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Office of the Revisor of Statutes

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

  

                         Laws of Minnesota 1991 

                        CHAPTER 356-S.F.No. 1535 
           An act relating to higher education; appropriating 
          money for education and related purposes to the higher 
          education coordinating board, state board of technical 
          colleges, state board for community colleges, state 
          university board, University of Minnesota, higher 
          education board, and the Mayo medical foundation, with 
          certain conditions; creating the higher education 
          board; amending Minnesota Statutes 1990, sections 
          15A.081, subdivision 7b; 135A.03, subdivision 3, and 
          by adding subdivisions; 135A.05; 136.11, subdivisions 
          3, 5, and by adding a subdivision; 136.142, 
          subdivision 1; 136A.04, subdivision 1; 136A.101, 
          subdivisions 7, 8, and by adding subdivisions; 
          136A.121, subdivisions 6, 11, and 16; 136A.125, 
          subdivisions 2, 3, 4, 6, and by adding a subdivision; 
          136A.132, subdivisions 3, 5, and 6; 136A.1352, 
          subdivision 1; 136A.1353, subdivision 4; 136A.1355, 
          subdivision 1; 136A.233, subdivision 3; 179A.10, 
          subdivision 2; 298.28, subdivisions 4, 7, 10, 11, and 
          by adding a subdivision; 299A.45, subdivision 1; 
          626.84, subdivision 1; and Laws 1990, chapter 591, 
          article 3, section 10; proposing coding for new law in 
          Minnesota Statutes, chapters 135A; 136; 136A; 136C; 
          168; 298; and 626; proposing coding for new law as 
          Minnesota Statutes, chapter 136E; repealing Minnesota 
          Statutes, sections 136A.132; 136A.1351; and 626.86. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 

                               ARTICLE 1 

                             APPROPRIATIONS 
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 article.  The 
listing of an amount under the figure "1992" or "1993" in this 
article indicates that the amount is appropriated to be 
available for the fiscal year ending June 30, 1992, or June 30, 
1993, respectively.  "The first year" is fiscal year 1992.  "The 
second year" is fiscal year 1993.  "The biennium" is fiscal 
years 1992 and 1993. 

                             SUMMARY BY FUND
                          1992          1993           TOTAL
General            $  994,500,000 $  991,000,000 $1,985,500,000

