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                            CHAPTER 395-S.F.No. 2849 
                  An act relating to education; appropriating money for 
                  education and related purposes to the higher education 
                  services office, the board of trustees of the 
                  Minnesota state colleges and universities, and the 
                  board of regents of the University of Minnesota; 
                  making technical changes related to the post-secondary 
                  merger; redirecting University of Minnesota revenue; 
                  extending survivor education benefits; amending 
                  Minnesota Statutes 1994, sections 116L.03, subdivision 
                  1; 169.121, subdivision 10; 202A.19, subdivision 3; 
                  and 204C.03, subdivision 2; Minnesota Statutes 1995 
                  Supplement, sections 116L.03, subdivision 2; 256.969, 
                  subdivision 9; and 297A.25, subdivision 11; Laws 1994, 
                  chapter 643, section 69, subdivision 1; Laws 1995, 
                  chapter 212, article 1, section 3, subdivision 2; 
                  proposing coding for new law in Minnesota Statutes, 
                  chapter 256; repealing Minnesota Statutes 1995 
                  Supplement, section 16A.125, subdivision 6a; Minnesota 
                  Rules, parts 4800.8100, 4800.8200, 4800.8300, 
                  4800.8400, 4830.6500, 4830.6510, 4830.6520, 4830.6600, 
                  4830.6610, 4830.6620, 4830.8510, 4830.8520, 4830.8530, 
                  4830.8535, 4830.8540, 4830.8550, 4830.8570, and 
                  4830.8575. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The sums in the columns headed "APPROPRIATIONS" are 
        appropriated from the general fund, or another named fund, to 
        the agencies and for the purposes specified to be available for 
        the fiscal years indicated for each purpose. 
                                SUMMARY BY FUND
                                  1996          1997           TOTAL
        General            $      -0-     $   16,000,000 $   16,000,000
                         SUMMARY BY AGENCY - ALL FUNDS
                                  1996          1997           TOTAL
        Higher Education Services
        Office                    -0-          1,700,000      1,700,000
        Board of Trustees of the
        Minnesota State Colleges
        and Universities          -0-          5,300,000      5,300,000
        Board of Regents of the University
        of Minnesota              -0-          9,000,000      9,000,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1996         1997 
        Sec. 2.  HIGHER EDUCATION 
        SERVICES OFFICE                    $      -0-     $    1,700,000 
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) State Grants            
               -0-          1,500,000
        This appropriation contains money to 
        set the living and miscellaneous 
        expense at $4,255 in the second year. 
        By October 1, 1996, the higher 
        education services office shall 
        transfer any projected surplus in the 
        state grant appropriation to the state 
        work study program to be added to the 
        fiscal year 1997 appropriation in Laws 
        1995, chapter 212, article 1, section 
        2, subdivision 4.* (The preceding text 
        beginning "(a)" was vetoed by the 
        governor.) 
        (b) Statewide On-line Library 
        Information System Planning     
               -0-            150,000
        The higher education services office 
        shall manage and coordinate a process 
        to develop a statewide, on-line 
        information system for libraries, and 
        determine the benefits and functional 
        requirements of automated, statewide 
        linkages.  The process, reports, plans, 
        and requests for proposals shall be 
        subject to the review and 
        recommendation of the library planning 
        task force.  The higher education 
        services office shall coordinate with 
        the University of Minnesota, the 
        Minnesota state colleges and 
        universities, the Minnesota education 
        telecommunications council, the 
        government information access council, 
        the MINITEX advisory committee, the 
        advisory council of the office of 
        library development and services in the 
        department of children, families, and 
        learning, and the information policy 
        office in the department of 
        administration. 
        The statewide, on-line information 
        system must meet the following criteria:
        (1) be open to all University of 
        Minnesota, Minnesota state colleges and 
        universities, state government, public, 
        school, and private college libraries; 
        (2) have a formal governing structure 
        that includes the University of 
        Minnesota, Minnesota state colleges and 
        universities, and representatives of 
        participating state government, public, 
        school, private college, and other 
        libraries; 
        (3) provide for the broadest possible 
        sharing of information and cooperative 
        collection management; 
        (4) provide the people of Minnesota 
        with direct access to library catalogs 
        and information resources; 
        (5) allow libraries to retain local 
        options for determining when to begin 
        participating in the statewide systems 
        and for maintaining circulation 
        policies and practices; and 
        (6) have a plan for evaluation of 
        costs, access, and outcomes. 
