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Office of the Revisor of Statutes

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                            CHAPTER 398-H.F.No. 2206 
                  An act relating to education; removing mandates from 
                  higher education; requiring increased accountability 
                  and performance for funding; allowing higher education 
                  greater flexibility in conducting its business; 
                  amending Minnesota Statutes 1994, sections 15.43, 
                  subdivisions 2 and 3; 16B.01, subdivision 2; 16B.21, 
                  subdivisions 1 and 3; 16B.33, subdivisions 1, 3, 4, 
                  and by adding a subdivision; 16B.35, by adding a 
                  subdivision; 16B.36, subdivision 1; 16B.37, 
                  subdivision 1; 16B.41, subdivision 2; 16B.482; 16B.49; 
                  16B.531; 16B.54, subdivision 1; 16B.85, subdivision 2; 
                  43A.05, subdivision 4; 43A.10, subdivision 3; 123.70, 
                  subdivision 10; 135A.033; 135A.14, as amended; 137.37; 
                  169.448, subdivision 2; 201.1611; and 248.07, 
                  subdivision 7; Minnesota Statutes 1995 Supplement, 
                  sections 16B.17, subdivision 6; 16B.465, subdivision 
                  4; 43A.06, subdivision 1; 135A.181, subdivision 2; 
                  136A.101, subdivision 10; 136F.06, subdivisions 1 and 
                  2; 136F.12; 136F.16, subdivision 3; 136F.18; 136F.30; 
                  136F.36, subdivision 2; 136F.44; 136F.50; 136F.53, 
                  subdivisions 1 and 3; 136F.58; 136F.71, by adding a 
                  subdivision; 136F.72, subdivision 3; 136F.80, 
                  subdivision 2; and 169.441, subdivision 5; Laws 1995, 
                  chapter 212, article 2, sections 15; and 20, 
                  subdivisions 1 and 2; proposing coding for new law in 
                  Minnesota Statutes, chapters 16B; 135A; 136A; and 
                  136F; repealing Minnesota Statutes 1994, sections 
                  137.03; 137.05; 137.06; 137.07; 137.08; 137.11; 
                  137.14; 137.15; and 137.33; Minnesota Statutes 1995 
                  Supplement, section 136F.59, subdivision 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 15.43, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TEXTBOOKS EXEMPTED.] Textbooks, software, and 
        other course materials authored by an employee of the state's 
        education systems Minnesota state colleges and universities or 
        of the University of Minnesota may be used as required course 
        material upon receipt of written approval from the head of the 
        department.  Instructors in state institutions and at the 
        university may accept free samples of textbooks and related 
        teaching materials.  
           Sec. 2.  Minnesota Statutes 1994, section 15.43, 
        subdivision 3, is amended to read: 
           Subd. 3.  [OTHER EXEMPTIONS.] The commissioners of human 
        services and corrections, and the chancellors of the state 
        university and community college systems may by rule prescribe 
        procedure for the acceptance of gifts from any person or 
        organization, provided that such gifts are accepted by the 
        commissioner or chancellor, or a designated representative of 
        the commissioner or chancellor, and that such gifts are used 
        solely for the direct benefit of patients, or inmates or 
        students under the jurisdiction of the accepting state officer. 
           Sec. 3.  Minnesota Statutes 1994, section 16B.01, 
        subdivision 2, is amended to read: 
           Subd. 2.  [AGENCY.] "Agency" means any state officer, 
        employee, board, commission, authority, department, or other 
        agency of the executive branch of state government.  Unless 
        specifically provided elsewhere in this chapter, agency does not 
        include the Minnesota state colleges and universities. 
           Sec. 4.  Minnesota Statutes 1995 Supplement, section 
        16B.17, subdivision 6, is amended to read: 
           Subd. 6.  [EXCLUSIONS.] This section and section 16B.167 do 
        not apply: 
           (1) to Minnesota state college or university contracts to 
        provide instructional services to public or private 
        organizations, agencies, businesses, or industries; 
           (2) to contracts with individuals or organizations for 
        administration of employee pension plans authorized under 
        chapter 354B or 354C; or 
           (3) to instructional services provided to Minnesota state 
        colleges or universities by organizations or individuals 
        provided the contracts are consistent with terms of applicable 
        labor agreements. 
           Sec. 5.  Minnesota Statutes 1994, section 16B.21, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER OF ADMINISTRATION.] The 
        commissioner shall submit an annual report pursuant to section 
        3.195 to the governor and the legislature with a copy to the 
        commissioner of trade and economic development indicating the 
        progress being made toward the objectives and goals of sections 
        16B.19 to 16B.22, 137.31, 137.35, 161.321, and 473.142 during 
        the preceding fiscal year.  The commissioner shall also submit a 
        quarterly report to the small business and targeted group 
        procurement advisory council.  These reports shall include the 
        following information:  
           (1) the total dollar value and number of potential 
        set-aside awards identified during this period and the 
        percentage of total state procurement this figure reflects; 
           (2) the number of small businesses identified by and 
        responding to the small business procurement program, the total 
        dollar value and number of set-aside and other contracts 
        actually awarded to small businesses, and the total number of 
        small businesses that were awarded set-aside and other 
        contracts; 
           (3) the total dollar value and number of contracts awarded 
        to small targeted group businesses pursuant to each bidding 
        process authorized by sections 16B.19, subdivision 2c, 137.31, 
        137.35, 161.321, and 473.142; the total number and value of 
        these contracts awarded to each small targeted group business 
        and to each type of small targeted group business in each 
        purchasing category, and the percentages of the total 
        procurement for each purchasing category the figures represent; 
           (4) the total dollar value and number of contracts awarded 
        to small businesses in economically disadvantaged areas under 
        the bidding process authorized in section 16B.19, subdivision 
        2d; the total number and value of these contracts awarded to 
        each business, and to all businesses within each economically 
        disadvantaged area in each purchasing category, and the 
        percentages of total procurement for each purchasing category 
        the figures represent. 