                      SUMMARY BY AGENCY - ALL FUNDS
                          1992          1993           TOTAL
Higher Education Coordinating Board
                       97,669,000     93,494,000    191,163,000
State Board for Technical Colleges
                      165,466,000    165,061,000    330,527,000
State Board for Community Colleges
                       99,486,000    100,747,000    200,233,000
State University Board
                      183,134,000    179,666,000    362,800,000
Board of Regents of the University of Minnesota
                      446,760,000    451,076,000    897,836,000
Mayo Medical Foundation
                          985,000        956,000      1,941,000
Higher Education Board
                        1,000,000         0           1,000,000
                                           APPROPRIATIONS 
                                       Available for the Year 
                                           Ending June 30 
                                          1992         1993 
Sec. 2.  HIGHER EDUCATION
COORDINATING BOARD
Subdivision 1.  Total
Appropriation                         97,669,000     93,494,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Agency Administration
     3,324,000      3,317,000
 $75,000 each year is available for 
grants to initiate regional 
coordination of telecommunications in 
the delivery of instructional programs. 
The higher education coordinating board 
shall award the grants to Southwest 
State University, St. Cloud Technical 
College, and the University of 
Minnesota at Crookston to coordinate 
the development and operation of a 
cooperative arrangement with other 
post-secondary institutions and school 
districts in its geographic region.  
The arrangements shall provide for 
shared classes, avoidance of program 
duplication, facilitate transfer of 
credits, and other purposes.  The grant 
recipients must match the state grant.  
The coordinating board shall establish 
procedures for the grant applications.  
The coordinating board shall report on 
the grants to the 1993 legislature and 
disseminate results to educational 
institutions. 
 Each public post-secondary system shall 
review the number of hours that faculty 
devote each week to student services, 
teaching, preparation, research, 
community services, and other 
functions.  Each system shall provide 
the information in a coordinated format 
to the higher education coordinating 
board which shall summarize the 
information and review and comment on 
it.  The coordinating board shall 
provide the information to the 
education, finance, and appropriations 
committees by January 15, 1993. 
 The higher education coordinating board 
shall coordinate the development and 
operation of a statewide post-secondary 
graduate follow-up reporting system 
that will help students and prospective 
students make informed educational and 
occupational decisions.  The public 
post-secondary state governing boards 
and private post-secondary colleges and 
occupational and technical institutions 
that enroll recipients of state 
financial aid grants are responsible 
for the implementation and maintenance 
of the system.  The coordinating board 
shall develop appropriate reporting 
procedures and mechanisms; assemble, 
interpret, and publish annually the 
information that will be provided to 
consumers; and develop an audit 
program.  The system shall be based on 
the employment experience and further 
education of graduates.  The system 
shall also include information on all 
sub-baccalaureate 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 sub-baccalaureate occupational 
programs. 
 $58,000 in the second year is for 
membership in the Midwest Higher 
Education Compact.  The appropriation 
for this membership is in place of the 
appropriation for membership in the 
Western Interstate Commission on Higher 
Education. 
 $300,000 is for child care innovation 
grants. 
Subd. 3.  Average Cost Funding Task 
Force 
 The average cost funding task force 
shall review and refine uniform 
definitions of terms that are related 
to funding, including:  extension, 
continuing education, continuous 
enrollment, campuses, centers, sites, 
on-campus, off-campus, credit, 
noncredit, degree and nondegree, 
remedial, and college level.  The task 
force shall then examine:  changes in 
full-year equivalent enrollment since 
the enactment of average cost funding; 
the distribution of students in credit 
and noncredit programs and in degree 
and nondegree programs; other sources 
of funding for students and academic 
programs; and the changes in enrollment 
and cost among the average cost funding 
cells.  The department of finance shall 
assist each higher education system in 
implementing the definitions of 
enrollment so that they comply with 
these in making their calculations.  
The task force shall report its 
findings and recommendations to the 
education divisions of the 
appropriations and finance committees 
by February 1, 1992. 
Subd. 4.  State Grants
    80,643,000     78,050,000
 If the appropriation in this 
subdivision for either year is 
insufficient, the appropriation for the 
other year is available for it. 
 This appropriation contains money for 
increasing living allowances for state 
grants to $3,750 for the first year and 
$4,033 for the second year. 
 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. 
 $2,500,000 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. 
 The HECB shall review the use of the 
grants to dislocated rural workers to 
determine whether the grants are 
efficiently managed, and whether they 
provide for educational opportunities 
that would not otherwise be available.  
The board shall report on the findings 
for the future of this program to the 
education divisions of the 
appropriations and finance committees 
by January 15, 1992. 
Subd. 5.  Interstate Tuition
Reciprocity
     6,625,000      5,050,000
 If the appropriation in this 
subdivision for either year is 
insufficient, the appropriation for the 
other year is available to meet 
reciprocity contract obligations. 
Subd. 6.  State Work Study
     5,869,000      5,869,000
Subd. 7.  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. 
Subd. 8.  Minitex Library Program
     1,208,000      1,208,000
Subd. 9.  Balances Forward 
 An unencumbered balance in the first 
year under a subdivision in this 
section does not cancel but is 
available for the second year. 
Subd. 10.  Transfers 
 The higher education coordinating board 
may transfer unencumbered balances from 
the appropriations in this section to 
the state grant appropriation and the 
interstate tuition reciprocity 
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 TECHNICAL COLLEGES
Subdivision 1.  Total
Appropriation                      $165,466,000   $165,061,000
 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 
$224,454,000 the first year and 
$226,179,000 the second year. 
 The maximum full-year equivalent 
enrollment for the purpose of 
calculating the state share of 
instructional cost in the 1993 biennial 
budget document shall be 32,420.  Any 
enrollment exceeding this number shall 
be supported by tuition revenue only. 
 In each year, the board may spend no 
more than $34,553,000 from all sources 
for extension programs.  The 
legislature intends that this money be 
used primarily to support occupational 
programs, particularly those from which 
credits may be transferred to 
continuous enrollment programs.  In the 
next biennium, the legislature must 
consider the recommendation of the 
average cost funding task force under 
section 2, subdivision 3 when setting 
the general fund appropriation for 
extension.  This money is intended to 
cover all direct and indirect costs 
associated with extension.  The state 
board shall report on its fully 
allocated expenditures by February 1 of 
each year of the biennium. 
 The legislature intends that at least 
$8,430,000 in each year be spent for 
instructional equipment. 
 $525,000 in each year is for library 
development and acquisitions. 
Subd. 3.  Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$2,092,000 the first year and 
$1,546,000 the second year. * (The 
language "$1,546,000 the second year" 
was vetoed by the governor.  At the 
time of publication, the question of 
whether the veto is effective was under 
consideration by Minnesota courts.) 
 $1,057,000 the first year and $511,000 
the second year are for debt service 
payments to school districts for 
technical college buildings financed 
with district bonds issued before 
January 1, 1979. 
Subd. 4.  Federal Funds
 For fiscal year 1992, the state board 
shall allocate 12.75 percent of the 
federal funds received from the Carl D. 
Perkins Vocational and Applied 
Technology Education Act of 1990, to 
the state board of education for the 
purpose of supporting secondary 
vocational technical education programs 
and services.  The state board for 
technical colleges and the state board 
of education must establish a process 
for allocating the Carl D. Perkins 
funds in future years and report that 
process to the education, 
appropriations, and finance committees. 
The number of students in special 
populations served at each education 
level must be considered in developing 
the process.  
Subd. 5.  State Council on Vocational 
Technical Education 
 $99,000 in each year must be allocated 
by the state board to the state council 
on vocational education. 
Subd. 6.  Moorhead Technical College
 Independent school district No. 152, 
Moorhead Technical College, may spend 
up to $350,000 to construct classroom 
and related space for farm business, 
small business, and other management 
programs at Moorhead Technical 
College.  The expenditure must be made 
entirely from local money. 
Subd. 7.  Northeast Metro Technical
College
Intermediate school district No. 916, 
Northeast Metro Technical College, may 
spend up to $325,500 to construct a 
media center and to make electrical and 
mechanical renovations at Northeast 
Metro Technical College.  The 
expenditure must be made entirely from 
local money. 
Subd. 8.  Dakota County Technical 
College 
 Intermediate school district No. 917, 
Dakota County Technical College, may 
spend up to $399,000 to construct 
additional classroom and related space 
at Dakota County Technical College.  
The expenditure must be made entirely 
from local money. 
Subd. 9.  Detroit Lakes Technical
College
 The commissioner of finance shall give 
priority to the Detroit Lakes Technical 
College building project authorized by 
Laws 1990, chapter 610, article 1, 
section 2, subdivision 7.  
Sec. 4.  STATE BOARD FOR COMMUNITY 
COLLEGES 
Subdivision 1.  Total
Appropriation                         99,486,000    100,747,000
 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 
$135,188,000 the first year and 
$137,864,000 the second year. 
 This appropriation includes $2,771,000 
the first year and $2,704,000 the 
second year for increased enrollments.  
This is a nonrecurring appropriation 
and will not be included when 
calculating the base for the 1993-1995 
biennial budget.  This appropriation is 
based on estimated enrollments of 
34,490 in 1992 and 35,540 in 1993.  
 The maximum full-year equivalent 
enrollment for the purpose of 
calculating the state share of 
instructional cost in the 1993 biennial 
budget document shall be 35,540.  Any 
enrollment exceeding this number shall 
be supported by tuition revenue only. 
 $907,570 in each year is for library 
acquisitions. 
 The legislature intends that at least 
$2,288,000 be spent each year for 
instructional equipment. 
 The community college system shall 
develop and implement a plan that 
results in equity in funding between 
the center at Cambridge and other 
colleges of similar size.  This 
appropriation includes $50,000 each 
year to begin the implementation. * 
(The language "This appropriation 
includes $50,000 each year to begin the 
implementation." was vetoed by the 
governor.) 
Subd. 3.  Noninstructional 
Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$14,585,000 the first year and 
$14,585,000 the second year. * (The 
language "$14,585,000 the second year" 
was vetoed by the governor.  At the 
time of publication, the question of 
whether the veto is effective was under 
consideration by Minnesota courts.) 
Sec. 5.  STATE UNIVERSITY BOARD 
Subdivision 1.  Total
Appropriation                      $183,134,000   $179,666,000
 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 
$250,201,000 the first year and 
$248,917,000 the second year. 
 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.  This 
is the final and nonrecurring 
appropriation for this purpose. 
 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. 
 The maximum full-year equivalent 
enrollment for the purpose of 
calculating the state share of 
instructional cost in the 1993 biennial 
budget document shall be 53,065.  Any 
enrollment exceeding this number shall 
be supported by tuition revenue only. 
 $2,613,000 in each year is for library 
acquisitions. 
 The legislature intends that at least 
$6,331,000 each year be spent for 
instructional equipment. 
Subd. 3.  Noninstructional 
Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$14,359,000 the first year and 
$14,359,000 the second year. * (The 
language "$14,359,000 the second year" 
was vetoed by the governor.  At the 
time of publication, the question of 
whether the veto is effective was under 
consideration by Minnesota courts.) 
Subd. 4.  Campus Initiatives 
 The state university board may begin 
implementation of its quality education 
plans through campus initiatives that 
enhance the quality of student and 
institutional performances.  The state 
university board may internally 
allocate up to $250,000 for the 
biennium to provide funding for these 
initiatives.  The board shall evaluate 
the results of the initiatives and 
report its findings to the education 
divisions of the appropriations and 
finance committees by January 15, 1993. 
Subd. 5.  St. Cloud State 
 The St. Cloud State University 
Foundation may provide money for the 
design and construction of an addition 
to the existing business education 
building located on the St. Cloud State 
University campus.  The state board 
shall repay the loan with interest at a 
rate not to exceed the rate the state 
would pay on its bonds issued for the 
same purpose. 
 Notwithstanding Minnesota Statutes, 
chapter 94, the state university board 
may enter into an agreement with the 
city of St. Cloud to exchange parcels 
of land.  The conveyances must be made 
for no monetary consideration and by 
quitclaim deed in a form approved by 
the attorney general.  Before the 
conveyances, the state university board 
and the city of St. Cloud shall enter 
an agreement on temporary easements on 
the parcels of land to be exchanged. 
Subd. 6.  Mankato State  
 The $3,720,000 appropriated by Laws 
1990, chapter 610, article 1, section 
4, subdivision 3, paragraph (a), to 
provide for heating plant 
rehabilitation at Mankato State 
University, may be used to fund the 
heating plant rehabilitation at the 
university for an estimated cost of 
$2,220,000.  The remaining $1,500,000 
of the appropriation must be used to 
install a campus chilled water system 
at the heating plant.  The existing 
heating plant must be expanded to 
accommodate the rehabilitation and the 
chilled water system. 
Sec. 6.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA 
Subdivision 1.  Total
Appropriation                        446,760,000    451,076,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Operations and
Maintenance                          365,863,000    370,179,000
 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 $134,754,000 for the first 
year and $134,453,000 for the second 
year. 
(a) Instructional Expenditures 
 The legislature estimates that 
instructional expenditures will be 
$374,145,000 the first year and 
$378,160,000 the second year. 
 The regular session enrollment 
projected for this appropriation is 
32,550 full-year equivalent 
undergraduate students for the first 
year and 31,600 for the second year.  
For the biennium ending June 30, 1993, 
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.  
 This appropriation includes $25,000 for 
the China Center to provide student 
services. 
 The president of the University of 
Minnesota shall report to the education 
divisions of the senate finance and 
house appropriations committees by 
January 15, 1992, on the merits, 
feasibility, and current status of 
University of Minnesota undergraduate 
and graduate students pursuing study 
abroad in programs where the language 
of instruction is other than English. 
The president shall propose a timetable 
and funding arrangement for reaching 
the goal of a comparable number of 
Minnesota students pursuing overseas 
study where the language of instruction 
is other than English as there are 
foreign students studying at the 
University of Minnesota whose primary 
language is not English. 
 The board of regents is requested to 
continue the dental hygienist program 
at the University of Minnesota at 
Duluth at the current funding level 
until another public post-secondary 
board agrees to operate the program. 
 $4,135,100 in each year is for library 
acquisitions. 
 The legislature intends that at least 
$7,036,000 each year be spent for 
instructional equipment. 
(b) Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$126,472,000 in the first year and 
$126,473,000 in the second year. 
 Indirect cost recovery money retained 
during the biennium 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 
be used for debt retirement for 
research-related buildings.  It may not 
be used for teaching or service. 
 The legislature anticipates that 
$200,000 each year will be allocated to 
the Hormel Institute. 
Subd. 3.  Special
Appropriation                         85,192,000     85,192,000
 The amounts expended for each program 
in the four categories of special 
appropriations shall be separately 
identified in the 1993 biennial budget 
document. 
(a) Agriculture and Extension Service 
    44,593,000     44,593,000
 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 
    17,392,000     17,392,000
 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  
     3,605,000      3,605,000*
    * (The second appropriation of $3,605,000 was vetoed by the 
governor.) 
 This appropriation is for the Minnesota 
Mining and Mineral Resources Research 
Institute, the Geological Survey, 
Underground Space Center, Talented 
Youth Mathematics Program, 
Microelectronics and Information 
Science Center, and the Productivity 
Center. 
(d) System Specials 
    19,602,000     19,602,000*
    * (The second appropriation of $19,602,000 was vetoed by 
the governor.) 
 This appropriation is for Fellowships 
for Minority and Disadvantaged 
Students, General Research, 
Intercollegiate Athletics, Student 
Loans Matching Money, Industrial 
Relations Education, 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              $551,600      $551,600
Morris              $66,100       $66,100
Crookston           $65,000       $65,000
Waseca              $65,000
Subd. 4.  Base Reduction              (4,295,000)     (4,295,000)
 The appropriations in subdivision 2, 
paragraph (b), for noninstructional 
expenditures and in subdivision 3 for 
special appropriations shall be reduced 
$4,295,000 in each year. 
Sec. 7.  MAYO MEDICAL FOUNDATION 
Subdivision 1.  Total
Appropriation                            985,000        956,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Medical School
       711,000        682,000
 The state of Minnesota shall pay a 
capitation of $9,875 per 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
       274,000        274,000
 The state of Minnesota shall pay a 
capitation of $15,222 each year for a 
maximum of 18 students each year. 
Sec. 8.  POST-SECONDARY SYSTEMS 
 In preparing budget requests for the 
1993-1995 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 1993 biennial budget 
document. 
 Each governing board must apply budget 
reductions to central administration in 
at least the same proportion as they 
apply them to instructional 
expenditures. 
Sec. 9.  HIGHER EDUCATION BOARD        1,000,000*
 $1,000,000 is appropriated for the 
biennium to the higher education board 
created in article 9 of this act.  The 
appropriation in this section is 
available immediately.  ("1,000,000" 
after "HIGHER EDUCATION BOARD" in the 
first line of this section was vetoed 
by the governor.) 

