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

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1989 

                        CHAPTER 293-S.F.No. 1625 
           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 1988, sections 121.93, subdivisions 
          2, 3, and 4; 126.56, subdivision 5; 135A.05; 135A.06, 
          subdivision 3; 136.31, subdivisions 3 and 5; 136A.02, 
          subdivisions 5, 6, and 7; 136A.04; 136A.05; 136A.08; 
          136A.101, subdivisions 1, 7, and 8; 136A.121; 
          136A.131; 136A.132; 136A.134, subdivision 4; 136A.15, 
          subdivisions 1 and 7, and by adding a subdivision; 
          136A.16, subdivisions 1, 2, 5, 8, 9, and 10; 136A.162; 
          136A.17, subdivision 1; 136A.1701, subdivisions 1, 2, 
          and 5; 136A.172; 136A.173, subdivision 1; 136A.174; 
          136A.175, subdivision 4; 136A.176; 136A.177; 136A.178; 
          136A.179; 136A.233; 136A.26, subdivision 1a; 136A.29, 
          subdivision 9; 136A.69; 136C.04, subdivisions 1, 2, 6, 
          9, 10, and 18; 136C.042, subdivision 2; 136C.05, by 
          adding subdivisions; 136C.07, subdivision 4; 136C.075; 
          136C.08, subdivision 1; 136C.15; 136C.31, by adding a 
          subdivision; 136C.36; 136C.43, subdivision 1; 169.44, 
          subdivision 18; 275.125, subdivision 14a; 354.094, 
          subdivisions 1a and 1b; 354A.091, subdivision 1a; 
          355.46, subdivision 3; and Laws 1988, chapter 703, 
          article 1, section 23; proposing coding for new law in 
          Minnesota Statutes, chapters 135A and 136A; repealing 
          Minnesota Statutes 1988, sections 121.936, subdivision 
          1a; 136A.042; 136A.09; 136A.101, subdivision 6; 
          136A.111; 136A.121, subdivisions 1, 4, and 15; 
          136A.14; 136A.141; 136A.142; 136A.225; 136A.51; 
          136A.52; 136A.53; 136A.55; 136C.07, subdivisions 1, 2, 
          3, and 6; 136C.21; 136C.211; 136C.212; 136C.213; 
          136C.22; 136C.221; 136C.222; 136C.223; 136C.25; 
          136C.26, subdivisions 1, 3, 4, 5, 6, 7, and 9; 
          136C.27, subdivision 2; 136C.28, subdivisions 1 and 2; 
          136C.29; 136C.33, subdivisions 1 and 2; 136C.42; 
          136C.43, subdivisions 1, 2, and 3; 256H.07; and 
          256H.13. 
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.  The 
listing of an amount under the figure "1989," "1990," or "1991" 
in this act indicates that the amount is appropriated to be 
available for the fiscal year ending June 30, 1989, June 30, 
1990, or June 30, 1991, respectively.  "The first year" is 
fiscal year 1990.  "The second year" is fiscal year 1991.  "The 
biennium" is fiscal years 1990 and 1991. 

                            SUMMARY BY FUND 
                       1990           1991           TOTAL   
General            $943,318,000 $1,014,642,000 $1,957,960,000

                     SUMMARY BY AGENCY - ALL FUNDS
                       1990           1991           TOTAL
Higher Education Coordinating Board
                   $ 83,593,000   $ 96,453,000   $180,046,000
State Board of Vocational Technical Education
                    165,952,000    174,050,000    340,002,000
State Board for Community Colleges
                     88,147,000     99,600,000    187,747,000
State University Board
                    167,401,000    179,204,000    346,605,000
Board of Regents of the University of Minnesota
                    437,191,000    464,254,000    901,445,000
Mayo Medical Foundation
                      1,034,000      1,081,000      2,115,000
                                         APPROPRIATIONS
                                      Available for the Year
                                          Ending June 30
                                          1990         1991
     Sec. 2.  HIGHER EDUCATION 
COORDINATING BOARD   
     Subdivision 1.  Total 
Appropriation                          $83,593,000   $96,453,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
As part of its next budget request, the 
board shall report on its method of 
implementing the base adjustments 
required in this section. 
     Subd. 2.  Agency Administration 
  $3,900,000    $2,972,000 
 (a) The optometry and osteopathy 
contract program for students who were 
in the program in the 1986-1987 
academic year must be discontinued on 
June 30, 1990.  No new students may be 
admitted. 
(b) As part of its 1991 biennial budget 
request, the HECB shall report its 
recommendations for improvements to the 
SELF program. 
 (c) Notwithstanding Laws 1987, chapter 
401, section 33, the task force on 
post-secondary quality assessment may 
continue for the 1989-1991 biennium. 
The task force membership may be 
expanded to include public members 
appointed by the higher education 
advisory council from nominees 
submitted by the HECB. 
 (d) No further funding of the 
enterprise development centers shall be 
provided through the HECB.  The Greater 
Minnesota Corporation may provide 
funding for the centers. 
 (e) $150,000 for the biennium is for 
matching grants to post-secondary 
institutions that submit acceptable 
proposals for campus community service 
projects emphasizing students 
performing as tutors or mentors to 
their younger peers.  Campus community 
service projects attempt to instill in 
students the value of civic involvement 
and the belief that each student's 
community service can make a difference 
in the community.  The HECB may award 
up to 20 grants.  To receive a grant, a 
recipient must match the grant amount 
from any resources available to the 
institution.  The state grant is for a 
staff person on each recipient's campus 
to coordinate student community service 
involvement.  Up to $25,000 of the 
appropriation may be used for HECB 
administration, coordination, training, 
consultation, and evaluation costs.  
The legislature intends the grant 
program to be phased out at the end of 
the biennium to be replaced by 100 
percent funding by the recipient 
institutions from any resources 
available to the institution.  
(f) The HECB shall undertake the second 
phase of the study of post-secondary 
needs in the state, as provided in Laws 
1988, chapter 703, article 1, section 
2, subdivision 3.  This phase must 
concentrate on those parts of the state 
outside the St. Cloud to Rochester 
population corridor.  The HECB may 
contract for portions of the study, as 
necessary, but is not subject to 
Minnesota Statutes, chapter 16B.  
Before proceeding with the request for 
proposals, the HECB shall consult with 
the post-secondary systems, 
institutions, and other relevant 
agencies to locate studies and market 
analyses that could be used in 
conducting phase 2.  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, quality of education, 
and system and institutional missions. 
The study should include consideration 
of at least the following concerns:  
the current and projected demographic 
and participation trends; current 
levels and types of services available; 
needs of traditional and nontraditional 
students; the geographical 
accessibility of services needed by 
different types of students; uses of 
alternative delivery systems, 
instructional technology, cooperative 
efforts, and reciprocity agreements; 
relationships between post-secondary 
institutions and business; and the 
physical capacity of existing 
institutions.  The study shall analyze 
attendance patterns and may include 
market surveys.  The HECB shall report 
the findings of the study to the 
education and finance committees of the 
senate and the education and 
appropriations committees of the house 
by December 1, 1990.  By January 1, 
1991, the HECB shall review and comment 
on each of the strategies proposed in 
the study.  In submitting the findings 
of phase 2, the board shall relate them 
to the results of phase 1 and their 
implications for statewide policy. 
The study shall serve as the 1990 
intersystem plan as required in 
Minnesota Statutes, section 135A.06, 
subdivision 2. 
 (g) The HECB shall analyze and make 
recommendations on plans submitted for 
providing undergraduate and 
practitioner-oriented graduate programs 
in the seven-county metropolitan area.  
By February 1, 1990, the HECB shall 
report on its recommendations to the 
education and finance committees of the 
senate and the education and 
appropriations committees of the house. 
     Subd. 3.  State Scholarships and 
Grants 
  $69,044,000   $82,644,000 
 If the appropriation in this 
subdivision for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 During the biennium, the higher 
education coordinating board may ask 
the commissioner of finance to loan 
general fund money to the scholarship 
and grant account to ease cash flow 
difficulties.  The higher education 
coordinating board 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 the higher 
education coordinating board.  
 This appropriation contains money for 
increasing living allowances for state 
scholarships and grants to $3,170 for 
the first year and $3,465 for the 
second year. 
$2,000,000 each year is for child care 
grants.  For the biennium, the board 
may determine a reasonable percentage 
of the appropriation to be used for the 
administrative costs of the agency and 
the campuses. 
The HECB shall report to the education 
divisions of the house appropriations 
and senate finance committees on the 
academic progress and persistence of 
state scholarship and grant program 
recipients by February 1, 1990. 
The HECB shall examine and make 
recommendations on the use of 
post-secondary scholarships and other 
mechanisms to provide incentives to 
students to pursue International 
Baccalaureate degrees.  In making its 
recommendations, the HECB shall include 
an analysis of the cost of a 
scholarship program and whether these 
scholarships would be an appropriate 
use of state funds. 
The HECB may use up to $250,000 of the 
appropriation in each year to provide 
grants for Minnesota resident students 
participating in the Akita program.  
Grants must be awarded on the same 
basis as other state grants, except 
that the cost of attendance shall be 
adjusted to incorporate the state 
university tuition level and the Akita 
fee level.  An individual grant must 
not exceed the state grant maximum 
award for a student at a four-year 
private college.  The HECB and the 
state university board shall report on 
these grants in the 1991 biennial 
budget document. 
By February 15, 1990, the HECB shall 
report to the education divisions of 
the senate finance and the house 
appropriations committees on 
implementation of procedures to recover 
overpayment of state scholarship and 
grant awards.  The report shall cover 
overpayments for the 1988-1989 academic 
year and shall include at least the 
following information for each case for 
which recovery of an overpayment is 
sought: 
(1) the reason for the overpayment; 
(2) the manner in which the overpayment 
was discovered; 
(3) the amount of the overpayment; 
(4) the recovery plan proposed by the 
HECB; 
(5) whether the case was brought to 
court and, if so, 
 (a) why the case was brought to court, 
 (b) the cost to the HECB of bringing 
the case to court, and 
 (c) whether the HECB recovered costs 
and attorney fees; and 
(6) the disposition, including the 
amount of the overpayment recovered and 
the amount of time elapsed from the 
time the overpayment was discovered to 
the time a repayment agreement was 
reached. 
The report shall not include any 
information identifying the students 
involved. 
     Subd. 4.  Interstate Tuition
Reciprocity 
  $ 4,300,000   $ 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 
  $ 5,304,000   $ 5,454,000 
     Subd. 6.  Income Contingent Loans 
 The HECB shall administer an income 
contingent loan repayment program to 
assist graduates of Minnesota schools 
in medicine, dentistry, pharmacy, 
chiropractic medicine, public health, 
and veterinary medicine, and Minnesota 
residents graduating from optometry and 
osteopathy programs.  During the 
biennium, applicant data collected by 
the higher education coordinating board 
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 
Minnesota Statutes, section 136A.162.  
 The HECB shall study the possible 
inclusion of students in other academic 
programs and report its recommendations 
to the house appropriations and senate 
finance committees by December 1, 1990. 
     Subd. 7.  Minitex Library Program 
  $ 1,045,000   $ 1,083,000 
     Subd. 8.  An unencumbered balance 
in the first year under a subdivision 
in this section does not cancel but is 
available for the second year.  
     Subd. 9.  The higher education 
coordinating board may transfer 
unencumbered balances from the 
appropriations in this section to the 
state scholarship and grant appropriation. 
Before the transfer, the higher education 
coordinating board shall consult with the 
chairs of the house appropriations and 
senate finance committees. 
     Sec. 3.  STATE BOARD OF VOCATIONAL 
TECHNICAL EDUCATION 
     Subdivision 1.  Total 
Appropriation                         165,952,000  174,050,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
As part of its next budget request, the 
board shall report on its method of 
implementing the base adjustments 
required in this section. 
     Subd. 2.  Instructional Expenditures
 The legislature estimates that 
instructional expenditures will be 
$219,519,000 the first year and 
$230,472,000 the second year. 
$1,570,000 in the first year and 
$1,589,000 in the second year are for 
equipment purchases.  This money must 
be spent for this purpose only and is 
nonrecurring.  The state board shall 
report on its use in the 1991 biennial 
budget document. 
$3,458,000 in 1990 and $3,613,000 in 
1991 are for repair and replacement.  
The state board shall report on its use 
in the 1991 biennial budget document.  
The report must include an analysis of 
the adequacy of the amounts for repair 
and replacement in meeting the system's 
repair and replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government that is less than 
five percent of the amounts for repair 
and replacement may be paid when due by 
the board.  
