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Minnesota Legislature

Office of the Revisor of Statutes

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

 

                         Laws of Minnesota 1985 

                         CHAPTER 11-S.F.No. 17 
           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 board of 
          vocational technical education, state board for 
          community colleges, state university board, University 
          of Minnesota, and the Mayo medical foundation, with 
          certain conditions; authorizing certain boards to 
          establish certain salaries; providing for staff 
          assistance, Indian scholarships and school district 
          grants, tuition determination, average cost of 
          instruction, authority to carry over appropriations, 
          computer sales, financial aid, credit transferability, 
          payroll deductions, surveys, studies, reports, 
          notices, planning, policy development, mission 
          statements, task forces, private proprietary schools, 
          state university parking, annual appropriations, aid 
          payments, review of vocational capital improvements, 
          veterans' vocational program exemptions, vocational 
          budgets and programs, endowed chairs, emergency rules, 
          and pilot programs; amending Minnesota Statutes 1984, 
          sections 15A.081, subdivision 1, and by adding a 
          subdivision; 121.02, by adding a subdivision; 124.48, 
          by adding a subdivision; 135A.01; 135A.03; 135A.04; 
          135A.05; 135A.06; 136.031; 136.24; 136.67, subdivision 
          5; 136A.09; 136A.095; 136A.101; 136A.121, subdivisions 
          1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12, 13, and 16; 
          136A.132, subdivisions 3, 4, 5, and 6; 136A.15, 
          subdivision 7; 136A.162; 136A.233, subdivision 2; 
          136C.04, subdivisions 4a, 15, and by adding a 
          subdivision; 136C.07, by adding a subdivision; 
          136C.08, subdivision 2; 136C.13, subdivision 3, and by 
          adding a subdivision; 136C.26, subdivisions 1, 4, and 
          5; 136C.28, subdivision 2; 136C.29, subdivision 5; 
          136C.33, subdivision 1; 136C.34; 136C.36; 137.022; 
          141.23; 141.25, subdivisions 8, 9, 10, and by adding a 
          subdivision; 141.26, subdivisions 2 and 5; 141.28, 
          subdivision 4; 141.32; proposing coding for new law in 
          Minnesota Statutes, chapters 124; 135A; 136; and 136A; 
          repealing Minnesota Statutes 1984, sections 135A.07; 
          136A.121, subdivisions 8 and 14; 136C.26, subdivisions 
          2 and 8; 136C.28, subdivisions 3, 4, 5, 6, and 7; 
          136C.33, subdivisions 3 and 4; 136C.37; and 136C.38. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [EDUCATION; APPROPRIATIONS.] 
    The sums shown in the columns marked "APPROPRIATIONS" are 
appropriated from the general fund, or any other fund named, to 
the agencies and for the purposes specified in this act, to be 
available for the fiscal year indicated for each purpose.  The 
figures "1986" and "1987," where used in this act, mean that the 
appropriation or appropriations listed under them are available 
for the year ending June 30, 1986, or June 30, 1987, 
respectively.  

                            SUMMARY BY FUND 
                           1986         1987         TOTAL   
General                $748,808,300 $786,978,200 $1,535,786,500
Trunk Highway                20,300       20,700         41,000
Permanent University      3,800,000                   3,800,000
TOTAL                  $752,628,600 $786,998,900 $1,539,627,500

                     SUMMARY BY AGENCY - ALL FUNDS
Department of
  Education            $ 22,632,500 $ 22,652,600 $   45,285,100
Higher Education
  Coordinating Board     63,392,000   72,470,700    135,862,700
State Board of 
  Vocational Technical 
  Education             140,049,400  144,997,900    285,047,300
State Board for 
  Community Colleges     61,166,800   60,831,300    121,998,100
State University
  Board                 118,392,200  122,458,300    240,850,500
Board of Regents of the 
  University of 
  Minnesota             345,943,700  362,621,700    708,565,400
Mayo Medical
  Foundation              1,052,000      966,400      2,018,400
                                          APPROPRIATIONS
                                        Available for the Year
                                           Ending June 30
                                          1986         1987
     Sec. 2.  DEPARTMENT OF EDUCATION 
     Subdivision 1.  Total 
Appropriation                          $22,632,500  $22,652,600
    Approved Complement 
    State - 1986 = 445, and 1987 = 435 
    Special Revenue = 9.5 
    Federal = 164.1 
    Bond Proceeds = 1 
 The amounts that may be spent from this 
appropriation for each program are 
specified in the following subdivisions.
 The commissioner of education with the 
approval of the commissioner of finance 
may transfer unencumbered balances 
among the programs during the 
biennium.  Transfers must be reported 
immediately to the senate finance and 
house appropriations committees.  
During the biennium, the commissioner 
of education may transfer money among 
the various object of expenditure 
categories and activities within each 
program, unless restricted by executive 
order. 
 The commissioner of education during 
the biennium may spend federal block 
grant money received under the 
Education Consolidation and Improvement 
Act of 1981, as amended, United States 
Code, title 20, chapter 51, as shown in 
the biennial budget.  Changes may be 
made to accommodate adjustments in 
salary or other costs.  The 
commissioner must report material 
changes to the senate finance committee 
and the house appropriations committee. 
     Subd. 2.  Instructional Services 
      1986          1987 
  $6,294,000    $6,387,600  
 $20,300 the first year and $20,700 the 
second year is from the trunk highway 
fund.  
 $1,545,000 the first year and 
$1,606,800 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. 
 $306,000 the first year and $312,100 
the second year is for Indian 
post-secondary preparation grants. 
 The General Instruction Activity 
complement is reduced by one position 
in Chemical Dependency. 
 The Academic Excellence Foundation 
complement is increased by one position.
 One professional state position shall 
be added to the Special Education 
Monitoring complement of Special 
Populations. 
 The department of education shall 
maintain the existing Minnesota Indian 
education scholarship office at Bemidji 
during the biennium ending June 30, 
1987, with no reduction in general fund 
appropriations. 
This appropriation includes $25,000 per 
year for the commissioner of education 
to contract with the Minnesota 
historical society to develop and 
publish instructional materials on 
Minnesota history and government for 
pupils in the fifth to seventh grades.  
The materials shall be accurate and 
balanced, and shall present the 
contributions of various cultures and 
both sexes.  The materials may be sold 
to school districts and nonpublic 
schools.  An advisory task force of 15 
members appointed by the commissioner 
of education, in cooperation with the 
director of the Minnesota historical 
society, shall advise the society about 
developing the materials.  The task 
force shall consist of school board 
members, historians, educators, and 
staff of the department of education.  
The task force is subject to Minnesota 
Statutes, section 15.059, subdivision 
6.  The department of education shall 
test and evaluate the materials with 
classroom teachers in a variety of 
school districts.  If the appropriation 
in either year is insufficient, the 
appropriation for the other year is 
available. 
     Subd. 3.  Faribault Residential 
Schools 
  $ 5,888,200   $ 5,736,600
 $103,200 the first year and $107,600 
the second year is for repairs, 
replacements, and betterments. 
 $51,000 the first year and $53,300 the 
second year is for repair and purchase 
of equipment. 
Any unexpended balance remaining for 
repairs, replacements, betterments, and 
repair and purchase of equipment in the 
first year does not cancel but is 
available for the second year of the 
biennium.  
     Subd. 4.  Support Services 
  $1,708,300    $1,666,000
 The complement for the Council on 
Quality Education is eliminated unless 
separate legislation is passed that 
would provide appropriations and 
require a portion or all of the 
complement to be retained to perform 
the duties required.  This shall not 
affect programmatic payment obligations 
previously approved.  The commissioner 
of education is authorized to request 
action according to Minnesota Statutes, 
section 3.30 for administrative needs. 
 The complement of the Private 
Vocational School Licensing section is 
reduced by one position in the second 
year. 
 During the biennium ending June 30, 
1987, private trade school fees must 
not be decreased but may be increased 
under Minnesota Statutes, sections 
14.14, 16A.128, and 214.06.  
     Subd. 5.  District Management 
Services 
  $6,209,600    $6,308,200
 $981,100 the first year and $990,900 
the second year is for education data 
systems. 
 Each year during the biennium, the 
commissioner of education shall submit 
to the elementary-secondary-vocational 
computer council a detailed budget and 
workplan for the education data systems 
section for review and comment.  A 
change in the workplan must be featured 
in the next year's submission.  
 $348,800 the first year and $357,800 
the second year is for the development 
and maintenance of software for the 
elementary-secondary-vocational 
information system. 
 $3,200,000 in the first year and 
$3,272,700 in the second year is for 
regional computing support for regional 
management information centers.  
 Any unexpended balance remaining in the 
first year for education data systems, 
development of the ESV-IS system, and 
regional computing support does not 
cancel but is available for the second 
year of the biennium. 
     Subd. 6.  Auxiliary and General
Services 
  $2,333,300    $2,352,600
 The commissioner of education shall 
maintain no more than seven total 
complement in the categories of 
commissioner, deputy commissioner, 
assistant commissioner, assistant to 
the commissioner, or executive 
assistant. 
 $109,900 the first year and $111,000 
the second year is for the 
elementary-secondary-vocational 
computer council. 
     Subd. 7.  Board of Teaching 
  $199,100      $201,600
     Sec. 3.  HIGHER EDUCATION
COORDINATING BOARD   
     Subdivision 1.  Total 
Appropriation                           63,392,000   72,470,700 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Agency Administration 
  $2,638,800    $2,502,800
 This appropriation includes $27,000 in 
fiscal year 1986 and $54,000 in 1987 
for the continuation of the optometry 
contract program.  No more than five 
new students shall be admitted to the 
program each year.  The HECB shall 
award the contracts to the institutions 
that provide the lowest cost to 
students for the lowest price per 
contract seat.  Any money remaining 
from this appropriation shall be 
applied to scholarships and grants for 
optometry students. 
 This appropriation includes $25,000 in 
1986 and $25,000 in 1987 for the 
purpose of scholarships and grants for 
eligible students of optometry.  
Eligible students are those who were 
enrolled in the 1984-1985 academic year 
in schools of optometry with which 
Minnesota has an agreement for each 
academic year in the 1985-1987 biennium 
for optometry seats.  Students shall be 
selected for application and shall be 
obligated to practice in Minnesota as 
provided in Minnesota Statutes, section 
136A.225. 
 The higher education coordinating board 
shall study the need for the 
continuation of financial assistance 
for optometry students based on the 
state's current and projected need for 
optometrists, and shall report its 
recommendations to the senate finance 
and house appropriations committees by 
December 1, 1986. 