           The information required by clauses (1) and (2) must be 
        presented on a statewide basis and also broken down by 
        geographic regions within the state.  
           Sec. 6.  Minnesota Statutes 1994, section 16B.21, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REPORTS FROM OTHER AGENCIES.] The commissioner 
        of transportation, and each metropolitan agency listed in 
        section 473.143, subdivision 1, and the University of Minnesota 
        shall report to the commissioner of administration all 
        information that the commissioner requests to make reports 
        required under this section.  The information must be reported 
        at the time and in the manner requested by the commissioner of 
        administration. 
           Sec. 7.  Minnesota Statutes 1994, section 16B.33, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] As used in this section, the 
        following terms have the meanings given them:  
           (a) "Agency" has the meaning given in section 16B.01, and 
        also includes the University of Minnesota.  
           (b) "Architect" means an architect or landscape architect 
        registered to practice under sections 326.02 to 326.15.  
           (c) "Board" means the state designer selection board.  
           (d) "Designer" means an architect or engineer, or a 
        partnership, association, or corporation comprised primarily of 
        architects or engineers or of both architects and engineers.  
           (e) "Engineer" means an engineer registered to practice 
        under sections 326.02 to 326.15.  
           (f) "Person" includes an individual, corporation, 
        partnership, association, or any other legal entity.  
           (g) "Primary designer" means the designer who is to have 
        primary design responsibility for a project, and does not 
        include designers who are merely consulted by the user agency 
        and do not have substantial design responsibility, or designers 
        who will or may be employed or consulted by the primary designer.
           (h) "Project" means an undertaking to construct, erect, or 
        remodel a building by or for the state or an agency.  
           (i) "User agency" means the agency undertaking a specific 
        project.  
           Sec. 8.  Minnesota Statutes 1994, section 16B.33, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AGENCIES MUST REQUEST DESIGNER.] (a) 
        [APPLICATION.] Upon undertaking a project with an estimated cost 
        greater than $750,000 or a planning project with estimated fees 
        greater than $60,000, every user agency, except the capitol area 
        architectural and planning board, shall submit a written request 
        for a primary designer for its project to the commissioner, who 
        shall forward the request to the board.  The University of 
        Minnesota and the Minnesota state colleges and universities 
        shall follow the process in subdivision 3a to select designers 
        for their projects.  The written request must include a 
        description of the project, the estimated cost of completing the 
        project, a description of any special requirements or unique 
        features of the proposed project, and other information which 
        will assist the board in carrying out its duties and 
        responsibilities set forth in this section.  
           (b) [REACTIVATED PROJECT.] If a project for which a 
        designer has been selected by the board becomes inactive, 
        lapses, or changes as a result of project phasing, insufficient 
        appropriations, or other reasons, the commissioner, the 
        Minnesota state colleges and universities, or the University of 
        Minnesota may, if the project is reactivated, retain the same 
        designer to complete the project.  
           (c) [FEE LIMIT REACHED AFTER DESIGNER SELECTED.] If a 
        project initially estimated to be below the cost and planning 
        fee limits of this subdivision has its cost or planning fees 
        revised so that the limits are exceeded, the project must be 
        referred to the board for designer selection even if a primary 
        designer has already been selected.  In this event, the board 
        may, without conducting interviews, elect to retain the 
        previously selected designer if it determines that the interests 
        of the state are best served by that decision and shall notify 
        the commissioner of its determination.  
           Sec. 9.  Minnesota Statutes 1994, section 16B.33, is 
        amended by adding a subdivision to read: 
           Subd. 3a.  [HIGHER EDUCATION PROJECTS.] (a) When the 
        University of Minnesota or the Minnesota state colleges and 
        universities undertakes a project involving construction or 
        major remodeling, as defined in section 16B.335, subdivision 1, 
        with an estimated cost greater than $2,000,000 or a planning 
        project with estimated fees greater than $200,000, the system 
        shall submit a written request for a primary designer to the 
        commissioner, as provided in subdivision 3. 
           (b) When the University of Minnesota or the Minnesota state 
        colleges and universities undertakes a project involving 
        renovation, repair, replacement, or rehabilitation, the system 
        office may submit a written request for a primary designer to 
        the commissioner as provided in subdivision 3. 
           Sec. 10.  Minnesota Statutes 1994, section 16B.33, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DESIGNER SELECTION PROCESS.] (a) [PUBLICITY.] 
        Upon receipt of a request from a user agency for a primary 
        designer, the board shall publicize the proposed project in 
        order to determine the identity of designers interested in the 
        design work on the project.  The board shall establish criteria 
        for the selection process and make this information public, and 
        shall compile data on and conduct interviews of designers.  The 
        board's selection criteria must include consideration of each 
        interested designer's performance on previous projects for the 
        state or any other person.  Upon completing the process, the 
        board shall select the primary designer and shall state its 
        reasons in writing.  Notification to the commissioner of the 
        selection shall be made not more than 60 days after receipt from 
        a user agency of a request for a primary designer.  The 
        commissioner shall promptly notify the designer and the user 
        agency.  The commissioner shall negotiate the designer's fee and 
        prepare the contract to be entered into between the designer and 
        the user agency.  