        By January 15, 1997, the higher 
        education services office shall 
        recommend to the chairs of the higher 
        education committees of the legislature 
        a plan for creating a statewide, 
        on-line information system.  The plan, 
        subject to the prior review and 
        recommendation by the library planning 
        task force, shall include a proposed 
        implementation timeline, technical 
        standards, a draft request for 
        proposal, a governance structure, and a 
        budget. 
        The higher education services office 
        shall develop the final request for 
        proposal, subject to the prior review 
        and recommendation by the library 
        planning task force, for a statewide, 
        on-line information system no later 
        than June 30, 1997. 
        Money appropriated under this paragraph 
        may not be used for the office's 
        indirect or operating costs. 
        (c) Loan Repayment Assistance
               -0-             50,000 
        This appropriation is for the loan 
        repayment assistance program of 
        Minnesota to reimburse graduates of 
        Minnesota law schools working in 
        Minnesota communities who are eligible 
        under the criteria for loan repayment 
        assistance for institutional law school 
        debt.  The eligibility criteria must 
        include the following:  (1) recipient's 
        annual household income is $30,000 or 
        less; and (2) recipients are providing 
        legal services full time for 
        economically disadvantaged persons for 
        a nonprofit agency as defined by 
        sections 501(c)(3), 501(c)(4), or 
        501(c)(5) of the Internal Revenue Code 
        of 1986, or Native American tribal 
        governments.  The money may be released 
        to the program only in amounts that 
        match contributions from the private 
        sector.* (The preceding text beginning 
        "(c)" was vetoed by the governor.) 
        Sec. 3.  BOARD OF TRUSTEES OF THE 
        MINNESOTA STATE COLLEGES 
        AND UNIVERSITIES                         -0-          4,900,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Applied Research Center 
               -0-             50,000
        This appropriation is for Bemidji State 
        University to establish an applied 
        research, design, and development 
        center.  The center will contract with 
        Minnesota businesses and industries to 
        conduct applied research.  This 
        appropriation is nonrecurring. 
        (b) Instructional Technology Grants 
               -0-          4,525,000
        This appropriation is to develop an 
        electronic delivery system by awarding 
        competitive grants to campuses or 
        campus faculty for acquisition, 
        improvement, and innovative 
        applications of technology.  Up to 
        $300,000 of this appropriation may be 
        spent for central office administrative 
        costs.  The grants must be awarded for 
        proposals that are student centered and 
        directly affect classroom instruction, 
        advising, and other services that 
        enhance student success.  Priority 
        shall be placed on grant projects for 
        instructional technology.  Grants may 
        be for any amount up to $250,000 and 
        shall be awarded through a process 
        developed by the board.  The board 
        shall set up a review panel to judge 
        the proposals.  The panel shall include 
        faculty, administration, students, and 
        at least one member of the Minnesota 
        high technology council. 
        The legislature expects that the system 
        office will complete at least the 
        following tasks in the development of 
        the electronic delivery system:  (1) 
        request proposals from campuses and 
        award grants; (2) identify systemwide 
        network defects; and (3) promote 
        public/private ventures.  The system 
        shall report the results of use of this 
        appropriation in the 1997-1999 biennial 
        budget document. 
        (c) Regional Farm Business 
        Management Programs 
               -0-            150,000
        This appropriation is to update 
        electronic capability for the 
        instructors in farm business management 
        programs.  Each of the six regional 
        farm business management programs shall 
        receive $25,000 of this appropriation. 
        (d) Work Skills Upgrade Program 
               -0-            175,000
        The chancellor of the Minnesota state 
        colleges and universities shall 
        designate at least one technical 
        college or consolidated 
        community-technical college to be a 
        demonstration site for a work skills 
        upgrade program.  The program shall 
        offer learning experiences that have 
        broad application for Minnesotans 
        wishing to improve their employability 
        or otherwise keep current in skills 
        necessary to succeed in the changing 
        economy.  The program shall be offered 
        at low cost to the student.  The 
        chancellor shall report to the 
        education committees of the 
        legislature, in the biennial budget 
        document, on the progress of the 
        demonstration program and potential for 
        expanding the program to other campuses.
