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Office of the Revisor of Statutes

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

 
    Laws of Minnesota, 1993 First Special Session 

                          CHAPTER 2-S.F.No. 2 
           An act relating to 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; prescribing changes in eligibility and in 
          duties and responsibilities for certain financial 
          assistance programs; prescribing fees; adjusting 
          certain duties and powers of the higher education 
          coordinating board; prescribing certain changes for 
          post-secondary systems; establishing an instructional 
          telecommunications council; providing for grants from 
          the higher education coordinating board for regional 
          linkages and coordination; authorizing the state board 
          of community colleges to use higher education 
          facilities authority revenue bonds to construct 
          student residences; creating three accounts in the 
          permanent university fund and making allocations from 
          the accounts; providing tuition exemptions at 
          technical colleges for Southwest Asia veterans; 
          establishing grant programs to promote recruitment and 
          retention initiatives by nurses training programs 
          directed toward persons of color; establishing grant 
          programs for nursing students who are persons of 
          color; amending Minnesota Statutes 1992, sections 
          3.9741; 16A.127, subdivision 8; 126.56, subdivision 5; 
          135A.03, subdivision 7; 135A.06, subdivision 1; 
          135A.061; 136A.02, subdivisions 5, 6, and 7; 
          136A.0411; 136A.08, subdivisions 2 and 6; 136A.101, 
          subdivisions 1 and 7; 136A.121, subdivisions 6 and 9; 
          136A.1353, subdivision 4; 136A.1354, subdivision 4; 
          136A.1701, subdivision 4, and by adding a subdivision; 
          136A.233; 136A.653, subdivision 1; 136A.69; 136A.87; 
          136C.13, subdivision 4; 136C.15; 136C.61, subdivision 
          7; 136E.03; 136E.04, subdivision 1; 137.022, 
          subdivision 3, and by adding a subdivision; 141.25, 
          subdivision 8; 141.26, subdivisions 1 and 5; and 
          583.24, subdivision 4; Laws 1986, chapter 398, article 
          1, section 18, as amended; Laws 1990, chapter 591, 
          article 3, section 10, as amended; Laws 1991, chapter 
          356, articles 6, section 4, as amended; and 9, 
          sections 8 and 10; proposing coding for new law in 
          Minnesota Statutes, chapters 136A; and 137; repealing 
          Minnesota Statutes 1992, sections 136A.121, 
          subdivision 10; 136A.134; 136A.234; and 136A.70; Laws 
          1991, chapter 356, article 8, section 23. 
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 "1994" or "1995" in this 
article indicates that the amount is appropriated to be 
available for the fiscal year ending June 30, 1994, or June 30, 
1995, respectively.  "The first year" is fiscal year 1994.  "The 
second year" is fiscal year 1995.  "The biennium" is fiscal 
years 1994 and 1995. 

                             SUMMARY BY FUND
                          1994          1995           TOTAL
General            $1,005,181,000 $1,037,819,000 $2,043,000,000