$2,000,000 the first year and 
$3,600,000 the second year are to 
improve student support services 
including, but not limited to:  
remedial programs and needs assessment, 
counseling and financial aid services, 
and minority student services.  The 
money is also available for library 
development and improvement.  The state 
board shall report on its use in the 
1991 biennial budget document. 
$500,000 each year is for salaries, 
equipment, and supplies to improve 
services for disabled students.  This 
appropriation must be spent for these 
purposes only.  The board shall report 
on its use in the 1991 biennial budget 
document. 
The state board of vocational technical 
education shall report to the education 
divisions of the house appropriations 
and senate finance committees on its 
newly developed student placement 
tracking system by February 1, 1990. 
     Subd. 3.  Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$6,474,000 the first year and 
$6,263,000 the second year. 
 $3,547,000 the first year and 
$3,248,000 the second year are for debt 
service payments to school districts 
for technical institute buildings 
financed with district bonds issued 
before January 1, 1979. 
 $2,000,000 each year is for curriculum 
restructuring.  This is a nonrecurring 
appropriation and will not be included 
to calculate the base for the 1991-1993 
biennial budget. 
     Subd. 4.  State Council on Vocational 
Technical Education 
 $94,500 the first year and $49,200 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                           88,147,000    99,600,000
 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 
instructional expenditures will be 
$118,925,000 the first year and 
$134,939,000 the second year. 
 This appropriation includes $5,483,000 
the first year and $4,407,000 the 
second year for increased enrollments.  
This is a nonrecurring appropriation 
and will not be included when 
calculating the base for the 1991-1993 
biennial budget.  This appropriation is 
based on estimated enrollments of 
32,000 in 1990 and 33,500 in 1991.  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 the next fiscal year. 
$1,280,000 the first year and 
$1,340,000 the second year are for 
equipment purchases.  This 
appropriation must be spent for this 
purpose only and is nonrecurring.  The 
board shall report on its use in the 
1991 biennial budget document. 
$1,582,000 in 1990 and $1,639,000 in 
1991 are for repair and replacement.  
The board shall report on its use in 
the 1991 biennial budget document.  The 
report must include an analysis of the 
adequacy of the amounts for repair and 
replacement in meeting the system's 
repair and replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government that is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
The community college system shall 
examine the feasibility, costs, and 
effects of implementing a textbook 
rental system on its campuses.  The 
findings shall be reported to the 
education divisions of the house 
appropriations and senate finance 
committees by February 15, 1990. 
     Subd. 3.  Noninstructional 
Expenditures
 The legislature estimates that 
noninstructional expenditures will be 
$11,968,000 the first year and 
$12,482,000 the second year. 
     Subd. 4.  State Owned Land
 State owned land at Worthington 
Community College legally described as 
lots 1, 2, 5, 6, and 7, block 1, Golden 
Shores addition, in the city of 
Worthington, county of Nobles, shall be 
tax exempt until sold.  Taxes levied on 
the land prior to the effective date of 
this provision must be abated. 
     Sec. 5.  STATE UNIVERSITY BOARD 
     Subdivision 1.  Total 
Appropriation                          167,401,000   179,204,000
 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 
instructional expenditures will be 
$237,324,000 the first year and 
$253,469,000 the second year. 
 $4,965,000 the first year and 
$1,944,000 the second year are for 
increased enrollments.  This is a 
nonrecurring appropriation and will not 
be included when calculating the base 
for the 1991-1993 biennial budget.  
This appropriation is based on 
estimated enrollments of 51,735 in 1990 
and 51,998 in 1991.  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 
the next fiscal year. 
$2,069,000 the first year and 
$2,080,000 the second year are for 
equipment purchases.  This 
appropriation must be spent for this 
purpose only and is nonrecurring.  The 
board shall report on its use in the 
1991 biennial budget document. 
$2,928,000 in 1990 and $3,046,000 in 
1991 are for repair and replacement.  
The board shall report on its use in 
the 1991 biennial budget document.  The 
report must include an analysis of the 
adequacy of the amounts for repair and 
replacement in meeting the system's 
repair and replacement needs.  
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government that is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
 The legislature estimates that $150,000 
each year will be spent at Mankato 
State University for payment of a lease 
for the Warren Street Building.  The 
appropriation must be discontinued upon 
expiration of the lease or subsequent 
lease.  The current lease expires in 
1993, but may be renegotiated to expire 
in 2013.  The budget request for 1991 
must separately identify this item.  
 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 plan or develop doctoral level 
programs or degrees until after they 
have received the recommendation of the 
house and senate committees on 
education, finance, and appropriations. 
 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 science and technology resource 
center.  
     Subd. 3.  Noninstructional 
Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$10,697,000 the first year and 
$10,897,000 the second year. 
 During the biennium, notwithstanding 
any law to the contrary, the state 
university board may keep 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 must 
be kept by the board to the credit of 
the account from which the litigation 
was originally funded. 
 $200,000 each year is for development 
of the upper division component within 
the Arrowhead Community College Region 
through Bemidji State University.  The 
specific location or locations will be 
determined by the community college and 
state university boards.  The budget 
request for 1991 must separately 
identify this program. 
$100,000 is for the board to enter into 
an agreement to lease space on the 
campus of the College of St. Teresa for 
the instructional needs of Winona State 
University.  The board shall analyze:  
(1) the current space use at Winona 
state; (2) the cost to bring the St. 
Teresa buildings up to code; (3) the 
cost to renovate the St. Teresa campus 
for long-term use; and (4) the 
comparative costs to operate a split 
campus.  The board shall report its 
findings and recommendations to the 
education divisions of the 
appropriations and finance committees 
by February 1, 1990.  
 $170,000 is for the board to provide 
nursing education outreach programs.  
The programs must assess and give 
credit to students for prior learning, 
provide for part-time enrollment, and 
be located in regions of the state that 
demonstrate the greatest need for 
baccalaureate and masters degree 
programs.  The appropriation for this 
program shall be nonrecurring.  The 
board shall appoint a task force, 
including representatives of other 
post-secondary systems that offer 
nursing programs, to advise it on the 
programs.  The task force shall study 
the need for and supply of nurses and 
the adequacy of access to nursing 
programs.  The task force may seek 
nonstate grants or gifts to establish a 
private scholarship program for 
nurses.  The HECB, if requested, shall 
provide technical advice to the task 
force on the effects of private 
scholarships on state financial aid.  
The task force shall make 
recommendations to the board on the 
scholarship program, including sources 
of funding, eligibility requirements 
for recipients, and methods of 
calculating award amounts. The task 
force shall make recommendations, as 
necessary, on other policy matters 
concerning nursing education. The board 
shall report on the nursing programs in 
the 1991 biennial budget document.  
     Subd. 4.  Wood-Fired Boilers 
 Effective the day after final enactment 
of this subdivision, no more money may 
be paid out of the treasury of this 
state in connection with an agreement 
under Minnesota Statutes, section 
16B.16, to provide a wood-fired boiler 
heating system at the campus of either 
Bemidji State University or St. Cloud 
State University.  This prohibition is 
intended to be permanent. 
 Minnesota Statutes, section 16B.16, 
authorizes the commissioner of 
administration to enter into 
installment purchase agreements to 
acquire equipment that will improve the 
energy efficiency of a state building 
or facility if, among other things, the 
entire cost of the contract is a 
percentage of the resultant savings in 
energy costs and the state may 
unilaterally cancel the agreement if 
the legislature fails to appropriate 
funds to continue the contract.  
Section 16B.16 does not authorize the 
commissioner to commit the state to pay 
for equipment that does not work nor to 
pay more for energy as a result of the 
installment purchase agreement than 
would be needed without the agreement.  
If there are no savings in energy costs 
through use of the equipment, there 
should be no compensation due under the 
agreement. 
 The commissioner of administration 
acted under Minnesota Statutes, section 
16B.16, when entering into installment 
purchase agreements to install 
wood-fired boiler heating systems at 
the campuses of Bemidji State 
University and St. Cloud State 
University.  The wood-fired boiler 
heating system installed at the Bemidji 
campus did not work as promised and the 
promised energy savings were not 
achieved.  The state refused to make 
further payments under the agreement 
for Bemidji and canceled the agreement 
for St. Cloud.  The state later resumed 
making payments under the agreement for 
Bemidji, even though it believed there 
had been a complete failure of 
consideration. 
 The purpose of this subdivision is to 
make clear to all potential investors 
in state and local bonds and to 
financial institutions that the state 
is not and never has been responsible 
for financing the wood-fired boiler 
heating systems at Bemidji and St. 
Cloud state universities, other than 
through payment to the vendor of a 
percentage of the resultant savings in 
energy costs.  Since the equipment and 
technology chosen by the vendor did not 
produce savings in energy costs, the 
entire loss should be borne by the 
vendor and by the vendor's financial 
backers, not by the state.  
     Sec. 6.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA
     Subdivision 1.  Total 
Appropriation                          437,191,000   464,254,000 
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Operations and 
Maintenance                            355,025,000   377,571,000
 On December 1 each year the president 
of the University of Minnesota shall 
report to the senate finance and house 
appropriations committees and the 
commissioner of finance any receipts 
for the previous fiscal year in excess 
of the estimates on which these 
appropriations are based, the sources 
of these receipts, the purposes for 
which any excess receipts were spent, 
and the accounts to which the receipts 
were transferred.  The total estimated 
receipts are $138,842,000 for the first 
year and $147,367,000 for the second 
year.  
The board of regents is requested to 
consider adopting a policy of paying 
per diem to board members for attending 
a meeting of the board or a committee 
of the board. 
 (a) Instructional Expenditures 
 The legislature estimates that 
instructional expenditures in this 
subdivision and subdivision 3, 
paragraph (d), will be $388,921,000 the 
first year and $413,941,000 the second 
year. 
$2,145,000 the first year and 
$2,086,000 the second year are for 
equipment purchases.  This 
appropriation must be spent for this 
purpose only and is nonrecurring.  The 
board shall report on its use in the 
1991 biennial budget document. 
$8,992,000 in 1990 and $9,345,000 in 
1991 are for repair and replacement.  
The board shall report on its use in 
the 1991 biennial budget document.  The 
report must include an analysis of the 
adequacy of the above appropriation in 
meeting the system's repair and 
replacement needs. 
 During the biennium, each outstanding 
and any future assessment by a local 
unit of government that is less than 
five percent of the appropriation for 
repairs and replacements may be paid 
when due by the board.  
$3,307,000 in 1990 and $5,601,000 in 
1991 are for the improvement of 
instructional programs including, but 
not limited to:  additional sections of 
required undergraduate courses; 
expanded undergraduate advising; and 
enhanced academic computing 
capabilities.  The board shall report 
its use in the 1991 biennial budget 
document. 
 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. 
 The regular session enrollment 
projected for this appropriation is 
35,679 full-year equivalent 
undergraduate students for the first 
year.  For the biennium ending June 30, 
1991, tuition income resulting from 
students in excess of the projections 
reduces the general fund appropriation 
by a like dollar amount.  The 
university shall submit progress 
reports on the attainment of the 
anticipated enrollments.  If the 
university attains these enrollment 
goals, the calculation for the average 
cost funding formula must not reduce 
the budget base.  The University is 
requested to develop mechanisms to 
measure progress in achieving the goals 
of commitment to focus, including 
enrollment targets.  The University 
shall report its recommendations to the 
education divisions of the house 
appropriations and senate finance 
committees by December 1, 1989. 
During the biennium, the regents are 
requested to provide fair and equitable 
funding to each coordinate campus for 
the additional number of students 
enrolled above the 1988-1989 academic 
year enrollment. 
 (b) Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$105,676,000 the first year and 
$111,836,000 the second year. 
$129,000 in 1990 and $167,000 in 1991 
are to establish a training program for 
teaching assistants to improve their 
communications and teaching skills.  
The legislature anticipates that the 
university will allocate matching money 
internally to support teaching 
assistant programs.  The university 
shall report on its actions and its use 
in the 1991 biennial budget document. 
 Indirect cost recovery money retained 
by the University of Minnesota must be 
used exclusively for the direct support 
of research or the financing of support 
activities directly contributing to the 
receipt of indirect cost recovery 
money.  It may not be used for teaching 
or service.  
     Subd. 3.  Special 
 Appropriations                         82,166,000   86,683,000
 The amounts expended for each program 
in the four categories of special 
appropriations shall be separately 
identified in the 1991 biennial budget 
document. 
