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Office of the Revisor of Statutes

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

                            CHAPTER 532-S.F.No. 2900 
                  An act relating to education; appropriating money for 
                  education and related purposes to the higher education 
                  coordinating board, state board of technical colleges, 
                  higher education board, state board for community 
                  colleges, state university board, board of regents of 
                  the University of Minnesota, and the finance 
                  department, with certain conditions; modifying the 
                  award of grants for faculty exchange and temporary 
                  assignment programs; changing community college 
                  designations; prescribing changes to certain financial 
                  aid programs; reinstating rules pertaining to private 
                  business, trade, and correspondence schools and 
                  technical colleges personnel licensing; modifying POST 
                  board authority; adopting a post-secondary funding 
                  formula; providing for appointments; defining 
                  authority for bargaining with certain employees; 
                  designating certain higher education board employees 
                  as unclassified; clarifying transfer provisions for 
                  the merger of community colleges, state universities, 
                  and technical colleges; transferring bonding authority 
                  for the state universities to the higher education 
                  board; establishing the higher education board as the 
                  sole state agency for federal funding for vocational 
                  education; providing for appointments of additional 
                  student members on the higher education board; 
                  establishing the student board member selection 
                  process; authorizing the higher education board to 
                  supervise and control construction, improvement, and 
                  repair of its facilities; preserving distinct 
                  post-secondary missions; recognizing separate student 
                  associations; amending Minnesota Statutes 1992, 
                  sections 43A.06, subdivision 1; 43A.08, subdivision 1; 
                  43A.18, by adding a subdivision; 135A.01; 135A.04; 
                  136.31; 136.32; 136.33; 136.34; 136.35; 136.36; 
                  136.37; 136.38; 136.41, by adding a subdivision; 
                  136A.121, subdivision 17; 136A.125, subdivisions 2, 3, 
                  4, and by adding a subdivision; 136A.15, subdivision 
                  6; 136C.06; 136E.01, subdivisions 1 and 2; 136E.02, 
                  subdivision 1; and 179A.10, subdivision 1; Minnesota 
                  Statutes 1993 Supplement, sections 43A.18, subdivision 
                  4; 125.138, subdivisions 1, 6, and 8; 136.41, 
                  subdivision 8; 136A.233, subdivisions 1 and 2; and 
                  136E.03; Laws 1991, chapter 356, article 9, sections 
                  8, subdivision 1; 9, 12, and 13; Laws 1993, chapter 
                  224, article 12, section 39; Laws 1993, First Special 
                  Session chapter 2, article 5, section 2; proposing 
                  coding for new law in Minnesota Statutes, chapters 
                  135A; 136; and 136E; repealing Minnesota Statutes 
                  1992, sections 135A.02; 135A.03, subdivisions 1, 1a, 
                  2, 3, 3a, 4, 5, and 6; 135A.06, subdivisions 2, 3, 4, 
                  5, and 6; 136.31, subdivision 6; 136.40; 136.41, 
                  subdivisions 1, 2, 3, 4, 5, 6, and 7; 136.42; and 
                  136C.36; Minnesota Statutes 1993 Supplement, sections 
                  135A.03, subdivision 7; 135A.05; and 135A.061. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                                 APPROPRIATION 
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The dollar amounts in the columns under "APPROPRIATIONS" 
        are added to or, if shown in parentheses, are subtracted from 
        the appropriations in Laws 1993, First Special Session chapter 
        2, article 1, or other law to the specified agencies.  The 
        appropriations are from the general fund or other named fund and 
        are available for the fiscal years indicated for each purpose.  
        The figure 1994 or 1995 means that the addition to or 
        subtraction from the appropriations listed under the figure are 
        for the fiscal year ending June 30, 1994, or June 30, 1995, 
        respectively.  If only one figure is shown in the text for a 
        specified purpose, the addition or subtraction is for 1995 
        unless the context intends another fiscal year. 
                                SUMMARY BY FUND
                                  1994          1995           TOTAL
        General              $ (7,000,000)  $ 18,300,000   $ 11,300,000 
                         SUMMARY BY AGENCY - ALL FUNDS
                                  1994          1995           TOTAL
        Higher Education
        Coordinating Board   $(7,000,000)     $1,400,000    $(5,600,000)
        State Board of
        Technical Colleges        -0-          1,250,000      1,250,000 
        Higher Education
        Board                     -0-          1,255,000      1,255,000 
        State Board for
        Community Colleges        -0-            450,000        450,000
        State
        University Board          -0-          1,800,000      1,800,000 
        Board of Regents
        of the University of
        Minnesota                 -0-          9,145,000      9,145,000
        Department
        of Finance                -0-          3,000,000      3,000,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1994         1995 
        Sec. 2.  HIGHER EDUCATION COORDINATING 
        BOARD 
        Subdivision 1.  Total
        Appropriation Changes                 (7,000,000)     1,400,000\H*\h
           \H* (The appropriation of "1,400,000" for the year ending\h 
        \HJune 30, 1995, was vetoed by the governor.)\h 
        Subd. 2.  Agency
        Administration                                          
        This appropriation includes money to 
        develop a process to award grants to 
        Upward Bound programs in Minnesota.  
        The board shall provide the money to 
        the Minnesota Minority Education 
        Partnership under contract.\H* (The\h 
        \Hpreceding paragraph beginning "This"\h 
        \Hwas vetoed by the governor.)\h 
        Subd. 3.  State Grants                (4,000,000)
        The higher education coordinating board 
        shall delay the implementation of the 
        new private college cap. 
        For fiscal year 1995, a child care 
        grant under Minnesota Statutes, section 
        136A.125, shall not cover more than 40 
        hours per week of child care costs. 
        Subd. 4.  Interstate Tuition
        Reciprocity                           (3,000,000)
        Subd. 5.  State Work Study                            
        This appropriation includes money for 
        the state work study program.\H*\h 
        \H(Subdivision 5 was vetoed by the\h 
        \Hgovernor.)\h 
        Sec. 3.  STATE BOARD OF TECHNICAL COLLEGES
        Total Appropriation Changes                           1,250,000
        This appropriation includes money for a 
        pilot program at the Northwest 
        Technical College Center for 
        International Training and for 
        automating the technical college 
        libraries.\H* (Section 3 was vetoed by\h 
        \Hthe governor.)\h 
        Sec. 4.  HIGHER EDUCATION BOARD
        Total Appropriation Changes                           1,255,000
        This appropriation is for developing a 
        student records system, office space 
        costs, staff training, and labor 
        relations.\H* (Section 4 was vetoed by\h 
        \Hthe governor.)\h 
        Sec. 5.  STATE BOARD FOR COMMUNITY 
        COLLEGES 
        Total Appropriation Changes                             450,000\H*\h
           \H* (The appropriation of "450,000" was vetoed by the\h 
        \Hgovernor.)\h 
        This appropriation is for the 
        transition of Fond du Lac from a center 
        to full campus status.\H* (The preceding\h 
        \Hparagraph beginning "This" was vetoed\h 
        \Hby the governor.)\h 
        In making Fond du Lac a full campus, 
        the legislature intends to enhance the 
        programs, enrollment, and efficiency of 
        the campus.  As part of this action, 
        the state board for community colleges 
        shall report on its plans to accomplish 
        these goals to the higher education 
        finance divisions by January 15, 1995. 
        Sec. 6.  STATE UNIVERSITY BOARD 
        Total Appropriation Changes                           1,800,000
        This appropriation is for academic 
        programs, the urban teacher preparation 
        program, interactive television, and 
        library resources at Metro State 
        University, and for improving safety on 
        the state university campuses.\H*\h 
        \H(Section 6 was vetoed by the governor.)\h 
        Sec. 7.  BOARD OF REGENTS OF THE 
        UNIVERSITY OF MINNESOTA 
        Total Appropriation Changes                           9,145,000\H*\h
           \H* (The appropriation of "9,145,000" was vetoed by the\h 
        \Hgovernor.)\h 
        The legislature supports the direction 
        that the University of Minnesota is 
        taking to improve the academic 
        experiences and learning environment of 
        its students through its U2000 
        planning.  This appropriation is to 
        further the University's efforts in 
        student services, educational 
        equipment, library resources, and 
        indigent patient dental care.  The 
        legislature directs the board of 
        regents to use this appropriation 
        consistent with the priority order of 
        its request to the legislature. 
        The legislature intends that its 
        support of U2000 will result in the 
        improvement of undergraduate education 
        on the Twin Cities campus.  
        Specifically, the legislature intends 
        that the University focus on improving 
        the actual classroom instruction and 
        experience of undergraduates, 
        particularly as the number of 
        traditional undergraduate students in 
        the state grows over the next several 
        years.  This focus includes changing 
        the reward structure for faculty to 
        encourage better undergraduate 
        instruction.  As part of its 1995 
        biennial budget request to support its 
        U2000 efforts, the University shall 
        report on its plans to accomplish 
        changes in faculty efforts in teaching 
        and advising that will improve 
        undergraduate education. 
        The board of regents is requested to 
        report to the higher education finance 
        divisions of the house of 
        representatives and the senate by 
        January 15, 1995, on the policies and 
        practices it has planned or implemented 
        to comply with Title VII, Title IX, and 
        the Equal Pay Act as they relate to 
        coaches of men's and women's athletics. 
