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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1988 

                        CHAPTER 703-S.F.No. 2569 
           An act relating to education; appropriating money to 
          the higher education coordinating board, regents of 
          the University of Minnesota, state university board, 
          state board for community colleges, and state board of 
          vocational technical education, with certain 
          conditions; authorizing bonding for capital 
          improvements; making or requesting changes in the 
          terms of tuition, audits, land funds, programs, and 
          provision of goods and services at one or more 
          post-secondary institutions, systems, or boards; 
          requiring reports; amending Minnesota Statutes 1986, 
          sections 3.971, subdivision 1; 92.05; 136.31, by 
          adding a subdivision; 136.41, by adding subdivisions; 
          and 248.07, subdivisions 7 and 12; Minnesota Statutes 
          1987 Supplement, sections 135A.04; and 248.07, 
          subdivision 8; Laws 1987, chapter 401, section 2, 
          subdivision 6; proposing coding for new law in 
          Minnesota Statutes, chapters 135A and 137; repealing 
          Minnesota Statutes 1986, sections 136.26; and 136C.13, 
          subdivision 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1 
    Section 1.  [APPROPRIATIONS.] 
    The amounts in the columns under "APPROPRIATIONS" are 
appropriated from the general fund or other named fund to the 
agencies for the purposes specified in this act.  The 
appropriations are available for the fiscal years indicated for 
each purpose.  The figure "1988" or "1989," when used to refer 
to the fiscal year of appropriations, means that the 
appropriations listed under the figure are available for the 
fiscal year ending June 30, 1988, or June 30, 1989, respectively.
                        SUMMARY BY FUND 
                                   1988         1989        TOTAL
GENERAL                      $5,700,000  $18,356,500  $24,056,500

                    Summary by Agency -- All Funds 
Higher Education
 Coordinating Board           5,700,000    1,235,000    6,935,000
State Board of Vocational
 Technical Education             -         1,907,800    1,907,800
State Board for Community
 Colleges                        -         6,014,400    6,014,400
State University Board           -         7,799,300    7,799,300
Regents of the University
 of Minnesota                    -         1,400,000    1,400,000
                                               APPROPRIATIONS
                                    Available for the Fiscal Year
                                               Ending June 30
                                             1988         1989
     Sec. 2.  HIGHER EDUCATION
COORDINATING BOARD - TOTAL                $5,700,000   $1,235,000
Subdivision 1.  Average Cost Funding 
Task Force 
 The HECB shall distribute agendas, 
minutes, and reports of the average 
cost funding task force to the chairs 
of the senate education and finance 
committees and the house higher 
education and appropriations committees.
Subd. 2.  State Scholarships
and Grants    
$5,700,000           $500,000
 This appropriation is added to the 
appropriation for the same purpose in 
Laws 1987, chapter 401, section 2, 
subdivision 3. 
 The legislature intends that the board 
make full scholarship and grant awards 
in fiscal year 1989.  The HECB may 
request the necessary appropriation in 
the 1989 legislative session if the 
fiscal year 1989 money is insufficient 
to make full awards. 
During the biennium, the HECB may 
transfer unencumbered balances among 
the accounts provided in Laws 1987, 
chapter 401, section 2, to the 
scholarship and grant account.  Before 
the transfer, the HECB shall consult 
with the chairs of the house 
appropriations and senate finance 
committees. 
 During the biennium, the HECB may ask 
the commissioner of finance to loan 
general fund money to the scholarship 
and grant account to ease cash flow 
difficulties.  The HECB must first 
certify to the commissioner that there 
will be adequate refunds to the account 
to repay the loan.  The commissioner 
shall use the refunds to make repayment 
to the general fund of the full amount 
loaned.  Money necessary to meet cash 
flow difficulties in the state 
scholarship and grant program is 
appropriated to the commissioner of 
finance for loans to HECB. 
Subd. 3.  Study of Statewide Higher 
Education Needs             $375,000
$350,000 is to begin a study of the 
post-secondary needs of the state.  The 
study shall be divided into two 
phases.  The first phase, to be 
undertaken in 1988, must concentrate on 
the needs of the population corridor 
extending from St. Cloud to Rochester. 
The second phase, to be undertaken in 
1989, must concentrate on the other 
regions of the state. The HECB may 
contract for portions of the study, as 
necessary.  Both phases of the study 
must focus on (1) an assessment of the 
current and future conditions and 
needs; (2) strategies to meet these 
needs; (3) costs associated with the 
strategies; and (4) effects of the 
strategies on existing institutions, 
state policies, and system and 
institutional missions.  
Both phases of the study should include 
consideration of at least the following 
concerns:  the current and projected 
demographic and participation trends; 
current level and types of services 
available; needs of traditional, 
nontraditional, and minority students; 
the geographical accessibility of 
services needed by different types of 
students; uses of alternative delivery 
systems, technology, cooperative 
efforts, and reciprocity agreements; 
and the physical capacity of existing 
institutions.  The HECB shall seek 
matching money for the study.  The HECB 
shall report its findings on the first 
phase to the education and finance 
committees of the senate and the higher 
education and appropriations committees 
of the house by February 1, 1989.  The 
study shall serve as the 1988 
intersystem plan for the post-secondary 
systems as required in section 135A.06, 
subdivision 2. 