                      SUMMARY BY AGENCY - ALL FUNDS
                          1994          1995           TOTAL
Higher Education Coordinating Board
                      122,248,000    119,498,000    241,746,000
State Board of Technical Colleges
                      165,109,000    170,525,000    335,634,000
State Board for Community Colleges
                       95,751,000    104,248,000    199,999,000
State University Board
                      175,399,000    179,621,000    355,020,000
Board of Regents of the University of Minnesota
                      444,966,000    462,187,000    907,153,000
Mayo Medical Foundation
                          808,000        840,000      1,648,000
Higher Education Board 
                          900,000        900,000      1,800,000
                                           APPROPRIATIONS 
                                       Available for the Year 
                                           Ending June 30 
                                          1994         1995 
Sec. 2.  HIGHER EDUCATION
COORDINATING BOARD
Subdivision 1.  Total
Appropriation                        122,248,000    119,498,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Agency Administration
     3,216,000      3,166,000
The higher education coordinating 
board, in cooperation with the 
commissioner of finance and the 
commissioner of revenue, shall 
determine if there is an economically 
feasible way to encourage families to 
save money for their children's 
education.  Particular effort shall be 
directed at the education savings plans 
contained in S.F. No. 468 and S.F. No. 
1346 to determine if the tax revenue 
losses predicted in the fiscal notes 
are accurate, and if the benefits to an 
individual and the state are of greater 
value than the state's lost revenues.  
The higher education coordinating board 
shall report its findings to the 
governor and the education and tax 
committees of the legislature before 
September 15, 1993.  The report shall 
include specific options for financing 
the recommendations, any necessary tax 
form and instruction changes, and any 
other information necessary for the 
proposals to be enacted into law. 
 The higher education coordinating board 
shall examine the feasibility of 
reducing the minimum amount a student 
can borrow under the SELF program, and 
allowing SELF recipients who return to 
school during their repayment phase to 
reenter the in-school phase of 
payments.  The board may change the 
SELF loan requirements based on the 
results of the examination. 
This appropriation includes money to 
provide technical advice and other 
support for child care innovation at 
eligible institutions, and to review 
biennial plans submitted by 
institutions.  Plans must include 
strategies to supplement state money 
with community resources.  
Subd. 3.  State Grants
    101,950,000       97,950,000
 If the appropriation in this 
subdivision for either year is 
insufficient, the appropriation for the 
other year is available for it.  
 The legislature intends that the higher 
education coordinating board make full 
grant awards in each year of the 
biennium.  
 This appropriation contains money for 
increasing living allowances for state 
grants to $4,115 each year.  
 Beginning in the 1994-1995 academic 
year, the legislature intends to adopt 
the private college cap of $6,814 
recommended by the higher education 
coordinating board and the department 
of finance, pending alternative 
recommendations of the financial aid 
task force.  
 The higher education coordinating board 
shall meet with the nursing community 
in order to evaluate consolidating all 
nursing grant programs administered by 
the state, and report its findings to 
the legislature by February 1, 1994. 
 This appropriation includes $250,000 
each year for grants to nursing 
programs to recruit persons of color 
and to provide grants to nursing 
students who are persons of color.  Of 
this amount, $100,000 each year is for 
recruitment and retention of students 
of color in nursing programs leading to 
licensure as a registered nurse.  Other 
than the grants to students, all grants 
shall be matched with at least the same 
amount from grantee sources or nonstate 
money.  
 This appropriation includes money to 
begin postservice benefit accounts for 
the youthworks program.  By October 1, 
1993, the higher education coordinating 
board, in consultation with the 
youthworks task force, shall design a 
plan to administer the postservice 
benefit accounts of the youthworks 
program.  The plan shall include 
strategies to augment the appropriation 
by maximizing federal and other 
nonstate money.  The board shall report 
the plan to the education committees of 
the legislature by October 1, 1993.  In 
the event that federal money becomes 
available for post-secondary 
initiatives involving community 
service, the board may use this money 
for any state contribution required. 
Subd. 4.  Interstate Tuition
Reciprocity
     5,050,000      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. 
 The higher education coordinating board 
is authorized to enter into a 
reciprocity agreement with the province 
of Ontario. 
 By February 1, 1994, the higher 
education coordinating board and the 
department of finance shall jointly 
report on the fiscal and policy 
implications of tuition reciprocity 
agreements to the higher education 
finance divisions.  The report shall 
examine the costs to the state, the 
effects on Minnesota public 
post-secondary systems and campuses, 
enrollment patterns of Minnesota 
students in reciprocity states, and the 
enrollment patterns of reciprocity 
students in Minnesota institutions.  
The public post-secondary systems shall 
be consulted throughout the study. 
Subd. 5.  State Work Study
     8,219,000      8,219,000
 Increases in the appropriation for the 
state work-study program shall be used, 
to the extent possible, for campus work 
that is relevant to a student's 
academic program or that otherwise 
provides a meaningful academic 
experience, or for public service work 
in the community. 
Subd. 6.  Minitex Library Program
     2,063,000      2,063,000
Subd. 7.  Telecommunications
     1,750,000      3,050,000
 (1) $642,000 the first year and 
$1,028,000 the second year is for the 
purposes of article 5, section 2. 
 (2) $758,000 the first year and 
$1,322,000 the second year is for 
grants for regional linkages in article 
5, section 3.  
 (3) $350,000 the first year and 
$700,000 the second year is for grants 
for regional coordination in article 5, 
section 4.  
 The appropriations in this subdivision 
may be transferred among the clauses 
and between fiscal years. 
Subd. 8.  Income Contingent Loans
 The higher education coordinating board 
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.  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 under Minnesota Statutes, 
section 136A.162. 
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. 
Sec. 3.  STATE BOARD OF TECHNICAL COLLEGES
Subdivision 1.  Total
Appropriation                       165,109,000    170,525,000
 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 
$225,758,000 the first year and 
$234,386,000 the second year. 
 The technical colleges and community 
colleges shall ensure that a 
participating business or agency 
compensates for as much of the cost of 
the customized training services as 
possible, in the form of money or 
in-kind contributions.  The state's 
share shall not exceed 50 percent of 
the systemwide costs of these services. 
 The state board of technical colleges 
is requested to continue its policy of 
assisting students who are refugees. 
Subd. 3.  Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$1,647,000 the first year and 
$1,606,000 the second year. 
 $462,000 the first year and $421,000 
the second year are for debt service 
payments to school districts for 
technical college buildings financed 
with district bonds issued before 
January 1, 1979. 
 $150,000 each year is for southwest 
Asia veterans tuition relief.  
Subd. 4.  State Council on Vocational 
Technical Education 
 This appropriation includes funding for 
the state council on vocational 
education. 
Sec. 4.  STATE BOARD FOR COMMUNITY 
COLLEGES 
Subdivision 1.  Total
Appropriation                         95,751,000    104,248,000
 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 
$129,095,000 the first year and 
$141,698,000 the second year. 
 $134,000 each year is for 
administrative and instructional 
support at the Anoka-Ramsey Community 
College extension center in Cambridge.  
The legislature intends that Cambridge 
continue to be operated as an extension 
center and not be developed into an 
independent college. 
Subd. 3.  Noninstructional 
Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$22,229,000 each year.  
Sec. 5.  STATE UNIVERSITY BOARD 
Subdivision 1.  Total
Appropriation                       175,399,000    179,621,000
 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 
$241,285,000 the first year and 
$247,587,000 the second year. 
 Notwithstanding Minnesota Statutes, 
section 136.09, subdivision 3, 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 ways and means. 
The state university board shall review 
the internal allocation formula used to 
distribute appropriations to its 
campuses.  The legislature anticipates 
that the board will provide funding 
consistent with its overall 
appropriation to the Winona State 
University campus for the unique costs 
associated with upper division 
offerings at the Rochester center.  
Winona State University, in cooperation 
with Rochester Community College and 
the University of Minnesota, shall 
develop and implement a plan to reduce 
the duplication and cost of 
