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Minnesota Legislature

Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1990 

                        CHAPTER 591-S.F.No. 2618 
           An act relating to public administration; 
          appropriating money or reducing appropriations to the 
          higher education coordinating board, regents of the 
          University of Minnesota, state university board, state 
          board for community colleges, and state board of 
          vocational technical education, with certain 
          conditions; clarifying the duties and powers of the 
          higher education coordinating board; expanding 
          authorization for tuition reciprocity agreements; 
          regulating off-campus centers; establishing rural 
          health programs, and a public safety officer's 
          survivor benefits program; providing for planning, 
          operations, and acquisitions; regulating public 
          post-secondary education system plans; requiring 
          reports; adjusting contributions to state system 
          retirement plans; amending Minnesota Statutes 1988, 
          sections 136.62, by adding a subdivision; 136A.15, as 
          amended; 136C.04, by adding a subdivision; 136C.05, by 
          adding a subdivision; 136C.08, subdivision 2; 137.022, 
          subdivisions 1 and 3; 352.92, subdivision 2; 352B.02, 
          subdivision 1c; and 354.42, subdivision 5; Minnesota 
          Statutes 1989 Supplement, sections 16B.335, 
          subdivision 2; 135A.06, subdivision 3, and by adding a 
          subdivision; 136.03, by adding a subdivision; 136A.04; 
          136A.05; 136A.08; and 352.04, subdivisions 2 and 3; 
          Laws 1989, chapter 293, section 2, subdivision 2; 
          proposing coding for new law in Minnesota Statutes, 
          chapters 136A, 137, and 299A; repealing Minnesota 
          Statutes 1988, sections 176B.01, as amended; 176B.02; 
          176B.03; 176B.04; and 176B.05. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                                ARTICLE 1

                             APPROPRIATIONS
    Section 1.  [APPROPRIATIONS FOR HIGHER EDUCATION.] 
    The dollar amounts in the columns under "APPROPRIATIONS" 
are added to (or, if shown in parentheses, are subtracted from) 
the appropriations in Laws 1989, chapter 293, or other law to 
the specified agencies.  The appropriations are from the general 
fund or other named fund and are available for the fiscal years 
indicated for each purpose.  The figure 1990 or 1991 means that 
the addition to or subtraction from the appropriations listed 
under the figure are for the fiscal year ending June 30, 1990, 
or June 30, 1991, respectively.  If only one figure is shown in 
the text for a specified purpose, the addition or subtraction is 
for 1991 unless the context intends another fiscal year. 

                            SUMMARY BY FUND 
                              1990         1991         TOTAL
GENERAL              $(9,783,400)   $(11,276,600) $(21,060,000)

                     Summary by Agency -- All Funds 
Higher Education 
 Coordinating Board   (9,783,400)     (4,097,100)  (13,880,500)
State Board of Vocational
 Technical Education                  (1,583,500)   (1,583,500)
State Board for Community 
 College                              (1,076,500)   (1,076,500)
State University Board                (1,930,100)   (1,930,100)
Regents of the University 
 of Minnesota                         (2,589,400)   (2,589,400)
                                           APPROPRIATIONS 
                                  Available for the Fiscal Year
                                            Ending June 30
                                           1990        1991
    Sec. 2.  HIGHER EDUCATION 
COORDINATING BOARD - TOTAL            (9,783,400)   (4,097,100)
     Subdivision 1.  Agency Administration
Affiliate membership in the Western 
Interstate Commission on Higher 
Education. 
               46,300
     Subd. 2.  State Grants
  (9,783,400)  (5,033,400)
 The HECB shall study ways to redefine 
the cost of living allowance to more 
accurately reflect actual costs of 
living.  The board shall examine ways 
to develop cost of living categories to 
differentiate among students with 
different living arrangements and 
family responsibilities, including 
child care.  The board shall examine 
whether other items involved in the 
cost of living should be used in 
determining categories.  The board 
shall report its findings and 
recommendations to the education 
divisions of the house appropriations 
and senate finance committees by 
February 1, 1991. 
The HECB shall examine the feasibility 
of using a student loan program, 
including the SELF program, to assist 
students whose eligibility for child 
care grants has expired.  The board 
shall report its findings and 
recommendations to the education 
divisions of the house appropriations 
and senate finance committees by 
February 1, 1991. 
The HECB shall review the percentage of 
child care grant money authorized for 
administrative costs on campuses, 
report on its expenditures of this 
money, and make any recommendations for 
changing the percentage levels to the 
education divisions of the house 
appropriations and senate finance 
committees as part of its 1991 biennial 
budget request. 
The HECB shall work with the Minnesota 
Association of Financial Aid 
Administrators to simplify the 
procedures and methods required to 
calculate child care grants.  The HECB 
shall report on its progress towards 
simplification as part of its 1991 
biennial budget request. 
During the biennium, a campus, 
post-secondary system, or school 
district must not reallocate child care 
program administration money, unless 
the money is reallocated to child care 
grants. 
The HECB shall amend its child care 
grant rules to include provisions for 
campuses that contract with counties 
for program administration.  The rules 
shall make the campuses accountable for 
county decisions related to the 
program, and shall require the campuses 
to develop on-campus mechanisms for 
student appeals. 
     Subd. 3.  Interstate Tuition Reciprocity 
              750,000
If an unencumbered balance is projected 
in the appropriation for the state 
grant program after October 1, 1990, 
the HECB may transfer funds to the 
appropriation for Interstate Tuition 
Reciprocity.  Prior to the transfer, 
the HECB shall seek the advisory 
recommendation of the legislative 
advisory commission. 
     Subd. 4.  Rural Health Programs 
              140,000
Of this amount, $120,000 is for 
pre-nursing grants and $20,000 is for 
program administration. 
     Subd. 5.  The higher education 
coordinating board may transfer 
unencumbered balances from the 
appropriations in this section to the 
state 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 - TOTAL               (1,583,500)
     Subdivision 1.  General Base Reduction 
             (840,500)
     Subd. 2.  Teachers' Retirement Plan 
Employers' Contribution 
             (793,000)
     Subd. 3.  State Council on Vocational 
Technical Education 
               50,000
    Sec. 4.  STATE BOARD FOR COMMUNITY 
COLLEGES - TOTAL                                     (1,076,500)
     Subdivision 1.  General Base Reduction 
             (466,500)
     Subd. 2.  Teachers' Retirement Plan and 
Minnesota State Retirement System
Employers' Contribution 
             (610,000)
     Sec. 5.  STATE UNIVERSITY
BOARD - TOTAL                                        (1,930,100)
     Subdivision 1.  General Base Reduction 
             (858,100)
     Subd. 2.  Teachers' Retirement Plan and
Minnesota State Retirement System
Employers' Contribution 
           (1,072,000)
     Subd. 3.  Authorized Transfer 
The appropriation in Laws 1987, chapter 
400, section 19, subdivision 4, item 
(c), may be used to acquire land 
adjacent to, or in the vicinity of, 
Moorhead State University as needed to 
develop the campus, and may be used to 
construct parking spaces on the campus. 
    Sec. 6.  REGENTS OF THE 
UNIVERSITY OF MINNESOTA - TOTAL                      (2,589,400)
     Subdivision 1.  Enrollment Projections
 With respect to Laws 1989, chapter 293, 
section 6, subdivision 2(a), the 7th 
paragraph, the regular session 
enrollment projected for the 
appropriation is 35,679 full-year 
equivalent undergraduate students for 
the first year and 33,750 for the 
second year.  For developing the next 
biennial budget request, the regular 
session undergraduate enrollment used 
for the average cost funding formula 
must not exceed these numbers.  For the 
biennium ending June 30, 1991, tuition 
income resulting from students in 
excess of the projections reduces the 
general fund appropriation by a like 
dollar amount.  The legislature further 
anticipates that the regular session 
full-year equivalent undergraduate 
students must not exceed 31,600 by 
fiscal year 1993.  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. 
     Subd. 2.  General Base Reduction 
           (2,235,400)
     Subd. 3.  Minnesota State Retirement
System Employers' Contribution 
             (554,000)
     Subd. 4.  Rural Physicians' Associates 
Program 
              200,000
$200,000 is to increase participation 
in the rural physicians' associates 
program.  The Minnesota Medical 
Association shall assist the 
university's effort by locating the 
preceptors for the program.  The board 
of regents shall report, as part of its 
1991 biennial budget request, on the 
feasibility of increasing the 
participation to approximately 40 
students per year, on the need to 
increase the subsidy per student, and 
on the cost implications of these 
increases. 
    Sec. 7.  POST-SECONDARY SYSTEMS 
     Subdivision 1.  The public 
post-secondary governing boards, the 
department of finance, and the 
department of administration shall 
develop jointly a set of detailed 
criteria to assist the legislature in 
making decisions on child care facility 
requests.  The boards and departments 
shall submit a joint report to the 
education divisions of the house 
appropriations and senate finance 
committees by March 1, 1991. 
     Subd. 2.  Each public higher education 
system shall develop a parking plan.  
The plan shall include consideration of 
establishing parking fees for each 
campus at a level that will provide 
adequate revenue to construct, repair, 
and maintain the parking lots.  The 
plan must be submitted to the 
legislature in the 1991 biennial budget 
document. 

