an independent 
contractor. 
    (3) "Scope of his office or employment" means that the 
employee was acting on behalf of the state in the performance of 
duties or tasks lawfully assigned to him by competent authority. 
     Sec. 10.  Minnesota Statutes 1982, section 10A.01, 
subdivision 18, is amended to read: 
    Subd. 18.  "Public official" means any: 
    (a) member of the legislature; 
    (b) constitutional officer in the executive branch and his 
chief administrative deputy; 
    (c) member, chief administrative officer or deputy chief 
administrative officer of a state board or commission which has 
at least one of the following powers:  (i) the power to adopt, 
amend or repeal rules, or (ii) the power to adjudicate contested 
cases or appeals; 
    (d) commissioner, deputy commissioner or assistant 
commissioner of any state department as designated pursuant to 
section 15.01; 
    (e) individual employed in the executive branch who is 
authorized to adopt, amend or repeal rules or adjudicate 
contested cases; 
    (f) executive director of the state board of investment; 
    (g) executive director of the Indian affairs intertribal 
board; 
    (h) commissioner of the iron range resources and 
rehabilitation board; 
    (i) director of mediation services; 
    (j) deputy of any official listed in clauses (e) to (i); 
    (k) judge of the workers' compensation court of appeals; 
    (l) hearing examiner or compensation judge in the state 
office of administrative hearings or hearing examiner in the 
department of economic security; 
    (m) solicitor general or deputy, assistant or special 
assistant attorney general; 
    (n) individual employed by the legislature as secretary of 
the senate, legislative auditor, chief clerk of the house, 
revisor of statutes, or researcher or attorney in the office of 
senate research, senate counsel, or house research; or 
    (o) member or chief administrative officer of the 
metropolitan council, metropolitan transit commission, 
metropolitan waste control commission, metropolitan parks and 
open spaces commission, metropolitan airports commission or 
metropolitan sports facilities commission; or 
    (p) executive director of the Minnesota educational 
computing consortium. 
    Sec. 11.  Minnesota Statutes 1982, section 43A.08, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [ADDITIONAL UNCLASSIFIED POSITIONS.] Appointing 
authorities for the following agencies may designate additional 
unclassified positions pursuant to this subdivision:  the 
departments of administration; agriculture; corrections; 
economic security; education; employee relations; energy, 
planning and development; finance; health; human rights; labor 
and industry; natural resources; public safety; public service; 
public welfare; revenue; transportation; and veterans affairs; 
the banking, securities and real estate, insurance and consumer 
services divisions of the department of commerce; the housing 
finance and pollution control agencies; the state board of 
investment; and the offices of the secretary of state, state 
auditor and state treasurer; and the state board of vocational 
technical education.  
    A position designated by an appointing authority pursuant 
to this subdivision must meet the following standards and 
criteria:  
    (a) the designation of the position would not be contrary 
to the provisions of other law relating specifically to that 
agency;  
    (b) the person occupying the position would report directly 
to the agency head or deputy agency head and would be designated 
as part of the agency head's management team;  
    (c) the duties of the position would involve significant 
discretion and substantial involvement in the development, 
interpretation and implementation of agency policy;  
    (d) the duties of the position would not require primarily 
personnel, accounting, or other technical expertise where 
continuity in the position would be important;  
    (e) there would be a need for the person occupying the 
position to be accountable to, loyal to, and compatible with the 
governor and the agency head, or the employing constitutional 
officer;  
    (f) the position would be at the level of division or 
bureau director or assistant to the agency head; and 
    (g) the commissioner has approved the designation as being 
consistent with the standards and criteria in this subdivision. 
    Sec. 12.  Minnesota Statutes 1982, section 43A.18, 
subdivision 4, is amended to read: 
    Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
COMMISSIONER.] Notwithstanding any other law to the contrary, 
total compensation for employees listed in this subdivision 
shall be set by appointing authorities subject to the following 
limitations: 
    (a) Total compensation paid pursuant to this subdivision 
shall be within the limits of compensation plans which shall 
have been approved by the commissioner before becoming effective;
    (b) Total compensation for employees who are not covered by 
a collective bargaining agreement in the offices of the 
governor, attorney general, secretary of state, state auditor 
and state treasurer shall be determined by the governor, 
attorney general, secretary of state, state auditor and state 
treasurer, respectively;  
    (c) Total compensation for unclassified employees of the 
state board of investment shall be determined by the state board 
of investment; 
    (d) Total compensation for unclassified positions pursuant 
to section 43A.08, subdivision 1, clause (h) and, in the higher 
education coordinating board, and in the state board of 
vocational technical education shall be determined by the state 
university board and the state board for community colleges, and 
the higher education coordinating board, and the state board of 
vocational technical education, respectively; and 
    (e) Total compensation for classified hearing examiners in 
the office of administrative hearings shall be determined by the 
chief hearing examiner.  
    Sec. 13.  Minnesota Statutes 1982, section 120.17, 
subdivision 7a, is amended to read:  
    Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE HANDICAPPED.] 
Responsibility for special instruction and services for a 
visually disabled or hearing impaired child attending the 
Minnesota School for the Deaf or the Minnesota Braille and 
Sight-Saving School shall be determined in the following manner: 
    (a) The legal residence of the child shall be the school 
district in which his parent or guardian resides. 
    (b) When it is determined pursuant to section 128A.05, 
subdivisions 1 or 2 that the child is entitled to attend either 
school, the state board shall provide the appropriate 
educational program for the child.  The state board shall make a 
tuition charge to the child's district of residence for the 
actual cost of providing the program; provided, however, that 
effective for the 1979-1980 1983-1984 school year and 
thereafter, the amount of tuition charged shall not exceed the 
sum of $500 $1,000 plus the foundation aid formula allowance of 
the district for that child, for an entire school year, or a 
prorated amount based on the portion of the school year for 
which the child is a resident of the district or is actually in 
membership in the program.  For purposes of this subdivision, 
"foundation aid formula allowance" shall have the meaning 
attributed to it in section 124.32, subdivision 1a.  The 
district of the child's residence shall pay the tuition and may 
claim foundation aid for the child.  The district of the child's 
residence shall not receive aid pursuant to section 124.32, 
subdivision 5, for tuition paid pursuant to this subdivision.  
All tuition received by the state board shall be deposited in 
the state treasury. 
             (c) When it is determined that the child can benefit from 
public school enrollment but that the child should also remain 
in attendance at the applicable school, the school district 
where the institution is located shall provide an appropriate 
educational program for the child and shall make a tuition 
charge to the state board for the actual cost of providing the 
program, less any amount of aid received pursuant to section 
124.32.  The state board shall pay the tuition and other program 
costs including the unreimbursed transportation costs.  Aids for 
handicapped children shall be paid to the district providing the 
special instruction and services.  Special transportation shall 
be provided by the district providing the educational program 
and the state shall reimburse such district within the limits 
provided by law.  
    (d) Notwithstanding the provisions of clauses (b) and (c), 
the state board may agree to make a tuition charge for less than 
the amount specified in clause (b) for pupils attending the 
applicable school who are residents of the district where the 
institution is located and who do not board at the institution, 
if that district agrees to make a tuition charge to the state 
board for less than the amount specified in clause (c) for 
providing appropriate educational programs to pupils attending 
the applicable school. 
    (e) Notwithstanding the provisions of clauses (b) and (c), 
the state board may agree to supply staff from the Minnesota 
School for the Deaf and the Minnesota Braille and Sight-Saving 
School to participate in the programs provided by the district 
where the institutions are located when the programs are 
provided to students in attendance at the state schools.  
    Sec. 14.  [120.801] [MINNESOTA EDUCATIONAL COMPUTING 
CONSORTIUM, PURPOSE.] 
     The legislature recognizes that computers are becoming a 
major factor in the operation of educational institutions, both 
in cost and in importance as an instructional tool. Furthermore, 
the legislature has continually supported the development of 
curricula for Minnesota educational institutions that include 
educational computing materials.  While it is important that 
educational institutions be able to join together to gain 
economies in purchasing power, it is equally important that 
computer software and documentation be created, and 
instructional and administrative computing services be provided 
to meet the educational needs of Minnesota educational 
institutions.  The purpose of the Minnesota educational 
computing consortium is to meet these needs.  
     Sec. 15.  [120.802] [DEFINITIONS.] 
     Subdivision 1.  For the purpose of sections 14 to 19 the 
words defined in this section have the meanings given them.  
     Subd. 2.  "Consortium" means the Minnesota educational 
computing consortium originally created pursuant to Minnesota 
Statutes, section 471.59.  
     Subd. 3.  "Minnesota educational institutions" means 
Minnesota school districts or combination of school districts, 
area vocational technical institutions, the state department of 
education, community colleges, state universities, and the 
University of Minnesota.  
     Sec. 16.  [120.803] [STAFF.] 
     Subdivision 1.  The consortium board shall appoint and set 
the salary of an executive director of the consortium.  The 
executive director may employ other staff.  
     Subd. 2.  [PERSONNEL MANAGEMENT.] The executive director 
shall establish personnel policies and procedures, including the 
compensation of other staff.  
     Subd. 3.  [APPLICATION OF OTHER LAW.] The consortium is 
exempt from the application of chapters 14, 16, 16A, except 
16A.095 and 16A.10, 43A, and 179.  Notwithstanding chapter 13, 
the consortium shall not be required to disclose any copyrighted 
material.  Consortium employees may participate in the Minnesota 
state retirement system and the teachers' retirement system. The 
commissioner of administration shall provide administrative 
services if requested by the consortium, and the consortium 
shall reimburse the commissioner for services provided.  The 
consortium is empowered to purchase or lease real estate 
necessary for the consortium's operations but in no event shall 
the consortium rely upon the full faith and credit of the state 
of Minnesota.  