                                ARTICLE 2
COORDINATION AND QUALITY INITIATIVES 
    Section 1.  [135A.052] [POST-SECONDARY MISSIONS.] 
    Subdivision 1.  [STATEMENT OF MISSIONS.] The legislature 
recognizes each public post-secondary system to have a 
distinctive mission within the overall provision of public 
higher education in the state and a responsibility to cooperate 
with the other systems.  These missions are as follows: 
    (1) the technical college system shall offer vocational 
training and education to prepare students for skilled 
occupations that do not require a baccalaureate degree; 
    (2) the community college system shall offer lower division 
instruction in academic programs, occupational programs in which 
all credits earned will be accepted for transfer to a 
baccalaureate degree in the same field of study, and remedial 
studies, for students transferring to baccalaureate institutions 
and for those seeking associate degrees; 
    (3) the state university system shall offer undergraduate 
and graduate instruction through the master's degree, including 
specialist certificates, in the liberal arts and sciences and 
professional education; and 
    (4) the University of Minnesota shall offer undergraduate, 
graduate, and professional instruction through the doctoral 
degree, and shall be the primary state supported academic agency 
for research and extension services. 
    Subd. 2.  [IMPLEMENTATION.] Each post-secondary system 
shall review and redesign its programs and courses in accordance 
with the mission stated in subdivision 1, unless exceptional 
geographic or financial circumstances exist that necessitate 
retaining a program that is beyond a system's mission.  The 
higher education advisory council shall review program offerings 
within each system to determine whether existing program 
offerings that are inconsistent with the stated mission have 
been eliminated or transferred.  The council shall also review 
any exceptional circumstances cited as a justification for 
retaining programs that are beyond a system's mission. 
    Subd. 3.  [COORDINATION.] The higher education coordinating 
board shall oversee the implementation of the transfer and 
elimination of programs.  The board shall ensure that duplicate 
and inappropriate programs are identified and that changes are 
made in a timely manner. 
    Sec. 2.  [135A.061] [INTERSYSTEM COUNCIL.] 
    An intersystem council is established to improve 
communications among post-secondary systems on relevant policy 
issues.  The council is composed of officers or other 
representatives of each public post-secondary governing board 
and of the higher education coordinating board.  The council 
shall determine its meeting times but shall meet at least twice 
each year.  Members shall report on discussions and actions of 
the council to their respective governing boards.  The council 
shall determine its agenda from issues that affect more than one 
system.  These may include:  transfer of credit, efficiency of 
campus and system operations, duplication of programs and 
courses, mission delineation, cooperative arrangements, academic 
quality initiatives, and the effects of a system's proposed 
plans on the other systems.  The council shall notify the chairs 
of the education, appropriations, and finance committees of the 
legislature in advance of its meetings. 
    Sec. 3.  [135A.50] [JOINT ADMINISTRATIVE APPOINTMENTS.] 
    Subdivision 1.  [APPOINTMENTS.] To improve the efficient 
delivery of services to students and to reduce unnecessary 
administrative expenditures, each technical college and 
community college, located in the same or nearby communities, as 
provided in Laws 1983, chapter 258, section 64, subdivision 1, 
except those in which both of the cooperating institutions had a 
full-year equivalent enrollment or average daily membership of 
at least 1,600 in fiscal year 1989, must consolidate all 
personnel at the level of presidents, vice presidents, deans, 
and other managers in academic support programs in community 
colleges and all personnel in similar positions at technical 
colleges in the fiscal year immediately following the pilot 
programs.  This consolidation of personnel is not intended to 
apply to instructional staff.  Personnel involved in the 
consolidated functions are joint employees of the state board of 
technical colleges and the state board for community colleges. 
    Subd. 2.  [PILOT PROGRAMS.] Notwithstanding any law to the 
contrary, the state board of technical colleges and the state 
board for community colleges shall implement pilot programs of 
administrative consolidation at two locations no later than the 
1992-1993 academic year.  The boards shall try to begin 
implementation for the 1991-1992 academic year.  The boards 
shall seek presidents willing to allow their campuses to 
participate voluntarily.  If no president volunteers, the boards 
shall jointly designate sites. 
    Subd. 3.  [PROCEDURES.] The community college and technical 
college systems shall develop necessary plans to implement 
subdivision 1 at all applicable sites.  The systems shall 
determine necessary statutory changes and changes in system 
procedures and rules, analyze particular problems that develop 
during the pilot projects, and shall estimate the cost savings 
that the administrative consolidations will produce annually.  
As part of the plan, the systems shall report their progress in 
developing the plans by February 1, 1992.  
    Sec. 4.  Minnesota Statutes 1990, section 136A.04, 
subdivision 1, is amended to read: 
    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, 
additional, or changes in existing programs or large-scale or 
permanent sites of instruction to be established in or offered 
by public post-secondary institutions and, with respect to 
programs only, private 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.  For public 
post-secondary institutions, the board shall approve or 
disapprove continuation or modification of existing programs.  
For private post-secondary institutions, the board shall 
recommend continuation or modification of existing programs. 
    Before a public post-secondary program can be offered at a 
site other than that for which it was approved originally, the 
program must be resubmitted for approval.  When reviewing a site 
or program, the board shall consider whether it is unnecessary, 
a needless duplication, 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 
public post-secondary institutions, which includes the relating 
of dollars to program output; review, approve or disapprove, and 
identify priorities with respect to all proposals for new, 
additional, or changes in existing large-scale or permanent 
sites of instruction to be established in or offered by public 
post-secondary institutions.  The board shall forward its 
decisions on sites to the chairs of the house appropriations and 
senate finance committees.  Private post-secondary institutions 
must give reasonable notice to the board prior to making binding 
decisions to establish a site or center, and are requested to 
participate in this site approval process.  When reviewing a 
site, the board shall consider whether it is unnecessary, a 
needless duplication, beyond the capability of the system or 
institution considering its resources, or beyond the scope of 
the system or institutional mission; 
    (6) review budget requests, including plans for 
construction or acquisition of facilities, of the 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 (7) coordinate the 
development and implementation of transfer agreements by the 
systems that ensure the transferability of credits between 
Minnesota post-secondary institutions, 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) (8) prescribe policies, procedures, and rules necessary 
to administer the programs under its supervision.  
    Sec. 5.  [136C.71] [TECHNICAL COLLEGE DISTRICTS.] 
    Subdivision 1.  [ASSIGNMENT.] The state board shall create 
at least nine but not more than 15 technical college districts.  
All portions of the state shall be assigned to a district by the 
state board, except that intermediate districts as defined in 
section 136C.02, school districts in cities of the first class, 
and school districts operating technical colleges where the 
college had an average daily membership in fiscal year 1989 of 
at least 1,500 in continuous programs, may vote to not be 
assigned.  The state board must make the district designations 
by December 15, 1991. 
    Subd. 2.  [OPERATION.] The formation and operation of 
technical college districts shall be as provided in sections 
136C.60 to 136C.69. 
    Sec. 6.  [TASK FORCE ON POST-SECONDARY FUNDING FORMULA.] 
    Subdivision 1.  [MEMBERSHIP.] A task force on 
post-secondary funding is established.  The task force shall 
consist of 15 members as follows:  two members of the house of 
representatives and one citizen member to be appointed by the 
speaker, two members of the senate and one citizen member to be 
appointed by the subcommittee on committees of the committee of 
rules and administration, the head of each public post-secondary 
system, a representative of the private college council, the 
commissioner of finance, two citizen members to be appointed by 
the governor; and one student to be appointed by the student 
advisory council.  The task force shall elect a chair and other 
officers as it deems necessary. 
    Members of the task force shall be compensated as provided 
in Minnesota Statutes, section 15.059, subdivision 6. 
    Subd. 2.  [CHARGE.] The task force shall be charged with 
developing an alternative funding formula for post-secondary 
education.  The formula shall create incentives for quality 
post-secondary education while maintaining access for students.  
The task force must develop a formula that can be funded within 
the projected constraints of the state budget in the coming 
decade. 
    Subd. 3.  [REPORT.] The task force shall report its 
recommendations to the appropriations and finance committees of 
the legislature by September 1, 1992. 
    Subd. 4.  [EXPIRATION.] The task force shall expire on June 
30, 1993. 
    Sec. 7.  [QUALITY INCENTIVES.] 
    Subdivision 1.  [LEGISLATIVE INTENT.] In order to encourage 
a better match between student abilities and needs and system 
mission and strengths, and to promote better opportunities for 
student success and enhanced instructional quality, the 
legislature intends to provide funding for improvements in rates 
of student retention, graduation, and transfer from two- to 
four-year systems. 
    Subd. 2.  [PROPOSALS.] By September 15, 1991, each public 
post-secondary system shall propose to the education divisions 
of the appropriations and finance committees (1) mechanisms to 
increase its quality in these areas, and (2) methods by which 
the increases may be measured.  
     Sec. 8.  [CREDIT TRANSFER.] 
    By September 15, 1991, the higher education advisory 
council shall resolve differences and inconsistencies within and 
among the post-secondary systems relating to educationally sound 
transfer of credit policies, including system policies on the 
award of credits, transferability of general education 
components, use of tests for determining credit or proficiency, 
development of a transfer curriculum to satisfy lower division 
requirements, and provision and use of appeals processes.  Each 
system also shall review and update its existing credit transfer 
policy.  The post-secondary systems shall devise and implement 
procedures for exchanging information that documents the 
performance and progress of individual students who transfer 
between systems.  The legislature intends that credit transfer 
policies provide for the broadest and most simple mechanisms 
that are feasible while protecting the academic quality of 
institutions and programs. 
     Sec. 9.  [EFFECTIVE DATE.] 
     Sections 3, 5, 7, and 8 are effective the day following 
final enactment. 