           (b) [CONFLICT OF INTEREST.] The board may not select a 
        designer or firm in which a member of the designer selection 
        board has a current financial interest.  
           (c) [SELECTION BY COMMISSIONER.] In the event the board 
        receives a request for a primary designer on a project, the 
        estimated cost of which is less than the limit established by 
        subdivision 3, or a planning project with estimated fees of less 
        than the limit established by subdivision 3, the board may 
        submit the request to the commissioner of administration, with 
        or without recommendations, and the commissioner shall thereupon 
        select the primary designer for the project.  
           (d) [SECOND SELECTION.] If the designer selected for a 
        project declines the appointment or is unable to reach agreement 
        with the commissioner on the fee or the terms of the contract, 
        the commissioner shall, within 60 days after the first 
        appointment, request the board to make another selection.  
           (e) [SIXTY DAYS TO SELECT.] If the board fails to make a 
        selection and forward its recommendation to the commissioner 
        within 60 days of the user agency's request for a designer, the 
        commissioner may appoint a designer to the project without the 
        recommendation of the board.  
           (f) [LESS THAN SATISFACTORY PERFORMANCE.] The commissioner, 
        or the University of Minnesota and the Minnesota state colleges 
        and universities for projects under its their supervision, shall 
        forward to the board a written report describing each instance 
        in which the performance of a designer selected by the board or 
        the commissioner has been less than satisfactory.  Criteria for 
        determining satisfaction include the ability of the designer to 
        complete design work on time, to provide a design responsive to 
        program needs within the constraints of the budget, to solve 
        design problems and achieve a design consistent with the 
        proposed function of the building, to avoid costly design errors 
        or omissions, and to observe the construction work.  These 
        reports are public data and are available for inspection under 
        section 13.03.  
           Sec. 11.  Minnesota Statutes 1994, section 16B.35, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [CAMPUSES.] Art for a building on a public 
        college or university campus shall be selected by the campus, in 
        consultation with the arts board.  Consideration of the artwork 
        of faculty and students on that campus is encouraged. 
           Sec. 12.  Minnesota Statutes 1994, section 16B.36, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [AUTHORITY.] The commissioner may examine, 
        investigate, or make a survey of the organization, 
        administration, and management of state agencies and 
        institutions under their control, and may assist state agencies 
        by providing analytical, statistical, and organizational 
        development services to them in order to secure greater 
        efficiency and economy through reorganization or consolidation 
        of agencies or functions and to eliminate duplication of 
        function, effort, or activity, so far as possible.  The 
        commissioner shall periodically submit to the legislature a list 
        of the studies being conducted for this purpose and any future 
        studies scheduled at the time the list is submitted.  For 
        purposes of this section, the Minnesota state colleges and 
        universities is a state agency. 
           Sec. 13.  Minnesota Statutes 1994, section 16B.37, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COMMISSIONER'S AUTHORITY.] To improve 
        efficiency and avoid duplication, the commissioner may transfer 
        personnel, powers, or duties, or any combination of them, from a 
        state agency to another state agency that has been in existence 
        for at least one year prior to the date of transfer.  A transfer 
        must have received the prior approval of the governor.  The 
        commissioner shall no later than January 15 of each year submit 
        to the legislature a bill making all statutory changes required 
        by reorganization orders issued by the commissioner during the 
        preceding calendar year.  For purposes of this section, the 
        Minnesota state colleges and universities is a state agency. 
           Sec. 14.  Minnesota Statutes 1994, section 16B.41, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RESPONSIBILITIES.] The office has the following 
        duties: 
           (a) The office must develop and establish a state 
        information architecture to ensure that further state agency 
        development and purchase of information systems equipment and 
        software is directed in such a manner that individual agency 
        information systems complement and do not needlessly duplicate 
        or needlessly conflict with the systems of other agencies.  In 
        those instances where state agencies have need for the same or 
        similar computer data, the commissioner shall ensure that the 
        most efficient and cost-effective method of producing and 
        storing data for or sharing data between those agencies is 
        used.  The development of this information architecture must 
        include the establishment of standards and guidelines to be 
        followed by state agencies.  On January 1, 1988, and every six 
        months thereafter, any state agency that has purchased 
        information systems equipment or software in the past six 
        months, or that is contemplating purchasing this equipment or 
        software in the next six months, must report to the office and 
        to the chairs of the house ways and means committee and the 
        senate finance committee on how the purchases or proposed 
        purchases comply with the applicable standards and guidelines.  
           (b) The office shall assist state agencies in the planning 
        and management of information systems so that an individual 
        information system reflects and supports the state agency's and 
        the state's mission, requirements, and functions.  
           (c) The office must review and approve all agency requests 
        for legislative appropriations for the development or purchase 
        of information systems equipment or software.  Requests may not 
        be included in the governor's budget submitted to the 
        legislature, unless the office has approved the request. 
           (d) Each biennium the office must rate agency requests for 
        new appropriations for development or purchase of information 
        systems equipment or software based on established information 
        management criteria.  The office must submit this rating to the 
        legislature at the same time, or no later than 14 days after, 
        the governor submits the budget message to the legislature.  The 
        governor must provide information necessary to rate agency 
        requests to the office. 