(a) Agriculture and Extension Service 
  $42,844,000   $45,002,000 
 This appropriation is for the 
Agriculture Research and Minnesota 
Extension Service.  
 Any salary increases granted by the 
university to personnel paid from the 
Minnesota Extension appropriation must 
not result in a reduction of the county 
portion of the salary payments.  
 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.  
(b) Health Sciences 
  $16,332,000   $17,379,000 
 This appropriation is for Indigent 
Patients (County Papers), Rural 
Physicians Associates Program, Medical 
Research, Special Hospitals Service and 
Educational Offset, the Veterinary 
Diagnostic Laboratory, Institute for 
Human Genetics, and the Biomedical 
Engineering Center.  
(c) Institute of Technology 
  $ 3,472,000   $ 3,645,000    
 This appropriation is for the Mineral 
Resources Research Center, Geological 
Survey, Underground Space Center, 
Talented Youth Mathematics Program, 
Microelectronics and Information 
Science Center, and the Productivity 
Center.  
(d) System Specials 
  $19,518,000  $20,657,000 
 This appropriation is for Fellowships 
for Minority and Disadvantaged 
Students, General Research, 
Intercollegiate Athletics, Student 
Loans Matching Money, Industrial 
Relations Education, Southeast 
Education Center, Natural Resources 
Research Institute, Sea Grant College 
Program, Biological Process Technology 
Institute, Supercomputer Institute, 
Center for Urban and Regional Affairs, 
Museum of Natural History, and the 
Humphrey Exhibit. 
 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.  The women's athletic program 
shall be funded by the formula 
allowance or a minimum of $65,000 per 
campus per year.  Each campus will 
receive the greater of the two 
calculations.  
 Of this appropriation, no less than the 
following amounts must be allocated to 
each campus: 
  Duluth      540,800  551,600 
  Morris       65,000   66,100 
  Crookston    65,000   65,000 
  Waseca       65,000   65,000 
 The legislature estimates that 
$1,087,000 in 1990 and $1,252,000 in 
1991 is for enhanced and expanded 
graduate programs in Rochester. 
     Subd. 4.  The appropriation 
in subdivision 3, paragraph (d), 
for the Southeast Education Center, 
must be merged with the operations 
and maintenance funding in subdivision 
2 in fiscal years 1990 and 1991.  
     Subd. 5.  University of Minnesota, 
Waseca
 The appropriation in Laws 1987, chapter 
400, section 20, subdivision 8, 
paragraph (a), to renovate the 
agriculture laboratories at Waseca, may 
also be used to construct a greenhouse. 
     Sec. 7.  MAYO MEDICAL FOUNDATION 
     Subdivision 1.  Total 
Appropriation                            1,034,000    1,081,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
     Subd. 2.  Medical School 
  $   753,000   $   790,000 
 The state of Minnesota shall pay a 
capitation of $9,410 the first year and 
$9,875 the second year 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  
  $   281,000   $   291,000 
 The state of Minnesota shall pay a 
capitation of $15,610 the first year 
and $16,165 the second year for a 
maximum of 18 students each year. 
    Sec. 8.  POST-SECONDARY SYSTEMS 
     Subdivision 1.  Base Level Adjustments
In preparing budget requests for the 
1992-1993 biennium, the commissioner of 
finance shall make the same categories 
of base level adjustments, when 
reasonable and equitable, to the 
budgets of higher education systems as 
to the budgets of state agencies.  The 
amounts and the purposes must be 
delineated in the 1991 biennial budget 
document. 
     Subd. 2.  Enrollment Growth 
Each public post-secondary governing 
board experiencing or anticipating 
enrollment growth on one or more of its 
campuses, or sufficient programmatic 
growth to result in significant course 
or space availability problems, shall 
plan for responding to the growth while 
maintaining educational quality.  These 
plans shall include an examination of 
efficient utilization of existing 
instructional space.  The boards shall 
provide a preliminary report on these 
plans and on their recruitment plans 
and expenditures to the education 
divisions of the house appropriations 
and senate finance committees by 
September 1, 1989, and a final report 
by February 1, 1990. 
     Subd. 3.  BOAST
In order to recognize student talent 
and the outstanding work of art and 
art-related departments on campuses of 
the four public post-secondary systems, 
the Minnesota House of Representatives 
intends to begin a program to reward 
these achievements.  The program, 
entitled Bring Out Art Students' Talent 
(BOAST), will reward winners of campus 
art competitions by displaying their 
art in the state office building.  The 
speaker of the house shall appoint, by 
July 1, 1989, a select committee to 
develop procedures and oversee the 
process.  Before appointing the 
committee, the speaker shall invite the 
senate to participate in the process.  
If the senate chooses to participate, 
after consultation with the Capitol 
Area Architectural and Planning Board, 
and the Minnesota Historical Society, 
it may determine whether to display any 
of the art in the state capitol.  The 
heads of each of the public 
post-secondary systems are requested to 
consult with the committee and 
coordinate the efforts of the 
campuses.  Each campus may hold a 
competition and select the entries that 
are to be displayed.  The campus shall 
arrange for the delivery, set up, and 
removal of the displays according to 
the procedures developed by the select 
committee. 
     Subd. 4.  Student Progress
The public post-secondary governing 
boards and the HECB shall study 
mechanisms to encourage students to 
complete their educational programs in 
a timely manner.  The governing boards 
shall study the use of tuition banding 
and other mechanisms to provide 
incentives for students to carry full 
credit loads.  The boards shall also 
study nonfinancial impediments to 
students completing programs within two 
or four years.  These may include 
unavailability of courses, expanded 
programmatic requirements, students' 
lack of preparation for college, 
changes in values and attitudes, and 
other factors identified by the 
boards.  The boards shall examine ways 
to reduce or eliminate these 
impediments. 
The HECB shall study the fiscal and 
policy effects of mechanisms to 
encourage students to carry full course 
credit loads, to enroll in summer 
sessions, or to otherwise complete 
their coursework in a timely manner.  
The board shall include an examination 
of:  the effects of changing the credit 
load in the state grant program to 
define a full-time student as one 
averaging 15 credits per term each 
year, and prorating awards on that 
credit basis; the availability of 
summer financial aid; and other 
incentives that it identifies.  The 
governing boards shall report their 
findings to the HECB for review and 
comment by January 15, 1990.  The HECB 
shall report the findings of its study, 
the governing board findings and the 
HECB review and comment by March 1, 
1990 to the education divisions of the 
house appropriations and senate finance 
committees. 
    Subd. 5.  Student Preparation 
In order to increase students' academic 
preparation for higher education, and 
to decrease the need for remedial work 
in post-secondary institutions, the 
state university board, the community 
college board, and the state board for 
vocational technical education shall 
study and make recommendations on the 
effects of adopting secondary school 
preparation requirements for incoming 
students.  Each board shall report its 
findings to the education divisions of 
the house appropriations and senate 
finance committees by February 1, 1990. 
      Subd. 6.  Student Placement 
The state board for community colleges, 
the state university board, and private 
post-secondary occupational and 
technical institutions that enroll 
students who receive state financial 
aid shall develop student placement 
tracking systems for their technical 
and occupational programs, or review 
tracking systems already in place, to 
enable them to determine the number of 
students placed successfully in 
occupations related to their 
education.  The board of regents of the 
University of Minnesota is requested to 
develop a similar system, or review its 
current system, for its technical 
programs at the Crookston and Waseca 
campuses.  The HECB shall coordinate 
the development and review of the 
tracking systems and shall report on 
them to the education divisions of the 
house appropriations and senate finance 
committees and the higher education 
divisions of the education committees 
by February 15, 1990. 
    Sec. 9.  Minnesota Statutes 1988, section 121.93, 
subdivision 2, is amended to read: 
    Subd. 2.  "District" means a school district, an 
educational cooperative service unit, a cooperative center for 
secondary vocational education, a cooperative center for special 
education, a technical institute, or an intermediate service 
area.  
    Sec. 10.  Minnesota Statutes 1988, section 121.93, 
subdivision 3, is amended to read: 
    Subd. 3.  "ESV-IS" or "elementary, secondary, and secondary 
vocational education management information system" means that 
component of the statewide elementary, secondary, and secondary 
vocational education management information system which 
provides administrative data processing and management 
information services to districts.  
    Sec. 11.  Minnesota Statutes 1988, section 121.93, 
subdivision 4, is amended to read: 
    Subd. 4.  "SDE-IS" or "state department of education 
information system" means that component of the statewide 
elementary, secondary, and secondary vocational education 
management information system which provides data processing and 
management information services to the department of education.  
    Sec. 12.  Minnesota Statutes 1988, section 126.56, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
assist the state board of education in approving eligible 
programs and shall assist the higher education coordinating 
board in planning, implementing, and evaluating the scholarship 
program.  The committee shall consist of 11 members, to include 
the executive director of the higher education coordinating 
board or a representative, the commissioner of education or a 
representative, two secondary school administrators and two 
secondary teachers appointed by the commissioner of education, 
the executive director of the academic excellence foundation, a 
private college representative appointed by the president of the 
Minnesota private college council, a community college 
representative appointed by the community college chancellor, a 
state university representative appointed by the state 
university chancellor, and a University of Minnesota 
representative appointed by the president of the University of 
Minnesota.  The committee expires as provided in section 15.059, 
subdivision 5 June 30, 1993. 
    Sec. 13.  Minnesota Statutes 1988, section 135A.05, is 
amended to read: 
    135A.05 [TASK FORCE.] 
    The executive director of the Minnesota higher education 
coordinating board shall administer a task force on average cost 
funding.  The task force shall include representation from each 
of the public systems of post-secondary education, 
post-secondary students, the education division of the house 
appropriations committee, the education subcommittee of the 
senate finance committee, the office of the commissioner of 
finance, the office of state auditor, and the uniform financial 
accounting and reporting advisory council.  The task force shall 
be convened and chaired by the executive director or a designee 
and staffed by the higher education coordinating board.  The 
task force shall review and make recommendations on the 
definition of instructional cost in all four systems, the method 
of calculating average cost for funding purposes, the method 
used to assign programs to the proper level of cost at each 
level of instruction, the adequacy of the accounting data for 
defining instructional cost in a uniform manner, and the 
biennial budget format to be used by the four systems in 
submitting their biennial budget requests.  The task force shall 
submit a report on these matters to the legislature by December 
1 of each odd-numbered year.  The task force expires as provided 
in section 15.059, subdivision 6 June 30, 1993. 
    Sec. 14.  Minnesota Statutes 1988, section 135A.06, 
subdivision 3, is amended to read: 
    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: 
    (1) a statement of program priorities for undergraduate, 
graduate, and professional education, including data about 
program cost and average class size within each institution; 
    (2) the effects of proposed programmatic and enrollment 
changes on other systems and campuses; 
    (3) a review of plans for adjusting the number of 
facilities, staff, and programs to projected level of demand, 
including consideration of campus and program mergers, campus 
and program closings, new governance structures, the 
relationship between fixed costs and projected enrollment 
changes, and consolidation of institutions, services, and 
programs that serve the same geographic area under different 
governing boards; 
    (4) a review of the current and projected use of community 
outreach and extension programs including information on all 
off-campus sites; 
    (3) (5) enrollment projections for two, five, and ten years 
based on recent available projections produced by the higher 
education coordinating board or, 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; 
    (4) (6) estimated financial costs and savings of 
alternative plans for adjusting facilities, staff, and programs 
to declining changing enrollments and fiscal resources; 
    (5) (7) opportunities for providing services cooperatively 
with other public and private institutions in the same 
geographic area; and 
    (6) (8) 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.  
    Sec. 15.  [135A.15] [SEXUAL HARASSMENT AND VIOLENCE 
POLICY.] 
    The governing board of each public post-secondary system 
and each public post-secondary institution shall adopt a clear, 
understandable written policy on sexual harassment and sexual 
violence.  The policy must apply to students and employees and 
must provide information about their rights and duties.  It must 
include procedures for reporting incidents of sexual harassment 
or sexual violence and for disciplinary actions against 
violators.  During student registration, each public 
post-secondary institution shall provide each student with 
information regarding its policy.  Each private post-secondary 
institution that enrolls students who receive state financial 
aid must adopt a policy that meets the requirements of this 
section.  The higher education coordinating board shall 
coordinate the policy development of the systems and 
institutions and periodically provide for review and necessary 
changes in the policies. 