 The higher education coordinating board 
shall study the policy of contracting 
for educational services in areas of 
unique need in the state.  It shall 
develop methods to identify these 
needs, examine strategies to address 
these needs including the alternative 
approaches of direct institutional aid 
or direct student aid, develop criteria 
to select institutions to meet these 
needs, and report its findings and 
recommendations to the chairs of the 
senate finance and house appropriations 
committees by July 1, 1986. 
 The higher education coordinating board 
shall review the method used to 
determine the need a student has for 
financial aid for post-secondary 
education.  The review shall include 
the effect of the present method on 
students and parents who have various 
types of assets and modest incomes, 
such as farmers, owners of small 
businesses, home owners without large 
mortgages, and others.  Alternate 
methods of calculating parental 
contributions that are more closely 
related to income shall be considered 
by the board.  A report of the review 
and recommendations shall be submitted 
to the chairs of the education, 
finance, and appropriations committees 
of the legislature by January 1, 1986. 
 This appropriation includes $75,000 
each year for the higher education 
coordinating board and the board of 
teaching to appoint a task force on 
teacher education programs.  If the 
appropriation for either year is 
insufficient, the appropriation for the 
other year is available.  The task 
force shall include representatives of 
the commissioner of education, board of 
teaching, higher education coordinating 
board, teachers, school boards, 
administrators, and teacher education 
students and faculty.  It shall study 
and recommend changes in teacher 
education programs to meet contemporary 
and anticipated teaching conditions, 
program outcomes, outcome measures for 
evaluation and approval of the programs 
to assure graduates are capable of 
being effective teachers, and other 
measures to meet educational needs.  
The report, with recommendations of 
each board, shall be submitted to the 
chairs of the education committees of 
the legislature by January 1, 1987. 
 $100,000 in 1986 and $100,000 in 1987 
is to coordinate system missions and 
planning, and to coordinate the 
development of policy in instructional 
technology. 
 $34,900 in 1986 and $35,000 in 1987 is 
to inform secondary students beginning 
in the eighth grade about 
post-secondary opportunities and 
expectations, preparations necessary 
for post-secondary education, and 
resources available for planning and 
financial assistance.  The higher 
education board shall submit a report 
to the legislature by January 1, 1987. 
 The average cost funding task force 
shall review the instructional 
component of the University of 
Minnesota hospitals and report its 
findings and recommendations to the 
legislature by October 1, 1986.  
     Subd. 3.  State Scholarships and 
Grants 
   $52,300,000     $59,800,000
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available to meet 
scholarship and grant obligations.  
 For state scholarships and grants for 
the 1985-1986 and 1986-1987 academic 
years, the value per acre of a family 
farm shall not exceed the average value 
per acre of farm land in the county in 
which the farm is located.  For a farm 
located in more than one county, the 
value to be used is the value of farm 
land in the county in which the largest 
portion of the farm is located.  The 
average value per acre shall be as 
established by the agriculture 
extension service of the University of 
Minnesota or the commissioner of 
revenue, whichever is lower, for the 
year preceding the year in which 
application for a scholarship or grant 
is made.  The higher education 
coordinating board shall notify by mail 
each dependent and independent 
applicant for aid for the 1985-1986 
school year whose permanent mailing 
address is not within a city of the 
first or second class, who reported 
owning business or farm assets or 
parental business or farm assets, and 
who could benefit from the valuation 
limitation.  The notice shall inform an 
applicant that limitations on the value 
of farm land have been established by 
law and that the applicant may reapply 
for aid or for additional aid.  
Materials to reapply shall be included 
with the notice. 
 This appropriation contains money for 
increasing living allowances for state 
scholarships and grants to $2,850 for 
1986 and $2,960 for 1987. 
 $100,000 the first year is for 
short-term living and transportation 
expenses of AVTI students. 
     Subd. 4.  Interstate Tuition
Reciprocity 
  $2,800,000    $4,000,000 
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 
  $4,428,600    $4,428,600
     Subd. 6.  Income Contingent 
Loans 
  $   20,000    $  600,000 
 This appropriation is for an income 
contingent loan repayment program to 
assist resident graduates of Minnesota 
schools in medical, dental, pharmacy, 
and veterinary medicine in repaying 
their student debt by providing a 
repayment plan based on their annual 
income.  The appropriation for fiscal 
year 1986 is for the development of the 
program.  The appropriation for fiscal 
year 1987 is for payments in that year 
to creditors that exceed the borrowers' 
income contingent payments to the 
coordinating board, to pay defaulted 
principal and interest payments not 
covered by default insurance on the 
original loans, and to administer the 
program. 
 The board shall develop a plan to issue 
bonds to fund creditor payments that 
exceed a borrower's income contingent 
payments and shall examine the 
feasibility of extending the program to 
other graduate students. The board 
shall report its recommendations to the 
chairs of the finance and 
appropriations committees of the 
legislature by January 15, 1987. 
     Subd. 7.  Medical Student Loans 
  $  95,000
     Subd. 8.  Minitex Library
Program 
  $  909,600    $  739,300
     Subd. 9.  Enterprise Development
Partnerships 
  $  200,000    $  400,000
The board shall coordinate the grant 
competition and the allocation of 
awards and shall determine the method 
to be used in selecting proposals for 
funding.  The board shall report to the 
legislature on the awards made by 
February 1, 1987.  
     Subd. 10.  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 BOARD OF VOCATIONAL 
TECHNICAL EDUCATION 
     Subdivision 1.  Total 
Appropriation                          140,049,400  144,997,900
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Instructional Expenditures
 It is estimated that the amount for 
instructional expenditures will be 
$182,381,500 for the first year and 
$184,296,100 for the second year. 
     Subd. 3.  Noninstructional Expenditures 
 It is estimated that the amount for 
noninstructional expenditures will be 
$7,227,600 for the first year and 
$6,764,100 for the second year. 
 This appropriation authorizes $212,500 
for the first year and $250,000 for the 
second year for supporting up to 25 
percent of tuition costs of firefighter 
training programs.  The state board 
shall establish a uniform tuition 
schedule for the programs. 
 $6,477,500 the first year and 
$6,015,400 the second year is for debt 
service payments to school districts 
for AVTI buildings financed with 
district bonds issued before January 1, 
1979. 
 $212,000 the first year and $90,600 the 
second year is for veteran farmer 
cooperative training programs. 
 $100,000 in 1987 is for the operation 
and management of the FIRE center.  The 
board of vocational technical education 
and the regents of the University of 
Minnesota are requested to report by 
January 1, 1986, to the house 
appropriations and senate finance 
committees on the statutory, property, 
fiscal, and other related changes 
necessary to transfer the FIRE center 
from the management of the University 
of Minnesota to the management of the 
AVTI board.  
 The appropriation for 1986 includes 
money for an advisory task force on 
hazardous substances.  The state 
director of vocational technical 
education shall appoint a nine member 
task force that includes 
representatives of:  fire chiefs, 
professional firefighters, volunteer 
firefighters, independent health 
professionals with training in 
toxicology, and business and industry, 
including small business.  Members of 
the task force shall be reimbursed for 
expenses as provided in Minnesota 
Statutes, section 15.059, subdivision 
6.  The task force shall report its 
findings and recommendations to the 
chairs of the house appropriations and 
senate finance committees by February 
1, 1986. 
 Independent school district No. 742, 
St. Cloud, is authorized to construct 
an addition to the area vocational 
technical institute to provide space 
for student services, 
telecommunications activities, and 
general instruction.  The total cost of 
the project must not be more than 
$450,000, to be paid entirely from 
local money.  In addition, the state 
board of vocational technical education 
may authorize additional capital 
improvements to the St. Cloud area 
vocational technical institute.  The 
total cost of the additional 
improvements must not be more than 
$1,150,000 to be paid entirely from 
local money.  The district may transfer 
money from the post-secondary 
vocational technical capital 
expenditure fund to the building 
construction fund as needed to provide 
the local money for these projects. 
 Independent school district No. 347, 
Willmar, is authorized to construct an 
addition to the area vocational 
technical institute for the electronics 
program.  The total cost of the project 
must not be more than $225,000, to be 
paid entirely from local money. 
 Notwithstanding Laws 1984, chapter 597, 
section 13, subdivision 1, the 
appropriation to special school 
district No. 1, Minneapolis, may be 
used to acquire and to better an 
existing facility or to construct a new 
facility for the aviation mechanics 
program.  Renovation or expansion of an 
existing facility shall not proceed 
until such time as the purchase is 
complete and the title has been 
transferred.  The state share of the 
cost of the project remains 
$1,700,000.  The total cost of the 
project is estimated to be $2,000,000 
and shall not exceed $2,500,000 whether 
paid from state, local, or federal 
money.  At the discretion of the state 
director, up to $85,000 of the 
appropriation may be used to acquire 
facilities for other aviation related 
programs in the vocational institutes 
if sufficient money remains from the 
Minneapolis project.  The total cost of 
other facility acquisition shall not 
exceed $100,000 whether paid from 
state, local, or federal money. 
The state board shall apply to the 
department of energy and economic 
development for grant money to provide 
the state's portion of necessary funds 
to establish at least two off-campus 
pilot alcohol fuel plant programs.  
State funds shall not provide more than 
33 percent of the cost of equipment 
necessary for alcohol production and 
by-product utilization.  The state 
board shall enter into agreements with 
alcohol fuel plant manufacturers and 
with farmers near area vocational 
technical institutes.  The agreements 
shall provide for:  (1) installation of 
an alcohol fuel plant, at no cost to 
the state for its operation, to be 
integrated into the operation of the 
farm, (2) instruction on the farm 
related to the alcohol fuel plant as 
determined by the state board and 
provided by an area vocational 
technical institute, (3) data, to be 
collected and made available for a 
period of five years, reporting the 
cost and benefit of all phases of the 
demonstration project, and (4) 
maintenance of the plant and 
disposition of the plant if it is no 
longer needed for instruction.  
     Subd. 4.  State Council on Vocational 
Technical Education 
 $37,500 in 1986 and $37,500 in 1987 
shall be allocated by the state board 
to the state council on vocational 
education.  These funds shall be used 
by the council to carry out its program 
and duties with particular emphasis on: 
service to local program advisory 
committees, AVTI program evaluation 
reports and recommendations, and a 
survey of entrepreneurial initiatives 
of AVTI graduates.  Any unexpended 
balance remaining in the first year 
does not cancel but is available for 
the second year of the biennium. 
