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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1987 

                        CHAPTER 401-S.F.No. 1515 
           An act relating to public administration; 
          appropriating money for education and related purposes 
          to the 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; amending 
          Minnesota Statutes 1986, sections 135A.03, subdivision 
          1; 135A.04; 135A.06; 136A.02, subdivision 6; 136A.04, 
          subdivision 1; 136A.05; 136A.101, by adding a 
          subdivision; 136A.111, by adding a subdivision; 
          136A.121, subdivisions 4 and 5; 136A.132, subdivisions 
          3, 6, and 7; 136A.233, subdivisions 1 and 2; 136A.85; 
          136A.86, subdivisions 1 and 2; 136A.87; 137.025, 
          subdivision 1; 137.31, subdivision 3; and 645.445, 
          subdivision 5; Laws 1983, chapter 334, section 7; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 136 and 136C; repealing Minnesota Statutes 
          1986, section 116L.03, subdivision 6. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [HIGHER EDUCATION; APPROPRIATIONS.] 
    The sums in the columns marked "APPROPRIATIONS" are 
appropriated from the general fund, or other named fund, to the 
agencies and for the purposes specified in this act, to be 
available for the fiscal year indicated for each purpose.  The 
listing of an amount under the figure "1987," "1988," or "1989" 
in this act indicates that the amount is appropriated to be 
available for the year ending June 30, 1987, June 30, 1988, or 
June 30, 1989, respectively. 
    In this act, "first year" and "second year" mean the first 
fiscal year and second fiscal year, respectively, of the 
1987-1989 biennium beginning July 1, 1987, and ending 24 months 
later. 
    In this act, "biennium" and "1987-1989 biennium" mean the 
two consecutive fiscal years beginning July 1, 1987, and ending 
24 months later. 

                            SUMMARY BY FUND 
              1987         1988         1989         TOTAL   
General   $2,910,500   $810,380,600 $843,643,500 $1,656,934,600

                     SUMMARY BY AGENCY - ALL FUNDS
             1987          1988         1989          TOTAL
Higher Education Coordinating Board
                        $73,094,200  $75,284,300   $148,378,500
State Board of Vocational Technical Education
         $1,895,000     151,749,400  156,777,800    310,422,200
State Board for Community Colleges
                         65,922,900   69,774,400    135,697,300
State University Board
            500,000     130,897,600  139,554,800    270,952,400
Board of Regents of the University of Minnesota
         $515,500       387,865,200  401,343,300    789,724,000
Mayo Medical Foundation
                            851,300      908,900      1,760,200
                                          APPROPRIATIONS
                                        Available for the Year
                                           Ending June 30
                              1987        1988         1989
     Sec. 2.  HIGHER EDUCATION
COORDINATING BOARD   
     Subdivision 1.  Total 
Appropriation                           $73,094,200  $75,284,300
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Agency Administration 
  $3,321,300    $2,638,300
 This appropriation includes $150,000 in 
1988 for staff to administer the job 
skills partnership program.  The higher 
education coordinating board may employ 
staff to administer the job skills 
partnership program.  The job skills 
partnership program staff positions and 
their incumbents are transferred to and 
become employees subject to the 
direction of the higher education 
coordinating board. 
 This appropriation includes $294,000 in 
1988 and $214,000 in 1989 for the 
optometry and osteopathy contract 
program to continue seats for students 
who were in the program in the 
1986-1987 academic year.  No new 
students may be admitted to the program 
during the biennium. 
 This appropriation includes $15,000 in 
1988 for 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 had an agreement for each 
academic year in the 1985-1987 biennium 
for optometry seats.  Students are 
obligated to practice in Minnesota as 
provided in Minnesota Statutes, section 
136A.225. 
$118,000 in 1988 and $180,000 in 1989 
are to continue the post-high school 
planning program.  The additional 
funding in 1989 is to include more 
students and offer increased services.  
 A task force of equal numbers of 
representatives of the student advisory 
committee, financial aid administrators 
association, each public system, and 
the higher education coordinating board 
shall be convened by the HECB.  It 
shall develop guidelines to interpret 
unusual circumstances for the purpose 
of being an independent student.  The 
HECB shall distribute the guidelines to 
financial aid directors and 
representative student organizations at 
each campus. 
     Subd. 3.  State Scholarships and 
Grants 
  $60,500,000   $62,750,000
 If the appropriation for either year is 
insufficient, the appropriation for the 
other year is available to meet 
scholarship and grant obligations.  
 This appropriation contains money for 
increasing living allowances for state 
scholarships and grants to $2,985 for 
1988 and $2,995 for 1989. 
 Notwithstanding section 136A.121, 
subdivision 10, the implementation of 
eligibility for four full years of 
scholarships and grants is delayed 
until July 1, 1989. 
 $100,000 the first year is for 
short-term living and transportation 
expenses of AVTI students. 
     Subd. 4.  Interstate Tuition
Reciprocity 
  $3,700,000    $4,300,000 
 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 
  $4,503,600    $4,678,600
 Of this appropriation $325,000 is to 
cover increases in minimum wage for the 
biennium.  
     Subd. 6.  Income Contingent Loans 
  $   110,000   $  158,100 
 This appropriation is for an income 
contingent loan repayment program to 
assist graduates of Minnesota schools 
in medical, dental, pharmacy, 
chiropractic medicine, public health, 
and veterinary medicine in repaying 
their student debt by providing a 
repayment plan based on their annual 
income.  The HECB shall study the 
possible inclusion of students in other 
academic programs including optometry 
and osteopathy and report its 
recommendations to the appropriations 
and finance committees by December 1, 
1987.  During the biennium, applicant 
data collected by the HECB for this 
program may be disclosed to a consumer 
credit reporting agency under the same 
conditions as apply to the supplemental 
loan program according to section 
136A.162.  
     Subd. 7.  Minitex Library Program 
  $  759,300    $  759,300
     Subd. 8.  Enterprise Development
Partnerships 
  $  200,000    
 Subd. 9.  An unexpended balance in the 
first year under a subdivision in this 
section does not cancel but is 
available for the second year.  