administrative and student services at 
the Rochester center.  All savings that 
result from implementing the plan may 
be retained by the three systems in 
proportion to the amount that each 
saved, and shall be redirected to 
improving programs, acquiring better 
equipment, and improving the retention 
and graduation rates. 
Subd. 3.  Noninstructional 
Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$26,654,000 each year.  
Sec. 6.  BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA 
Subdivision 1.  Total
Appropriation                        444,966,000    462,187,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Operations and
Maintenance                          362,119,000    375,980,000
(a) Instructional Expenditures 
 The legislature estimates that 
instructional expenditures will be 
$385,040,000 the first year and 
$405,863,000 the second year. 
(b) Noninstructional Expenditures 
 The legislature estimates that 
noninstructional expenditures will be 
$115,289,000 each year.  
Subd. 3.  Special
Appropriation                         82,847,000     86,207,000
 The amounts expended for each program 
in the four categories of special 
appropriations shall be separately 
identified in the 1995 biennial budget 
document. 
(a) Agriculture and Extension Service 
    44,247,000     45,997,000
 This appropriation is for the 
Agricultural Experiment Station and 
Minnesota Extension Service. 
 Any salary increases granted by the 
university to personnel paid from the 
Minnesota Extension appropriation must 
not result in a reduction of the county 
portion of the salary payments. 
 During the biennium, the university 
shall maintain an advisory council 
system for each experiment station.  
The advisory councils must be broadly 
representative of range of size and 
income distribution of farms and 
agribusinesses and must not 
disproportionately represent those from 
the upper half of the size and income 
distributions. 
(b) Health Sciences 
    16,758,000     17,458,000
 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  
     2,911,000      3,021,000
 This appropriation is for the 
Geological Survey, Underground Space 
Center, Talented Youth Mathematics 
Program, Microelectronics and 
Information Science Center, and the 
Productivity Center. 
(d) System Specials 
    18,931,000     19,731,000
 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 Education Amendments of 1972 
and Minnesota Statutes, section 
126.21.  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
 Prior to selling its shares in the 
supercomputer center, the board of 
regents shall present its plan for the 
sale and for meeting its supercomputing 
needs to the higher education finance 
divisions.  To the extent possible, the 
plan must ensure that the university 
receives a reasonable value for the 
public investment in the center. 
Sec. 7.  MAYO MEDICAL FOUNDATION 
Subdivision 1.  Total
Appropriation                            808,000        840,000
 The amounts that may be spent from this 
appropriation for each purpose are 
specified in the following subdivisions.
Subd. 2.  Medical School
       504,000        493,000
 The state of Minnesota shall pay a 
capitation of $9,882 in the first year 
and $10,270 in the second year for each 
student who is a resident of 
Minnesota.  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.  
Subd. 3.  Family Practice and
Graduate Residency Program
       304,000        347,000
 The state of Minnesota provides a 
capitation of $15,222 the first year 
and $15,780 the second year for each 
student. 
Sec. 8.  HIGHER EDUCATION BOARD          900,000        900,000
Subdivision 1.  Appropriations; 
Availability 
 The appropriation in fiscal year 1993 
for the operation of the higher 
education board shall not cancel, but 
shall be available for fiscal year 1994.
 Any unexpended balance remaining in the 
first year shall not cancel, but is 
available for the second year.  
Subd. 2.  Student Members 
 By July 1, 1993, the governor shall 
appoint one student from the state 
university system, one student from the 
community college system, and one 
student from the technical college 
system to the higher education board.  
The terms of the appointments shall 
expire June 30, 1995. 
Subd. 3.  Personnel 
 The legislature intends that the higher 
education board, during the biennium, 
rely on the expertise of personnel in 
the existing post-secondary systems, 
and elsewhere in state government to 
the extent possible. 
Subd. 4.  Task Forces; 
Working Groups 
During the biennium, the board must 
include a representative of faculty and 
a representative of students on all 
task forces or working groups it 
establishes. 
Sec. 9.  POST-SECONDARY SYSTEMS 
Subdivision 1.  Library and 
equipment expenditures 
 In each year of the biennium, each 
post-secondary system shall spend no 
less on libraries and instructional 
equipment than in the previous biennium.
Subd. 2.  Importance of Teaching 
 The legislature recognizes the 
importance of each faculty member's 
contributions in the classroom, and is 
aware of the profound effect a quality 
teacher has on a student's learning.  
The legislature encourages each board 
to place greater emphasis on the 
teaching mission at each campus. 
Subd. 3.  Educational Enhancements 
 The legislature provided full funding 
for each post-secondary system, using 
the formula contained in Minnesota 
Statutes, section 135A.03.  The 
appropriation to each post-secondary 
governing board includes funding to 
enhance the quality of education in 
that system without placing an undue 
burden on students through large 
tuition increases.  The legislature 
anticipates that any revenue raised 
from tuition increases greater than 
three percent of the previous year's 
tuition level must be used for 
educational enhancements. 
 Educational enhancements include: 
 (1) system initiatives to improve 
quality, namely, access to excellence, 
Q-7, student success, and campaign 
2001.  The legislature supports their 
continuation and refinement; 
 (2) legislative initiatives to improve 
quality including, but not limited to, 
enhancements in libraries, 
instructional equipment, and 
technology; faculty training in 
telecommunication instruction; 
development and use of courses to be 
delivered via telecommunication; 
availability and size of classes; 
student services; facilities; 
curriculum or teaching innovations; 
mechanisms to improve retention and 
timely graduation; and career 
information or counseling to students 
including information on opportunities 
and prospects for employment; and 
 (3) pilot projects to test the use of 
different types of performance 
indicators to measure educational 
quality.  Up to two campuses in each 
system may be designated as pilots by 
the task force on post-secondary 
funding according to the 
recommendations of each chancellor. 
Pilots shall begin in the 1993-1994 
academic year and continue into the 
following year.  Campuses must 
internally reallocate money to at least 
match new state money for this purpose. 
 By January 15, 1995, each system must 
provide a succinct report in the 1995 
biennial budget document on the results 
achieved through its investment in 
educational enhancements.  
Subd. 4.  Post-Secondary Enrollment Options
The higher education advisory council 
shall examine costs and funding of 
students enrolled in post-secondary 
enrollment options courses offered by 
agreement between a college and a 
school district.  The higher education 
advisory council shall submit 
recommendations to the higher education 
financial divisions on fair and 
fiscally prudent funding for these 
students by February 1, 1994. 
 Subd. 5.  Title IX
 Each campus with a men's varsity level 
hockey team and women's club level 
hockey shall analyze the campus 
responsibility for Title IX equity as 
it applies to this situation and shall 
report to the education committees by 
January 15, 1994. 
Subd. 6.  POST Board
 Beginning in fiscal year 1996, money 
for law enforcement education that is 
currently provided through the POST 
board shall be provided through general 
fund appropriations to be calculated at 
the same initial base as the previous 
POST funding, except that the base 
adjustment for the community colleges 
shall be $290,000.  The legislature 
intends that penalty surcharge dollars 
under Minnesota Statutes, section 
626.861, subdivision 1, shall continue 
to be appropriated to the POST account 
for other lawful purposes. 
Subd. 7.  Funding Mechanisms 
 For purposes of determining system 
budgets and appropriations for 
1996-1997, the legislature intends to 
adopt new funding mechanisms in 1994. 
Subd. 8.  Post-secondary 
Appropriations for Fiscal Years 
1996 and 1997 
 Notwithstanding any other section of 
Minnesota Statutes to the contrary, 
general fund appropriations for the 
University of Minnesota, the higher 
education board, the higher education 
coordinating board, and Mayo medical 
shall be $2,040,000,000 for the 
biennium beginning July 1, 1995.  
Unless otherwise recommended by the 
future funding task force, this amount 
shall be allocated in equal amounts 
each year among these entities in 
proportion to their fiscal year 1995 
appropriations or the fiscal year 1995 
appropriations of the systems that 
comprise them. 
 The commissioner of finance shall 
calculate the base budget for these 
entities according to Minnesota 
Statutes, chapter 135A.  If any 
adjustments to the base calculations 
are necessary in order to arrive at an 
appropriation of $2,040,000,000, the 
commissioner shall provide clear 
information in the 1996-1997 biennial 
budget document showing those 
adjustments. 
    Sec. 10.  [EFFECTIVE DATE.] 
    Section 2, subdivision 3, is effective the day following 
final enactment. 