                               ARTICLE 2

                                PENSIONS
    Section 1.  Minnesota Statutes 1989 Supplement, section 
352.04, subdivision 2, is amended to read: 
    Subd. 2.  [EMPLOYEE CONTRIBUTIONS.] The employee 
contribution to the fund must be equal to 4.34 4.15 percent of 
salary, beginning with the first full pay period after June 30, 
1989.  These contributions must be made by deduction from salary 
as provided in subdivision 4. 
    Sec. 2.  Minnesota Statutes 1989 Supplement, section 
352.04, subdivision 3, is amended to read: 
    Subd. 3.  [EMPLOYER CONTRIBUTIONS.] (a) The employer 
contribution to the fund must be equal to 4.51 4.29 percent of 
salary beginning with the first full pay period after June 30, 
1989. 
    (b) By January 1 of each year, the board of directors shall 
report to the legislative commission on pensions and retirement, 
the chair of the committee on appropriations of the house of 
representatives, and the chair of the committee on finance of 
the senate on the amount raised by the employer and employee 
contribution rates in effect and whether the total amount is 
less than, the same as, or more than the actuarial requirement 
determined under section 356.215. 
    Sec. 3.  Minnesota Statutes 1988, section 352.92, 
subdivision 2, is amended to read: 
    Subd. 2.  [EMPLOYER CONTRIBUTIONS.] Beginning with the 
first full pay period after July 1, 1984, (a) In lieu of 
employer contributions payable under section 352.04, subdivision 
3, the employer shall contribute for covered correctional 
employees an amount equal to 8.70 6.27 percent of salary.  
    (b) By January 1 of each year, the board of directors shall 
report to the legislative commission on pensions and retirement, 
the chair of the committee on appropriations of the house of 
representatives, and the chair of the committee on finance of 
the senate on the amount raised by the employer and employee 
contribution rates in effect and whether the total amount is 
less than, the same as, or more than the actuarial requirement 
determined under section 356.215. 
    Sec. 4.  Minnesota Statutes 1988, section 352B.02, 
subdivision 1c, is amended to read: 
    Subd. 1c.  [EMPLOYER CONTRIBUTIONS.] (a) In addition to 
member contributions, department heads shall pay a sum equal 
to 18.9 14.88 percent of the salary upon which deductions were 
made, which shall constitute the employer contribution to the 
fund.  Department contributions must be paid out of money 
appropriated to departments for this purpose. 
    (b) By January 1 of each year, the board of directors shall 
report to the legislative commission on pensions and retirement, 
the chair of the committee on appropriations of the house of 
representatives, and the chair of the committee on finance of 
the senate on the amount raised by the employer and employee 
contribution rates in effect and whether the total amount is 
less than, the same as, or more than the actuarial requirement 
determined under section 356.215. 
    Sec. 5.  Minnesota Statutes 1988, section 354.42, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADDITIONAL EMPLOYER CONTRIBUTION.] To amortize 
the unfunded actuarial accrued liability computed under the 
entry age actuarial cost method and disclosed under the annual 
actuarial valuations prepared by the commission-retained actuary 
under section 356.215, an additional employer contribution shall 
be made in the amount of 4.48 3.64 percent of the salary of each 
member.  
    This contribution shall must be made in the manner provided 
in section 354.43. 
    By January 1 of each year, the board of directors shall 
report to the legislative commission on pensions and retirement, 
the chair of the committee on appropriations of the house of 
representatives, and the chair of the committee on finance of 
the senate on the amount raised by the additional employer 
contribution rate in effect and whether that amount is less 
than, the same as, or more than the required amortization 
contribution determined under section 356.215. 
    Sec. 6.  [STATE-PAID HEALTH INSURANCE; CERTAIN EMPLOYEES.] 
    An executive branch employee who is covered by a retirement 
plan established under Minnesota Statutes, chapter 352 or 352B, 
or an employee of the Minnesota state retirement system, the 
teachers retirement association, or the public employees 
retirement association, is eligible for state-paid hospital, 
medical, and dental benefits if the person:  
     (1) is eligible for state-paid insurance under Minnesota 
Statutes, section 43A.18, or other law; 
     (2) has at least 25 years of state service; 
     (3) upon retirement is immediately eligible for a 
retirement annuity; 
     (4) is at least 55 and not yet 65 years of age; and 
     (5) retires after the effective date of this section and 
before July 1, 1990.  
    An employee who is eligible both for the health insurance 
benefit under this section and for an early retirement incentive 
under a collective bargaining agreement or plan established 
under Minnesota Statutes, section 43A.18, must choose between 
that early retirement incentive and the benefit provided under 
this section and may not have both.  For purposes of this 
section, a person retires when the person terminates active 
employment in state service and applies for a retirement 
annuity.  The retired employee is eligible for coverages to 
which the person was entitled at the time of retirement, subject 
to any changes in coverage through collective bargaining or 
plans established under Minnesota Statutes, section 43A.18, for 
employees in positions equivalent to the position from which 
they retired.  The retired employee is not eligible for 
state-paid life insurance.  Eligibility ceases when the retired 
employee attains the age of 65, or when the employee chooses not 
to receive the annuity for which the employee has applied, or 
when the employee is eligible for employer-paid health insurance 
from a new employer.  Coverages must be coordinated with 
relevant health insurance benefits provided through the 
federally sponsored Medicare program. 
    An employee who retires under this section using the Rule 
of 90 must not be included in the calculations required by 
Minnesota Statutes, section 356.85. 
    Sec. 7.  [APPROPRIATION REDUCTIONS.] 
   The sums shown in parentheses are reduced from the 
appropriations from the general fund, or another named fund, for 
the fiscal year ending June 30, 1990, to the agencies indicated. 
(a) General fund                                    (2,206,000)
(b) Trunk highway fund                              (1,864,000)
(c) Other funds                                     (1,149,000)
With the exception of appropriations 
made to the University of Minnesota, 
the Community College System, the 
Technical College System, and the State 
University System, the commissioner of 
finance shall reduce each state 
agency's fiscal year 1991 appropriation 
by an amount equal to the sum of: 
 (1) .22 percent of the agency's fiscal 
year 1991 salaries paid to employees 
covered by the general state employee 
retirement plan established in 
Minnesota Statutes, chapter 352. 
 (2) 2.43 percent of the agency's fiscal 
year 1991 salaries paid to employees 
covered by the correctional employees 
retirement plan established in 
Minnesota Statutes, chapter 352. 
 (3) 4.02 percent of the agency's fiscal 
year 1991 salaries paid to employees 
covered by the state patrol retirement 
plan established in Minnesota Statutes, 
section 352B.02. 
 (4) .84 percent of the agency's fiscal 
year 1991 salaries paid to employees 
covered by the teacher's retirement 
plan established in Minnesota Statutes, 
chapter 354. 
    The appropriation reductions made under this section are 
permanent reductions to each agency's budget. 
    Sec. 8.  [EFFECTIVE DATES.] 
    Sections 1 to 5 are effective July 1, 1990, and apply to 
pay periods beginning with the first full pay period after June 
30, 1990. 
    Section 6 is effective the day following final enactment. 