     Sec. 3.  STATE BOARD OF VOCATIONAL 
TECHNICAL EDUCATION 
     Subdivision 1.  Total 
Appropriation             1,895,000    151,749,400  156,777,800
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Instructional Expenditures
 The legislature estimates that the 
amount for instructional expenditures 
will be $196,837,300 for the first year 
and $204,908,600 for the second year. 
 $2,730,000 each year is for repair and 
replacement.  Revenue for this purpose 
must be recorded in a separate account 
in the board's internal accounting 
system.  Money may be transferred into 
and out of the account.  A transfer, 
together with the amount and nature of 
the transfer, must be reported with the 
system's 1989-1991 biennial budget 
request.  The report must include an 
analysis of the adequacy of the above 
appropriation in meeting the system's 
repairs and replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government which is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
 $500,000 in 1988 and $1,000,000 in 1989 
are to provide customized training 
services to Minnesota employers.  
Expenses incurred in training under 
this section must be matched in the 
form of tuition.  The state director 
shall be responsible for ensuring this 
requirement is met.  
 The appropriation for fiscal year 1987 
is added to the appropriation in Laws 
1985, First Special Session chapter 11, 
section 4, subdivision 2, and must be 
used for retirement and social security 
employer's costs. 
     Subd. 3.  Noninstructional Expenditures 
 The legislature estimates that the 
amount for noninstructional 
expenditures will be $6,227,300 for the 
first year and $5,570,300 for the 
second year. 
 $5,371,700 the first year and 
$4,704,700 the second year are for debt 
service payments to school districts 
for AVTI buildings financed with 
district bonds issued before January 1, 
1979. 
 $56,100 the first year and $49,200 the 
second year are for veteran farmer 
cooperative training programs. 
$125,000 each year is for providing 
services for handicapped students. 
     Subd. 4.  State Council on Vocational 
Technical Education 
 $38,400 the first year and $39,400 the 
second year must be allocated by the 
state board to the state council on 
vocational education.  
     Sec. 4.  STATE BOARD FOR COMMUNITY
COLLEGES 
     Subdivision 1.  Total 
Appropriation                           65,922,900   69,774,400 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Instructional Expenditures
 The legislature estimates that the 
amount for instructional expenditures 
will be $83,787,100 for the first year 
and $89,619,300 for the second year. 
$220,000 each year is for special needs 
students. 
 $1,085,000 each year is for repair and 
replacement.  Revenue for this purpose 
must be recorded in a separate account 
in the board's internal accounting 
system.  Money may be transferred into 
and out of the account.  A transfer, 
together with the amount and nature of 
the transfer, must be reported with the 
system's 1989-1991 biennial budget 
request.  The report must include an 
analysis of the adequacy of the above 
appropriation in meeting the system's 
repairs and replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government which is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
     Subd. 3.  Noninstructional Expenditures
 The legislature estimates that the 
amount for noninstructional 
expenditures will be $10,962,300 for 
the first year and $10,906,300 for the 
second year. 
     Sec. 5.  STATE UNIVERSITY BOARD 
     Subdivision 1.  Total 
Appropriation             500,000      130,897,600  139,554,800 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
    Subd. 2.  Instructional Expenditures 
 The legislature estimates that the 
amount for instructional expenditures 
will be $182,126,300 for the first year 
and $194,951,000 for the second year. 
$2,245,000 each year is for repair and 
replacement.  Revenue for this purpose 
must be recorded in a separate account 
in the board's internal accounting 
system.  Money may be transferred into 
and out of the account.  The transfer, 
together with the amount and nature of 
the transfer, must be reported with the 
system's 1989-1991 biennial budget 
request.  The report must include an 
analysis of the adequacy of the above 
appropriation in meeting the system's 
repairs and replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government which is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
 During the biennium, 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. 
$250,000 in 1988 and $400,000 in 1989 
is for the expansion of upper division 
programs at Metropolitan State 
University. 
Notwithstanding Minnesota Statutes, 
section 136.09, subdivision 3, or other 
law to the contrary, during the 
biennium neither the state university 
board nor the state university campuses 
shall engage in planning or development 
of doctoral level programs or degrees 
without prior approval of the house and 
senate higher education policy and 
money committees. 
$50,000 in 1988 is for the planning of 
the materials science engineering 
program at Winona State University.  
The state university board shall 
develop short and long range plans that 
specify the directions and intentions 
of the system in program development, 
particularly in the science, 
technology, and engineering areas.  The 
plans shall provide an overview of the 
entire system as well as specifically 
examining the status of current 
programs and future plans at each 
campus.  In its planning during the 
biennium, the board shall study at 
least immediate and long range:  (1) 
needs for and opportunities available 
to students graduating in these program 
areas; (2) possibilities of cooperative 
arrangements with other educational 
institutions; (3) incorporation of new 
technology developments into existing 
programs rather than creating new 
programs; (4) potential for private 
sector participation and investment; (5)
effects of emphasizing technological 
programs on other academic areas; and 
(6) consequences for the state's 
economy.  The board shall report its 
findings to the appropriations and 
finance committees of the legislature 
by January 15, 1988.  
The study must be submitted to the HECB 
for review and comment before its 
submission to the legislature.  
$500,000 in fiscal year 1989 is for 
implementation of the program, 
contingent upon formal recommendation 
by the education divisions of the house 
appropriations committee and the senate 
finance committee.  
 During the biennium, revenue generated 
from royalties, patents, licenses, or 
interests kept by the state university 
board from the science and technology 
project at Southwest State University 
is appropriated to the state university 
board and must be allocated by the 
board to Southwest State University for 
the continued operation of the science 
and technology resource center.  
     Subd. 3.  Noninstructional Expenditures 
 The legislature estimates that the 
amount for noninstructional 
expenditures will be $9,211,700 for the 
first year and $9,276,300 for the 
second year. 
This appropriation includes interest 
costs for outstanding bonds and in no 
way constitutes a commitment or 
obligation by the state of Minnesota to 
make any payments on the principal or 
the interest on the bonds or any 
associated fees or costs, nor does the 
appropriation constitute an admission 
or position by the state of Minnesota 
on the merits of any litigation arising 
out of an alleged default on the bonds 
or an alleged breach of any contract or 
loan agreement.  