    Sec. 16.  Minnesota Statutes 1988, section 136.31, 
subdivision 3, is amended to read: 
    Subd. 3.  Such The bonds shall must be executed by such 
the officers of said the board as shall be designated by said 
the board to execute them and countersigned by the treasurer of 
elected by the board.  who shall be an officer duly elected by 
the board; provided that at least one of such officers shall 
sign each bond manually and the other signatures or 
countersignature thereon and on the interest coupons may be 
printed, lithographed, stamped or engraved thereon.  Any bonds 
bearing the signature of officers in office at the date of 
signing thereof shall be valid and binding for all purposes, 
notwithstanding that before delivery thereof any or all such 
persons whose signatures appear thereon shall have ceased to be 
such officers, or that any or all such persons did not hold such 
offices at the date of such bonds. 
    Sec. 17.  Minnesota Statutes 1988, section 136.31, 
subdivision 5, is amended to read: 
    Subd. 5.  Whenever If the board shall by resolution 
determine determines that there are moneys in the possession of 
its treasurer possesses money not currently needed, or which are 
that is set aside in any a reserve, the board may in and by 
such the resolution authorize and may direct the treasurer to 
invest a specified amount thereof of the money in treasury bonds 
or bills, certificates of indebtedness, bonds or notes of the 
United States of America securities of the types described in 
section 475.66.  The securities so purchased shall must be 
deposited with and held for the board by the board 
treasurer.  Whenever funds so If the invested are money is 
needed by the board it shall direct its the treasurer to sell 
the same all or a designated amount thereof of the 
securities.  All moneys Money collected thereon from the 
investment by the board treasurer, as principal, interest, or 
proceeds of sales, shall must be credited to and constitute made 
a part of the fund and account for which the investment was is 
made. 
    Sec. 18.  Minnesota Statutes 1988, section 136A.02, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADVISORY GROUPS.] The board may appoint advisory 
task forces to assist it in the study of higher education within 
the state or in the administration of federal programs.  The 
task forces shall expire and the terms, compensation and removal 
of members shall be are as provided in section 15.059, except 
that the task force established under section 135A.05 and the 
advisory councils established under subdivisions 6 and 7 expire 
June 30, 1993. 
    Sec. 19.  Minnesota Statutes 1988, section 136A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
education advisory council is established.  The council is 
composed of the president of the University of Minnesota, the 
chancellor of the state universities, the chancellor of the 
community colleges, the state director of vocational technical 
education, the commissioner of education, the president of the 
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 that the council deems necessary, (2) make appropriate 
recommendations, (3) review and comment upon proposals and other 
matters before the board, and (4) provide other assistance to 
the board.  The board shall periodically inform the council of 
matters under consideration by the board.  The board shall refer 
all proposals to the council 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 council shall report to the board at least quarterly. 
The council shall determine its meeting times, but it shall also 
meet within 30 days after a request by the executive director of 
the board.  The council expires as provided in section 15.059, 
subdivision 5 June 30, 1993. 
    Sec. 20.  Minnesota Statutes 1988, section 136A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [STUDENT ADVISORY COUNCIL.] A student advisory 
council to the board is established.  The members of the council 
shall include the chair of the University of Minnesota 
university student senate, the state chair of the Minnesota 
state university student association, the president of the 
Minnesota community college student association, the president 
of the Minnesota vocational technical student association, the 
president of the Minnesota association of private college 
students, and a student who is enrolled in a private vocational 
school registered under this chapter, to be appointed by the 
Minnesota association of private post-secondary schools.  A 
member may be represented by a designee. 
    The advisory council shall: 
    (1) bring to the attention of the board any matter that the 
council believes needs the attention of the board; 
    (2) make recommendations to the board as the council deems 
appropriate; 
    (3) review and comment upon proposals and other matters 
before the board; 
     (4) provide any reasonable assistance to the board; and 
     (5) select one of its members to serve as chair.  The board 
shall inform the council of all matters under consideration by 
the board and shall refer all proposals to the council before 
the board acts or sends the proposals to the governor or the 
legislature.  The board shall provide time for a report from the 
advisory council at each meeting of the board. 
    The student advisory council shall report to the board 
quarterly and at other times that the council considers 
desirable.  The council shall determine its meeting time, but 
the council shall also meet with the executive director of the 
board within 30 days after the director's request for a council 
meeting.  The student advisory council shall meet quarterly with 
the higher education advisory council and the board executive 
committee.  The council expires as provided in section 15.059, 
subdivision 5 June 30, 1993. 
    Sec. 21.  Minnesota Statutes 1988, section 136A.04, is 
amended to read: 
    136A.04 [DUTIES.] 
    Subdivision 1.  The higher education coordinating board 
shall:  
    (a) (1) 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; 
    (b) (2) continuously engage in long-range planning for the 
needs of higher education and, if necessary, cooperatively 
engage in planning with neighboring states and agencies of the 
federal government; 
    (c) (3) act as successor to any committee or commission 
previously authorized to engage in exercising any of the powers 
and duties prescribed by sections 136A.01 to 136A.07; 
    (d) (4) review, approve or disapprove, make 
recommendations, and identify priorities with respect to all 
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, technical institutes, and private 
collegiate and noncollegiate post-secondary institutions.  The 
board shall also periodically review existing programs and 
recommend discontinuing or modifying any existing program.  When 
reviewing new or existing programs, the board shall consider 
whether the program is unnecessary, 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) (5) develop in cooperation with the post-secondary 
systems, house appropriations committee, senate finance 
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 community college system, and the technical 
institutes, which includes the relating of dollars to program 
output; 
    (f) (6) review budget requests, including plans for 
construction or acquisition of facilities, of the University of 
Minnesota, the state universities, the community colleges, and 
technical institutes 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) (7) obtain from private post-secondary institutions 
receiving state funds a report on their use of those funds; 
    (h) (8) 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; and 
    (9) prescribe policies, procedures, and rules necessary to 
administer the programs under its supervision.  
    Subd. 2.  The higher education coordinating board shall 
review and make recommendations regarding a plan or proposal for 
a new or additional program of instruction or a substantial 
change in an existing program of instruction to be offered by a 
technical institute within 45 days of the transmission of 
approval of the plan or proposal to the higher education 
coordinating board by the state board for of vocational 
technical education.  The higher education coordinating board 
shall then transmit a written explanation of its recommendations 
within five days of board action to the director of the applying 
technical institute and to the commissioner of state director of 
vocational technical education. 
    Sec. 22.  Minnesota Statutes 1988, section 136A.05, is 
amended to read: 
    136A.05 [COOPERATION OF INSTITUTIONS OF HIGHER EDUCATION.] 
    All public institutions of higher education, all school 
districts providing post-secondary vocational education, and all 
state departments and agencies shall cooperate with and supply 
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. 23.  Minnesota Statutes 1988, section 136A.08, is 
amended to read: 
    136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT 
TUITION WITH OTHER STATES.] 
    Subdivision 1.  [AUTHORIZATION.] The Minnesota higher 
education coordinating board herein referred to as the board, in 
addition to its general responsibility for cooperatively 
engaging in planning higher education needs with neighboring 
states pursuant to section 136A.04, may enter into agreements or 
understandings which include, on subjects that include remission 
of nonresident tuition for designated categories of students 
at state public post-secondary institutions of higher education 
and public technical institutes, with appropriate state agencies 
and public post-secondary institutions of higher education in 
other states to facilitate utilization of public higher 
education institutions in this state and other states.  Such The 
agreements shall have as their be for the purpose of the mutual 
improvement of educational advantages for residents of this 
state and such other states or institutions of other states with 
whom agreements are made. 
    Subd. 1a.  [WISCONSIN.] At the discretion of the board, A 
higher education reciprocity agreement with the state of 
Wisconsin may include provision for the transfer of funds 
between Minnesota and Wisconsin provided that an income tax 
reciprocity agreement between Minnesota and Wisconsin is in 
effect for the period of time included under the higher 
education reciprocity agreement.  If this provision for transfer 
of funds between the two states is included in a collegiate 
education reciprocity agreement, the amount of funds to be 
transferred shall be determined according to a formula which is 
mutually acceptable to the board and a duly designated agency 
representing Wisconsin.  Such The formula shall recognize 
differences in tuition rates between the two states and the 
number of students attending institutions in each state under 
the agreement.  Any payments to Minnesota by Wisconsin shall be 
deposited by the board in the general fund of the state 
treasury.  The amount required for the payments shall be 
certified by the executive director of the higher education 
coordinating board to the commissioner of finance annually. 
    Subd. 2.  [NORTH DAKOTA; SOUTH DAKOTA.] At the discretion 
of the board, A reciprocity agreement with North Dakota may 
include provision for the transfer of funds between Minnesota 
and North Dakota.  If provision for transfer of funds between 
the two states is included in an agreement, the amount of funds 
to be transferred shall be determined according to a formula 
which is mutually acceptable to the board and a duly designated 
agency representing North Dakota.  In adopting a formula, the 
board shall consider tuition rates in the two states and the 
number of students attending institutions in each state under 
the agreement.  Any payment to Minnesota by North Dakota shall 
be deposited by the board in the general fund. The amount 
required for the payments shall be certified by the executive 
director of the higher education coordinating board to the 
commissioner of finance annually.  All provisions in this 
subdivision pertaining to North Dakota shall also be applied to 
South Dakota and all authority and conditions granted for higher 
education reciprocity with North Dakota are also granted for 
higher education reciprocity with South Dakota. 
    Subd. 3.  [FINANCIAL AID.] The board may enter into an 
agreement, with a state with which it has negotiated a 
reciprocity agreement for tuition, to permit students from both 
states to receive student aid awards from the student's state of 
residence for attending an eligible institution in the other 
state. 
    Subd. 4.  [GOVERNING BOARD APPROVAL.] No An agreement made 
by the board pursuant to under this section shall be is not 
valid as to a technical institute particular institution without 
the approval of the state board for vocational education, as to 
a state university without the approval of the state university 
board, as to a community college without the approval of the 
state board for community colleges, and as to the University of 
Minnesota without the approval of the board of regents of the 
University of Minnesota that institution's state governing board.
    Sec. 24.  Minnesota Statutes 1988, section 136A.101, 
subdivision 1, is amended to read: 
    Subdivision 1.  For purposes of sections 136A.09 136A.095 
to 136A.131 136A.134, the terms defined in this section have the 
meanings ascribed to them. 
    Sec. 25.  Minnesota Statutes 1988, section 136A.101, 
subdivision 7, is amended to read:  
    Subd. 7.  "Student" means a person who is enrolled at least 
half time, as defined by the board, in a program or course of 
study that applies to a degree, diploma, or certificate, except 
that for purposes of section 136A.132, student may include a 
person enrolled less than half time. 
    Sec. 26.  Minnesota Statutes 1988, section 136A.101, 
subdivision 8, is amended to read: 
    Subd. 8.  "Resident student" includes means a student who 
meets one of the following conditions:  
    (1) an independent student who has resided in Minnesota for 
purposes other than post-secondary education for at least 12 
months; 
    (2) a dependent student whose parent or legal guardian 
resides in Minnesota at the time the student applies; 
    (3) a student who graduated from a Minnesota high 
school and has not since established residence in another state; 
or 
    (4) a student who, after residing in the state for a 
minimum of one year, earned a high school equivalency 
certificate in Minnesota. 
    Sec. 27.  Minnesota Statutes 1988, section 136A.121, is 
amended to read: 
    136A.121 [SCHOLARSHIPS AND GRANTS-IN-AID GRANTS.] 
    Subdivision 1.  [ELIGIBILITY FOR SCHOLARSHIPS.] An 
applicant is eligible to be considered for a scholarship under 
sections 136A.09 to 136A.131 if the board finds that the 
applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) has met all the requirements for admission as a student 
to an eligible institution of choice as defined in sections 
136A.09 to 136A.131; 
    (3) has demonstrated capacity for superior achievement at 
the institutional level as measured by standards prescribed by 
the board; 
    (4) is a qualified applicant. 
    Subd. 2.  [ELIGIBILITY FOR GRANTS-IN-AID GRANTS.] An 
applicant is eligible to be considered for a grant-in-aid grant, 
regardless of the applicant's sex, creed, race, color, national 
origin, or ancestry, under sections 136A.09 136A.095 to 136A.131 
if the board finds that the applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) is a graduate of a secondary school or its equivalent, 
or is 17 years of age or over, and has met all requirements for 
admission as a student to an eligible college or technical 
institute of choice as defined in sections 136A.09 136A.095 to 
136A.131; 
    (3) has met the financial need criteria established in 
Minnesota Rules; and 
    (4) is not in default, as defined by the board, of any 
federal or state student educational loan. 