                               ARTICLE 3

                         PLANNING AND OPERATIONS
    Section 1.  [LEGISLATIVE INTENT.] 
    During the biennium, to ensure fiscal responsibility and to 
protect current levels of academic quality and funding, the 
legislature intends that greater oversight be given to (1) the 
development and establishment of off-campus post-secondary 
centers, permanent sites, and other large-scale or long-term 
operations that are intended to provide academic programs, 
courses, or student services; and (2) the management of 
enrollment on and off campus. 
    Sec. 2.  Minnesota Statutes 1989 Supplement, 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, including at least information for each site 
from the inventory established in section 9; 
    (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; 
    (6) estimated financial costs and savings of alternative 
plans for (i) adjusting facilities, staff, and programs to 
changing enrollments and fiscal resources, and (ii) managing 
enrollments and resources to better utilize existing facilities 
and staff, and to protect academic quality; 
    (7) opportunities for providing services cooperatively with 
other public and private institutions in the same geographic 
area; and 
    (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. 3.  Minnesota Statutes 1989 Supplement, section 
135A.06, is amended by adding a subdivision to read: 
    Subd. 6.  [SUBMISSION TO LEGISLATURE.] Each public 
post-secondary governing board shall submit the information on 
off-campus sites required in subdivision 3, clause (4), to the 
legislature with its biennial budget request in odd-numbered 
years, and shall update the information with its supplemental 
budget request in the even-numbered years.  The board shall 
provide detailed information on the use of state appropriated 
funds in support of each site, including information on the 
effects on campuses of funding off-campus sites. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
136.03, is amended by adding a subdivision to read: 
    Subd. 3.  The state board and the state universities must 
not establish any off-campus centers or other permanent sites 
located off state university campuses to provide academic 
programs, courses, or student services without authorizing 
legislation.  For the purposes of this subdivision, the campus 
of Metropolitan State University is the seven-county 
metropolitan area. 
    Sec. 5.  Minnesota Statutes 1988, section 136.62, is 
amended by adding a subdivision to read: 
    Subd. 8.  The state board and the community colleges must 
not establish any off-campus centers or other permanent sites 
located off community college campuses to provide academic 
programs, courses, or student services without authorizing 
legislation. 
    Sec. 6.  Minnesota Statutes 1989 Supplement, section 
136A.04, is amended to read: 
    136A.04 [DUTIES.] 
    Subdivision 1.  The higher education coordinating board 
shall:  
    (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; 
    (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; 
    (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; 
    (4) review, approve or disapprove, make recommendations, 
and identify priorities with respect to all proposals for 
new or, additional, or changes in existing programs or 
large-scale or permanent sites 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, public post-secondary 
institutions and, with respect to programs only, 
private collegiate and noncollegiate post-secondary 
institutions.  The board shall forward its recommendations on 
sites to the chairs of the house appropriations and senate 
finance committees.  The board shall also periodically review 
existing programs and recommend discontinuing or modifying any 
existing program.  When reviewing new or existing programs a 
site or program, the board shall consider whether the program it 
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; 
    (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 public 
post-secondary institutions, which includes the relating of 
dollars to program output; 
    (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 public post-secondary institutions 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; 
    (7) obtain from private post-secondary institutions 
receiving state funds a report on their use of those funds; 
    (8) continuously monitor and study the transferability of 
credits 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 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 state director of vocational 
technical education. 
    Sec. 7.  Minnesota Statutes 1988, section 136C.04, is 
amended by adding a subdivision to read: 
    Subd. 20.  The state board and the technical colleges must 
not establish any off-campus centers or other permanent sites 
located off technical college campuses to provide academic 
programs, courses, or student services without authorizing 
legislation. 
    Sec. 8.  [137.37] [OFF-CAMPUS SITES AND CENTERS.] 
    The board of regents and the university campuses are 
requested to not establish any off-campus centers or other 
permanent sites located off university campuses to provide 
academic programs, courses, or student services without 
authorizing legislation. 
    Sec. 9.  [INVENTORY.] 
    Subdivision 1.  [HECB.] By November 1, 1990, the higher 
education coordinating board shall compile an inventory of all 
existing off-campus sites and centers for each post-secondary 
system and institution that includes at least the following 
information:  total full year equivalent and head count 
enrollment, number of course offerings in each field of study, 
degrees available and number awarded, location and type of 
facilities, leasing or other arrangements and cost, and the 
amount and sources of funding.  The board shall also compile an 
inventory of program offerings on the campuses and at the 
off-campus sites. 
    Subd. 2.  [HEAC.] The higher education advisory council, in 
cooperation with the higher education coordinating board, shall 
determine categories of off-campus sites and criteria to use in 
placing sites within categories. 
    Subd. 3.  [HECB.] The higher education coordinating board, 
and the post-secondary governing boards, shall review the 
categories and criteria and the information included in the 
inventory to determine whether these are sufficient for 
incorporating into system planning activities and enhanced 
program review activities.  As part of its review, the HECB 
shall examine duplication in programs offered on and off campus 
and the level of the systems' cooperative efforts.  The board 
shall also consider overlap in system missions.  The HECB shall 
report its findings and recommendations to the house 
appropriations and senate finance committees by February 15, 
1991. 
    Sec. 10.  [CONDITIONS.] 
    (a) The state university board, the state board for 
community colleges, the state board of vocational technical 
education, and their respective campuses must not enter into new 
long-term lease arrangements, significantly increase the course 
offerings at off-campus sites, enter any 2 + 2 arrangements, or 
significantly increase staffing levels for off-campus sites 
between the effective date of this section and the end of the 
1990-1991 academic year.  A current long-term lease may be 
renewed if it expires during this period.  The board of regents 
is requested to abide by these conditions until the end of the 
1990-1991 academic year. 
    (b) This section does not apply to actions of Metropolitan 
State University that are part of its plan to consolidate its 
sites in the seven-county metropolitan area.  The state 
university board shall consult with the chairs of the house 
appropriations and senate finance committees in carrying out its 
plans.  For purposes of this paragraph, "plan to consolidate" 
does not include entering into any 2 + 2 arrangements.  
    Sec. 11.  [ENROLLMENT REPORT.] 
    Each public post-secondary governing board, excluding the 
board of regents, shall develop a plan for managing 
enrollments.  The plan must include consideration of methods 
of:  encouraging better student preparation, redistributing 
selected students or programs, encouraging students to complete 
programs earlier, using existing space more efficiently, 
changing marketing strategies, and reducing duplication of 
programs by suggesting which academic and technical programs or 
courses would most appropriately be offered on each existing 
campus in the state university, community college, and technical 
college system.  The plan must address ways in which each campus 
can provide sufficient access and preserve or improve quality, 
given its present physical capacity and funding level.  Each 
plan shall be submitted to HECB for review and comment by 
December 1, 1990.  The HECB shall submit the plans and its 
review to the house education and appropriations and senate 
education and finance committees by February 15, 1991.  The 
board of regents shall submit information on its enrollment 
management, the effects of its enrollment changes, and other 
measures of its progress in improving its quality of education 
to the committees by the same date. 
    Sec. 12.  [SYSTEM PLANS.] 
    Subdivision 1.  [ALL SYSTEMS.] Notwithstanding Minnesota 
Statutes, section 135A.06, in place of system plans, the public 
post-secondary systems shall submit plans for providing 
undergraduate and practitioner-oriented graduate programs in the 
seven-county metropolitan area to the higher education 
coordinating board. 
    Additionally, each public post-secondary governing board 
shall review its current mission statement.  Each board shall 
determine whether the statement accurately reflects its mission 
and the role of its system in the mission differentiation 
efforts, and recommend any changes its statement requires.  The 
boards shall submit their mission statements and recommendations 
to the higher education coordinating board with their 
metropolitan area plans by December 1, 1990. 
    The higher education coordinating board shall review and 
comment on the plans and mission statements and report to the 
legislature and governor by February 15, 1991. 
    Sec. 13.  [EFFECTIVE DATES.] 
    Subdivision 1.  Sections 1, 4, 5, and 7 to 12 are effective 
the day following final enactment.  
    Subd. 2.  Section 6 is effective July 1, 1991.  