 During the biennium, prior to resolving 
any litigation arising out of an 
alleged default on the bonds or an 
alleged breach of any contract or loan 
agreement, the attorney general is 
requested to determine whether any 
third parties may be liable for part or 
all of any alleged damages and to 
pursue appropriate litigation against 
or settlement with the third parties.  
 During the biennium, the city of 
Mankato may assess the state university 
board for costs of reconstruction and 
improvement of Val Imm Drive.  The 
assessment must not be made until 
completion of the work and must not 
exceed $500,000 or 40 percent of the 
project, whichever is less.  
 During the biennium, notwithstanding 
any law to the contrary, the state 
university board may retain money 
received from successful litigation by 
or against the board.  Awards made to 
the state or the board resulting from 
litigation against or by the board 
shall be retained by the board to the 
credit of the account from which the 
litigation was originally funded. 
 The appropriation for fiscal year 1987 
is for the bridge assessment specified 
in Laws 1983, chapter 344, section 8, 
subdivision 5(b).  
    Subd. 4.  Construction 
During the biennium, the state 
university board may accept money from 
nonstate sources to construct a 
building on the Mankato, St. Cloud, and 
Moorhead state university campuses.  No 
state appropriated funds shall be 
expended for this purpose.  The board 
shall supervise and control the 
preparation of plans and specifications 
for the construction of each building.  
The board shall advertise for bids and 
award contracts, 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. 6.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
    Subdivision 1.  Total 
Appropriation             515,500      387,865,200  401,343,300 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
    Subd. 2.  Operations and 
Maintenance                            313,688,200  324,702,900 
 On December 1, 1988, and December 1, 
1989, 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 1988 from all sources in excess of 
$124,040,700 and during the fiscal year 
1989 from all sources in excess of 
$128,638,300; the sources of these 
receipts; and the purposes for which 
any excess receipts were spent and the 
accounts to which the receipts 
transferred. 
 (a) Instructional Expenditures 
 The legislature estimates that the 
amount for instructional expenditures 
in subdivision 2 and subdivision 3, 
paragraph (a) will be $344,009,900 for 
the first year and $360,972,100 for the 
second year. 
 $6,732,000 each year is for repair and 
replacement.  Revenue for this purpose 
must be recorded in a separate account 
in the board's internal accounting 
system.  Money may be transferred into 
and out of the account.  A transfer, 
together with the amount and nature of 
the transfer, must be reported with the 
system's 1989-1991 biennial budget 
request.  The report must include an 
analysis of the adequacy of the above 
appropriation in meeting the system's 
repairs and replacement needs. Of this 
amount, $200,000 in the first year is 
for the Falcon Heights assessment for 
the Roselawn Avenue project; $82,000 in 
the first year is for city assessments 
for utilities and services for the 
Waseca campus; and $3,000 in the first 
year is for city assessments for 
utilities and services for the Morris 
campus. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government which is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
 The president of the University of 
Minnesota is requested to review, 
during the biennium, the University of 
Minnesota's institutional support costs 
and redirect any savings into academic 
programs. 
 During the biennium, 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 develop 
a new plan by which the funding 
necessary to implement comparable worth 
in a timely manner is provided through 
internal reallocation.  The university 
shall report on its actions by January 
15, 1988, to the appropriations and 
finance committees. 
 (b) Noninstructional Expenditures 
 The legislature estimates that the 
amount for noninstructional 
expenditures will be $95,461,000 for 
the first year and $94,747,600 for the 
second year. 
 $2,900,000 in fiscal year 1988, and 
3,100,000 in fiscal year 1989, are for 
the graduate fellowship program.  By 
January 15, 1989, 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 
                           515,500      74,177,000  76,640,400
 The university shall submit a report to 
the 1988 Legislature on all of its 
special appropriations.  The report 
must include which special 
appropriations could be continued as 
is, consolidated, transferred to the 
operations and maintenance account, 
reduced, or eliminated; all sources of 
funding for each special appropriation; 
a detailed itemization of projects 
included in each special appropriation; 
the outcome of the activity; the 
reasons for each special appropriation; 
specific plans for each special 
appropriation; and any other pertinent 
information. 
 (a) Rank Funding Adjustment 
   $1,742,000   $2,378,500
 The legislature estimates that 
$2,600,000 in fiscal year 1988 and 
$3,550,000 in fiscal year 1989 is for 
the university's commitment to focus 
its efforts on academic excellence.  
This estimate is counted as 
instructional cost.  This appropriation 
must not be allocated to the Board of 
Regents by the commissioner of finance 
until the Board of Regents adopts the 
plan and directs the president of the 
University of Minnesota to proceed with 
the plan. 
 Of this amount, up to $400,000 is to 
ensure adequate counseling of students 
applying for admission.  
 It is the intention of the legislature 
that the university's commitment to 
focus plan and enrollment targets 
provide the basis for funding in 
subsequent biennia.  
 The university shall report on its uses 
of these funds by January 15 of each 
year of the biennium.  Beginning in the 
1989-1991 biennium, the request for 
rank adjustment must be incorporated 
into the operations and maintenance 
budget request.  
 The regular session enrollment 
projected for this appropriation is 
37,312 full-year equivalent 
undergraduate students for fiscal year 
1988, and 36,236 for fiscal year 1989.  
For developing the 1989-1991 biennial 
budget request, the regular session 
undergraduate enrollment used for the 
average cost funding formula must not 
exceed these numbers.  For the biennium 
ending June 30, 1989, tuition income 
resulting from students in excess of 
the projections reduces the general 
fund appropriation by a like dollar 
amount.  The legislature further 
anticipates that the regular session 
full-year equivalent undergraduate 
students must not exceed 33,750 for 
fiscal year 1991, and 31,600 by fiscal 
year 1993.  The university shall submit 
progress reports on the attainment of 
the anticipated enrollments. 
(b) Minnesota Extension Service 
  $515,500   $14,359,200   $14,637,100
 The appropriation in fiscal year 1987 
is added to the appropriation in Laws 
1986, chapter 398, article 29, section 
1, subdivision 8, and must be used for 
farmer-lender mediation services. 
 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.  
(c) Agricultural Research 
  $24,248,300   $24,863,400
 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 distribution of farms and 
agribusinesses and must not 
disproportionately represent those from 
the upper half of the size and income 
distributions.  