                                ARTICLE 2

                         HECB AND FINANCIAL AID 
    Section 1.  Minnesota Statutes 1992, section 136A.02, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADVISORY GROUPS.] The board may appoint advisory 
task forces to assist it in the study of higher education within 
the state or in the administration of federal programs.  The 
task forces expire and the terms, compensation, and removal of 
members are as provided in section 15.059, except that the task 
force established under section 135A.05 and the advisory 
councils established under subdivisions 6 and 7 expire June 30, 
1993. 
    Sec. 2.  Minnesota Statutes 1992, section 136A.02, 
subdivision 6, is amended to read: 
    Subd. 6.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
education advisory council is established.  The council is 
composed of the president of the University of Minnesota, the 
chancellor of the state universities, the chancellor of the 
community colleges, the chancellor of vocational the technical 
education colleges, the commissioner of education, the president 
of the private college council, and a representative from the 
Minnesota association of private post-secondary schools.  The 
advisory council shall (1) bring to the attention of the board 
any matters that the council deems necessary, (2) make 
appropriate recommendations, (3) review and comment upon 
proposals and other matters before the board, and (4) provide 
other assistance to the board.  The board shall periodically 
inform the council of matters under consideration by the board.  
The board shall refer all proposals to the council before 
submitting recommendations to the governor and the legislature.  
The board shall provide time for a report from the advisory 
council at each meeting of the board. 
    The council shall report to the board at least quarterly. 
The council shall determine its meeting times, but it shall also 
meet within 30 days after a request by the executive director of 
the board.  The council expires June 30, 1993 1995. 
    Sec. 3.  Minnesota Statutes 1992, section 136A.02, 
subdivision 7, is amended to read: 
    Subd. 7.  [STUDENT ADVISORY COUNCIL.] A student advisory 
council to the board is established.  The members of the council 
shall include the chair of the University of Minnesota 
university student senate, the state chair of the Minnesota 
state university student association, the president of the 
Minnesota community college student association, the president 
of the Minnesota vocational technical college student 
association, the president of the Minnesota association of 
private college students, and a student who is enrolled in a 
private vocational school registered under this chapter, to be 
appointed by the Minnesota association of private post-secondary 
schools.  A member may be represented by a designee. 
    The advisory council shall: 
    (1) bring to the attention of the board any matter that the 
council believes needs the attention of the board; 
    (2) make recommendations to the board as the council deems 
appropriate; 
    (3) review and comment upon proposals and other matters 
before the board; 
    (4) appoint student members to board advisory groups as 
provided in subdivision 5a; 
    (5) provide any reasonable assistance to the board; and 
    (6) select one of its members to serve as chair.  The board 
shall inform the council of all matters under consideration by 
the board and shall refer all proposals to the council before 
the board acts or sends the proposals to the governor or the 
legislature.  The board shall provide time for a report from the 
advisory council at each meeting of the board. 
    The student advisory council shall report to the board 
quarterly and at other times that the council considers 
desirable.  The council shall determine its meeting time, but 
the council shall also meet with the executive director of the 
board within 30 days after the director's request for a council 
meeting.  The student advisory council shall meet quarterly with 
the higher education advisory council and the board executive 
committee.  The council expires June 30, 1993 1995. 
    Sec. 4.  Minnesota Statutes 1992, section 136A.0411, is 
amended to read: 
    136A.0411 [COLLECTING FEES.] 
    The board may charge fees for seminars, conferences, 
workshops, services, and materials.  The board may collect fees 
for registration and licensure of private institutions under 
sections 136A.61 to 136A.71 and chapter 141.  The money is 
annually appropriated to the board. 
    Sec. 5.  Minnesota Statutes 1992, section 136A.08, 
subdivision 2, is amended to read: 
    Subd. 2.  [AUTHORIZATION.] The Minnesota higher education 
coordinating board, in consultation with the commissioner of 
finance and each affected public post-secondary board, may enter 
into agreements, on subjects that include remission of 
nonresident tuition for designated categories of students at 
public post-secondary institutions, with appropriate state or 
provincial agencies and public post-secondary institutions in 
other states or provinces.  The agreements shall be for the 
purpose of the mutual improvement of educational advantages for 
residents of this state and other states or provinces with whom 
agreements are made. 
    Sec. 6.  Minnesota Statutes 1992, section 136A.08, 
subdivision 6, is amended to read: 
    Subd. 6.  [APPROVAL.] An agreement made by the board under 
this section is not valid as to a particular institution without 
the approval of that institution's state or provincial governing 
board.  A valid agreement under this subdivision that incurs 
additional financial liability to the state or to any of the 
Minnesota public post-secondary boards, beyond enrollment 
funding adjustments, must be submitted to the commissioner of 
finance and to the chairs of the higher education finance 
divisions of the senate finance and house appropriations 
committees for review.  The agreement remains valid unless it is 
disapproved in law. 
    Sec. 7.  Minnesota Statutes 1992, section 136A.101, 
subdivision 1, is amended to read: 
    Subdivision 1.  For purposes of sections 136A.095 to 
136A.134 136A.132, the terms defined in this section have the 
meanings ascribed to them. 
    Sec. 8.  Minnesota Statutes 1992, 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 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.  Credit equivalencies 
assigned by an institution that are applicable to federal Pell 
grant calculations shall be counted as part of a student's 
credit load. 
    Sec. 9.  Minnesota Statutes 1992, section 136A.121, 
subdivision 6, is amended to read: 
    Subd. 6.  [COST OF ATTENDANCE.] (a) 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.  
    (b) For the purpose of paragraph (a), clause (2), 
"comparable public institutions" to both two- and four-year, 
private, residential, liberal arts, degree-granting colleges and 
universities must be the same. 
    (c) For a student attending less than full time, the board 
shall prorate the cost of attendance to the actual number of 
credits for which the student is enrolled. 
    Sec. 10.  Minnesota Statutes 1992, section 136A.121, 
subdivision 9, is amended to read: 
    Subd. 9.  [INITIAL AWARDS.] An undergraduate student who 
has not previously received a grant and who meets the board's 
requirements is eligible to apply for and receive an initial a 
grant in any year of undergraduate study unless the student has 
obtained a baccalaureate degree or previously has been enrolled 
full time or the equivalent for eight semesters or 12 quarters.  
    Sec. 11.  [136A.122] [AKITA GRANTS.] 
    The higher education coordinating board may provide grants 
to 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 must 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. 
    Sec. 12.  Minnesota Statutes 1992, 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 
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 
of each year.  By June 30 of each 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 of each year.  Interested schools, colleges, or programs of 
nursing education must complete and return the annual 
participation request form provided by the board. 
    Sec. 13.  Minnesota Statutes 1992, section 136A.1354, 
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 or colleges of 
nursing, or programs of advanced nursing education, applying to 
participate in the nursing grant program based on the last 
academic year's enrollment of registered nurses in schools or 
colleges of nursing, or programs of advanced nursing education. 
Money not used by a recipient nursing program must be returned 
to the higher education coordinating board for redistribution 
under this section.  The board shall establish an application 
process for interested schools or colleges of nursing, or 
programs of advanced nursing education.  Initial applications 
are due by January 1 of each year.  By June 30 of each year, the 
board shall notify each applicant school or college of nursing, 
or program of advanced nursing education, of its approximate 
allocation of money to allow the school, college, or program to 
determine the number of students that can be supported by the 
allocation.  The board shall distribute money to the schools or 
colleges of nursing, or programs of advanced nursing education, 
by August 1 of each year.  Interested schools, colleges, or 
programs of advanced nursing education must complete and return 
the annual participation request form provided by the board.  
    Sec. 14.  [136A.1359] [GRANTS FOR NURSING STUDENTS WHO ARE 
PERSONS OF COLOR.] 
    Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
established under the authority of the higher education 
coordinating board to provide grants to students who are persons 
of color who are entering or enrolled in an educational program 
that leads to licensure as a registered nurse. 
    Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
a student shall be:  
    (1) a citizen of the United States; 
    (2) a resident of the state of Minnesota; 
    (3) an Asian Pacific-American, African-American, American 
Indian, or Hispanic-American (Latino, Chicano, or Puerto Rican); 
    (4) entering or enrolled in a nursing program in Minnesota 
that leads to licensure as a registered nurse; and 
    (5) eligible under any additional criteria established by 
the school, college, or program of nursing in which the student 
is enrolled.  Students applying for a grant must be willing to 
practice in Minnesota for at least three years following 
licensure. 
    The grant must be awarded for one academic year but is 
renewable for a maximum of six semesters or nine quarters of 
full-time study, or their equivalent.  
    Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
school, college, or program of nursing that wishes to 
participate in the student nursing grant program shall apply to 
the higher education coordinating board for grant money, 
according to policies established by the board.  A school, 
college, or program of nursing shall establish criteria to use 
in awarding the grants.  The criteria must include consideration 
of the likelihood of a student's success in completing the 
nursing educational program and must give priority to students 
with the greatest financial need.  Grants must be $2,500 per 
year.  Each school, college, or program of nursing shall agree 
that the money awarded through this grant program must not be 
used to replace any other grant or scholarship money for which 
the student would be otherwise eligible. 
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The higher education coordinating board 
shall distribute money each year to Minnesota schools, colleges, 
or programs of nursing that lead to licensure as a 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. 
    Sec. 15.  Minnesota Statutes 1992, section 136A.1701, 
subdivision 4, is amended to read: 
    Subd. 4.  [TERMS AND CONDITIONS OF LOANS.] The board may 
loan money upon such terms and conditions as the board may 
prescribe.  The principal amount of a loan to an undergraduate 
student for a single academic year may shall not exceed 
$4,000 $6,000.  The aggregate principal amount of all loans made 
under this section to an undergraduate student may shall not 
exceed $16,000 $25,000.  The principal amount of a loan to a 
graduate student for a single academic year shall not 
exceed $6,000 $9,000.  The aggregate principal amount of all 
loans made under this section to a student as a graduate student 
shall not exceed $25,000 $40,000. 
    Sec. 16.  Minnesota Statutes 1992, section 136A.1701, is 
amended by adding a subdivision to read: 
    Subd. 9a.  The board shall develop an appeals process for 
recipients of loans made under this section who believe there is 
an unresolved error in the servicing of the loan.  The board 
shall provide recipients with a description of the appeals 
process. 
    Sec. 17.  Minnesota Statutes 1992, section 136A.233, is 
amended to read: 
    136A.233 [WORK-STUDY GRANTS.] 
    Subdivision 1.  [ALLOCATION TO INSTITUTIONS.] The higher 
education coordinating board may offer shall allocate work-study 
grants money to eligible post-secondary institutions according 
to the resident full-time equivalent enrollment of all eligible 
post-secondary institutions that apply to participate in the 
program.  The board shall seek to equalize work-study job 
opportunities by also taking into account student employment 
needs at eligible institutions.  Each institution wishing to 
receive a participate in the work-study grant shall program must 
submit to the board, in accordance with policies and procedures 
established by the board, an estimate of the amount of funds 
needed by the institution.  The amount allocated to any 
institution shall not exceed the estimate of need submitted by 
the institution.  Any funds which would be allocated to an 
institution according to full-time equivalent enrollment but 
which that exceed the estimate of need by the institution or the 
actual need of the institution may be reallocated by the board 
to other institutions for which the estimate of need exceeds the 