                               ARTICLE 4

                          RURAL HEALTH PROGRAMS
    Section 1.  [136A.1351] [DEFINITION; DESIGNATED RURAL 
AREA.] 
    In sections 136A.1352 and 136A.1355, "designated rural area"
means a Minnesota community outside a ten-mile radius of a 
ranally area, which community:  (1) has more than 2,000 persons 
per physician, including seasonal variation; and (2) has 
notified the higher education coordinating board of its need for 
a physician or nurse for the community.  
    For purposes of this definition, "ranally area" means a 
central city or cities and any adjacent built-up areas, plus 
other communities not connected by continuously built-up areas 
if population density exceeds 60 persons per square mile and the 
work force of the other communities significantly depends on the 
central city or cities. 
    Sec. 2.  [136A.1352] [PRE-NURSING GRANTS.] 
    Subdivision 1.  [ESTABLISHMENT.] The higher education 
coordinating board shall provide grants to students who are 
entering or enrolled in registered nurse or licensed practical 
nurse programs, who have no previous nursing training or 
education, and who agree to practice in a designated rural area. 
    Subd. 2.  [ELIGIBILITY.] (a) To be eligible to receive a 
grant, a student must be:  
    (1) a resident of the state of Minnesota; 
    (2) enrolled in a Minnesota school, college, or program of 
nursing to complete an educational program that would lead to 
the student's first licensure as a licensed practical nurse or 
as a registered nurse; 
    (3) willing to agree to serve at least three of the first 
five years following licensure in a designated rural area; and 
    (4) able to meet the financial need criteria established in 
section 136A.121 and board rules. 
    (b) The grant must be awarded for one academic year, but is 
renewable for a maximum of six semesters or nine quarters of 
full-time study, or their equivalent, but cannot continue after 
receipt of the nursing degree or certificate. 
    Subd. 3.  [PRIORITY.] If insufficient funds are available 
to meet the needs of all eligible applicants, the board shall 
give priority to applicants who reside in a designated rural 
area and applicants attending post-secondary institutions 
outside the seven-county metropolitan area. 
    Subd. 4.  [DETERMINATION OF NEED; AMOUNT OF AWARD.] The 
determination of a student's need and the amount of a grant 
award must be based on the criteria established in section 
136A.121 and related board rules.  A grant under this section 
does not affect a recipient's eligibility for a state grant 
under section 136A.121. 
    Sec. 3.  [136A.1353] [NURSING GRANT PROGRAM FOR LICENSED 
PRACTICAL NURSES.] 
    Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
established under the authority of the higher education 
coordinating board to provide grants to licensed practical 
nurses who are entering or enrolled in an educational program 
that would lead to licensure as a registered nurse. 
    Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
a student must be:  
    (1) a resident of the state of Minnesota; 
    (2)  a licensed practical nurse enrolled in a Minnesota 
school, college, or program of nursing to complete an 
educational program that would lead to licensure as a registered 
nurse; and 
    (3) eligible under any additional criteria established by 
the school, college, or program of nursing in which the student 
is enrolled. 
    The grant must be awarded for one academic year but is 
renewable for a maximum of six semesters or nine quarters of 
full-time study, or their equivalent.  
    Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
school, college, or program of nursing that wishes to 
participate in the nursing grant program must apply to the 
higher education coordinating board for grant money, according 
to rules and policies established by the board.  A school, 
college, or program of nursing must establish criteria to use in 
awarding the grants.  The criteria must include consideration of 
the likelihood of a student's success in completing the nursing 
educational program and must give priority to students with the 
greatest financial need.  Grants must be for a minimum of $500, 
but must not exceed $2,500 per year.  Each school, college, or 
program of nursing must establish procedures for students to 
apply for and receive grants.  
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The higher education coordinating board 
shall distribute funds each year to the schools, colleges, or 
programs of nursing applying to participate in the nursing grant 
program based on the last academic year's enrollment of students 
in educational programs that would lead to licensure as a 
licensed practical nurse.  Money not used by a recipient nursing 
program must be returned to the higher education coordinating 
board for redistribution under this section.  The board shall 
establish an application process for interested schools, 
colleges, or programs of nursing.  Initial applications are due 
by January 1, 1991, and by January 1 of each later year.  By 
March 1, 1991, and by March 1 of each later year, the board 
shall notify each applicant school, college, or program of 
nursing of its approximate allocation of funds in order to allow 
the school, college, or program to determine the number of 
students that can be supported by the allocation.  The board 
shall distribute funds to the schools, colleges, or programs of 
nursing by August 1, 1991, and by August 1 of each later year. 
    Subd. 5.  [REPORT.] The schools, colleges, or programs of 
nursing participating in the nursing grant program shall report 
to the higher education coordinating board on their program 
activity as requested by the board.  
    Sec. 4.  [136A.1354] [NURSING GRANT PROGRAM FOR REGISTERED 
NURSES.] 
    Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
established under the authority of the higher education 
coordinating board to provide grants to registered nurses 
seeking to complete baccalaureate or master's degrees in nursing 
or a program of advanced nursing education. 
    Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
a student must be:  
    (1) licensed as a registered nurse in Minnesota and have 
been employed as a nurse in the state for at least one year 