    Subd. 3.  [ALLOCATION.] Scholarships and grants-in-aid 
shall Grants must be awarded on a funds available basis to those 
applicants who meet the board's requirements. 
    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.  
    Subd. 5.  [GRANTS-IN-AID GRANT 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) (1) a contribution by the grant applicant of at least 
50 percent of the cost of attending the institution of the 
applicant's choosing; 
    (b) (2) 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) (3) the amount of a federal Pell grant award for which 
the grant applicant is eligible.  
    The minimum financial stipend is $100.  
    Subd. 6.  [COST OF ATTENDANCE.] The cost of attendance 
consists of allowances specified by the board for room and board 
and miscellaneous expenses, and 
    (a) (1) for public institutions, tuition and fees charged 
by the institution; or 
    (b) (2) for private institutions, an allowance for tuition 
and fees equal to the lesser of (1) the actual tuition and fees 
charged by the institution, or (2) the instructional costs per 
full-year equivalent student in comparable public institutions.  
    Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
appropriated is determined by the board to be insufficient to 
make full awards to applicants under subdivisions 4 and 
subdivision 5, before any award for that year has been 
disbursed, then awards shall must be reduced by 
    (a) (1) adding a surcharge to the contribution of the 
applicant's parents, and 
    (b) (2) a percentage increase in the applicant's 
contribution.  
    Subd. 9.  [INITIAL AWARDS.] An undergraduate student who 
has not previously received a scholarship or grant-in-aid grant 
and who meets the board's requirements is eligible to apply for 
and receive an initial scholarship or grant-in-aid grant in any 
year of undergraduate study.  
    Subd. 10.  [RENEWALS.] Each scholarship or grant-in-aid 
shall grant must be awarded for one academic year, is renewable 
for a maximum of six semesters or nine quarters or their 
equivalent, but may not continue after the recipient has 
obtained a baccalaureate degree or has been enrolled full-time 
or the equivalent for eight semesters or 12 quarters, whichever 
occurs first.  
    Subd. 11.  [RENEWAL CONDITIONS.] Each scholarship or 
grant-in-aid grant is renewable, contingent on continued 
residency in Minnesota, satisfactory academic standing, 
recommendation of the eligible institution currently attended, 
and evidence of continued need. 
    Subd. 12.  [ANNUAL APPLICATION.] To continue to receive 
a scholarship or grant-in-aid grant, the student shall must 
apply for renewal each year. 
    Subd. 13.  [DEADLINE.] The board shall accept applications 
for state scholarships and grants-in-aid grants until February 
15 and may establish a deadline for the acceptance of 
applications that is later than February 15. 
    Subd. 15.  All scholarship and grant-in-aid recipients 
shall be notified of their awards by the board and shall be 
given appropriate evidence of the award. 
    Subd. 16.  [HOW APPLIED; ORDER.] Scholarships and 
grants-in-aid Grants awarded under sections 136A.09 136A.095 to 
136A.131 shall must be applied to educational costs in the 
following order:  tuition, fees, books, supplies, and other 
expenses.  Unpaid portions of the awards revert to 
the scholarship or grant-in-aid grant account. 
    Subd. 17.  [INDEPENDENT STUDENT INFORMATION.] The board 
shall inform students, in writing, as part of the application 
process, about the definition of independent student status and 
appeals to the financial aid administrator relating to the 
declaration of the status.  
    Sec. 28.  [136A.125] [CHILD CARE GRANTS.] 
    Subdivision 1.  [ESTABLISHMENT.] A child care grant program 
is established under the supervision of the higher education 
coordinating board.  The program makes money available to 
eligible students to reduce the costs of child care while 
attending an eligible post-secondary institution.  The board 
shall develop policies and adopt rules as necessary to implement 
and administer the program. 
    Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
a child care grant if the applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) has a child 12 years of age or younger, or 14 years of 
age or younger who is handicapped as defined in section 120.03, 
and who is receiving or will receive care on a regular basis 
from a licensed or legal, nonlicensed caregiver; 
    (3) is within the sliding fee scale income guidelines set 
under section 256H.10, subdivision 2, as determined by a 
standardized financial aid needs analysis in accordance with the 
board's policies and rules, but is not a recipient of aid to 
families with dependent children; 
    (4) has not earned a baccalaureate degree and has been 
enrolled full time less than eight semesters, 12 quarters or the 
equivalent; 
    (5) is pursuing a nonsectarian program or course of study 
that applies to an undergraduate degree, diploma, or 
certificate; 
    (6) is enrolled at least half time in an eligible 
institution; and 
    (7) is in good academic standing and making satisfactory 
progress, as determined by the institution. 
     Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
post-secondary institution or a private, residential, two-year 
or four-year, liberal arts, degree granting college or 
university located in Minnesota is eligible to receive child 
care funds from the board and disburse them to eligible students.
    Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
child care grant must be based on: 
    (1) the financial need of the applicant; 
    (2) the number of the applicant's children; and 
    (3) the cost of the child care, 
as determined by the institution in accordance with board 
policies and rules.  The amount of the grant must cover the cost 
of child care for all eligible children for the full number of 
hours of education per week and may cover up to 20 hours per 
week of employment for which child care is needed.  The grant 
must be awarded for one academic year.  
    Subd. 5.  [INITIAL ALLOCATIONS TO INSTITUTIONS.] The board 
initially shall allocate funds to an eligible institution based 
on the number of its enrolled students with dependent children 
who applied for state grants in the last academic year. 
    Subd. 6.  [YEARLY ALLOCATIONS TO INSTITUTIONS.] The board 
shall base yearly allocations on the need for and use of the 
funds in the last academic year, and other relevant factors as 
determined by the board in consultation with the institutions. 
    Subd. 7.  [MONITORING AND REALLOCATION.] The board shall 
establish procedures to (1) continually monitor the use of funds 
throughout the year; (2) identify areas of unmet need for 
grants; and (3) redistribute available funds in a timely manner 
to meet the needs of eligible recipients. 
    Subd. 8.  [INFORMATION.] The board shall develop and 
provide information about the program to eligible post-secondary 
institutions, human service agencies, and potential applicants. 
    Subd. 9.  [REPORT.] Institutions must submit reports, when 
requested by the board, on program activity including the number 
of students served, the child care costs, and the number of 
students on a waiting list for available funds.  The reports 
must also include the institution's method of prioritizing 
applicants if insufficient funds are available. 
    Sec. 29.  [CAMPUS ALTERNATIVES.] 
    Each public post-secondary system that operates child care 
facilities on any of its campuses shall work with those campuses 
to develop alternatives for students who cannot afford child 
care.  The alternatives may include, but are not limited to, 
cooperative arrangements and work study employment.  The systems 
shall report on their efforts to the education divisions of the 
house appropriations and senate finance committees by February 
15, 1991. 
    Sec. 30.  Minnesota Statutes 1988, section 136A.131, is 
amended to read: 
    136A.131 [ACCOUNTING AND RECORDS.] 
    Subdivision 1.  [ACCOUNTS.] The board shall establish and 
maintain appropriate scholarship and grant-in-aid accounts and 
related records of each recipient of a scholarship or 
grant-in-aid awarded grant.  
    Subd. 2.  [RULES, PAYMENT AND ACCOUNTING.] The board shall 
provide by rule the method of payment of the scholarships and 
grants-in-aid grant awarded hereunder and prescribe a system of 
accounting to be kept by the institution selected by a recipient.
    Subd. 3.  [CERTIFICATION TO COMMISSIONER OF FINANCE.] Upon 
proper verification for payment of a scholarship or grant-in-aid 
as defined herein grant, the board shall certify to the 
commissioner of finance the amount of the current payment to be 
made to the scholarship winner or grant-in-aid grant recipient 
in conformance with the rule of the board governing the method 
of payment. 
    Subd. 4.  [RECOVERY OF OVERPAYMENTS.] A recipient of a 
grant must reimburse the board for overpayment.  The amount of 
reimbursement is the difference between the amount received and 
the amount of actual entitlement as calculated by the board 
after it makes its final findings under section 136A.121 and 
rules implemented under that section.  The amount of 
reimbursement may include any costs or expenses, including 
reasonable attorney fees, incurred by the agency in collecting 
the debt.  The reimbursement is recoverable from the recipient 
or the recipient's estate.  The agency may institute a civil 
action, if necessary for recovery. 
    The recipient must not receive additional awards until the 
overpayment is recovered or the recipient is making payments 
under an approved plan.  Additional awards for which the 
recipient is eligible may be used to recover an unreimbursed 
overpayment. 
    Sec. 31.  Minnesota Statutes 1988, section 136A.132, is 
amended to read: 
    136A.132 [PART-TIME STUDENT GRANT-IN-AID GRANT PROGRAM.] 
    Subdivision 1.  [CREATION.] There is hereby created A 
part-time student grant-in-aid grant program is created under 
the supervision of the higher education coordinating board. 
    Subd. 2.  [ELIGIBLE INSTITUTIONS.] Institutions eligible 
for attendance by recipients of part-time student grants-in-aid 
shall be grants are those institutions approved by the higher 
education coordinating board as eligible institutions for the 
state grant-in-aid grant program in accordance with section 
136A.101. 
    Subd. 3.  [STUDENT ELIGIBILITY.] An applicant is eligible 
to be considered for a part-time student grant if the applicant: 
    (a) (1) is a resident of the state of Minnesota; 
    (b) (2) is an undergraduate student who has not earned a 
baccalaureate degree; 
    (c) (3) is pursuing a program or course of study that 
applies to a degree, diploma, or certificate; and 
    (d) (4) is attending an eligible institution 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; and 
    (5) is not in default, as defined by the board, of any 
federal or state student educational loan. 
    Subd. 4.  [SELECTION.] A recipient of a part-time 
grant-in-aid shall grant must be selected by the post-secondary 
education institution of attendance in accordance with 
guidelines, policies and rules established by the higher 
education coordinating board. 
    Subd. 5.  [AMOUNT.] The amount of any part-time student 
grant-in-aid grant award shall must be based on the need of the 
applicant determined by the institution in accordance with 
policies and rules established by the higher education 
coordinating board. 
    Subd. 6.  [LENGTH OF AWARD.] Part-time student 
grants-in-aid shall grants must 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 are not be renewable, but the recipient of an award may 
apply for additional awards for subsequent terms. 
    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 is eligible for an award for only one term. 
    Subd. 7.  [INSTITUTIONAL ALLOCATION.] Funds appropriated 
for part-time student grants-in-aid shall grants must 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 may not receive less than 
it would have received under the allocation formula used before 
fiscal year 1988. 
    Sec. 32.  Minnesota Statutes 1988, section 136A.134, 
subdivision 4, is amended to read: 
    Subd. 4.  [PROGRAM RECIPIENTS.] An eligible institution 
shall select a recipient of a dislocated rural worker grant in 
accordance with guidelines, policies, and rules established by 
the board.  The board may adopt emergency rules for awarding 
grants only for the fiscal year beginning July 1, 1987. 
    Sec. 33.  Minnesota Statutes 1988, section 136A.15, 
subdivision 1, is amended to read: 
    Subdivision 1.  For purposes of sections 136A.14 136A.15 to 
136A.17 and section 136A.1701 136A.1702, the terms defined in 
this section have the meanings ascribed to them. 
    Sec. 34.  Minnesota Statutes 1988, section 136A.15, 
subdivision 7, is amended to read: 
    Subd. 7.  "Eligible student" means a student who is 
officially registered or accepted for enrollment at an eligible 
institution in Minnesota or a Minnesota resident who is 
officially registered as a student or accepted for enrollment at 
an eligible institution in another state.  A Minnesota resident 
includes a student who graduated from a Minnesota high school 
and has not since established residence in another state.  
Eligible student, except for purposes of section 136A.1701, 
includes parents of an eligible student as the term "parent" is 
defined in the Higher Education Act of 1965, as amended, and 
applicable regulations.  Except for the purposes of section 
136A.1701, eligible student also includes students eligible for 
auxiliary loans as the term "auxiliary" is defined in the Higher 
Education Act of 1965, as amended, and applicable regulations.  
An eligible student, for section 136A.1701, means a student who 
gives informed consent authorizing the disclosure of data 
specified in section 136A.162, paragraph (b), to a consumer 
credit reporting agency. 
    Sec. 35.  Minnesota Statutes 1988, section 136A.15, is 
amended by adding a subdivision to read: 
    Subd. 8.  "Resident student" means a student who meets the 
conditions in section 136A.101, subdivision 8. 