    Sec. 5.  STATE BOARD FOR 
COMMUNITY COLLEGES 
     Subdivision 1.  Total 
Appropriation                           61,166,800   60,831,300 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Instructional Expenditures
 It is estimated that the amount for 
instructional expenditures will be 
$77,780,300 for the first year and 
$76,613,100 for the second year. 
     Subd. 3.  Noninstructional Expenditures
 It is estimated that the amount for 
noninstructional expenditures will be 
$10,230,800 for the first year and 
$10,677,300 for the second year. 
 $260,000 the first year and $285,000 
the second year is for the move and 
rental of space for Minneapolis 
Community College. 
    Subd. 4.  Cambridge Center 
 $160,000 in 1986 and $180,000 in 1987 
is for operating costs of the Cambridge 
Center, contingent upon the opening of 
the new facility. 
     Sec. 6.  STATE UNIVERSITY BOARD 
     Subdivision 1.  Total 
Appropriation                          118,392,200  122,458,300 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Science and Technology Resource
Pilot Project at Southwest State University
The state university board shall 
implement a pilot project for regional 
economic development not to exceed 
$600,300 the first year and $524,700 
the second year.  The board shall 
submit, by January 15 of each year of 
the biennium, a report to the governor 
and to the members of the senate 
finance and house appropriations 
committees.  The report shall contain 
an evaluation including the number of 
people served, businesses formed, jobs 
created, projects being developed, and 
any other criteria the board feels is 
essential or desirable. 
 Revenue generated from royalties, 
patents, licenses, or interests 
retained by the state university board 
is appropriated to the state university 
board and shall be allocated by the 
board to Southwest State University for 
the continued operation of the science 
and technology resource center. 
    Subd. 3.  Instructional Expenditures 
It is estimated that the amount for 
instructional expenditures will be 
$163,822,300 for the first year and 
$169,475,100 for the second year. 
 The state university board shall 
continue to ensure that classroom 
teaching assistants for whom English is 
a second language are proficient in 
speaking, reading, and writing 
English.  The board shall report the 
actions it is taking on this matter to 
the legislature by January 15, 1986. 
    Subd. 4.  Noninstructional Expenditures 
It is estimated that the amount for 
noninstructional expenditures will be 
$9,017,400 for the first year and 
$9,296,000 for the second year. 
 $500,000 in 1986 and $500,000 in 1987 
is for the library automation 
cooperative project with the community 
college system. 
    Subd. 5.  State University Construction 
 During the biennium, notwithstanding 
any law to the contrary, the state 
university board shall supervise and 
control the preparation of plans and 
specifications for the construction, 
alteration, enlargement and the repair 
and betterment of state university 
buildings and structures.  The state 
university board shall advertise for 
bids and award contracts in connection 
with the improvements, supervise and 
inspect the work, approve necessary 
changes in the plans and 
specifications, approve estimates for 
payment, and accept the improvements 
when completed according to the plans 
and specifications. 
     Sec. 7.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
    Subdivision 1.  Total 
Appropriation                          345,943,700  362,621,700 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
    Subd. 2.  Operations and 
Maintenance                            284,576,900  298,473,700 
 (a) Sources 
 These appropriations are made from: 
 (1) 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 $3,800,000 for 
the first year. 
 (2) the general fund.  It is estimated 
that the amount required from the 
general fund will be at least 
$280,776,900 for the first year and 
$298,473,700 for the second year.  
 On December 1, 1986, and December 1, 
1987, the president of the University 
of Minnesota shall furnish the senate 
finance and house appropriations 
committees and the commissioner of 
finance the following information:  
 the total amount of receipts during 
fiscal year 1986 from all sources in 
excess of $116,616,300 and during the 
fiscal year 1987 from all sources in 
excess of $118,619,400; 
 the sources of these receipts; and 
 the purposes for which any excess 
receipts were spent and accounts to 
which transferred.  
 In preparing the university's 
legislative budget request for the 
1987-1989 biennium, all projected 
income from student tuition shall be 
based on a charge per credit hour 
schedule.  
 (b) Instructional Expenditures 
 It is estimated that the amount for 
instructional expenditures will be 
$310,703,400 for the first year and 
$319,483,800 for the second year. 
 This appropriation includes money for 
implementation of the final phase of 
the Duluth engineering program. 
 $4,000,000 in 1986 and $4,000,000 in 
1987 is for the university's commitment 
to focus its efforts on academic 
excellence.  During the biennium, it is 
the intention of the legislature that 
the university embark on a course of 
academic excellence in cooperation with 
the other post-secondary education 
systems. 
 $960,000 the first year is the final 
payment for the deficit in state 
contributions for the faculty 
retirement plan. 
 This appropriation includes $3,072,700 
in the first year for the final payment 
of the fuel and utilities deficiency.  
The legislature intends that future 
costs shall be financed out of 
University of Minnesota appropriations. 
 The university is requested to continue 
to ensure that classroom teaching 
assistants for whom English is a second 
language are proficient in speaking, 
reading, and writing English.  The 
university is requested to report the 
actions it is taking on this matter to 
the legislature by January 15, 1986. 
 (c) Noninstructional Expenditures 
 It is estimated that the amount for 
noninstructional expenditures will be 
$90,489,800 for the first year and 
$97,609,300 for the second year. 
 $2,500,000 in 1987 is for the graduate 
fellowship program.  By January 15, 
1987, the University of Minnesota shall 
report on the distribution of graduate 
fellowships and their use in furthering 
the University of Minnesota's efforts 
to focus its mission and improve its 
programs, particularly in the liberal 
arts. 
     Subd. 3.  Special Appropriations   61,366,800   64,148,000 
(a)  Agricultural Extension Service 
  $11,656,300   $12,114,500
 This appropriation includes money for 
agriculture extension work, county 
agricultural agents, home demonstration 
and 4-H club work, soil conservation, 
and consultation with extension 
district farmers and business operators 
on the business and marketing aspects 
of family farm operations and rural 
retail establishment operations.  Any 
salary increases granted by the 
university to personnel paid from this 
appropriation must not result in a 
reduction of the county portion of the 
salary payments.  
During the biennium, the board of 
regents is directed to review the 
functions and responsibilities of 
county extension agents and report to 
the legislature on their future role 
and mission. 
(b)  Agricultural Research 
  $11,934,900   $12,798,300 
 This appropriation includes money for 
research on aquatic plants (including 
wild rice), soybeans, avian disease, 
swine disease, corn improvement, 
irrigation, growing and processing 
grapes, plant molecular biology, and 
animal health (including a study of 
pseudorabies). 
 $100,000 in 1986 is for the operation 
of the FIRE center.  The regents of the 
University of Minnesota and the board 
of vocational technical education are 
requested to report by January 1, 1986, 
on the statutory, property, fiscal, and 
other related changes necessary to 
transfer the FIRE center from the 
management of the university to the 
management of the vocational technical 
board.  
 During the biennium, the university 
shall maintain an advisory council 
system for each experiment station.  
The advisory councils must be broadly 
representative of range of size and 
income distributions for farms and 
agribusiness and must not 
disproportionately represent those from 
the upper half of the size and income 
distributions.  
(c)  Veterinary Diagnostic Laboratory 
  $ 1,222,800   $ 1,271,700 
(d)  Coleman Leukemia Research Center 
  $   226,300   $   235,300 
(e)  Indigent Patients (County Papers) 
  $ 1,700,000   $ 1,700,000 
(f)  Rural Physicians Associates Program 
  $   528,500   $   549,600 
(g)  Medical Research 
  $ 2,155,800   $ 2,242,200 
(h)  Special Hospitals, Service and 
Educational Offset 
  $13,326,900   $13,859,900 
 This appropriation includes $7,996,100 
the first year and $8,316,000 the 
second year that is counted as 
instructional cost. 
 During the biennium, fees for service 
furnished to counties and individuals 
under this program must be sought to 
augment the money appropriated; the 
fees are appropriated to the university 
hospitals, to be available until June 
30, 1987. 
(i)  China Center 
  $    77,200   $    80,300 
(j)  Fellowships for Minority and 
Disadvantaged Students 
  $    51,500   $    53,600 
(k)  General Research 
  $ 1,959,500   $ 2,037,900
 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.  
(l)  Intercollegiate Athletics 
  $2,824,000    $2,896,900 
 This appropriation includes money to 
improve the programs and resources 
available to women and to ensure that 
campuses are in compliance with Title 
IX of the Educational Amendment Act of 
1972 and Minnesota Statutes, section 
126.21. 
 Of this appropriation, no less than the 
following amounts shall be allocated to 
each campus: 
  Duluth     492,600  504,500 
  Morris      59,100   60,500 
  Crookston   40,000   41,100 
  Waseca      39,500   40,900 
(m)  Student Loans Matching Money 
  $95,600       $99,400  
(n)  Talented Youth Mathematics 
Program 
  $157,800      $247,800 
 Of this appropriation, $40,000 is to 
match grant funds for teacher education.
 This appropriation includes money to 
continue the outreach sites program to 
ensure an opportunity for the 
participation of youth outside the 
metropolitan area. 
(o)  Geological Survey 
  $895,300      $923,100 
(p)  Mineral Resources Research 
Center 
  $719,000      $738,700 
(q)  Natural Resources Research Institute
  $2,315,300    $2,408,000
 Up to $80,000 of this appropriation may 
be spent for wild rice marketing 
research.  
(r)  Plant Biomass Energy Research 
  $136,100      $141,500 
(s)  Sea Grant College Program
  $275,200      $305,200 
 The university is requested to study 
the relocation of the Sea Grant program 
to the Duluth campus and report to the 
house appropriations and senate finance 
committees by January 1, 1986. 
(t)  Underground Space Center 
  $206,000      $214,200 
(u)  Biotechnology Center
  $532,600      $599,900
(v)  Hormel Institute 
  $367,300      $374,000 
 Up to $200,000 per year of this 
appropriation shall cancel to the 
general fund by the amount of federal 
money granted by the national heart, 
lung, and blood institute.  State money 
shall be matched by local money equal 
to at least half the state money. 
(w)  Industrial Relations Education 
  $638,600      $664,100 
(x)  Institute for Human Genetics 
  $300,000      $485,000 
(y)  Lake Superior Basin Studies 
  $137,800      $143,300 
 It is the intention of the legislature 
that this shall be a final and 
nonrecurring appropriation.  
(z)  Microelectronics and 
Information Science Center 
  $617,500      $642,200 
(aa) Productivity Center
  $309,000      $321,400
(bb) Supercomputer Institute 
  $6,000,000    $6,000,000 
 This appropriation includes money for 
the leasing of two supercomputer 
architectures. 