        Sec. 8.  DEPARTMENT OF FINANCE 
        Total Appropriation Changes                           3,000,000
        This appropriation is for the higher 
        education board and the commissioner of 
        finance to jointly develop an 
        accounting system to accommodate the 
        specific needs of higher education, and 
        to jointly plan for the expenditure of 
        this appropriation.  When requested, 
        the commissioner shall provide the 
        board with detailed information on the 
        expenditure of this appropriation.\H*\h 
        \H(Section 8 was vetoed by the governor.)\h 
                                   ARTICLE 2
                             ASSOCIATED PROVISIONS
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        125.138, subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
        collaboration shall be established to allow Minnesota school 
        districts and post-secondary institutions to arrange temporary 
        placements in each other's institutions.  These arrangements 
        must be made on a voluntary cooperative basis between a school 
        district and post-secondary institution, or between 
        post-secondary institutions.  Exchanges between post-secondary 
        institutions may occur among campuses in the same system or in 
        different systems. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        125.138, subdivision 6, is amended to read: 
           Subd. 6.  [GRANTS.] The department of education shall award 
        grants to public post-secondary teacher preparation programs and 
        school districts that collaborate on staff exchanges or 
        temporary placements.  One institution must be identified as the 
        fiscal agent for the grant. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        125.138, subdivision 8, is amended to read: 
           Subd. 8.  [APPLICATION PROCESS.] The department of 
        education shall develop and publicize the process by which 
        school districts, the University of Minnesota and its campuses, 
        and the state universities and post-secondary institutions which 
        have teacher and administrator preparation programs may apply 
        for grants. 
           Sec. 4.  [136.6011] [FOND DU LAC CAMPUS.] 
           The Fond du Lac campus of the Minnesota community college 
        system has a unique mission among the community colleges to 
        serve both the general education needs for lower division work 
        in the Carlton county - south St. Louis county region, as well 
        as serving the education needs of Native Americans throughout 
        the state and especially in northern Minnesota.  Accordingly, 
        while the college is governed by the state board for community 
        colleges and administered through Arrowhead community colleges, 
        its governance is accomplished in conjunction with tribal 
        authorities, particularly in the areas of academic programming 
        and student services.  The state board, the Arrowhead community 
        college administration, and the Fond du Lac tribal college board 
        shall determine the mechanisms necessary to accomplish the 
        sharing of authority while ensuring accountability for college 
        actions. 
           Sec. 5.  Minnesota Statutes 1992, section 136A.121, 
        subdivision 17, is amended to read: 
           Subd. 17.  [INDEPENDENT STUDENT INFORMATION.] The board 
        shall inform students, in writing, as part of the application 
        process, its financial aid publications about the definition of 
        independent student status and appeals to the financial aid 
        administrator relating to the declaration of the status. 
           Sec. 6.  Minnesota Statutes 1992, section 136A.125, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBLE STUDENTS.] An applicant is eligible for 
        a child care grant if the applicant: 
           (1) is a resident of the state of Minnesota; 
           (2) has a child 12 years of age or younger, or 14 years of 
        age or younger who is handicapped as defined in section 120.03, 
        and who is receiving or will receive care on a regular basis 
        from a licensed or legal, nonlicensed caregiver; 
           (3) is within the sliding fee scale income guidelines set 
        under section 256H.10, subdivision 2, income eligible as 
        determined by a standardized financial aid needs analysis in 
        accordance with the board's policies and rules, but is not a 
        recipient of aid to families with dependent children; 
           (4) has not earned a baccalaureate degree and has been 
        enrolled full time less than eight semesters, 12 quarters, or 
        the equivalent; 
           (5) is pursuing a nonsectarian program or course of study 
        that applies to an undergraduate degree, diploma, or 
        certificate; 
           (6) is enrolled at least half time in an eligible 
        institution; and 
           (7) is in good academic standing and making satisfactory 
        academic progress. 
           Sec. 7.  Minnesota Statutes 1992, section 136A.125, 
        subdivision 3, is amended to read: 
           Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
        post-secondary institution or, a Minnesota private, 
        baccalaureate degree granting college or university located in 
        Minnesota, or a Minnesota nonprofit two-year vocational 
        technical school granting associate degrees is eligible to 
        receive child care funds from the board and disburse them to 
        eligible students. 
           Sec. 8.  Minnesota Statutes 1992, section 136A.125, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
        child care grant must be based on: 
           (1) the financial need income of the applicant and the 
        applicant's spouse, if any; 
           (2) the number of in the applicant's children family, as 
        defined by the board; and 
           (3) the cost of the child care, 
        as determined by the institution in accordance with board 
        policies and rules.  The amount of the grant must cover the cost 
        of child care for all eligible children for the full number of 
        hours of education per week and may cover up to 20 hours per 
        week of employment for which child care is needed.  The grant 
        must be awarded for one academic year.  The minimum financial 
        stipend is $100 the number of eligible children in the 
        applicant's family.  
           The maximum award to the applicant shall be $1,500 for each 
        eligible child per academic year.  The board shall prepare a 
        chart to show the amount of a grant that will be awarded per 
        child based on the factors in this subdivision.  The chart shall 
        include a range of income and family size. 
           Sec. 9.  Minnesota Statutes 1992, section 136A.125, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [ADDITIONAL GRANTS.] An additional child care 
        grant may be awarded to an applicant attending classes outside 
        of the regular academic year who meets the requirements in 
        subdivisions 2 and 4. 
           Sec. 10.  Minnesota Statutes 1992, section 136A.15, 
        subdivision 6, is amended to read: 
           Subd. 6.  "Eligible institution" means any public a 
        post-secondary educational institution and any private 
        educational institution, in any state which is approved by the 
        United States commissioner of education in accordance with 
        requirements set forth in the Higher Education Act of 1965, as 
        amended that either (1) is operated or regulated by this state, 
        or (2) is operated publicly or privately in another state, is 
        approved by the United States Secretary of Education, and, as 
        determined by the board, maintains academic standards 
        substantially equal to those of comparable institutions operated 
        in this state.  It also includes any institution chartered in a 
        province. 
           Sec. 11.  Minnesota Statutes 1993 Supplement, section 
        136A.233, subdivision 1, is amended to read: 
           Subdivision 1.  [ALLOCATION TO INSTITUTIONS.] The higher 
        education coordinating board shall allocate work-study 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, and the 
        amount of the allocation that an institution spent during the 
        previous academic year.  Each institution wishing to participate 
        in the work-study program must submit, in accordance with 
        policies and procedures established by the board, an estimate of 
        the amount of funds needed by the institution.  Any funds 
        allocated to an institution that exceed the actual need of the 
        institution may shall be reallocated by the board to other 
        institutions.  An institution may carry forward or backward the 
        same percentage of its initial allocation that is authorized 
        under federal work-study provisions.  
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        136A.233, subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
        to 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 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. 
           (g) "Half-time" for undergraduates has the meaning given in 
        section 136A.101, subdivision 7b, and for graduate students is 
        defined by the institution. 
           Sec. 13.  Laws 1993, First Special Session chapter 2, 
        article 5, section 2, is amended to read: 
           Sec. 2.  [TELECOMMUNICATIONS COUNCIL.] An instructional A 
        19-member 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, four members appointed by the 
        commissioner of education or designee to represent K-12 
        education of whom at least two shall be representatives of 
        school districts or K-12 telecommunications networks, 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 Minnesota Network 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. 14.  Laws 1993, chapter 224, article 12, section 39, 
        is amended to read: 
           Sec. 39.  [REPEALER.] 
           (a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 
        and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 
        3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 
        3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 
        3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 
        3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 
        3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 
        3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 
        3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 
        3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 
        3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 
        3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 
        3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 
        5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 
        3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 
        3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 
        3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 
        3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 
        3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 
        3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 
        3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 
        3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 
        3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 
        3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 
        3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 
        3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 
        8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed. 
           (b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 
        3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 
        3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 
        3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 
        3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 
        3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 
        3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 
        3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 
        3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 
        3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 
        3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 
        3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 
        3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 
        3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 
        3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 
        3520.5710; 3520.5900; 3520.5910; and 3520.5920; 3530.6500; 
        3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 
        3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 
        3530.7600; 3530.7700; and 3530.7800, are repealed. 
           (c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0100; 
        3510.0200; 3510.0300; 3510.0400; 3510.0500; 3510.0600; 
        3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 
        3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 
        3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 
        3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 
        3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8100; 
        3510.8200; 3510.8300; 3510.8400; 3510.8500; 3510.8600; 
        3510.8700; 3510.9000; 3510.9100; chapters 3515, 3515.0100, 
        subparts 2, 5, 6, and 26; 3515.0500, subpart 4, option two, 
        items D and E; 3515.0700, subpart 4, options 4, 6, 7, and 8; 
        3515.1100; 3515.1500, subparts 2 and 3, item C; 3515.2100, 
        subparts 2 and 3; 3515.3300; 3515.3400; 3515.3500; 3515.3600; 
        3515.3700; 3515.3800; 3515.3900; 3515.4000; 3515.4500; 
        3515.4600; 3515.4621; 3515.4700; 3515.4800; 3515.5000, subpart 
        2; 3515.5050; 3515.5500, subparts 3, 4, 5, 6, 7, 9, 10, and 11; 
        3515.5600; 3515.6005, subparts 2 and 3; 3515.6100; 3515.8300; 
        3515.8900; 3515.9910; 3515.9911; 3515.9912; 3515.9913; 
        3515.9920; 3515.9942; 3517.0100; 3517.0120; 3517.3150; 
        3517.3170; 3517.3420; 3517.3450; 3517.3500; 3517.3650; 
        3517.4000; 3517.4100; 3517.4200; 3517.8500; 3517.8600;, and 
        chapter 3560, are repealed. 
           (d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 
        3500.1100; 3500.1150; 3500.1200; 3500.1500; 3500.1600; 
        3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 
        3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 
        3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 
        3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 
        3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 
        3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 
        3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 
        8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 
        8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 
        8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 
        8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 
        8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 
        8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 
        8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 
        8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 
        8700.6310; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 
        8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 
        8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 
        8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 
        8700.8160; 8700.8170; 8700.8180; 8700.8190; 8750.0200; 
        8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 
        8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 
        8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 
        8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 
        8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 
        8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 
        8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 
        8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 
        8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 
        8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 
        8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 
        8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 
        8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 
        8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 
        8750.2140; 8750.4000; 8750.4100; 8750.4200; 8750.9000; 
        8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 
        8750.9600; and 8750.9700, are repealed. 