before re-enrolling in college; 
    (2) a resident of the state of Minnesota; 
    (3) enrolled in a Minnesota school or college of nursing to 
complete a baccalaureate or master's degree, or a program of 
advanced nursing education; and 
    (4) eligible under any additional criteria established by 
the school, college of nursing, or program of advanced nursing 
education, in which the student is enrolled. 
    The grant must be awarded for one academic year but is 
renewable for a maximum of six semesters or nine quarters of 
full-time study, or their equivalent.  
    Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each school 
or college of nursing, or program of advanced nursing education, 
that wishes to participate in the nursing grant program must 
apply to the higher education coordinating board for money, 
according to rules and policies established by the board.  A 
school or college of nursing, or program of advanced nursing 
education, must establish criteria to use in awarding the 
grants.  The criteria must include consideration of the 
likelihood of a student's success in completing the educational 
program and must give priority to:  (1) students with the 
greatest financial need; and (2) students enrolling to complete 
baccalaureate degrees in nursing.  Grants must be for a minimum 
of $500, but must not exceed $2,500 per year.  Each school or 
college of nursing, or program of advanced nursing education, 
must establish procedures for students to apply for and receive 
grants.  
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The higher education coordinating board 
shall distribute funds each year to the schools or colleges of 
nursing, or programs of advanced nursing education, applying to 
participate in the nursing grant program based on the last 
academic year's enrollment of registered nurses in schools or 
colleges of nursing, or programs of advanced nursing education. 
Money not used by a recipient nursing program must be returned 
to the higher education coordinating board for redistribution 
under this section.  The board shall establish an application 
process for interested schools or colleges of nursing, or 
programs of advanced nursing education.  Initial applications 
are due by January 1, 1991, and by January 1 of each later 
year.  By March 1, 1991, and by March 1 of each later year, the 
board shall notify each applicant school or college or nursing, 
or program of advanced nursing education, of its approximate 
allocation of money to allow the school, college, or program to 
determine the number of students that can be supported by the 
allocation.  The board shall distribute money to the schools or 
colleges of nursing, or programs of advanced nursing education, 
by August 1, 1991, and by August 1 of each later year.  
    Subd. 5.  [REPORT.] The schools or colleges of nursing, or 
programs of advanced nursing education, participating in the 
nursing grant program shall report to the higher education 
coordinating board on their program activity as requested by the 
board.  
    Sec. 5.  [136A.1355] [RURAL PHYSICIAN EDUCATION ACCOUNT.] 
    Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
education account is established.  The higher education 
coordinating board shall use money from the account to establish 
a loan forgiveness program for medical students agreeing to 
practice in designated rural areas.  
    Subd. 2.  [ELIGIBILITY.] To be eligible to participate in 
the program, a prospective physician must submit a letter of 
interest to the higher education coordinating board while 
attending medical school.  Before completing the first year of 
residency, a student or resident must sign a contract to agree 
to serve at least three of the first five years following 
residency in a designated rural area. 
    Subd. 3.  [LOAN FORGIVENESS.] The higher education 
coordinating board may accept up to eight applicants per year 
for participation in the loan forgiveness program.  Applicants 
are responsible for securing their own loans.  Applicants chosen 
to participate in the loan forgiveness program may designate for 
each year of medical school, up to a maximum of four years, an 
agreed amount, not to exceed $10,000, as a qualified loan.  For 
each year that a participant serves as a physician in a 
designated rural area, up to a maximum of four years, the higher 
education coordinating board shall annually pay an amount equal 
to one year of qualified loans and the interest accrued on these 
loans.  Participants who move their practice from one designated 
rural area to another remain eligible for loan repayment.  
    Subd. 4.  [PENALTY FOR NONFULFILLMENT.] If a participant 
does not fulfill the required three-year minimum commitment of 
service in a designated rural area, the higher education 
coordinating board shall collect from the participant the amount 
paid by the board under the loan forgiveness program.  The 
higher education coordinating board shall deposit the money 
collected in the rural physician education account.  The board 
shall allow waivers of all or part of the money owed the board 
if emergency circumstances prevented fulfillment of the 
three-year service commitment.  
    Sec. 6.  [HECB EVALUATION.] 
    The higher education coordinating board shall evaluate the 
programs established in sections 2 to 5.  The initial evaluation 
must examine the progress in establishing the programs and must 
be reported to the house appropriations and senate finance 
committees by February 1, 1991.  Beginning in 1992, and each 
year thereafter, the HECB shall report to the committees by 
February 1 on the operation of each program.  The report must 
include an analysis of whether each program is achieving its 
goals and recommendations regarding whether each program should 
be terminated or changed. 
    Sec. 7.  [RULES.] 
    The higher education coordinating board shall develop 
rules, including emergency rules if necessary, to implement the 
programs in sections 2 to 5.  The emergency rules shall be 
effective until July 1, 1991. 
    Sec. 8.  [FUNDING.] 
    Sections 3 and 4 are funded as provided in the 1990 health 
and human services supplemental appropriations act.  
    Sec. 9. [SUNSET.] 
    Sections 1 to 6 are repealed on June 30, 1995. 