           (e) The office must define, review, and approve major 
        purchases of information systems equipment to (1) ensure that 
        the equipment follows the standards and guidelines of the state 
        information architecture; (2) ensure that the equipment is 
        consistent with the information management principles adopted by 
        the information policy council; (3) evaluate whether or not the 
        agency's proposed purchase reflects a cost-effective policy 
        regarding volume purchasing; and (4) ensure the equipment is 
        consistent with other systems in other state agencies so that 
        data can be shared among agencies, unless the office determines 
        that the agency purchasing the equipment has special needs 
        justifying the inconsistency.  The commissioner of finance may 
        not allot funds appropriated for major purchases of information 
        systems equipment until the office reviews and approves the 
        proposed purchase.  A public institution of higher education 
        must not may purchase interconnective up to $250,000 of 
        equipment or other computer technology to connect the college or 
        university to sites outside the institution without the prior 
        approval of the office.  
           (f) The office shall review the operation of information 
        systems by state agencies and provide advice and assistance so 
        that these systems are operated efficiently and continually meet 
        the standards and guidelines established by the office.  These 
        standards and guidelines shall emphasize uniformity that 
        encourages information interchange, open systems environments, 
        and portability of information whenever practicable and 
        consistent with an agency's authority and the Minnesota 
        government data practices act.  The office, in consultation with 
        the intergovernmental information systems advisory council and 
        the legislative reference library, shall adopt specific 
        standards and guidelines to be met by each state agency within a 
        time period fixed by the office in regard to the following: 
           (1) establishment of methodologies and systems directed at 
        reducing and ultimately eliminating redundant storage of data 
        and encouraging greater use of central databases; 
           (2) establishment of data retention schedules, disaster 
        recovery plans and systems, security systems, and procedural 
        safeguards concerning privacy of data; 
           (3) establishment of pricing policies and incentives that 
        encourage electronic transfer of information in electronic 
        forms, while giving due consideration to the value and cost of 
        providing the information in those forms.  These pricing 
        policies may include preferential prices for information 
        requested by a public entity for a public purpose; and 
           (4) establishment of information sales systems that utilize 
        licensing and royalty agreements to the greatest extent 
        possible, together with procedures for agency denial of requests 
        for licenses or royalty agreements by commercial users or 
        resellers of the information.  Section 3.751 does not apply to 
        these licensing and royalty agreements and the agreements must 
        include provisions that section 3.751 does not apply and that 
        the state is immune from liability under the agreement. 
           If an agency needs additional funds to comply with the 
        requirements of this paragraph, the agency must first obtain 
        approval of the proposal by the office as required by paragraph 
        (c) before submitting it to the legislature. 
           (g) The office must conduct a comprehensive review at least 
        every three years of the information systems investments that 
        have been made by state agencies and higher education 
        institutions.  The review must include recommendations on any 
        information systems applications that could be provided in a 
        more cost beneficial manner by an outside source.  The office 
        must report the results of its review to the legislature and the 
        governor.  
           (h) The office shall recommend to the legislature any 
        statutory changes that are necessary or desirable to accomplish 
        the duties described in this subdivision. 
           (i) The office must report to the legislature by January 15 
        each year on progress in implementing paragraph (f), clauses (1) 
        to (4). 
           Sec. 15.  Minnesota Statutes 1995 Supplement, section 
        16B.465, subdivision 4, is amended to read: 
           Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
        require the participation of state agencies, the state board of 
        education, and the governing boards board of trustees of the 
        Minnesota state colleges and universities, the community 
        colleges, and the technical colleges, and may request the 
        participation of the board of regents of the University of 
        Minnesota, in the planning and implementation of the network to 
        provide interconnective technologies.  The commissioner shall 
        establish reimbursement rates in cooperation with the 
        commissioner of finance to be billed to participating agencies 
        and educational institutions sufficient to cover the operating, 
        maintenance, and administrative costs of the system. 
           (b) A direct appropriation made to an educational 
        institution for usage costs associated with the STARS network 
        must only be used by the educational institution for payment of 
        usage costs of the network as billed by the commissioner of 
        administration.  The post-secondary appropriations may be 
        shifted between systems as required by unanticipated usage 
        patterns.  An intersystem transfer must be requested by the 
        appropriate system and may be made only after review and 
        approval by the commissioner of finance, in consultation with 
        the commissioner of administration. 
           Sec. 16.  Minnesota Statutes 1994, section 16B.482, is 
        amended to read: 
           16B.482 [REIMBURSEMENT FOR MATERIALS AND SERVICES.] 
           The commissioner of administration may provide materials 
        and services under this chapter to state legislative and 
        judicial branch agencies, political subdivisions, the Minnesota 
        state colleges and universities, the University of Minnesota, 
        and federal government agencies.  Legislative and judicial 
        branch agencies, political subdivisions, the Minnesota state 
        colleges and universities, the University of Minnesota, and 
        federal government agencies purchasing materials and services 
        from the commissioner of administration shall reimburse the 
        general services, intertechnologies, and cooperative purchasing 
        revolving funds for cost. 
           Sec. 17.  [16B.4821] [PROVISION OF MATERIALS AND SERVICES 
        TO MNSCU.] 