           Sec. 15.  [PEACE OFFICERS STANDARDS AND TRAINING BOARD.] 
           The association of police chiefs is requested to convene a 
        committee to discuss and make recommendations to the legislature 
        on current programs of professional peace officer education.  
        The committee shall consist of three POST board members or their 
        designees, one member appointed by the Minnesota chiefs of 
        police association, one member appointed by the Minnesota 
        sheriffs association, one member appointed by the Minnesota 
        police and peace officers association, three representatives of 
        the higher education systems, and three representatives of 
        post-secondary campuses offering professional peace officer 
        education to be appointed by the appropriate higher education 
        governing boards for technical colleges, community colleges, and 
        state universities.  The committee shall make recommendations 
        regarding programmatic and funding issues related to 
        professional peace officer education.  The committee also shall 
        develop a plan for a cooperative process whereby the higher 
        education systems and campuses and the POST board consult on any 
        proposed changes in policy, rule, or statute which may 
        significantly affect professional peace officer education.  The 
        committee shall report its findings and recommendations to the 
        higher education and judiciary finance divisions by January 15, 
        1995.  Prior to June 30, 1995, the board of peace officer 
        standards and training may not take any action to change or 
        modify professional peace officer education that is offered by a 
        technical college, community college, or state university unless 
        it is agreed to by both parties. 
           Nothing in this section shall prohibit the POST board from 
        taking action against a certified school for failure to comply 
        with an existing board rule. 
           POST board certified schools shall not provide a nondegree 
        professional peace officer education program for any state 
        agency or local law enforcement agency after December 31, 1994, 
        without affirmative legislative approval. 
           Sec. 16.  [RECOMMENDATIONS.] 
           By January 1, 1995, the higher education coordinating board 
        shall provide recommendations to the higher education finance 
        divisions of the legislature on the board's future functions, 
        roles, and responsibilities following the July 1, 1995, merger 
        of the community colleges, technical colleges, and state 
        universities. 
           Sec. 17.  [TRANSITION.] 
           The transition from center to full campus status for the 
        Fond du Lac Community College Center at Cloquet shall occur no 
        sooner than July 1, 1994.  The transition from center to full 
        campus status for Duluth and Cambridge centers shall occur no 
        sooner than July 1, 1995.  Full campus status is contingent upon 
        approval of the higher education board.  The higher education 
        board shall make recommendations on funding levels for 
        Cambridge, Cloquet, and Duluth. 
           Sec. 18.  [RESERVE ACCOUNTS.] 
           The technical college, community college, state university, 
        and higher education boards shall develop policies for fund 
        balances and the creation and use of reserve accounts.  The 
        commissioner of finance shall review the policies.  The 
        technical college, community college, state university, and 
        higher education boards shall submit the policies to the higher 
        education finance divisions of the legislature by January 1, 
        1995.  Beginning January 1, 1995, the technical college, 
        community college, state university, and higher education boards 
        shall report annually to the commissioner of finance the 
        amounts, intended and actual use, and remaining balance in their 
        respective fund balances and reserve accounts. 
           Sec. 19.  [REPEALER.] 
           (a) Minnesota Statutes 1992, sections 135A.06, subdivisions 
        2, 3, 4, 5, and 6; and Minnesota Statutes 1993 Supplement, 
        section 135A.061, are repealed. 
           (b) Minnesota Statutes 1992, section 136C.36, is repealed. 
           Sec. 20.  [EFFECTIVE DATE.] 
           Section 11 is effective the day following final enactment.  
           Section 19, paragraph (b), is effective August 1, 1994. 
                                   ARTICLE 3 
                             POST-SECONDARY FUNDING 
           Section 1.  Minnesota Statutes 1992, section 135A.01, is 
        amended to read: 
           135A.01 [FUNDING POLICY.] 
           It is the policy of the legislature that direct state 
        appropriations, exclusive of tuition, to provide stable funding, 
        including recognition of the effects of inflation, for the 
        instructional services at public post-secondary 
        institutions reflect a portion of the estimated cost of 
        providing the instructional and that the state and students 
        share the cost of those services.  The legislature intends to 
        provide at least 67 percent of the instructional services costs 
        for each post-secondary system.  It is also the policy of the 
        legislature that the budgetary process serves to support high 
        quality public post-secondary education.  
           Sec. 2.  [135A.031] [APPROPRIATIONS FOR INSTRUCTIONAL 
        SERVICES.] 
           Subdivision 1.  [DETERMINATION OF APPROPRIATION.] The 
        direct appropriation to each board for instructional services 
        shall equal 67 percent of the estimated total cost of 
        instruction for the University of Minnesota, the state 
        universities, and the community colleges, and, for technical 
        colleges, at least 67 percent of the estimated total cost of 
        instruction. 
           Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
        state share of the estimated expenditures for instruction shall 
        vary for some categories of students, as designated in this 
        subdivision. 
           (a) The state must provide at least 67 percent of the 
        estimated expenditures for: 
           (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 or provinces 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 the 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. 
           (b) The state must provide 32 percent of the estimated 
        expenditures for: 
           (1) students who are concurrently enrolled in a public 
        secondary school and for whom the institution is receiving any 
        compensation under the post-secondary enrollment options act; 
        and 
           (2) students enrolled under the student exchange program of 
        the Midwest Compact. 
           (c) The state may not provide any of the estimated 
        expenditures for undergraduate students who do not meet the 
        residency criteria under paragraph (a). 
           Subd. 3.  [DETERMINATION OF INSTRUCTIONAL SERVICES BASE.] 
        The instructional services base for each public post-secondary 
        system is the sum of:  (1) the state share; and (2) the 
        legislatively estimated tuition for the second year of the most 
        recent biennium; and (3) adjustments for inflation, enrollment 
        changes as calculated in subdivision 4, and performance as 
        calculated in subdivision 5.  
           Subd. 4.  [ADJUSTMENT FOR ENROLLMENTS.] (a) Each public 
        post-secondary system's instructional services base shall be 
        adjusted for estimated changes in enrollments.  For each two 
        percent change in estimated full-year equivalent enrollment, an 
        adjustment shall be made to 65 percent of the instructional 
        services base.  The remaining 35 percent of the instructional 
        services base is not subject to the adjustment in this 
        subdivision. 
           (b) For all purposes where student enrollment is used for 
        budgeting purposes, student enrollment shall be measured in 
        full-year equivalents and shall include only enrollments in 
        courses that award credit or otherwise satisfy any of the 
        requirements of an academic or vocational program. 
           (c) The enrollment adjustment shall be made for each year 
        of the subsequent biennium.  The base enrollment year is the 
        1995 fiscal year enrollment.  The base enrollment shall be 
        updated for each two percent change in estimated full year 
        equivalent enrollment.  If the actual enrollment differs from 
        the estimated enrollment, an adjustment shall be made in the 
        next biennium. 
           Subd. 5.  [ADJUSTMENT FOR PERFORMANCE.] Each public 
        post-secondary system's instructional services base shall be 
        adjusted, up to one percent, if the system meets the performance 
        standards established by the system's governing board as part of 
        the biennial budget document. 
           Subd. 6.  [ADJUSTMENT FOR CHANGE ITEMS.] The instructional 
        services base may be adjusted for change items as determined by 
        the governor and the legislature after adjustments for 
        inflation, enrollments, and performance.  
           Subd. 7.  [REPORTS.] Instructional expenditure and 
        enrollment data for each instructional category shall be 
        submitted in the biennial budget document. 
           Sec. 3.  [135A.032] [APPROPRIATIONS FOR NONINSTRUCTIONAL 
        SERVICES.] 
           Subdivision 1.  [DETERMINATION OF NONINSTRUCTIONAL 
        APPROPRIATIONS BASE.] The noninstructional services base for 
        each public post-secondary system is the state share for the 
        second year of the most recent biennium plus adjustments for 
        inflation and for performance as specified in subdivision 2.  
        The cost of technical college extension programs shall be 
        included in noninstructional services.  
           Subd. 2.  [ADJUSTMENT FOR PERFORMANCE.] The 
        noninstructional services base shall be increased, up to one 
        percent, if the system meets the performance standards 
        established by the system's governing board as part of the 
        biennial budget document.  
           Subd. 3.  [ADJUSTMENT FOR CHANGE ITEMS.] The 
        noninstructional services base may be adjusted for change items 
        as determined by the governor and the legislature after 
        noninstructional base adjustments for inflation and performance. 
           Sec. 4.  [135A.033] [PERFORMANCE FUNDING.] 
           The governing boards of the University of Minnesota, the 
        state universities, the community colleges, and the technical 
        colleges, in conjunction with their respective campuses, shall 
        each specify performance categories and indicators to be used 
        for policy and appropriations decisions, as well as allocations 
        for rewarding campuses that achieve performance levels and 
        assisting campuses that are unable to achieve these levels.  
        Because the mission of each system and type of campus varies, 
        categories and indicators shall vary accordingly. 
           Sec. 5.  [135A.034] [BUDGET PRIORITIES.] 
           The governing boards of the University of Minnesota, the 
        state universities, the community colleges, and the technical 
        colleges shall each develop, for legislative and executive 
        branch acceptance, its highest budget priorities in accordance 
        with statewide objectives for higher education.  It is the 
        intent of the legislature to appropriate at least 67 percent of 
        the total cost of instruction after adjusting for inflation and 
        enrollment changes.  However, in the event of a budget 
        shortfall, or if funding of inflation is not possible, available 
        funding shall first be applied to the agreed upon budget 
        priorities. 