amount of allocation according to enrollment.  The institution 
must not receive less than it would have received under the 
allocation formula used before fiscal year 1988.  No more than 
one-half of any increase in appropriations, attributable to this 
section, above the level before fiscal year 1988 may be 
allocated on the basis of identified student employment needs at 
eligible institutions. 
    Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
to 136A.234 136A.233, the words defined in this subdivision have 
the meanings ascribed to them. 
    (a) "Eligible student" means a Minnesota resident enrolled 
or intending to enroll full time at least half time as defined 
in section 136A.101, subdivision 7b, in a degree, diploma, or 
certificate program in a Minnesota post-secondary institution.  
    (b) "Minnesota resident" means a student who meets the 
conditions in section 136A.101, subdivision 8. 
    (c) "Financial need" means the need for financial 
assistance in order to attend a post-secondary institution as 
determined by a post-secondary institution according to 
guidelines established by the higher education coordinating 
board. 
    (d) "Eligible employer" means any eligible post-secondary 
institution and any nonprofit, nonsectarian agency or state 
institution located in the state of Minnesota, including state 
hospitals, and also includes a handicapped person or a person 
over 65 who employs a student to provide personal services in or 
about the residence of the handicapped person or the person over 
65. 
    (e) "Eligible post-secondary institution" means any 
post-secondary institution eligible for participation in the 
Minnesota state grant program as specified in section 136A.101, 
subdivision 4. 
    (f) "Independent student" has the meaning given it in the 
Higher Education Act of 1965, United States Code, title 20, 
section 1070a-6, and applicable regulations. 
    Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
eligible students by post-secondary institutions as 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 In selecting students for participation, 
priority must be given to students enrolled for at least 12 
credits. 
    (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) An eligible employer shall pay at least 30 percent of 
the student's compensation.  The board shall annually establish 
a minimum percentage rate of student compensation to be paid by 
an eligible employer. 
    (f) Each post-secondary institution receiving money for 
state work-study grants shall make a reasonable effort to place 
work-study students in employment with eligible employers 
outside the institution.  However, a public employer other than 
the institution may not terminate, lay-off, or reduce the 
working hours of a permanent employee for the purpose of hiring 
a work-study student, or replace a permanent employee who is on 
layoff from the same or substantially the same job by hiring a 
work-study student. 
    (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. 18.  Minnesota Statutes 1992, section 136A.653, 
subdivision 1, is amended to read: 
    Subdivision 1.  A school which does not grant a degree and 
which that is subject to licensing by the state board of 
education pursuant to under chapter 141, is exempt from the 
provisions of sections 136A.61 to 136A.71.  The determination of 
the commissioner of education board as to whether a particular 
school is subject to regulation under chapter 141 is final for 
the purposes of this exemption. 
    Sec. 19.  Minnesota Statutes 1992, section 136A.69, is 
amended to read: 
    136A.69 [FEES.] 
    The board may collect reasonable registration fees not to 
exceed $400 $450 for an initial registration of each school and 
$250 $350 for each annual renewal of an existing registration. 
    Sec. 20.  Minnesota Statutes 1992, section 136A.87, is 
amended to read: 
    136A.87 [ASPECTS OF THE PROGRAM PLANNING INFORMATION.] 
    Subdivision 1.  [ASSESSMENT INSTRUMENTS AND 
QUESTIONNAIRES.] The program shall provide for administration of 
education and career assessment instruments and questionnaires 
to residents in grades 8 through 12, and to adults.  The board 
shall determine the instruments and questionnaires that are 
appropriate to serve the purposes of sections 136A.85 to 136A.88.
    Subd. 2.  [HIGH SCHOOL ASSESSMENTS.] The program shall 
provide for administration of educational measurement 
instruments and questionnaires to high school students before 
their senior year.  At least the following may be included:  
    (1) an aptitude assessment for students anticipating entry 
to collegiate programs; 
    (2) an inventory of interests, career directions, 
background information, and education plans; and 
    (3) a preliminary mathematics placement test to aid in 
future course selections, and, as determined appropriate by the 
board, preliminary placement tests in other subjects.  
    Subd. 3.  [PROVIDING INFORMATION.] The board shall make 
available to all residents from 8th grade through adulthood 
information about planning and preparing for post-secondary 
opportunities.  Information must be provided to all 8th grade 
students and their parents by January 1 of each year about the 
need to plan for their post-secondary education.  The board may 
also provide information to high school students and their 
parents, to adults, and to out-of-school youth.  The information 
provided may include the following: 
     (1) the need to start planning early; 
     (2) the availability of assistance in educational planning 
from educational institutions and other organizations; 
     (3) suggestions for studying effectively during high 
school; 
     (4) high school courses necessary to be adequately prepared 
for post-secondary education; 
     (5) encouragement to involve parents actively in planning 
for all phases of education; 
     (6) information about post-high school education and 
training opportunities existing in the state, their respective 
missions and expectations for students, their preparation 
requirements, admission requirements, and student placement; 
     (7) ways to evaluate and select post-secondary 
institutions; 
     (8) the process of transferring credits among Minnesota 
post-secondary institutions and systems; 
     (9) the costs of post-secondary education and the 
availability of financial assistance in meeting these costs; 
     (10) the interrelationship of assistance from student 
financial aid, public assistance, and job training programs; and 
     (11) financial planning for education beyond high school.  
    Subd. 4.  [DATA BASE.] A data base of information from the 
program's assessments and services shall be maintained to:  
    (1) provide individual reports of results to the students, 
high schools in which students are enrolled, and, if authorized 
by the students, post-secondary educational institutions; and 
    (2) provide annual statewide summary reports of results to 
high schools, post-secondary institutions, the department of 
education, the chairs of the education, higher education, 
appropriations and finance committees of the legislature, and 
the governor. 
    Subd. 5.  [COORDINATION.] The board shall coordinate 
efforts and develop additional methods of providing information, 
guidance, and testing services to out-of-school youth and adults.
    Sec. 21.  Minnesota Statutes 1992, section 141.25, 
subdivision 8, is amended to read: 
    Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
initial license under sections 141.21 to 141.36 shall be 
accompanied by $560 $650 as a nonrefundable application fee. 
    (b) All licenses shall expire on December 31 of each year 
one year from the date issued by the board.  Each renewal 
application shall be accompanied by a nonrefundable renewal fee 
of $430 $650.  
    (c) Application for renewal of license shall be made on or 
before October 1 of each calendar year at least 30 days before 
the expiration of the school's current license.  Each renewal 
form shall be supplied by the board.  It shall not be necessary 
for an applicant to supply all information required in the 
initial application at the time of renewal unless requested by 
the board. 
    Sec. 22.  Minnesota Statutes 1992, section 141.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [REQUIRED.] A solicitor representing a 
school must obtain a solicitor's permit from the board before 
soliciting students to enroll in such school.  Such permit shall 
expire on December 31 one year following the date of issuance.  
Application for renewal of permit shall be made on or before 
November 15 of each calendar year annually.  
    Sec. 23.  Minnesota Statutes 1992, section 141.26, 
subdivision 5, is amended to read: 
    Subd. 5.  [FEE.] The initial and renewal application for 
each permit shall be accompanied by a nonrefundable fee of 
$210 $250. 
    Sec. 24.  [FINANCIAL AID TASK FORCE.] 
    Subdivision 1.  [PURPOSE.] A task force is established to 
study and make recommendations on Minnesota's system of 
financial aid, focusing particularly on the state grant 
program.  The purpose of the task force is to evaluate state 
financial aid policy, examine alternative policies, and 
recommend changes to the legislature.  The task force shall 
consider current resource constraints among other factors. 
    Subd. 2.  [MEMBERSHIP.] The speaker of the house and the 
subcommittee on committees of the committee on rules and 
administration of the senate shall each appoint four members, 
including representatives of public and private post-secondary 
systems and campuses.  The governor shall appoint two public 
members and two students, at least one of whom must be a public 
college student.  
    Subd. 3.  [SUPPORT.] The higher education coordinating 
board shall provide technical and clerical support to the task 
force as determined by the task force.  The task force, through 
the board, may contract for consulting services, but is not 
subject to the provisions of Minnesota Statutes, chapter 16B. 
    Subd. 4.  [CONTENT OF STUDY.] The task force shall consider 
whether Minnesota's financial aid program, as it operates in 
conjunction with the federal Pell grant program, is meeting the 
state goal of removing economic barriers to education for 
economically disadvantaged citizens of the state.  The task 
force shall further consider whether the state program needs to 
be made more progressive and, if so, whether this should be 
accomplished through adjustments to the shared responsibility 
policy or adoption of a new policy.  The study additionally 
shall consider the advantages and disadvantages of linking the 
state grant program to federal policies and programs.  The task 
force also shall consider effective ways to integrate grants, 
loans, work-study, and other aid to create aid packages for 
students and to deliver different types of aid to students with 
different needs.  Finally, the task force shall consider 
efficient ways to deliver aid to students, including more rapid 
decentralization to the campus level. 
    Subd. 5.  [REPORT.] The task force shall report its 
findings and recommendations to the education committees of the 
legislature by February 1, 1994.  The task force shall expire on 
June 30, 1994. 
    Sec. 25.  [GRANTS TO NURSING PROGRAMS FOR PERSONS OF 
COLOR.] 
    Subdivision 1.  [ESTABLISHMENT.] A pilot grant program is 
established under the authority of the higher education 
coordinating board to provide grants to Minnesota schools, 
colleges, and other institutions that offer programs of nursing, 
to fund initiatives designed to ensure the recruitment and 
retention of nursing students who are Asian-Pacific, 
African-American, American Indian, or Hispanic American (Latino, 
Chicano, or Puerto Rican). 
    Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
an applicant must: 
    (1) be a Minnesota school, college, or program of nursing 
that offers educational programs leading to licensure as a 
registered nurse; 
    (2) have in place a program of activities that provides 
faculty with knowledge of the history, practices, and health 
needs of persons of color; and 
    (3) have in place a program advisory panel, a majority of 
whom are persons of color. 
    Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
school, college, or program of nursing that wishes to 
participate in the grant program shall apply to the higher 
education coordinating board for grant money, according to 
policies established by the board.  Each applicant shall outline 
the specific programs it intends to implement and demonstrate 
the likelihood that those programs will result in increased 
recruitment and retention of students who are persons of color. 
    Subd. 4.  [RESPONSIBILITIES OF THE HIGHER EDUCATION 
COORDINATING BOARD.] The board shall establish an application 
process for interested schools, colleges, or programs of nursing.
    The board shall establish written criteria to use in 
awarding the grants.  The criteria must include consideration of 
whether: 
    (1) the proposed program is likely to actually increase the 
recruitment and retention of nursing students who are persons of 
color; 
    (2) the proposed program creates a support network for 
persons of color; 
    (3) the nursing program employs persons of color on its 
staff and faculty; 
    (4) the proposed program has initiatives to reach persons 
of color while still in high school; and 
    (5) the proposed program establishes a mentoring program 
for nursing students who are persons of color. 
    The board shall establish written guidelines to ensure that 
grants are used only for board-approved initiatives.  The board 
shall provide the written guidelines to grant recipients at the 
time it distributes the money.  The board shall require each 
grant recipient to report to the board on its program activity 
and use of grants. 
    Sec. 26.  [REPEALER.] 
    Minnesota Statutes 1992, sections 136A.121, subdivision 10; 
136A.134; 136A.234; 136A.70; and Laws 1991, chapter 356, article 
8, section 23, are repealed. 
    Sec. 27.  [EFFECTIVE DATE.] 
    Section 15 is effective immediately for applicants for 
loans for enrollment periods beginning after July 1, 1993. 