        The chancellor shall establish an 
        advisory group which includes the 
        commissioner of economic security or 
        the commissioner's designee; the 
        commissioner of children, families, and 
        learning or the commissioner's 
        designee; a representative of labor; a 
        representative of business; a faculty 
        member; and a student. 
        The advisory group shall: 
        (1) identify the outcomes of each 
        learning experience offered under the 
        program; 
        (2) establish methods to document that 
        students have achieved the outcomes 
        identified for each learning 
        experience; 
        (3) identify and seek nonstate money to 
        supplement the appropriation; and 
        (4) identify mechanisms whereby 
        students and employers who benefit from 
        the program are required to repay some 
        portion of the benefit. 
        "Learning experience" means a short 
        course offered at an on- or off-campus 
        site or through distance education; 
        computer-based instruction; 
        videocassettes; and other alternative 
        instructional technologies. 
        (e) Metro State University Planning 
        By February 15, 1997, the system office 
        and campuses of the Minnesota state 
        colleges and universities shall submit 
        to the legislature a master academic 
        plan for the metropolitan area that 
        defines the current and future missions 
        and plans of the metro area colleges 
        and universities.  Within the fiscal 
        realities of the state, the plan must 
        consider short- and long-term 
        demographic and enrollment projections, 
        physical plant capacity and needs, and 
        coordination and duplication of program 
        offerings.  The system office shall 
        consult with the University of 
        Minnesota during the planning process. 
        The plan must be submitted to the board 
        of trustees for approval before 
        submission for legislative approval. 
        Sec. 4.  BOARD OF REGENTS OF THE 
        UNIVERSITY OF MINNESOTA                  -0-          8,600,000
        The amounts that may be spent from this 
        appropriation for each purpose are as 
        follows: 
        (a) Academic Health Center 
        (1) Information Technology 
               -0-          2,000,000
        This appropriation is for a data and 
        video network and equipment to connect 
        academic health center faculty and 
        students on the St. Paul, Duluth, and 
        Minneapolis campuses and at 
        community-based sites. 
        (2) Restructuring
               -0-          6,600,000
        This appropriation is for the academic 
        health center for the development and 
        purchase of new information technology 
        to improve the delivery of health care 
        education programs and to redesign the 
        curriculum and underwrite the 
        development of new or expanded programs 
        in health care education.  Where 
        necessary, this money may also be used 
        to cover the costs of downsizing 
        programs and retraining faculty and 
        staff, but may not be used to finance 
        the integration of the University 
        hospital with Fairview Health Systems. 
        The legislature requests the faculty, 
        administration, and board of regents of 
        the University to pursue an internal 
        process leading to changes in the 
        tenure code applicable to the academic 
        health center, without infringing on 
        academic freedom. 
        The commissioner of finance shall place 
        this appropriation in a performance 
        incentive account. 
        The commissioner shall release 90 
        percent of this money to the board of 
        regents when the board of regents 
        certifies that changes have been made 
        in the personnel policies for clinical 
        faculty with regular appointments in 
        the academic health center which enable 
        the University to alter clinical 
        compensation and base salary, and 
        provide a streamlined due process 
        procedure for separation under the 
        provost of the academic health center, 
        without infringing on academic freedom. 
        The commissioner shall release ten 
        percent of this money when the 
        University demonstrates that it is 
        progressing in its development of the 
        school of medicine at the University of 
        Minnesota Duluth as a rural health 
        center.  This progress shall be 
        measured by (1) changes in the 
        educational program to expand the 
        coordination of training for rural 
        nurse practitioner, pharmacy, physician 
        assistant, and medical students; and 
        (2) development of electronic linkages 
        between distant sites to provide video 
        conferences, transmission of images, 
        and transfer of information. 
        Sec. 5.  BOARD OF TRUSTEES OF THE 
        MINNESOTA STATE COLLEGES AND UNIVERSITIES 
        AND THE BOARD OF REGENTS OF THE  
        UNIVERSITY OF MINNESOTA                  -0-            800,000 
        $400,000 of this appropriation is to 
        the board of trustees of the Minnesota 
        state colleges and universities and 
        $400,000 is to the board of regents of 
        the University of Minnesota to enter 
        into a joint project for distance 
        learning development. 