$25,000 is for a study, to be conducted 
simultaneously with the first phase, on 
the procedures necessary, fiscal 
implications, and effects of 
implementing alternative governance 
arrangements of two-year public 
post-secondary institutions.  The HECB 
shall report the results of this study 
to the education and finance committees 
of the senate and the higher education 
and appropriations committees of the 
house by March 1, 1989. 
If either appropriation is 
insufficient, the HECB may transfer 
money within this subdivision, after 
notifying the chairs of the house 
appropriations and senate finance 
committees. 
Subd. 4.  Other Appropriations
(a) Job Skills Partnership               
The appropriation in Laws 1987, chapter 
386, article 10, section 9, for the Job 
Skills Partnership does not cancel but 
is available until expended.  Up to 
$75,000 of the appropriation may be 
used for administrative expenses.  The 
Partnership shall seek future funding 
from the Greater Minnesota Corporation. 
(b) Quality Assessment
                       $150,000 
(c) Minority Education Partnership
                        $10,000
(d) Model Enterprise Development and 
Innovation Centers        
                       $200,000
This appropriation may be used to 
support existing and new model 
centers.  The program shall seek future 
funding from the Greater Minnesota 
Corporation. 
     Sec. 3.  STATE BOARD OF
VOCATIONAL TECHNICAL EDUCATION - TOTAL                  1,907,800
(a) Curriculum Restructuring
                       $450,000
This is a nonrecurring appropriation 
and will not be included to calculate 
the base for the 1989-1991 biennial 
budget. 
(b) Increased Enrollment
                     $1,007,800
 This appropriation is based on an 
entitlement of $1,185,600.  This is a 
nonrecurring appropriation and will not 
be included when calculating the base 
for the 1989-1991 biennial budget.  
This appropriation is based on 
estimated enrollments for 1989 of 
40,548.  If actual enrollments are 
different from this estimate, the 
commissioner of finance shall calculate 
the effect for the general fund due to 
the difference and include an 
adjustment in the budget for fiscal 
year 1990.  The legislature intends 
that the board use this appropriation 
for curriculum restructuring. 
(c) State Council on Vocational
 Technical Education
                        $50,000
 This appropriation is added to the 
appropriation for the council in Laws 
1987, chapter 401, section 3, 
subdivision 4. 
(d) Services for Handicapped Students
                       $400,000
 This appropriation is for 
noninstructional expenditures. 
    Sec. 4.  STATE BOARD FOR COMMUNITY 
COLLEGES - TOTAL                                      6,014,400
(a) Increased Enrollment
                     $4,964,400
This is a nonrecurring appropriation 
and will not be included when 
calculating the base for the 1989-1991 
biennial budget.  This appropriation is 
based on estimated enrollments for 1989 
of 29,723.  If actual enrollments are 
different from this estimate, the 
commissioner of finance shall calculate 
the effect for the general fund due to 
the difference and include an 
adjustment in the budget for fiscal 
year 1990.  
(b) Instructional Equipment and
Base Adjustment  
                     $1,000,000
The legislature estimates that the 
amount of instructional expenditures 
will increase $1,492,500. 
(c) Wolf Center Program
                        $50,000 
This appropriation must not be spent 
until the community college board has 
approved the academic program for the 
Wolf Center.  This appropriation does 
not determine the appropriate location 
to offer the program. 
     Sec. 5.  STATE UNIVERSITY BOARD - TOTAL          7,799,300
(a) Increased Enrollment
                     $7,349,300
This is a nonrecurring appropriation 
and will not be included when 
calculating the base for the 1989-1991 
biennial budget.  This appropriation is 
based on estimated enrollments for 1989 
of 50,112.  If actual enrollments are 
different from this estimate, the 
commissioner of finance shall calculate 
the effect for the general fund due to 
the difference and include an 
adjustment in the budget for fiscal 
year 1990. 
(b) Winona State Engineering
The $500,000 appropriated in Laws 1987, 
chapter 401, section 5, subdivision 2, 
may be spent by the state university 
board for the Winona engineering school 
upon the legislature receiving a 
positive recommendation regarding 
program review from the HECB and 
documentation that $250,000 of the 
appropriation has been matched by 
contributions from nonstate sources.  
This matching requirement may be 
satisfied with donated equipment and 
supplies necessary to the program, 
after consulting with the chairs of the 
finance and appropriations committees. 
 (c) Arrowhead Upper Division 
                       $50,000 
This appropriation is to study and 
develop an upper division component 
within the Arrowhead Community College 
Region through Bemidji State 
University.  The money is to employ a 
coordinator who shall establish an 
administrative framework, and 
coordinate and improve student 
services.  The state university board 
shall report its progress in meeting 
the upper division needs of 
northeastern Minnesota to the house 
appropriations and senate finance 
committees by February 1, 1989. 