                               ARTICLE 5

               PUBLIC SAFETY OFFICER'S SURVIVOR BENEFITS
    Section 1.  [299A.41] [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] The definitions used in this 
section apply in this chapter. 
    Subd. 2.  [DEPENDENT CHILD.] A "dependent child" means a 
person who is unmarried and who was either living with or was 
receiving support contributions from the public safety officer 
at the time of death, including a child by birth, a stepchild, 
an adopted child, or a posthumous child, and who is: 
    (1) under 18 years of age; 
    (2) over 18 years of age and incapable of self-support 
because of physical or mental disability; or 
    (3) over 18 years of age and a student as defined by United 
States Code, title 5, section 8101. 
    Subd. 3.  [KILLED IN THE LINE OF DUTY.] "Killed in the line 
of duty" does not include deaths from natural causes.  
    Subd. 4.  [PUBLIC SAFETY OFFICER.] "Public safety officer" 
includes: 
    (1) a peace officer defined in section 626.84; 
    (2) a correction officer employed at a correctional 
facility and charged with maintaining the safety, security, 
discipline, and custody of inmates at the facility; 
    (3) a firefighter employed on a full-time basis by the 
state or by a fire department of a governmental subdivision of 
the state, who is engaged in the hazards of firefighting; 
    (4) a legally enrolled member of a volunteer fire 
department or member of an independent nonprofit firefighting 
corporation who is engaged in the hazards of firefighting; 
    (5) a good samaritan while complying with the request or 
direction of a public safety officer to assist the officer; 
    (6) a reserve police officer or a reserve deputy sheriff 
while acting under the supervision and authority of a political 
subdivision; 
    (7) a driver or attendant with a licensed basic or advanced 
life support transportation service who is engaged in providing 
emergency care; and 
    (8) a first responder who is certified by the commissioner 
of health to perform basic emergency skills before the arrival 
of a licensed ambulance service and who is a member of an 
organized service recognized by a local political subdivision to 
respond to medical emergencies to provide initial medical care 
before the arrival of an ambulance. 
    Subd. 5.  [SPOUSE.] "Spouse" means a person legally married 
to the decedent at the time of the decedent's death. 
    Sec. 2.  [299A.42] [PUBLIC SAFETY OFFICER'S BENEFIT 
ACCOUNT.] 
    The public safety officer's benefit account is created in 
the state treasury.  Money in the account consists of money 
transferred and appropriated to that account.  
    Sec. 3.  [299A.43] [ELIGIBILITY DETERMINATION; CONTESTED 
CASE.] 
    A challenge to a determination of eligibility by the 
commissioner of public safety must be heard as a contested case, 
except that the decision of the administrative law judge is 
binding on the parties to the proceeding.  The order of the 
administrative law judge is the final decision of the 
commissioner.  The hearing must be conducted according to 
sections 14.56 to 14.62 and is subject to appeal according to 
sections 14.63 to 14.68. 
    Sec. 4.  [299A.44] [DEATH BENEFIT.] 
    On certification to the governor by the commissioner of 
public safety that a public safety officer employed within this 
state has been killed in the line of duty, leaving a spouse or 
one or more eligible dependents, the commissioner of finance 
shall pay $100,000 from the public safety officer's benefit 
account, as follows: 
    (1) if there is no dependent child, to the spouse; 
    (2) if there is no spouse, to the dependent child or 
children in equal shares; 
    (3) if there are both a spouse and one or more dependent 
children, one-half to the spouse and one-half to the child or 
children, in equal shares; 
    (4) if there is no surviving spouse or dependent child or 
children, to the parent or parents dependent for support on the 
decedent, in equal shares; or 
    (5) if there is no surviving spouse, dependent child, or 
dependent parent, then no payment may be made from the public 
safety officer's benefit fund.  
    Sec. 5.  [299A.45] [EDUCATION BENEFIT.] 
    Subdivision 1.  [ELIGIBILITY.] Following certification 
under section 4 and compliance with this section and rules of 
the commissioner of public safety and the higher education 
coordinating board, dependent children less than 23 years of age 
and the surviving spouse of a public safety officer killed in 
the line of duty on or after January 1, 1973, are eligible to 
receive educational benefits under this section.  To qualify for 
an award, they must be enrolled in undergraduate degree or 
certificate programs after June 30, 1990, at 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.  Persons who have received a 
baccalaureate degree or have been enrolled full time or the 
equivalent of eight semesters or 12 quarters, whichever occurs 
first, are no longer eligible. 
    Subd. 2.  [AWARD AMOUNT.] (a) The amount of the award is: 
    (1) for public institutions, the actual tuition and fees 
charged by the institution, or 
    (2) for private institutions the lesser of (i) the actual 
tuition and fees charged by the institution or (ii) the highest 
tuition and fees charged by a public institution in Minnesota. 
    (b) An award under this subdivision must not affect a 
recipient's eligibility for a state grant under section 136A.121.
    Subd. 3.  [PAYMENT.] On proof of eligibility for this 
program, an eligible institution, on behalf of the student, 
shall request payment of the award from the higher education 
coordinating board.  An institution must not request payment 
unless the student is enrolled in or has completed the term for 
which the payment is intended. 
    Subd. 4.  [RENEWALS.] Each award must be given for one 
academic year and is renewable for a maximum of six semesters or 
nine quarters or their equivalent.  An award must not be given 
to a dependent child who is 23 years of age or older on the 
first day of the academic year. 
    Sec. 6.  [299A.46] [RULES.] 
    The commissioner of public safety may adopt rules, 
including emergency rules, under chapter 14 to implement, 
coordinate, and administer sections 1 to 4.  The higher 
education coordinating board may adopt rules, including 
emergency rules, to implement, coordinate, and administer 
section 5.  
    Sec. 7.  [REPORTS.] 
    By February 1, 1991, the commissioner of public safety 
shall report to the chairs of the house appropriations and 
senate finance committees on the use of the educational benefits 
provisions and on any recommendations to change these 
provisions.  The higher education coordinating board shall 
report on its expenditures as part of its 1991 biennial budget 
request. 
    Sec. 8.  [REPEALER.] 
    Minnesota Statutes 1988, sections 176B.01, as amended by 
Laws 1989, chapter 289, section 2; 176B.02; 176B.03; 176B.04; 
and 176B.05, are repealed. 
    Sec. 9.  [MONEY SET ASIDE.] 
    The higher education coordinating board shall set aside 
$100,000 appropriated for the state grant program under 
Minnesota Statutes, section 136A.121 for the purpose of section 
5. 
    Sec. 10.  [EFFECTIVE DATES.] 
    Sections 1 to 4, 6, and 8 are effective the day following 
final enactment.  Section 5 is effective July 1, 1990, and 
applies to all eligible surviving dependents and spouses of 
public safety officers killed in the line of duty on or after 
January 1, 1973. 