        The systems shall use the appropriation 
        for the following functions: 
        (1) to acquire, develop, and distribute 
        high quality distance learning 
        resources and courseware needed to meet 
        identified distance learning needs; 
        (2) to award grants to faculty to 
        develop technology-based courseware for 
        a variety of delivery modes including 
        multimedia and the Internet; 
        (3) to decide which courses and degrees 
        shall be offered by each institution in 
        order to eliminate overlap and promote 
        efficient use of resources; and 
        (4) to develop strategies to market and 
        distribute distance learning proposals 
        within and outside Minnesota, including 
        possible collaborative relationships 
        with private organizations. 
        Staffing for the joint project shall be 
        provided by the member systems. 
        The higher education systems shall 
        report in the 1997-1999 biennial budget 
        document on progress in carrying out 
        the functions specified and any 
        organizational or governance structure 
        changes needed for the joint project to 
        most effectively carry out its 
        functions. 
           Sec. 6.  Minnesota Statutes 1994, section 116L.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERS.] The partnership shall be 
        governed by a board of 12 11 directors.  
           Sec. 7.  Minnesota Statutes 1995 Supplement, section 
        116L.03, subdivision 2, is amended to read: 
           Subd. 2.  [APPOINTMENT.] The Minnesota job skills 
        partnership board consists of:  eight members appointed by the 
        governor, the commissioner of trade and economic development, 
        the commissioner of economic security, the chancellor of the 
        technical college system, and the chancellor, or the 
        chancellor's designee, of the board of trustees of the Minnesota 
        state colleges and universities.  If the chancellor makes a 
        designation under this subdivision, the designee must have 
        experience in technical education.  
           Sec. 8.  Minnesota Statutes 1994, section 169.121, 
        subdivision 10, is amended to read: 
           Subd. 10.  [RESEARCH PROGRAMS.] No person is guilty of a 
        violation of this section committed while participating in a 
        research or demonstration project conducted by the Minnesota 
        highway safety center created pursuant to section 136.147.  This 
        subdivision applies only to conduct occurring while operating a 
        state-owned vehicle under the supervision of personnel of the 
        center on the grounds of the center.  
           Sec. 9.  Minnesota Statutes 1994, section 202A.19, 
        subdivision 3, is amended to read: 
           Subd. 3.  The University of Minnesota may not schedule an 
        event which will take place after 6:00 p.m. on the day of a 
        major political party precinct caucus unless permission to do so 
        has been received from the board of regents.  No Minnesota state 
        college or university may schedule an event which will take 
        place after 6:00 p.m. on the day of a major political party 
        precinct caucus unless permission to do so has been received 
        from the state university board of trustees of the Minnesota 
        state colleges and universities.  No community college may 
        schedule an event which will take place after 6:00 p.m. on the 
        day of a major political party precinct caucus unless permission 
        to do so has been received from the state board for community 
        colleges. 
           Sec. 10.  Minnesota Statutes 1994, section 204C.03, 
        subdivision 2, is amended to read: 
           Subd. 2.  [STATE COLLEGES AND UNIVERSITIES AND COMMUNITY 
        COLLEGES.] Except for regularly scheduled classes, no Minnesota 
        state college or university or state community college shall 
        schedule an event between 6:00 p.m. and 8:00 p.m. on the day 
        that an election is held in any political subdivision in which 
        the university or college is located.  
           Sec. 11.  Minnesota Statutes 1995 Supplement, section 
        256.969, subdivision 9, is amended to read: 
           Subd. 9.  [DISPROPORTIONATE NUMBERS OF LOW-INCOME PATIENTS 
        SERVED.] (a) For admissions occurring on or after October 1, 
        1992, through December 31, 1992, the medical assistance 
        disproportionate population adjustment shall comply with federal 
        law and shall be paid to a hospital, excluding regional 
        treatment centers and facilities of the federal Indian Health 
        Service, with a medical assistance inpatient utilization rate in 
        excess of the arithmetic mean.  The adjustment must be 
        determined as follows: 
           (1) for a hospital with a medical assistance inpatient 
        utilization rate above the arithmetic mean for all hospitals 
        excluding regional treatment centers and facilities of the 
        federal Indian Health Service but less than or equal to one 
        standard deviation above the mean, the adjustment must be 
        determined by multiplying the total of the operating and 
        property payment rates by the difference between the hospital's 
        actual medical assistance inpatient utilization rate and the 
        arithmetic mean for all hospitals excluding regional treatment 
        centers and facilities of the federal Indian Health Service; and 
           (2) for a hospital with a medical assistance inpatient 
        utilization rate above one standard deviation above the mean, 
        the adjustment must be determined by multiplying the adjustment 
        that would be determined under clause (1) for that hospital by 
        1.1.  If federal matching funds are not available for all 
        adjustments under this subdivision, the commissioner shall 
        reduce payments on a pro rata basis so that all adjustments 
        qualify for federal match.  The commissioner may establish a 
        separate disproportionate population operating payment rate 
        adjustment under the general assistance medical care program.  