           Subdivision 1.  [MATERIALS AND SERVICES 
        AVAILABLE.] Notwithstanding any law to the contrary, the 
        Minnesota state colleges and universities may request from the 
        commissioner of administration any services and materials 
        available to any state agency under this chapter, including but 
        not limited to purchasing, contracting, leasing, energy 
        conservation, communications systems, construction, and all 
        other programs and contracts administered by the department of 
        administration, whether administered directly or indirectly by 
        contract or otherwise.  The commissioner of administration shall 
        make reasonable efforts to comply with any such request.  The 
        chancellor of the Minnesota state colleges and universities and 
        the commissioner of administration shall cooperate to identify 
        services and materials available to state agencies from the 
        department of administration. 
           Subd. 2.  [STATUS REQUESTED BY CHANCELLOR.] The Minnesota 
        state colleges and universities shall be a state agency where 
        being a state agency is a prerequisite to obtaining or 
        participating in any services, materials acquisition, or 
        programs under this chapter which are requested by the 
        chancellor. 
           Subd. 3.  [NOTIFICATION.] The Minnesota state colleges and 
        universities shall be a state agency for purposes of being 
        included on any state agency's list to receive notices and 
        information appropriate to the purposes of the Minnesota state 
        colleges and universities. 
           Sec. 18.  Minnesota Statutes 1994, section 16B.49, is 
        amended to read: 
           16B.49 [CENTRAL MAILING SYSTEM.] 
           The commissioner shall maintain and operate for agencies a 
        central mailing system.  Official mail of an agency occupying 
        quarters within the boundaries of the city of St. Paul must be 
        delivered unstamped to the central mailing station.  Account 
        must be kept of the postage required on that mail, which is then 
        a proper charge against the agency delivering the mail.  To 
        provide funds for the payment of postage, each agency shall make 
        advance payments to the commissioner sufficient to cover its 
        postage obligations for at least 60 days.  For purposes of this 
        section, the Minnesota state colleges and universities is a 
        state agency. 
           Sec. 19.  Minnesota Statutes 1994, section 16B.531, is 
        amended to read: 
           16B.531 [TRAVEL SERVICES.] 
           The commissioner may offer a centralized travel service to 
        all state departments and agencies, and to the Minnesota state 
        colleges and universities, and may, in connection with that 
        service, accept payments from travel agencies under contracts 
        for the provision of travel services.  The payments must be 
        deposited in the motor pool revolving account established by 
        section 16B.54, subdivision 8, and must be used for the expenses 
        of managing the centralized travel service.  Revenues in excess 
        of the management costs of the centralized service must be 
        returned to the general fund. 
           Sec. 20.  Minnesota Statutes 1994, section 16B.54, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MOTOR POOLS.] The commissioner shall 
        manage a central motor pool of passenger motor vehicles and 
        trucks used by state agencies with principal offices in the city 
        of St. Paul and may provide for branch central motor pools at 
        other places within the state.  For purposes of this section, (1)
        "agencies" includes the Minnesota state colleges and 
        universities, and (2) "truck" means a pickup or panel truck up 
        to one ton carrying capacity.  
           Sec. 21.  Minnesota Statutes 1994, section 16B.85, 
        subdivision 2, is amended to read: 
           Subd. 2.  [RISK MANAGEMENT FUND.] (a) All state agencies, 
        and the Minnesota state colleges and universities, may, in 
        cooperation with the commissioner, participate in insurance 
        programs and other funding alternative programs provided by the 
        risk management fund. 
           (b) When an agency or agencies enter into an insurance or 
        self-insurance program, each agency shall contribute the 
        appropriate share of its costs as determined by the commissioner.
           (c) The money in the fund to pay claims arising from state 
        activities and for administrative costs, including costs for the 
        adjustment and defense of the claims, is appropriated to the 
        commissioner. 
           (d) Interest earned from the investment of money in the 
        fund shall be credited to the fund and be available to the 
        commissioner for the expenditures authorized in this subdivision.
           (e) The fund is exempt from the provisions of section 
        16A.152, subdivision 4.  In the event that proceeds in the fund 
        are insufficient to pay outstanding claims and associated 
        administrative costs, the commissioner, in consultation with the 
        commissioner of finance, may assess state agencies participating 
        in the fund amounts sufficient to pay the costs.  The 
        commissioner shall determine the proportionate share of the 
        assessment of each agency. 
           Sec. 22.  Minnesota Statutes 1994, section 43A.05, 
        subdivision 4, is amended to read: 
           Subd. 4.  [TIME OFF IN EMERGENCIES.] The commissioner shall 
        authorize appointing authorities to pay for time off in 
        emergencies.  The commissioner, after consultation with the 
        commissioner of public safety, may excuse employees from duty 
        with full pay in the event of a natural or other emergency, if 
        continued operation would involve a threat to the health or 
        safety of individuals.  Absence with pay shall not exceed 16 
        working hours at any one time unless the commissioner authorizes 
        a longer duration.  Authority to excuse employees from duty with 
        full pay on the campuses of the Minnesota state colleges and 
        universities is vested in the college and university presidents, 
        under guidelines established by the board of trustees of the 
        Minnesota state colleges and universities. 