                                ARTICLE 6

                              MISCELLANEOUS
    Section 1.  Minnesota Statutes 1989 Supplement, section 
16B.335, subdivision 2, is amended to read: 
    Subd. 2.  [OTHER PROJECTS.] All other capital projects 
except for those contained in agency operations budgets, 
including building improvements, small structures at experiment 
stations, asbestos removal, life safety, PCB removal, 
tuckpointing, roof repair, code compliance, landscaping, 
drainage, electrical and mechanical systems work, paving of 
streets, parking lots, and the like must not proceed until the 
agency undertaking the project has notified the chair of the 
senate finance committee and the chair of the house 
appropriations committee that the work is ready to begin. 
    Sec. 2.  [136A.0411] [COLLECTING FEES.] 
    The board may charge fees for seminars, conferences, 
workshops, services, and materials.  The money is annually 
appropriated to the board. 
    Sec. 3.  Minnesota Statutes 1989 Supplement, section 
136A.05, is amended to read: 
    136A.05 [COOPERATION OF INSTITUTIONS OF HIGHER EDUCATION.] 
    Subdivision 1.  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. 
    Subd. 2.  The higher education coordinating board and 
public post-secondary institutions shall provide data, in a 
manner consistent with state and federal laws governing student 
records, to and as requested by the Minnesota house or senate 
for research projects and studies qualifying under Code of 
Federal Regulations, title 34, section 99.31(a)(6).  Private 
post-secondary institutions are requested to cooperate and 
provide data.  As a condition of receiving the data, the house 
or senate shall enter into an agreement with the board or 
institutions to ensure that the house or senate will not 
disclose any data that identify individuals. 
    Sec. 4.  Minnesota Statutes 1989 Supplement, section 
136A.08, is amended to read: 
    136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT 
TUITION WITH OTHER STATES OR PROVINCES.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the terms "province" and "provincial" mean the Canadian 
province of Manitoba. 
    Subdivision 1. Subd. 2.  [AUTHORIZATION.] The Minnesota 
higher education coordinating board may enter into agreements, 
on subjects that include remission of nonresident tuition for 
designated categories of students at public post-secondary 
institutions, with appropriate state or provincial agencies and 
public post-secondary institutions in other states or 
provinces.  The agreements shall be for the purpose of the 
mutual improvement of educational advantages for residents of 
this state and other states or provinces with whom agreements 
are made. 
    Subd. 1a. 3.  [WISCONSIN.] 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 is 
included, 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.  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. 4.  [NORTH DAKOTA; SOUTH DAKOTA.] 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, 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. 5.  [FINANCIAL AID.] The board may enter into an 
agreement, with a state or province 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 or province of residence for attending an eligible 
institution in the other state or province. 
    Subd. 4. 6.  [GOVERNING BOARD APPROVAL.] An agreement made 
by the board under this section is not valid as to a particular 
institution without the approval of that institution's state or 
provincial governing board.  A valid agreement under this 
subdivision that incurs additional financial liability to the 
state, beyond enrollment funding adjustments, must be submitted 
to the chairs of the senate finance and house appropriations 
committees for review.  The agreement remains valid unless it is 
disapproved in law. 
    Sec. 5.  Minnesota Statutes 1988, section 136A.15, as 
amended by Laws 1989, chapter 293, sections 33 to 35, is amended 
to read: 
    136A.15 [DEFINITIONS.] 
    Subdivision 1.  For purposes of sections 136A.15 to 
136A.1702, the terms defined in this section have the meanings 
ascribed to them. 
    Subd. 2.  "Academic year or its equivalent" shall be as 
defined in the federal regulations which govern the 
administration of the National Vocational Student Loan Insurance 
Act of 1965 and title IV of the Higher Education Act of 1965.  
    Subd. 3.  "Board" means the Minnesota higher education 
coordinating board. 
    Subd. 4.  "Director" means the executive director of the 
Minnesota higher education coordinating board. 
    Subd. 5.  "Province" means the Canadian province of 
Manitoba.  
    Subd. 5. 6.  "Eligible institution" means any public 
educational institution and any private educational institution, 
in any state which is approved by the United States commissioner 
of education in accordance with requirements set forth in the 
Higher Education Act of 1965, as amended.  It also includes any 
institution chartered in a province.  
    Subd. 6. 7.  "Eligible lender" means an eligible 
institution, an agency or instrumentality of a state, or a 
financial or credit institution (including an insurance company) 
which is subject to examination and supervision by an agency of 
the state of Minnesota or of the United States. 
    Subd. 7. 8.  "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 or province.  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. 
    Subd. 8. 9.  "Resident student" means a student who meets 
the conditions in section 136A.101, subdivision 8. 
    Sec. 6.  Minnesota Statutes 1988, section 136C.05, is 
amended by adding a subdivision to read: 
    Subd. 7.  [ADMINISTRATIVE SERVICES.] A technical college 
must not contract for administrative services with a school 
board unless the services are approved by the state director as 