    Sec. 36.  Minnesota Statutes 1988, section 136A.16, 
subdivision 1, is amended to read: 
    Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
higher education coordinating board is hereby designated as the 
administrative agency for carrying out the purposes and terms of 
sections 136A.14 136A.15 to 136A.17 and section 
136A.1701 136A.1702.  The board may establish one or more loan 
programs. 
    Sec. 37.  Minnesota Statutes 1988, section 136A.16, 
subdivision 2, is amended to read:  
    Subd. 2.  The board shall adopt policies and prescribe 
appropriate rules to carry out the purposes of sections 136A.14 
136A.15 to 136A.17 and section 136A.1701 136A.1702.  The 
policies and rules except as they relate to loans under section 
136A.1701 shall must be compatible with the provisions of the 
National Vocational Student Loan Insurance Act of 1965 and the 
provisions of title IV of the Higher Education Act of 1965, and 
any amendments thereof. 
    Sec. 38.  Minnesota Statutes 1988, section 136A.16, 
subdivision 5, is amended to read:  
    Subd. 5.  The board shall have the right to may contract 
with guarantee agencies, insurance agencies, and/or collection 
agencies, or any other person, to carry out the purposes of 
sections 136A.14 136A.15 to 136A.17 and section 136A.1701 
136A.1702. 
    Sec. 39.  Minnesota Statutes 1988, section 136A.16, 
subdivision 8, is amended to read:  
    Subd. 8.  Moneys Money made available to the board which 
are that is not immediately needed for the purposes of 
sections 136A.14 136A.15 to 136A.17 and section 136A.1701 
136A.1702 may be invested by the board.  Such moneys shall The 
money must be invested in bonds, certificates of indebtedness, 
and other fixed income securities, except preferred stocks, 
which are legal investments for the permanent school fund.  Such 
The money may also be invested in such prime quality commercial 
paper as that is eligible for investment in the state employees 
retirement fund.  All interest and profits from such investments 
shall inure to the benefit of the board. 
    Sec. 40.  Minnesota Statutes 1988, section 136A.16, 
subdivision 9, is amended to read:  
    Subd. 9.  The board shall be empowered to may employ such 
the professional and clerical staff as the director deems 
necessary for the proper administration of the loan programs 
established and defined by sections 136A.14 136A.15 to 136A.17 
and section 136A.1701 136A.1702. 
    Sec. 41.  Minnesota Statutes 1988, section 136A.16, 
subdivision 10, is amended to read:  
    Subd. 10.  Subject to its directives and review, the board 
may delegate to the director the responsibility for issuance of 
public information concerning provisions of sections 136A.14 
136A.15 to 136A.17 and section 136A.1701 136A.1702, for design 
of loan application forms, and for prescribing procedures for 
submission of applications for loans. 
    Sec. 42.  Minnesota Statutes 1988, section 136A.162, is 
amended to read: 
    136A.162 [CLASSIFICATION OF DATA.] 
    All data on applicants for financial assistance collected 
and used by the higher education coordinating board for student 
financial aid programs administered by that board shall be 
classified as private data on individuals under section 13.02, 
subdivision 12.  Exceptions to this classification are that:  
    (a) the names and addresses of program recipients or 
participants are public data; and 
    (b) the following data collected in the Minnesota 
supplemental loan program under section 136A.1701 may be 
disclosed to a consumer credit reporting agency only if the 
borrower gives and the cosigner give informed consent, according 
to section 13.05, subdivision 4, at the time of application for 
a loan: 
    (1) the lender-assigned borrower identification number; 
    (2) the name and address of borrower; 
    (3) the name and address of cosigner; 
    (4) the date the account is opened; 
    (5) the outstanding account balance; 
    (6) the dollar amount past due; 
    (7) the number of payments past due; 
    (8) the number of late payments in previous 12 months; 
    (9) the type of account; 
    (10) the responsibility for the account; and 
    (11) the status or remarks code. 
    Sec. 43.  Minnesota Statutes 1988, section 136A.17, 
subdivision 1, is amended to read: 
    Subdivision 1.  A student shall be is eligible to apply for 
a loan under the provisions of sections 136A.14 136A.15 to 
136A.17 136A.1702 if the board finds that the student is an 
eligible student as defined in those sections and is eligible 
for a loan under federal laws and regulations governing the 
federal guaranteed student loan programs.  
    Sec. 44.  Minnesota Statutes 1988, section 136A.1701, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ESTABLISHMENT OF PROGRAM.] The higher 
education coordinating board may provide for programs of loans 
which may be made in lieu of or in addition to loans authorized 
under sections 136A.14 136A.15 to 136A.17 136A.1702 and 
applicable provisions of federal law as provided in this section.
    Sec. 45.  Minnesota Statutes 1988, section 136A.1701, 
subdivision 2, is amended to read: 
    Subd. 2.  [PURPOSE OF PROGRAM.] The purpose of the loan 
programs under this section is to provide financial assistance 
for the post-secondary education of students who are eligible 
students whether or not such students qualify for a loan or 
loans under other provisions of sections 136A.14 136A.15 to 
136A.17 136A.1702.  
    Loans granted to students shall may be used solely for 
educational purposes.  
    Sec. 46.  Minnesota Statutes 1988, section 136A.1701, 
subdivision 5, is amended to read: 
    Subd. 5.  [MAXIMUM LOANS FOR STUDENTS.] Loans made under 
this section or sections 136A.14 136A.15 to 136A.17 136A.1702 to 
an individual eligible student for vocational study may be made 
for a maximum of three academic years or their equivalent and 
loans made to any other individual eligible student may be made 
for a maximum of eight academic years or their equivalent.  
    Sec. 47.  Minnesota Statutes 1988, section 136A.172, is 
amended to read: 
    136A.172 [NEGOTIABLE NOTES; ISSUANCE; CONDITIONS.] 
    The board may from time to time issue negotiable notes for 
the purpose of sections 136A.14 136A.15 to 136A.179 and may from 
time to time renew any notes by the issuance of new notes, 
whether the notes to be renewed have or have not matured. The 
board may issue notes partly to renew notes or to discharge 
other obligations then outstanding and partly for any other 
purpose.  The notes may be authorized, sold, executed and 
delivered in the same manner as bonds.  Any resolution or 
resolutions authorizing notes of the board or any issue thereof 
may contain any provisions which the board is authorized to 
include in any resolution or resolutions authorizing revenue 
bonds of the board or any issue thereof, and the board may 
include in any notes any terms, covenants or conditions which it 
is authorized to include in any bonds.  All such notes shall be 
payable solely from the revenue of the board, subject only to 
any contractual rights of the holders of any of its notes or 
other obligations then outstanding. 
    Sec. 48.  Minnesota Statutes 1988, section 136A.173, 
subdivision 1, is amended to read: 
    Subdivision 1.  The board may from time to time issue 
revenue bonds for purposes of sections 136A.14 136A.15 to 
136A.179 and all such revenue bonds, notes, bond anticipation 
notes or other obligations of the board issued pursuant to 
sections 136A.14 136A.15 to 136A.179 shall be and are hereby 
declared to be negotiable for all purposes notwithstanding their 
payment from a limited source and without regard to any other 
law or laws.  In anticipation of the sale of such revenue bonds, 
the board may issue negotiable bond anticipation notes and may 
renew the same from time to time, but the maximum maturity of 
any such note, including renewals thereof, shall not exceed five 
years from the date of issue of the original note.  Such notes 
shall be paid from any revenues of the board available therefor 
and not otherwise pledged, or from the proceeds of sale of the 
revenue bonds of the board in anticipation of which they were 
issued.  The notes shall be issued in the same manner as the 
revenue bonds.  Such notes and the resolution or resolutions 
authorizing the same may contain any provisions, conditions or 
limitations which a bond resolution or the board may contain. 
    Sec. 49.  Minnesota Statutes 1988, section 136A.174, is 
amended to read: 
    136A.174 [SECURITY FOR BONDS.] 
    In the discretion of the board any revenue bonds issued 
under the provisions of sections 136A.14 136A.15 to 136A.179 may 
be secured by a trust agreement by and between the board and a 
corporate trustee or trustees, which may be any trust company or 
bank having the powers of a trust company within the state.  
Such trust agreement or the resolution providing for the 
issuance of such revenue bonds may pledge or assign the revenues 
to be received or proceeds of any contract or contracts pledged 
or any portion thereof.  Such trust agreement or resolution 
providing for the issuance of such revenue bonds may contain 
such provisions for protecting and enforcing the rights and 
remedies of the bondholders as may be reasonable and proper and 
not in violation of laws, including particularly such provisions 
as have hereinabove been specifically authorized to be included 
in any resolution or resolutions of the board authorizing 
revenue bonds thereof.  Any bank or trust company incorporated 
under the laws of the state which may act as depository of the 
proceeds of bonds or of revenues or other moneys may furnish 
such indemnifying bonds or pledges such securities as may be 
required by the board.  Any such trust agreement may set forth 
the rights and remedies of the bondholders and of the trustee or 
trustees and may restrict the individual right of action by 
bondholders.  In addition to the foregoing, any such trust 
agreement or resolution may contain such other provisions as the 
board may deem reasonable and proper for the security of the 
bondholders. 
    Sec. 50.  Minnesota Statutes 1988, section 136A.175, 
subdivision 4, is amended to read: 
    Subd. 4.  All such revenue bonds shall be subject to the 
provisions of sections 136A.14 136A.15 to 136A.179 in the same 
manner and to the same extent as other revenue bonds issued 
pursuant to sections 136A.14 136A.15 to 136A.179. 
    Sec. 51.  Minnesota Statutes 1988, section 136A.176, is 
amended to read: 
    136A.176 [BONDS NOT STATE OBLIGATIONS.] 
    Bonds issued under authority of sections 136A.14 136A.15 to 
136A.179 do not, and shall state that they do not, represent or 
constitute a debt or pledge of the faith and credit of the 
state, grant to the owners or holders thereof any right to have 
the state levy any taxes or appropriate any funds for the 
payment of the principal thereof or interest thereon.  Such 
bonds are payable and shall state that they are payable solely 
from the rentals, revenues, and other income, charges, and 
moneys as are pledged for their payment in accordance with the 
bond proceedings. 
    Sec. 52.  Minnesota Statutes 1988, section 136A.177, is 
amended to read: 
    136A.177 [RIGHTS OF BONDHOLDERS.] 
    Any holder of revenue bonds issued under the provisions of 
sections 136A.14 136A.15 to 136A.179 or any of the coupons 
appertaining thereto, and the trustee or trustees under any 
trust agreement, except to the extent the rights herein given 
may be restricted by any resolution authorizing the issuance of, 
or any such trust agreement securing, such bonds, may, either at 
law or in equity, by suit, action, mandamus, or other 
proceedings, protect and enforce any and all rights under the 
laws of the state or granted hereunder or under such resolution 
or trust agreement, and may enforce and compel the performance 
of all duties required by sections 136A.14 136A.15 to 136A.179 
or by such resolution or trust agreement to be performed by the 
board or by any officer, employee or agent thereof, including 
the fixing, charging and collecting of the rates, rents, fees 
and charges herein authorized and required by the provisions of 
such resolution or trust agreement to be fixed, established and 
collected. 
    Sec. 53.  Minnesota Statutes 1988, section 136A.178, is 
amended to read: 
    136A.178 [LEGAL INVESTMENTS; AUTHORIZED SECURITIES.] 
    Bonds issued by authority under the provisions of sections 
136A.14 136A.15 to 136A.179 are hereby made securities in which 
all public officers and public bodies of the state and its 
political subdivisions, all insurance companies, trust 
companies, banking associations, investment companies, 
executors, administrators, trustees and other fiduciaries may 
properly and legally invest funds, including capital in their 
control or belonging to them; it being the purpose of this 
section to authorize the investment in such bonds of all 
sinking, insurance, retirement, compensation, pension and trust 
funds, whether owned or controlled by private or public persons 
or officers; provided, however, that nothing contained in this 
section may be construed as relieving any person, firm, or 
corporation from any duty of exercising due care in selecting 
securities for purchase or investment; and provided further, 
that in no event shall assets of pension funds of public 
employees of the state of Minnesota or any of its agencies, 
board or subdivisions, whether publicly or privately 
administered, be invested in bonds issued under the provisions 
of sections 136A.14 136A.15 to 136A.179.  Such bonds are hereby 
constituted "authorized securities" within the meaning and for 
the purposes of section 50.14.  Such bonds are hereby made 
securities which may properly and legally be deposited with and 
received by any state or municipal officer or any agency or 
political subdivision of the state for any purpose for which the 
deposit of bonds or obligations of the state now or may 
hereafter be authorized by law. 