(d) Southwest State Science and Technology
Resource Center
                       $400,000
The Science and Technology Resource 
Center shall seek future funding from 
the Greater Minnesota Corporation.  
     Sec. 6.  REGENTS OF THE 
UNIVERSITY OF MINNESOTA - TOTAL                         1,400,000
Subdivision 1.  Operations and 
Maintenance 
 (a) The regents are requested to employ 
persons qualified to provide the board 
with fiscal and policy information, 
oversight, and analysis on matters 
requiring the regents' attention or 
action.  The staff should be 
independent from the University 
administration and should be 
responsible solely to the regents.  The 
board shall report its action under 
this paragraph to the chairs of the 
senate finance and house appropriations 
committees by December 1, 1988. 
(b) In allocating the University's 
central reserves, the regents are 
requested to be cognizant of the needs 
of the coordinate campuses. 
(c) The University of Minnesota is 
requested to develop fire safety 
standards, applicable to cigarettes and 
little cigars.  The funding for the 
development of the standards should be 
included in the University's 1989-1991 
biennial budget request. 
Subd. 2.  Special Appropriations
(a) Supercomputer Institute 
                     $1,100,000 
 This appropriation is available only if 
the board of regents purchases or 
enters into a new lease agreement, 
after the effective date of this 
provision, for a second supercomputer 
architecture.  The board shall report 
to the chairs of the senate finance and 
house appropriations committees whether 
it has obtained a second supercomputer 
architecture and, if it has entered 
into a lease agreement, the terms and 
conditions of the lease agreement.  The 
board may request money to continue a 
lease agreement in its budget request 
to the 1989 legislature. 
(b) Rochester Graduate Education 
                            $300,000
The legislature estimates that $450,000 
in fiscal year 1989 is for the 
University of Minnesota to provide 
graduate degree programs in the 
Rochester area.  To the extent 
possible, programs in electrical 
engineering, computer science, and 
technology management shall be 
offered.  The appropriation is for 
instructional expenditures.  The 
University is requested to prepare a 
report on short and long range plans 
for program development, faculty 
recruitment, availability and uses of 
adjunct faculty, estimates of costs for 
five years, and a timetable for 
establishment of graduate programs.  To 
assist in these determinations, the 
regents shall establish a permanent 
local advisory committee composed of 
persons, including representatives of 
the business community, who reside in 
the Rochester area and who have 
knowledge of, and interest in, graduate 
level education.  The University shall 
report its findings to the house 
appropriations and senate finance 
committees by February 1, 1989.  The 
report must be submitted to the HECB 
for review and comment before its 
submission to the legislature.  The 
HECB shall review the delivery of 
graduate level programs in the 
Rochester area and report its findings 
to the house appropriations and senate 
finance committees by February 1, 
1990.  This appropriation shall not 
cancel but shall be available until 
expended.  Money available from any 
other source may not supplant this 
appropriation but shall be added to it. 
    Sec. 7.  Minnesota Statutes 1986, section 3.971, 
subdivision 1, is amended to read:  
    Subdivision 1.  To perform financial audits the legislative 
auditor shall postaudit and make a complete examination and 
verification of all accounts, records, inventories, vouchers, 
receipts, funds, securities, and other assets of the University 
of Minnesota, all state departments, boards, commissions, and 
other state agencies at least once a year, if funds money and 
personnel permit, and oftener if deemed necessary or as directed 
by the legislature or the legislative audit commission.  Audits 
may include detailed checking of every transaction or test 
checking as the legislative auditor deems best.  The books of 
the state treasurer and commissioner of finance may be examined 
monthly.  The legislative auditor shall see that all provisions 
of law respecting the appropriate and economic use of public 
funds are complied with by all departments and agencies of the 
state government.  
    A copy of all postaudits, reports and results of 
examinations made by the legislative auditor shall be deposited 
with the legislative reference library.  
    Sec. 8.  Minnesota Statutes 1986, section 92.05, is amended 
to read:  
    92.05 [SALT LANDS, BY WHOM SOLD.] 
    The board of regents of the University of Minnesota shall 
have charge of the state salt lands donated by the United States 
to aid in the development of the brines in the state.  The board 
of regents may sell these lands.  The proceeds from the sales 
must be held in trust and must be disbursed in accordance with 
the law providing for a geological and natural history survey.  
The university may execute, in its name, deeds of conveyance of 
these lands.  The proceeds of the sale of the lands when 
invested constitute a permanent fund, called the university salt 
land fund.  The university board of regents shall control and 
manage the university salt land fund. 
    The university salt land fund is considered a nonstate 
source for purposes of section 137.022, subdivision 3.  The 
board of regents may use the income from the fund to match 
income from the permanent university fund for use by the 
university campuses at Crookston, Duluth, Morris, and Waseca for 
the purposes set forth in section 137.022, subdivision 3. 
    Sec. 9.  Minnesota Statutes 1987 Supplement, 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.  [135A.11] [COMMUNITY SERVICE.] 
    Each public post-secondary system is requested to review 
its curricula, especially in required courses in general 
education and departmental majors, to determine the current and 
future opportunities for incorporating community service 
components.  Each system is encouraged to locate curricular 
areas in which the system can assist students to voluntarily 
pursue community service that is relevant to their studies. 