           Sec. 6.  Minnesota Statutes 1992, section 135A.04, is 
        amended to read: 
           135A.04 [VARIABLE TUITION.] 
           The board of regents of the University of Minnesota, state 
        university board, state board for community colleges, and state 
        board for vocational education and the higher education board 
        shall each establish tuition.  Tuition may vary by program, 
        level of instruction, cost of instruction, or other 
        classifications determined by each board.  Tuition may be set at 
        any percentage of instructional cost established by the 
        respective boards. 
           Sec. 7.  [PHASE-IN OF FORMULA.] 
           Each higher education system shall calculate its respective 
        base for the 1996-1997 biennium for submission to the governor 
        and legislature using the method in this article.  Each system 
        that experienced enrollment increases since 1993 shall adjust 
        its instructional services base by the same percentage as the 
        enrollment increased. 
           Sec. 8.  [TASK FORCE.] 
           The chief financial officers, or their designees, of the 
        University of Minnesota, state universities, technical colleges, 
        community colleges, higher education board, and the commissioner 
        of finance shall form a task force.  The task force shall define 
        terms, ensure uniform application of the formula, and other 
        functions determined necessary by the task force.  The higher 
        education coordinating board shall convene the initial meeting.  
        The task force expires June 30, 1997. 
           Sec. 9.  [REPEALER.] 
           Minnesota Statutes 1992, sections 135A.02; and 135A.03, 
        subdivisions 1, 1a, 2, 3, 3a, 4, 5, and 6; Minnesota Statutes 
        1993 Supplement, sections 135A.03, subdivision 7; and 135A.05, 
        are repealed.  
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1 to 3, 6, and 9 are effective July 1, 1995. 
                                   ARTICLE 4
                      EMPLOYER DESIGNATION AND BARGAINING 
           Section 1.  Minnesota Statutes 1992, section 43A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL.] (a) The commissioner, through 
        the labor relations bureau, shall perform the duties assigned to 
        the commissioner by sections 3.855, 179A.01 to 179A.25 and this 
        section.  
           (b) The deputy commissioner for the labor relations bureau 
        shall be the state labor negotiator for purposes of negotiating 
        and administering agreements with exclusive representatives of 
        employees and shall perform any other duties delegated by the 
        commissioner subject to the limitations in paragraph (c). 
           (c) In consultation with the commissioner of employee 
        relations and except as specified in this paragraph, the higher 
        education board may exercise the powers under this section.  The 
        power and authority to engage in collective bargaining or to 
        enter into interest arbitration remains with the commissioner of 
        employee relations, who shall exercise those powers in 
        consultation with the higher education board. 
           Sec. 2.  Minnesota Statutes 1992, section 43A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [UNCLASSIFIED POSITIONS.] Unclassified 
        positions are held by employees who are: 
           (1) chosen by election or appointed to fill an elective 
        office; 
           (2) heads of agencies required by law to be appointed by 
        the governor or other elective officers, and the executive or 
        administrative heads of departments, bureaus, divisions, and 
        institutions specifically established by law in the unclassified 
        service; 
           (3) deputy and assistant agency heads and one confidential 
        secretary in the agencies listed in subdivision 1a and in the 
        office of strategic and long-range planning; 
           (4) the confidential secretary to each of the elective 
        officers of this state and, for the secretary of state, state 
        auditor, and state treasurer, an additional deputy, clerk, or 
        employee; 
           (5) intermittent help employed by the commissioner of 
        public safety to assist in the issuance of vehicle licenses; 
           (6) employees in the offices of the governor and of the 
        lieutenant governor and one confidential employee for the 
        governor in the office of the adjutant general; 
           (7) employees of the Washington, D.C., office of the state 
        of Minnesota; 
           (8) employees of the legislature and of legislative 
        committees or commissions; provided that employees of the 
        legislative audit commission, except for the legislative 
        auditor, the deputy legislative auditors, and their confidential 
        secretaries, shall be employees in the classified service; 
           (9) presidents, vice-presidents, deans, other managers and 
        professionals in academic and academic support programs, 
        administrative or service faculty, teachers, research 
        assistants, and student employees eligible under terms of the 
        federal economic opportunity act work study program in the 
        school and resource center for the arts, state universities and 
        community colleges, and the higher education board, but not the 
        custodial, clerical, or maintenance employees, or any 
        professional or managerial employee performing duties in 
        connection with the business administration of these 
        institutions; 
           (10) officers and enlisted persons in the national guard; 
           (11) attorneys, legal assistants, and three confidential 
        employees appointed by the attorney general or employed with the 
        attorney general's authorization; 
           (12) judges and all employees of the judicial branch, 
        referees, receivers, jurors, and notaries public, except 
        referees and adjusters employed by the department of labor and 
        industry; 
           (13) members of the state patrol; provided that selection 
        and appointment of state patrol troopers must be made in 
        accordance with applicable laws governing the classified 
        service; 
           (14) chaplains employed by the state; 
           (15) examination monitors and intermittent training 
        instructors employed by the departments of employee relations 
        and commerce and by professional examining boards; 
           (16) student workers; 
           (17) executive directors or executive secretaries appointed 
        by and reporting to any policy-making board or commission 
        established by statute; 
           (18) employees unclassified pursuant to other statutory 
        authority; 
           (19) intermittent help employed by the commissioner of 
        agriculture to perform duties relating to pesticides, 
        fertilizer, and seed regulation; and 
           (20) the administrators and the deputy administrators at 
        the state academies for the deaf and the blind. 
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        43A.18, subdivision 4, is amended to read: 
           Subd. 4.  [PLANS NOT ESTABLISHED BUT APPROVED BY 
        COMMISSIONER.] Notwithstanding any other law to the contrary, 
        total compensation for employees listed in this subdivision must 
        be set by appointing authorities within the limits of 
        compensation plans that have been approved by the commissioner 
        before becoming effective.  Compensation plans established under 
        paragraphs (b), and (c), (d), and (e) must be approved by the 
        legislature and the legislative commission on employee relations 
        under subdivision 2 before becoming effective. 
           (a) Total compensation for employees who are not covered by 
        a collective bargaining agreement in the offices of the 
        governor, lieutenant governor, attorney general, secretary of 
        state, state auditor, and state treasurer must be determined by 
        the governor, lieutenant governor, attorney general, secretary 
        of state, state auditor, and state treasurer, respectively.  
           (b) Total compensation for unclassified positions under 
        section 43A.08, subdivision 1, clause (9), in the state 
        universities and the community colleges not covered by a 
        collective bargaining agreement must be determined by the state 
        university board and the state board for community colleges, 
        respectively. 
           (c) (b) Total compensation for classified administrative 
        law judges in the office of administrative hearings must be 
        determined by the chief administrative law judge.  
           (d) (c) Total compensation for unclassified positions not 
        covered by a collective bargaining agreement in the higher 
        education coordinating board and in the state board of technical 
        colleges must be determined by the higher education coordinating 
        board and the state board of technical colleges, respectively. 
           (e) Total compensation for unclassified positions not 
        covered by a collective bargaining agreement in the higher 
        education board must be determined by the higher education board.
           Sec. 4.  Minnesota Statutes 1992, section 43A.18, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [HIGHER EDUCATION BOARD PLAN.] Total 
        compensation for unclassified managerial positions under section 
        43A.08, subdivision 1, clause (9), in the higher education board 
        not covered by a collective bargaining agreement must be 
        determined by the higher education board.  Before submitting a 
        compensation plan to the legislature and the legislative 
        commission on employee relations, the higher education board 
        must submit the plan to the commissioner of employee relations 
        for review and comment.  The commissioner must complete the 
        review within 14 days of its receipt.  Compensation plans 
        established under this subdivision must be approved by the 
        legislature and the legislative commission on employee relations 
        under section 3.855, before becoming effective. 
           Sec. 5.  [136E.31] [ASSIGNMENT TO BARGAINING UNITS.] 
           Actions by the higher education board to merge or 
        redesignate institutions or to promote collaborative efforts 
        between institutions must not unilaterally change faculty 
        assignments to bargaining units provided in section 179A.10, 
        subdivision 2. 
           Sec. 6.  Minnesota Statutes 1992, section 179A.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [EXCLUSIONS.] The commissioner of employee 
        relations shall meet and negotiate with the exclusive 
        representative of each of the units specified in this section, 
        except as provided in section 43A.06, subdivision 1, paragraph 
        (c).  The units provided in this section are the only 
        appropriate units for executive branch state employees.  The 
        following employees shall be excluded from any appropriate unit: 
           (1) the positions and classes of positions in the 
        classified and unclassified services defined as managerial by 
        the commissioner of employee relations in accordance with 
        section 43A.18, subdivision 3, and so designated in the official 
        state compensation schedules; 
           (2) unclassified positions in the state university system 
        and the community college system defined as managerial by their 
        respective boards; 
           (3) positions of physician employees compensated under 
        section 43A.17, subdivision 4; 
           (4) positions of all unclassified employees appointed by a 
        constitutional officer; 
           (5) positions in the bureau; 
           (6) positions of employees whose classification is pilot or 
        chief pilot; 
           (7) administrative law judge and compensation judge 
        positions in the office of administrative hearings; and 
           (8) positions of all confidential employees.  
           The governor may upon the unanimous written request of 
        exclusive representatives of units and the commissioner direct 
        that negotiations be conducted for one or more units in a common 
        proceeding or that supplemental negotiations be conducted for 
        portions of a unit or units defined on the basis of appointing 
        authority or geography.  
           Sec. 7.  [REIMBURSEMENT.] 