     Sec. 17.  [120.804] [DUTIES OF CONSORTIUM.] 
     Subdivision 1.  [PRODUCTS.] Notwithstanding any law to the 
contrary, the consortium shall provide its services and products 
at cost, including overhead, to Minnesota educational 
institutions.  
     Subd. 2.  [SERVICES TO OTHERS.] The consortium may provide 
its products and services for educational purposes to other than 
Minnesota educational institutions.  To further the public 
purpose expressed in section 14, the consortium shall establish 
a differential pricing policy between sales to Minnesota 
educational institutions and sales to others.  
     Sec. 18.  [120.805] [POWERS.] 
     The consortium may:  
     (a) develop computer software and documentation for use by 
educational institutions;  
     (b) train educators in the use of computing;  
     (c) research and develop innovative uses of instructional 
and management computing for education; and 
     (d) contract with educational institutions for the 
development of software, documentation, and instructional and 
management computing services and charge for the cost of the 
development or services. 
     Sec. 19.  [120.806] [MINNESOTA EDUCATIONAL INSTITUTIONS; 
POWERS.] 
     All Minnesota educational institutions are authorized to 
designate the consortium as their purchasing agent for computer 
hardware, software, and development of software.  Minnesota 
educational institutions are authorized, notwithstanding the 
requirements of sections 16.07, 471.345, or 123.37, to contract 
directly with the consortium for the development of computer 
programs and documentation and for instructional and management 
computing services for educational institutions.  
    Sec. 20.  [REPORT.] 
    The Minnesota educational computing consortium board shall 
study and report to the chairmen of the house appropriations and 
senate finance committees and of the house and senate education 
committees by January 15, 1984, on the feasibility and 
desirability of transferring all or part of the powers and 
duties of the consortium to a nonprofit corporation, state 
agency, or other appropriate organizational structure.  The 
report shall include recommendations for legislation needed to 
accomplish any recommendations.  
    Sec. 21.  Minnesota Statutes 1982, section 120.81, is 
amended to read: 
    120.81 [MINNESOTA EDUCATIONAL COMPUTING CONSORTIUM, 
RECEIPTS.] 
    Subdivision 1.  Effective October 1, 1977, no funds 
appropriated by the state shall be transferred to or expended 
with or by the Minnesota educational computing consortium unless 
the consortium adheres to the provisions of chapters 15, 16, 
excepting sections 16.90 and 16.94 thereof, 16A and 43.  
    Subd. 2.  Notwithstanding the provisions of subdivision 1, 
The consortium is authorized to maintain a revolving fund for 
all receipts derived from computer services provided by the 
consortium.  The Minnesota educational computing consortium 
shall charge users of consortium facilities for on-line computer 
time actually used services and products.  Receipts shall be 
deposited in the Minnesota educational computing consortium 
revolving fund and are appropriated to the consortium.  The 
consortium board shall appoint an executive director who shall 
be its chief administrative officer.  The executive director may 
be in the unclassified service.  All other employees are in the 
classified service of the state.  
    Sec. 22.  Minnesota Statutes 1982, section 121.11, is 
amended by adding a subdivision to read:  
    Subd. 15.  [CERTAIN LICENSURE RULES.] The state board of 
education shall adopt and maintain as its rules for licensure of 
adult vocational education teachers, supervisory, and support 
personnel the rules of the state board of vocational technical 
education.  
    Sec. 23.  Minnesota Statutes 1982, section 121.212, 
subdivision 2, is amended to read: 
    Subd. 2.  Any fee established by the board pursuant to the 
authority granted in subdivision 1 shall not exceed $1 per day 
per vehicle.  Parking fees collected shall be deposited in the 
general or capital expenditure fund of the school district or 
joint school district. 
    Sec. 24.  Minnesota Statutes 1982, section 121.931, 
subdivision 7, is amended to read:  
    Subd. 7.  [APPROVAL POWERS.] The state board, with the 
advice and assistance of the ESV computer council, shall approve 
or disapprove the following, according to the criteria in 
section 121.937 and after promulgation, the rules adopted 
pursuant to subdivision 8: 
    (a) the creation of regional management information centers 
pursuant to section 121.935; 
    (b) the transfer by a district of its affiliation from one 
regional management information center to another; 
    (c) the use by a district of an alternative management 
information system to ESV-IS pursuant to section 121.936, 
subdivisions 2 to 4; and 
    (d) annual and biennial plans and budgets submitted by 
regional management information centers pursuant to section 
121.935, subdivisions 3 and 4; and 
    (e) Expenditures by districts for computer activities other 
than fees paid to regional management information centers.  
    Sec. 25.  Minnesota Statutes 1982, section 121.934, 
subdivision 2, is amended to read:  
    Subd. 2.  [MEMBERSHIP.] The council shall be composed of:  
    (a) four representatives of school districts, including one 
school district administrator from a rural school district, one 
school district administrator from an urban school district, one 
school board member from a rural school district, and one school 
board member from an urban school district;  
    (b) Two representatives of regional management information 
center governing boards, including one member of a regional 
management information center board from a region which is 
predominantly rural and one member of a regional management 
information center board from a region which is predominantly 
urban;  
    (c) Two three persons employed in management positions in 
the private sector, at least one two of whom is a are data 
processing manager managers or holds hold an equivalent position 
in the private sector;  
    (d) Two (c) three persons employed in management positions 
in the public sector other than elementary, secondary, or 
vocational education, at least one two of whom is a are data 
processing manager managers or holds hold an equivalent position 
in the public sector; and 
    (e) (d) one person from the general public.  
    All the members appointed pursuant to clauses (a), (b) and 
(e) shall represent different regional management information 
centers.  Members selected pursuant to clauses (b) and (c) and 
(d) shall not be employees or board members of local school 
districts or the department of education.  The council shall 
include at least one resident of each congressional district.  
    Sec. 26.  Minnesota Statutes 1982, section 123.742, is 
amended by adding a subdivision to read: 
    Subd. 4.  The department of education may provide career 
information to school districts and educational systems.  The 
department may collect reasonable fees for subscriptions to the 
Minnesota career information service.  
    Sec. 27.  Minnesota Statutes 1982, section 123.743, is 
amended to read: 
    123.743 [APPROPRIATION.] 
    There is annually appropriated from the general fund to the 
department of education any and all amounts received by the 
department pursuant to section 123.742, subdivisions 2 and 3 and 
section 26. 
    Sec. 28.  Minnesota Statutes 1982, section 124.48, is 
amended to read: 
    124.48 [INDIAN SCHOLARSHIPS.] 
    Subdivision 1.  [AWARDS.] The state board, with the advice 
and counsel of the Minnesota Indian scholarship committee, may 
award scholarships to any Minnesota resident student who is of 
one-fourth or more Indian ancestry, who has applied for other 
existing state and federal scholarship and grant programs, and 
who, in the opinion of the board, has the capabilities to 
benefit from further education.  Scholarships shall be for 
advanced or specialized education in accredited or approved 
colleges or in business, technical or vocational schools.  
Scholarships shall be used to defray the total cost of education 
including tuition, incidental fees, books, supplies, 
transportation, other related school costs and the cost of board 
and room and shall be paid directly to the college or school 
concerned.  The total cost of education includes all tuition and 
fees for each student enrolling in a public institution and the 
portion of tuition and fees for each student enrolling in a 
private institution that does not exceed the tuition and fees at 
a comparable public institution.  Each student shall be awarded 
a scholarship based on the total cost of the student's education 
and a standardized need analysis.  The amount and type of each 
such scholarship shall be determined through the advice and 
counsel of the Minnesota Indian scholarship committee.  
    When an Indian student satisfactorily completes the work 
required by a certain college or school in a school year he the 
student is eligible for additional scholarships, if additional 
training is necessary to reach his the student's educational and 
vocational objective.  Scholarships may not be given to any 
Indian student for more than four five years of study without 
special approval of the Minnesota Indian scholarship committee. 
    Subd. 2.  [REPORT TO LEGISLATURE.] By December 1 of each 
even-numbered year, the state board of education shall report to 
the education committees of the legislature about the status of 
Indian scholarships and the recipients.  
    Sec. 29.  [135A.01] [FUNDING POLICY.] 
    It is the policy of the legislature that state 
appropriations for the instructional services at public 
post-secondary institutions reflect the cost of providing the 
instructional services.  
    Sec. 30.  [135A.02] [APPLICABILITY.] 
    The total cost of providing instructional services shall be 
used to appropriate money to the board of regents of the 
University of Minnesota, state university board, state board for 
community colleges, and the state board for vocational education 
to the extent the money is for instructional services.  
    Sec. 31.  [135A.03] [APPROPRIATIONS FOR INSTRUCTIONAL 
SERVICES.] 
    Subdivision 1.  [DETERMINATION OF APPROPRIATION.] The 
appropriation to each board for instructional services shall 
equal the total cost of instruction minus the estimated tuition 
revenue.  
    Subd. 2.  [DETERMINATION OF TOTAL COST OF INSTRUCTION.] The 
total cost of instruction shall be calculated in the following 
manner.  
    (a) Determine the student enrollment, for each 
instructional category, for the fiscal year two years before the 
fiscal year for which the appropriation is to be made.  
    (b) Multiply the student enrollment by the average cost of 
instruction per student in each instructional category.  
    (c) Add the resulting products.  
    Subd. 3.  [DETERMINATION OF STUDENT ENROLLMENT.] Student 
enrollment shall be the full-year equivalent or average daily 
membership enrollment in each instructional category in the 
fiscal year two years before the fiscal year for which the 
appropriations are being made.  Student enrollment may be 
estimated on the basis of the fall enrollment.  Student 
enrollment shall exclude students enrolled during a summer 
session, except when the instructional program is provided 
during the entire calendar year.  Each board shall submit by 
December 1 of each year the student enrollment data necessary to 
determine appropriations.  The data shall be submitted to the 
commissioner of finance.  