                                ARTICLE 3

                   ENROLLMENT, FUNDING, AND MANAGEMENT
    Section 1.  Minnesota Statutes 1990, section 135A.03, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
state share of the cost of instruction shall be 32 percent for 
the following categories: 
    (1) enrollment in credit bearing courses at an off campus 
site or center, except those courses at Cambridge and Fond du 
Lac centers; the Arrowhead and Rochester 2 + 2 programs; those 
offered through telecommunications; those offered by the 
technical colleges; and those offered as part of a joint degree 
program; and 
    (2) enrollment of students who are concurrently enrolled in 
a secondary school and for whom the institution is receiving any 
compensation under the post-secondary enrollment options act. 
    Sec. 2.  Minnesota Statutes 1990, section 135A.03, 
subdivision 3, is amended to read: 
    Subd. 3.  [DETERMINATION OF STUDENT ENROLLMENT.] Student 
enrollment shall be the full-year equivalent or average daily 
membership enrollment in each instructional category in the 
fiscal year two years before the fiscal year for which the 
appropriations are being made, except as provided in subdivision 
3a.  Student enrollment for the purpose of calculating 
appropriations for the second year of the biennium may be 
estimated on the basis of the latest enrollment data available.  
Student enrollment shall include students enrolled in courses 
that award credit or otherwise satisfy any of the requirements 
of an academic or vocational program. 
    Sec. 3.  Minnesota Statutes 1990, section 135A.03, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [EXCLUSIONS FROM ENROLLMENT.] Student enrollment 
for the purposes of average cost funding shall not include: 
    (1) any undergraduate students who do not meet the 
residency criteria established under subdivision 7; 
    (2) enrollment in extension at the technical colleges; and 
    (3) students enrolled in recreational or leisure-time 
activity courses, except for those students enrolled in a 
degree-granting program for whom the credits would apply toward 
a baccalaureate degree. 
    Sec. 4.  Minnesota Statutes 1990, section 135A.03, is 
amended by adding a subdivision to read: 
    Subd. 7.  [RESIDENCY RESTRICTIONS.] In calculating student 
enrollment for appropriations, only the following may be 
included: 
    (1) students who resided in the state for at least one 
calendar year prior to applying for admission; 
    (2) Minnesota residents who can demonstrate that they were 
temporarily absent from the state without establishing residency 
elsewhere; and 
    (3) residents of other states who are attending a Minnesota 
institution under a tuition reciprocity agreement. 
    Sec. 5.  Minnesota Statutes 1990, 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 division of 
the senate finance committee, and 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 be convened at least annually.  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 June 30, 
1993. 
    Sec. 6.  [135A.131] [LOCAL ASSESSMENT.] 
    Each public post-secondary governing board may pay when due 
any assessment by a local unit of government that is less than 
five percent of the board's appropriation for repair and 
replacement. 
    Sec. 7.  Minnesota Statutes 1990, section 136.11, 
subdivision 3, is amended to read: 
    Subd. 3.  [UNIVERSITY ACTIVITY FUND.] The state university 
board shall establish in each university a fund to be known as 
the university activity fund.  The purpose of this fund shall be 
to provide for the administration of university activities 
designed for student recreational, social, welfare, and 
educational pursuits supplemental to the regular curricular 
offerings.  The university activity fund shall encompass 
accounts for student activities, authorized university agencies, 
authorized auxiliary enterprises, and student loans, gifts and 
endowments, and in addition such other accounts as the board may 
prescribe. 
    Sec. 8.  Minnesota Statutes 1990, section 136.11, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [SYSTEMWIDE ADMINISTRATIVE FUND.] The chancellor 
may establish a fund within the system office for systemwide 
management of employee retirement funds, contracts, student 
equipment purchases, and receipt and transfer of foreign program 
funds. 
    Sec. 9.  Minnesota Statutes 1990, section 136.11, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADMINISTRATION OF ACTIVITY FUND MONEYS.] The 
state university board independent of other authority and 
notwithstanding chapters 16A and 16B, shall administer the money 
collected for the university activities fund and the systemwide 
administrative fund.  All university activity fund money 
collected shall be retained by the president of each state 
university to be administered under the rules of the state 
university board by the presidents of the respective 
universities subject to audit of the legislative auditor. 
    Sec. 10.  Minnesota Statutes 1990, section 136.142, 
subdivision 1, is amended to read: 
    Subdivision 1.  The state university board may receive and 
accept on behalf of the state and for the benefit of any state 
university any gift, bequest, devise, or endowment which any 
person, firm, corporation, or association may make to the board 
by will, deed, gift, or otherwise for the purpose of the 
university activity funds.  The state university board may use 
any money heretofore given it or any of the universities under 
its jurisdiction by any person, firm, corporation, or 
association by will, deed, gift, devise, or endowment for the 
purpose of providing money for any aspect of the university 
activity funds, provided that such use of such money is not 
inconsistent with the terms and conditions under which the money 
was received by the board or a university under its 
jurisdiction.  Gifts, bequests, devises, or endowments 
heretofore or hereafter so received are hereby appropriated to 
the board for the purposes stated.  Gifts, bequests, devises or 
endowments of real property shall be reviewed by the chairs of 
the Minnesota house of representatives appropriations and the 
Minnesota senate finance committees who shall give for their 
recommendations to the legislative advisory commission.  The 
legislative advisory commission shall then recommend to the 
board about whether or not the property should be accepted.  The 
recommendation of the committee shall be recommendations are 
advisory only.  Failure or refusal of the commission to make a 
recommendation promptly shall be deemed a negative 
recommendation.  All taxes and special assessments constituting 
a lien on any real property received and accepted by the board 
under this section shall be paid in full before title is 
transferred to the state.  All other moneys deposited in the 
university activity funds are hereby appropriated to the board 
for use in the respective universities where collected. 
    Sec. 11.  [136.172] [LITIGATION AWARDS.] 
    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.  An award that exceeds the 
costs incurred in the litigation shall be used by the board for 
repair or replacement projects.  The board shall report on any 
awards it receives as part of its biennial budget request. 
    Sec. 12.  [136.653] [STUDENT HOUSING MANAGEMENT.] 
    The state board for community colleges may contract with 
student housing facility owners or on-site management firms to 
assist in the operation, control, and management of the facility.
    Sec. 13.  Laws 1990, chapter 591, article 3, section 10, is 
amended to read: 
    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 1992-1993 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 1992-1993 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. 14.  [PROGRAM TRANSFER.] 
    The higher education coordinating board, in consultation 
with the state governing boards of the community colleges, 
technical colleges, and University of Minnesota, shall develop 
and begin to implement a plan for transferring courses and 
programs currently offered by the community college system in 
Duluth, where there is sufficient student need to warrant 
continuation of the course or program.  Where appropriate, 
occupational programs shall be transferred to the technical 
college system; academic and remedial courses shall be 
transferred to the Fond du Lac center or to the continuing 
education and extension program at the University of Minnesota, 
Duluth.  In developing the plan, the higher education 
coordinating board shall consider duplication of services, 
including courses provided through the Duluth school district.  
The board shall report the plan to the education divisions of 
the appropriations and finance committees by February 1, 1992.  
    Sec. 15.  [HECB RECOMMENDATIONS TO LEGISLATURE.] 
    By January 15, 1993, the higher education coordinating 
board shall present to the education committees of the 
legislature recommendations for linking funding of 
post-secondary education systems to achievement of the system 
plans and missions that are required under Minnesota Statutes, 
section 135A.06, and to achievement by students of system and 
institution learner outcomes.  
     Sec. 16.  [EFFECTIVE DATE.] 
     Sections 5 and 14 are effective the day following final 
enactment. 

                               ARTICLE 4 
IRON RANGE HIGHER EDUCATION 
    Section 1.  [298.2214] [IRON RANGE HIGHER EDUCATION.] 
    Subdivision 1.  [CREATION OF COMMITTEE; PURPOSE.] A 
committee is created to advise the commissioner of iron range 
resources and rehabilitation on providing higher education 
programs in the taconite tax relief area defined in section 
273.134.  The committee is subject to section 15.059. 
    Subd. 2.  [MEMBERSHIP.] The members of the committee shall 
consist of: 
    (1) one member appointed by the governor; 
    (2) one member appointed by the president of the University 
of Minnesota; 
    (3) two members appointed by the commissioner of iron range 
resources and rehabilitation; and 
    (4) the commissioner of iron range resources and 
rehabilitation. 
    Subd. 3.  [ADVISORY FUNCTION.] The committee shall advise 
the commissioner regarding development of a contract with the 
state university system.  The contract would require the system 
to provide courses within the taconite tax relief area. 
    Subd. 4.  [CONTRACT.] The commissioner shall prepare a 
contract as described in subdivision 3 and submit it to the 
committee for review and recommendations for approval, 
disapproval, or modifications.  At the conclusion of the review 
process, the commissioner shall enter into a contract with the 
state university system to provide the services. 
    Subd. 5.  [HECB AND SYSTEM APPROVAL.] A program may not be 
offered under a contract executed according to this section 
unless it is approved by the higher education coordinating board 
and the board of the system offering the program.  
    Sec. 2.  Minnesota Statutes 1990, section 298.28, 
subdivision 4, is amended to read: 
    Subd. 4.  [SCHOOL DISTRICTS.] (a) 27.5 cents per taxable 
ton plus the increase provided in paragraph (d) must be 
allocated to qualifying school districts to be distributed, 
based upon the certification of the commissioner of revenue, 
under paragraphs (b) and (c). 
    (b) 5.5 cents per taxable ton must be distributed to the 
school districts in which the lands from which taconite was 
mined or quarried were located or within which the concentrate 
was produced.  The distribution must be based on the 
apportionment formula prescribed in subdivision 2. 
    (c)(i) 22 cents per taxable ton, less any amount 
distributed under paragraph (e), shall be distributed to a group 
of school districts comprised of those school districts in which 
the taconite was mined or quarried or the concentrate produced 
or in which there is a qualifying municipality as defined by 
section 273.134 in direct proportion to school district indexes 
as follows:  for each school district, its pupil units 
determined under section 124.17 for the prior school year shall 
be multiplied by the ratio of the average adjusted net tax 
capacity per pupil unit for school districts receiving aid under 
this clause as calculated pursuant to chapter 124A for the 
school year ending prior to distribution to the adjusted net tax 
capacity per pupil unit of the district.  Each district shall 
receive that portion of the distribution which its index bears 
to the sum of the indices for all school districts that receive 
the distributions.  
      (ii) Notwithstanding clause (i), each school district that 
receives a distribution under sections 298.018; 298.23 to 
298.28, exclusive of any amount received under this clause; 
298.34 to 298.39; 298.391 to 298.396; 298.405; or any law 
imposing a tax on severed mineral values that is less than the 
amount of its levy reduction under section 275.125, subdivision 
9, for the second year prior to the year of the distribution 
shall receive a distribution equal to the difference; the amount 
necessary to make this payment shall be derived from 
proportionate reductions in the initial distribution to other 
school districts under clause (i).  
      (d) On July 15, in years prior to 1988, an amount equal to 
the increase derived by increasing the amount determined by 
paragraph (c) in the same proportion as the increase in the 
steel mill products index over the base year of 1977 as provided 
in section 298.24, subdivision 1, clause (a), shall be 
distributed to any school district described in paragraph (c) 
where a levy increase pursuant to section 124A.03, subdivision 
2, is authorized by referendum, according to the following 
formula.  On July 15, 1988, the increase over the amount 
established for 1987 shall be determined as if there had been an 
increase in the tax rate under section 298.24, subdivision 1, 
paragraph (b), according to the increase in the implicit price 
deflator.  On July 15, 1989, and subsequent years 1990, and 
1991, the increase over the amount established for the prior 
year shall be determined according to the increase in the 
implicit price deflator as provided in section 298.24, 
subdivision 1, paragraph (a).  In 1992 and 1993, the amount 
distributed per ton shall be the same as that determined for 
distribution in 1991.  In 1994, the amount distributed per ton 
shall be equal to the amount per ton distributed in 1991 
increased in the same proportion as the increase between the 
fourth quarter of 1988 and the fourth quarter of 1992 in the 
implicit price deflator as defined in section 298.24, 
subdivision 1.  On July 15, 1995, and subsequent years, the 
increase over the amount established for the prior year shall be 
determined according to the increase in the implicit price 
deflator as provided in section 298.24, subdivision 1.  Each 
district shall receive the product of: 
    (i) $175 times the pupil units identified in section 
124.17, subdivision 1, enrolled in the second previous year or 
the 1983-1984 school year, whichever is greater, less the 
product of 1.8 percent times the district's taxable net tax 
capacity in the second previous year; times 
    (ii) the lesser of: 
     (A) one, or 
     (B) the ratio of the amount certified pursuant to section 
124A.03, subdivision 2, in the previous year, to the product of 
1.8 percent times the district's taxable net tax capacity in the 
second previous year. 
     If the total amount provided by paragraph (d) is 
insufficient to make the payments herein required then the 
entitlement of $175 per pupil unit shall be reduced uniformly so 
as not to exceed the funds available.  Any amounts received by a 
qualifying school district in any fiscal year pursuant to 
paragraph (d) shall not be applied to reduce general education 
aid which the district receives pursuant to section 124A.23 or 
the permissible levies of the district.  Any amount remaining 
after the payments provided in this paragraph shall be paid to 
the commissioner of iron range resources and rehabilitation who 
shall deposit the same in the taconite environmental protection 
fund and the northeast Minnesota economic protection trust fund 
as provided in subdivision 11. 
     Each district receiving money according to this paragraph 
shall reserve $25 times the number of pupil units in the 
district.  It may use the money only for outcome-based learning 
programs that enhance the academic quality of the district's 
curriculum.  The programs must be approved by the commissioner 
of education.  
    (e) There shall be distributed to any school district the 
amount which the school district was entitled to receive under 
section 298.32 in 1975. 
    Sec. 3.  Minnesota Statutes 1990, section 298.28, 
subdivision 7, is amended to read: 
    Subd. 7.  [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 
Three cents per taxable ton shall be paid to the iron range 
resources and rehabilitation board for the purposes of section 
298.22.  The amount determined in this subdivision shall be 
increased in 1981 and subsequent years prior to 1988 in the same 
proportion as the increase in the steel mill products index as 
provided in section 298.24, subdivision 1, and shall be 
increased in 1989 and subsequent years, 1990, and 1991 according 
to the increase in the implicit price deflator as provided in 
section 298.24, subdivision 1.  In 1992 and 1993, the amount 
distributed per ton shall be the same as the amount distributed 
per ton in 1991.  In 1994, the amount distributed shall be the 
distribution per ton for 1991 increased in the same proportion 
as the increase between the fourth quarter of 1988 and the 
fourth quarter of 1992 in the implicit price deflator as defined 
in section 298.24, subdivision 1.  That amount shall be 
increased in 1995 and subsequent years in the same proportion as 
the increase in the implicit price deflator as provided in 
section 298.24, subdivision 1.  The amount distributed in 1988 
shall be increased according to the increase that would have 
occurred in the rate of tax under section 298.24 if the rate had 
been adjusted according to the implicit price deflator for 1987 
production.  The amount distributed pursuant to this subdivision 
shall be expended within or for the benefit of a tax relief area 
defined in section 273.134.  No part of the fund provided in 
this subdivision may be used to provide loans for the operation 
of private business unless the loan is approved by the governor 
and the legislative advisory commission. 
    Sec. 4.  Minnesota Statutes 1990, section 298.28, 
subdivision 10, is amended to read: 
    Subd. 10.  [INCREASE.] The amounts determined under 
subdivisions 6, paragraph (a), and 9 shall be increased in 1979 
and subsequent years prior to 1988 in the same proportion as the 
increase in the steel mill products index as provided in section 
298.24, subdivision 1.  The amount distributed in 1988 shall be 
increased according to the increase that would have occurred in 
the rate of tax under section 298.24 if the rate had been 
adjusted according to the implicit price deflator for 1987 
production.  Those amounts shall be increased in 1989 and 
subsequent years, 1990, and 1991 in the same proportion as the 
increase in the implicit price deflator as provided in section 
298.24, subdivision 1.  In 1992 and 1993, the amounts determined 
under subdivisions 6, paragraph (a), and 9, shall be the 
distribution per ton determined for distribution in 1991.  In 
1994, the amounts determined under subdivisions 6, paragraph 
(a), and 9, shall be the distribution per ton determined for 
distribution in 1991 increased in the same proportion as the 
increase between the fourth quarter of 1988 and the fourth 
quarter of 1992 in the implicit price deflator as defined in 
section 298.24, subdivision 1.  Those amounts shall be increased 
in 1995 and subsequent years in the same proportion as the 
increase in the implicit price deflator as provided in section 
298.24, subdivision 1.  
    The distributions per ton determined under subdivisions 5, 
paragraphs (b) and (d), and 6, paragraphs (b) and (c) for 
distribution in 1988 and subsequent years shall be the 
distribution per ton determined for distribution in 1987. 
    Sec. 5.  Minnesota Statutes 1990, section 298.28, is 
amended by adding a subdivision to read: 
    Subd. 10a.  [HIGHER EDUCATION FUNDING.] In 1992 and 1993, 
the amount of tax attributable to the rate increase under 
section 298.24, subdivision 1, paragraph (b), since production 
year 1990, shall be paid to the commissioner of iron range 
resources and rehabilitation to be used to pay the cost of 
providing higher education services in the taconite tax relief 
area under the contract provided for in section 1. * (The 
language of section 5 beginning "In 1992" was vetoed by the 
governor.) 
    Sec. 6.  Minnesota Statutes 1990, section 298.28, 
subdivision 11, is amended to read: 
    Subd. 11.  [REMAINDER.] (a) The proceeds of the tax imposed 
by section 298.24 which remain after the distributions and 
payments in subdivisions 2 to 10 10a, as certified by the 
commissioner of revenue, and paragraphs (b) and (c) have been 
made, together with interest earned on all money distributed 
under this section prior to distribution, shall be divided 
between the taconite environmental protection fund created in 
section 298.223 and the northeast Minnesota economic protection 
trust fund created in section 298.292 as follows:  Two-thirds to 
the taconite environmental protection fund and one-third to the 
northeast Minnesota economic protection trust fund.  The 
proceeds shall be placed in the respective special accounts. 
    (b) There shall be distributed to each city, town, school 
district, and county the amount that it received under section 
294.26 in calendar year 1977; provided, however, that the amount 
distributed in 1981 to the unorganized territory number 2 of 
Lake county and the town of Beaver Bay based on the 
between-terminal trackage of Erie Mining Company will be 
distributed in 1982 and subsequent years to the unorganized 
territory number 2 of Lake county and the towns of Beaver Bay 
and Stony River based on the miles of track of Erie Mining 
Company in each taxing district. 
    (c) There shall be distributed to the iron range resources 
and rehabilitation board the amounts it received in 1977 under 
section 298.22.  The amount distributed under this paragraph 
shall be expended within or for the benefit of the tax relief 
area defined in section 273.134. 