           In fiscal year 1995, the higher education board shall 
        reimburse the commissioner of employee relations for staffing 
        and other costs of services associated with negotiating the 
        1995-1997 collective bargaining agreements for the state 
        university, community college, and technical college 
        instructional units, and the state university administrative 
        unit.  The amounts reimbursed are appropriated to the 
        commissioner of employee relations to pay for these costs.  
        Before July 1, 1994, the higher education board and the 
        commissioner of employee relations shall confer and agree on the 
        costs and services to be reimbursed.  In the absence of an 
        agreement, the higher education board and the commissioner of 
        employee relations shall report to the higher education finance 
        divisions of the legislature by July 1, 1994. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 2 and 7 are effective the day following final 
        enactment.  Sections 1 and 3 to 6 are effective July 1, 1995. 
                                   ARTICLE 5
                             TRANSITION PROVISIONS
           Section 1.  Laws 1991, chapter 356, article 9, section 9, 
        is amended to read: 
           Sec. 9.  [TRANSFER OF POWERS PROVISIONS.] 
           Subdivision 1.  [TRANSFER OF POWERS; GENERALLY.] The state 
        board of technical colleges, the state board for community 
        colleges, and the state university board and their respective 
        chancellors retain responsibility for operating and managing 
        their systems until July 1, 1995.  On July 1, 1995, the 
        authority, duties, responsibilities, related property of the 
        state board of technical colleges, school boards, intermediate 
        school boards, and joint vocational technical boards with 
        respect to technical colleges, the state board for community 
        colleges, and the state university board are transferred to the 
        higher education board under Minnesota Statutes, section 15.039. 
           Effective July 1, 1995, school boards, intermediate school 
        boards, and joint vocational technical boards shall transfer to 
        the higher education board all real property, personal property, 
        and improvements and attachments thereto related to technical 
        colleges as determined by the higher education board, and shall 
        convey all interests in the property.  The school boards, 
        intermediate school boards, and joint vocational technical 
        boards shall not receive compensation for the conveyance of the 
        interests.  All debt service payments on the transferred 
        property that have a due date on or after July 1, 1995, become 
        the responsibility of the higher education board. 
           On July 1, 1995, all other obligations incurred on behalf 
        of a technical college by a school board, a joint vocational 
        district under Minnesota Statutes, section 136C.60, or an 
        intermediate school district under Minnesota Statutes, chapter 
        136D, which will not be satisfied on or before June 30, 1995, 
        transfer to the higher education board subject to limits 
        identified in state law or in plans or policies of the higher 
        education board subject to legislative approval. 
           The state board of technical colleges, state board for 
        community colleges, and state university board are abolished, 
        effective July 1, 1995.  
           Subd. 1a.  [MEMORANDUM OF UNDERSTANDING APPROVED.] The 
        memorandum of understanding dated March 29, 1994, and signed by 
        the chancellor of the higher education board, the state 
        negotiator, and the bargaining representatives of state 
        employees concerning employee security during the merger of the 
        state universities, the community colleges, and the state 
        technical colleges is ratified. 
           Subd. 2.  [PERSONNEL TRANSFER.] The commissioner of 
        employee relations shall allocate positions and incumbent 
        employees who are primarily employed in post-secondary or 
        extension vocational education positions in an intermediate, 
        joint, or school district on June 30, 1995, to appropriate 
        classes in the state classification plan under Minnesota 
        Statutes, section 43A.07, without loss of pay, or place the 
        positions and incumbent employees in the unclassified service 
        under Minnesota Statutes, section 43A.08, subdivision 1, clause 
        (9).  The commissioner shall also assign positions and incumbent 
        employees to an appropriate state unit under Minnesota Statutes, 
        section 179A.10, subject to challenge or petition of such unit 
        assignment to the bureau of mediation services.  Positions 
        transferred with their incumbents do not create vacancies in 
        state service. 
           Employees serving in unlimited appointments on June 30, 
        1995, and transferred to unlimited classified positions on July 
        1, 1995, are transferred to state service without examination. 
           Employees serving in limited appointments on June 30, 1995, 
        and transferred to limited classified positions or to temporary 
        unclassified positions shall receive emergency, temporary, or 
        temporary unclassified appointments under provisions of 
        Minnesota Statutes, section 43A.15, subdivisions 2 and 3, or 
        43A.08, subdivision 2a, as appropriate. 
           Subd. 3.  [RETURN FROM LEAVE.] All employees on an approved 
        leave of absence from a post-secondary education position in an 
        intermediate, joint, or school district on June 30, 1995, retain 
        the reinstatement rights specified under the original terms of 
        the leave. 
           Subd. 4.  [REASSIGNMENT; UNEMPLOYMENT COMPENSATION; 
        SEVERANCE PAY.] The reassignment of rights under this section is 
        not a leaving of employment for eligibility for unemployment 
        compensation payments under Minnesota Statutes, chapter 268, or 
        early retirement or severance compensation under Minnesota 
        Statutes, section 465.72, or under a policy or contract based on 
        Minnesota Statutes, section 465.72. 
           Sec. 2.  Laws 1991, chapter 356, article 9, section 12, is 
        amended to read: 
           Sec. 12.  [EFFECT OF CURRENT COLLECTIVE BARGAINING 
        AGREEMENTS; STATUTORY EMPLOYMENT RIGHTS.] 
           Subdivision 1.  [GENERALLY.] (a) The terms and conditions 
        of a collective bargaining agreement agreements, compensation 
        plans, personnel policies, or other salary and benefit 
        provisions covering an employee employees transferred to the 
        higher education board remains remain in effect until a 
        successor agreement becomes effective.  This section paragraph 
        applies to all employees transferred to the board except as 
        modified by paragraph (b) and section 3. 
           (b) For employees whose employment was covered by Minnesota 
        Statutes, section 125.12, before their transfer to the higher 
        education board, the provisions of Minnesota Statutes, section 
        125.12, remain in effect until a successor agreement becomes 
        effective according to Minnesota Statutes, chapter 179A.  For 
        employees whose employment was covered by Minnesota Statutes, 
        section 125.17, before their transfer to the higher education 
        board, the provisions of Minnesota Statutes, section 125.17, 
        remain in effect until a successor agreement becomes effective 
        according to Minnesota Statutes, chapter 179A. 
           Subd. 2.  [EXCLUSIVE REPRESENTATIVE OF TECHNICAL COLLEGE 
        EMPLOYEES.] The exclusive representatives of units of technical 
        college employees transferred to the higher education board 
        certified before the effective date of this section shall remain 
        responsible for administration of their contracts and for all 
        other contractual duties and shall enjoy the right to dues and 
        fair share fee deduction and all other contractual privileges 
        and rights until June 30, 1995.  The incoming exclusive 
        representatives of employees transferred to the higher education 
        board and certified after the effective date of this subdivision 
        shall immediately upon certification have the responsibility of 
        bargaining on behalf of employees within the unit.  The incoming 
        exclusive representative and the new employer have the 
        responsibility of administering grievances arising under 
        previous contracts covering employees included within the unit 
        which remain unresolved on June 30, 1995.  Where the employer 
        does not object, these responsibilities may be varied by 
        agreement between the outgoing and incoming exclusive 
        representatives.  All other rights and duties of representation 
        begin on July 1, 1995, except that exclusive representatives 
        certified after the effective date of this subdivision shall 
        immediately upon certification have the right to all employer 
        information and all forms of access to employees within the 
        bargaining unit which would be permitted to the current contract 
        holder, including the rights in Minnesota Statutes, section 
        179A.07, subdivision 6.  This subdivision does not affect any 
        existing collective bargaining contract.  Incoming exclusive 
        representatives of employees transferred to the higher education 
        board shall immediately upon certification have the 
        responsibility of bargaining on behalf of all previously 
        unrepresented employees assigned to their units.  All other 
        rights and duties of exclusive representatives begin on July 1, 
        1995. 
           Sec. 3.  Laws 1991, chapter 356, article 9, section 13, is 
        amended to read: 
           Sec. 13.  [TRANSITIONAL PERIOD COLLECTIVE BARGAINING.] 
           Subdivision 1.  [GENERALLY.] Contracts for the period 
        commencing July 1, 1995, for employees who are in the technical 
        college, state university, and community college instructional 
        units and the state university administrative unit and who are 
        transferred to the higher education board shall be negotiated 
        with the higher education board under section 43A.06.  
        Negotiations for those contracts can begin anytime after July 1, 
        1994, and may be initiated by either party notifying the other 
        of the desire to begin the negotiating process.  Negotiations 
        shall be subject to this section and Minnesota Statutes, chapter 
        179A. 
           Subd. 2.  [DATE OF EMPLOYMENT.] The date of first 
        employment by the higher education board is the date on which 
        services were first performed by the employee for the employer 
        from which the employee is being transferred.  For employees 
        whose transfer is from a joint technical college district under 
        Minnesota Statutes, sections 136C.60 to 136C.69, the date on 
        which services were first performed by the employee is the date 
        on which services were first performed by the employee in the 
        member school district from which the employee was assigned to 
        the joint technical college district. 
           Subd. 3.  [BENEFITS.] All accumulations of leaves, years of 
        service, and benefits must be credited to each employee subject 
        to terms negotiated in the successor contract.  Effective July 
        1, 1995, all transferred employees will be enrolled in the state 
        employees group insurance program as provided in Minnesota 
        Statutes, sections 43A.22 to 43A.31.  The commissioner of 
        employee relations shall provide, to transferred employees, open 
        enrollment in all state employee health and dental insurance 
        plans with no limitation on preexisting conditions except as 
        specified in existing state employee certificates of coverage.  
        The commissioner of employee relations shall provide, to 
        transferred employees, the opportunity to purchase optional life 
        and disability insurance in amounts equivalent to amounts 
        previously purchased by a transferred employee or provided by 
        the employer without limitation on preexisting conditions. 