        For purposes of this subdivision medical assistance does not 
        include general assistance medical care.  The commissioner shall 
        report annually on the number of hospitals likely to receive the 
        adjustment authorized by this paragraph.  The commissioner shall 
        specifically report on the adjustments received by public 
        hospitals and public hospital corporations located in cities of 
        the first class. 
           (b) For admissions occurring on or after July 1, 1993, the 
        medical assistance disproportionate population adjustment shall 
        comply with federal law and shall be paid to a hospital, 
        excluding regional treatment centers and facilities of the 
        federal Indian Health Service, with a medical assistance 
        inpatient utilization rate in excess of the arithmetic mean.  
        The adjustment must be determined as follows: 
           (1) for a hospital with a medical assistance inpatient 
        utilization rate above the arithmetic mean for all hospitals 
        excluding regional treatment centers and facilities of the 
        federal Indian Health Service but less than or equal to one 
        standard deviation above the mean, the adjustment must be 
        determined by multiplying the total of the operating and 
        property payment rates by the difference between the hospital's 
        actual medical assistance inpatient utilization rate and the 
        arithmetic mean for all hospitals excluding regional treatment 
        centers and facilities of the federal Indian Health Service; 
           (2) for a hospital with a medical assistance inpatient 
        utilization rate above one standard deviation above the mean, 
        the adjustment must be determined by multiplying the adjustment 
        that would be determined under clause (1) for that hospital by 
        1.1.  The commissioner may establish a separate disproportionate 
        population operating payment rate adjustment under the general 
        assistance medical care program.  For purposes of this 
        subdivision, medical assistance does not include general 
        assistance medical care.  The commissioner shall report annually 
        on the number of hospitals likely to receive the adjustment 
        authorized by this paragraph.  The commissioner shall 
        specifically report on the adjustments received by public 
        hospitals and public hospital corporations located in cities of 
        the first class; and 
           (3) for a hospital that had medical assistance 
        fee-for-service payment volume during calendar year 1991 in 
        excess of 13 percent of total medical assistance fee-for-service 
        payment volume, a medical assistance disproportionate population 
        adjustment shall be paid in addition to any other 
        disproportionate payment due under this subdivision as follows:  
        $1,515,000 due on the 15th of each month after noon, beginning 
        July 15, 1995.  For a hospital that had medical assistance 
        fee-for-service payment volume during calendar year 1991 in 
        excess of eight percent of total medical assistance 
        fee-for-service payment volume and is was the primary hospital 
        affiliated with the University of Minnesota, a medical 
        assistance disproportionate population adjustment shall be paid 
        in addition to any other disproportionate payment due under this 
        subdivision as follows:  $505,000 due on the 15th of each month 
        after noon, beginning July 15, 1995. 
           (c) The commissioner shall adjust rates paid to a health 
        maintenance organization under contract with the commissioner to 
        reflect rate increases provided in paragraph (b), clauses (1) 
        and (2), on a nondiscounted hospital-specific basis but shall 
        not adjust those rates to reflect payments provided in clause 
        (3). 
           (d) If federal matching funds are not available for all 
        adjustments under paragraph (b), the commissioner shall reduce 
        payments under paragraph (b), clauses (1) and (2), on a pro rata 
        basis so that all adjustments under paragraph (b) qualify for 
        federal match. 
           (e) For purposes of this subdivision, medical assistance 
        does not include general assistance medical care.  
           Sec. 12.  [256.9692] [EFFECT OF INTEGRATION AGREEMENT ON 
        DIVISION OF COST.] 
           Beginning in the first calendar month after there is a 
        definitive integration agreement affecting the University of 
        Minnesota hospital and clinics and Fairview hospital and health 
        care services, Fairview hospital and health care services shall 
        pay the University of Minnesota $505,000 on the 15th of each 
        month, after receiving the state payment, provided that the 
        University of Minnesota has fulfilled the requirements of 
        section 256B.19, subdivision 1c. 