                                ARTICLE 3

                         POST-SECONDARY SYSTEMS 
    Section 1.  Minnesota Statutes 1992, section 3.9741, is 
amended to read: 
    3.9741 [COST OF EXAMINATION, BILLING, PAYMENT.] 
    Subdivision 1.  [METROPOLITAN COMMISSION.] Upon the audit 
of the financial accounts and affairs of a commission under 
section 473.413, 473.595, 473.604, or 473.703, the affected 
metropolitan commission is liable to the state for the total 
cost and expenses of the audit, including the salaries paid to 
the examiners while actually engaged in making the examination.  
The legislative auditor may bill the metropolitan commission 
either monthly or at the completion of the audit.  All 
collections received for the audits must be deposited in the 
general fund.  
    Subd. 2.  [POST-SECONDARY EDUCATION BOARD.] The legislative 
auditor may enter into an interagency agreement with the 
community college board, state university board, or the state 
board of technical colleges to conduct financial audits, in 
addition to audits conducted under section 3.972, subdivision 2. 
    Sec. 2.  Minnesota Statutes 1992, section 16A.127, 
subdivision 8, is amended to read: 
    Subd. 8.  [EXEMPTION.] (a) Except for the costs of the 
legislative auditor to conduct financial audits of federal 
funds, this section does not apply to the community college 
system board, state universities university board, or the state 
board of technical colleges.  Indirect cost receipts 
attributable to financial audits conducted by the legislative 
auditor of federal funds administered by these post-secondary 
education boards shall be deposited in the general fund. 
    (b) Except for federal funds, this section does not apply 
to the department of natural resources for agency indirect costs.
    Sec. 3.  Minnesota Statutes 1992, section 126.56, 
subdivision 5, is amended to read: 
    Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
assist the state board of education in approving eligible 
programs and shall assist the higher education coordinating 
board in planning, implementing, and evaluating the scholarship 
program.  The committee shall consist of 11 members, to include 
the executive director of the higher education coordinating 
board or a representative, the commissioner of education or a 
representative, two secondary school administrators and two 
secondary teachers appointed by the commissioner of education, 
the executive director of the academic excellence foundation, a 
private college representative appointed by the president of the 
Minnesota private college council, a community college 
representative appointed by the community college chancellor, a 
state university representative appointed by the state 
university chancellor, and a University of Minnesota 
representative appointed by the president of the University of 
Minnesota.  The committee expires June 30, 1993 1995. 
    Sec. 4.  Minnesota Statutes 1992, section 135A.03, 
subdivision 7, is amended 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 or dependent 
students whose parent or legal guardian resides in Minnesota at 
the time the student applies; 
    (2) Minnesota residents who can demonstrate that they were 
temporarily absent from the state without establishing residency 
elsewhere; 
    (3) residents of other states who are attending a Minnesota 
institution under a tuition reciprocity agreement; and 
    (4) students who have been in Minnesota as migrant 
farmworkers, as defined in Code of Federal Regulations, title 
20, section 633.104, over a period of at least two years 
immediately before admission or readmission to a Minnesota 
public post-secondary institution, or students who are 
dependents of such migrant farmworkers. 
    Sec. 5.  Minnesota Statutes 1992, section 135A.06, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PLANNING REPORTS.] It is the intention of 
the legislature that the planning efforts of the public 
post-secondary education systems be summarized and reported to 
the legislature.  It is the further intention that the system 
missions be differentiated from one another to best serve the 
needs of the citizens of Minnesota.  To accomplish these goals, 
the University of Minnesota board of regents, the state 
university board, the state board for community colleges, and 
the state board of technical colleges shall each submit to the 
governor and the legislature on December 1 of each even-numbered 
year a planning report for its system.  The report shall contain 
the mission of the system and short- and long-range plans for 
programs, staff, and facilities.  It shall specify the mission 
and plans for two, five, and ten years.  The assumptions used in 
developing the plans shall be included.  The report shall also 
include plans for and progress toward achieving mission 
differentiation while maintaining the state's overall 
post-secondary objectives. 
    Sec. 6.  Minnesota Statutes 1992, section 135A.061, is 
amended to read: 
    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 
chair shall be rotated among the systems each year, 
corresponding to the rotation of the chair of the higher 
education advisory council.  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. 7.  Minnesota Statutes 1992, section 136C.15, is 
amended to read: 
    136C.15 [STUDENT ASSOCIATIONS.] 
    Every school board governing a technical college shall give 
recognition as an authorized extracurricular activity to a 
technical college student association affiliated with the 
Minnesota vocational technical college student association.  The 
student association is authorized to collect a reasonable fee 
from students to finance the activities of the association in an 
amount determined by the governing board of the technical 
college which has recognized it. 
    Every governing body which recognizes a student association 
shall deposit the fees in a student association fund.  The money 
in this fund shall be available for expenditure for 
recreational, social, welfare, charitable, and educational 
activities approved by the student association.  The money in 
the fund is not public money. 
    Sec. 8.  Minnesota Statutes 1992, section 136C.61, 
subdivision 7, is amended to read: 
    Subd. 7.  [MEETINGS.] Notwithstanding any law to the 
contrary, the joint board may hold meetings at any location 
convenient to the member districts and the public, whether or 
not that meeting site is located within the boundaries of a 
member district.  The joint board may also conduct meetings via 
interactive television by means of telecommunications if the 
board complies with section 471.705 in each location where board 
members are present.  The joint board shall establish and 
maintain a schedule of the time and place of its meetings and 
shall give notice of regular and special meetings in the same 
manner as required for other public bodies. 
    Sec. 9.  [137.41] [INDIRECT COST RECOVERIES.] 
    Indirect cost recovery money received 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. 
    Sec. 10.  Laws 1990, chapter 591, article 3, section 10, as 
amended by Laws 1991, chapter 356, article 3, section 13, 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 for facilities, 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 1992-1993 1994-1995 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 1992-1993 1994-1995 academic 
year. 
    (b) This section does not apply to actions of Metropolitan 
State University that are part of its plan to consolidate its 
sites in the seven-county metropolitan area.  The state 
university board shall consult with the chairs of the house 
appropriations and senate finance committees in carrying out its 
plans.  For purposes of this paragraph, "plan to consolidate" 
does not include entering into any 2 + 2 arrangements. 
    Sec. 11.  Laws 1991, chapter 356, article 6, section 4, as 
amended by Laws 1992, chapter 513, article 1, section 25, is 
amended to read: 
    Subd. 3a.  [CURRENT EMPLOYEES.] It is the policy of the 
state of Minnesota that restructuring of peace officer education 
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 affected governing boards 
shall make every effort to train and retrain existing 
employees full-time law enforcement training center 
administrators for a changing work environment. 
    Options presented to employees full-time law enforcement 
training center administrators whose positions might be 
eliminated by integrating peace officer education programs 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.  This 
subdivision shall expire on December 31, 1993. 
    Sec. 12.  [SHARED STUDENT SERVICES.] 
    To improve the efficient delivery of services to students 
and to reduce unnecessary 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, shall jointly develop a plan to consolidate, to 
the extent possible, administrative positions and the delivery 
of noninstructional and administrative services including, but 
not limited to, bookstores, food services, financial aid, 
registration and records, parking services, libraries, and 
counseling. 
    Each joint plan shall be submitted to the higher education 
board, the state board for community colleges, and the state 
board of technical colleges by December 31, 1993.  The state 
boards shall jointly submit an integrated plan to the education 
committees of the legislature by February 15, 1994, that 
includes proposals to redirect savings from shared services to 
instruction at the co-located campuses. 
    Sec. 13.  [EMPLOYEE PROVISIONS.] 
    During the biennium, the legislature intends that any 
layoffs at post-secondary institutions be distributed equitably 
between management/supervisory personnel and line/support 
personnel.  Where restructuring and retrenchment may involve a 
decrease in existing positions, institutions shall assist 
employees in finding suitable employment through such options as 
training and retraining opportunities.  Nothing in this section 
shall be construed as diminishing any rights defined in 
collective bargaining agreements under Minnesota Statutes, 
chapter 179A. 
    Sec. 14.  [PERFORMANCE MEASURES.] 
    Subdivision 1.  [TECHNICAL COLLEGES.] For budget 
considerations in 1995, the technical college board shall: 
    (1) report to the education committees on 
administrator/instructor ratios for each technical college for 
fiscal years 1992, 1993, 1994, and 1995; 
    (2) report the actual placement rate, which should be no 
less than 60 percent for each program at each campus over a 
two-year period; and 
    (3) report how savings from a campus initiated program 
closure are reallocated. 
    Subd. 2.  [COMMUNITY COLLEGES.] For budget considerations 
in 1995, the community college board shall: 
    (1) report the process used to evaluate occupational 
programs with a less than 60 percent placement rate; 
    (2) report the number and percent of students transferring 
to four-year colleges and universities, the percent retained one 
year later, and their academic success.  
    Subd. 3.  [COMMUNITY COLLEGES AND TECHNICAL COLLEGES.] For 
budget considerations in 1995, the community college and 
technical college board shall report jointly on:  
    (1) their plans regarding duplicative programs at 
co-located campuses; and 
    (2) the process used to reduce duplicative nonhealth 
occupational programs, that are less than 35 miles apart, with 
student-teacher ratios below 15-1 for the courses offered in 
that program.  
    Subd. 4.  [STATE UNIVERSITIES.] For budget considerations 
in 1995, the state university board shall report on its success 
in increasing: 
    (1) the number of students of color who graduate; and 
    (2) the percentage of graduates who have completed a senior 
project or other capstone experience. 
    Sec. 15.  [FEE STATEMENT.] 
    Beginning in the 1993-1994 academic year, fee statements at 
all public post-secondary campuses shall indicate the state-paid 
portion of the cost of an average student's education in that 
system by including the following statement:  "Tuition pays for 
approximately ... % of the cost of a student at a public 
college.  The State of Minnesota pays approximately $....... of 
the average cost for full-time students." 
    Sec. 16.  [EFFECTIVE DATE.] 
    Section 4 is effective the day following final enactment. 

