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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1984 

                        CHAPTER 619-S.F.No. 1736 
           An act relating to education; creating the Minnesota 
          educational computing corporation as a public 
          corporation; transferring assets of the Minnesota 
          educational computing consortium to the corporation; 
          amending Minnesota Statutes 1983 Supplement, section 
          3.732, subdivision 1; 10A.01, subdivision 18; 15A.081, 
          subdivision 1; 135A.07, subdivision 2; 352D.02, 
          subdivision 1; and proposing new law coded as 
          Minnesota Statutes, chapter 119; repealing Minnesota 
          Statutes 1982, section 120.83; Minnesota Statutes 1983 
          Supplement, sections 120.801; 120.802; 120.803; 
          120.804; 120.805; 120.806; and 120.81. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [119.01] [MINNESOTA EDUCATIONAL COMPUTING 
CORPORATION, PURPOSE.] 
    The purpose of the Minnesota educational computing 
corporation is to provide cost-effective computing and 
technology related products and services to the educational 
programs of educational institutions and agencies in Minnesota 
and elsewhere.  The legislature recognizes that computers are a 
major factor in the operation of educational institutions, both 
in terms of cost and in importance as an instructional tool. 
Furthermore, the legislature has historically 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 that 
instructional and administrative computing services be provided 
to meet the needs of Minnesota educational institutions.  The 
purpose of the public corporation known as the Minnesota 
educational computing corporation is to meet these needs.  
    The legislature intends to establish autonomy for the 
Minnesota educational computing corporation from state support, 
with the goal of limiting direct legislative funding of 
Minnesota educational computing corporation services.  
    Sec. 2.  [119.02] [DEFINITIONS.] 
    Subdivision 1.  The following terms, for the purposes of 
sections 1 to 9, have the meanings given to them in this section.
    Subd. 2.  "Consortium" means the Minnesota educational 
computing consortium originally created pursuant to section 
471.59.  
    Subd. 3.  "Minnesota educational institutions" means 
Minnesota school districts or a combination of school districts, 
area vocational-technical institutions, the department of 
education, community colleges, state universities, and the 
University of Minnesota.  
    Subd. 4.  "MECC" or "Corporation" means the public 
corporation known as the Minnesota educational computing 
corporation created by section 3.  
    Sec. 3.  [119.03] [MINNESOTA EDUCATIONAL COMPUTING 
CORPORATION, CREATION, AND TRANSFER.] 
    The Minnesota educational computing corporation is created 
to further the public purpose in section 1.  All of the assets 
and obligations of the consortium including name, copyrights, 
logos, fund balances, equipment, accounts receivable, and 
contractual rights and obligations are transferred to MECC.  
    Sec. 4.  [119.04] [BOARD OF DIRECTORS.] 
    Subdivision 1.  [APPOINTMENT.] The governor shall appoint a 
nine-member board of directors.  The terms of the directors 
shall be four years.  The terms shall be staggered so that the 
governor appoints three members in the first year and two each 
in the second, third, and fourth years of the governor's term. 
Board members shall be knowledgeable about the use of computing 
in elementary, secondary, and higher education or the business 
community.  Membership terms end on June 30 of the respective 
year.  If there is a vacancy on the board, the governor shall 
appoint a person to fill the vacancy for the remainder of the 
unexpired term.  
    Subd. 2.  [POWERS.] The board of directors has the 
authority to engage in all activities which carry out the public 
purpose expressed in section 1 and which are consistent with 
sections 1 to 9.  This authority includes but is not limited to 
acquiring, leasing, and disposing of real and personal property, 
establishing banking relationships, borrowing funds, 
establishing policies relating to personnel and compensation of 
personnel, and purchasing insurance.  The board of directors 
shall employ and set the compensation for the chief officer of 
MECC within the limits established for the commissioner of 
finance in section 15A.081, subdivision 1, who shall direct and 
carry on the work of MECC and assignments of the board.  The 
board may establish by-laws and elect an executive committee.  