                               ARTICLE 5 
CONSERVATION STUDY 
    Section 1.  [CONSERVATION AREA STUDY.] 
    $25,000 is appropriated from the consolidated account 
created under Minnesota Statutes, section 84A.51, subdivision 1, 
after the distribution to counties under Minnesota Statutes, 
section 84A.51, subdivision 3, to the commissioner of natural 
resources for a contract with the natural resources research 
institute for the study described in this section.* (The 
preceding sentence beginning "$25,000" was vetoed by the 
governor.)  The natural resources research institute shall 
conduct a study of the conservation areas subject to Minnesota 
Statutes, chapter 84A, and address the following subjects:  
    (1) land use and ownership in counties with conservation 
areas; 
    (2) county and township services provided for utilization 
of conservation areas and the costs of those services; 
    (3) actual utilization of conservation areas for public 
hunting and game management and opportunities for improvement; 
    (4) forestry management of conservation areas and 
opportunities for improvement and joint county management; 
    (5) criteria for and efficiencies of private ownership of 
conservation areas; 
    (6) opportunities for increased revenue from conservation 
areas; 
    (7) water resource utilization and costs for conservation 
areas; and 
    (8) fiscal impacts on counties and townships resulting from 
conservation areas. 
    The natural resources research institute shall utilize 
existing studies and information provided by the state, 
counties, and other organizations.  The agencies of the state 
and counties shall cooperate with the natural resource research 
institute and provide information requested to the extent 
possible.  The natural resources research institute shall 
establish and consult with an advisory committee made up of 
residents of counties where conservation lands are located, 
conservation groups, and the department of natural resources.  A 
draft report shall be prepared and submitted to the commissioner 
of natural resources and counties with conservation areas by 
December 1, 1991, for comments within 30 days after receipt.  A 
final report shall be submitted to the legislative commission on 
Minnesota resources, the commissioner of natural resources, the 
counties with conservation lands, and the legislature by January 
15, 1992. 

                                ARTICLE 6

                         PEACE OFFICER TRAINING
    Section 1.  Minnesota Statutes 1990, section 626.84, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] For purposes of sections 
626.84 to 626.863, the following terms have the meanings given 
them: 
    (a) "Board" means the board of peace officer standards and 
training. 
    (b) "Director" means the executive director of the board. 
    (c) "Peace officer" means an employee or an elected or 
appointed official of a political subdivision or law enforcement 
agency who is licensed by the board, charged with the prevention 
and detection of crime and the enforcement of the general 
criminal laws of the state and who has the full power of arrest, 
and shall also include the Minnesota state patrol, agents of the 
division of gambling enforcement, and state conservation 
officers. 
    (d) "Constable" has the meaning assigned to it in section 
367.40. 
    (e) "Deputy constable" has the meaning assigned to it in 
section 367.40. 
    (f) "Part-time peace officer" means an individual licensed 
by the board whose services are utilized by law enforcement 
agencies no more than an average of 20 hours per week, not 
including time spent on call when no call to active duty is 
received, calculated on an annual basis, who has either full 
powers of arrest or authorization to carry a firearm while on 
active duty.  The term shall apply even though the individual 
receives no compensation for time spent on active duty, and 
shall apply irrespective of the title conferred upon the 
individual by any law enforcement agency.  The limitation on the 
average number of hours in which the services of a part-time 
peace officer may be utilized shall not apply to a part-time 
peace officer who has formally notified the board pursuant to 
rules adopted by the board of the part-time peace officer's 
intention to pursue the specialized training for part-time peace 
officers who desire to become peace officers pursuant to 
sections 626.843, subdivision 1, clause (g), and 626.845, 
subdivision 1, clause (g).  
     (g) "Reserve officer" means an individual whose services 
are utilized by a law enforcement agency to provide 
supplementary assistance at special events, traffic or crowd 
control, and administrative or clerical assistance.  A reserve 
officer's duties do not include enforcement of the general 
criminal laws of the state, and the officer does not have full 
powers of arrest or authorization to carry a firearm on duty.  
     (h) "Law enforcement agency" means a unit of state or local 
government that is authorized by law to grant full powers of 
arrest and to charge a person with the duties of preventing and 
detecting crime and enforcing the general criminal laws of the 
state. 
    (i) "Professional peace officer education" means a 
post-secondary degree program, or a nondegree program for 
persons who already have a college degree, that is offered by a 
college or university in Minnesota, designed for persons seeking 
licensure as a peace officer, and approved by the board. 
    Sec. 2.  [626.856] [SCHOOL OF LAW ENFORCEMENT.] 
    By July 1, 1992, the state university system shall develop 
a school of law enforcement in the metropolitan area, as defined 
in section 473.121, subdivision 2, whose mission is to advance 
the profession of law enforcement.  The school may offer 
professional peace officer education, graduate degree programs, 
and peace officer continuing education programs, and may conduct 
applied research. 
    Sec. 3.  [626.857] [ADVISORY COUNCIL.] 
    An advisory council of no more than 12 members is 
established consisting of law enforcement faculty and 
administrators, peace officers, police chiefs, sheriffs, and 
citizens.  The state university board, the community college 
board, and the technical college board shall each appoint four 
members.  The advisory council shall meet at least once each 
year to advise the post-secondary systems regarding professional 
peace officer education.  The advisory council shall include 
women and members of minority groups.  The advisory council 
shall expire on June 30, 1993. 
    Sec. 4.  [TASK FORCE.] 
    Subdivision 1.  [CREATION.] A task force is created to 
improve the quality and delivery of law enforcement education, 
and to more clearly define the mission of each post-secondary 
system in this delivery.  The task force shall consist of a 
representative of the community college system, the technical 
college system, the state university system, private colleges 
offering professional peace officer education, the higher 
education coordinating board, and the advisory council 
established in section 3.  The executive director of the peace 
officer standards and training board shall chair the task force. 
    Subd. 2.  [ACTIONS.] By January 1, 1992, the task force 
shall develop and implement actions to: 
    (1) recruit and retain women and minorities in professional 
peace officer education; 
    (2) increase the amount of general education in the 
professional peace officer education program for associate 
degrees, to allow for maximum credit transfer from community 
colleges and technical colleges; and 
    (3) provide information to students enrolling in 
professional peace officer education concerning transferability 
of credits and the peace officer licensing process, and develop 
a form that the students must sign that acknowledges receipt of 
the information. 
    Subd. 3.  [PLAN FOR PILOT PROJECT.] The task force shall 
develop a plan for a pilot project for an integrated peace 
officer education program in the metropolitan area to be 
implemented by the beginning of the 1992-1993 academic year.  
The pilot shall provide for the needs of students seeking 
associate and baccalaureate degrees.  It shall include general 
education and integrated professional peace officer education 
which is appropriately managed and located.  Upon appointment by 
the state university board, the director of the school of law 
enforcement shall serve as the coordinator of the pilot project 
and shall work with the task force in developing and 
implementing the pilot. 
    Subd. 4.  [REPORTS.] The task force shall report on its 
actions and its progress in developing its plans by February 1, 
1992, to the higher education policy and funding divisions of 
the legislature.  
    Sec. 5.  [REPEALER.] 
    Minnesota Statutes 1990, section 626.86, is repealed. 