    Sec. 11.  [135A.12] [UNIQUE NEEDS AND ABILITIES OF AMERICAN 
INDIAN PEOPLE.] 
    Subdivision 1.  [APPLICABILITY.] This section applies to 
the higher education coordinating board, each public 
post-secondary governing board, each public post-secondary 
institution, and each school board that operates a technical 
institute.  
    Subd. 2.  [PROGRAMS AND SERVICES.] The board of each 
institution, at the request of ten or more full-time American 
Indian students, shall establish an advisory committee, in 
consultation with tribal designated representatives.  The 
advisory committee shall recommend instructional programs and 
student services to meet the unique needs of American Indian 
people. 
    Subd. 3.  [AMERICAN INDIAN LANGUAGES.] A student who is 
proficient in an American Indian language shall have the 
opportunity to be assessed, placed, or to receive credit for 
skills in that language in the same manner that a student is 
assessed, placed, or receives credit for skills in languages 
other than the English language. 
    Subd. 4.  [QUALIFICATIONS FOR AMERICAN INDIAN STUDIES AND 
SERVICES.] American Indian individuals who understand and have 
demonstrated knowledge of American Indian language, history, or 
culture may be considered to be competent to provide instruction 
in American Indian language, history, or culture programs.  
Qualifications to provide noninstructional services at 
post-secondary institutions for American Indian people must take 
into consideration knowledge of and understanding of American 
Indian language, history, or culture.  
    Subd. 5.  [CONSULTATION.] When the higher education 
coordinating board conducts studies, performs evaluations, 
reviews programs, and makes recommendations that affect 
educational programs and services for American Indian people, it 
shall consult with tribal designated representatives. 
    Sec. 12.  [135A.13] [STUDENT SERVICES PRICES.] 
    The governing board of each public post-secondary system is 
requested to establish prices for goods and services sold 
through student services that approximate as nearly as possible 
the cost of providing quality goods and services. 
    Sec. 13.  Minnesota Statutes 1986, section 136.31, is 
amended by adding a subdivision to read: 
    Subd. 7.  Except as provided in this subdivision, the board 
may irrevocably appropriate and use any money, other than direct 
state appropriations and tuition receipts appropriated by 
section 136.11, subdivision 1, held by it to discharge or 
otherwise provide for the payment of the interest coming due on 
its revenue bonds outstanding on the effective date of this 
section until paid and of the principal and any premium coming 
due on the bonds at maturity or upon any earlier date upon which 
the bonds are called for redemption.  For this purpose, the 
board may exercise all powers conferred upon it under 
subdivision 6 with respect to escrow agents and escrow accounts, 
and may provide for the funding of the escrow accounts with 
securities of the type referred to in subdivision 6 and 
certificates of deposit, time deposits, and investment 
agreements issued by the escrow agent or any other financial 
institution.  This subdivision does not authorize the 
appropriation or use of board money to secure outstanding 
revenue bonds contrary to a board resolution authorizing the 
issuance and providing for the security of the bonds, or the use 
of other board money contrary to the terms of a contract, 
specific legislative appropriation, or law.  
    Sec. 14.  Minnesota Statutes 1986, section 136.41, is 
amended by adding a subdivision to read: 
    Subd. 8.  The state university board or a successor may 
issue additional revenue bonds under sections 136.31 to 136.38 
in an aggregate principal amount not exceeding $40,000,000, 
subject to the resolutions authorizing its outstanding revenue 
bonds, and payable from the revenue appropriated to the fund 
established by section 136.35, and use the proceeds together 
with other public or private money that may otherwise become 
available to acquire land, and to acquire, construct, complete, 
remodel, and equip structures to be used for dormitory, 
residence hall, student union, food service, and related parking 
purposes at the state universities.  Before issuing the bonds or 
any part of them, the board shall consult with and obtain the 
advisory recommendations of the chairs of the house 
appropriations committee and the senate finance committee about 
the facilities to be financed by the bonds. 
    Sec. 15.  Minnesota Statutes 1986, section 136.41, is 
amended by adding a subdivision to read: 
    Subd. 9.  The bonds authorized by this section may be 
issued without regard to whether the interest to be paid on them 
is includable in gross income for federal tax purposes.  
However, if it is intended that the interest on the bonds be 
exempt from federal income taxes, an officer of the board shall 
certify for the board on the date of issue the facts, estimates, 
and circumstances that lead the officer reasonably to expect 
that the proceeds of the bonds and the facilities financed by 
them will not be used to cause the interest on the bonds to be 
subject to federal income taxes; the board may covenant and 
agree with the holders of the bonds that it will comply with the 
provisions of the United States Internal Revenue Code now or 
hereafter enacted that do or may apply to the bonds and that 
establish conditions under which the interest to be paid on the 
bonds will not be subject to federal income taxes; and the 
officers of the board shall take the actions or refrain from 
taking the actions necessary to comply with the covenants.  
Money required to be spent to comply may be appropriated by the 
board from the fund established by section 136.35.  