(d) Veterinary Diagnostic Laboratory 
  $1,322,400    $1,355,900
(e) Coleman Leukemia Research Center 
  $242,300      $248,500  
(f) Indigent Patients (County Papers) 
  $400,000      $300,000
(g) Rural Physicians Associates Program 
  $568,800      $583,200
(h) Medical Research 
  $2,344,700    $2,404,200
(i) Special Hospitals, Service and 
Educational Offset 
  $9,678,900    $9,924,400 
 During the biennium, fees for service 
furnished to counties and individuals 
under this program must be sought to 
increase the money appropriated.  The 
fees are appropriated to the university 
hospitals, to be available until June 
30, 1989. 
(j) Fellowships for Minority and 
Disadvantaged Students 
  $54,900       $56,300
(k) General Research 
  $2,125,900    $2,179,800 
 This appropriation is, as the board of 
regents may direct, for general 
research, and business and economic 
research including business and 
economic research at Duluth, center for 
urban and regional affairs, museum of 
natural history, and juvenile justice 
seminar.  
(l) Intercollegiate Athletics 
  $2,993,700    $3,069,700 
 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 must be allocated to 
each campus: 
  Duluth     517,113  530,230 
  Morris      62,013   63,586 
  Crookston   42,128   43,196 
  Waseca      41,923   42,986 
(m) Student Loans Matching Money 
  $51,900       $54,500     
(n) Talented Youth Mathematics Program 
  $256,500      $262,900   
Of this appropriation, $45,000 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 
  $951,900      $976,100   
(p) Mineral Resources Research 
Center 
  $762,500      $781,800   
(q) Natural Resources Research Institute
  $2,400,000    $2,500,000 
 $100,000 each year is included in this 
appropriation for a cooperative state 
working group to study Minnesota's 
aspen resource. 
(r) Sea Grant College Program
  $314,700      $322,700   
(s) Underground Space Center 
  $222,000      $227,600   
(t) Institute for Advanced Studies 
    in Biological Process Technology 
  $770,500      $936,300   
(u) Industrial Relations Education 
  $724,600      $742,300   
(v) Institute for Human Genetics 
  $497,100      $509,700   
(w) Microelectronics and Information 
Science Center 
  $661,200      $678,000  
(x) Productivity Center
  $333,000      $341,500  
(y) Supercomputer Institute 
  $6,150,000    $6,306,000 
 This appropriation includes money for 
the leasing of two supercomputer 
architectures. 
     Sec. 7.  MAYO MEDICAL FOUNDATION 
     Subdivision 1.  Total 
Appropriation                            851,300     908,900   
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Medical School 
  $674,900      $728,000  
 The state of Minnesota shall pay a 
capitation of $8,653 in fiscal year 
1988 and $8,878 in fiscal year 1989 for 
each student who is a resident of 
Minnesota.  
 This appropriation provides capitation 
for 20 Minnesota residents in each of 
the four classes at Mayo Medical School.
The appropriation may be transferred 
between years of the biennium to 
accommodate enrollment fluctuations. 
 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  
  $176,400      $180,900  
 The state of Minnesota shall pay a 
capitation of $14,700 in fiscal year 
1988 and $15,075 in fiscal year 1989 
for a maximum of 12 students each year. 
    Sec. 8.  Minnesota Statutes 1986, section 135A.03, 
subdivision 1, is amended to read:  
    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 for the University of Minnesota, the state 
university system, and the community college system, and, for 
area vocational technical institutes, 75 at least 67 percent of 
the estimated total cost of instruction. 
    Sec. 9.  Minnesota Statutes 1986, 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.  In all 
systems that have a credit hour basis, tuition rates must be 
established on that basis and must not apply across a variable 
number of credits.  Tuition may be set at any percentage of 
instructional cost established by the respective boards. 
    Sec. 10.  Minnesota Statutes 1986, section 135A.06, is 
amended to read: 
    135A.06 [SYSTEM PLANS AND MISSIONS.] 
    Subdivision 1.  [SUBMISSION OF PLANS PLANNING REPORTS.] It 
is the intent intention of the legislature that the planning 
efforts of the public post-secondary education systems be 
summarized and reported to the legislature.  It is the 
further intent intention that the system missions be 
differentiated from one another to best serve the needs of the 
citizens of Minnesota.  In order To accomplish these goals, the 
University of Minnesota board of regents, the state university 
board, the state board for community colleges, and the state 
board 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 It 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 MISSIONS; INTERSYSTEM PLAN.] 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 create an overall intersystem plan that 
ensures achieving the state's overall post-secondary 
objectives.  The higher education coordinating board shall 
establish an agenda, determine schedules for accomplishing that 
agenda, and develop criteria for the intersystem plan. 
    Subd. 3.  [SYSTEM PLANS.] Each system shall develop a 
program plan for instruction, research, and public service.  
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) (1) a statement of program priorities for 
undergraduate, graduate, and professional education.  Program 
plans shall also include, including data about program cost and 
average class size within each institution.;  
    (b) (2) a review of plans for adjusting the number of 
facilities, staff, and programs to projected level of demand.  
Plans for adjustments shall consider, including consideration of 
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 that serve 
the same geographic area under different governing boards.; 
    (c) (3) enrollment projections for two, five, and ten years.
If a system uses projections which are different from the most 
based on recent available projections produced by the higher 
education coordinating board or, the system shall compare its 
projections with enrollment projections if different projections 
are used, they shall be compared to those prepared by the higher 
education coordinating board, and the system shall identify the 
method and assumptions used to prepare its projections.;  
    (d) (4) estimated financial costs and savings of 
alternative plans for adjusting facilities, staff, and programs 
to declining enrollments and fiscal resources.;  
    (e) (5) opportunities for providing services cooperatively 
with other public and private institutions in the same 
geographic area.; and 
    (f) (6) differentiating and coordinating missions to reduce 
or eliminate duplication of services and offerings, to improve 
delivery of services, and to establish clear and distinct roles 
and priorities.  
    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, The board shall submit the review and comment 
and the intersystem plan to the governor and legislature by 
December 1. 
    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 submits 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 board 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 
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. 11.  [136.27] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
    In awarding contracts for capital projects under section 
16B.09, the board must consider the documentation provided by 
the bidders regarding their qualifications including evidence of 
having successfully completed similar work, or delivering 
services or products comparable to that being requested.  The 
board shall formulate procedures to administer this section 
which include practices that will assist in the economic 
development of small businesses and small businesses owned and 
operated by socially or economically disadvantaged persons.  