    The board of directors does not have the power to form a 
subsidiary or to sell or offer for sale all or substantially all 
of the assets or any of the ownership of MECC.  
    Sec. 5.  [119.05] [DUTIES OF CORPORATION.] 
    Subdivision 1.  [PRODUCTS.] Notwithstanding any other law 
to the contrary, MECC shall provide its services and products at 
cost, including overhead, to Minnesota educational institutions. 
    Subd. 2.  [SERVICES TO OTHERS.] MECC may provide its 
products and services to other than Minnesota educational 
institutions.  To further the public purpose expressed in 
section 1, MECC shall establish prices based on market 
considerations.  These prices shall not be less than prices to 
Minnesota educational institutions.  MECC may purchase products 
and services developed by Minnesota educational institutions 
using resources of the institutions.  
    Subd. 3.  [REPORTS.] MECC shall annually report to the 
governor and the chair of the house and senate education 
committees, and the house appropriations and senate finance 
committee on the financial and programmatic condition of MECC 
activities.  MECC shall submit its biennial budget to the 
commissioner of finance by October 1 of each even-numbered 
year.  MECC shall annually report to the legislative commission 
on employee relations regarding its personnel structure, 
compensation plans, and all other issues related to its 
employees.  
    Sec. 6.  [119.06] [APPLICATION OF OTHER LAW.] 
    Subdivision 1.  [NONPUBLIC DATA.] MECC product programming 
source code and all material relating to product and service 
development and distribution is "trade secret information" for 
purposes of classification under section 13.37, subdivision 2.  
    Subd. 2.  [CLOSED MEETINGS.] The board of directors may 
hold a closed meeting to receive, discuss, or take action on any 
material or subject relating to "trade secret information."  
    Subd. 3.  [EMPLOYEE RETIREMENT AND INSURANCE.] The 
department of employee relations shall accept MECC employees in 
retirement plans and group life, health, and dental insurance 
plans provided MECC and its employees apply and fully pay the 
premiums and contributions of these plans.  For a period of 90 
days after the effective date of this section, employees of the 
consortium who are members of the Minnesota state retirement 
system or the teachers retirement association shall be entitled 
to transfer their accumulated employer and employee 
contributions, not including interest, from those funds to the 
state unclassified employees retirement program under chapter 
352D.  For purposes of coverage under section 352D.02, 
subdivision 1, MECC employees transferring under this section 
shall be considered to be unclassified employees of the state.  
    Subd. 4.  [UNEMPLOYMENT INSURANCE AND WORKERS' 
COMPENSATION.] As a result of MECC's activities as an employer, 
MECC shall reimburse the appropriate fund an amount equivalent 
to the amount of benefits or extended benefits for unemployment 
insurance claims pursuant to chapter 268, and shall procure 
workers' compensation insurance to cover its employees including 
those who have elected to be covered in accordance with section 
176.011, subdivision 9, paragraph (5).  
    Subd. 5.  [CONTRACTING LAW.] Section 471.345, establishing 
uniform contracting provisions for several political 
subdivisions of the state, does not apply to MECC.  
    Subd. 6.  [ETHICAL PRACTICES.] Members of the board of 
directors and the chief officer of MECC shall file statements of 
economic interest with the ethical practices board as if they 
were public officials.  
    Sec. 7.  [119.07] [MINNESOTA EDUCATIONAL INSTITUTIONS; 
POWERS.] 
    Minnesota educational institutions are not required to use 
any MECC products or services.  Any Minnesota educational 
institution may designate MECC as its purchasing agent for 
computer hardware, software, and development of software. 
Minnesota educational institutions are authorized, 
notwithstanding the requirements of sections 16.07, 123.37, or 
471.345, to contract directly with the corporation for the 
development of computer programs and documentation, and for 
instructional and management computing services for educational 
institutions.  
    Sec. 8.  [119.08] [PURCHASE OF ANNUITIES FOR EMPLOYEES.] 