           Subd. 4.  [PROBATIONARY PERIODS.] Except as otherwise 
        provided in a successor contract, probationary periods are not 
        affected by the transfer of employees to the higher education 
        board.  
           Subd. 5.  [RECALL.] (a) Recall rights described in this 
        subdivision apply until a successor agreement becomes effective. 
           (b) Members of the technical college instructional 
        bargaining unit who are placed on unrequested leave of absence 
        before July 1, 1995, are transferred to and become employees of 
        the higher education board on July 1, 1995, and have recall 
        rights to the technical college instructional unit for five 
        years from the date originally placed on unrequested leave.  For 
        five years after the close of the school year in which the 
        employees were placed on unrequested leave of absence they 
        retain recall rights to vacancies for which they are licensed in 
        the intermediate or school district that placed them on 
        unrequested leave of absence. 
           (c) Members of the technical college instructional 
        bargaining unit who are laid off by the higher education board 
        after June 30, 1995, have recall rights to the technical college 
        instructional unit for five years, unless modified by a 
        successor contract.  They shall also have recall rights for two 
        years to vacancies for which they are licensed in the 
        intermediate or school district from which they were transferred 
        to the higher education board, but only if a transfer or 
        assignment from a technical college position to an elementary or 
        secondary position would have been authorized in that 
        intermediate or school district under the contract in effect 
        immediately before the instructor's transfer to the higher 
        education board. 
           (d) Nonlicensed technical college employees of an 
        intermediate, joint, or school district who are placed on an 
        involuntary layoff before July 1, 1995, are transferred to and 
        become employees of the state on July 1, 1995.  Until June 30, 
        1997, they may exercise job seniority, promotion, layoff, and 
        lateral transfer rights that were established by contract 
        between an exclusive representative and the district and were in 
        effect on June 30, 1995.  
           (e) For two years, unless modified by a successor contract, 
        nonlicensed employees who are laid off by the state after June 
        30, 1995, may exercise job seniority, promotion, layoff, and 
        lateral transfer rights that were established by contract 
        between an exclusive representative and the district and were in 
        effect on June 30, 1995. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day after final enactment.
                                   ARTICLE 6 
                           REVENUE BONDING AUTHORITY 
           Section 1.  Minnesota Statutes 1992, section 136.31, is 
        amended to read: 
           136.31 [STATE UNIVERSITY HIGHER EDUCATION BOARD, DUTIES.] 
           Subdivision 1.  [DUTIES.] All references in sections 136.31 
        to 136.38 to the state university board shall be deemed and 
        construed to include any successor thereof created or 
        established by law.  For the state universities, the state 
        university higher education board is hereby authorized to do the 
        following may: 
           (a) (1) acquire by purchase or otherwise, construct, 
        complete, remodel, equip, operate, control, and manage residence 
        halls, dormitories, dining halls, student union 
        buildings, parking facilities, and any other similar 
        revenue-producing buildings of such type and character as said 
        the board shall from time to time find finds necessary for the 
        good and benefit of any of the state universities under the 
        jurisdiction of said board, and for that purpose may acquire 
        property of any and every kind and description, whether real, 
        personal, or mixed, by gift, purchase, or otherwise; provided 
        that no contract for the construction of any building shall be 
        entered into until financing therefor has been approved by the 
        legislature; 
           (b) (2) maintain and operate any such buildings or 
        structures and charge for the their use thereof, and carry on 
        such conduct any activities, as that are commonly conducted in 
        connection with any such the buildings or structures; 
           (c) (3) enter into contracts touching in any manner or any 
        matter within the objects and for the purposes of sections 
        136.31 136E.80 to 136.38 136E.88; 
           (d) (4) acquire building sites and buildings or structures 
        by gift, purchase, or otherwise and pledge the revenues thereof 
        from them for the payment of any bonds issued for such that 
        purpose as provided in sections 136.31 136E.80 to 136.38 
        136E.88; 
           (e) (5) borrow money and issue and sell bonds in such an 
        amount or amounts as the legislature shall authorize authorizes 
        for the purpose of acquiring, constructing, completing, 
        remodeling, or equipping any such buildings or structures, and 
        acquiring sites therefor, and refund and refinance the same from 
        time to time the bonds by the issuance and sale of refunding 
        bonds as often as it shall in when the board's judgment be 
        advantageous to board finds that it is in the public interest so 
        to do.  All such The bonds shall be sold and issued by said 
        the board in the manner and upon the terms and conditions 
        provided by chapter 475, except as otherwise provided in this 
        section.  Such The bonds shall be are payable solely only 
        from and secured by an irrevocable pledge of the revenues to be 
        derived from the operation of any such buildings or structures 
        acquired, constructed, completed, remodeled, or equipped in 
        whole or in part with the proceeds of such the bonds and in 
        addition thereto from such other income and revenues described 
        in section 136.33 136E.82, clause (a) (1), as said the board 
        by resolution shall specify specifies, and notwithstanding this 
        limitation all bonds issued hereunder under sections 136E.80 to 
        136E.88 shall have the qualities of negotiable instruments under 
        the laws of this state.  The legislature intends shall not to 
        appropriate money from the general fund to pay for these bonds. 
           Subd. 2.  [FORM.] Such The bonds may: 
           (1) bear such the date or dates and may; 
           (2) mature serially at such a time or times not exceeding 
        40 years from their date or dates, may; 
           (3) be in such the form,; 
           (4) carry such the registration privileges, may; 
           (5) be payable at such a place or places, may; 
           (6) be subject to such terms of redemption prior to 
        maturity with or without premium, may; 
           (7) be delivered to the purchasers at such times and places 
        ,; and may 
           (8) contain such terms and covenants, not inconsistent 
        consistent with sections 136.41 and 136.42 section 136E.88, all 
        as may be provided by resolution of said the board authorizing 
        the issuance of such the bonds. 
           Subd. 3.  [EXECUTION.] The bonds must be executed by the 
        officers of the board designated by the board to execute 
        them and countersigned by the treasurer elected by the board, in 
        the manner authorized by section 475.55.  
           Subd. 4.  [BOND STATEMENT; REGISTRATION.] Each such bond 
        shall state upon its face that it is payable solely from and 
        secured by an irrevocable pledge of the revenues derived from 
        the operation of any such buildings or structures acquired, 
        constructed, completed, remodeled, or equipped in whole or in 
        part with the proceeds of the sale of said the bonds and from 
        such other income and revenues described in section 136.33 
        136E.82, clause (a) (1), as specified in the resolution 
        providing for its issue, and that it does not constitute a debt 
        or obligation of the state of Minnesota within the meaning or 
        application of any constitutional or statutory limitation or 
        provision.  Such bonds will be registered by A copy of the 
        proceedings taken by the board in the issuance of the bonds 
        shall be filed with the commissioner of finance in a bond 
        register to be kept for that purpose wherein shall be entered 
        the amount and purpose of issue, the maturity and rate of 
        interest, and the name of the original purchaser. 
           Subd. 5.  [BOND SECURITIES.] If the board by resolution 
        determines that its treasurer possesses money not currently 
        needed, or that is set aside in a reserve, the board in the 
        resolution may direct the treasurer to invest a specified amount 
        of the money in securities of the types described in section 
        475.66.  The securities must be deposited with and held for the 
        board by the treasurer.  If the invested money is needed by the 
        board it shall direct the treasurer to sell all or a designated 
        amount of the securities.  Money collected from the investment 
        by the treasurer, as principal, interest, or proceeds of sales, 
        must be credited to and made a part of the fund and account for 
        which the investment is made. 
           Subd. 6.  In any case where the board determines to issue 
        and sell refunding revenue bonds six months or more before the 
        earliest date on which all bonds of the series to be refunded 
        thereby will have matured or will have been redeemed upon call 
        as hereinafter provided, the proceeds of the refunding revenue 
        bonds shall be deposited, together with any revenues available 
        and designated by the board for the purpose, in escrow with a 
        suitable banking institution within or without the state, whose 
        deposits are insured by the Federal Deposit Insurance 
        Corporation and whose combined capital and surplus is not less 
        than one million dollars, and shall be invested, simultaneously 
        with the delivery of the bonds, in securities maturing or 
        callable at the option of the holder on such dates and bearing 
        interest at such rates as shall be required to provide funds 
        sufficient, with any cash retained in the escrow account, to pay 
        when due the interest to accrue on each bond of the series 
        refunded to its maturity or, if prepayable, to an earlier 
        designated date on which it may be called for redemption, and to 
        pay the principal amount of each such bond at maturity or, if 
        prepayable, at its designated earlier redemption date, and to 
        pay any premium required for redemption on such date; and before 
        the refunding revenue bonds are delivered, the board shall by 
        resolution irrevocably appropriate for these purposes, and for 
        the payment of the reasonable charges of banks designated as 
        escrow and paying agents, the escrow account and all payments of 
        principal and interest on the securities held therein, and shall 
        provide for the call of all prepayable bonds of such series, in 
        accordance with their terms, on the redemption date or dates 
        designated. The board may place in escrow pursuant to this 
        subdivision any funds previously pledged and appropriated for 
        the payment of principal and interest on bonds to be refunded; 
        and it may, when deemed necessary in the public interest, issue 
        refunding revenue bonds in the amount necessary to place in 
        escrow the funds required to pay any premium for redemption of 
        refunded bonds before their stated maturities. Investments of 
        the escrow account shall be limited to general obligations of 
        the United States, securities whose principal and interest 
        payments are guaranteed by the United States, and securities 
        issued by the following agencies of the United States:  Banks 
        for Cooperatives, Federal Home Loan Banks, Federal Intermediate 
        Credit Banks, Federal Land Banks, and the Federal National 
        Mortgage Association.  No refunding revenue bonds shall be 
        issued more than ten years before the last date on which all 
        revenue bonds of the series to be refunded thereby will mature 
        or are directed to be prepaid in accordance with their terms. 