                                ARTICLE 4

            ENDOWMENT FOR SCHOLARSHIP, RESEARCH, AND CHAIRS 
    Section 1.  Minnesota Statutes 1992, section 137.022, 
subdivision 3, is amended to read: 
    Subd. 3.  [ENDOWED CHAIRS CHAIR ACCOUNT.] (a) For purposes 
of this section, the permanent university fund has three 
accounts.  The sources of the money in the endowed mineral 
research and scholarship accounts are set out in paragraph (b) 
and subdivision 4.  All money in the fund that is not otherwise 
allocated is in the endowed chair account.  The income from the 
permanent university fund endowed chair account must be used, 
and capital gains of the fund allocated to that account may be 
used, to provide endowment support for professorial chairs in 
academic disciplines.  The endowment support for the chairs from 
the income and the capital gains must not total more than six 
percent per year of the 36-month trailing average market value 
of the endowed chair account of the fund, as computed quarterly 
or otherwise as directed by the regents.  The endowment support 
from the income and the capital gains must not provide more than 
half the sum of the endowment support for all chairs endowed, 
with nonstate sources providing the remainder.  The endowment 
support from the income and the capital gains may provide more 
than half the endowment support of an individual chair.  
    (b) If any portion of the annual appropriation of the 
income is not used for the purpose purposes specified in 
paragraph (a) or subdivision 4, that portion lapses and must be 
added to the principal of the three accounts of the permanent 
university fund in proportion to the market value of each 
account.  
    Sec. 2.  Minnesota Statutes 1992, section 137.022, is 
amended by adding a subdivision to read: 
     Subd. 4.  [MINERAL RESEARCH; SCHOLARSHIPS.] (a) All income 
credited after July 1, 1992, to the permanent university fund 
from royalties for mining under state mineral leases from and 
after July 1, 1991, must be allocated as provided in this 
subdivision. 
    (b)(1) Fifty percent of the income, up to $25,000,000, must 
be credited to the mineral research account of the fund to be 
allocated for the Natural Resources Research Institute-Duluth 
and Coleraine facilities, for mineral and mineral-related 
research including mineral-related environmental research; and 
    (2) The remainder must be credited to the endowed 
scholarship account of the fund for distribution annually for 
scholastic achievement as provided by the board of regents to 
undergraduates enrolled at the University of Minnesota who are 
resident students as defined in section 136A.101, subdivision 8. 
    (c) The annual distribution from the endowed scholarship 
account must be allocated to the various campuses of the 
University of Minnesota in proportion to the number of 
undergraduate resident students enrolled on each campus.  
    (d) The board of regents must report to the education 
committees of the legislature biennially at the time of the 
submission of its budget request on the dispersal of money from 
the endowed scholarship account and to the environment and 
natural resources committees on the use of the mineral research 
account.  
    (e) Capital gains and losses and portfolio income of the 
permanent university fund must be credited to its three accounts 
in proportion to the market value of each account. 
    (f) The endowment support from the income and capital gains 
of the endowed mineral research and endowed scholarship accounts 
of the fund must not total more than six percent per year of the 
36-month trailing average market value of the account from which 
the support is derived.  
    Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective retroactively to July 1, 
1992, for income and allocations into the three accounts of the 
permanent university fund and July 1, 1993, for distributions 
from the endowed mineral research account and endowed 
scholarship accounts of the fund. 

                                ARTICLE 5

                           TELECOMMUNICATIONS 
    Section 1.  [PURPOSE.] 
    The purpose of sections 1 to 4 is to expand the 
availability of a broad range of courses and degrees to students 
throughout the state to improve access, quality, and efficiency 
by enhancing and expanding the use of telecommunications and 
other instructional technologies. 
    Sec. 2.  [TELECOMMUNICATIONS COUNCIL.] An instructional 
telecommunications council shall be established and composed 
of:  two representatives selected by each public higher 
education system, a representative of the higher education 
board, a regional telecommunications coordinator, one member of 
the senate appointed by the subcommittee on committees of the 
committee on rules and administration, one member of the house 
of representatives appointed by the speaker, one private college 
representative selected by the Minnesota private college 
council, a representative of the information policy office of 
the department of administration, the commissioner of education 
or designee to represent K-12 education, and one higher 
education coordinating board representative.  The council shall: 
    (1) develop a statewide vision and plans for the use of 
distance learning technologies and provide leadership in 
implementing the use of such technologies; 
    (2) develop educational policy relating to 
telecommunications; 
    (3) determine priorities for use; 
    (4) oversee coordination with campuses, K-12 education, and 
regional educational telecommunications; 
    (5) require the use of the statewide telecommunications 
access and routing system where operationally, technically, and 
economically feasible in order to maximize the state's 
telecommunication resources; and 
    (6) determine priorities for grant funding proposals. 
    The council shall consult with representatives of the 
telecommunication industry in implementing this subdivision.  
    Sec. 3.  [REGIONAL LINKAGES.] 
    Subdivision 1.  [GRANTS.] The higher education coordinating 
board shall award grants to regional organizations of higher 
education institutions to establish or complete 
telecommunications links among campuses in a region and among 
campuses in different regions. 
    The regional organizations shall use the statewide 
telecommunications access and routing system where 
operationally, technically, and economically feasible in order 
to maximize the state's telecommunication resources. 
    Subd. 2.  [APPLICATION PROCESS.] The higher education 
coordinating board shall develop and publicize the process by 
which regional organizations may apply for grants.  The 
instructional telecommunications council shall review and 
comment on the proposals. 
    Subd. 3.  [CRITERIA.] The higher education coordinating 
board shall evaluate proposals using the following criteria: 
    (1) evidence of cooperative arrangements with other 
post-secondary institutions and school districts in the 
geographic region; 
    (2) plans for shared classes and programs; 
    (3) evidence of efficiencies to be achieved in delivery of 
instruction due to use of telecommunications; 
    (4) evidence of a formal governing structure; and 
    (5) a plan to assume the ongoing costs following the 
initial development for the continued operation of the project. 
    Sec. 4.  [REGIONAL COORDINATION.] 
    Subdivision 1.  [GRANTS.] The higher education coordinating 
board shall award grants to regional organizations of higher 
education institutions to coordinate and manage regional 
telecommunications arrangements. 
    Subd. 2.  [APPLICATION PROCESS.] The higher education 
coordinating board shall develop and publicize the process by 
which regional organizations may apply for grants.  The 
instructional telecommunications council shall review and 
comment on the proposals. 
    Subd. 3.  [CRITERIA.] The higher education coordinating 
board shall evaluate proposals using the following criteria: 
    (1) evidence of cooperative arrangements with other 
post-secondary institutions and school districts in the 
geographic region; 
    (2) plans for shared classes and programs; 
    (3) avoidance of program and course duplication; 
    (4) evidence of efficiencies to be achieved in delivery of 
instruction due to use of telecommunications; 
    (5) a plan for development of a list of all courses 
available in the region for delivery at a distance; 
    (6) a plan for coordinating and scheduling courses; 
    (7) a plan for evaluation of costs, access, and outcomes; 
and 
    (8) a plan to assume the ongoing costs following the 
initial development for the continued operation of the project. 
    Sec. 5.  [EVALUATION.] 
    The higher education coordinating board shall evaluate the 
results of the grants provided under sections 3 and 4 and make 
recommendations to the legislature and governor regarding future 
funding, the success rate of the various grants, and other 
relevant information by January 15, 1995. 
    Sec. 6.  [GRANT LIMITATIONS; PROPOSALS.] 
    All grants shall be used for direct costs only and shall 
not include indirect costs.  The higher education coordinating 
board shall advise grant applicants that money used for regional 
linkages in section 3 and regional coordination in section 4 are 
for pilot projects.  State money for the pilot projects shall be 
90 percent of costs. 

                                ARTICLE 6

                    FARMER-LENDER MEDIATION SERVICES 
    Section 1.  Minnesota Statutes 1992, section 583.24, 
subdivision 4, is amended to read: 
    Subd. 4.  [DEBTS.] The farmer-lender mediation act does not 
apply to a debt: 
    (1) for which a proof of claim form has been filed in 
bankruptcy by a creditor or that was listed as a scheduled debt, 
of a debtor who has filed a petition in bankruptcy after July 1, 
1987, under United States Code, title 11, chapter 7, 11, 12, or 
13; 
    (2) if the debt was in default when the creditor received a 
mediation proceeding notice under the farmer-lender mediation 
act and the creditor filed a claim form, the debt was mediated 
during the mediation period under section 583.26, subdivision 8, 
and (i) the mediation was unresolved; or (ii) a mediation 
agreement with respect to that debt was signed; 
    (3) for which the creditor has served a mediation notice, 
the debtor has failed to make a timely request for mediation, 
and within 45 60 days after the debtor failed to make a timely 
request the creditor began a proceeding to enforce the debt 
against the agricultural property of the debtor; 
    (4) for which a creditor has received a mediation 
proceeding notice and the creditor and debtor have restructured 
the debt and have signed a separate mediation agreement with 
respect to that debt; or 
    (5) for which there is a lien for rental value of farm 
machinery under section 514.661 or a lien for rental value 
relating to a contract for deed subject to the farmer-lender 
mediation act under section 559.2091.  
    Sec. 2.  Laws 1986, chapter 398, article 1, section 18, as 
amended by Laws 1987, chapter 292, section 37, Laws 1989, 
chapter 350, article 16, section 8, Laws 1990, chapter 525, 
section 1, and Laws 1991, chapter 208, section 2, is amended to 
read: 
    Sec. 18.  [REPEALER.] 
    Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
and 583.305, are repealed on July 1, 1993 1995. 