    Subdivision 1.  At the request of an employee, MECC may 
negotiate and purchase an individual annuity contract from a 
company licensed to do business in the state of Minnesota for an 
employee for retirement or other purposes and may allocate a 
portion of the compensation otherwise payable to the employee as 
salary for the purpose of paying the entire premium due or to 
become due under such contract.  The allocation shall be made in 
a manner which will qualify the annuity premiums, or a portion 
thereof, for the benefit afforded under section 403(b) of the 
current federal Internal Revenue Code or any equivalent 
provision of subsequent federal income tax law.  The employee 
shall own such contract and his rights thereunder shall be 
nonforfeitable except for failure to pay premiums.  
    Sec. 9.  [119.09] [DISSOLUTION.] 
    In the event of the dissolution of MECC for any reason the 
state of Minnesota, upon action by the governor, after 
consultation with the legislative advisory commission, shall 
have the option to require return of all the assets of MECC to 
the state in exchange for the assumption of all outstanding 
obligations of MECC.  
    Sec. 10.  Minnesota Statutes 1983 Supplement, section 
3.732, subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] 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 Minnesota 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 either an 
independent contractor or members of the Minnesota national 
guard while engaged in training or duty under United States 
Code, title 10, or United States Code, title 32, section 316, 
502, 503, 504, or 505, as amended through December 31, 1983. 
    (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. 11.  Minnesota Statutes 1983 Supplement, 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 
rehabilitacion 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. 12.  Minnesota Statutes 1983 Supplement, section 
15A.081, subdivision 1, is amended to read: 
    Subdivision 1.  The governor shall set the salary rate 
within the ranges listed below for positions specified in this 
subdivision, upon approval of the legislative commission on 
employee relations and the legislature as provided by section 
43A.18, subdivisions 2 and 5: 
                                                Salary Range 
                                                  Effective 
                                                July 1, 1983 
Commissioner of education;                   $57,500-$70,000 
Commissioner of finance; 
Commissioner of transportation; 
Commissioner of public welfare; 
Chancellor, community college system; 
Chancellor, state university system; 
Director, vocational technical
  education
Executive director, state board of 
  investment; 
Commissioner of administration;              $50,000-$60,000 
Commissioner of agriculture; 
Commissioner of commerce;
Commissioner of corrections;  
Commissioner of economic security;  
Commissioner of employee relations;  
Commissioner of energy and economic 
  development;  
Commissioner of health;  
Commissioner of labor and industry;  
Commissioner of natural resources;  
Commissioner of revenue;
Commissioner of public safety;  
Chief hearing examiner; office of
  administrative hearings;
Director, pollution control agency;
Director, state planning agency;
Executive director, higher education  
  coordinating board;  
Executive director, housing finance 
  agency;  
Executive director, teacher's 
  retirement association;  
Executive director, state retirement  
  system;
Commissioner of human rights;                $40,000-$52,500
Director, department of public service; 
Commissioner of veterans' affairs; 
Executive director, educational 
  computing consortium; 
Executive director, environmental 
  quality board; 
Director, bureau of mediation services; 
Commissioner, public utilities commission; 
Member, transportation regulation board; 
Chairperson, waste management board; 
Director, zoological gardens.
    Sec. 13.  Minnesota Statutes 1983 Supplement, section 
135A.07, subdivision 2, is amended to read: 
    Subd. 2.  [EDUCATION SALARIES.] Notwithstanding Laws 1981, 
chapter 359, sections 4 and 5, any law enacted in the 1983 
legislative session, or any other law to the contrary, the 
salaries of the chancellor of the state university system, the 
chancellor of the community college system, and the director of 
vocational technical education, and the executive director of 
the Minnesota educational computing consortium shall be 
established pursuant to section 15A.081, subdivision 1.  
    Sec. 14.  Minnesota Statutes 1983 Supplement, section 
352D.02, subdivision 1, is amended to read:  
    Subdivision 1.  [COVERED EMPLOYEES.] The following 
employees, if they are in the unclassified service of the state 
and are eligible for coverage under the Minnesota state 
retirement system, shall participate in the unclassified program 
unless an employee gives notice to the executive director of the 
state retirement system within one year following the 
commencement of employment in the unclassified service that the 
employee desires coverage under the regular employee plan.  For 
the purposes of this chapter, an employee who does not file 
notice with the executive director shall be deemed to have 
exercised the option to participate in the unclassified plan. 