    Subd. 4.  [DETERMINATION OF AVERAGE COST OF INSTRUCTION.] 
(a) The average cost of instruction shall include direct 
instructional costs and other costs necessary to provide 
instruction, such as fees, facilities, administration, and 
support.  The average cost of instruction shall not include 
summer session costs, except when the instructional program is 
provided during the entire calendar year.  
    (b) Each board shall submit by December 1, 1983, its 
average cost of instruction for each instructional category for 
the 1984 fiscal year.  Annually thereafter by December 1, each 
board shall submit the average cost of instruction for each 
instructional category as necessary to determine 
appropriations.  The information shall be submitted to the 
commissioner of finance.  
    Subd. 5.  [INSTRUCTIONAL CATEGORIES.] Average cost of 
instruction shall be determined by categories of cost of program 
and level of instruction and student enrollment in each category.
    Sec. 32.  [135A.04] [VARIABLE TUITION.] 
    The board of regents of the University of Minnesota, state 
university board, state board for community colleges, and state 
board for vocational education shall establish tuition.  Tuition 
may vary by program, level of instruction, cost of instruction, 
or other classifications determined by each board.  
    Sec. 33.  [135A.05] [TASK FORCE.] 
    The commissioner of finance shall establish a task force on 
average cost funding.  The task force shall include 
representation from each of the public systems of post-secondary 
education, post-secondary students, the higher education 
coordinating board, the education division of the house 
appropriations committee, and education subcommittee of the 
senate finance committee, the office of state auditor, and the 
uniform financial accounting and reporting advisory council. The 
task force shall be convened and chaired by the commissioner of 
finance or his designee and staffed by the department of 
finance.  The task force shall review and make recommendations 
on the definition of instructional cost in all four systems, the 
method of calculating average cost for funding purposes, the 
method used to assign programs to the proper level of cost at 
each level of instruction, the adequacy of the accounting data 
for defining instructional cost in a uniform manner, and the 
biennial budget format to be used by the four systems in 
submitting their 1985-1987 biennial budget requests.  The task 
force shall submit a report on these matters to the legislature 
by December 1 of each year.  
    Sec. 34.  [135A.06] [SYSTEM PLANS:  UNIVERSITY OF 
MINNESOTA; STATE UNIVERSITY BOARD; STATE BOARD FOR COMMUNITY 
COLLEGES; STATE BOARD FOR VOCATIONAL EDUCATION.] 
    Subdivision 1.  It is the intent of the legislature that 
the planning efforts of the public post-secondary education 
systems be summarized and reported to the legislature.  These 
planning efforts include, but are not limited to, the on-going 
intrasystem and intersystem planning processes and the 
information provided by the systems to the governor's commission 
on the future of post-secondary education.  In order to 
accomplish this goal, the University of Minnesota board of 
regents, the state university board, the state board for 
community colleges, and the state board for vocational education 
shall each submit to the governor and the legislature on 
December 1 of each even-numbered year a planning report for its 
system.  The planning report shall contain the mission of the 
system and short- and long-range plans for programs, staff, and 
facilities.  The report shall specify the mission and plans for 
two, five, and ten years.  The assumptions used in developing 
the plans shall be included.  
    Subd. 2.  [MISSION.] Each system shall review its mission 
as it relates to instruction, research, and public service.  
    Subd. 3.  [SYSTEM PLANS.] (a) Each system shall review its 
program plan for instruction, research, and public service. 
Program plans shall include a statement of program priorities 
for undergraduate, graduate, and professional education. Program 
plans shall also include data about program cost and average 
class size within each institution.  
    (b) Each system shall review its plan for adjusting the 
number of facilities, staff, and programs to projected level of 
demand.  Plans for adjustments shall consider campus and program 
mergers, campus and program closings, new governance structures, 
and other methods including consolidation of institutions, 
services, and programs with institutions serving the same 
geographic area which are operated by different governing boards.
    (c) Each system shall consult with the higher education 
coordinating board throughout the planning process.  
    Subd. 4.  [PLANNING FACTORS.] Each planning report shall 
consider the following factors at a minimum.  
    (a) Enrollment projections for two, five, and ten years. If 
a system uses projections which are different from the most 
recent available projections produced by the higher education 
coordinating board, the system shall compare its projections 
with enrollment projections prepared by the higher education 
coordinating board, and the system shall identify the method and 
assumptions used to prepare its projections;  
    (b) Estimated financial costs and savings of alternative 
plans for adjusting facilities, staff, and programs to declining 
enrollments and fiscal resources;  
    (c) Opportunities for providing services cooperatively with 
other public and private institutions in the same geographic 
area.  
    Subd. 5.  [HECB REVIEW AND COMMENT.] The higher education 
coordinating board shall review and comment on the reports 
prepared by the systems.  In order to provide sufficient time 
for this review, systems shall submit the reports to the 
coordinating board on September 1 prior to the December 1 
submission to the governor and legislature.  Before the higher 
education coordinating board forwards its review and comment to 
the legislature, each system shall be given the opportunity by 
the higher education coordinating board to respond to the higher 
education coordinating board review.  In order to provide 
sufficient time for the systems to respond, the HECB shall 
provide copies of its review and comment to the systems by 
October 15 and the systems shall submit any responses to the 
higher education coordinating board by November 15, prior to the 
January 2 submission to the governor and the legislature.  The 
system responses shall accompany the higher education 
coordinating board review and comment when it is submitted to 
the governor and the legislature.  As part of its review and 
comment, the higher education coordinating board shall present 
information on the costs, enrollment, and participation in 
public post secondary institutions.  
    Sec. 35.  [135A.07] [EXECUTIVE SALARIES.] 
    [Subdivision 1.] Nothwithstanding the provisions of 
chapters 15A and 43A and any other law passed during the 1983 
legislative session, the state university board, the community 
college board, the higher education coordinating board, the 
state board of education, and the state board of vocational 
technical education may establish salaries for the chancellor, 
executive director, commissioner, and the state director, 
respectively, based on the level of responsibility and authority 
of the positions.  The boards may also consider appropriate 
market comparisons with comparable positions in the midwest.  
    Sec. 36.  Minnesota Statutes 1982, section 136.03, is 
amended to read: 
    136.03 [MANAGEMENT OF STATE UNIVERSITIES.] 
    The state universities shall be under the management, 
jurisdiction, and control of the state university board; and it 
shall have and possess all of the powers, jurisdiction, and 
authority, and shall perform all of the duties by them possessed 
and performed on and prior to April 1, 1901, except as 
hereinafter stated.  Notwithstanding the provisions of sections 
136.01, 136.015, and 136.017, the state university board, as it 
deems necessary, may close state universities under its 
jurisdiction.  Prior to closing a state university the board 
shall hold a public hearing on the issue in the area which would 
be affected by the closing.  At the hearing affected persons 
shall have an opportunity to present testimony.  The hearing 
shall be conducted by the office of administrative hearings. The 
hearing examiner shall prepare a summary of testimony received 
at the hearing for the board.  The board shall give notice of 
this hearing by publishing notice in the State Register and in a 
newspaper of general circulation in the affected area at least 
30 days before the scheduled hearing.  
    Sec. 37.  [136.031] [CARRY OVER AUTHORITY.] 
    The state university board may carry over any unexpended 
balance from its appropriation from the first year of a biennium 
into the second year of the biennium.  The board may carry over 
an unexpended balance up to a maximum of two percent of its 
biennial appropriation into the following biennium.  These 
moneys shall not be taken into account in determining state 
appropriations.  
    Sec. 38.  Minnesota Statutes 1982, section 136.144, is 
amended to read: 
    136.144 [PROMOTION OF UNIVERSITY; ACCEPTANCE OF GIFTS.] 
    The board may receive and accept on behalf of the state and 
for the state universities any gift, bequest, devise, endowment, 
or grant in the form of cash which any person, firm, 
corporation, association, or governmental agency may make to the 
board by will, deed, gift, or otherwise to carry out the 
purposes of section 136.143.  Unless otherwise so expressed in 
the terms of the gift, bequest, devise, endowment, or grant, 
moneys so received are not subject to the laws requiring 
budgeting, allotment, and encumbrance as provided in chapter 
16A, or otherwise.  Such Moneys These moneys shall be deposited 
in the state treasury and are hereby appropriated to the board 
for use in accordance with according to this section.  These 
moneys shall not be taken into account in determining 
appropriations or allocations.  
    Sec. 39.  Minnesota Statutes 1982, section 136.62, is 
amended by adding a subdivision to read: 
    Subd. 7.  [CLOSING AUTHORITY.] Notwithstanding the 
provisions of sections 136.60 and 136.602, the board, as it 
deems necessary, may close community colleges under its 
jurisdiction.  Prior to closing a community college the board 
shall hold a public hearing on the issue in the area which would 
be affected by the closing.  At the hearing affected persons 
shall have an opportunity to present testimony.  The hearing 
shall be conducted by the office of administrative hearings. The 
hearing examiner shall prepare a summary of testimony received 
at the hearing for the board.  The board shall give notice of 
this hearing by publishing notice in the State Register and in a 
newspaper of general circulation in the affected area at least 
30 days before the scheduled hearing.  
    Sec. 40.  Minnesota Statutes 1982, section 136.67, is 
amended by adding a subdivision to read: 
    Subd. 5.  [CARRY OVER AUTHORITY.] The community college 
board may carry over any unexpended balance from its 
appropriation from the first year of a biennium into the second 
year of the biennium.  The board may carry over an unexpended 
balance up to a maximum of two percent of its biennial 
appropriation into the following biennium.  These moneys shall 
not be taken into account in determining state appropriations.  