    Sec. 16.  [137.0245] [REGENT CANDIDATE ADVISORY COUNCIL.] 
    Subdivision 1.  [ESTABLISHMENT.] A regent candidate 
advisory council is established to assist the legislature in 
determining criteria for, and identifying and recruiting 
qualified candidates for membership on the board of regents. 
    Subd. 2.  [MEMBERSHIP.] The regent candidate advisory 
council shall consist of 24 members.  Twelve members shall be 
appointed by the subcommittee on committees of the committee on 
rules and administration of the senate.  Twelve members shall be 
appointed by the speaker of the house of representatives.  No 
more than one-third of the members appointed by each appointing 
authority may be current or former legislators.  No more than 
two-thirds of the members appointed by each appointing authority 
may belong to the same political party; however, political 
activity or affiliation is not required for the appointment of 
any member.  Geographical representation must be taken into 
consideration when making appointments.  Section 15.0575 shall 
govern the advisory council, except that the members shall be 
appointed to six-year terms with one-third appointed each 
even-numbered year.  
    Subd. 3.  [DUTIES.] The advisory council shall: 
    (1) develop, in consultation with current and former 
regents and the administration of the University of Minnesota, a 
statement of the selection criteria to be applied and a 
description of the responsibilities and duties of a regent, and 
shall distribute this to potential candidates; and 
    (2) for each position on the board, identify and recruit 
qualified candidates for the board of regents, based on the 
background and experience of the candidates, and their potential 
for discharging the responsibilities of a member of the board of 
regents. 
    Subd. 4.  [RECOMMENDATIONS.] The advisory council shall 
recommend at least two and not more than four candidates.  By 
February 1 of each odd-numbered year, the advisory council shall 
submit its recommendations to the president of the senate and 
the speaker of the house of representatives.  The legislature 
shall not be bound by these recommendations.  
    Subd. 5.  [SUPPORT SERVICES.] The legislative coordinating 
commission shall provide administrative and support services for 
the advisory council. 
    Sec. 17.  [INITIAL TERMS.] 
    By September 1, 1988, each appointing authority shall 
appoint four members to terms that expire January 1990, four 
members to terms that expire January 1992, and four members to 
terms that expire January 1994. 
    Sec. 18.  [137.0251] [BUDGETARY INFORMATION.] 
    The board of regents of the University of Minnesota shall 
make available to the commissioner of finance all books, 
accounts, documents, and property that the commissioner desires 
to inspect. 
    Sec. 19.  Minnesota Statutes 1986, section 248.07, 
subdivision 7, is amended to read:  
    Subd. 7.  [BLIND, VENDING STANDS AND MACHINES ON 
GOVERNMENTAL PROPERTY.] Notwithstanding any other law, for the 
rehabilitation of blind persons the commissioner shall have 
exclusive authority to establish and to operate vending stands 
and vending machines in all buildings and properties owned or 
rented exclusively by the state university or community college 
systems or by any department or agency of the state of Minnesota 
except the department of natural resources properties operated 
directly by the division of state parks and not subject to 
private leasing.  The merchandise to be dispensed by such 
vending stands and machines may include soft drinks, (except 3.2 
beer), milk nonalcoholic beverages, food, candies, tobacco, 
souvenirs, notions and related items.  Such vending stands and 
vending machines herein authorized shall be operated on the same 
basis as other vending stands for the blind established and 
supervised by the commissioner under federal law.  The 
commissioner may shall waive this authority to displace any 
present private individual concessionaire in any state-owned or 
rented building or property who is operating under a contract 
with a specific renewal or termination date, until the renewal 
or termination date.  With the consent of the governing body of 
a governmental subdivision of the state, the commissioner may 
establish and supervise vending stands and vending machines for 
the blind in any building or property exclusively owned or 
rented by the governmental subdivision. 
    Sec. 20.  Minnesota Statutes 1987 Supplement, section 
248.07, subdivision 8, is amended to read:  
    Subd. 8.  [USE OF REVOLVING FUND, LICENSES FOR OPERATION OF 
VENDING MACHINES.] The revolving fund created by Laws 1947, 
chapter 535, section 5, is continued as provided in this 
subdivision and shall be known as the revolving fund for 
vocational rehabilitation of the blind.  It shall be used for 
the purchase of equipment and supplies for establishing and 
operating of vending stands by blind persons.  All income, 
receipts, earnings, and federal grants due to the operation 
thereof shall also be paid into the fund.  All interest earned 
on money accrued in the fund must be credited to the fund by the 
state treasurer.  All equipment, supplies, and expenses for 
setting up these stands shall be paid for from the fund.  