    (1) Any employee in the office of the governor, lieutenant 
governor, secretary of state, state auditor, state treasurer, 
attorney general or the state board of investment, 
    (2) The head of any department, division, or agency created 
by statute in the unclassified service, an acting department 
head subsequently appointed to the position, or any employee 
enumerated in sections 15A.081, subdivision 1 or 15A.083, 
subdivision 4, 
    (3) Any permanent, full-time unclassified employee of the 
legislature or any commission or agency of the legislature or a 
temporary legislative employee having shares in the supplemental 
retirement fund as a result of former employment covered by this 
chapter, whether or not eligible for coverage under the 
Minnesota state retirement system, 
      (4) Any person employed in a position established pursuant 
to section 43A.08, subdivision 1, clause (c), or subdivision 1a 
or in a position authorized under a statute creating or 
establishing a department or agency of the state, which is at 
the deputy or assistant head of department or agency or director 
level, 
      (5) The chairman, chief administrator, and not to exceed 
nine positions at the division director or administrative deputy 
level of the metropolitan waste control commission as designated 
by the commission, and the chairman, executive director, and not 
to exceed nine positions at the division director or 
administrative deputy level of the metropolitan council as 
designated by the council; provided that upon initial 
designation of all positions provided for in this clause, no 
further designations or redesignations shall be made without 
approval of the board of directors of the Minnesota state 
retirement system, 
    (6) The executive director, associate executive director, 
and not to exceed nine positions of the higher education 
coordinating board in the unclassified service, as designated by 
the higher education coordinating board; provided that upon 
initial designation of all positions provided for in this 
clause, no further designations or redesignations shall be made 
without approval of the board of directors of the Minnesota 
state retirement system, 
    (7) The clerk of the appellate courts appointed pursuant to 
Article VI, Section 2, of the Constitution of the state of 
Minnesota, 
    (8) The chief executive officers of correctional facilities 
operated by the department of corrections and of hospitals and 
nursing homes operated by the department of welfare, and 
    (9) Any employee whose principal employment is at the state 
ceremonial house, and 
    (10) Employees of the Minnesota educational computing 
corporation.  
    Sec. 15.  [TRANSITION.] 
    Subdivision 1.  [INITIAL BOARD OF DIRECTORS.] The members 
of the consortium management committee shall act as the board of 
directors until the initial board of directors is appointed. The 
initial members of the board of directors shall all be appointed 
in 1984, but their terms shall be of varied length so that the 
staggered terms required by section 4 will become effective. The 
governor shall designate what the term of each initial member 
shall be.  
    Subd. 2.  [FISCAL YEAR 1985 APPROPRIATION.] The 
appropriation of $280,000 for fiscal year 1985 for the MECC 
regional instructional computing coordinators included in Laws 
1983, chapter 314, article 8, section 27, subdivision 2, to the 
Minnesota educational computing consortium shall be transferred 
to the corporation for the service specified in Laws 1983, 
chapter 314, article 8, section 15.  
    Sec. 16.  [USE OF NAME.] 
    The secretary of state shall record M.E.C.C., MECC, 
Minnesota Educational Computing Consortium, Minnesota 
Educational Computing Corporation, and Software Minnesota as 
reserved for the exclusive use by the corporation.  
    Sec. 17.  [REPEALER.] 
    Minnesota Statutes 1982, section 120.83, is repealed; 
Minnesota Statutes 1983 Supplement, sections 120.801, 120.802, 
120.803, 120.804, 120.805, 120.806, and 120.81 are repealed.  
    Sec. 18.  [EFFECTIVE DATE.] 
    Sections 1 to 17 are effective the day following final 
enactment. 
    Approved May 2, 1984