           Sec. 13.  Minnesota Statutes 1995 Supplement, section 
        297A.25, subdivision 11, is amended to read: 
           Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
        all sales, including sales in which title is retained by a 
        seller or a vendor or is assigned to a third party under an 
        installment sale or lease purchase agreement under section 
        465.71, of tangible personal property to, and all storage, use 
        or consumption of such property by, the United States and its 
        agencies and instrumentalities, the University of Minnesota, 
        state universities, community colleges, technical colleges, 
        state academies, the Minnesota center for arts education, and 
        school districts are exempt. 
           As used in this subdivision, "school districts" means 
        public school entities and districts of every kind and nature 
        organized under the laws of the state of Minnesota, including, 
        without limitation, school districts, intermediate school 
        districts, education districts, educational cooperative service 
        units, secondary vocational cooperative centers, special 
        education cooperatives, joint purchasing cooperatives, 
        telecommunication cooperatives, regional management information 
        centers, technical colleges, joint vocational technical 
        districts, and any instrumentality of a school district, as 
        defined in section 471.59. 
           Sales exempted by this subdivision include sales under 
        section 297A.01, subdivision 3, paragraph (f), but do not 
        include sales under section 297A.01, subdivision 3, paragraph 
        (j), clause (vii).  
           Sales to hospitals and nursing homes owned and operated by 
        political subdivisions of the state are exempt under this 
        subdivision.  
           The sales to and exclusively for the use of libraries of 
        books, periodicals, audio-visual materials and equipment, 
        photocopiers for use by the public, and all cataloguing and 
        circulation equipment, and cataloguing and circulation software 
        for library use are exempt under this subdivision.  For purposes 
        of this paragraph "libraries" means libraries as defined in 
        section 134.001, county law libraries under chapter 134A, the 
        state library under section 480.09, and the legislative 
        reference library. 
           Sales of supplies and equipment used in the operation of an 
        ambulance service owned and operated by a political subdivision 
        of the state are exempt under this subdivision provided that the 
        supplies and equipment are used in the course of providing 
        medical care.  Sales to a political subdivision of repair and 
        replacement parts for emergency rescue vehicles and fire trucks 
        and apparatus are exempt under this subdivision.  
           Sales to a political subdivision of machinery and 
        equipment, except for motor vehicles, used directly for mixed 
        municipal solid waste management services at a solid waste 
        disposal facility as defined in section 115A.03, subdivision 10, 
        are exempt under this subdivision.  
           Sales to political subdivisions of chore and homemaking 
        services to be provided to elderly or disabled individuals are 
        exempt. 
           Sales of telephone services to the department of 
        administration that are used to provide telecommunications 
        services through the intertechnologies revolving fund are exempt 
        under this subdivision. 
           This exemption shall not apply to building, construction or 
        reconstruction materials purchased by a contractor or a 
        subcontractor as a part of a lump-sum contract or similar type 
        of contract with a guaranteed maximum price covering both labor 
        and materials for use in the construction, alteration, or repair 
        of a building or facility.  This exemption does not apply to 
        construction materials purchased by tax exempt entities or their 
        contractors to be used in constructing buildings or facilities 
        which will not be used principally by the tax exempt entities. 
           This exemption does not apply to the leasing of a motor 
        vehicle as defined in section 297B.01, subdivision 5, except for 
        leases entered into by the United States or its agencies or 
        instrumentalities.  
           The tax imposed on sales to political subdivisions of the 
        state under this section applies to all political subdivisions 
        other than those explicitly exempted under this subdivision, 
        notwithstanding section 115A.69, subdivision 6, 116A.25, 
        360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
        469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
        to the contrary enacted before 1992. 
           Sales exempted by this subdivision include sales made to 
        other states or political subdivisions of other states, if the 
        sale would be exempt from taxation if it occurred in that state, 
        but do not include sales under section 297A.01, subdivision 3, 
        paragraphs (c) and (e). 