    Sec. 41.  [LEGISLATIVE INTENT.] 
     (1) The state scholarship and grant-in-aid programs amended 
in this act are intended to help men and women of the state with 
financial need pay the costs of their education.  
     (2) It is the intention of the legislature that the 
responsibility for the costs of attendance at the institutions 
of students' choosing be shared by students, parents, and 
government and that the responsibilities be set forth.  
   (3) Aid is to be made available to eligible students only 
after taking into account contributions from the students, 
parents, and federal Pell grants for which the applicants are 
eligible.  
     (4) All students, as the main beneficiaries of the 
education, will be expected to make substantial contributions of 
the same proportion equal to at least half of the cost of 
attendance from savings, earnings, loans, and other resources.  
     (5) Further, the students' parents, if financially able, 
are expected to make a contribution to the cost of attendance.  
    Sec. 42.  Minnesota Statutes 1982, section 136A.121, is 
amended to read: 
    136A.121 [SCHOLARSHIPS AND GRANTS-IN-AID.] 
    Subdivision 1.  [ELIGIBILITY FOR SCHOLARSHIPS.] An 
applicant shall be eligible to compete be considered for a 
scholarship under the provisions of sections 136A.09 to 136A.131 
if the board finds that applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) has met all the requirements for admission as a 
full-time student to an eligible institution of his choice as 
defined in sections 136A.09 to 136A.131; 
    (3) has demonstrated capacity for superior achievement at 
the institutional level as measured by standards prescribed by 
the board; 
    (4) is a qualified applicant as defined herein. 
    Subd. 2.  [ELIGIBILITY FOR GRANTS-IN-AID.] An applicant 
shall be eligible to compete be considered for a grant-in-aid, 
regardless of the applicant's sex, creed, race, color, national 
origin, or ancestry, under the provisions of sections 136A.09 to 
136A.131 if the board finds that applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) is a graduate of a secondary school or its equivalent, 
or is 17 years of age or over, and has met all requirements for 
admission as a full-time student to an eligible college or 
vocational school of his choice as defined in sections 136A.09 
to 136A.131 or has completed at least one academic year of study 
at a two-year institution and seeks transfer to a four-year 
eligible institution; 
    (3) has met such criteria pertaining to financial need as 
the board shall make by regulation. 
    Subd. 3.  [ALLOCATION AND AMOUNT.] Scholarships and 
grants-in-aid shall be awarded annually on a funds available 
basis to those applicants for initial awards and applicants for 
renewal awards who meet the board's requirements. 
    Subd. 4.  [SCHOLARSHIP STIPENDS.] An eligible scholarship 
applicant shall be considered for a financial stipend shall 
accompany scholarship awards if the scholarship winner applicant 
demonstrates financial need and will attend an eligible 
institution.  Financial stipends shall range from a maximum of 
$1,100 in the 1979-1980 school year, $1,250 in the 1980-1981 
school year and up to $1,400 in the 1981-1982 school year and 
subsequent school years to a minimum of $100 but in no event 
shall exceed one-half of the applicant's financial need or an 
amount which if combined with the amount of a federal basic 
educational opportunity grant for which the applicant is 
eligible equals 75 percent of the applicants need, whichever is 
the lesser.  An eligible scholarship winners applicant who do 
does not demonstrate financial need under criteria prescribed by 
the board shall be awarded an honorary scholarships 
scholarship.  The amount of a financial stipend shall not exceed 
a scholarship applicant's cost of attendance, as defined in 
subdivision 6, after deducting the following:  
    (a) a contribution by the scholarship applicant of at least 
50 percent of the cost of attending the institution of the 
applicant's choosing;  
    (b) a contribution by the scholarship applicant's parents, 
as determined by a standardized need analysis; and 
    (c) the amount of a federal Pell grant award for which the 
scholarship applicant is eligible.  
    The minimum financial stipend shall be $100.  
    Subd. 5.  [GRANTS-IN-AID STIPENDS.] A financial stipend 
based on financial need shall accompany grants-in-aid.  
Financial stipends shall range from a maximum of $1,100 in the 
1979-1980 school year, $1,250 in the 1980-1981 school year and 
up to $1,400 in the 1981-1982 school year and subsequent school 
years to a minimum of $100, but in no event shall exceed 
one-half of the applicant's financial need, or an amount which 
if combined with the amount of a federal basic educational 
opportunity grant for which the applicant is eligible equals 75 
percent of the applicants need, whichever is the lesser.  The 
amount of a financial stipend shall not exceed a grant 
applicant's cost of attendance, as defined in subdivision 6, 
after deducting the following:  
    (a) a contribution by the grant applicant of at least 50 
percent of the cost of attending the institution of the 
applicant's choosing;  
    (b) a contribution by the grant applicant's parents, as 
determined by a standardized need analysis; and 
    (c) the amount of a federal Pell grant award for which the 
grant applicant is eligible.  
     The minimum financial stipend shall be $100.  
    Subd. 6.  [COST OF ATTENDANCE.] The cost of attendance 
shall consist of allowances specified by the board for room and 
board and miscellaneous expenses, and 
    (a) for public institutions, tuition and fees charged by 
the institution; or 
    (b) for private institutions, beginning July 1, 1985, an 
allowance for tuition and fees equal to the lesser of (1) the 
actual tuition and fees charged by the institution, or (2) the 
instructional costs per full-year equivalent student in 
comparable public institutions.  Prior to July 1, 1985, the 
tuition and fees allowance shall not exceed the instructional 
costs per full-year equivalent student in comparable public 
institutions.  
    Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
appropriated is insufficient to make full awards to applicants 
pursuant to subdivision 4, then awards shall be reduced by 
    (a) adding a surcharge to the contribution of the 
applicant's parents, and 
    (b) a percentage increase in the applicant's contribution.  
     Subd. 8.  [PRIORITY.] In dispensing available funds in a 
given year, priority shall be given on the following basis: 
first to renewal scholarships and grants-in-aid.  Thereafter, 
until the funds are exhausted, and second to applicants for 
initial awards, on the basis of their rank in the case of 
scholarships, and on the basis of need with all applicants 
treated as a single pool of applicants in the case of 
grants-in-aid, as determined by standards prescribed by the 
board. 
    Subd. 7 9.  [INITIAL AWARDS.] Only first year students 
shall be eligible to apply for and receive initial scholarship 
awards.  Only first year and transfer students who meet the 
board's requirements shall be eligible to apply for and receive 
initial grants-in-aid for the 1977-1978 school year.  First year 
students, transfer students who meet the board's requirements 
and second year students who did not receive a grant-in-aid 
award upon entrance to post-secondary education shall be 
eligible to apply for and receive initial grants-in-aid for the 
1978-1979 and 1979-1980 school years.  Any undergraduate student 
who has not previously received a scholarship or grant-in-aid 
and who meets the board's requirements shall be eligible to 
apply for and receive a an initial grant-in-aid in any year of 
undergraduate study for the 1980-1981 school year and subsequent 
school years.  
    Subd. 8 10.  Each scholarship or grant-in-aid shall be 
awarded for one academic year but shall be renewable for a 
maximum of six semesters or nine quarters or their equivalent 
but may not continue after the recipient has obtained a 
baccalaureate degree or been enrolled full-time or the 
equivalent for the number of semesters or quarters normally 
required to complete a baccalaureate degree, whichever occurs 
first.  
    Subd. 9 11.  Each scholarship or grant-in-aid shall be 
renewable, contingent on continued residency in Minnesota, 
satisfactory academic standing and recommendation of the college 
or vocational school and, in the case of financial assistance, 
evidence of continued need. 
    Subd. 10 12.  The student must apply for renewal of his 
scholarship or grant-in-aid each year. 
    Subd. 11 13.  The deadline for The board to must accept 
applications for state scholarships and grants-in-aid shall be 
not earlier than until February 15 and may establish a deadline 
for the acceptance of applications which is later than February 
15. 
    Subd. 12 14.  The student must continue to attend an 
eligible institution. 
    Subd. 13 15.  All scholarship winners and grant-in-aid 
recipients shall be notified of their award awards by the board 
and shall be given appropriate evidence of the award. 
    Subd. 14.  All grant-in-aid recipients shall be duly 
notified thereof by the board.  
    Subd. 15 16.  Financial scholarships and grants-in-aid 
awarded under the terms of sections 136A.09 to 136A.131 shall be 
applied to educational costs in the following order:  tuition, 
fees, books, supplies and other expenses.  Unpaid portions of 
such awards shall revert to the board scholarship or 
grant-in-aid account. 
    Sec. 43.  Minnesota Statutes 1982, section 136A.14, is 
amended to read: 
    136A.14 [STUDENT LOANS, PURPOSE.] 
    The legislature has found and hereby declares that the 
encouragement of the maximum educational development of the 
young men and women of Minnesota is in the best interest of the 
state.  The state loan program programs would encourage students 
to continue their education and provide financial assistance for 
those who would not otherwise be able to do so.  The state loan 
program programs provided for herein is designated except the 
loan programs authorized under section 49 are designed to be 
compatible with the provisions of the Higher Education Act of 
1965.  In furtherance of the loan programs provided for in 
sections 136A.14 to 136A.17 and section 49, the board may enter 
into such contracts, agreements, and guarantees with reference 
to the loans or the issuance of revenue bonds as may be 
necessary to carry out the programs.  
    Sec. 44.  Minnesota Statutes 1982, section 136A.141, is 
amended to read:  
    136A.141 [STUDENT LOAN PROGRAM.] 
    The higher education coordinating board shall establish and 
supervise one or more student loan programs in accordance with 
the provisions of sections 136A.14 to 136A.17 and section 49. 
    Sec. 45.  Minnesota Statutes 1982, section 136A.143, is 
amended to read: 
    136A.143 [FOREIGN STUDENTS; RESIDENT TUITION.] 