Authority is hereby given to the commissioner to use the money 
available in the revolving fund that originated as operational 
charges to individuals licensed under this subdivision for the 
establishment, operation, and supervision of vending stands by 
blind persons for the following purposes:  (1) purchase, upkeep 
and replacement of equipment; (2) purchase of initial and 
replacement stock of supplies and merchandise; (3) expenses 
incidental to the setting up of new stands and improvement of 
old stands; (4) purchase of general liability insurance as 
deemed advisable for any vending stand by the commissioner; 
(5) (3) reimbursement under section 15.059 to individual blind 
vending operators for reasonable travel and maintenance expenses 
incurred in attending supervisory meetings as called by the 
commissioner and other expenditures for management services 
consistent with federal law; (6) and (4) purchase of fringe 
benefits for blind vending operators and their employees such as 
group health insurance, retirement program, vacation or sick 
leave assistance provided that the purchase of any fringe 
benefit is approved by a majority vote of blind vending 
operators licensed pursuant to this subdivision after the 
commissioner provides to each blind vending operator information 
on all matters relevant to the fringe benefits.  Fringe benefits 
shall be paid only from assessments of operators for specific 
benefits, gifts to the fund for fringe benefit purposes, and 
vending income which is not assignable to an individual stand. 
    Money originally deposited as merchandise and supplies 
repayments by individuals licensed under this subdivision may be 
expended for initial and replacement stocks of supplies and 
merchandise.  Money originally deposited from vending income on 
federal property must be spent consistent with federal law. 
    All other deposits may be used for the purchase of general 
liability insurance or any other expense related to the 
operation and supervision of vending stands. 
    The commissioner shall issue each license for the operation 
of a vending stand or vending machine for an indefinite period 
but may terminate any license in the manner provided.  In 
granting licenses for new or vacated stands preference on the 
basis of seniority of experience in operating stands under the 
control of the commissioner shall be given to capable operators 
who are deemed competent to handle the enterprise under 
consideration.  Application of this preference shall not 
prohibit the commissioner from selecting an operator from the 
community in which the stand is located.  
    Sec. 21.  Minnesota Statutes 1986, section 248.07, 
subdivision 12, is amended to read:  
    Subd. 12.  [REIMBURSEMENT OUT OF STATE DISTRIBUTION OF 
BRAILLE AND SPECIAL MATERIALS.] The commissioner shall obtain 
reimbursement from other states for the estimated cost of 
providing radio signals, programming, and radio receivers for 
the blind and for production and handling of Braille books, 
audio tapes, and related services for the blind distributed by 
the department of jobs and training to users in such other 
states and may contract with the appropriate authorities of such 
states to effect such reimbursement.  All money received 
hereunder shall be paid to the state treasurer and placed in the 
general special revenue fund and is appropriated to the 
commissioner of jobs and training for the purposes of this 
subdivision.  
    Sec. 22.  Laws 1987, chapter 401, section 2, subdivision 6, 
is amended to read: 
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 and Minnesota 
residents graduating from optometry and 
osteopathy programs 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. 
    Sec. 23.  [FACULTY EXCHANGE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
exchange for the 1988-1989 academic year is established to allow 
school districts and post-secondary institutions to arrange 
temporary exchanges between members of their instructional 
staff.  These arrangements must be made on a voluntary, 
cooperative basis between the school district and the 
institution. 
    Subd. 2.  [USES OF PROGRAM.] Each participating school 
district and post-secondary institution may determine the way in 
which the instructional staff member's time is to be used, but 
it must be in a way that promotes understanding of the needs of 
each educational system.  A public school teacher might be used 
to teach courses, provide counseling and tutorial services, 
assist with the preparation of future teachers, or take 
professional development courses.  A post-secondary instructor 
might teach advanced placement courses or other classes to aid 
an underserved population at the school district, counsel 
students about future education plans, or work with teachers to 
better prepare students for post-secondary education.  
Participation need not be limited to one school or institution 
and may involve other groups including educational cooperative 
service units. 
    Subd. 3.  [SALARIES, BENEFITS, CERTIFICATION.] Exchanges 
made under the program must not have a negative effect on 
participants' salaries, seniority, or other benefits.  
Notwithstanding Minnesota Statutes, sections 123.35, subdivision 
6, and 125.04, a member of the instructional staff of a 
post-secondary institution may teach in an elementary or 
secondary school or perform a service, agreed upon according to 
this section, for which a license would otherwise be required 
without holding the applicable license.  In addition, a licensed 
employee of a school district may teach or perform a service, 
agreed upon according to this section, at a post-secondary 
institution without meeting the applicable qualifications of the 
post-secondary institution.  A school district is not subject to 
Minnesota Statutes, section 124.19, subdivision 3, as a result 
of entering into an agreement according to this section that 
enables a post-secondary instructional staff member to teach or 
provide services in the district.  All arrangements and details 
regarding the exchange must be mutually agreed to by the school 
district and post-secondary institution before implementation. 
    Subd. 4.  [REPORT OF PILOT PROGRAMS.] While these exchanges 
are voluntary, the legislature intends to maintain oversight to 
determine the benefits and problems of the program.  By February 
1, 1989, each post-secondary system shall submit a report about 
the faculty exchange program to the chairs of the house 
education, higher education, and appropriations committees and 
the senate education and finance committees.  The report shall 
contain the number of instructional staff participating in the 
exchange, areas of instruction, and other issues related to the 
exchange. 
    Sec. 24.  [LOANED EXECUTIVE ACTION PROGRAM (LEAP).] 