    Sec. 12.  Minnesota Statutes 1986, section 136A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  There is hereby created A higher education 
advisory council, the membership of which shall include is 
established.  The council is composed of the president of the 
University of Minnesota, the chancellor of the state university 
board universities, the chancellor of the state board for 
community colleges, the state director of vocational technical 
education, the commissioner of education, the executive director 
president of the Minnesota private college council, and a 
representative from the Minnesota association of private 
post-secondary schools.  The advisory council shall (1) bring to 
the attention of the board any matters which that the council 
deems as needing attention of the board necessary, (2) 
make appropriate recommendations to the board as the council 
deems appropriate, (3) review and comment upon proposals and 
other matters before the board, and (4) provide any reasonable 
other assistance to the board in its effort to fulfill 
responsibilities of the board.  The board shall periodically 
inform the council of all matters under consideration by the 
board and.  The board shall refer all proposals to the 
council prior to transmitting such proposals as before 
submitting recommendations to the governor and the legislature.  
The board shall provide time for a report from the advisory 
council at each meeting of the board. 
    The higher education advisory council shall report to the 
board at least quarterly and at such other times as the council 
may deem desirable.  The council shall determine its meeting 
times, but the council it shall also meet within 30 days 
following after a request for a council meeting by the executive 
director of the board. 
    Sec. 13.  Minnesota Statutes 1986, section 136A.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  The higher education coordinating board 
shall:  
    (a) Continuously study and analyze all phases and aspects 
of higher education, both public and private, and develop 
necessary plans and programs to meet present and future needs of 
the people of the state in respect thereto; 
    (b) Continuously engage in long range planning of for the 
needs of higher education and, if necessary, cooperatively 
engage in such planning with neighboring states and agencies of 
the federal government;  
    (c) Act as successor to any committee or commission 
heretofore previously authorized to engage in exercising any of 
the powers and duties prescribed by sections 136A.01 to 136A.07; 
    (d) Review, approve or disapprove, make recommendations, 
and identify priorities with respect to all plans and proposals 
for new or additional programs of instruction or substantial 
changes in existing programs to be established in or offered by, 
the University of Minnesota, the state universities, the 
community colleges, and public area vocational technical 
institutes, and private collegiate and 
noncollegiate post-secondary institutions offering 
post-secondary education, and.  The board shall also 
periodically review existing programs offered in or by the above 
institutions and recommend discontinuing or modifying any 
existing program, the continuation of which is judged by the 
board as being.  When reviewing new or existing programs, the 
board shall consider whether the program is unnecessary or, a 
needless duplication of existing programs, beyond the capability 
of the system or institution considering its resources, or 
beyond the scope of the system or institutional mission; 
    (e) Develop in cooperation with the post-secondary systems, 
committee on appropriations of the house of representatives 
appropriations committee, committee on senate finance of the 
senate committee, and the departments of administration and 
finance, a compatible budgetary reporting format designed to 
provide data of a nature to facilitate systematic review of the 
budget submissions of the University of Minnesota, the state 
university system, the state community college system and 
the public area vocational technical schools; and, which 
includes the relating of dollars to program output;  
    (f) Review budget requests, including plans for 
construction or acquisition of facilities, of the University of 
Minnesota, the state universities, the state community colleges, 
and public area vocational technical schools for the purpose of 
relating present resources and higher educational programs to 
the state's present and long range needs; and conduct a 
continuous analysis of the financing of post-secondary 
institutions and systems, including the assessments as to the 
extent to which the expenditures and accomplishments are 
consistent with legislative intent;  
    (g) Obtain from private post-secondary institutions 
receiving state funds a report on their use of those funds; 
    (h) Continuously monitor and study the transferability 
between Minnesota post-secondary and higher education 
institutions of credits earned for equal and relevant work at 
those institutions, the degree to which credits earned at one 
institution are accepted at full value by the other 
institutions, and the policies of these institutions concerning 
the placement of these transferred credits on transcripts. 
    Sec. 14.  Minnesota Statutes 1986, section 136A.05, is 
amended to read: 
    136A.05 [COOPERATION OF INSTITUTIONS OF HIGHER EDUCATION.] 
    All public institutions of higher education, public and 
private, and all state departments and agencies are requested to 
shall cooperate with and supply written information requested by 
the higher education coordinating board in order to enable it to 
carry out and perform its duties.  Private post-secondary 
institutions are requested to cooperate and provide information. 
    Sec. 15.  Minnesota Statutes 1986, section 136A.101, is 
amended by adding a subdivision to read:  
    Subd. 9.  [INDEPENDENT STUDENT.] "Independent student" has 
the meaning given it in the Higher Education Act of 1965, United 
States Code, title 20, section 1070a-6, and applicable 
regulations.  
    Sec. 16.  Minnesota Statutes 1986, section 136A.111, is 
amended by adding a subdivision to read: 
    Subd. 6.  The board shall inform students, in writing, as 
part of the application process for financial aid, about the 
definition of and appeals to the financial aid administrator 
relating to the independent student status declaration. 
    Sec. 17.  Minnesota Statutes 1986, 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.  The amount of a 
financial stipend 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) for an applicant who is not an independent student, 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 is $100.  
    Sec. 18.  Minnesota Statutes 1986, section 136A.121, 
subdivision 5, is amended to read:  
    Subd. 5.  [GRANTS-IN-AID STIPENDS.] A financial stipend 
based on financial need must accompany grants-in-aid.  The 
amount of a financial stipend 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) for an applicant who is not an independent student, 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 is $100.  
    Sec. 19.  Minnesota Statutes 1986, section 136A.132, 
subdivision 3, is amended to read:  
    Subd. 3.  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. 20.  Minnesota Statutes 1986, 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. 21.  Minnesota Statutes 1986, section 136A.132, 
subdivision 7, is amended to read:  
    Subd. 7.  Funds appropriated for part-time student 
grants-in-aid shall be allocated among eligible institutions by 
the higher education coordinating board according to a formula 
which takes into account the number of resident part-time 
students enrolled in each institution and other relevant factors 
determined by the board.  However, an institution must not 
receive less than it would have received under the allocation 
formula used before fiscal year 1988.  