           Sec. 23.  Minnesota Statutes 1995 Supplement, 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 board 
        of trustees of the Minnesota state colleges and universities may 
        exercise the powers under this section for employees included in 
        units 9, 10, 11, and 12 in section 179A.10, subdivision 2.  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 board of trustees of the Minnesota state 
        colleges and universities.  The commissioner of employee 
        relations shall have the right to review and comment to the 
        Minnesota state colleges and universities on the board's final 
        proposals prior to exchange of final positions with the 
        designated bargaining units as well as any requests for interest 
        arbitration.  When submitting a proposed collective bargaining 
        agreement to the legislative coordinating commission and the 
        legislature under section 3.855, subdivision 2, the board of 
        trustees must use procedures and assumptions consistent with 
        those used by the commissioner of employee relations in 
        calculating the costs of the proposed contract.  
           Sec. 24.  Minnesota Statutes 1994, section 43A.10, 
        subdivision 3, is amended to read: 
           Subd. 3.  [FACILITIES FURNISHED EXAMINERS.] The authorities 
        having control of public buildings in political subdivisions of 
        the state and school districts, upon written request of the 
        commissioner, shall furnish without charge convenient facilities 
        for the administration of examinations.  Upon such request, it 
        shall be the duty of state and local authorities and employees, 
        as it is consistent with their other duties, to aid in carrying 
        out the provisions of this section.  Campuses of the Minnesota 
        state colleges and universities may charge the commissioner for 
        actual costs incurred in providing facilities for examinations, 
        provided that the costs were incurred due solely to the 
        examination. 
           Sec. 25.  Minnesota Statutes 1994, section 123.70, 
        subdivision 10, is amended to read: 
           Subd. 10.  A statement required to be submitted under 
        subdivisions 1, 2, and 4 to document evidence of immunization 
        shall include month, day, and year for immunizations 
        administered after January 1, 1990.  
           (a) For persons enrolled in grades 7 and 12 during the 
        1992-1993 1996-1997 school term, the statement must indicate 
        that the person has received at least two doses of vaccine 
        against measles, mumps, and rubella, given alone or separately 
        and given not less that one month apart a dose of tetanus and 
        diphtheria toxoid no earlier than 11 years of age.  
           (b) For persons enrolled in grades 7, 8, and 12 during the 
        1993-1994 1997-1998 school term, the statement must indicate 
        that the person has received at least two doses of vaccine 
        against measles, mumps, and rubella, given alone or separately 
        and given not less than one month apart a dose of tetanus and 
        diphtheria toxoid no earlier than 11 years of age.  
           (c) For persons enrolled in grades 7, 8, 9, and 12 during 
        the 1994-1995 1998-1999 school term, the statement must indicate 
        that the person has received at least two doses of vaccine 
        against measles, mumps, and rubella, given alone or separately 
        and given not less than one month apart a dose of tetanus and 
        diphtheria toxoid no earlier than 11 years of age.  
           (d) For persons enrolled in grades 7, 8, 9, 10, and 12 
        during the 1995-1996 1999-2000 school term, the statement must 
        indicate that the person has received at least two doses of 
        vaccine against measles, mumps, and rubella, given alone or 
        separately and given not less than one month apart a dose of 
        tetanus and diphtheria toxoid no earlier than 11 years of age.  
           (e) For persons enrolled in grades 7 through 12 during the 
        2000-2001 school term and for each year thereafter, the 
        statement must indicate that the person has received a dose of 
        tetanus and diphtheria toxoid no earlier than 11 years of age. 
           (f) For persons enrolled in grades 7 through 12 during the 
        1996-1997 school year and for each year thereafter, the 
        statement must indicate that the person has received at least 
        two doses of vaccine against measles, mumps, and rubella, given 
        alone or separately and given not less than one month apart. 
           Sec. 26.  Minnesota Statutes 1994, section 135A.033, is 
        amended to read: 
           135A.033 [PERFORMANCE FUNDING.] 
           The governing boards of the University of Minnesota, the 
        state universities, the community colleges, and the technical 
        colleges and the Minnesota state colleges and universities, in 
        conjunction with their respective campuses, shall each specify 
        performance categories and indicators relating to section 
        135A.053, subdivision 1, 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. 27.  [135A.053] [STATE HIGHER EDUCATION POLICY.] 
           Subdivision 1.  [STATEWIDE OBJECTIVES.] Minnesota's higher 
        education investment is made in pursuit of the following 
        objectives: 
           (1) to ensure quality - to provide a level of excellence 
        that is competitive on a national and international level, 
        through high quality teaching, scholarship, and learning in a 
        broad range of arts and sciences, technical education, and 
        professional fields; 
           (2) to foster student success - to enable and encourage 
        students to choose institutions and programs that are best 
        suited for their talents and abilities, and to provide an 
        educational climate that supports students in pursuing their 
        goals and aspirations; 
           (3) to promote democratic values - to enhance Minnesota's 
        quality of life by developing understanding and appreciation of 
        a free and diverse society; 
           (4) to maintain access - to provide an opportunity for all 
        Minnesotans, regardless of personal circumstances, to 
        participate in higher education; and 
           (5) to enhance the economy - to assist the state in being 
        competitive in the world market, and to prepare a highly skilled 
        and adaptable workforce that meets Minnesota's opportunities and 
        needs. 
           Subd. 2.  [PERFORMANCE AND ACCOUNTABILITY.] Higher 
        education systems and campuses are expected to achieve the 
        objectives in subdivision 1 and will be held accountable for 
        doing so.  The legislature is increasing the flexibility of the 
        systems and campuses to provide greater responsibility to higher 
        education in deciding how to achieve statewide objectives, and 
        to decentralize authority so that those decisions can be made at 
        the level where the education is delivered.  To demonstrate 
        their accountability, the legislature expects each system and 
        campus to measure and report on its performance, using 
        meaningful indicators that are critical to achieving the 
        objectives in subdivision 1, as provided in section 135A.033.  