           Subd. 7.  [PAYMENT OF INTEREST; OUTSTANDING REVENUE BONDS.] 
        Except as provided in this subdivision, the board may 
        irrevocably appropriate and use any money, other than direct 
        state appropriations and tuition receipts appropriated by 
        section 136.11, subdivision 1, held by it to discharge or 
        otherwise provide for the payment of the interest coming due on 
        its revenue bonds outstanding on July 1, 1988, until paid 
        and for the payment of the principal and any premium coming due 
        on the bonds at maturity or upon any earlier date upon which the 
        bonds are called for redemption.  For this purpose, the board 
        may exercise all powers conferred upon it under subdivision 6 
        with respect to escrow agents and escrow accounts, and may 
        provide for the funding of the escrow accounts with securities 
        of the type referred to in subdivision 6 and certificates of 
        deposit, time deposits, and investment agreements issued by the 
        escrow agent or any other financial institution section 475.67, 
        subdivisions 5 to 10.  This subdivision does not authorize the 
        appropriation or use of board money to secure outstanding 
        revenue bonds contrary to a board resolution authorizing the 
        issuance and providing for the security of the bonds, or the use 
        of other board money contrary to the terms of a contract, 
        specific legislative appropriation, or law.  
           Sec. 2.  Minnesota Statutes 1992, section 136.32, is 
        amended to read: 
           136.32 [BONDS, INVESTMENTS.] 
           The state, including the state board of investment, and all 
        counties, cities, incorporated towns and other municipal 
        corporations, political subdivisions and political bodies, and 
        public officers of any thereof of the public entities listed in 
        this section, all banks, bankers, trust companies, savings 
        banks, and institutions, building and loan associations, savings 
        and loan associations, investment companies and other persons 
        carrying on a banking business, all insurance companies, 
        insurance associations and other persons carrying on an 
        insurance business, and all executors, administrators, 
        guardians, trustees and other fiduciaries may legally invest any 
        sinking funds, moneys or other funds belonging to them or within 
        their control in any bonds issued pursuant to sections 136.31 
        136E.80 to 136.38, it being 136E.88.  The purpose of this 
        section is to authorize the investment in such bonds of all 
        sinking, insurance, retirement, compensation, pension and trust 
        funds, whether owned or controlled by private or public persons 
        or officers; provided, however, that.  Nothing contained in this 
        section may be construed as relieving any person, firm or 
        corporation from any duty of exercising due care in selecting 
        securities for purchase or investment.  Such The bonds are 
        hereby constituted "authorized securities" within the meaning 
        and for the purposes of section 50.14, notwithstanding the 
        restrictions in part (c) of subdivision 4 thereof section 50.14, 
        subdivision 4, clause (c).  
           Sec. 3.  Minnesota Statutes 1992, section 136.33, is 
        amended to read: 
           136.33 [RESOLUTION OF BOARD.] 
           Upon the determination by said university the higher 
        education board or its successor to acquire, construct, 
        complete, remodel, or equip any student residence halls, 
        dormitories, dining halls, student union buildings, parking 
        facilities, or other similar revenue-producing building or 
        buildings, said the board or its successor shall adopt a 
        resolution describing generally the contemplated project, the 
        estimated cost thereof, including legal, engineering and 
        financial expenses and interest on the bonds during the period 
        of constructing the project and for six months thereafter, 
        fixing the amount of the bonds, the maturity or maturities, the 
        interest rate, and all details in respect thereof of the bonds.  
        Such The resolution shall contain such covenants as may be 
        determined by said the board or its successor as to: 
           (a) (1) the pledging of all or any portion of the proceeds 
        of any fees imposed upon students for student activities, 
        student facilities, or for other purposes, and the net revenues 
        from other buildings or facilities heretofore or hereafter 
        constructed or acquired at any state university under the 
        jurisdiction of said board as additional security for the 
        payment of said the bonds; 
           (b) (2) the regulation as to the use of such the buildings 
        or structures to assure the maximum use or occupancy thereof; 
           (c) (3) the amount and kind of insurance to be carried, 
        including use and occupancy insurance, the cost of which shall 
        be payable only from the revenues to be derived from such the 
        buildings or structures; 
           (d) (4) the operation, maintenance, management, accounting 
        and auditing, and the keeping of records, reports and audits 
        of such the buildings or structures; 
           (e) (5) the obligation of said the board or its successor 
        to maintain such the buildings or structures in good condition 
        and to operate the same them in an economical and efficient 
        manner; 
           (f) (6) the amendment or modification of the resolution 
        authorizing the issuance of any bonds hereunder, and the manner, 
        terms and conditions, and the amount or percentage of assenting 
        bonds necessary to effectuate such the amendment or 
        modification; and 
           (g) such (7) other covenants as may be deemed necessary or 
        desirable to assure the prompt and punctual payment of all bonds 
        issued under sections 136.31 136E.80 to 136.38 136E.88. 
           Sec. 4.  Minnesota Statutes 1992, section 136.34, is 
        amended to read: 
           136.34 [STUDENT ACTIVITIES, FEES CHARGED.] 
           Whenever bonds are issued as provided in sections 136.31 
        136E.80 to 136.38 136E.88, it shall be the duty of said the 
        higher education board to establish charges or fees, including 
        without limitation fees for student activities and fees for 
        student facilities, for the use of any buildings or structures 
        sufficient at all times to pay the principal of and interest 
        on such the bonds and to create and maintain suitable 
        reserves therefor for them and the necessary expenses of the 
        their operation and maintenance thereof; and.  All revenues 
        derived from the their operation thereof shall be set aside in a 
        separate fund and accounts as hereinafter provided and shall be 
        irrevocably pledged for and used only in paying to pay the 
        principal of and interest upon the bonds issued for the purpose 
        or purposes set forth and described in the resolution 
        authorizing the issuance of said the bonds, and the necessary 
        expenses of the operation and maintenance thereof of the 
        buildings and structures; and such the charges and fees shall be 
        sufficient at all times for such these purposes.  
           Sec. 5.  Minnesota Statutes 1992, section 136.35, is 
        amended to read: 
           136.35 [SPECIAL REVENUE FUND.] 
           (a) The gross total income derived from the sale of bonds, 
        and receipts and income derived from charges or fees, rentals, 
        and all other revenue established for the use and service of any 
        such buildings or structures shall, within three days after 
        their receipt thereof, be paid to and held by the treasurer of 
        the higher education board as a special fund known as, 
        "The University Higher Education Board of the State of Minnesota 
        Universities Revenue Fund"."  The treasurer shall be custodian 
        of such the special fund, which fund shall be held and disbursed 
        for the purposes provided in sections 136.31 136E.80 to 136.38 
        136E.88.  The said special fund shall be protected by a 
        corporate surety bond executed by the treasurer of the board 
        with a surety authorized to do business under the laws of the 
        state of Minnesota.  The amount of such the bond shall be fixed 
        by resolution of said university the board or its successor and 
        may be increased or diminished at any time.  The premiums of 
        such the bonds shall be payable from "The University Higher 
        Education Board of the State of Minnesota Universities Revenue 
        Fund" and charged as an item of maintenance expense. 
           (b) A certified copy of each resolution providing for the 
        issuance of bonds under sections 136.31 136E.80 to 136.38 
        136E.88 shall be filed with the treasurer of the board, and it 
        shall be the duty of said the treasurer to keep and maintain 
        separate accounts in said the special fund for each bond issue 
        in accordance with the covenants and the directions set out in 
        the resolution providing for the issuance of said the bonds and 
        to disburse funds from the proper account for the payment of the 
        principal of and interest on the bonds in accordance with the 
        directions and covenants of said the resolution authorizing the 
        issue thereof.  All disbursements for maintenance and operation 
        costs shall be made from the proper maintenance and operation 
        account upon by order of said the board or its successor in 
        accordance with the covenants set out in the resolution 
        authorizing the issuance of bonds.  All disbursements for 
        construction costs shall be made from a separate account in said 
        the special fund upon by order of said the board or its 
        successor in accordance with the covenants set out in the 
        resolution authorizing said the bonds. 
           Sec. 6.  Minnesota Statutes 1992, section 136.36, is 
        amended to read: 
           136.36 [ALLOCATION OF RECEIPTS.] 
           All moneys now or hereafter in the University Higher 
        Education Board of The State of Minnesota Universities Revenue 
        Fund and all income from the operation of such dormitories, 
        cafeterias and student facilities residence halls, dormitories, 
        dining halls, student union buildings, parking facilities and 
        other revenue producing buildings and structures are hereby 
        appropriated first to the payment of expenses of the operation 
        of dormitories, cafeterias and other student the facilities from 
        which the revenues so appropriated are derived and second to the 
        payment of the obligations herein authorized by sections 136E.80 
        to 136E.88. 
           Sec. 7.  Minnesota Statutes 1992, section 136.37, is 
        amended to read: 
           136.37 [ADMINISTRATION.] 
           The administration of sections 136.31 136E.80 to 136.38 
        136E.88 shall be under the state university higher education 
        board independent of other authority and notwithstanding 
        chapters 16A and 16B. 
           Sec. 8.  Minnesota Statutes 1992, section 136.38, is 
        amended to read: 
           136.38 [CONTRACTS OF BOARD, PERFORMANCE COMPELLED.] 