    Sec. 22.  Minnesota Statutes 1986, section 136A.233, 
subdivision 1, is amended to read:  
    Subdivision 1.  Notwithstanding the provisions of sections 
136A.09 to 136A.131, the higher education coordinating board may 
offer work-study grants to eligible post-secondary institutions 
according to the resident full time equivalent enrollment of all 
eligible post-secondary institutions that apply to participate 
in the program.  The board shall seek to equalize work-study job 
opportunities by also taking into account student employment 
needs at eligible institutions.  Each institution wishing to 
receive a work-study grant shall submit to the board in 
accordance with policies and procedures established by the board 
an estimate of the amount of funds needed by the institution and 
the amount allocated to any institution shall not exceed the 
estimate of need submitted by the institution.  Any funds which 
would be allocated to an institution according to full-time 
equivalent enrollment but which exceed the estimate of need by 
the institution or the actual need of the institution may be 
reallocated by the board to other institutions for which the 
estimate of need exceeds the amount of allocation according to 
enrollment.  The institution must not receive less than it would 
have received under the allocation formula used before fiscal 
year 1988.  No more than one-half of any increase in 
appropriations, attributable to this section, above the level 
before fiscal year 1988 may be allocated on the basis of 
identified student employment needs at eligible institutions. 
    Sec. 23.  Minnesota Statutes 1986, 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. 
    (e) "Independent student" has the meaning given it in the 
Higher Education Act of 1965, United States Code, title 20, 
section 1070a-6, and applicable regulations. 
    Sec. 24.  Minnesota Statutes 1986, section 136A.85, is 
amended to read:  
    136A.85 [CAREER GUIDANCE POST-HIGH SCHOOL PLANNING PROGRAM; 
ESTABLISHMENT.] 
    The Minnesota higher education coordinating board shall 
establish a voluntary post-high school planning program for all 
eleventh grade students in the state who desire to participate, 
secondary students in grades 8 through 12, and adults.  The 
program must be a statewide education and career guidance, 
testing, information and planning program designed to: 
    (a) Assist students to make career plans and decisions 
regarding post-secondary education, training and goals (1) 
enable students and adults to consider the full range of 
available post-secondary opportunities; 
    (2) encourage early and systematic planning for education 
and careers by students and adults; 
    (3) encourage students and adults to acquire the academic 
skills to prepare them for a wide range of post-secondary 
programs; 
    (4) increase completion of post-secondary education by 
helping students and adults enroll in appropriate institutions 
and programs; 
    (5) consolidate and make more efficient the testing 
procedures used to advise, admit, and place students and adults 
in post-secondary programs; 
    (b) (6) assist high school, college and vocational 
institute counselors in their work with students and adults; 
    (c) (7) assist Minnesota colleges and vocational institutes 
to identify students and adults for whose talents, interests and 
needs they have appropriate programs; 
    (d) (8) assist colleges and scholarship agencies to select 
from applicants those who show the most promise of benefiting 
from particular programs; 
    (e) (9) provide educators, state planners and policy makers 
in the state a continuous inventory of the talents, plans, needs 
and other characteristics of students and adults in individual 
educational institutions, in educational systems, and in the 
state as a whole; and 
    (f) (10) assist educators, state planners and policy makers 
to develop improved educational measures and counseling tools. 
    Sec. 25.  Minnesota Statutes 1986, section 136A.86, 
subdivision 1, is amended to read:  
    Subdivision 1.  The board shall establish an advisory task 
force to define the objectives of the program and make 
recommendations to the board on program goals, policies and, 
selection of tests, and coordination of tests administered by 
the program and post-secondary institutes.  The task force shall 
study and make recommendations about a variety of methods that 
could be used throughout the community to provide assistance to 
adults considering post-secondary education.  Membership on the 
advisory task force shall include, but not be limited to, 
representatives of: the state university system, the university 
of Minnesota, the state community college system, the area 
vocational technical institute system, the Minnesota private 
college council, the Minnesota association of private 
post-secondary schools, the Minnesota school boards association, 
the Minnesota association of secondary school principals, the 
Minnesota school counselors association, Minnesota area 
vocational technical institutes, the Minnesota department of 
education, the Minnesota association of private vocational 
schools, and a minimum of one secondary and one post-secondary 
education student, and other representatives who have knowledge 
of and interest in post-secondary education for adults.  The 
expiration of this advisory task force and the terms, 
compensation and removal of its members shall be as provided in 
section 15.059, subdivision 6. 
    Sec. 26.  Minnesota Statutes 1986, section 136A.86, 
subdivision 2, is amended to read:  
    Subd. 2.  The board shall periodically at least biennially 
review and evaluate the statewide career guidance, testing, 
information and planning program and report to the governor and 
legislature the program status and the board's recommendations 
for legislation to improve the program. 
    Sec. 27.  Minnesota Statutes 1986, section 136A.87, is 
amended to read:  
    136A.87 [ASPECTS OF THE PROGRAM.] 
    Subdivision 1.  [ASSESSMENT INSTRUMENTS AND 
QUESTIONNAIRES.] The program shall: 
    (a) Administer to eleventh grade Minnesota high school 
students, who desire to participate in the program, educational 
measurement instruments and questionnaires as determined by the 
board to be appropriate to serve the purposes of sections 
136A.85 to 136A.88; 
    (b) provide for administration of education and career 
assessment instruments and questionnaires to residents in grades 
8 through 12, and to adults.  The board shall determine the 
instruments and questionnaires that are appropriate to serve the 
purposes of sections 136A.85 to 136A.88. 
    Subd. 2.  [HIGH SCHOOL ASSESSMENTS.] The program shall 
provide for administration of educational measurement 
instruments and questionnaires to high school students before 
their senior year.  At least the following may be included:  
    (1) an aptitude assessment for students anticipating entry 
to collegiate programs; 
    (2) an inventory of interests, career directions, 
background information, and education plans; and 
    (3) a preliminary mathematics placement test to aid in 
future course selections, and, as determined appropriate by the 
board, preliminary placement tests in other subjects.  