        Nothing in this section precludes a system or campus from 
        determining its own objectives and performance measures beyond 
        those identified in this section.  
           Sec. 28.  Minnesota Statutes 1994, section 135A.14, as 
        amended by Laws 1995, chapter 212, article 3, section 59, and 
        Laws 1995, First Special Session chapter 3, article 16, section 
        13, is amended to read: 
           135A.14 [STATEMENT OF IMMUNIZATION OF POST-SECONDARY 
        STUDENTS.] 
           Subdivision 1.  [DEFINITIONS.] As used in this section, the 
        following terms have the meanings given them.  
           (a) "Administrator" means the administrator of the 
        institution or other person with general control and supervision 
        of the institution. 
           (b) "Public or private post-secondary educational 
        institution" or "institution" means any of the following 
        institutions having an enrollment of more than 100 persons 
        during any quarter, term, or semester during the preceding 
        year:  (1) the University of Minnesota; (2) the state 
        universities; (3) the state community colleges; (4) public 
        technical colleges; (5) private four-year, professional and 
        graduate institutions; (6) private two-year colleges; and (7) 
        schools subject to either chapter 141, sections 136A.61 to 
        136A.71, or schools exempt under section 136A.657, and which 
        offer educational programs within the state for an academic year 
        greater than six consecutive months.  An institution's report to 
        the Minnesota higher education services office or the Minnesota 
        department of children, families, and learning may be considered 
        when determining enrollment. 
           (c) "Student" means a person born after 1956 who did not 
        graduate from a Minnesota high school in 1997 or later, and who 
        is (1) registering for more than one class during a full 
        academic term, such as a quarter or a semester; or (2) housed on 
        campus and is registering for one or more classes.  Student does 
        not include persons enrolled in extension classes only or 
        correspondence classes only. 
           Subd. 2.  [STATEMENT OF IMMUNIZATION REQUIRED.] Except as 
        provided in subdivision 3, no student may remain enrolled in a 
        public or private post-secondary educational institution unless 
        the student has submitted to the administrator a statement that 
        the student has received appropriate immunization against 
        measles, rubella, and mumps after having attained the age of 12 
        months, and against diphtheria and tetanus within ten years of 
        first registration at the institution.  This statement must 
        indicate the month and year of each immunization given.  Instead 
        of submitting a statement, a student may provide an immunization 
        record maintained by a school according to section 123.70, 
        subdivision 7, or a school in another state if the required 
        information is contained in the record.  A student who has 
        submitted a statement as provided in this subdivision may 
        transfer to a different Minnesota institution without submitting 
        another statement if the student's transcript or other official 
        documentation indicates that the statement was submitted. 
           Subd. 3.  [EXEMPTIONS FROM IMMUNIZATION.] (a) An 
        immunization listed in subdivision 2 is not required if the 
        student submits to the administrator a statement signed by a 
        physician that shows:  
           (1) that, for medical reasons, the student did not receive 
        an immunization; 
           (2) that the student has experienced the natural disease 
        against which the immunization protects; or 
           (3) that a laboratory has confirmed the presence of 
        adequate immunity. 
           (b) If the student submits a notarized statement that the 
        student has not been immunized as required in subdivision 2 
        because of the student's conscientiously held beliefs, the 
        immunizations described in subdivision 2 are not required.  The 
        institution shall forward this statement to the commissioner of 
        health.  
           Subd. 4.  [IMMUNIZATION FILES REQUIRED.] The institution 
        must maintain an immunization record within the student's file 
        for all students each student governed by this section for at 
        least one year from the time of original filing.  The 
        immunization records may be inspected by the department of 
        health and the local board of health in whose jurisdiction the 
        institution is located.  
           Subd. 5.  [DEADLINE FOR SUBMITTING STATEMENT.] The 
        institution shall require that the statement from the student, 
        as required within subdivision 2 or 3, be submitted within 45 
        days of commencement of the academic term for which the student 
        has registered. 
           Sec. 29.  Minnesota Statutes 1995 Supplement, section 
        135A.181, subdivision 2, is amended to read: 
           Subd. 2.  [COMMON CALENDAR.] In converting to the semester 
        system required in subdivision 1 shall be offered on a common 
        calendar throughout all, the campuses under the jurisdiction of 
        the board of trustees of the Minnesota state colleges and 
        universities.  This calendar, in consultation with the system 
        office, shall set calendars that best meet the needs of 
        students, including those jointly enrolled in local school 
        districts and other cooperative programs.  Common calendars 
        shall include be a priority at colocated campuses including a 
        common start and end date for each semester as well as common 
        summer school schedules.  The board of trustees may exempt a 
        campus from this calendar if they determine that because of 
        extenuating circumstances an alternative calendar would better 
        serve students' needs. 