    Institutions of higher education in Minnesota shall be 
authorized to grant resident status for the purpose of paying 
tuition fees in each institution to bona fide foreign students 
after their first year in Minnesota, provided that the total 
number of these residencies shall not exceed one-half of one 
percent of total full-time equivalent fall term enrollment of 
these institutions, provided further that these residencies 
shall be granted on the basis of demonstrated financial need as 
determined by the higher education coordinating board. 
    Sec. 46.  Minnesota Statutes 1982, section 136A.15, is 
amended to read: 
    136A.15 [DEFINITIONS.] 
    Subdivision 1.  For purposes of sections 136A.14 to 136A.17 
and section 49, the terms defined in this section have the 
meanings ascribed to them: 
    Subd. 2.  "Academic year or its equivalent" shall be as 
defined in the federal regulations which govern the 
administration of the National Vocational Student Loan Insurance 
Act of 1965 and title IV of the Higher Education Act of 1965.  
    Subd. 3.  "Board" means the Minnesota higher education 
coordinating board. 
    Subd. 4.  "Director" means the executive director of the 
Minnesota higher education coordinating board. 
    Subd. 5.  "Eligible institution" means any public 
educational institution and any private educational institution, 
in any state which is approved by the U.S. commissioner of 
education in accordance with requirements set forth in the 
Higher Education Act of 1965, as amended. 
    Subd. 6.  "Eligible lender" means an eligible institution, 
an agency or instrumentality of a state, or a financial or 
credit institution (including an insurance company) which is 
subject to examination and supervision by an agency of the state 
of Minnesota or of the United States. 
    Subd. 7.  "Eligible student" means a student who is 
officially registered or accepted for enrollment at an eligible 
institution in Minnesota or a Minnesota resident who is 
officially registered as a student or accepted for enrollment at 
an eligible institution in another state.  Eligible student, 
except for purposes of section 136A.161 49, includes parents of 
an eligible student as the term "parent" is defined in the 
Higher Education Act of 1965, as amended, and the regulations 
promulgated thereunder.  Except for the purposes of section 49, 
eligible student also includes students eligible for auxiliary 
loans as the term auxiliary is defined in the Higher Education 
Act of 1965, as amended, and the regulations promulgated 
thereunder.  
    Sec. 47.  Minnesota Statutes 1982, section 136A.16, is 
amended to read: 
    136A.16 [POWERS AND DUTIES OF BOARD.] 
    Subdivision 1.  The Minnesota higher education coordinating 
board is hereby designated as the administrative agency for 
carrying out the purposes and terms of sections 136A.14 to 
136A.17 and section 49. 
    Subd. 2.  The board shall adopt policies and prescribe 
appropriate rules and regulations to carry out the purposes of 
sections 136A.14 to 136A.17 and section 49.  Such The policies, 
rules, and regulations except as they relate to loans under 
section 49 shall be compatible with the provisions of the 
National Vocational Student Loan Insurance Act of 1965 and the 
provisions of title IV of the Higher Education Act of 1965, and 
any amendments thereof. 
    Subd. 3.  The board may make loans in amounts not to exceed 
the maximum amount provided in the Higher Education Act of 1965 
and any amendments thereof except that the limitation shall not 
apply to loans under section 49.  The board may establish 
procedures determining the loan amounts for which students are 
eligible. 
    Subd. 4.  The board may contract with or enter into 
agreements with eligible lenders for the purpose of making loans 
to eligible students in accordance with the policies and rules 
of the board. 
    Subd. 5.  The board shall have the right to contract with 
guarantee agencies, insurance agencies, and/or collection 
agencies, or any other person, to carry out the purposes of 
sections 136A.14 to 136A.17 and section 49. 
    Subd. 6.  The board shall be empowered to charge for 
insurance on each loan a premium, payable each year in advance,. 
The premiums shall not be in an amount not to exceed in excess 
of the premium in the federal regulations which govern the 
vocational and higher education loan program except that the 
limitation shall not apply to loans under section 49.  Premium 
fees shall be available to the board without fiscal year 
limitation for the purposes of making loans and meeting expenses 
incurred in of administering the program loan programs. 
    Subd. 7.  The board may apply for, receive, accept, and 
disburse federal funds, as well as funds from other public and 
private sources, made available to the state for loans or as 
administrative moneys to operate student loan programs.  In 
making application for federal funds, it may comply with all 
requirements of such state and federal law and such rules and 
regulations, and enter into the contracts necessary to enable it 
to receive, accept, and administer such funds. 
    Subd. 8.  Moneys made available to the board which are not 
immediately needed for the purposes of sections 136A.14 to 
136A.17 and section 49 may be invested by the board.  Such 
moneys shall be invested in bonds, certificates of indebtedness, 
and other fixed income securities, except preferred stocks, 
which are legal investments for the permanent school fund.  Such 
moneys may also be invested in such prime quality commercial 
paper as is eligible for investment in the state employees 
retirement fund.  All interest and profits from such investments 
shall inure to the benefit of the board. 
    Subd. 9.  The board shall be empowered to employ such 
professional and clerical staff as the director deems necessary 
for the proper administration of the loan program programs 
established and defined by sections 136A.14 to 136A.17 and 
section 49. 
    Subd. 10.  Subject to its directives and review, the board 
may delegate to the director the responsibility for issuance of 
public information concerning provisions of sections 136A.14 to 
136A.17 and section 49, for design of loan application forms, 
and for prescribing procedures for submission of applications 
for loans. 
    Subd. 11.  The board shall periodically review and evaluate 
its programs and activities and shall report to the governor on 
or before the beginning of each session of the state legislature.
    Subd. 12.  The board shall establish and maintain 
appropriate accounting and related records. 
    Subd. 13.  Before implementing a loan program for parents 
as defined in section 136A.15, subdivision 7, the board shall 
obtain approval from the legislative advisory commission.  
    Sec. 48.  Minnesota Statutes 1982, section 136A.17, is 
amended to read:  
    136A.17 [PROGRAM REQUIREMENTS PROVISIONS FOR FEDERAL 
PROGRAMS.] 
    Subdivision 1.  A student shall be eligible to apply for a 
loan under the provisions of sections 136A.14 to 136A.17 if the 
board finds that the student is an eligible student as defined 
in those sections and is eligible for a loan under federal laws 
and regulations governing the federal guaranteed student loan 
program programs.  
    Subd. 2.  The student loan program programs shall be 
administered in compliance with title VI of the Civil Rights Act 
of 1964. 
    Subd. 3.  The board may loan money upon such terms and 
conditions as the board may prescribe and it may acquire student 
loans from other lenders to facilitate the student loan programs 
provided for in this section. 
    Subd. 4.  No loan shall be made in excess of the maximum 
provided by pertinent federal laws and regulations.  The 
aggregate unpaid principal amount of loans to any individual 
student shall not exceed the maximum provided in pertinent 
federal laws and regulations. 
    Subd. 5.  The board may make loans for vocational study to 
an individual student for a maximum of three academic years or 
their equivalent and loans for higher education to an individual 
student for a maximum of eight academic years of study or their 
equivalent. 
    Subd. 6.  No loans made by the board shall be made at an 
annual rate of interest in excess of the maximum prescribed in 
the National Vocational Student Loan Insurance Act of 1965 and 
the Higher Education Act of 1965, and any amendments thereof. 
    Subd. 7.  The benefits of the loan program programs will 
not be denied any student because of his family income or lack 
of need if his adjusted annual family income at the time the 
note is executed is less than the maximum prescribed in the 
applicable federal regulations. 
    Subd. 8.  The repayment procedures applicable for loans 
made by the board shall be consistent with federal regulations 
governing interest payments under the National Vocational 
Student Loan Insurance Act of 1965 and the Higher Education Act 
of 1965. 
    Subd. 9.  The board may take, hold, and administer, on 
behalf of the board and for any of its purposes, real property, 
personal property and moneys, or any interest therein, and the 
income therefrom, either absolutely or in trust, for any 
purposes of the board.  The board may acquire property or moneys 
for such purposes by purchase or lease and by the acceptance of 
gifts, grants, bequests, devises or loans; and may enter into 
contracts with other nonprofit corporations or institutions with 
the same or similar purposes as will benefit and improve the 
operation of the board and its loan programs. 
    Subd. 10.  The board may establish variable repayment 
schedules consistent with the need and anticipated income 
streams of borrowers.  The repayment schedules shall not violate 
the federal laws and regulations governing federal guaranteed 
student loan programs. 
    Subd. 11.  No moneys originating from state sources in the 
state treasury shall be made available for student loans and all 
student loans shall be made from moneys originating from 
nonstate sources. 
    Sec. 49.  [136A.1701] [SUPPLEMENTAL AND ADDITIONAL LOANS.] 
    Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The higher 
education coordinating board may provide for programs of loans 
which may be made in lieu of or in addition to loans authorized 
under sections 136A.14 to 136A.17 and applicable provisions of 
federal law as provided in this section.  
    Subd. 2.  [PURPOSE OF PROGRAM.] The purpose of the loan 
programs under this section is to provide financial assistance 
for the post-secondary education of students who are eligible 
students whether or not such students qualify for a loan or 
loans under other provisions of sections 136A.14 to 136A.17.  
Loans granted to students shall be used solely for educational 
purposes.  
    Subd. 3.  [COMPLIANCE WITH CIVIL RIGHTS ACT.] The student 
loan programs shall be administered in compliance with title VI 
of the Civil Rights Act of 1964.  