           Sec. 14.  Laws 1994, chapter 643, section 69, subdivision 
        1, is amended to read: 
           Subdivision 1.  [TASK FORCE MEMBERSHIP.] An 18-member A 
        22-member planning task force for library and information 
        services shall be established and shall be composed of:  three 
        representatives appointed by the chancellor of the higher 
        education board Minnesota state colleges and universities, one 
        of whom may be serving on the MINITEX advisory committee; two 
        representatives appointed by the president of the University of 
        Minnesota, one of whom may be serving on the MINITEX advisory 
        committee; one representative appointed by the president of the 
        Minnesota private college council; the director of MINITEX; one 
        representative appointed by the commissioner of finance; one 
        representative appointed by the commissioner of administration; 
        one representative appointed by the executive director of the 
        Minnesota higher education coordinating board services office; 
        the director of the office of library development and services; 
        five representatives of public libraries appointed by the 
        director of library development and services; two 
        representatives of elementary and secondary schools appointed by 
        the commissioner of education children, families, and learning; 
        and one representative four representatives appointed by the 
        governor who shall represent the private sector.  The executive 
        director of the Minnesota higher education coordinating 
        board services office shall confer with the other appointing 
        authorities to ensure that at least one-half of the task force 
        members are employed in occupations unrelated to library 
        science.  The executive director of the Minnesota higher 
        education coordinating board shall convene the first meeting of 
        the task force. 
           Sec. 15.  Laws 1995, chapter 212, article 1, section 3, 
        subdivision 2, is amended to read: 
        Subd. 2.  Instructional Expenditures 
        The legislature estimates that 
        instructional expenditures will be 
        $214,536,000 each year for the 
        technical colleges. 
        The legislature estimates that 
        instructional expenditures will be 
        $145,565,000 each year for community 
        colleges. 
        The legislature estimates that 
        instructional expenditures will be 
        $253,612,000 each year for state 
        universities. 
        During the biennium neither the board 
        nor campuses shall plan or develop 
        doctoral level programs or degrees 
        until after they have received the 
        recommendation of the house and senate 
        committees on education, finance, and 
        ways and means. 
        This appropriation includes continued 
        support of at least $400,000 each year 
        for the Mid-Tec and Heartland 
        Telecommunications Networks. 
        This appropriation includes $40,000 
        each year for American Indian 
        outreach.  The legislature anticipates 
        this money will assist the Fond Du Lac 
        campus to recruit, advise, and retain 
        American Indian students. 
        It is the intent of the legislature to 
        hold the Minnesota state colleges and 
        universities accountable for making 
        budgetary and policy decisions that 
        provide students with access to high 
        quality education and training 
        programs.  Significant and demonstrable 
        progress toward the goals in this 
        subdivision and in section 6, 
        subdivision 2, are expected in this 
        biennium for consideration in funding 
        decisions in the next supplemental 
        budget and in the 1998-1999 biennial 
        budget. 
        The commissioner of finance shall place 
        $5,000,000 of the second year 
        appropriation in a performance 
        incentive account.  The commissioner 
        shall release $1,000,000 of this amount 
        to the board of trustees each time that 
        it demonstrates that it has achieved 
        one of the following performance 
        measures has been achieved: 
        (1) increase the percentage of the 
        budget directed to instruction and 
        academic resources; 
        (2) increase the number of credits 
        issued through telecommunications 
        between fiscal year 1995 and fiscal 
        year 1996; 
        (3) increase the retention of new 
        entering freshman on state university 
        campuses who continue into the 
        sophomore year between fiscal year 1995 
        and fiscal year 1996 by at least two 
        percent.  The appropriation shall be 
        distributed released for distribution 
        to those campuses that achieve the 
        increase; 
        (4) increase the percentage of students 
        in two-year programs who graduate 
        within two years of admission, and the 
        percentage of students in four-year 
        programs who graduate within four years 
        of admission by at least two percent.  
        The appropriation shall be distributed 
        released for distribution to campuses 
        that achieve the increase; and 
        (5) increase in placement rates for 
        occupational programs and transfer 
        rates for academic programs for 
        community and technical colleges. 
        One-half of the appropriation for this 
        measure shall be released for placement 
        rate improvements, and one-half shall 
        be released for transfer rate 
        improvements.  
        The legislature expects the board of 
        trustees to demonstrate its commitment 
        to enhancing educational quality, 
        including high priority initiatives 
        that capitalize on opportunities 
        created by merger for:  joint programs 
        with the University of Minnesota for 
        faculty, staff, and administrative 
        development; enhanced opportunities for 
        students of color; and opportunities 
        for using technology to the advantage 
        of students and faculty. 