 The appropriations in section 7 for 
operations and maintenance funding for 
the agricultural experimental stations 
shall be merged with the appropriate 
special appropriations in fiscal years 
1986 and 1987. 
     Sec. 8.  MAYO MEDICAL FOUNDATION 
     Subdivision 1.  Total 
Appropriation                            1,052,000    966,400 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Medical School 
  $883,700    $783,000
 The state of Minnesota shall pay a 
capitation of $8,580 in fiscal year 
1986 and $9,000 in fiscal year 1987 for 
each student who is a resident of 
Minnesota.  
 Capitation money must 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, and a maximum of 40 
students in each class for students who 
entered Mayo Medical School before the 
1984-1985 academic year. 
 The legislature intends that during the 
biennium the Mayo foundation use the 
capitation money to increase the number 
of doctors practicing in rural areas in 
need of doctors as identified by the 
higher education coordinating board.  
     Subd. 3.  Family Practice and 
Graduate Residency Program  
  $168,300      $183,400
 The state of Minnesota shall pay a 
capitation of $14,025 in fiscal year 
1986 and $14,730 in fiscal year 1987 
for a maximum of 12 students each year. 
    Sec. 9.  Minnesota Statutes 1984, 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 human services; 
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;  
Chairperson, waste management board 
Chief administrative law judge; 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; 
Director, bureau of mediation services; 
Commissioner, public utilities commission; 
Member, transportation regulation board; 
Director, zoological gardens. 
    Sec. 10.  Minnesota Statutes 1984, section 15A.081, is 
amended by adding a subdivision to read: 
    Subd. 7b.  The state university board, the state board for 
community colleges, the state board of vocational technical 
education, and the higher education coordinating board shall set 
the salary rates for, respectively, the chancellor of the state 
universities, the chancellor of the community colleges, the 
state director of vocational technical education, and the 
executive director of the higher education coordinating board.  
At least 30 days before the respective board adopts a salary 
increase according to this subdivision, the board shall submit 
the proposed salary increase to the legislative commission on 
employee relations for its review.  Salary rates for the 
positions specified in this subdivision may not exceed 95 
percent of the salary set for the governor under section 
15A.081, subdivision 6. 
    Sec. 11.  Minnesota Statutes 1984, section 121.02, is 
amended by adding a subdivision to read: 
    Subd. 4.  [BOARD STAFF.] The state board may appoint a 
staff assistant who shall serve in the unclassified service. 
    Sec. 12.  Minnesota Statutes 1984, section 124.48, is 
amended by adding a subdivision to read:  
    Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
Indian scholarship committee is established.  Members shall be 
appointed by the state board with the assistance of the Indian 
affairs council as provided in section 3.922, subdivision 6.  
Members shall be reimbursed for expenses as provided in section 
15.059, subdivision 6.  The state board shall determine the 
membership terms and duration of the committee.  The committee 
shall provide advice to the state board in awarding scholarships 
to eligible American Indian students and in administering the 
state board's duties regarding awarding of American Indian 
post-secondary preparation grants to school districts. 
    Sec. 13.  [124.481] [INDIAN POST-SECONDARY PREPARATION 
GRANTS.] 
    The state board of education, with the advice of the 
Minnesota Indian scholarship committee, may make grants to 
school districts to support post-secondary preparation for 
secondary pupils who are of one-fourth or more Indian ancestry 
and who, in the opinion of the superintendent, have the 
capabilities to benefit from higher education.  Distribution of 
the grants must be in accordance with a plan prepared by the 
state board, with the advice of the Minnesota Indian scholarship 
committee, that describes the objectives and methods of 
implementing the grant program, including the manner in which 
grants will be distributed in proportion to the geographical 
distribution of the Indian population of the state. 
    Sec. 14.  Minnesota Statutes 1984, section 135A.01, is 
amended to read:  
    135A.01 [FUNDING POLICY.] 
    It is the policy of the legislature that direct state 
appropriations, exclusive of tuition, for the instructional 
services at public post-secondary institutions reflect a portion 
of the estimated cost of providing the instructional services.  
    Sec. 15.  Minnesota Statutes 1984, section 135A.03, is 
amended to read:  
    135A.03 [APPROPRIATIONS FOR INSTRUCTIONAL SERVICES.] 
    Subdivision 1.  [DETERMINATION OF APPROPRIATION.] The 
direct appropriation to each board for instructional services 
shall equal 67 percent of the estimated total cost of 
instruction minus the estimated tuition revenue.  For the 
1985-1987 biennium the estimated tuition revenue should be 
approximately 33 percent of instructional cost for the 
University of Minnesota, the state university system, and the 
community college system, and 25 percent and, for the area 
vocational-technical vocational technical institutes, 75 percent 
of the estimated total cost of instruction. 
    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 for the 
purpose of calculating appropriations for the second year of the 
biennium may be estimated on the basis of the latest enrollment 
data available.  Student enrollment shall include students 
enrolled in courses that award credit or otherwise satisfy any 
of the requirements of an academic or vocational program. 
    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 facilities, administration, and support.  
The average cost of instruction shall include only those costs 
attributable to academic or vocational programs.  
     (b) Every biennium each board shall submit the average cost 
of instruction for each instructional category as necessary to 
determine appropriations as part of their biennial budget 
request. 
     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.
    Subd. 6.  [DETERMINATION OF TUITION.] Notwithstanding 
anything in this chapter to the contrary, the board of regents 
of the University of Minnesota, state university board, state 
board for community colleges, and the state board of vocational 
technical education shall not be required to establish tuition 
at any specific percentage of instructional cost. 
    Sec. 16.  Minnesota Statutes 1984, section 135A.04, is 
amended to read: 
    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.  Tuition may 
be set at any percentage of instructional cost established by 
the respective boards. 
    Sec. 17.  Minnesota Statutes 1984, section 135A.05, is 
amended to read: 
    135A.05 [TASK FORCE.] 
    The commissioner of finance executive director of the 
Minnesota higher education coordinating board shall establish 
administer 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 the education subcommittee 
of the senate finance committee, the office of the commissioner 
of finance, 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 executive director or his a designee and staffed by 
the department of finance higher education coordinating board.  
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 odd-numbered year.  
    Sec. 18.  Minnesota Statutes 1984, section 135A.06, is 
amended to read: 
    135A.06 [SYSTEM PLANS:  UNIVERSITY OF MINNESOTA; STATE 
UNIVERSITY BOARD; STATE BOARD FOR COMMUNITY COLLEGES; STATE 
BOARD FOR VOCATIONAL EDUCATION AND MISSIONS.] 
    Subdivision 1.  [SUBMISSION OF PLANS.] 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.  It is the further intent that the system missions be 
differentiated from one another to best serve the needs of the 
citizens of Minnesota.  In order to accomplish this goal these 
goals, the University of Minnesota board of regents, the state 
university board, the state board for community colleges, and 
the state board for of vocational technical 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.  The report shall also include 
plans for and progress toward achieving mission differentiation 
while maintaining the state's overall post-secondary objectives. 
    Subd. 2.  [MISSION.] Each system shall review its mission 
as it relates to instruction, research, and public service.  The 
systems in cooperation with the higher education coordinating 
board shall jointly review their missions and develop strategies 
to achieve clearer mission differentiation and an overall 
intersystem plan that ensures achieving the state's overall 
post-secondary objectives. 
    Subd. 3.  [SYSTEM PLANS.] (a) Each system shall review 
its develop a program plan for instruction, research, and public 
service.  Program plans shall include Each system shall consult 
with the higher education coordinating board and with the other 
systems throughout the planning process.  The higher education 
coordinating board shall coordinate intersystem efforts in the 
development of the program plans to achieve intersystem 
cooperation and differentiation. 
    Each planning report shall consider at least the following 
elements: 
    (a) 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 A review its plan of plans 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, the relationship between fixed costs and 
projected enrollment changes, and other methods including 
consolidation of institutions, services, and programs with 
institutions serving that serve the same geographic area which 
are operated by under 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) (c) 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) (d) Estimated financial costs and savings of 
alternative plans for adjusting facilities, staff, and programs 
to declining enrollments and fiscal resources;.  
    (c) (e) Opportunities for providing services cooperatively 
with other public and private institutions in the same 
geographic area.  
    (f) Differentiating and coordinating missions to reduce or 
eliminate duplication of services and offerings.  
    Subd. 4.  [CAPITAL REQUESTS.] A capital budget request 
submitted by a system must specifically relate a proposed 
capital project to the plans required under this section. 
    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 December 1 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 and on the 
progress the systems and the board are making toward an 
integrated intersystem planning effort. 
    Sec. 19.  [135A.08] [CREDIT TRANSFER.] 
    Subdivision 1.  [COURSE EQUIVALENCY.] The regents of the 
University of Minnesota, state university board, state board for 
community colleges, and state board of vocational technical 
education, in conjunction with the higher education coordinating 
board, shall develop and maintain course equivalency guides for 
use between institutions that have a high frequency of transfer. 
Subject to the determination of the higher education 
coordinating board made in consultation with the state board of 
vocational technical education, course equivalency guides shall 
not be required for vocational technical programs that have not 
been divided into identifiable courses.  The governing boards of 
private institutions that grant associate and baccalaureate 
degrees and that have a high frequency of transfer students are 
requested to participate in developing these guides. 
    Subd. 2.  [COMMON NUMBERING.] The regents of the University 
of Minnesota, state university board, state board for community 
colleges, and state board of vocational technical education, in 
conjunction with the higher education coordinating board, shall 
develop and maintain a common numbering convention to 
distinguish remedial, lower division, upper division, and 
graduate level coursework.  The governing boards of private 
institutions that grant associate and baccalaureate degrees are 
requested to cooperate in the development of this numbering 
convention. 
    Subd. 3.  [GENERAL EDUCATION REQUIREMENTS.] The state board 
for community colleges, in conjunction with the regents of the 
University of Minnesota, state university board, boards of 
private institutions that grant baccalaureate degrees, and the 
higher education coordinating board, shall develop a system-wide 
standard of distributed general education requirements for the 
associate of arts degree.  The boards shall ensure that the 
associate of arts degree fulfills the entire general education 
requirement for the baccalaureate degree if the intent of the 
degree program is that the general education component be 
completed in the first two years of study.  