    Subdivision 1.  [PUBLIC SYSTEMS; JOINTLY.] The governing 
boards of the public post-secondary systems are requested to 
jointly establish a Loaned Executive Action Program to encourage 
business executives in the private sector to study management 
issues within each system and to make recommendations to improve 
the management structures and processes of each.  The heads of 
each system shall jointly report to the appropriations and 
finance committees on the actions taken under this section by 
January 15, 1989. 
    Subd. 2.  [CAMPUS BUDGET PROPOSALS.] A loaned executive 
working with the University of Minnesota should study the issue 
of preparing and presenting individual campus budget proposals 
to the board of regents. 
    Sec. 25.  [REGENT ACTION.] 
    The legislature requests that the board of regents of the 
University of Minnesota undertake the following actions to 
improve their management and accountability: 
    (1) establish a committee to plan for and oversee the needs 
and uses of the president's house; 
    (2) formally adopt policies for review of capital projects 
that specify when board approval is required, types and forms of 
information to be submitted to the board, and board procedures 
for cost overruns; 
    (3) develop an accurate and complete reporting system for 
capital projects in progress; and 
    (4) establish policies that improve the control over the 
use of unrestricted funds, including specification of approval 
and reporting requirements. 
    The board of regents shall report the actions taken under 
this section to the house appropriations and senate finance 
committees by January 1, 1989. 
    As part of its 1989 biennial budget presentation to the 
legislature, the University of Minnesota is requested to report 
its income and expenditures from all public and private sources. 
    Sec. 26.  [COMMUNITY SERVICE REPORTS.] 
    The public post-secondary systems shall report their 
actions, findings, and recommendations on community service 
opportunities to the house appropriations and senate finance 
committees by February 1, 1989. 
    Sec. 27.  [CHILD CARE REPORTS.] 
    Each public post-secondary system shall assess the effects 
of child care legislation on the needs of post-secondary 
students.  The report required by Laws 1988, chapter 439, shall 
include the assessment and recommendations of each system.  Each 
system shall also submit its assessment and recommendations to 
the senate finance and house appropriations committees by 
January 15, 1989. 
    Sec. 28.  [AMERICAN INDIAN EDUCATION REPORT.] 
    By February 1, 1989, each governing board shall report the 
actions it has taken to implement the provisions in this act 
relating to American Indian education.  The report shall be 
submitted to the house higher education and appropriations 
committees and the senate education and finance committees. 
    Sec. 29.  [REPEALER.] 
    Minnesota Statutes 1986, sections 136.26 and 136C.13, 
subdivision 3, are repealed. 
     Sec. 30.  [EFFECTIVE DATE.] 
    Sections 2, 6, 16, 17, 19, 20, 21, 23, 24, and 25 are 
effective the day following final enactment. 

                               ARTICLE 2 
    Section 1.  [APPROPRIATIONS FOR CAPITAL IMPROVEMENTS.] 
    The amounts in the column under "APPROPRIATIONS" are 
appropriated from the general fund to the state agencies 
indicated to be spent to acquire and to better public land and 
buildings and other public improvements of a capital nature, as 
specified in this article. 

                                SUMMARY
General Fund                                           $8,388,200
                                                   APPROPRIATIONS
     Sec. 2.  TECHNICAL INSTITUTES
     Subdivision 1.  To the state board
of vocational technical education for
the purposes specified in this section                 $2,697,000
     Subd. 2.  Post-secondary 
technical institute construction in
the school districts listed in this 
subdivision.                                 $1,697,000
(a) Special Intermediate School District
No. 917, Dakota County               $197,600
This appropriation is to purchase the 
former Rosemount city hall for child 
care.  The total cost of the project 
must not be more than $233,000, whether 
paid from state, local, or federal 
money. 
The board of regents of the University 
of Minnesota and the board of 
intermediate school district No. 917 
may negotiate a lease that provides 
land in the city of Rosemount for 
Special Intermediate School District 
No. 917, Dakota County, to develop a 
decision driving course.  The agreement 
must include only a nominal financial 
consideration that reflects the 
University's minimal expenditures to 
acquire and maintain the land. 
(b) Independent School District 
No. 656, Faribault                    313,700
 This appropriation is for the 
completion of the project authorized in 
Laws 1987, chapter 400, section 17, 
subdivision 2(h).  The total cost of 
the project must not be more than 
$2,022,000 whether paid from state, 
local, or federal money. 
(c) Independent School District 
No. 578, Pine City                    328,500
 This appropriation is for the 
completion of the project authorized in 
Laws 1987, chapter 400, section 17, 
subdivision 2(1).  The total cost of 
the project must not be more than 
$1,896,600, whether paid from state, 
local, or federal money. 
(d) Independent School District 
No. 256, Red Wing                     327,200
 This appropriation is to acquire land 
for buildings to consolidate the 
campuses of the Red Wing Technical 
Institute.  The total cost of the 
project must not be more than $385,000, 
whether paid from state, local, or 
federal money. 