    Sec. 54.  Minnesota Statutes 1988, section 136A.179, is 
amended to read: 
    136A.179 [PUBLIC PURPOSE; TAX FREE STATUS.] 
    The exercise of the powers granted by sections 136A.14 
136A.15 to 136A.179 will be in all respects for the benefit of 
the people of this state, for the increase of their commerce, 
welfare and prosperity, and for the improvement of their health 
and living conditions, and as providing loans by the board or 
its agent will constitute the performance of an essential public 
function.  
    Sec. 55.  Minnesota Statutes 1988, section 136A.233, is 
amended to read: 
    136A.233 [WORK-STUDY GRANTS.] 
    Subdivision 1.  [ALLOCATION TO INSTITUTIONS.] 
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. 
    Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
to 136A.234, the following words defined in this subdivision 
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) "Minnesota resident" means a student who meets the 
conditions in section 136A.101, subdivision 8. 
    (c) "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) (d) "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) (e) "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) (f) "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. 
    Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
eligible students by post-secondary institutions as 
follows: provided in this subdivision. 
    (a) Students shall be selected for participation in the 
program by the post-secondary institution on the basis of 
student financial need. 
    (b) No eligible student shall be employed under the state 
work-study program while not a full time student; provided, with 
the approval of the institution, a full time student who becomes 
a part-time student during an academic year may continue to be 
employed under the state work-study program for the remainder of 
the academic year. 
    (c) Students will be paid for hours actually worked and the 
maximum hourly rate of pay shall not exceed the maximum hourly 
rate of pay permitted under the federal college work-study 
program. 
    (d) Minimum pay rates will be determined by an applicable 
federal or state law. 
    (e) Not less than 20 percent of the compensation paid to 
the student under the state work-study program shall be paid by 
the eligible employer. 
    (f) Each post-secondary institution receiving funds for 
state work-study grants shall make a reasonable effort to place 
work-study students in employment with eligible employers 
outside the institution. 
    (g) The percent of the institution's work-study allocation 
provided to graduate students shall not exceed the percent of 
graduate student enrollment at the participating institution. 
    Sec. 56.  Minnesota Statutes 1988, section 136A.26, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [PRIVATE COLLEGE COUNCIL MEMBER.] The chief 
executive officer president of the Minnesota private college 
council, or the president's designee, shall serve, without 
compensation, as an advisory, nonvoting member of the authority. 
    Sec. 57.  Minnesota Statutes 1988, section 136A.29, 
subdivision 9, is amended to read: 
    Subd. 9.  The authority is authorized and empowered to 
issue revenue bonds whose aggregate principal amount at any time 
shall not exceed $150,000,000 $250,000,000 and to issue notes, 
bond anticipation notes, and revenue refunding bonds of the 
authority under the provisions of sections 136A.25 to 136A.42, 
to provide funds for acquiring, constructing, reconstructing, 
enlarging, remodeling, renovating, improving, furnishing, or 
equipping one or more projects or parts thereof. 
    Sec. 58.  Minnesota Statutes 1988, section 136A.69, is 
amended to read: 
    136A.69 [FEES.] 
    The board may collect reasonable registration fees not to 
exceed $200 $400 for an initial registration of each school and 
$150 $250 for each annual renewal of such an existing 
registration. 
    Sec. 59.  Minnesota Statutes 1988, section 136C.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  [GENERAL.] The state board shall possess 
all powers necessary and incident to the management, 
jurisdiction, and governance of post-secondary vocational 
education.  These powers shall include, but are not limited to, 
those enumerated in this section.  The state board may adopt 
policies as necessary to perform its duties.  
    Sec. 60.  Minnesota Statutes 1988, section 136C.04, 
subdivision 2, is amended to read: 
    Subd. 2.  [APPOINTMENT OF STATE DIRECTOR.] The state board 
shall appoint a state director of vocational technical education 
who shall serve in the unclassified service.  The state director 
shall be qualified by training and experience in the field of 
education, vocational education, or administration.  The state 
director shall possess powers and perform duties as delegated by 
the state board.  The state board shall set the salary of the 
state director.  The state director may be paid an allowance not 
to exceed $2,000 annually for miscellaneous expenses in 
connection with duties of the office.  The provisions of chapter 
16A shall not apply to these expenditures, but the state board 
shall prescribe the manner, amount, and purpose of the 
expenditures and report to the legislature on the expenditures 
by December 1 of each even-numbered year. 
    Sec. 61.  Minnesota Statutes 1988, section 136C.04, 
subdivision 6, is amended to read: 
    Subd. 6.  [ACCOUNTING AND REPORTING STANDARDS.] The state 
board shall maintain the uniform financial accounting and 
reporting system according to the provisions of sections 121.90 
to 121.917, except that reports required by section 121.908 must 
be submitted to the state board on dates determined by the state 
board.  All expenditures and revenue related to summer session 
credit courses must be recognized in the fiscal year in which 
the course begins.  
    Sec. 62.  Minnesota Statutes 1988, section 136C.04, 
subdivision 9, is amended to read: 
    Subd. 9.  [LICENSURE.] The state board may promulgate adopt 
rules, according to the provisions of under chapter 14, for 
licensure of teaching, support, and supervisory personnel in 
post-secondary and adult vocational education.  The state board 
may adopt emergency licensure rules, according to sections 14.29 
to 14.36, When necessary for continuous programs approved by the 
board and when the board determines that appropriate licensure 
standards do not exist., the state board may adopt appropriate 
temporary standards without regard to chapter 14 and may issue 
temporary licenses to teaching and support personnel.  A 
temporary license is valid for up to one year and is not 
renewable, but a person holding a temporary license may, upon 
its expiration, be issued a license in accordance with standards 
adopted under chapter 14.  The state board may establish a 
processing fee for the issuance, renewal, or extension of a 
license. 
    Sec. 63.  Minnesota Statutes 1988, section 136C.04, 
subdivision 10, is amended to read: 
    Subd. 10.  [ALLOCATION.] The state board shall allocate 
state and federal money for post-secondary vocational education. 
Money received from federal sources, other than as provided in 
this chapter, and money received from other sources, not 
including the state, shall not be taken into account in 
determining appropriations or allocations.  The board shall take 
into consideration the unreserved fund balances of each 
technical institute. 
    Sec. 64.  Minnesota Statutes 1988, section 136C.04, 
subdivision 18, is amended to read: 
    Subd. 18.  [COMPUTER SALES AND MAINTENANCE.] The state 
board of vocational technical education or a school board may 
sell computers and related products to its technical institute 
staff and technical institute students to advance their 
instructional and research abilities.  The board shall contract 
with a private vendor for service, maintenance, and support for 
computers and related products sold by the board. 
    Sec. 65.  Minnesota Statutes 1988, section 136C.042, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXCEPTION.] Associate degrees offered by the 
area vocational technical institutes prior to January 1, 1981, 
shall not be subject to the provisions of subdivision 1.  
    Sec. 66.  Minnesota Statutes 1988, section 136C.05, is 
amended by adding a subdivision to read: 
    Subd. 5.  [USE OF PROPERTY.] A school board must not sell, 
lease, or assign technical institute property for purposes other 
than technical institute activities without the approval of the 
state director.  A school board need not obtain approval for 
uses that are incidental. 
    Sec. 67.  Minnesota Statutes 1988, section 136C.05, is 
amended by adding a subdivision to read: 
    Subd. 6.  [ACCOUNTING.] The school board shall maintain, in 
accordance with section 136C.04, subdivision 6, separate 
revenue, expenditure, asset, and liability accounts for 
technical institutes within funds separate from all other 
district funds. 
    Sec. 68.  Minnesota Statutes 1988, section 136C.07, 
subdivision 4, is amended to read: 
    Subd. 4.  If the petition is approved, the school shall be 
established by the district and classified by the state board as 
a technical institute and conducted under the general 
supervision of the state board in accordance with the policy and 
rules of the state board.  Notwithstanding the provisions of 
subdivision 3 and of this subdivision, after June 30, 1975, no 
area vocational A technical school institute shall be 
established unless specific legislation has authorized its 
establishment only by a specific law. 
    Sec. 69.  Minnesota Statutes 1988, section 136C.075, is 
amended to read: 
    136C.075 [COMPENSATION FOR PERFORMANCE EVALUATIONS BY STATE 
EMPLOYEES.] 
    Notwithstanding any law to the contrary, a state employee 
who is asked by the department of education state board to 
undertake a performance evaluation of a technical institute may 
be compensated at the rate provided for in section 15.059.  
    To be eligible for compensation under this section, a state 
employee must take an unpaid leave of absence for the period of 
time the employee performs the evaluation.  
    Sec. 70.  Minnesota Statutes 1988, section 136C.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  Any A school board or joint school board 
operating an area vocational a technical school, pursuant to 
section 136C.07; Laws 1967, chapter 822, as amended; Laws 1969, 
chapter 775, as amended; or Laws 1969, chapter 1060, as amended, 
institute may make, adopt and enforce rules, regulations or 
ordinances for the regulation of traffic and parking in parking 
facilities and on private roads and roadways situated on 
property owned, leased, occupied or operated by the board. 
    Sec. 71.  Minnesota Statutes 1988, section 136C.15, is 
amended to read: 
    136C.15 [STUDENT ASSOCIATIONS.] 
    Every school board governing a technical institute shall 
give recognition as an authorized extracurricular activity to a 
technical institute student association affiliated with the 
Minnesota vocational technical student association.  The student 
association is authorized to collect a reasonable fee from 
students to finance the activities of the association in an 
amount determined by the governing board of the technical 
institute which has recognized it. 
    Every governing body which recognizes a student association 
shall deposit the fees in a student association fund.  The money 
in this fund shall be available for expenditure for student 
recreational, social, welfare, charitable, and educational 
pursuits supplemental to the regular curricular 
offerings activities approved by the student association.  The 
money in the fund is not public money. 
    Sec. 72.  Minnesota Statutes 1988, section 136C.31, is 
amended by adding a subdivision to read: 
    Subd. 3.  [AID AND TUITION.] All technical institute money 
and tuition must be used solely for post-secondary vocational 
technical education. 
    Sec. 73.  Minnesota Statutes 1988, section 136C.36, is 
amended to read: 
    136C.36 [PAYMENT OF TECHNICAL INSTITUTE INSTRUCTIONAL AID 
MONEY.] 
    Eighty-five percent of the estimated post-secondary 
vocational instructional aid entitlement for instructional 
expenditures for each district the technical institutes shall be 
paid during the fiscal year of entitlement for which it is 
appropriated in 11 uniform monthly payments from July to 
May.  The final payment must be made on the first business day 
of July in the following fiscal year. 
    The amount of entitlement, adjusted for actual data, minus 
the payments made during the fiscal year of entitlement, shall 
be the final adjustment paid to each district on the first 
business day of July in the fiscal year following entitlement. 
    Sec. 74.  Minnesota Statutes 1988, section 136C.43, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PURPOSE; APPROPRIATION.] For the purpose 
of providing money appropriated from the vocational technical 
building fund for the acquisition of public land, buildings, and 
capital improvements needed for the state plan for the 
administration of vocational education in accordance with the 
provisions of section 136C.42, when requested by the state board 
of education, the commissioner of finance shall sell and issue 
bonds of the state of Minnesota for the prompt and full payment 
of which, with interest thereon, the full faith and credit and 
taxing powers of the state are irrevocably pledged.  Bonds shall 
be issued pursuant to this section only as authorized by a law 
specifying the purpose thereof and the maximum amount of the 
proceeds authorized to be expended therefor, as set forth in 
section 136C.42.  Any such law, together with this section and 
the laws herein referred to, constitutes complete authority for 
the issue, and such bonds shall not be subject to restrictions 
or limitations contained in any other law.  
    Sec. 75.  Minnesota Statutes 1988, section 169.44, 
subdivision 18, is amended to read: 
    Subd. 18.  [MOTOR COACH USED FOR SCHOOL ACTIVITIES.] A 
school district or a technical institute shall not acquire a 
motor coach.  Motor coaches acquired by school districts or area 
vocational technical institutes before March 26, 1986 may be 
used by school districts or area vocational technical institutes 
only to transport students participating in school activities, 
their instructors, and supporting personnel, to and from school 
activities.  The motor coaches shall not in any way be outwardly 
equipped and identified as school buses.  A motor coach operated 
under this subdivision is not a school bus for purposes of 
section 124.225.  By August 1, 1986, the state board of 
education shall adopt rules governing the equipment, 
identification, operation, inspection, and certification of 
motor coaches operated under this subdivision.  After January 1, 
1998, a school district or technical institute shall not own or 
operate a motor coach for any purpose. 