    Sec. 20.  Minnesota Statutes 1984, section 136.031, is 
amended to read: 
    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 any unexpended balance up to a maximum of two percent of its 
biennial appropriation into the following biennium.  These 
moneys shall The amounts carried over must not be taken into 
account in determining state appropriations and must not be 
deducted from a later appropriation. 
    Sec. 21.  Minnesota Statutes 1984, section 136.24, is 
amended to read:  
    136.24 [TECHNICAL EQUIPMENT.] 
    Subdivision 1.  [PROPRIETARY PURCHASES.] Technical 
educational equipment may be procured for the state universities 
on request of the state university board either by brand 
designation or in accordance with standards and specifications 
the board may promulgate, notwithstanding the provisions of 
chapter 16 to the contrary. 
    Subd. 2.  [COMPUTER MARKETING AND SUPPORT.] The state 
university board may sell computers and related products to its 
staff and students to advance their instructional and research 
abilities.  The board shall contract with a private vendor for 
service, maintenance, and support for computers and related 
products sold by the board. 
    Sec. 22.  [136.311] [STATE UNIVERSITY PARKING RULES.] 
    Notwithstanding section 169.966, the state university board 
may authorize a state university to adopt and enforce rules 
about parking on property owned or leased by the university.  
The rules may enable a university to assess and collect a fine 
and a towing fee for a violation of a rule.  Money collected 
under this section by a state university is annually 
appropriated to the university for parking lot maintenance, 
improvement, and rule enforcement.  A state university, with the 
approval of the state university board, shall establish 
procedures to resolve a dispute arising from enforcement of a 
rule.  Chapter 14 does not apply to this section.  
    Sec. 23.  [136.58] [STATE UNIVERSITY NONPROFIT FOUNDATION 
PAYROLL DEDUCTIONS.] 
    Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
finance, upon the written request of an employee of a state 
university or the state university board, may deduct from an 
employee's salary or wages the amount requested for payment to a 
nonprofit university foundation meeting the requirements in 
subdivision 2.  The commissioner shall issue a warrant for the 
deducted amount to the nonprofit foundation.  
    Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
foundation that desires to receive contributions through payroll 
deductions shall apply to the state university board for 
approval to participate in the payroll deduction plan.  The 
board may approve the application for participation if the 
foundation:  
    (1) is tax exempt under section 501(c)3 of the Internal 
Revenue Code of 1954, as amended;  
    (2) qualifies for tax deductible contributions under 
section 170 of the Internal Revenue Code of 1954, as amended;  
    (3) secures funding solely for distribution to that state 
university; and 
    (4) has been incorporated according to chapter 317 for at 
least one calendar year prior to the date it applies to the 
state university board for approval. 
    Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
deductions authorized in subdivision 1 must not interfere with, 
require a modification of, nor be conducted during the period of 
a payroll deduction fund drive for employees authorized by 
section 309.501. 
    Sec. 24.  Minnesota Statutes 1984, section 136.67, 
subdivision 5, is amended 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 any 
unexpended balance up to a maximum of two percent of its 
biennial appropriation into the following biennium.  These 
moneys shall The amounts carried over must not be taken into 
account in determining state appropriations and must not be 
deducted from a later appropriation.  
    Sec. 25.  [136.622] [COMPUTER SALES AND MAINTENANCE.] 
    The state board for community colleges may sell computers 
and related products to its staff and students to advance their 
instructional and research abilities.  The board shall contract 
with a private vendor for service, maintenance, and support for 
computers and related products sold by the board. 
    Sec. 26.  [136A.043] [INFORMATION TECHNOLOGY.] 
    The higher education coordinating board shall initiate 
activities to coordinate state policy development regarding the 
use of information technology in post-secondary education 
instruction and administration.  These activities shall include 
at least the following:  a survey, conducted in collaboration 
with the post-secondary education systems, of existing 
information technology use and needs of institutions and 
regions; initiation of collaborative activities to share 
information and resources; and provision of opportunities for 
post-secondary education policymakers to review issues and needs 
for policy development. 
    Sec. 27.  Minnesota Statutes 1984, section 136A.09, is 
amended to read:  
    136A.09 [STUDENT SCHOLARSHIPS, PURPOSE.] 
    The legislature has found finds and hereby declares that 
the identification of the talented young men and women of the 
state and the encouragement of their maximum educational 
development is in the best interest of the state.  The state 
scholarship program provided for herein is designed to encourage 
such able and worthy students to continue their education in the 
eligible institutions of their own choosing and to provide 
financial assistance for those who would not otherwise be not 
able to do so.  
    Sec. 28.  Minnesota Statutes 1984, section 136A.095, is 
amended to read:  
    136A.095 [GRANTS-IN-AID; PURPOSE.] 
    The legislature has found finds and hereby declares that 
the identification of young men and women of the state who are 
economically disadvantaged and the encouragement of their 
educational development in eligible institutions of their 
choosing are in the best interests of the state and of the 
students.  
    Sec. 29.  Minnesota Statutes 1984, section 136A.101, is 
amended to read:  
    136A.101 [DEFINITIONS.] 
    Subdivision 1.  For purposes of sections 136A.09 to 
136A.131, the terms defined in this section have the meanings 
ascribed to them:. 
    Subd. 2.  "Board" means the Minnesota higher education 
coordinating board. 
    Subd. 3.  "Director" means the executive director of the 
Minnesota higher education coordinating board. 
    Subd. 4.  "Eligible institution" means an a post-secondary 
educational institution of higher education located in this 
state or in a state with which the board has entered into a 
higher education reciprocity agreement on state student aid 
programs which provides an organized course of instruction of at 
least two years duration in the sciences or liberal arts, 
including performing and visual arts, or a combination of these, 
at the collegiate level which that either (1) is operated by 
this state, or (2) is operated publicly or privately and, as 
determined by the board, maintains academic standards 
substantially equivalent to those of comparable institutions 
operated in this state or an area vocational-technical school or 
other vocational school approved by the board. 
    Subd. 5.  "Financial need" means the demonstrated need of 
the applicant for financial assistance to meet the actual costs 
of attending the eligible institution of his choice as 
determined from financial information on the applicant and, if 
required, on the applicant's parents, by a college scholarship 
service or equivalent service under criteria established by the 
board. 
    Subd. 6.  "Qualified applicant" means those students a 
person who ranked in the upper quarter of the class at the end 
of the junior year in high school according to academic 
standards prescribed by the board for purposes of the state 
scholarship program and.  It also means all any eligible 
students person regardless of academic rank for purposes of the 
state grant-in-aid program. 
    Subd. 7.  "Student" means a student person who meets the 
requirements for full time student status as defined by the 
eligible institution he attends is enrolled at least half time, 
as defined by the board, in a program or course of study that 
applies to a degree, diploma, or certificate. 
    Subd. 8.  "Resident student" includes a student who 
graduated from a Minnesota high school and has not since 
established residence in another state. 
    Sec. 30.  Minnesota Statutes 1984, section 136A.121, 
subdivision 1, is amended to read:  
    Subdivision 1.  [ELIGIBILITY FOR SCHOLARSHIPS.] An 
applicant shall be is eligible to be considered for a 
scholarship under the provisions of sections 136A.09 to 136A.131 
if the board finds that the 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. 
    Sec. 31.  Minnesota Statutes 1984, section 136A.121, 
subdivision 2, is amended to read: 
    Subd. 2.  [ELIGIBILITY FOR GRANTS-IN-AID.] An applicant 
shall be is eligible to 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 the 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; 
    (3) has met such the financial need criteria pertaining to 
financial need as the board shall make by regulation established 
in rules. 
    Sec. 32.  Minnesota Statutes 1984, section 136A.121, 
subdivision 3, is amended to read: 
    Subd. 3.  [ALLOCATION.] 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. 
    Sec. 33.  Minnesota Statutes 1984, section 136A.121, 
subdivision 4, is amended to read: 
    Subd. 4.  [SCHOLARSHIP STIPENDS.] An eligible scholarship 
applicant shall be considered for a financial stipend if the 
applicant demonstrates financial need.  An eligible scholarship 
applicant who does not demonstrate financial need under criteria 
prescribed by the board shall be awarded an honorary 
scholarship.  The amount of a financial stipend shall must 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 is $100.  
    Sec. 34.  Minnesota Statutes 1984, section 136A.121, 
subdivision 5, is amended to read: 
    Subd. 5.  [GRANTS-IN-AID STIPENDS.] A financial stipend 
based on financial need shall must accompany grants-in-aid.  The 
amount of a financial stipend shall must 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 is $100.  
    Sec. 35.  Minnesota Statutes 1984, section 136A.121, 
subdivision 6, is amended to read: 
    Subd. 6.  [COST OF ATTENDANCE.] The cost of attendance 
shall consist consists 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.  
    Sec. 36.  Minnesota Statutes 1984, section 136A.121, 
subdivision 7, is amended to read: 
    Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
appropriated is determined by the board to be insufficient to 
make full awards to applicants pursuant to subdivision under 
subdivisions 4 and 5, before any award for that year has been 
disbursed, 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.  
    Sec. 37.  Minnesota Statutes 1984, section 136A.121, 
subdivision 9, is amended to read: 
    Subd. 9.  [INITIAL AWARDS.] Only first year students shall 
be eligible to apply for and receive initial scholarship 
awards.  Any An undergraduate student who has not previously 
received a scholarship or grant-in-aid and who meets the board's 
requirements shall be is eligible to apply for and receive an 
initial scholarship or grant-in-aid in any year of undergraduate 
study.  
    Sec. 38.  Minnesota Statutes 1984, section 136A.121, 
subdivision 10, is amended to read: 
    Subd. 10.  [RENEWALS.] Each scholarship or grant-in-aid 
shall be awarded for one academic year but shall be, is 
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.  
    Sec. 39.  Minnesota Statutes 1984, section 136A.121, 
subdivision 11, is amended to read: 
    Subd. 11.  [RENEWAL CONDITIONS.] Each scholarship or 
grant-in-aid shall be is renewable, contingent on continued 
residency in Minnesota, satisfactory academic standing and, 
recommendation of the college or vocational school eligible 
institution currently attended, and, in the case of financial 
assistance, evidence of continued need. 
    Sec. 40.  Minnesota Statutes 1984, section 136A.121, 
subdivision 12, is amended to read: 
    Subd. 12.  [ANNUAL APPLICATION.] To continue to receive a 
scholarship or grant-in-aid, the student must shall apply for 
renewal of his scholarship or grant-in-aid each year. 