                               ARTICLE 7 

                     ACADEMIC EXCELLENCE SCHOLARSHIP
    Section 1.  [135A.30] [MINNESOTA ACADEMIC EXCELLENCE 
SCHOLARSHIP.] 
    Subdivision 1.  [CREATION.] The Minnesota academic 
excellence scholarship program is created to reward students who 
have demonstrated outstanding ability, achievement, and 
potential in one of the following subjects:  English/creative 
writing, fine arts, foreign language, math, science, or social 
science. 
    Subd. 2.  [ELIGIBILITY.] To be eligible to receive a 
scholarship under this section, a student must: 
    (1) graduate from a Minnesota public or nonpublic high 
school in the academic year in which the scholarship is awarded; 
    (2) successfully complete a college preparatory curriculum 
and demonstrate outstanding ability, achievement, and potential 
in one of the specified subjects; 
    (3) be admitted to enroll full time in a nonsectarian, 
baccalaureate degree-granting program at the University of 
Minnesota or at a Minnesota state university, or at a Minnesota 
private, baccalaureate degree-granting college or university; 
and 
    (4) pursue studies in the subject for which the award is 
made. 
    Subd. 3.  [SELECTION OF RECIPIENTS.] The governing board of 
an eligible institution shall determine, in consultation with 
its campuses, application dates and procedures, criteria to be 
considered, and methods of selecting students to receive 
scholarships.  A campus, with the approval of its governing 
board, may award a scholarship in any of the specified fields of 
study (1) in which the campus offers a program that is of the 
quality and rigor to meet the needs of the talented student, and 
(2) that is pertinent to the mission of the campus. 
    Subd. 4.  [AMOUNT OF SCHOLARSHIP.] The amount of the 
scholarship must be (1) at public institutions, the cost of 
tuition and fees for full-time attendance for one academic year, 
or (2) at private institutions, an amount equal to the lesser of 
the actual tuition and fees charged by the institution or the 
tuition and fees in comparable public institutions.  
Scholarships awarded under this section must not be considered 
in determining a student's financial need as provided in section 
136A.101, subdivision 5. 
    Subd. 5.  [RENEWALS.] The scholarship shall be renewed 
yearly, for up to three additional academic years, if the 
student: 
     (1) maintains full-time enrollment with a grade point 
average of at least 3.0 on a four point scale; 
     (2) pursues studies and continues to demonstrate 
outstanding ability, achievement, and potential in the field for 
which the award was made; and 
    (3) is achieving satisfactory progress toward a degree. 
    Subd. 6.  [NUMBER OF AWARDS.] The number of scholarships 
awarded each year shall be determined by the amount of 
contributions received under subdivision 8 plus the money 
available in the scholarship account, as provided in section 
168.129, subdivision 6, that is credited to a post-secondary 
institution or system through sales of its license plates.  The 
number of new awards must be determined after subtracting the 
actual and projected amount necessary for renewals. 
    Subd. 7.  [DISTRIBUTION AMONG CAMPUSES.] Post-secondary 
systems with more than one campus shall allocate at least 
three-fourths of the revenue available from the sale of license 
plates to the campuses to which the revenue is attributable.  
The governing board annually shall determine the distribution of 
the remaining portion among the campuses, after consideration of 
special needs or circumstances. 
    Subd. 8.  [ADDITIONAL CONTRIBUTIONS.] A post-secondary 
system or campus may accept contributions, beyond those raised 
through the sale of license plates, to supplement the campus 
fund for academic excellence scholarships. 
    Sec. 2.  [168.129] [SPECIAL COLLEGIATE LICENSE PLATES.] 
    Subdivision 1.  [GENERAL REQUIREMENTS AND PROCEDURES.] The 
commissioner of public safety shall issue special collegiate 
license plates to an applicant who: 
    (1) is an owner or joint owner of a passenger automobile, 
pickup truck, or van; 
    (2) pays a fee determined by the commissioner to cover the 
costs of handling and manufacturing the plates; 
    (3) pays the registration tax required under section 
168.12; 
    (4) pays the fees required under this chapter; 
    (5) contributes at least $100 to the scholarship account 
established in subdivision 6; and 
    (6) complies with laws and rules governing registration and 
licensing of vehicles and drivers.  
    Subd. 2.  [DESIGN.] After consultation with each 
participating college, university or post-secondary system, the 
commissioner shall design the special collegiate plates.  
    In consultation with the commissioner, a participating 
college or university annually shall indicate the anticipated 
number of plates needed.  Plates will be produced when the 
commissioner has received at least 200 applications. 
    Subd. 3.  [NO REFUND.] Contributions under this section 
must not be refunded.  
    Subd. 4.  [PLATE TRANSFERS.] Notwithstanding section 
168.12, subdivision 1, on payment of a transfer fee of $5, 
plates issued under this section may be transferred to another 
passenger vehicle, pickup, or van owned or jointly owned by the 
person to whom the special plates were issued.  
    Subd. 5.  [FEES CREDITED.] The fees collected under this 
section must be deposited in the state treasury and credited to 
the highway user tax distribution fund.  Fees collected under 
this section do not include the contributions collected for the 
scholarship account. 
    Subd. 6.  [SCHOLARSHIP ACCOUNT.] A scholarship account is 
created in the state treasury.  Except for one percent that may 
be retained by the commissioner of public safety for 
administrative costs, all contributions received under this 
section must be deposited by the commissioner in the scholarship 
account.  Money in the scholarship account is appropriated to 
the governing board of the institution to which it is 
attributable, as provided in subdivision 7.  
    Subd. 7.  [RECORD.] The commissioner shall maintain a 
record of the number of license plates issued for each 
post-secondary institution or system in order to determine the 
amount of scholarship funds available to that institution or 
system. 
    Sec. 3.  [GOVERNING BOARD DUTIES.] 
    The board of regents of the University of Minnesota, the 
state university board, and the governing boards of eligible 
private colleges and universities are requested to cooperate 
with the higher education coordinating board, the Minnesota 
academic excellence foundation, public and nonpublic Minnesota 
high schools, and school districts to publicize the availability 
of the scholarships and to identify qualified students. 
    Sec. 4.  [EFFECTIVE DATES.] 
    Section 1 is effective for high school graduates beginning 
in the 1991-1992 school year.  Section 2 is effective for 
vehicle registrations after June 30, 1991. 