           (a) The provisions of sections 136.31 136E.80 to 136.38 
        136E.88 and of any resolution or other proceedings authorizing 
        the issuance of bonds shall constitute a contract with the 
        holders of such the bonds and the provisions thereof shall be 
        enforceable either in law or in equity, by suit, action, 
        mandamus or other proceeding in any court of competent 
        jurisdiction to enforce or compel the performance of any duties 
        required by sections 136.31 136E.80 to 136.38 136E.88 and any 
        resolution authorizing the issuance of bonds adopted responsive 
        hereto, including the establishment of sufficient charges or 
        fees for use of any such buildings or structures and the 
        application of the income and revenue thereof from them; and it 
        shall be the duty of said university the higher education board 
        or its successor upon the issuance of any bonds under the 
        provisions of sections 136.31 136E.80 to 136.38 136E.88 to 
        establish by resolution from time to time the fees or charges to 
        be made for the use of any such buildings or structures, which 
        fees or charges shall be adjusted from time to time in order to 
        always provide sufficient income for payment of the principal of 
        and interest on such the bonds issued as provided for in 
        sections 136.31 136E.80 to 136.38 136E.88, and for the necessary 
        expenses of operation and maintenance.  
           (b) If the existing university higher education board of 
        the state of Minnesota is abolished, all contracts made by said 
        the board and all things done or actions taken by said the board 
        under sections 136.31 136E.80 to 136.38 136E.88 shall be deemed 
        to be contracts of, actions taken and things done by its 
        successor and such the successor shall be bound by all such 
        contracts, actions taken and things done by said the board and 
        such successor shall be subject to all the obligations and 
        duties of said the board under sections 136.31 136E.80 to 
        136.38 136E.88. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        136.41, subdivision 8, is amended to read: 
           Subd. 8.  [ISSUANCE OF BONDS.] The state university higher 
        education board or a successor may issue additional revenue 
        bonds under sections 136.31 to 136.38 in an aggregate principal 
        amount not exceeding $40,000,000, subject to the resolutions 
        authorizing its outstanding revenue bonds, and payable from the 
        revenue appropriated to the fund established by section 136.35, 
        and use the proceeds together with other public or private money 
        that may otherwise become available to acquire land, and to 
        acquire, construct, complete, remodel, and equip structures to 
        be used for dormitory, residence hall, student union, food 
        service, and related parking purposes at the state 
        universities.  Before issuing the bonds or any part of them, the 
        board shall consult with and obtain the advisory recommendations 
        of the chairs of the house ways and means committee and the 
        senate finance committee about the facilities to be financed by 
        the bonds. 
           Sec. 10.  Minnesota Statutes 1992, section 136.41, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [SUCCESSOR.] For the purposes of this section, 
        the higher education board is the successor to the state 
        university board.  
           Sec. 11.  [REPEALER.] 
           Minnesota Statutes 1992, sections 136.31, subdivision 6; 
        136.40; 136.41, subdivisions 1, 2, 3, 4, 5, 6, and 7; and 
        136.42, are repealed. 
           Sec. 12.  [REVISOR INSTRUCTION.] 
           (a) In the 1996 edition of Minnesota Statutes, the revisor 
        shall renumber sections 136.31 as 136E.80; 136.31, subdivision 
        7, as 136E.80, subdivision 6; 136.32 as 136E.81; 136.33 as 
        136E.82; 136.34 as 136E.83; 136.35 as 136E.84; 136.36 as 
        136E.85; 136.37 as 136E.86; 136.38 as 136E.87; 136.41, 
        subdivision 8, as 136E.88, subdivision 1; 136.41, subdivision 9, 
        as 136E.88, subdivision 2; 136.41, subdivision 10, as 136E.88, 
        subdivision 3. 
           (b) The revisor shall add "Federal Tax on Interest" as a 
        headnote to section 136.41, subdivision 9. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Sections 1 to 12 are effective July 1, 1995. 
                                   ARTICLE 7
                           ADMINISTRATION AND FINANCE
           Section 1.  Minnesota Statutes 1992, section 136C.06, is 
        amended to read: 
           136C.06 [SOLE STATE AGENCY.] 
           The state board of technical colleges higher education 
        board is the sole state agency to receive and disburse federal 
        funds authorized by the Vocational Education Act of 1963, as 
        amended in the education amendments of 1976, Public Law Number 
        94-482, and Code of Federal Regulations, title 34, part 400.  
        The state board shall develop and submit the state plan for 
        vocational technical education.  The state board shall develop 
        the state plan according to terms of agreement with the state 
        board of education.  
           Sec. 2.  Minnesota Statutes 1992, section 136E.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] The higher education board, 
        referred to in sections 136E.01 to 136E.05 as "the board," 
        consists of 13 15 members appointed by the governor with the 
        advice and consent of the senate.  At least one member of the 
        board must be a resident of each congressional district.  One 
        member Three members must be a student students who are enrolled 
        at least half-time in a degree, diploma, or certificate program 
        or have graduated from an institution governed by the board 
        within one year of the date of appointment.  The student members 
        shall include:  one member from a community college, one member 
        from a state university, and one member from a technical 
        college.  The remaining members must be appointed to represent 
        the state at large.  
           Sec. 3.  Minnesota Statutes 1992, section 136E.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 
        compensation, removal of members, and filling of vacancies on 
        the board are as provided in section 15.0575.  Members are 
        appointed for a term of six years, except that the term of each 
        of the student member members is two years.  Terms end on June 
        30. 
           Sec. 4.  Minnesota Statutes 1992, section 136E.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] A higher education board 
        candidate advisory council shall assist the governor in 
        determining criteria for, and identifying and recruiting 
        qualified candidates for, nonstudent membership on the higher 
        education board. 
           Sec. 5.  [136E.021] [STUDENT BOARD MEMBER SELECTION.] 
           Subdivision 1.  [RESPONSIBILITY.] Notwithstanding section 
        136E.02, the statewide community college student association, 
        state university student association, and technical college 
        student association shall each have the responsibility for 
        recruiting, screening, and recommending qualified candidates for 
        its student member of the board. 
           Subd. 2.  [CRITERIA.] After consulting with the higher 
        education board candidate advisory council, the student 
        associations shall jointly develop a statement of the selection 
        criteria to be applied to potential candidates. 
           Subd. 3.  [RECRUITING AND SCREENING.] Each student 
        association shall develop processes for identifying and 
        recruiting qualified candidates and for screening those 
        candidates. 
           Subd. 4.  [RECOMMENDATIONS.] Each student association shall 
        recommend at least two and not more than four candidates for its 
        student member.  By January 2 of the year in which its members' 
        term expires, each student association shall submit its 
        recommendations to the governor.  The governor is not bound by 
        these recommendations. 
           Sec. 6.  Minnesota Statutes 1993 Supplement, section 
        136E.03, is amended to read: 
           136E.03 [MISSION MISSIONS.] 
           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 as provided in section 135A.052, subdivision 1.  Within 
        that statutory definition and subject to the approval of the 
        board, each community college, state university, and technical 
        college may develop its own distinct campus mission.  The board 
        shall develop administrative arrangements that make possible the 
        efficient use of the facilities and staff of the 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. 7.  [136E.525] [STUDENT ASSOCIATIONS.] 
           Subdivision 1.  [STATEWIDE.] The board shall recognize one 
        statewide student association for the community colleges, one 
        for the state universities, and one for the technical colleges.  
        Each statewide student association shall be affiliated with its 
        campus student associations but all students enrolled on those 
        campuses shall be members of their respective statewide 
        association. 
           Subd. 2.  [FEES.] Each statewide association shall set its 
        fees to be collected by the board and shall submit any changes 
        in its fees to the board for review.  The board may revise or 
        reject the fee change.  Fees must be collected by each community 
        college, state university, and technical college and shall be 
        credited to each association's account to be spent as determined 
        by that association. 
           Subd. 3.  [CONSOLIDATION.] No changes may be made to 
        student associations located on community college, state 
        university, technical college, or consolidated colocated 
        campuses without the approval of each affected campus 
        association in consultation with its state student association.  
           Sec. 8.  [136E.692] [CONSTRUCTION, IMPROVEMENT, AND REPAIR 
        OF FACILITIES.] 
           Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The higher 
        education board shall supervise and control the preparation of 
        plans and specifications for the construction, alteration, or 
        enlargement of community college, state university, and 
        technical college buildings, structures, and improvements for 
        which appropriations are made to the board.  The board shall 
        advertise for bids and award contracts in connection with the 
        improvements, supervise and inspect the work, approve necessary 
        changes in the plans and specifications, approve estimates for 
        payment, and accept the improvements when completed according to 
        the plans and specifications. 
           Subd. 2.  [PLANS.] Plans and specifications must be 
        accompanied by a detailed statement of the cost, quality, and 
        description of all material and labor required for the 
        completion of the work.  No plan may be adopted, and no 
        improvement made or building constructed, that contemplates the 
        expenditure for its completion of more money than the 
        appropriation for it, unless otherwise provided by law.  
           Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
        projects, the higher education board must not restrict its 
        access to litigation or limit its methods of redress to 
        arbitration or other nonjudicial procedures. 
           Subd. 4.  [REPAIRS.] The higher education board shall 
        supervise and control the making of necessary repairs to all 
        community college, state university, and technical college 
        buildings and structures. 
           Sec. 9.  Laws 1991, chapter 356, article 9, section 8, 
        subdivision 1, is amended to read: 
           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 members 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. 
           Sec. 10.  [INITIAL TERMS.] 
           Notwithstanding Minnesota Statutes, section 136E.01, the 
        terms of the initial permanent student members of the board 
        shall be as follows:  the technical college student shall serve 
        one year, the community college student shall serve one year, 
        and the state university student shall serve two years. 
           Sec. 11.  [REVISOR INSTRUCTION.] 
           In the 1996 edition of Minnesota Statutes, the revisor 
        shall renumber section 136C.06 as 136E.60. 
           Sec. 12.  [EFFECTIVE DATE.] 
           Sections 1 to 3, 7, 8, 10 and 11 are effective July 1, 1995.
           Presented to the governor May 2, 1994 
           Signed by the governor May 5, 1994, 5:52 p.m.