    Sec. 41.  Minnesota Statutes 1984, section 136A.121, 
subdivision 13, is amended to read: 
    Subd. 13.  [DEADLINE.] The board must shall accept 
applications for state scholarships and grants-in-aid until 
February 15 and may establish a deadline for the acceptance of 
applications which that is later than February 15. 
    Sec. 42.  Minnesota Statutes 1984, section 136A.121, 
subdivision 16, is amended to read: 
    Subd. 16.  [HOW APPLIED; ORDER.] 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 the awards shall revert to the board 
scholarship or grant-in-aid account. 
    Sec. 43.  Minnesota Statutes 1984, section 136A.132, 
subdivision 3, is amended to read: 
    Subd. 3.  Any student attending an eligible institution 
less than full-time and pursuing a program or course of study 
leading to a degree, diploma or certificate shall be eligible 
for a part-time student grant-in-aid An applicant is eligible to 
be considered for a part-time student grant if the applicant:  
    (a) is a resident of the state of Minnesota; 
    (b) is an undergraduate student who has not earned a 
baccalaureate degree, except that a post-baccalaureate student 
enrolled in an undergraduate or graduate program who had been 
enrolled in the same program and had received a part-time grant 
during the 1984-1985 school year shall be eligible to be 
considered for a part-time student grant in the 1985-1986 school 
year; 
    (c) is pursuing a program or course of study that applies 
to a degree, diploma, or certificate; and 
    (d) is attending an eligible institution (1) in the 
1985-1986 academic year less than full time as defined by the 
board, or (2) after July 1, 1986, either less than half time as 
defined by the board, or as a new or returning student enrolled 
at least half time but less than full time as defined by the 
board. 
    Sec. 44.  Minnesota Statutes 1984, section 136A.132, 
subdivision 4, is amended to read: 
    Subd. 4.  A recipient of a part-time grant-in-aid shall be 
selected by the post-secondary education institution of 
attendance in accordance with guidelines, criteria, policies and 
procedures rules established by the higher education 
coordinating board. 
    Sec. 45.  Minnesota Statutes 1984, section 136A.132, 
subdivision 5, is amended to read:  
    Subd. 5.  The amount of any part-time student grant-in-aid 
award shall be based on the need of the applicant determined by 
the institution in accordance with policies and rules 
established by the higher education coordinating board but the 
amount of an award shall not exceed the cost of tuition and 
required fees paid or to be paid by the student or the cost of 
tuition and fees for a comparable program at the university of 
Minnesota, whichever is the lesser. 
    Sec. 46.  Minnesota Statutes 1984, section 136A.132, 
subdivision 6, is amended to read:  
    Subd. 6.  Part-time student grants-in-aid shall be awarded 
for a single term as defined by the institution in accordance 
with guidelines and policies of the higher education 
coordinating board. Awards shall not be renewable but the 
recipient of an award may apply for additional awards for 
subsequent terms as follows: 
    (a) In the 1985-1986 academic year a recipient of an award 
who is enrolled less than full time as defined by the board may 
apply for additional awards. 
    (b) After July 1, 1986, a recipient of an award who is 
enrolled less than half time as defined by the board may apply 
for additional awards. 
    A new or returning student enrolled at least half time but 
less than full time, as defined by the board, and pursuing a 
program or course of study that applies to a degree, diploma, or 
certificate shall be eligible for an award for only one term. 
    Sec. 47.  Minnesota Statutes 1984, section 136A.15, 
subdivision 7, is amended to read: 
    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.  A Minnesota resident 
includes a student who graduated from a Minnesota high school 
and has not since established residence in another state.  
Eligible student, except for purposes of section 136A.1701, 
includes parents of an eligible student as the term "parent" is 
defined in the Higher Education Act of 1965, as amended, and the 
applicable regulations promulgated thereunder.  Except for the 
purposes of section 136A.1701, 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 
applicable regulations promulgated thereunder.  An eligible 
student, for section 136A.1701, means a student who gives 
informed consent authorizing the disclosure of data specified in 
section 136A.162, paragraph (b), to a consumer credit reporting 
agency. 
    Sec. 48.  Minnesota Statutes 1984, section 136A.162, is 
amended to read:  
    136A.162 [CLASSIFICATION OF DATA.] 
    All data on applicants for financial assistance collected 
and used by the higher education coordinating board for the 
purposes of student financial aid programs administered by that 
board shall be classified as private data on individuals 
pursuant to under section 13.02, subdivision 12.  Exceptions to 
this classification are that:  
    (a) the names and addresses of program recipients or 
participants are public data; and 
    (b) the following data collected in the Minnesota 
supplemental loan program under section 136A.1701 may be 
disclosed to a consumer credit reporting agency only if the 
borrower gives informed consent, according to section 13.05, 
subdivision 4, at the time of application for a loan: 
    (1) the lender-assigned borrower identification number; 
    (2) the name and address of borrower; 
    (3) the name and address of cosigner; 
    (4) the date the account is opened; 
    (5) the outstanding account balance; 
    (6) the dollar amount past due; 
    (7) the number of payments past due; 
    (8) the number of late payments in previous 12 months; 
    (9) the type of account; 
    (10) the responsibility for the account; and 
    (11) the status or remarks code. 
    Sec. 49.  Minnesota Statutes 1984, section 136A.233, 
subdivision 2, is amended to read: 
    Subd. 2.  For purposes of sections 136A.231 to 136A.235, 
the following words have the meanings ascribed to them: 
    (a) "Eligible student" means a Minnesota resident enrolled 
or intending to enroll full time in a Minnesota post-secondary 
institution.  A Minnesota resident includes a student who 
graduated from a Minnesota high school and has not since 
established residence in another state.  
    (b) "Financial need" means the need for financial 
assistance in order to attend a post-secondary institution as 
determined by a post-secondary institution according to 
guidelines established by the higher education coordinating 
board. 
    (c) "Eligible employer" means any eligible post-secondary 
institution and any nonprofit, nonsectarian agency or state 
institution located in the state of Minnesota, including state 
hospitals, and also includes a handicapped person or a person 
over 65 who employs a student to provide personal services in or 
about the residence of the handicapped person or the person over 
65. 
    (d) "Eligible post-secondary institution" means any 
post-secondary institution eligible for participation in the 
Minnesota state scholarship and grant program as specified in 
section 136A.101, subdivision 4. 
    Sec. 50.  Minnesota Statutes 1984, section 136C.04, 
subdivision 4a, is amended to read: 
    Subd. 4a.  [CARRY OVER AUTHORITY.] The state 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 state board may carry over an any unexpended 
balance up to a maximum of two percent of its biennial 
appropriation into the following biennium.  These moneys shall 
The amounts carried over must not be taken into account in 
determining state appropriations and must not be deducted from a 
later appropriation.  
    Sec. 51.  Minnesota Statutes 1984, section 136C.04, 
subdivision 15, is amended to read: 
    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.  
    Sec. 52.  Minnesota Statutes 1984, section 136C.04, is 
amended by adding a subdivision to read: 
    Subd. 18.  [COMPUTER SALES AND MAINTENANCE.] The state 
board of vocational technical education may sell computers and 
related products to its staff and students to advance their 
instructional and research abilities.  The board shall contract 
with a private vendor for service, maintenance, and support for 
computers and related products sold by the board. 
    Sec. 53.  Minnesota Statutes 1984, section 136C.07, is 
amended by adding a subdivision to read: 
    Subd. 5a.  [REVIEW OF CAPITAL IMPROVEMENTS.] A school 
board, as defined in section 136C.02, subdivision 8, must not 
award final contracts for capital improvements until the state 
director has reviewed the final plans, specifications, and cost 
estimates and made recommendations on them. 
    Sec. 54.  Minnesota Statutes 1984, section 136C.08, 
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 repair and betterment fund of the 
school district or joint school district. 
    Sec. 55.  Minnesota Statutes 1984, section 136C.13, 
subdivision 3, is amended to read: 
    Subd. 3.  [VETERAN'S EXEMPTION.] A veteran enrolled in a 
tuition free AVTI program before July 1, 1985, who is a 
Minnesota resident whose entire education has not included 
completion of at least one tuition free post-secondary 
vocational technical school program is exempt from tuition until 
the veteran has completed the lesser of (a) 440 post-secondary 
vocational technical school days, or the equivalent as 
determined by the state board, or (b) one post-secondary 
vocational technical school program. 
    "Veteran" for the purpose of this subdivision means a 
person who served in the active military service in any branch 
of the armed forces of the United States after July 1, 1961 and 
before July 1, 1978, was a Minnesota resident at the time of 
induction into the armed forces and for the six months 
immediately preceding induction, and has been separated or 
discharged from active military service under conditions other 
than dishonorable.  
    Sec. 56.  Minnesota Statutes 1984, section 136C.13, is 
amended by adding a subdivision to read: 
    Subd. 4.  [VIETNAM VETERAN'S EXEMPTION.] A Vietnam veteran 
who enrolls in a tuition free AVTI program before July 1, 1990, 
and who is a Minnesota resident whose entire education has not 
included completion of at least one tuition free post-secondary 
vocational technical school program is exempt from tuition until 
the veteran has completed the lesser of (a) 440 post-secondary 
vocational technical school days, or the equivalent as 
determined by the state board, or (b) one post-secondary 
vocational technical school program. 
    "Vietnam veteran" for the purpose of this subdivision means 
a person who served in the active military service in any branch 
of the armed forces of the United States after July 1, 1961, and 
before July 1, 1978, and who became eligible for the Vietnam 
Expeditionary Medal or the Vietnam Service Medal as a result of 
the service, was a Minnesota resident at the time of induction 
into the armed forces and for the six months immediately 
preceding induction, and has been separated or discharged from 
active military service under conditions other than dishonorable.
    Sec. 57.  Minnesota Statutes 1984, section 136C.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [APPLICABILITY.] For the 1983-1984 and 
1984-1985 school years, For the purposes of sections 136C.26 to 
136C.37, and 136C.41, the following terms have the meanings 
given them.  
    Sec. 58.  Minnesota Statutes 1984, section 136C.26, 
subdivision 4, is amended to read: 
    Subd. 4.  [COMPONENT ACTIVITIES.] "Component activities" 
means regular instruction, special needs instruction, part-time 
instruction, research, instructional administration, 
media/library, pupil student personnel services, health 
services, director's office, instructional services, fixed 
costs, work study/financial study, financial aid, physical 
plant, and repair and betterment. 
    Sec. 59.  Minnesota Statutes 1984, section 136C.26, 
subdivision 5, is amended to read:  
    Subd. 5.  [INSTRUCTIONAL AID.] "Instructional aid" means 
state money, exclusive of repair and betterment aid and debt 
service aid, allocated by the state board of vocational 
technical education to districts for post-secondary and 
part-time vocational technical education instructional costs.  