    Subd. 4.  [TERMS AND CONDITIONS OF LOANS.] The board may 
loan money upon such terms and conditions as the board may 
prescribe.  The principal amount of a loan to an undergraduate 
student for a single academic year may not exceed $4,000.  The 
aggregate principal amount of all loans made under this section 
to an undergraduate student may not exceed $16,000.  The 
principal amount of a loan to a graduate student for a single 
academic year shall not exceed $6,000.  The aggregate principal 
amount of all loans made under this section to a student as a 
graduate student shall not exceed $25,000.  
    Subd. 5.  [MAXIMUM LOANS FOR STUDENTS.] Loans made under 
this section or sections 136A.14 to 136A.17 to an individual 
eligible student for vocational study may be made for a maximum 
of three academic years or their equivalent and loans made to 
any other individual eligible student may be made for a maximum 
of eight academic years or their equivalent.  
    Subd. 6.  [RATE OF INTEREST.] The board shall determine the 
rate of interest to be charged on loans.  The rate of interest 
on student loans however computed, shall not be subject to any 
provision of state law limiting the rate of interest to be 
charged for a loan of money.  
    Subd. 7.  [REPAYMENT OF LOANS.] The board shall establish 
repayment procedures for loans made under this section, but in 
no event shall the period of permitted repayment exceed ten 
years from the eligible student's termination of his 
post-secondary academic or vocational program, or 15 years from 
the date of his first loan under this section, whichever is less.
    Subd. 8.  [BOARD POWERS.] The board may take, hold, and 
administer for any of its purposes, real or personal property 
and money, or any interest therein, and the income therefrom, 
either absolutely or in trust, for any purposes of the board. 
The board may acquire real or personal property or money for its 
purposes by purchase or lease and by gift, grant, bequest, 
devise, or loan, and may enter into contracts with profit or 
nonprofit corporations or institutions with the same or similar 
purposes as will benefit and improve the operation of the board 
and its loan programs.  
    Subd. 9.  [VARIABLE REPAYMENT SCHEDULES.] The board may 
establish variable loan repayment schedules consistent with the 
need and anticipated income streams of borrowers.  
    Subd. 10.  [PROHIBITION ON USE OF STATE MONEY.] No money 
originating from state sources in the state treasury shall be 
made available for student loans under this section and all 
student loans shall be made from money originating from nonstate 
sources.  
    Sec. 50.  [136A.1702] 
    The board shall obtain approval from the legislative 
advisory commission prior to taking the following actions with 
regard to student loan programs described in this act:  
    (1) implementing a loan program for parents and students 
eligible for auxiliary loans as defined in section 136A.15, 
subdivision 7;  
    (2) acquiring student loans from other lenders to 
facilitate student loan programs provided for in section 
136A.17; and 
    (3) providing for programs of supplemental and additional 
loans as defined in section 49.  
    Sec. 51.  Minnesota Statutes 1982, section 136A.18, is 
amended to read: 
    136A.18 [CONTRACTUAL ARRANGEMENTS WITH PRIVATE COLLEGES; 
PURPOSE.] 
    The legislature has found and hereby declares that private 
colleges in Minnesota have the potential capacity for educating 
larger significant numbers of Minnesota residents and that 
providing for the education of additional Minnesota residents in 
private colleges, rather than in state institutions of higher 
education, would result results in a savings of tax moneys.  The 
contractual arrangements with Minnesota private colleges 
authorized herein are designed to encourage and encouraged to 
facilitate the education of larger significant numbers of 
Minnesota residents in private colleges located in Minnesota.  
    Sec. 52.  Minnesota Statutes 1982, section 136A.26, is 
amended to read:  
    136A.26 [MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.] 
    Subdivision 1.  The Minnesota higher education facilities 
authority shall consist of six members appointed by the governor 
with the advice and consent of the senate, and the executive 
director of the Minnesota higher education coordinating board.  
The executive director of the coordinating board may designate a 
member of the director's staff to sit in the director's place as 
a member of the authority.  
    All members to be appointed by the governor shall be 
residents of the state.  At least one of the members shall be a 
person having a favorable reputation for skill, knowledge, and 
experience in the field of state and municipal finance; and at 
least one shall be a person having a favorable reputation for 
skill, knowledge, and experience in the building construction 
field; and at least one of the members shall be a trustee, 
director, officer, or employee of an institution of higher 
education. 
    Subd. 2.  The membership terms, compensation, removal of 
members, and filling of vacancies for authority members other 
than the executive director of the higher education coordinating 
board or the director's designee shall be as provided in section 
15.0575. 
    Sec. 53.  Minnesota Statutes 1982, section 136A.29, 
subdivision 2, is amended to read:  
    Subd. 2.  The authority shall annually elect one of its 
members as chairman, and one as vice-chairman, and one as 
secretary, as well as to elect additional officers deemed 
necessary by the authority.  The executive director of the 
higher education coordinating board shall be secretary of the 
authority.  
    Sec. 54.  Minnesota Statutes 1982, section 136A.29, 
subdivision 9, is amended to read:  
    Subd. 9.  The authority is authorized and empowered to 
issue revenue bonds whose aggregate principal amount at any time 
shall not exceed $100,000,000 $150,000,000 and to issue notes, 
bond anticipation notes, and revenue refunding bonds of the 
authority under the provisions of sections 136A.25 to 136A.42, 
to provide funds for acquiring, constructing, reconstructing, 
enlarging, remodeling, renovating, improving, furnishing, or 
equipping one or more projects or parts thereof. 
    Sec. 55.  Minnesota Statutes 1982, section 136A.42, is 
amended to read:  
    136A.42 [ANNUAL REPORT.] 
    The authority shall keep an accurate account of all of its 
activities and all of its receipts and expenditures and shall 
annually make a report thereof to the higher education 
coordinating board.  The authority's report shall be included in 
The higher education coordinating board's biennial report board 
shall review and comment upon the report and make such 
recommendations as it deems necessary to the governor and the 
legislature. 
    Sec. 56.  [INTENTION OF THE LEGISLATURE.] 
    It is the intention of the legislature to create a state 
board of vocational technical education to govern post-secondary 
and adult vocational education administered by an area 
vocational technical institute.  
    Further, it is the intention of the legislature that 
secondary vocational education be governed by the state board of 
education as an essential and integral part of the secondary 
instructional program.  
    Further, it is the intention of the legislature that adult 
vocational education not administered by an area vocational 
technical institute be governed by the state board of education. 
    Further, it is the intention of the legislature that the 
state board of education and the state board of vocational 
technical education conduct their affairs cooperatively to 
continue the coordination of secondary, post-secondary, and 
adult vocational education.  
    Further, it is the intention of the legislature, with 
respect to post-secondary and adult vocational education 
administered by an area vocational technical institute, that the 
present balance of powers, duties, and functions between school 
boards and the state be retained except as provided in this act. 
    Further, it is the intention of the legislature to allow 
for flexibility and the opportunity for participation by 
affected parties during the time preceding the assumption of 
governing responsibilities.  
    Finally, it is the intention of the legislature that the 
state board of vocational technical education commence its 
proceedings with due deliberation, demonstrating concern for 
existing successful programs, concern for present diverse 
programs, needs, and methods of delivery, and thoughtful 
consideration of the complexities of governing and coordinating 
the affected parties and programs.  
    Sec. 57.  [136C.01] [ESTABLISHMENT.] 
    A state board of vocational technical education is 
established to govern post-secondary vocational education.  It 
shall also govern adult vocational education administered by an 
area vocational technical institute.  
    Sec. 58.  [136C.02] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
the following terms have the meanings given them.  
    Subd. 2.  [AREA VOCATIONAL TECHNICAL INSTITUTE.] "AVTI" 
means an area vocational technical institute.  
    Subd. 3.  [POST-SECONDARY VOCATIONAL EDUCATION.] 
"Post-secondary vocational education" means post-secondary and 
adult vocational education administered by an AVTI.  
    Subd. 4.  [STATE BOARD.] "State board" means the state 
board of vocational technical education.  
    Subd. 5.  [STATE DIRECTOR.] "State director" means the 
state director of vocational technical education.  
    Subd. 6.  [DISTRICT.] "District" means a school district 
providing post-secondary vocational education or an intermediate 
district.  
    Subd. 8.  [INTERMEDIATE DISTRICT.] "Intermediate district" 
means a district with a cooperative program which has been 
established under Laws 1967, chapter 822, as amended; Laws 1969, 
chapter 775, as amended; and Laws 1969, chapter 1060, as 
amended, offering integrated services for secondary, 
post-secondary, and adult students in the areas of vocational 
education, special education, and other authorized services.  
    Subd. 8.  [SCHOOL BOARD.] "School board" means the school 
board of a district and, in the case of an intermediate 
district, the board of the intermediate district.  
    Sec. 59.  [136C.03] [STATE BOARD MEMBERSHIP.] 
    Subdivision 1.  [COMPOSITION AND SELECTION.] The state 
board shall consist of 11 members.  One shall be from each 
congressional district, two shall represent the state at large, 
and one shall be a student to represent the state at large.  The 
members shall be appointed by the governor with the advice and 
consent of the senate.  Ten members shall be selected for their 
interest in vocational technical education, and consideration 
shall be given to applicants based on their knowledge of 
agriculture, business, economic development, industry, labor, 
and service for the handicapped.  The student member shall be a 
full-time student enrolled in an area vocational technical 
institute or so enrolled within one year before appointment to 
the state board.  Except for the student member, no member while 
serving on the state board may be an employee of or receiving 
compensation from a public or private institution providing 
post-secondary vocational education.  
    Subd. 2.  [TERMS.] The membership terms, compensation, 
removal of members, and filling of vacancies on the state board 
shall be as provided in section 15.0575, except that the term of 
the student member shall be two years.  
    Subd. 3.  [ADMINISTRATION.] The state board shall elect a 
chair and other officers as it may desire.  It shall determine 
its meeting dates and places.  The commissioner of 
administration shall provide the state board with appropriate 
offices.  