    Sec. 76.  Minnesota Statutes 1988, section 275.125, 
subdivision 14a, is amended to read: 
    Subd. 14a.  [LEVY FOR LOCAL SHARE OF TECHNICAL INSTITUTE 
CONSTRUCTION.] (a) The definitions in section 136C.02 apply to 
this subdivision.  "Construction" includes acquisition and 
betterment of land, buildings, and capital improvements for 
technical institutes. 
    (b) A district maintaining a technical institute may levy 
for its local share of the cost of construction of technical 
institute facilities for the technical institute as provided in 
this subdivision.  
    (c) The construction must be authorized by a specific 
legislative act pursuant to section 136C.07, subdivision 5, 
after January 1, 1980.  The specific legislative act must 
require that the state to pay part of the cost of technical 
institute construction for post-secondary vocational purposes 
shall be financed by the state and that the district to pay part 
of the cost of construction for post-secondary vocational 
purposes shall be financed by the school district operating the 
technical institute.  
    (d) The district may levy an amount equal to the local 
share of the cost of technical institute construction for 
post-secondary vocational purposes, minus the amount of 
any unappropriated unreserved net balance in the 
district's post-secondary vocational technical institute 
building construction fund.  A district may levy the total 
amount authorized by this subdivision in one year, or a 
proportionate amount of the total authorized amount each year 
for up to three successive years.  
    (e) By the July August 1 before a district certifies the 
first levy pursuant to this subdivision for the local share of 
any construction project, at least three weeks published notice 
of the proposed levy shall be given in the legal newspaper with 
the largest circulation in the district.  The notice shall state 
the purpose and duration of the proposed levy, the duration of 
the proposed levy and the amount of the proposed levy in dollars 
and mills.  Upon petition within 20 days after the notice of the 
greater of (a) 50 voters, or (b) 15 percent of the number of 
voters who voted in the district at the most recent regular 
school board election, the board shall call a referendum on the 
proposed levy. The referendum shall be held on a date set by the 
school board, but no later than the August September 20 before 
the levy is certified.  The question on the ballot shall state 
the amount of the proposed levy in mills on the district's 
adjusted gross tax capacity and in dollars in the first year of 
the proposed levy. 
    (f) For the purposes of this subdivision, "construction" 
includes the acquisition and betterment of land, buildings and 
capital improvements for technical institutes.  
    (g) A district may not levy for the cost of a construction 
project pursuant to this subdivision if it issues any bonds to 
finance any costs of the project. 
    Sec. 77.  Minnesota Statutes 1988, section 354.094, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [EXCEPTION FOR LEAVES SINCE 1981-1982.] 
Notwithstanding subdivision 1, the following provisions apply to 
elementary, and secondary school and area vocational technical 
school institute teachers whose extended leaves begin in the 
1981-1982, 1982-1983, or 1983-1984 school year:  
    (a) A member whose application states the intention to pay 
employee contributions into the fund, requests state payment of 
employer contributions, and is approved by the commissioner 
within the limits of section 125.60, subdivision 7, may pay 
employee contributions and receive allowable service credit 
toward annuities and other benefits under this chapter for each 
year of the leave during the period of the leave which shall not 
exceed five years; 
    (b) The state shall pay employer contributions into the 
fund for a member described in clause (a) for no more than the 
first three years of the leave, provided the member who is on 
extended leave pays the employee contribution into the fund by 
the payment date specified in subdivision 1; 
    (c) A member whose application is approved as to the 
member's eligibility under section 125.60, subdivisions 1 and 2 
but whose application does not request state payment of employer 
contributions or is disapproved as to state payment of employer 
contributions, or who is in the fourth or fifth year of leave 
affected by clause (b) may pay employee contributions and 
receive allowable service credit as provided in subdivision 1 if 
the member and the employing school board make the required 
employer contribution, in any proportion which they may agree 
upon, by the payment date specified in subdivision 1.  
    Sec. 78.  Minnesota Statutes 1988, section 354.094, 
subdivision 1b, is amended to read: 
    Subd. 1b.  [PRE-MAY 16, 1981 LEAVE EXCEPTION.] 
Notwithstanding subdivision 1, the following provisions apply 
only to elementary, and secondary, school and area vocational 
technical school institute teachers whose extended leaves began 
in the 1978-1979, 1979-1980, or 1980-1981 school years:  
    (a) A member whose period of extended leave began on or 
before May 15, 1981, may pay employee contributions and receive 
allowable service credit toward annuities and other benefits 
under this chapter for each year of the leave during the period 
of the leave which does not exceed five years; 
    (b) The state shall pay employer contributions into the 
fund for a member described in clause (a) of this subdivision 
for each year of the leave for which the member who is on 
extended leave pays the employee's contribution into the fund by 
the payment date specified in subdivision 1.  
    Sec. 79.  Minnesota Statutes 1988, section 354A.091, 
subdivision 1a, is amended to read: 
    Subd. 1a.  [EXCEPTION FOR LEAVES SINCE 1981-1982.] 
Notwithstanding subdivision 1, the following provisions apply to 
elementary, and secondary school and area vocational technical 
school institute teachers whose extended leaves begin in the 
1981-1982, 1982-1983, or 1983-1984 school year:  
    (a) A member whose application states the intention to pay 
employee contributions to the applicable association, requests 
state payment of the employer contribution, and is approved by 
the commissioner within the limits of section 125.60, 
subdivision 7, may pay employee contributions to the applicable 
association and receive allowable service credit in that 
association for each year of leave during the period of the 
leave, which shall not exceed five years; 
    (b) The state shall pay employer contributions for a member 
described in clause (a) for no more than the first three years 
of the leave, provided the member who is on extended leave pays 
the employee contribution to the applicable association by the 
payment date specified in subdivision 1; 
    (c) A member whose application is approved as to the 
member's eligibility under section 125.60, subdivisions 1 and 2 
but whose application does not request state payment of employer 
contributions or is disapproved as to state payment of employer 
contributions, or who is in the fourth or fifth year of leave 
affected by clause (b) may pay employee contributions and school 
teachers whose extended leaves began in the 1978-1979, 1979-1980 
or 1980-1981 school years:  
     (a) A member whose period of extended leave began on or 
before May 15, 1981, may pay employee contributions and receive 
allowable service credit toward annuities and other benefits 
under this chapter for each year of the leave during the period 
of the leave which does not exceed five years; 
     (b) The state shall pay employer contributions into the 
applicable fund for a member described in clause (a) of this 
subdivision for each year of the leave for which the member who 
is on extended leave pays the employee's contribution into the 
fund by the payment date specified in subdivision 1.  
    Sec. 80.  Minnesota Statutes 1988, section 355.46, 
subdivision 3, is amended to read: 
    Subd. 3.  [SOCIAL SECURITY CONTRIBUTIONS.] The employer 
taxes due with respect to employment by educational employees 
who have made their selection pursuant to section 218(d)(6)(C) 
of the Social Security Act, shall be paid in the following 
manner: 
    (a) Contributions required to be made for current service 
by political subdivisions employing educational employees and 
payments required by section 355.49 shall be paid by the 
political subdivision.  Payments for school district or area 
vocational technical institute employees who are paid from 
normal operating funds, shall be made from the appropriate fund 
of the district or area vocational technical institute.  The 
state shall make payments for services rendered prior to July 1, 
1986. 
    (b) Contributions required to be made with respect to 
educational employees of state departments and institutions and 
payments required by section 355.49 shall be paid by the 
departments and institutions in accordance with the provisions 
of sections 355.49 and 355.50. 
    Sec. 81.  Laws 1988, chapter 703, article 1, section 23, is 
amended to read: 
    Sec. 23.  [FACULTY EXCHANGE PROGRAM.] 
    Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
exchange for the 1988-1989 1989-1990 and 1990-1991 academic year 
years is established to allow school districts and 
post-secondary institutions to arrange temporary exchanges 
between members of their instructional staff staffs.  These 
arrangements must be made on a voluntary, cooperative basis 
between the a school district and the post-secondary institution 
, or between post-secondary institutions.  Exchanges between 
post-secondary institutions may occur between campuses in the 
same system or in different systems. 
    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 or institution.  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 each 
participating 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 1991, 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, costs associated with the 
exchange, use of appropriations, and other relevant issues 
related to the exchange. 
    Sec. 82.  [EXCHANGES BETWEEN EDUCATION FACULTY.] 
    Subdivision 1.  [AUTHORITY, LIMITS.] The state university 
board and the board of regents of the University of Minnesota 
may develop programs to exchange faculty between colleges or 
schools of education and school districts, subject to section 
81, subdivision 3. 
    The programs must be used to assist in improving teacher 
education by involving current teachers in education courses and 
placing post-secondary faculty in elementary and secondary 
classrooms.  Programs must include exchanges that extend beyond 
the immediate service area of the institution to address the 
needs of different types of schools, students, and teachers. 
    Subd. 2.  [COMPENSATION.] The appropriations provided to 
the board of regents of the University of Minnesota and the 
state university board in the omnibus elementary and secondary 
education finance act, 1989 H.F. No. 654, are to defray the 
costs of participants in the faculty exchange under this 
section.  They are intended to compensate for expenses that are 
unavoidable and beyond the normal living expenses exchange 
participants would incur if they were not involved in this 
exchange.  The state university board, the board of regents of 
the University of Minnesota, and their respective campuses, in 
conjunction with the participating school districts, must 
control costs for all participants as much as possible, through 
means such as arranging housing exchanges, providing campus 
housing, and providing university, state, or school district 
cars for transportation.  Additionally the boards and campuses 
may seek other sources of funding to supplement these 
appropriations if necessary. 
    Sec. 83.  [EMERGENCY RULES.] 
    The higher education coordinating board may adopt emergency 
rules, as provided under Minnesota Statutes, sections 14.29 to 
14.36, for awarding child care grants for the 1989-1990 academic 
year.  The board shall consult with its financial aid advisory 
committee and the higher education advisory council before 
adopting the rules. 
    Sec. 84.  [TWO-WAY INTERACTIVE TELEVISION SYSTEMS.] 
    The information policy office in the department of 
administration, and the information policy advisory task force, 
shall consult with representatives of the HECB, the public 
post-secondary governing boards, private colleges, and the 
department of education, when developing the communications and 
technology capabilities, plans, and needs of state government.  
The criteria developed by the instructional technology task 
force, as reported to the 1989 legislature, shall be utilized 
for evaluating any projects or systems.  A report shall be 
submitted on the activities, plans, financial implications, and 
anticipated outcomes, to the chairs of the finance and 
appropriation committees by February 15, 1990.  Until the report 
is received by the legislature, the public post-secondary 
systems may not initiate action to purchase, contract for, or 
otherwise commit themselves to new two-way interactive 
television equipment, or to systems or service (other than 
maintenance agreements), that expand the capacity of two-way 
interactive television, beyond those which are contracted for 
prior to enactment of this act. 
    Sec. 85.  [REPEALER.] 
    Subdivision 1.  [JUNE 30, 1989.] Minnesota Statutes 1988, 
sections 121.936, subdivision 1a; 136A.042; 136A.111; 136A.121, 
subdivision 15; 136A.14; 136A.141; 136A.142; 136A.51; 136A.52; 
136A.53; 136A.55; 136C.07, subdivisions 1, 2, 3, and 6; 136C.21; 
136C.211; 136C.212; 136C.213; 136C.22; 136C.221; 136C.222; 
136C.223; 136C.25; 136C.26, subdivisions 1, 3, 4, 5, 6, 7, and 
9; 136C.27, subdivision 2; 136C.28, subdivisions 1 and 2; 
136C.29; 136C.33, subdivisions 1 and 2; 136C.42; 136C.43, 
subdivisions 1, 2, and 3; 256H.07; and 256H.13 are repealed June 
30, 1989. 
    Subd. 2.  [JUNE 30, 1990.] Minnesota Statutes 1988, 
sections 136A.09; 136A.101, subdivision 6; 136A.121, 
subdivisions 1 and 4; and 136A.225 are repealed June 30, 1990. 
    Sec. 86.  [EFFECTIVE DATE.] 
    Section 4, subdivision 4; section 5, subdivision 4; and 
section 84 are effective the day following final enactment. 
    Presented to the governor May 30, 1989 
    Signed by the governor May 30, 1989, 12:43 p.m.