    Sec. 60.  Minnesota Statutes 1984, section 136C.28, 
subdivision 2, is amended to read: 
    Subd. 2.  [RECOMMENDED ALLOCATIONS.] After reviewing each 
budget, the state director of vocational technical education 
shall recommend aid allocations to the state board for the 
following fiscal year in each expenditure category for each 
program and component activity.  
    The state director shall recommend instructional aid 
allocations sufficient to maintain or improve special needs 
instruction.  
    Notwithstanding any laws or rules to the contrary, the 
recommendations for allocations of instructional aid, to the 
extent possible, shall be based on average systemwide ADM to 
teacher ratios of 12 to 1 for health programs and 17 to 1 for 
nonhealth programs. 
    The annual student placement rate of each program shall be 
taken into consideration by the department in recommending 
instructional aid allocations. 
    Each AVTI's tuition revenues revenue in the fiscal year for 
which aid is allocated shall be taken into consideration by the 
department state director in recommending instructional aid 
allocations. 
    Each AVTI's unappropriated capital balance of the equipment 
account in the capital expenditure fund, as of June 30 of the 
fiscal year during which allocations are made, shall be taken 
into consideration by the state director in recommending 
instructional aid allocations for the purposes listed in section 
136C.29, subdivision 3, clauses (a), (b), (c), and (d).  In 
recommending instructional aid allocations for all other 
purposes, the department state director shall take into 
consideration each AVTI's net positive unappropriated general 
fund balance, as of June 30 of the fiscal year during which 
allocations are made, which exceeds ten percent of the AVTI's 
operating expenditures, as defined by UFARS, for the fiscal year 
during which allocations are made. 
    Each AVTI's actual expenditures which exceed the amounts 
originally budgeted for expenditure during the fourth quarter of 
the fiscal year in which aids are allocated shall be taken into 
consideration by the state director in recommending 
instructional aid allocations.  
    Allocations of repair and betterment aid shall be 
recommended for each project proposed by an AVTI.  In 
recommending repair and betterment aid allocations, the state 
director shall take into consideration each AVTI's net positive 
unappropriated capital balance of the repair and betterment 
account of the capital expenditure fund, as of June 30 of the 
fiscal year during which allocations are made.  The 
recommendations must follow procedures for aid allocations set 
by the state board. 
    Sec. 61.  Minnesota Statutes 1984, section 136C.29, 
subdivision 5, is amended to read: 
    Subd. 5.  [REPAIR AND BETTERMENT AID.] The final allocation 
of repair and betterment aid by the state board does not 
constitute approval of a project for the purposes of section 
136C.07, subdivision 4a 5.  The aid shall be placed in the 
repair and betterment fund and used solely for the 
purposes enumerated in section 136C.26, subdivision 8 of 
reconstructing, improving, remodeling, and repairing existing 
AVTI buildings and grounds.  The school board shall authorize 
and approve actual expenditures of the aid allocated, except 
that expenditures which exceed $5,000 shall receive prior 
approval by the state director.  The process in section 136C.28 
shall not constitute approval for this purpose.  Use of the aid 
shall be governed by the provisions of section 136C.07, 
subdivision 4a 5. 
    Sec. 62.  Minnesota Statutes 1984, section 136C.33, 
subdivision 1, is amended to read:  
    Subdivision 1.  [MEMBERSHIP.] Membership for pupils 
students in AVTI's shall mean the number of pupils students on 
the current roll of the school, counted from the date of entry 
until the date of withdrawal, according to policies adopted by 
the state board.  
    Sec. 63.  Minnesota Statutes 1984, section 136C.34, is 
amended to read: 
    136C.34 [ABSENCE FOR CHEMICAL ABUSE TREATMENT.] 
    If a pupil student is absent from an AVTI to participate in 
a chemical abuse treatment program licensed by the state, the 
pupil student may request the AVTI to remain on the roll in the 
educational program in which the pupil student is enrolled, 
according to policies adopted by the state board.  The AVTI 
shall grant a request it receives from the pupil student.  
    Sec. 64.  Minnesota Statutes 1984, section 136C.36, is 
amended to read: 
    136C.36 [PAYMENT OF AVTI INSTRUCTIONAL AID.] 
    Beginning for the 1983-1984 school year, 85 Eighty-five 
percent of the estimated post-secondary vocational instructional 
aid entitlement for each district shall be paid during the 
fiscal year of entitlement in 24 11 uniform monthly payments on 
the first business day prior to the 15th of each month and on 
the first business day prior to the last day of each month from 
July to May.  
    The amount of entitlement, adjusted for actual data on 
tuition and fund balances, minus the payments made during the 
fiscal year of entitlement, shall be the final adjustment paid 
to each district in two payments on September 15 and September 
30 on the first business day of July in the fiscal year 
following entitlement. 
    Sec. 65.  Minnesota Statutes 1984, section 137.022, is 
amended to read. 
    137.022 [PERMANENT UNIVERSITY FUND, INVESTMENT.] 
    Subdivision 1.  [INVESTMENT.] The investment management of 
the permanent university fund shall be under the jurisdiction of 
the board of regents of the University of Minnesota, subject to 
any limitations imposed by the Constitution of the state of 
Minnesota, Article XI, Section 9.  All securities and cash held 
in the state treasury credited to the permanent university fund 
heretofore that are unappropriated or unencumbered are hereby 
transferred and appropriated to the board of regents of the 
University of Minnesota solely for the purpose of investment by 
them, with the restriction that all such investment transactions 
be handled through the supervision of investment counselors, 
bank trust departments, or insurance companies which are 
organized, licensed, or have registered offices within the state 
of Minnesota or have agreed in writing to conduct such 
securities transactions and investment counseling under 
Minnesota law and the rules and regulations established by the 
department of commerce.  Such These investments shall be 
restricted to those authorized as eligible for use in the 
Minnesota post-retirement investment fund, section 11A.18, with 
the exception that corporate debt securities may be used to the 
extent of 80 percent of the portfolio. 
    Subd. 2.  [INCOME.] The income from the permanent 
university fund shall be subject to appropriations is 
appropriated annually to the board of regents by the legislature 
from time to time.  This appropriation of income must not be 
used to reduce other appropriations made to the board of regents.
The determination of such this income shall be based on the 
procedures detailed in sections 11A.16, subdivision 5, or 
11A.12, subdivision 2. 
    Subd. 3.  [ENDOWED CHAIRS.] The income from the permanent 
university fund must be used to help endow professorial chairs 
in academic disciplines.  This income must not provide more than 
half the sum of the endowments for all chairs endowed, with 
nonstate sources providing the remainder.  The income may 
provide more than half the endowment of an individual chair.  
Any portion of the annual appropriation that is not used for 
this purpose lapses and must be added to the principal of the 
permanent university fund.  
    Sec. 66.  Minnesota Statutes 1984, section 141.23, is 
amended to read: 
    141.23 [RULES AND REGULATIONS.] 
    The state board of education may adopt rules and 
regulations according to chapter 14 to carry out the provisions 
of sections 141.21 to 141.36 pursuant to chapter 14 this chapter.
    Sec. 67.  Minnesota Statutes 1984, section 141.25, 
subdivision 8, is amended to read: 
    Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
initial license under sections 141.21 to 141.36 shall be 
accompanied by $200 $440 as a nonrefundable application fee. 
    (b) All licenses shall expire on December 31 of each year.  
Each renewal application shall be accompanied by a nonrefundable 
renewal fee of $150 $330.  
    (c) Application for renewal of license shall be made on or 
before October 1 of each calendar year.  Each renewal form shall 
be supplied by the commissioner.  It shall not be necessary for 
an applicant to supply all information required in the initial 
application at the time of renewal unless requested by the 
commissioner.  
    Sec. 68.  Minnesota Statutes 1984, section 141.25, 
subdivision 9, is amended to read: 
    Subd. 9.  [CATALOG OR BROCHURE.] (A) No Before a license 
shall be is issued to a school, other than one which offers 
exclusively a correspondence course of instruction, until such 
the school has furnished shall furnish to the commissioner a 
catalog or brochure containing the following: 
    (a) (1) Identifying data, such as volume number and date of 
publication; 
    (b) (2) Name and address of the school and its governing 
body and officials; 
    (c) (3) A calendar of the school showing legal holidays, 
beginning and ending dates of each course quarter, term, or 
semester, and other important dates; 
    (d) (4) School policy and regulations on enrollment with 
respect to enrollment including dates and specific entrance 
requirements for each course; 
    (e) (5) School policy and regulations relative to about 
leave, absences, class cuts, make-up work, tardiness, and 
interruptions for unsatisfactory attendance; 
    (f) (6) School policy and regulations relative to about 
standards of progress required of for the student by the school 
which policy must define including the grading system of the 
school, the minimum grades considered satisfactory, conditions 
for interruption for unsatisfactory grades or progress and, a 
description of the any probationary period, if any, allowed by 
the school, and conditions of re-entrance for those dismissed 
for unsatisfactory progress; 
    (g) (7) School policy and regulations relative to about 
student conduct and conditions for dismissal for unsatisfactory 
conduct; 
    (h) (8) Detailed schedule of fees, charges for tuition, 
books, supplies, tools, student activities, laboratory fees, 
service charges, rentals, deposits, and all other charges; 
    (i) (9) Policy and regulations of the school relative to 
the refund of the unused portion of, including an explanation of 
section 141.271, about refunding tuition, fees, and other 
charges in the event if the student does not enter the 
course or, withdraws, or is discontinued therefrom, which policy 
shall include an explanation of all provisions of section 
141.271; 
    (j) (10) A description of the available facilities and 
equipment; 
    (k) (11) A course outline for each course offered showing 
course objectives, subjects or units in the course, type of work 
or skill to be learned, and approximate time or clock hours to 
be spent on each subject or unit; and 
    (l) (12) Policy and regulations of the school relative to 
about granting credit for previous education and training. 