    Subd. 3.  [PROVIDING INFORMATION.] The board shall make 
available to all residents from 8th grade through adulthood 
information about planning and preparing for post-secondary 
opportunities.  Information must be provided to all 8th grade 
students and their parents by January 1 of each year about the 
need to plan for their post-secondary education.  The board may 
also provide information to high school students and their 
parents, to adults, and to out-of-school youth.  The information 
provided may include the following: 
    (1) the need to start planning early; 
    (2) the availability of assistance in educational planning 
from educational institutions and other organizations;  
    (3) suggestions for studying effectively during high school;
    (4) high school courses necessary to be adequately prepared 
for post-secondary education;  
    (5) encouragement to involve parents actively in planning 
for all phases of education;  
    (6) information about post-high school education and 
training opportunities existing in the state, their respective 
missions and expectations for students, their preparation 
requirements, admission requirements, and student placement; 
    (7) ways to evaluate and select post-secondary institutions;
    (8) the process of transferring credits among Minnesota 
post-secondary institutions and systems; 
    (9) the costs of post-secondary education and the 
availability of financial assistance in meeting these costs; 
    (10) the interrelationship of assistance from student 
financial aid, public assistance, and job training programs; and 
    (11) financial planning for education beyond high school.  
    Subd. 4.  [DATA BASE.] A data base of information from the 
program's assessments and services shall be maintained to:  
    (1) provide individual reports of results to the students, 
to the high schools in which students are enrolled, and, if 
authorized by the students, to post-secondary educational 
institutions; and 
    (c) (2) provide annual statewide summary reports of results 
on a statewide basis to all Minnesota high schools and, 
post-secondary educational institutions and to, the department 
of education, the chairs of the education, higher education, 
appropriations and finance committees of the legislature, and 
the governor. 
    Subd. 5.  [COORDINATION.] The board shall coordinate 
efforts and develop additional methods of providing information, 
guidance, and testing services to out-of-school youth and adults.
    Sec. 28.  [136C.043] [COLLECTING FEES FOR SEMINARS AND 
MATERIALS.] 
    The state board may charge fees for seminars, conferences, 
workshops, and instructional materials.  The money is annually 
appropriated to the state board.  
    Sec. 29.  Minnesota Statutes 1986, section 137.025, 
subdivision 1, is amended to read: 
    Subdivision 1.  The commissioner of finance shall pay no 
money to the University of Minnesota pursuant to a direct 
appropriation, other than an appropriation for the university of 
Minnesota hospitals or for buildings, until the university first 
certifies to the commissioner of finance that its aggregate 
balances in the temporary investment pool, cash, or separate 
investments, resulting from all state maintenance and special 
appropriations do not exceed $7,000,000, or any other amount 
specified in the act making the appropriation, plus one-third of 
all tuition and fee payments from the previous fiscal year.  
Upon this certification, 1/12 of the annual appropriation to the 
university shall be paid at the beginning of each month.  
Additional payments shall be made by the commissioner of finance 
whenever the state appropriations and tuition aggregate balances 
in the temporary investment pool, cash, or separate investments 
are reduced below the indicated levels. 
    Sec. 30.  Minnesota Statutes 1986, section 137.31, 
subdivision 3, is amended to read: 
    Subd. 3.  [SET ASIDE FOR DISADVANTAGED.] At least 15 
percent of the value of the procurement contracts designated for 
the set-aside program shall be awarded, if possible, to small 
businesses owned and operated by socially or economically 
disadvantaged persons, as defined by state law section 645.445.  
If small businesses owned and operated by socially or 
economically disadvantaged persons are unable to perform at 
least 15 percent of the value of the set-aside contracts, the 
university may award the balance of the designated set-aside 
procurement contracts to other small businesses.  
    Sec. 31.  Minnesota Statutes 1986, section 645.445, 
subdivision 5, is amended to read: 
    Subd. 5.  "Socially or economically disadvantaged person" 
means a person who has been deprived of the opportunity to 
develop and maintain a competitive position in the economy 
because of social or economic conditions.  This disadvantage may 
arise from cultural, social or economic circumstances, or 
background, physical location if the person resides or is 
employed in an area designated a labor surplus area by the 
United States Department of Labor, or other similar cause.  It 
includes racial minorities, women, or persons who have suffered 
a substantial physical disability.  For purposes of sections 
16B.19 to 16B.22 and 137.31, the definition of "socially or 
economically disadvantaged person" includes sheltered workshops 
and work activity programs. 
    Sec. 32.  [UNIVERSITY OF MINNESOTA ADMISSIONS COUNSELING.] 
    To protect access while encouraging a reduction in 
enrollment during the biennium, the University of Minnesota 
shall develop counseling mechanisms to advise applicants 
regarding their post-secondary plans.  The mechanisms must 
provide at least counseling for students whose high school rank 
and standardized test scores do not meet the minimum university 
admission standards or whose high school course preparation 
appears insufficient for academic success at the university.  
The counseling must occur before admission and must include a 
presentation of post-secondary options available to the student 
and an assessment of the student's opportunities for academic 
success within each option.  The counseling is not intended to 
preclude applicants from being admitted to the university, but 
instead to improve their understanding of their enrollment 
options and potential for success in higher education.  For 
applicants enrolled in high schools that have counselors, the 
high school counselor may provide the required advising.  For 
applicants not enrolled in high schools or in schools without 
counseling staff, the advising must be provided by the 
university.  The mechanisms may include, but are not limited 
to:  workshops with high school counselors, campus based 
counseling, toll free hotlines, and reassigning or adding 
necessary university counseling staff.  The public 
post-secondary systems should cooperate in these efforts to 
provide more thorough counseling for prospective students. 
    Sec. 33.  [TASK FORCE ON QUALITY ASSESSMENT.] 
    Subdivision 1.  [PURPOSE AND DUTIES.] A task force on 
post-secondary quality assessment is established for the 
biennium.  The task force shall determine the goals of quality 
assessment, study and select strategies and mechanisms for the 
state to use in achieving those goals, and consider ways to use 
assessment in improving post-secondary education. 