                                ARTICLE 7

                            STUDENT HOUSING 
    Section 1.  [VERMILION COMMUNITY COLLEGE STUDENT HOUSING.] 
    The state board for community colleges may acquire a site 
and construct, own, operate, furnish, and maintain one or more 
dormitories or other student residence facilities at Ely for the 
use and benefit of Vermilion Community College.  Selection of a 
designer for the project is not subject to Minnesota Statutes, 
section 16B.33, subdivision 4.  The higher education facilities 
authority may issue revenue bonds or other financial instruments 
for the facilities under Minnesota Statutes, sections 136A.25 to 
136A.42, and the state board for community colleges may borrow 
the proceeds of the revenue bonds or other financial instruments 
to finance the acquisition, construction, and equipping of the 
student housing facilities.  The board may enter into agreements 
and pledge revenues of the facilities as may be necessary to 
provide security for the bonds and may mortgage the financed 
facilities to the higher education facilities authority or to a 
trustee for the bondholders if considered necessary by the board 
or the authority for the successful marketing of the bonds.  The 
state board for community colleges shall establish, maintain, 
revise when necessary, and collect rates and charges for the use 
of the student housing facilities.  The rates and charges must 
be sufficient, as estimated by the board, to pay all expenses of 
operation and maintenance of the facilities, to pay principal 
of, and interest on, revenue bonds or other obligations or 
instruments when due, and to pay customary fees and charges of 
the higher education facilities authority and to establish and 
maintain the reserve funds that the board considers necessary 
for repair, replacement, and maintenance of the facilities.  
Funds and accounts established in furtherance of these purposes 
are not subject to Minnesota Statutes, section 136.67, 
subdivision 2, and are not subject to the budgetary control of 
the commissioner of finance.  The board shall never be obligated 
to use other revenues of the board or funds of the state to pay 
the costs of construction, operation, maintenance, and repair of 
the facilities or to pay principal of and interest on 
obligations issued for these purposes.  Notwithstanding any 
other law or rule or the city charter, the city of Ely may, 
without complying with the procedures set forth in Minnesota 
Statutes, chapter 475, guarantee all or any part of the loan 
repayment obligation of the board to the authority, by pledging 
its full faith and credit and taxing power.  The guarantee is 
not subject to any limitation on net debt of the city, and taxes 
required to make any payment under the guarantee may be levied 
without limit as to rate or amount. 

                                ARTICLE 8

                    SOUTHWEST ASIA VETERANS TRAINING 
    Section 1.  Minnesota Statutes 1992, section 136C.13, 
subdivision 4, is amended to read: 
    Subd. 4.  [VIETNAM SOUTHWEST ASIA VETERAN'S EXEMPTION.] A 
Vietnam Southwest Asia veteran who enrolls in a tuition free 
technical college program before July 1, 1990, and who is a 
Minnesota resident whose entire education has not included 
completion of at least one tuition free technical college 
program is exempt from tuition eligible for a state grant of 
$500 per year if the veteran has GI Montgomery bill benefits, or 
$1,000 per year if the veteran does not have GI Montgomery bill 
benefits, until the veteran has completed the lesser of (a) 440 
technical college school days, or the equivalent as determined 
by the state board 115 credits in a technical college program, 
or (b) one technical college program.  The grant is based on 
full-time attendance and shall be prorated if the student is 
attending less than full time.  To be eligible for the tuition 
relief, a veteran who is discharged before July 1, 1993, must 
enroll in a technical college by July 1, 1995, and a veteran who 
is discharged on or after July 1, 1993, must enroll in a 
technical college within two years of the date of discharge.  
All veterans enrolled under this program must maintain a minimum 
of six credits per quarter.  Total grants may not exceed the 
available appropriation.  
    "Vietnam Southwest Asia veteran" for the purpose of this 
subdivision means a person who served in the active military 
service in any branch of the armed forces of the United States 
after July 1, 1961, and before July 1, 1978, any time between 
August 1, 1990, and February 27, 1992, who became eligible for 
the Vietnam Expeditionary Medal or the Vietnam Southwest Asia 
Service Medal as a result of the service, was a Minnesota 
resident at the time of induction into the armed forces and for 
the six months one year immediately preceding induction, and has 
been separated or discharged from active military service under 
conditions other than dishonorable. 

                                ARTICLE 9

                         HIGHER EDUCATION BOARD
    Section 1.  [JOINT LEGISLATIVE COMMITTEE ON MERGING 
POST-SECONDARY EDUCATION SYSTEMS.] 
    Subdivision 1.  [ESTABLISHMENT.] A joint legislative 
committee on merging the post-secondary systems is created to 
provide a forum for communication between the higher education 
board and the legislature related to merging the state 
university, community college and technical college systems. 
    Subd. 2.  [MEMBERSHIP.] The committee consists of ten 
members.  Five members from the house shall be appointed by the 
speaker of the house.  Five members from the senate shall be 
appointed by the subcommittee on committees of the committee on 
rules and administration.  The committee must have 
representatives from the minority caucus of each house and from 
both rural and metropolitan areas. 
    Subd. 3.  [OFFICERS.] The committee shall elect a chair and 
vice-chair from among its members.  The chair must alternate 
annually between a member of the house and a member of the 
senate.  When the chair is from one body, the vice-chair must be 
from the other body. 
    Subd. 4.  [STAFF.] The committee shall use existing 
legislative staff to provide legal counsel, research, fiscal, 
secretarial, and clerical assistance. 
    Subd. 5.  [DUTIES.] The committee may review proposals, 
plans, and information provided by the higher education board.  
The committee shall give particular attention to:  the 
educational quality and missions of the higher education system, 
the needs of students and system and campus employees, and 
fiscal considerations.  The committee shall report on its work 
and its recommendations to the education committees of the 1994 
and 1995 legislatures. 
    Subd. 6.  [INFORMATION COLLECTIONS; INTERGOVERNMENTAL 
COORDINATION.] (a) The committee may conduct public hearings and 
otherwise collect data and information necessary to its purposes.
    (b) To facilitate coordination between executive and 
legislative authorities, the governor shall appoint a person to 
act as liaison between the committee and the governor. 
    Subd. 7.  [EXPIRATION.] This section expires on June 30, 
1995. 
    Sec. 2.  [HIGHER EDUCATION BOARD BUDGET.] 
    The higher education board shall submit to the governor and 
legislature a unified budget request for the biennium ending 
June 30, 1997.  The request shall compare the budgets of each 
merged system in 1994-1995 to the unified budget for 1996-1997. 
    Sec. 3.  Minnesota Statutes 1992, section 136E.03, is 
amended to read: 
    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 state universities, 
community colleges, and technical colleges shall have distinct 
missions.  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. 4.  Minnesota Statutes 1992, section 136E.04, 
subdivision 1, is amended to read: 
    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.  
    Sec. 5.  Laws 1991, chapter 356, article 9, section 8, is 
amended to read: 
    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.  The 
board shall report to the legislature on its staffing plans by 
July 15, 1993.  
    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 September 1, 1993.  Copies 
of the plan shall be submitted to the chairs of the 
education, appropriation ways and means, and finance committees 
of the legislature.  
    Subd. 5.  [RESTRUCTURING.] By January 1, 1994, 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.  Plans for the integration of each of these 
functions must be included in the proposal.  
    Subd. 6.  [SCHOOL DISTRICTS.] By January 1, 1994, 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. 
    By January 1, 1994, 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.] By January 1, 1994, the board 
shall submit to the legislature proposals for providing the 
board with adequate legal services. 
    Subd. 8.  [ACCOUNTING SYSTEM.] By January 1, 1995 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 ways and 
means committee and, by January 1, 1994, 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.  [INFORMATION.] All plans and proposals required 
in this section must include timetables for implementation.  
    Subd. 11.  [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. 6.  Laws 1991, chapter 356, article 9, section 10, is 
amended to read: 
    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 and shall report to the legislature on plans for 
this training by September 1, 1994. 
    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.  The board 
shall report on its plans to eliminate positions by January 1, 
1995.  
    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. 
    Presented to the governor May 27, 1993 
    Signed by the governor May 27, 1993, 4:23 p.m.