    Sec. 60.  [FIRST STATE BOARD.] 
    Subdivision 1.  [APPOINTMENT AND TERMS.] By July 1, 1983, 
the state board of vocational technical education shall be 
appointed by the governor according to the provisions of section 
59, subdivision 1.  The state board shall assume full 
responsibility for governance on January 1, 1984.  The terms of 
the members of the first state board shall be as follows:  the 
terms of two members shall end on the first Monday in January, 
1988; the terms of three members shall end on the first Monday 
in January, 1987; the terms of three members shall end on the 
first Monday in January, 1986; and the terms of three members 
shall end on the first Monday in January, 1985.  
    Subd. 2.  [DEVELOPMENT OF PROCEDURES AND REPORT.] The state 
board shall develop procedures to transfer governance with the 
advice and consultation of the state board for vocational 
education, state board of education, appropriate state agencies, 
school boards, and other affected parties.  The state board of 
vocational technical education and the state board of education 
shall cooperatively determine:  
    (a) allocation of federal moneys;  
    (b) permanent designation of the sole state agency;  
    (c) provision of operational support services;  
    (d) assignment of operational support and adult vocational 
staff; and 
    (e) agreements involving the two boards.  
    The state board of vocational technical education and the 
state board of education shall report their findings and 
recommendations, including proposals for statutory changes, to 
the education committees of the legislature by December 1, 1983. 
    Subd. 3.  [TEMPORARY SOLE STATE AGENCY.] From January 1, 
1984, to June 30, 1984, the state board of education shall serve 
as the sole state agency for the purpose of receiving federal 
vocational money.  All federal money for post-secondary 
vocational education, as defined in section 58, shall be 
reallocated to the state board of vocational technical education.
    Subd. 4.  [FIRST STATE DIRECTOR.] Notwithstanding the 
provisions of section 61, subdivision 2, the governor, with the 
advice and consent of the senate, shall appoint the first state 
director.  
    Subd. 5.  [STAFF.] The state board may employ necessary 
staff to carry out its duties under this section.  On request of 
the state board, the department of education may temporarily 
assign any of its staff to assist the state board.  
    Sec. 61.  [136C.04] [POWERS AND DUTIES OF THE STATE BOARD.] 
    Subdivision 1.  [GENERAL.] The state board shall possess 
all powers necessary and incident to the management, 
jurisdiction, and governance of post-secondary vocational 
education.  These powers shall include, but are not limited to, 
those enumerated in this section.  
    Subd. 2.  [APPOINTMENT OF STATE DIRECTOR.] The state board 
shall appoint a state director of vocational technical education 
who shall serve in the unclassified service.  The state director 
shall be qualified by training and experience in the field of 
education, vocational education, or administration.  The state 
director shall possess powers and perform duties as delegated by 
the state board.  The state board shall set the salary of the 
state director.  The state director may be paid an allowance not 
to exceed $2,000 annually for miscellaneous expenses in 
connection with duties of the office.  The provisions of chapter 
16A shall not apply to these expenditures, but the state board 
shall prescribe the manner, amount, and purpose of the 
expenditures and report to the legislature on the expenditures 
by December 1 of each even-numbered year.  
    Subd. 3.  [STAFF.] The state board shall employ all 
subordinate staff and prescribe their duties consistent with 
chapter 43A.  
    Subd. 4.  [BUDGET REQUESTS.] The state board shall review 
and approve, disapprove, or modify the biennial budget requests 
for post-secondary vocational education operations and 
facilities submitted by the state director.  The state board 
shall submit the approved biennial budget requests to the 
governor.  
    Subd. 5.  [PLANNING.] The state board shall develop a 
long-range plan for post-secondary vocational education which 
shall include goals and objectives for instructional programs, 
facilities, and use of resources.  The plan shall be developed 
with the advice of appropriate state agencies, school boards, 
and other affected parties.  The state board shall review this 
plan biennially to evaluate its success in meeting these goals 
and objectives.  
    Subd. 6.  [ACCOUNTING AND REPORTING STANDARDS.] The state 
board shall maintain the uniform financial accounting and 
reporting system according to the provisions of sections 121.90 
to 121.917.  
    Subd. 7.  [ATTENDANCE AND COMPLETION.] The state board 
shall prescribe conditions of admission, tuition, fees, and 
other related matters.  The state board shall prescribe 
requirements for completion of programs and approve the awarding 
of appropriate certificates or associate degrees consistent with 
the provisions of section 121.218.  Chapter 14 shall not apply 
to the matters in this subdivision.  
    Subd. 8.  [CONTRACTS AND COOPERATIVE AGREEMENTS.] The state 
board may enter into contracts or cooperative agreements with 
the state board of education, higher education governing boards, 
educational institutions, or appropriate state agencies.  
    Subd. 9.  [LICENSURE.] The state board may promulgate 
rules, according to the provisions of chapter 14, for licensure 
of teaching, support, and supervisory personnel in 
post-secondary and adult vocational education.  
    Subd. 10.  [ALLOCATION.] The state board shall allocate 
state and federal money for post-secondary vocational education. 
Money received from federal sources other than as provided in 
chapter 124, and money received from other sources, not 
including the state, shall not be taken into account in 
determining appropriations or allocations.  
    Subd. 11.  [SHORT-TERM PROGRAMS.] The state board may 
approve a short-term program of two years or less, as an 
economic development initiative, which will not become a 
permanent part of the curriculum.  The short-term program shall 
have an approved program length of not more than two years and 
be operated for a specified duration.  
    Subd. 12.  [PROGRAMS.] The state board shall approve, 
disapprove, and coordinate programs.  After consultation with 
affected school boards, the state board may add, eliminate, 
transfer, or change programs as it determines advisable.  The 
state board shall consider the integrated services of secondary, 
post-secondary, and adult vocational education when it reviews 
intermediate district programs.  
    In the case of intermediate districts, the state board may 
apply the following criteria when adding, eliminating, 
transferring, or changing programs:  
    (a) the school board may be allowed to continue offering 
integrated secondary, post-secondary, and adult programs; and 
    (b) the school board may determine the use of facilities 
and equipment for secondary, post-secondary, adult, and special 
education programs and educational services for low incidence 
populations.  
    Subd. 13.  [CLOSING AUTHORITY.] The state board, after 
consultation with the affected school board, may require that 
school board to discontinue operation of its AVTI.  The state 
board shall first hold a public hearing on the issue in that 
geographic area.  Affected parties shall have an opportunity to 
present testimony.  At the request of the school board, the 
hearing shall be conducted by a hearing examiner of the office 
of administrative hearings.  The hearing examiner shall prepare 
a summary of testimony for the state board.  The state board 
shall publish notice in the State Register and in a newspaper of 
general circulation in the geographic area at least 30 days 
before the scheduled hearing.  
    Subd. 14.  [REORGANIZATION.] The state board, after 
consulting with the affected school boards, may merge or 
reorganize institutes or establish regional service areas for 
the purpose of increased efficiency, use of personnel, placement 
of programs, student access, and other needs as determined by 
the state board.  
    Subd. 15.  [PUBLIC HEARINGS.] The state board shall conduct 
public hearings when merging or reorganizing institutions and 
when allocating money.  Notice shall be given to affected 
persons in the manner determined by the state board.  All 
affected persons shall be given the opportunity to be heard, but 
the state board may impose reasonable restrictions on time.  The 
state board shall take final action at a meeting held at least 
seven days after the public hearing.  
    Subd. 16.  [TIMING OF ACTIONS.] The state board may 
consider the provisions of sections 125.12, subdivision 4, and 
125.17, subdivision 3, when it takes actions under subdivisions 
12, 13, and 14.  
    Subd. 17.  [COOPERATION FOR VOCATIONAL EDUCATION.] The 
state board of education shall cooperate with the state board of 
vocational technical education to promote establishment of 
policies and methods to improve the quality and efficiency of 
secondary, post-secondary, and adult vocational education in the 
state.  
    Sec. 62.  [136C.05] [POWERS AND DUTIES OF THE SCHOOL 
BOARD.] 
    Subdivision 1.  [PERSONNEL.] The school board shall employ 
instructors, support personnel, and supervisory personnel for 
post-secondary vocational education.  The school board may 
appoint the local director.  
    Subd. 2.  [FINANCE.] The school board shall prepare and 
submit budgets as required by the state board.  The school board 
shall approve all expenditures.  
    Subd. 3.  [INSTRUCTIONAL PROGRAM.] The school board shall 
operate and maintain post-secondary vocational education, 
subject to the supervision of the state board as provided in 
section 61.  The school board may determine area employment 
needs and make recommendations to the state board.  
    Subd. 4.  [FACILITIES AND EQUIPMENT.] The school board 
shall operate and maintain all facilities and equipment and 
shall employ personnel to do so.  
    Sec. 63.  [EFFECT OF TRANSFER.] 
    Subdivision 1.  [BOARD TRANSFER.] The state board for 
vocational education is abolished on December 31, 1983.  Except 
as explicitly provided otherwise in this act, the powers, 
duties, and functions of the state board for vocational 
education relating to post-secondary and adult vocational 
education are transferred to the state board of vocational 
technical education.  Rules of the state board for vocational 
education relating to adult vocational education, other than 
licensure rules, are not affected by this transfer with respect 
to adult vocational education not administered by area 
vocational technical institutes.  Rules of the state board for 
vocational education relating to post-secondary vocational 
education, as defined in section 58, other than licensure rules, 
shall have no force and effect on January 1, 1984, and 
thereafter.  Rules of the state board for vocational education 
for post-secondary and adult vocational education licensure are 
transferred to the state board of vocational technical education.