(e) Joint Vocational Technical District
No. 900, Southwestern                 530,000
 This appropriation is for construction 
or remodeling of the following 
facilities on these respective campuses:
 Granite Falls for handicapped access 
Jackson for child care 
     Subd. 3.  Statewide parking              1,000,000
Projects undertaken must be those most 
in need of repair and should include 
the paving of existing parking lots not 
presently paved.  This money may be 
used for parking ramp modifications. 
     Subd. 4.  Repairs               
During the biennium ending June 30, 
1989, replacement of steam lines, sewer 
lines, and other such services that are 
less than five percent of the 
appropriation for repairs and 
replacements must be accomplished when 
needed from the repairs and 
replacements account. 
     Sec. 3.  COMMUNITY COLLEGES   
     Subdivision 1.  To the commissioner
of administration for the purposes
specified in this section                               2,791,200
     Subd. 2.  Minneapolis Community
College                                       1,011,200
This appropriation is added to the 
appropriation in Laws 1985, Special 
Session chapter 15, section 14, 
subdivision 3. 
     Subd. 3.  Systemwide                     1,780,000
(a) Roof repair, code compliance, 
and asbestos removal                1,600,000
During the biennium ending June 30, 
1989, replacement of steam lines, sewer 
lines, and other such services that are 
less than five percent of the 
appropriation for repairs and 
replacements must be accomplished when 
needed from the repairs and 
replacements account. 
(b) Systemwide planning               180,000
     Subd. 4.  Remodeling and 
construction 
 Appropriations authorized in Laws 1987, 
chapter 400, section 18, subdivision 2, 
may also be used for classroom 
remodeling and the relocation of 
administrative services. 
     Sec. 4.  STATE UNIVERSITIES
     Subdivision 1.  To the state
university board for the purposes
specified in this section                               2,900,000
     Subd. 2.  Mankato Campus 
Emergency lease of building space 
to accommodate enrollment growth                150,000
     Subd. 3.  Metropolitan Campus
Acquire site for consolidated
administrative and student center             1,300,000
 The board may enter into an option with 
the St. Paul Port Authority to acquire 
approximately one acre of land between 
Mounds Boulevard and Maria Avenue, 
along East Seventh Street, north of the 
existing B and C buildings at a maximum 
cost of $500,000 if the option is 
exercised at the time of the initial 
purchase; or a maximum of $600,000 if 
exercised within 18 months of the 
initial purchase; or a maximum of 
$650,000 if exercised within three 
years of the initial purchase. 
 The agreement for the acquisition must 
include a provision that the St. Paul 
Port Authority ensure that all 
buildings on the site are free from 
hazardous materials. 
 At the time the boilers are converted 
to low pressure steam, the state board 
may enter into an agreement with 
District Energy St. Paul Inc. for 
provision of steam heat, if the total 
cost of that heat does not exceed the 
estimated cost of receiving comparable 
services from another source.  
     Subd. 4.  Systemwide                     1,450,000
(a) Abate hazardous materials 
and remove PCBs                       100,000
(b) Roof repair                     1,350,000
(c) Repairs 
During the biennium ending June 30, 
1989, replacement of steam lines, sewer 
lines, and other such services that are 
less than five percent of the 
appropriation for repairs and 
replacements must be accomplished when 
needed from the repairs and 
replacements account. 
    Sec. 5.  [REVIEW OF PLANS.] 
    An agency to whom an appropriation is made in this article 
must not prepare final plans and specifications for any 
construction or major remodeling authorized by this article 
until the agency that will use the project has presented the 
program and schematic plans and cost estimates for all elements 
necessary to complete the project to the chair of the senate 
finance committee and the chair of the house appropriations 
committee and the chairs have made their recommendations.  The 
recommendations are advisory only.  Failure or refusal to make a 
recommendation promptly is considered a negative recommendation. 
    Sec. 6.  [APPROPRIATIONS FOR CONSTRUCTION; TRANSFER.] 
    Upon the awarding of final contracts for the completion of 
a project for construction or other permanent improvement 
authorized by this article, or upon the abandonment of the 
project, the agency to whom the appropriation is made in this 
article may transfer the unencumbered balance in the project 
account to another project enumerated in the same section.  The 
transfer must be made only to cover bids for the other project 
that were higher than was estimated when the appropriation for 
the other project was made and not to cover an expansion of the 
other project.  The money transferred under this section is 
appropriated for the purposes for which transferred.  For 
transfers by the state board of vocational technical education, 
the total cost of both projects and the required local share for 
both projects are adjusted accordingly.  The commissioners and 
boards shall report to the chair of the senate finance committee 
and the chair of the house appropriations committee before a 
transfer is made under this section. 
    Sec. 7.  [METHODS OF ACQUISITION.] 
    If money has been appropriated in this biennium to the 
commissioner of administration or the state university board to 
acquire lands or sites for public buildings or real estate, the 
acquisition may be by gift, purchase, or condemnation 
proceedings.  Condemnation proceedings must be under Minnesota 
Statutes, chapter 117. 
    Sec. 8.  [EFFECTIVE DATE.] 
    This article is effective the day following final enactment.
    Approved April 28, 1988