                                ARTICLE 8

                              FINANCIAL AID
    Section 1.  Minnesota Statutes 1990, section 136A.101, 
subdivision 7, is amended to read: 
    Subd. 7.  Until June 30, 1993, "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 for at least three credits 
per quarter or semester, or the equivalent, but less than half 
time. 
    Beginning July 1, 1993, "student" means a person who is 
enrolled for at least three credits per quarter or semester, or 
the equivalent, in a program or course of study that applies to 
a degree, diploma, or certificate. 
    Sec. 2.  Minnesota Statutes 1990, section 136A.101, is 
amended by adding a subdivision to read: 
    Subd. 7a.  "Full time" means enrollment in a minimum of 15 
credits per quarter or semester, or the equivalent. 
    Sec. 3.  Minnesota Statutes 1990, section 136A.101, is 
amended by adding a subdivision to read: 
    Subd. 7b.  "Half time" means enrollment in a minimum of 
eight credits per quarter or semester, or the equivalent. 
    Sec. 4.  Minnesota Statutes 1990, section 136A.101, 
subdivision 8, is amended to read: 
    Subd. 8.  "Resident student" 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, 
unless the student is a resident of a bordering state attending 
a Minnesota high school; 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. 5.  Minnesota Statutes 1990, section 136A.101, is 
amended by adding a subdivision to read: 
    Subd. 10.  "Satisfactory academic progress" means that at 
the end of a student's second academic year of attendance at an 
institution:  
    (1) The student has at least a cumulative grade point 
average of C or its equivalent, or academic standing consistent 
with its graduation requirements; or 
    (2) The student's failure to have at least a cumulative 
grade point average of C or its equivalent, or academic standing 
consistent with its graduation requirements, was caused by (a) 
the death of a relative of the student; (b) an injury or illness 
of the student; or (c) other special circumstances.  
    Sec. 6.  Minnesota Statutes 1990, section 136A.121, 
subdivision 6, is amended to read: 
    Subd. 6.  [COST OF ATTENDANCE.] The cost of attendance 
consists of allowances specified by the board for room and board 
and miscellaneous expenses, and 
    (1) for public institutions, tuition and fees charged by 
the institution; or 
     (2) for private institutions, an allowance for tuition and 
fees equal to the lesser of the actual tuition and fees charged 
by the institution, or the instructional costs per full-year 
equivalent student in comparable public institutions.  
    For students attending less than full time, the board shall 
prorate the cost of attendance. 
    Sec. 7.  Minnesota Statutes 1990, section 136A.121, 
subdivision 11, is amended to read: 
    Subd. 11.  [RENEWAL CONDITIONS.] Each grant is renewable, 
contingent on continued residency in Minnesota, satisfactory 
academic standing progress, recommendation of the eligible 
institution currently attended, and evidence of continued need. 
    Sec. 8.  Minnesota Statutes 1990, section 136A.121, 
subdivision 16, is amended to read: 
    Subd. 16.  [HOW APPLIED; ORDER.] Grants awarded under 
sections 136A.095 to 136A.131 136A.121 and 136A.132 to 136A.1354 
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 grant account. 
    Sec. 9.  Minnesota Statutes 1990, section 136A.125, 
subdivision 2, is amended to read: 
    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 
academic progress, as determined by the institution. 
    Sec. 10.  Minnesota Statutes 1990, section 136A.125, 
subdivision 3, is amended to read: 
    Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
post-secondary institution or a private, residential, two-year 
or four-year, liberal arts, baccalaureate degree granting 
college or university located in Minnesota is eligible to 
receive child care funds from the board and disburse them to 
eligible students. 
    Sec. 11.  Minnesota Statutes 1990, section 136A.125, 
subdivision 4, is amended to read: 
    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.  The minimum financial 
stipend is $100.  
    Sec. 12.  Minnesota Statutes 1990, section 136A.125, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [RATES CHARGED.] Child care providers may not 
charge students receiving grants under this section a rate that 
is higher than the rate charged to private paying clients. 
    Sec. 13.  Minnesota Statutes 1990, section 136A.125, 
subdivision 6, is amended to read: 
    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 using relevant 
factors as determined by the board in consultation with the 
institutions.  Up to five percent of the allocation, as 
determined by the board, may be used for an institution's 
administrative expenses related to the child care grant 
program.  Any money designated, but not used, for this purpose 
must be reallocated to child care grants. 
    Sec. 14.  [136A.1311] [CASH FLOW.] 
    The higher education coordinating board may ask the 
commissioner of finance to lend general fund money to the 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 grant program is 
appropriated to the commissioner of finance for loans to the 
higher education coordinating board. 
    Sec. 15.  Minnesota Statutes 1990, section 136A.132, 
subdivision 3, is amended to read: 
    Subd. 3.  [STUDENT ELIGIBILITY.] An applicant is eligible 
to be considered for a part-time student grant if the applicant: 
    (1) is a resident of the state of Minnesota; 
    (2) is an undergraduate student who has not earned a 
baccalaureate degree; 
    (3) is pursuing a program or course of study that applies 
to a degree, diploma, or certificate; 
    (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. 
    Sec. 16.  Minnesota Statutes 1990, section 136A.132, 
subdivision 5, is amended to read: 
    Subd. 5.  [AMOUNT.] The amount of any part-time student 
grant award 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. 
The minimum financial stipend is $100. 
    Sec. 17.  Minnesota Statutes 1990, section 136A.132, 
subdivision 6, is amended to read: 
    Subd. 6.  [LENGTH OF AWARD.] Part-time student 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 are not renewable, but the recipient 
of an award may apply for additional awards for subsequent terms 
contingent on continued eligibility, need, and satisfactory 
academic progress. 
    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 is eligible for an award for only one term. 
    Sec. 18.  Minnesota Statutes 1990, section 136A.1352, 
subdivision 1, is amended to read: 
    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, 
as defined by the board. 
    Sec. 19.  Minnesota Statutes 1990, section 136A.1353, 
subdivision 4, is amended to read: 
    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 registered 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. 
    Sec. 20.  Minnesota Statutes 1990, section 136A.1355, 
subdivision 1, is amended to read: 
    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, as defined by the board.  
    Sec. 21.  Minnesota Statutes 1990, section 136A.233, 
subdivision 3, is amended to read: 
    Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
eligible students by post-secondary institutions as 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 An eligible employer shall pay at least 30 
percent of the student's compensation. 
    (f) Each post-secondary institution receiving funds money 
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. 22.  Minnesota Statutes 1990, section 299A.45, 
subdivision 1, is amended to read: 
    Subdivision 1.  [ELIGIBILITY.] Following certification 
under section 299A.44 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 an eligible 
Minnesota public post-secondary institution or a private, 
residential, two-year or four-year, liberal arts, degree 
granting college or university located in Minnesota as provided 
in section 136A.101, subdivision 4.  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. 
    Sec. 23.  [CHILD CARE INNOVATION GRANTS.] 
    Subdivision 1.  [PROGRAM.] The higher education 
coordinating board shall establish a grant program to encourage 
innovative approaches in providing or financing child care 
services to post-secondary students. 
    Subd. 2.  [QUALIFICATIONS.] Grants may be awarded to the 
governing board of a post-secondary system, to a specific 
college campus or organization, or to a private, nonprofit 
organization.  No grant may exceed $25,000. 
    Subd. 3.  [APPLICATIONS.] The board shall determine 
procedures to solicit and evaluate proposals and to award 
grants.  The board must consider the way in which a proposal 
would aid students needing child care, considering the limited 
funds available for the state child care grant program.  The 
grants may also fund programs to assure that child care funding 
and delivery is part of a student's overall package of support 
services. 
    The board must not award a grant unless the proposal 
demonstrates a strong likelihood that the value of the services 
to be generated as a result of the grant substantially exceeds 
the amount of the grant. 
    Subd. 4.  [REPORT.] The higher education coordinating board 
shall report to the appropriations and finance committees on its 
distribution of the grants by February 1, 1992.  The board shall 
evaluate the projects and make its final report by January 1, 
1993. 
     Sec. 24.  [REPEALER.] 
     Subdivision 1.  Minnesota Statutes 1990, section 136A.1351, 
is repealed. 
     Subd. 2.  Minnesota Statutes 1990, section 136A.132, is 
repealed. 
     Sec. 25.  [EFFECTIVE DATE.] 
    Section 23 is effective the day following final enactment.  
Sections 1 to 3, 6, and 15 are effective July 1, 1992.  Section 
24, subdivision 2, is effective July 1, 1993. 