    Subd. 2.  [TRANSFER NOT TO AFFECT LEGAL ACTION.] The 
transfer of powers, duties, and functions shall not affect any 
action or proceeding, whether administrative, civil, or 
criminal, pending at the time of the transfer.  The action shall 
be continued in the name of the state board of vocational 
technical education which, upon application to the appropriate 
court, shall be substituted as a party to the action or 
proceeding.  
    Subd. 3.  [TRANSFER OF PROPERTY.] All books, maps, plans, 
papers, records, contracts, documents, and property of every 
description in the possession or control of the state board for 
vocational education or the state board of education, relating 
to post-secondary vocational education, as defined in section 
58, shall be transferred to the state board of vocational 
technical education.  The transfer shall be made in accordance 
with the directions of the state board of vocational technical 
education. 
    Subd. 4.  [TRANSFER OF FUNDS.] The unencumbered and 
unexpended balance of all funds appropriated to the state board 
for vocational education for post-secondary vocational 
education, as defined in section 58, shall be transferred and 
reappropriated to the state board of vocational technical 
education.  All federal money for post-secondary vocational 
education, as defined in section 58, shall be transferred to the 
state board of vocational technical education.  
    Subd. 5.  [CONSTRUCTION OF STATUTES, CONTRACTS, AND 
DOCUMENTS.] Whenever the state board for vocational education or 
its officer is referred to or designated in a statute, contract, 
or document, in the context of post-secondary vocational 
education, as defined in section 58, the reference or 
designation shall be construed to mean the state board of 
vocational technical education or its officer.  
    Subd. 6.  [TRANSFER OF POSITIONS.] Notwithstanding any law 
to the contrary, the positions of the managers of vocational 
relations, adult vocational extension, post-secondary vocational 
section, and operational services of the vocational technical 
education division of the department of education shall be 
declassified effective July 1, 1983.  Incumbent employees may 
exercise layoff rights within the department of education 
provided by the applicable plan pursuant to Minnesota Statutes, 
section 43A.18.  The layoff rights shall be exercised no later 
than December 31, 1983.  The provisions of Minnesota Statutes, 
sections 43A.08, subdivision 6 and 43A.081 shall not apply to 
the declassification of these positions.  
    All classified positions and incumbent employees in the 
adult vocational technical education, post-secondary vocational 
technical education, and operational services sections of the 
vocational technical education division of the department of 
education, including the confidential secretary to the assistant 
commissioner of vocational technical education, are transferred 
to the state board of vocational technical education on January 
1, 1984.  The position of assistant commissioner of vocational 
technical education and the positions declassified in this 
subdivision are transferred to the state board of vocational 
technical education on January 1, 1984.  The board of vocational 
technical education and the commissioner of education in 
consultation with the commissioner of employee relations and the 
commissioner of finance shall determine which additional 
positions shall be transferred.  The positions transferred to 
the board of vocational technical education are abolished in the 
department of education.  The approved staff complement for that 
agency is decreased accordingly.  
    Except as specifically provided, nothing in this 
subdivision shall be construed as abrogating or modifying any 
rights now enjoyed by affected employees under the managerial or 
commissioner's plans or the terms of an agreement between the 
exclusive representatives of public employees and the state or 
one of its appointing authorities.  
    Sec. 64.  [PLAN FOR COOPERATION.] 
    Subdivision 1.  [PLAN.] For increased financial efficiency 
and effectiveness in serving its community and in responding to 
changing enrollment needs, each AVTI and community college 
located in the same community or in nearby communities shall 
jointly develop a plan for cooperation.  The institutions 
included are those located in Thief River Falls, Hibbing, 
Virginia-Eveleth, Brainerd, Willmar, Rochester, Austin, White 
Bear Lake, Minneapolis, Brooklyn Park, Anoka-Coon Rapids, 
Rosemount-Inver Grove Heights, and Bloomington-Eden Prairie.  
    Subd. 2.  [CONTENTS OF PLAN.] Each plan shall propose a 
strategy for sharing of facilities, personnel, and resources. 
These strategies may include campus reorganizations, 
discontinuation of programs, changes in governance, and other 
such methods.  Each plan shall identify estimated savings and 
the manner in which the savings will be achieved.  
    Subd. 3.  [SUBMISSION OF PLANS.] Each plan shall be 
submitted to the chancellor for community colleges and the state 
director of vocational technical education by November 1, 1983. 
They shall review the plans and approve or disapprove them.  A 
disapproved plan shall be returned to the institutions where it 
shall be modified and resubmitted to the chancellor and state 
director.  The chancellor and state director shall submit all 
approved plans to their governing boards for review.  
    Subd. 4.  [REVIEW AND COMMENT.] By January 1, 1984, the 
governing boards shall submit all approved plans to the higher 
education coordinating board for review and comment.  The higher 
education coordinating board, the state board for community 
colleges, and the state board of vocational technical education 
shall report the plans to the legislature by February 1, 1984.  
    Sec. 65.  Minnesota Statutes 1982, section 158.05, is 
amended to read: 
    158.05 [ACTUAL COST TO BE CHARGED PATIENTS.] 
    The University of Minnesota hospitals shall treat patients 
admitted on certificate of the board of county commissioners of 
any county at rates based on actual cost, as determined by the 
board of regents of the University of Minnesota.  Seventy Sixty 
percent of the first $5,000 $11,000 in charges against a 
patient, and all of the charges against a patient in excess of 
$5,000 $11,000, will be paid by the state from appropriations 
made to the university for this purpose.  Before charges are 
billed to this program, the University of Minnesota hospitals 
and clinics shall seek payment from any third-party insurance 
that is liable for coverage of the patients' care.  This program 
shall be billed for the balance after the third-party payment 
according to the formula noted above.  Any resident of the 
state, upon a proper showing to the board of regents of the 
University of Minnesota that he is unable to pay ordinary 
physician's fees and hospital charges, may be received upon 
paying the same rate as charged for county patients.  It shall 
be the duty of the board of regents to investigate applications 
made for such treatment under this section; and, if satisfied of 
the truth of the allegations made and of the necessity for 
treatment, the board of regents shall admit such patients when 
there is room in the hospitals. 
    Students of the University of Minnesota and such other 
patients as the board of regents, to an extent that will not 
interfere with the primary purpose of the hospitals, as set 
forth in section 158.02, may direct, may be received in the 
hospitals when there is room and any fees received from such 
patients shall be used for the purposes of the hospitals. 
    Sec. 66.  [STUDY OF STUDENT PROGRESS.] 
    Subdivision 1.  [HIGHER EDUCATION COORDINATING BOARD.] The 
higher education coordinating board shall conduct a study of 
policies and standards relating to student progress toward 
completion of programs in Minnesota higher education systems and 
institutions.  This study shall result in a report and 
recommendations for improving policies on student progress.  The 
report shall be submitted to the legislature by December 1, 1983.
    Subd. 2.  [FACTORS.] The study shall consider such factors 
as trends toward longer academic residency of students, the 
relationship between the retention of students and sources of 
institutional revenue, the retention of students whose grades 
are below average, counseling and advising of students regarding 
completion of programs, changes in standards which measure 
performance and progress, and other factors relevant to student 
progress.  
    Sec. 67.  [ADOPT TEMPORARY RULES.] 
    The higher education coordinating board shall adopt 
temporary rules pursuant to Minnesota Statutes, sections 14.29 
to 14.36 to implement the provisions of section 49, for the 
1983-1984 academic year.  Notwithstanding Minnesota Statutes, 
section 14.35, the temporary rules may be effective until 
permanent rules are adopted or June 30, 1984, whichever is 
earlier.  
    Sec. 68.  [CONGRESSIONAL DISTRICTS FOR REGENTS.] 
    The provisions of Minnesota Statutes, section 137.024, 
requiring at least one member of the board of regents of the 
University of Minnesota to be a resident of each congressional 
district, shall not apply from the effective date of this act 
until the first Monday in February of 1985.  
    Sec. 69.  [UNIFORM FINANCIAL ACCOUNTING AND REPORTING 
STANDARDS ADVISORY COUNCIL.] 
    Notwithstanding the provisions of any other law to the 
contrary, the uniform financial accounting and reporting 
advisory council shall not terminate before June 30, 1985.  
    Sec. 70.  [ESV COMPUTER COUNCIL.] 
    Notwithstanding the provisions of any other law to the 
contrary, the elementary-secondary-vocational computer council 
shall not terminate before June 30, 1985.  
    Sec. 71.  [HIGHER EDUCATION ADVISORY COUNCIL.] 
    Notwithstanding the provisions of any other law to the 
contrary, the higher education advisory council shall not 
terminate before June 30, 1985.  
    Sec. 72.  [REPEALER.] 
    Subdivision 1.  Minnesota Statutes 1982, sections 120.82 
and 136.034 are repealed.  
    Subd. 2.  Minnesota Statutes 1982, sections 121.902, 
subdivision 1a; 121.936, subdivision 6; 136A.144; 136A.145; 
136A.146; 136A.161; 136A.19; 136A.20; 136A.21; 136A.22; 
136A.236; and 136A.237, are repealed.  
     Subd. 3.  Minnesota Statutes 1982, sections 121.11, 
subdivision 1, and 124.53, are repealed.  
    Sec. 73.  [EFFECTIVE DATE.] 
    Subdivision 1.  Except where the language of this act 
explicitly provides otherwise, the sections of this act are 
effective as provided in this section.  
    Subd. 2.  Sections 9, 10, 14 to 21, 35, 56, 60, 65, and 72, 
subdivision 1, are effective the day after final enactment.  
    Subd. 3.  Sections 1 to 8, 11, 12, 13, 22 to 34, 36 to 55, 
57, 58, 64, 66 to 71, and 72, subdivision 2, are effective July 
1, 1983.  
    Subd. 4.  Sections 59, 61, 62, 63, and 72, subdivision 3, 
are effective January 1, 1984. 
    Approved June 6, 1983