        The legislature further expects the 
        board of trustees to make difficult 
        choices in its allocations, based on 
        critical evaluations of its campuses 
        and programs, including actions to 
        address the 14 duplicate two-year 
        programs located within 35 miles of 
        each other, as identified by the 
        legislative auditor, for which no 
        action has yet been taken. 
        Each college and university shall 
        demonstrate to the board that, in the 
        face of severe budget constraints, it 
        has identified those programs and 
        functions that are central to the 
        mission of that campus and are most 
        critical to meeting student needs, and 
        that the campus has redirected 
        resources to those identified areas to 
        protect the core educational 
        enterprise.  Further, each campus shall 
        demonstrate that it has taken actions 
        to improve the productivity of faculty, 
        administrators, and staff. 
        The amounts for library access; Fond du 
        Lac American Indian student outreach; 
        incentives for co-located campuses; 
        increased instructional appropriations; 
        performance funding; instructional 
        equipment; conversion to semesters; 
        systemwide computer system development 
        for accounting, payroll, personnel, 
        procurement, and student records; staff 
        training for use of systems; staff 
        restructuring, separation payments, and 
        unemployment insurance; and development 
        of library collections and curriculum 
        at Metro State University are for these 
        purposes only and shall be 
        nonrecurring.  The amounts are 
        $8,741,000 in fiscal year 1996 and 
        $16,147,000 in fiscal year 1997. 
           Sec. 16.  [PUBLIC SAFETY OFFICER'S SURVIVOR BENEFITS; 
        EDUCATIONAL BENEFITS FOR CERTAIN SURVIVING CHILDREN.] 
           Each surviving child of a volunteer firefighter killed in 
        the line of duty before July 1, 1990, who was eligible to 
        receive educational benefits as of that date under Minnesota 
        Statutes, section 299A.45, but for whom educational certificates 
        were not issued by the department of public safety, shall be 
        eligible to receive an educational benefit award equal to the 
        amount the child would have been eligible to receive had the 
        certificates been issued in a timely manner. 
           The awards under this section are otherwise subject to 
        Minnesota Statutes, section 299A.45. 
           Sec. 17.  [REPEALER.] 
           (a) Minnesota Statutes 1995 Supplement, section 16A.125, 
        subdivision 6a, is repealed. 
           (b) Minnesota Rules, parts 4800.8100, 4800.8200, 4800.8300, 
        4800.8400, 4830.6500, 4830.6510, 4830.6520, 4830.6600, 
        4830.6610, 4830.6620, 4830.8510, 4830.8520, 4830.8530, 
        4830.8535, 4830.8540, 4830.8550, 4830.8570, and 4830.8575, are 
        repealed. 
           Sec. 18.  [INSTRUCTION TO REVISOR.] 
           (a) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall delete "community college," "board 
        of community colleges," or related terms; "state university," 
        "board of state universities," or related terms; and "technical 
        college," "board of technical colleges," or related terms and 
        replace them with "Minnesota state colleges and universities," 
        "board of trustees of the Minnesota state colleges and 
        universities," or related terms in the following sections and 
        subdivisions:  3.3005, subdivision 1; 3.732, subdivision 1; 
        3.754; 13.792; 15.44; 16A.127, subdivision 8; 16B.101, 
        subdivision 1; 16B.24, subdivision 2; 16B.30; 16B.31, 
        subdivision 1; 16B.61, subdivision 5; 43A.08, subdivision 1a; 
        116N.02, subdivision 1; 116O.09, subdivision 4; 135A.06, 
        subdivision 1; 138.054, subdivision 2; 216C.13; 256.7365, 
        subdivision 4; 256H.01, subdivision 13; 268.65, subdivision 2; 
        309.515, subdivision 1; and 491A.01, subdivision 6.  
           (b) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall change the term "chancellor of 
        vocational education" to "chancellor of the Minnesota state 
        colleges and universities" in Minnesota Statutes, section 
        268.363. 
           (c) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall change the cross-reference to 
        chapter "136C" to "136F" in Minnesota Statutes, section 326.84, 
        subdivision 3, clause (9). 
           Sec. 19.  [EFFECTIVE DATE.] 
           Sections 3, paragraph (e), 7, 11, 12, 14, 15, and 16 are 
        effective the day after final enactment. 
           Section 17, paragraph (a), is effective June 30, 1997. 
           Presented to the governor March 28, 1996 
           Signed by the governor April 1, 1996, 10:55 a.m.