    Subd. 2.  [MEMBERSHIP.] The members of the task force must 
be determined by the executive director of the HECB and the 
members of the higher education advisory council.  One system 
representative and one faculty representative must be chosen for 
each post-secondary system from a list of nominees prepared by 
that system's council member.  One department representative and 
one secondary teacher must be chosen from a list of nominees 
submitted by the commissioner of education.  The executive 
director shall submit a list of nominees from the HECB staff or 
board members from which one task force member must be 
selected.  The student advisory council to the HECB shall submit 
nominations to the executive director and the council from which 
two student representatives shall be selected.  The executive 
director and the council must consider geographical balance in 
their selection of members.  The executive director shall 
appoint a representative of the HECB to convene the meetings. 
    Subd. 3.  [STAFF.] The HECB shall provide staff assistance 
and support services necessary for the task force to undertake 
and complete its work. 
    Subd. 4.  [PILOT PROJECTS.] During the 1988 calendar year, 
the task force shall establish a pilot assessment project within 
each of the public post-secondary systems.  The pilot projects 
must be used to help determine appropriate assessment mechanisms 
and to evaluate the uses and effectiveness of quality assessment.
     Subd. 5.  [REPORTS.] The task force shall submit a 
preliminary report to the higher education policy and funding 
divisions and committees of the legislature by February 1, 1988, 
concerning progress and plans of the task force.  It shall 
submit a full report of its activities, findings, and 
recommendations by February 1, 1989, to these divisions and 
committees.  Before submitting each report to the legislature, 
the task force shall submit the report to the higher education 
coordinating board for review and comment. 
    Subd. 6.  [FUNDING.] The HECB and the task force may seek 
funding from nonstate sources to provide for the costs necessary 
to accomplish subdivisions 1 to 5. 
    Sec. 34.  [TASK FORCE ON COMMON COURSE NUMBERING.] 
    Subdivision 1.  [ESTABLISHED.] A task force on common 
course numbering in post-secondary education is established.  
The purpose of the task force is to study and report on the 
benefits to students, the cost, and the feasibility of 
implementing a common course numbering system.  
    Subd. 2.  [MEMBERSHIP.] The task force consists of 25 
members as follows:  one system level administrator experienced 
in transfer of credit issues, one campus level administrator 
experienced in curriculum development issues, two faculty 
members appointed by each of the public post-secondary systems 
and the private college council, and one student representative 
from each post-secondary system appointed by the student 
advisory council.  Task force members shall serve without 
compensation, except that the post-secondary systems must 
provide for the expenses incurred by their student 
representatives.  
    Subd. 3.  [DUTIES.] The task force shall study and make 
recommendations on the expected outcomes and benefits of 
expanded course equivalency, a common course numbering system 
for higher education, more accessible transfer information, and 
students' opportunities for completion of their undergraduate 
educations.  The legislature expects that the AVTIs will be 
included in these recommendations when they convert to a course 
credit hour basis. 
    Subd. 4.  [HECB ROLE.] The task force study and report must 
be coordinated by the higher education coordinating board.  The 
board shall provide necessary staff assistance and information 
to the task force.  
    Subd. 5.  [REPORT.] By December 15, 1987, the task force 
shall submit its report to the higher education coordinating 
board for review and comment.  By February 1, 1988, the task 
force shall submit its report and recommendations to the higher 
education policy, appropriations, and finance divisions or 
committees of the legislature.  The task force terminates on 
June 30, 1988. 
    Sec. 35.  [TASK FORCE ON INSTRUCTIONAL TECHNOLOGY.] 
    During the biennium, the higher education coordinating 
board shall convene a task force to coordinate the development 
of state-level policy for using new instructional technology.  
Membership shall include one representative selected by each 
public system and private post-secondary education sector; six 
representatives selected by the department of education, 
including representation from school districts and other 
educational organizations involved in telecommunications; a 
representative selected by the department of administration; a 
representative from the student advisory council; three 
representatives selected by the higher education coordinating 
board, including two from the private sector, and a 
representative from the Minnesota public television association. 
    The task force shall: 
    (1) conduct an inventory and evaluation of current and 
emerging systems of instructional technology and 
telecommunications in elementary, secondary, and post-secondary 
education; 
    (2) assess the costs and benefits statewide networks of 
local and regional telecommunications systems, including 
opportunities for collaboration among post-secondary 
institutions, elementary and secondary schools, public agencies, 
communities and the private sector; 
    (3) examine the potential effect of telecommunications 
instruction transmitted from outside the state; 
    (4) determine objectives for the delivery of K-12 and 
post-secondary instruction through technological and 
telecommunications systems; and 
    (5) establish minimum state standards and procedures for 
the support of instructional technology and telecommunications 
systems. 
    The task force shall submit its recommendations to the 
higher education coordinating board for review and comment.  The 
report and the review shall be submitted to the legislature by 
January 15, 1989. 
    Sec. 36.  Laws 1983, chapter 334, section 7, is amended to 
read: 
    Sec. 7.  [REPEALER.] 
    Minnesota Statutes, sections 1 to 6 116L.01; 116L.02; 
116L.03, subdivisions 1, 2, 3, 4, 5, and 7; 116L.04; and 
116L.05, are repealed June 30, 1987 1989. 
    Sec. 37.  [INFORMATION FOR ADULTS CONSIDERING 
POST-SECONDARY EDUCATION.] 
    The advisory task force, established according to Minnesota 
Statutes, section 136A.86, subdivision 1, shall study and make 
recommendations about methods to provide assistance to adults 
who are considering beginning or returning to post-secondary 
studies.  The methods shall be available throughout the entire 
community and may include the use of education brokers.  The 
higher education coordinating board shall review and comment on 
the recommendations.  By January 1, 1988, the task force 
recommendations and board comments shall be reported to the 
legislature.  
    Sec. 38.  [INSTRUCTION TO THE REVISOR.] 
    The revisor shall change the heading before section 136A.85 
from Career Guidance Program to Post-high School Planning 
Program. 
    Sec. 39.  [REPEALER.] 
    Minnesota Statutes 1986, section 116L.03, subdivision 6, is 
repealed. 
    Sec. 40.  [EFFECTIVE DATE.] 
    Section 3, subdivision 1, section 5, subdivision 1, and 
section 6, subdivision 1, are effective the day following final 
enactment.  Sections 15, 17, 18, and 23 are effective the day 
following final enactment for financial aid for the 1987-1988 
academic year.  Section 29 is effective July 1, 1988. 
    Approved June 11, 1987