    (B) Subd. 9a.  [CORRESPONDENCE CATALOG.] No Before a 
license shall be is issued to a school which offers exclusively 
offering a correspondence course of instruction, until such the 
school has furnished shall furnish to the commissioner a catalog 
or brochure containing the following: 
    (a) Identifying data such as volume number and date of 
publication; 
    (b) Name and address of the school, its governing body and 
officials; 
    (c) School policy and regulations on enrollment with 
respect to enrollment dates and specific entrance requirements 
for each course; 
    (d) (1) School policy and regulations relative to about 
standards of progress required of for the student by the school 
which policy must define including the grading system of the 
school, the minimum grades considered satisfactory, conditions 
for interruption for unsatisfactory grades or progress and, a 
description of the any probationary period, if any, allowed by 
the school, and conditions of re-enrollment for those students 
terminated for unsatisfactory progress; 
    (e) Detailed schedule of fees, charges for tuition, books, 
supplies, tools, student activities, laboratory fees, service 
charges, rentals, deposits, and all other charges; 
    (f) Policy and regulations of the school relative to the 
refund of the unused portion of tuition, fees and other charges 
in the event the student does not enter the course or withdraws 
or is discontinued therefrom, which policy shall include an 
explanation of all provisions of section 141.271; 
    (g) A description of facilities and equipment used by the 
school; 
    (h) (2) A course outline for each course offered showing 
course objectives, subjects or units in each lesson of the 
course, type of work or skill to be learned, and the total 
number of lessons for each course of instruction; and 
    (i) Policy and regulations of the school relative to 
granting credit for previous education and training.  
    (3) All items listed in subdivision 9, except items in 
clauses (3) and (5). 
    (C) Subd. 9b.  [DELIVERY OF CATALOG.] Each A school or 
its agent thereof shall deliver the catalog or brochure required 
in subdivision subdivisions 9 and 9a to each prospective student 
in such time or manner as to provide the prospective student 
ample opportunity to read said the catalog or brochure before 
signing any contract or enrollment agreement or before being 
accepted by a school which does not utilize a written contract 
or enrollment agreement. 
    Sec. 69.  Minnesota Statutes 1984, section 141.25, 
subdivision 10, is amended to read: 
    Subd. 10.  [PLACEMENT RECORDS.] (a) No Before a license 
shall be is issued to a school which that offers, advertises or 
implies a placement service until, the school files shall file 
with the commissioner for the past year and thereafter 
at reasonable intervals to be determined by the commissioner, a 
certified copy of the school's placement record, containing a 
list of graduates, a description of their job, name of their 
employer, and such other information as the commissioner may 
prescribe.  
    (b) Each school which that offers a placement service shall 
furnish to each prospective student, prior to 
enrollment, written information concerning the percentage of the 
previous year's graduates who were placed in the occupation for 
which trained. 
    Sec. 70.  Minnesota Statutes 1984, section 141.25, is 
amended by adding a subdivision to read: 
    Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
to a school, each school located in Minnesota shall maintain 
permanent records for all students enrolled at any time.  Each 
school offering a correspondence course of instruction to a 
student located in Minnesota shall maintain permanent records 
for Minnesota students enrolled at any time.  Records include 
school transcripts, documents, and files containing student data 
about academic credits earned, courses completed, grades 
awarded, degrees awarded, and periods of attendance.  To 
preserve permanent records, a school shall submit a plan that 
meets the following requirements: 
    (a) at least one copy of the records must be held in a 
secure depository; 
    (b) an appropriate official must be designated to provide a 
student with copies of records or a transcript upon request; 
    (c) an alternative method of complying with paragraphs (a) 
and (b) must be established if the school ceases to exist; and 
    (d) a continuous surety bond must be filed with the 
department in an amount not to exceed $20,000 if the school has 
no binding agreement for preserving student records or a trust 
must be arranged if the school ceases to exist. 
    Sec. 71.  Minnesota Statutes 1984, section 141.26, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
such the permit shall state the full name, address, previous 
employment, and such other information concerning the solicitor 
applicant as the commissioner may require.  
    (b) The application shall have attached to it a certified 
affidavit signed by a school official and the solicitor 
attesting to the fact that the applicant has been furnished a 
copy, has read and has knowledge of the provisions of Minnesota 
Statutes, Chapter 141 and Minnesota Regulations, Chapter 20 
Rules, parts 3530.6500 to 3530.7800.  
    Sec. 72.  Minnesota Statutes 1984, section 141.26, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEE.] The initial and renewal application for 
each permit shall be accompanied by a nonrefundable fee of 
$75 $165. 
    Sec. 73.  Minnesota Statutes 1984, section 141.28, 
subdivision 4, is amended to read: 
    Subd. 4.  [ACCEPTANCE OF CONTRACTS.] No school shall accept 
contracts, enrollment agreements or enrollment applications from 
an agent or solicitor who does not have a current permit as 
required by Laws 1973, Chapter 714.  
    Sec. 74.  Minnesota Statutes 1984, section 141.32, is 
amended to read: 
    141.32 [PENALTY.] 
    Violation of any provisions of sections 141.21 to 141.36 
this chapter shall be a misdemeanor.  Each day's failure to 
comply with the provisions of Laws 1973, Chapter 714 this 
chapter shall be a separate violation.  
    Sec. 75.  [TASK FORCE ON PRIVATE PROPRIETARY SCHOOLS.] 
    Subdivision 1.  There is created a task force on private 
proprietary schools whose purpose is to study issues and make 
recommendations relating to private proprietary schools. 
    Subd. 2.  The task force consists of 11 members as 
follows:  one member appointed by the higher education 
coordinating board; one member appointed by the state board of 
education; one member appointed by the Minnesota association of 
private post-secondary schools; one member appointed by the 
private college council; one member appointed by the governor to 
represent schools regulated under Minnesota Statutes, chapter 
141, that are not members of the Minnesota association of 
private post-secondary schools; one member appointed by the 
governor to represent institutions registered under Minnesota 
Statutes, sections 136A.61 to 136A.71, that are not members of 
the private college council; one member appointed by the 
governor to represent schools regulated by Minnesota Statutes, 
chapter 141, and sections 136A.61 to 136A.71; and four members 
appointed by the governor who are knowledgeable about the areas 
of study.  The task force shall elect a chair from its 
membership. 
    Subd. 3.  The task force shall: 
    (1) study the appropriate agency or agencies to regulate 
private schools subject to Minnesota Statutes, chapter 141, and 
sections 136A.61 to 136A.71; 
    (2) study statutes and rules that apply to private schools 
subject to Minnesota Statutes, chapter 141, and sections 136A.61 
to 136A.71, as well as other related statutes, rules, and 
policies; 
    (3) study the regulations in other states concerning the 
types of schools being studied; 
    (4) make recommendations for any changes that may be needed 
to implement appropriate and equitable regulation of the various 
types of schools.  In making the recommendations, the task force 
may consider statutes and policies in effect for similar public 
institutions; and 
    (5) examine and make recommendations on awarding of course 
credit for work completed in private proprietary schools and the 
issue of transferring credit from these schools to other public 
or private institutions. 
    The task force study and report shall be coordinated by the 
higher education coordinating board. 
    Subd. 4.  The department of education and the higher 
education coordinating board shall provide staff assistance and 
information for the task force.  Compensation of task force 
members shall be according to Minnesota Statutes, section 
15.059, subdivision 3. 
    Subd. 5.  By February 1, 1986, the task force shall submit 
to the education committees of the legislature its report and 
recommendations.  The task force shall terminate on June 30, 
1986. 
    Sec. 76.  [FISCAL YEAR 1985 FINAL AVTI PAYMENT.] 
    Notwithstanding any law to the contrary, the amount of 
entitlement for fiscal year 1985 to the state board for 
vocational technical education, adjusted for actual data, minus 
the payments made during fiscal year 1985, shall be the final 
adjustment paid to each district on the first business day of 
July, 1985. 
    Sec. 77.  [REPORTS.] 
    Subdivision 1.  The higher education coordinating board 
shall present a report on the findings and activities regarding 
information technology as described in section 26 by December 1, 
1986. 
    Subd. 2.  The higher education coordinating board shall 
report to the legislature on actions by the systems and progress 
toward differentiation and intersystem planning efforts 
according to section 18.  The report shall be presented in 
conjunction with the system planning reports by December 1, 1986.
    Sec. 78.  [VOCATIONAL COURSE CREDIT STUDY.] 
    The higher education coordinating board and the state board 
of vocational technical education shall examine the awarding of 
course credit for work completed in area vocational technical 
institutes and the issue of transferring credit from these 
institutions to other public or private institutions.  The 
higher education coordinating board shall report its findings 
and recommendations to the legislature by February 1, 1986. 
    Sec. 79.  [DEVELOPMENTS FOR CREDIT TRANSFER.] 
    Course equivalency guides, common numbering conventions, 
and general education requirement standards, as required in 
section 19, shall be developed by August 1, 1986.  The higher 
education coordinating board shall report to the education, 
finance, and appropriations committees on these developments by 
November 1, 1986. 
    Sec. 80.  [EMERGENCY RULES.] 
    Subdivision 1.  [PART-TIME STUDENT GRANT PROGRAM.] The 
higher education coordinating board shall adopt emergency rules 
under Minnesota Statutes, sections 14.29 to 14.36 to implement 
the part-time student grant program under Minnesota Statutes, 
section 136A.132, as amended, for the 1985-1986 academic year.  
The board may use existing rules for 1985-1986 grants until 
emergency rules are adopted.  Notwithstanding Minnesota 
Statutes, section 14.35, the emergency rules are effective until 
permanent rules are adopted or June 30, 1986, whichever is 
earlier.  
    Subd. 2.  [SUPPLEMENTAL AND ADDITIONAL LOAN PROGRAM.] The 
higher education coordinating board shall adopt emergency rules 
pursuant to Minnesota Statutes, sections 14.29 to 14.36 to 
implement Minnesota Statutes 1984, section 136A.1701, for the 
1984-1985 academic year.  Notwithstanding Minnesota Statutes, 
section 14.35, the emergency rules may be effective until 
permanent rules are adopted or June 30, 1986, whichever is 
earlier. 
    Sec. 81.  [REPEALER.] 
    Minnesota Statutes 1984, sections 135A.07; 136A.121, 
subdivisions 8 and 14; 136C.26, subdivisions 2 and 8; 136C.28, 
subdivisions 3, 4, 5, 6, and 7; 136C.33, subdivisions 3 and 4; 
136C.37; and 136C.38, are repealed.  
    Sec. 82.  [EFFECTIVE DATES.] 
    Subdivision 1.  [IMMEDIATE.] Sections 14, 15, 16, 43, 44, 
45, 46, 75, and 80 are effective the day following final 
enactment. 
    Subd. 2.  [JULY 1, 1986.] Sections 29, subdivision 7; 30; 
31; 38; 47; 48; and 65, subdivision 2, are effective July 1, 
1986. 
    Approved June 27, 1985