part of an administrative services plan.  Each school board 
affected by this subdivision shall submit an administrative 
services plan to the state director. 
    Sec. 7.  Minnesota Statutes 1988, section 136C.08, 
subdivision 2, is amended to read: 
    Subd. 2.  Any fee established by the board pursuant to 
under the authority granted in subdivision 1 shall not exceed $1 
per day per vehicle must be approved by the state board.  
Parking fees collected shall be deposited in the general or 
repair and betterment fund of the school district or joint 
school district. 
    Sec. 8.  Minnesota Statutes 1988, section 137.022, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INVESTMENT.] The investment management of 
the permanent university fund shall be under the jurisdiction of 
the board of regents of the University of Minnesota, subject to 
any limitations imposed by the Constitution of the state of 
Minnesota, article XI, section 9.  All securities and cash held 
in the state treasury credited to the permanent university fund 
that are unappropriated or unencumbered are transferred and 
appropriated to the board of regents of the University of 
Minnesota solely for the purpose of investment by them, with the 
restriction that all such investment transactions be handled 
through the supervision of investment counselors, bank trust 
departments, or insurance companies which are organized, 
licensed, or have registered offices within the state of 
Minnesota or have agreed in writing to conduct such securities 
transactions and investment counseling under Minnesota law and 
the rules established by the department of commerce.  These.  
The investments shall be are restricted to those authorized as 
eligible for use in the Minnesota postretirement investment 
fund, section 11A.18, with the exception that corporate debt 
securities may be used to the extent of 80 percent of the 
portfolio the state board of investment may invest in under 
section 11A.24. 
    Sec. 9.  Minnesota Statutes 1988, section 137.022, 
subdivision 3, is amended to read: 
    Subd. 3.  [ENDOWED CHAIRS.] (a) The income from the 
permanent university fund must be used, and capital gains of the 
fund may be used, to help endow provide endowment support for 
professorial chairs in academic disciplines.  This income The 
endowment support for the chairs from the income and the capital 
gains must not total more than six percent per year of the 
36-month trailing average market value of the fund, as computed 
quarterly or otherwise as directed by the regents.  The 
endowment support from the income and the capital gains must not 
provide more than half the sum of the endowments endowment 
support for all chairs endowed, with nonstate sources providing 
the remainder.  The endowment support from the income and the 
capital gains may provide more than half the endowment support 
of an individual chair.  
    (b) If any portion of the annual appropriation that of the 
income is not used for this the purpose specified in paragraph 
(a), that portion lapses and must be added to the principal of 
the permanent university fund.  
    Sec. 10.  Laws 1989, chapter 293, section 2, subdivision 2, 
is amended to read:  
     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, improvement of intersystem 
cooperation, reduction of duplication, 
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; 
and 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 March 15, 1991.  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. 
    Sec. 11.  [LOURDES HALL PURCHASE.] 
    The state university board may purchase Lourdes Hall, 
located on the campus of the former college of St. Teresa in 
Winona, for use as a residential college.  The purchase may be 
by contract for deed.  If the contract is terminated for default 
by the board, the seller's exclusive remedies are to retain the 
payments previously made and repossess the property; the seller 
must not sue on the contract to recover any additional amounts 
due under the contract.  Responsibility for insuring the 
property during the term of the contract must be on the seller.  
Before finalizing the purchase agreement, the board shall obtain 
the advisory recommendations of the chairs of the senate finance 
and house appropriations committees.  
    Sec. 12.  [CONSUMER INFORMATION SYSTEM.] 
    The public post-secondary state governing boards, and 
private post-secondary colleges and occupational and technical 
institutions that enroll recipients of state grants, shall 
develop a consumer information system for occupational 
programs.  The system must be based on student placement and 
must include all subbaccalaureate occupational programs and all 
programs that lead to an occupation requiring certification, 
licensure, or testing for entry.  The first phase of the system 
must include all subbaccalaureate occupational programs.  The 
higher education coordinating board must coordinate the 
development of the system and must report on it to the chairs of 
the house appropriations and the senate finance committees by 
February 15, 1991. 
    Sec. 13.  [REPORT TO LEGISLATURE.] 
    The state board for community colleges shall report in the 
1991 biennial budget document, recommendations for the 
appropriate administrative structure for a community college 
campus at Cambridge.  In making its recommendations, the board 
shall review the combined administrative structure for the 
community colleges located in the Arrowhead and Clearwater 
regions of the state.  The center at Cambridge will be 
designated as a community college if the legislature enacts an 
appropriation specifically for this purpose. 
    Sec. 14.  [EFFECTIVE DATE.] 
    Sections 3 to 5, and 8 to 12 are effective the day 
following final enactment. 
    Presented to the governor April 28, 1990 
    Signed by the governor May 4, 1990, 2:14 p.m.