                               ARTICLE 9 
HIGHER EDUCATION BOARD 
    Section 1.  Minnesota Statutes 1990, section 15A.081, 
subdivision 7b, is amended to read: 
    Subd. 7b.  [HIGHER EDUCATION OFFICERS.] The higher 
education board, state university board, the state board for 
community colleges, the state board of technical colleges, and 
the higher education coordinating board shall set the salary 
rates for, respectively, the chancellor of the higher education 
system, the chancellor of the state universities, the chancellor 
of the community colleges, the state director of vocational 
technical education, and the executive director of the higher 
education coordinating board.  The respective board shall submit 
the proposed salary increase to the legislative commission on 
employee relations for approval, modification, or rejection in 
the manner provided in section 43A.18, subdivision 2.  Salary 
rates for the positions specified in this subdivision may not 
exceed 95 percent of the salary of the governor under section 
15A.082, subdivision 3.  In deciding whether to recommend a 
salary increase, the governing board shall consider the 
performance of the chancellor or director, including the 
chancellor's or director's progress toward attaining affirmative 
action goals. 
    Sec. 2.  [136E.01] [HIGHER EDUCATION BOARD.] 
    Subdivision 1.  [MEMBERSHIP.] The higher education board, 
referred to in sections 2 to 6 as "the board," consists of 13 
members appointed by the governor with the advice and consent of 
the senate.  At least one member of the board must be a resident 
of each congressional district.  One member must be a student or 
have graduated from an institution governed by the board within 
one year of the date of appointment.  The remaining members must 
be appointed to represent the state at large.  
    Subd. 2.  [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 
compensation, removal of members, and filling of vacancies on 
the board are as provided in section 15.0575.  Members are 
appointed for a term of six years, except that the term of the 
student member is two years.  Terms end on June 30.  
    Subd. 3.  [BOARD ADMINISTRATION.] The board shall elect a 
chair and other officers as it may desire.  It shall determine 
its meeting dates and places. 
    Sec. 3.  [136E.02] [HIGHER EDUCATION BOARD CANDIDATE 
ADVISORY COUNCIL.] 
    Subdivision 1.  [PURPOSE.] A higher education board 
candidate advisory council shall assist the governor in 
determining criteria for, and identifying and recruiting 
qualified candidates for, membership on the higher education 
board. 
    Subd. 2.  [MEMBERSHIP.] The advisory council consists of 24 
members.  Twelve members are appointed by the subcommittee on 
committees of the committee on rules and administration of the 
senate.  Twelve members are appointed by the speaker of the 
house of representatives.  No more than one-third of the members 
appointed by each appointing authority may be current or former 
legislators.  No more than two-thirds of the members appointed 
by each appointing authority may belong to the same political 
party; however, political activity or affiliation is not 
required for the appointment of a member.  Geographical 
representation must be taken into consideration when making 
appointments.  Section 15.0575 governs the advisory council, 
except that the members must be appointed to six-year terms.  
    Subd. 3.  [DUTIES.] The advisory council shall: 
    (1) develop a statement of the selection criteria to be 
applied and a description of the responsibilities and duties of 
a member of the higher education board and shall distribute this 
to potential candidates; and 
    (2) for each position on the board, identify and recruit 
qualified candidates for the board, based on the background and 
experience of the candidates, and their potential for 
discharging the responsibilities of a member of the board. 
    Subd. 4.  [RECOMMENDATIONS.] The advisory council shall 
recommend at least two and not more than four candidates for 
each seat.  By January 2 of each even-numbered year, the 
advisory council shall submit its recommendations to the 
governor.  The governor is not bound by these recommendations. 
    Subd. 5.  [SUPPORT SERVICES.] The legislative coordinating 
commission shall provide administrative and support services for 
the advisory council. 
    Sec. 4.  [136E.03] [MISSION.] 
    The mission of the board is to provide programs of study 
that meet the needs of students for occupational, general, 
baccalaureate, and graduate education.  The board shall develop 
administrative arrangements that make possible the efficient use 
of the facilities and staff of the former technical colleges, 
community colleges, and state universities for providing these 
several different programs of study, so that students may have 
the benefit of improved and broader course offerings, ease of 
transfer among schools and programs, integrated course credit, 
coordinated degree programs, and coordinated financial aid.  In 
carrying out the merger of the three separate systems, the board 
shall control administrative costs by eliminating duplicative 
administrative positions and course offerings.  
    Sec. 5.  [136E.04] [POWERS AND DUTIES.] 
    Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
manage, supervise, and control the former technical colleges, 
community colleges, and state universities and all related 
property.  It shall prescribe courses of study and conditions of 
admission, prepare and confer diplomas, and adopt suitable 
policies for the institutions it manages.  Sections 14.01 to 
14.47 do not apply to policies and procedures of the board.  
    Subd. 2.  [PERSONNEL.] The board shall appoint all 
presidents, teachers, and other necessary employees.  Salaries 
and benefits of employees must be determined according to 
chapters 43A and 179A.  
    Subd. 3.  [BUDGET.] The board shall submit to the governor 
and the legislature the budget request for its several different 
programs of study.  
     Subd. 4.  [OCCUPATIONAL AND VOCATIONAL PROGRAM 
INFORMATION.] In its biennial budget request, the board shall 
provide to the governor and legislature information on its 
occupational and vocational programs specifying revenues, 
expenditures, trends for expenditures, expenditures for 
instructional equipment, and other relevant information related 
to those programs.  The board shall provide the governor and 
legislature in its biennial budget request information on the 
accountability measures it uses to determine the efficiency and 
effectiveness of the occupational and vocational programs. 
    Subd. 5.  [PROGRAM DELIVERY.] The board shall avoid 
duplicate program offerings.  After consulting with the local 
advisory committees, the board shall develop programs to meet 
the needs of students and the state. 
    Subd. 6.  [TRANSFERABILITY.] The board shall place a high 
priority on ensuring the transferability of credit among the 
institutions it governs.  
    Subd. 7.  [REGISTRATION AND FINANCIAL AID.] The board shall 
devise a registration system that simplifies and combines 
registration for the institutions it governs, improves the 
financial aid application process for students, and provides 
registration at common locations. 
    Sec. 6.  [136E.05] [LOCAL ADVISORY COMMITTEES.] 
    The president, with the approval of the chancellor and the 
board, may appoint a local advisory committee for each campus.  
Committee members must be qualified people who have knowledge of 
and interest in the campus.  The board shall define the role and 
authority of the advisory committees and establish procedures 
for the appointment, terms, and termination of members.  The 
president or an appointee of the president shall regularly meet 
and consult with the local advisory committee. 
    Sec. 7.  Minnesota Statutes 1990, section 179A.10, 
subdivision 2, is amended to read: 
    Subd. 2.  [STATE EMPLOYEES.] Unclassified employees, unless 
otherwise excluded, are included within the units which include 
the classifications to which they are assigned for purposes of 
compensation.  Supervisory employees shall only be assigned to 
units 12 and 16.  The following are the appropriate units of 
executive branch state employees:  
    (1) law enforcement unit; 
    (2) craft, maintenance, and labor unit; 
    (3) service unit; 
    (4) health care nonprofessional unit; 
    (5) health care professional unit; 
    (6) clerical and office unit; 
    (7) technical unit; 
    (8) correctional guards unit; 
    (9) state university instructional unit; 
    (10) community college instructional unit; 
    (11) technical college instructional unit; 
    (12) state university administrative unit; 
    (12) (13) professional engineering unit; 
    (13) (14) health treatment unit; 
    (14) (15) general professional unit; 
    (15) (16) professional state residential instructional 
unit; and 
    (16) (17) supervisory employees unit.  
    Each unit consists of the classifications or positions 
assigned to it in the schedule of state employee job 
classification and positions maintained by the commissioner.  
The commissioner may only make changes in the schedule in 
existence on the day prior to the effective date of this section 
as required by law or as provided in subdivision 4.  
    Sec. 8.  [TRANSITIONAL PROVISIONS.] 
    Subdivision 1.  [APPOINTMENTS TO BOARD.] Appointments to 
the higher education board must be made by July 1, 1991.  
Notwithstanding section 2, the initial higher education board 
consists of two members each from the state board of technical 
colleges, state board for community colleges, and the state 
university board, appointed by their respective boards and six 
members appointed by the governor.  The governor's appointees 
may also be members of the current governing boards.  The 
members appointed by boards must have been confirmed by the 
senate to the board from which they are appointed and served for 
at least one year on the board from which they were appointed.  
Initial higher education board members appointed by boards are 
not subject to further senate confirmation.  Initial appointees 
of the governor are not subject to section 3.  The governor 
shall appoint the student member July 1, 1995.  Notwithstanding 
section 2, subdivision 2, the initial members of the higher 
education board must be appointed so that an equal number will 
have terms expiring in three, five, and seven years.  To the 
extent possible, the initial board must have the geographic 
balance required by section 2. 
    Subd. 2.  [INTERIM CHANCELLOR.] By November 1, 1991, the 
board shall hire a chancellor on an interim basis for the period 
ending June 30, 1995.  Thereafter, the board shall conduct a 
search and hire a chancellor to serve on a continuing basis. 
    Subd. 3.  [PERSONNEL.] The chancellor may hire employees 
necessary to carry out the transitional duties imposed by this 
section.  The commissioner of employee relations shall cooperate 
with the chancellor to expedite hiring these employees.  
    Subd. 4.  [TRANSITIONAL PLANNING PROCESS.] The board shall 
immediately after appointment commence planning for the merger 
of the technical college, community college, and state 
university systems.  As part of the planning process, the board 
shall consult with the local advisory committees, 
representatives of student government organizations, and 
exclusive representatives of the employees of the state 
universities, community colleges, and technical colleges.  The 
board shall complete a preliminary merger plan and timetable for 
the plan on or before March 1, 1992.  Copies of the plan shall 
be submitted to the chairs of the education, appropriation, and 
finance committees of the legislature.  
    Subd. 5.  [RESTRUCTURING.] The board shall submit a 
proposal to the legislature concerning the appropriate 
administrative structure for the educational institutions it 
governs.  The board shall give special attention to the need to 
integrate the administration of programs of study now offered at 
institutions from different systems.  The board, in cooperation 
with the department of employee relations and the department of 
administration, shall give special attention to the need to 
integrate administrative functions of the educational 
institutions it governs, including:  (1) personnel, labor, and 
compensation policies; (2) purchases of supplies; and (3) 
management of property, and construction and repair of 
facilities.  
    Subd. 6.  [SCHOOL DISTRICTS.] The board shall, in 
cooperation with the commissioner of employee relations, submit 
proposals to the legislature concerning labor and other issues 
related to the transfer of technical colleges from school board 
governance. 
    The board shall, in cooperation with the commissioner of 
administration, submit a proposal to the legislature concerning 
reimbursement to school districts for technical college property 
transferred to the board pursuant to section 9. 
    Subd. 7.  [LEGAL SERVICES.] The board shall submit to the 
legislature proposals for providing the board with adequate 
legal services. 
    Subd. 8.  [ACCOUNTING SYSTEM.] The commissioner of finance 
shall submit proposals to the legislature that will enable the 
board to use a single accounting system in accord with generally 
accepted accounting principles for colleges and universities and 
eliminate the need to have a second system to account for its 
money in the state treasury. 
    Subd. 9.  [BUDGET REQUESTS.] The board shall consult with 
the commissioner of finance, the chair of the senate finance 
committee, and the chair of the house appropriations committee 
and submit to the legislature a proposed format for its 1995 
budget request.  The higher education board shall use the 
format, as revised in accordance with instructions from the 
legislature, to present its budget request to the governor and 
the 1995 legislature.  
    Subd. 10.  [INITIAL ADVISORY COUNCIL APPOINTMENTS.] 
Notwithstanding section 3, the initial members of the higher 
education board candidate advisory council must be appointed so 
that an equal number will have terms expiring in two, four, and 
six years. 
    Sec. 9.  [TRANSFER OF POWERS.] 
    The state board of technical colleges, the state board for 
community colleges, and the state university board and their 
respective chancellors retain responsibility for operating and 
managing their systems until July 1, 1995.  On July 1, 1995, the 
authority, duties, responsibilities, related property of the 
state board of technical colleges, school boards, intermediate 
school boards, and joint vocational technical boards with 
respect to technical colleges, the state board for community 
colleges, and the state university board are transferred to the 
higher education board under Minnesota Statutes, section 
15.039.  The state board of technical colleges, state board for 
community colleges, and state university board are abolished, 
effective July 1, 1995. 
    Sec. 10.  [CURRENT EMPLOYEES.] 
    It is the policy of the state of Minnesota that any 
restructuring of the higher education systems be accomplished 
while ensuring that fair and equitable arrangements are carried 
out to protect the interests of higher education system 
employees, and while facilitating the best possible service to 
the public.  The higher education board shall make every effort 
to train and retrain existing employees for a changing work 
environment. 
    For employees whose positions will be eliminated by merging 
higher education systems, options presented to employees must 
include but not be limited to job and training opportunities 
necessary to qualify for another job within their current 
institution or a similar job in another institution.  
    Implementation of this section, as well as procedures for 
notifying employees affected by the merger, must be negotiated 
in good faith under Minnesota Statutes, chapter 179A.  Nothing 
in this section shall be construed as diminishing any rights 
defined in collective bargaining agreements under this chapter 
or Minnesota Statutes, chapter 179A.  
    Sec. 11.  [TECHNICAL COLLEGE COLLECTIVE BARGAINING.] 
    For purposes of collective bargaining, faculty of the 
technical colleges will initially be assigned to the new 
technical college instructional unit provided for in Minnesota 
Statutes, section 179A.10, subdivision 2, as amended by this 
act.  The new bargaining unit may begin to organize on or after 
July 1, 1993, for negotiating contracts that become effective on 
or after July 1, 1995.  Other technical college employees must 
be assigned to the appropriate existing state bargaining unit.  
    Sec. 12.  [EFFECT OF CURRENT COLLECTIVE BARGAINING 
AGREEMENTS.] 
    The terms and conditions of a collective bargaining 
agreement covering an employee transferred to the higher 
education board remains in effect until a successor agreement 
becomes effective.  This section applies to all employees 
transferred to the board. 
    Sec. 13.  [TRANSITIONAL PERIOD COLLECTIVE BARGAINING.] 
    Contracts for the period commencing July 1, 1995, for 
employees transferred to the higher education board shall be 
negotiated with the higher education board.  Negotiations for 
those contracts can begin anytime after July 1, 1994, and may be 
initiated by either party notifying the other of the desire to 
begin the negotiating process. 
    Sec. 14.  [COOPERATION.] 
    The state university board, state board of technical 
colleges, and state board for community colleges shall cooperate 
with the higher education board.  Each of those boards may 
transfer money, personnel, or equipment to the higher education 
board. 
    Sec. 15.  [REVENUE FUND; OUTSTANDING REVENUE BONDS.] 
    Nothing in this article shall in any way alter or amend 
Minnesota Statutes, sections 136.35 through 136.41, or any 
contract entered into by the board pursuant to those sections, 
or the pledge and appropriation of revenues from the revenue 
fund and any covenants made for the security of revenue bonds 
authorized to be issued by the state university board. 
    Sec. 16.  [EFFECTIVE DATE.] 
    This article is effective the day following final 
enactment, except that section 7 is effective July 1, 1993, for 
collective bargaining of contracts that become effective on or 
after July 1, 1995, and sections 5 and 6 are effective July 1, 
1995. 
    Presented to the governor May 31, 1991 
    Signed by the governor June 4, 1991, 9:07 p.m.