           Sec. 30.  Minnesota Statutes 1995 Supplement, section 
        136A.101, subdivision 10, is amended to read: 
           Subd. 10.  "Satisfactory academic progress" means that: 
           (1) at a point between by the end of a student's first and 
        second academic year of attendance at an institution, the 
        student has at least a cumulative grade point average of C or 
        its equivalent, or academic standing consistent with the 
        institution's graduation requirements; and 
           (2) by the end of the first term of the third and fourth 
        academic year of attendance, (i) the student has a cumulative 
        grade point average of at least a C or its equivalent, (ii) the 
        student's advisor certifies that the student has reviewed the 
        general education requirements necessary for graduation and is 
        making satisfactory progress toward completing them, and (iii) 
        the student's advisor certifies that the student has chosen a 
        major and reviewed the requirements necessary for completion of 
        the major. 
           Sec. 31.  [136A.1312] [FINANCIAL AID ADMINISTRATOR, 
        PROFESSIONAL JUDGMENT.] 
           Nothing in this chapter or in the office's rules shall be 
        interpreted as limiting the ability of student financial aid 
        administrators, on the basis of adequate documentation, to make 
        necessary adjustments to the cost of attendance and expected 
        family contribution computations to allow for treatment of 
        individual students with special circumstances, with the 
        exception of the cost of attendance defined under section 
        136A.121, subdivision 6.  In addition, nothing in this chapter 
        or in the office's rules shall be interpreted as limiting the 
        ability of the student financial aid administrator to use 
        supplementary information about the financial status of eligible 
        applicants with special circumstances in selecting recipients of 
        state financial aid and determining the amount of awards.  
        Nothing in this section precludes a financial aid administrator 
        from establishing an appeals process for other extenuating 
        circumstances. 
           Sec. 32.  [136A.1313] [FINANCIAL AID AUDITS.] 
           Beginning with audits for fiscal year 1996, in place of the 
        audits provided by the office, public institutions that 
        administer state grants under decentralized delivery may arrange 
        for audits of state financial aid awards and tuition reciprocity 
        recipients in conjunction with their audits for federal 
        financial aid.  Audits must be conducted in compliance with 
        guidelines and materials prepared by the office.  The office 
        shall develop a review process including procedures for 
        responding to audit exceptions.  All other institutions under 
        decentralized delivery may arrange for audits under this section 
        beginning with audits for fiscal year 1997. 
           Sec. 33.  Minnesota Statutes 1995 Supplement, section 
        136F.06, subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
        possess all powers necessary to govern the state colleges and 
        universities and all related property.  Those powers shall 
        include, but are not limited to, those enumerated in this 
        section.  The board shall prescribe courses of study and 
        conditions of admission, set tuition and fees, prescribe approve 
        programs of study and requirements for completion of programs, 
        approve the awarding of appropriate certificates, diplomas, and 
        degrees, enter into contracts and other agreements, and adopt 
        suitable policies for the institutions it governs.  To the 
        extent practicable in protecting statewide interests, the board 
        shall provide autonomy to the campuses while holding them 
        accountable for their decisions.  Sections 14.01 to 14.47 do not 
        apply to policies and procedures of the board. 
           Sec. 34.  Minnesota Statutes 1995 Supplement, section 
        136F.06, subdivision 2, is amended to read: 
           Subd. 2.  [GOVERNANCE AUTHORITY.] The board shall have the 
        authority needed to operate and govern the state colleges and 
        universities unless otherwise directed or limited prohibited by 
        law.  The board is responsible for its operations and necessary 
        decisions unless these are specifically delegated by law to a 
        state department or agency. 
           Sec. 35.  Minnesota Statutes 1995 Supplement, section 
        136F.12, is amended to read: 
           136F.12 [FOND DU LAC CAMPUS.] 
           The Fond du Lac campus has a unique mission among two-year 
        colleges to serve the lower division general education needs in 
        Carlton and south St. Louis counties, and the education needs of 
        American Indians throughout the state and especially in northern 
        Minnesota.  Accordingly, while the college is governed by the 
        board of trustees, its governance is accomplished in conjunction 
        with the board of directors of Fond du Lac tribal college.  By 
        July 1, 1995, the board of trustees and the board of directors 
        of Fond du Lac tribal college shall implement the mechanisms 
        necessary to accomplish the sharing of authority while ensuring 
        accountability for college actions.  The mechanisms shall 
        supersede any previous arrangement, agreement, or memorandum of 
        understanding. 
           Sec. 36.  Minnesota Statutes 1995 Supplement, section 
        136F.16, subdivision 3, is amended to read: 
           Subd. 3.  [OFF-CAMPUS SITES.] The board shall not establish 
        off-campus centers or other permanent sites to provide academic 
        programs, courses, or student services without authorizing 
        legislation.  For the purposes of this subdivision, the campus 
        of Metropolitan State University is the seven-county 
        metropolitan area.  This section does not apply to sites set up 
        specifically for the delivery of courses and programs through 
        telecommunications.  
           Sec. 37.  Minnesota Statutes 1995 Supplement, section 
        136F.18, is amended to read: 
           136F.18 [CAMPUS CLOSING.] 
           The board may close a campus or center under its 
        jurisdiction according to policies adopted by the board.  Prior 
        to closing a campus or center, the board shall hold a public 
        hearing on the issue in the area which would be affected by the 
        closing.  At the hearing affected persons shall have an 
        opportunity to present testimony.  The board shall give notice 
        of this hearing by publishing notice in the State Register and 
        in a newspaper of general circulation in the affected area at 
        least 30 days before the scheduled hearing. 
           Sec. 38.  Minnesota Statutes 1995 Supplement, section 
        136F.30, is amended to read: 
           136F.30 [COURSES AND PROGRAMS.] 
           The board shall prescribe the courses review and approve or 
        disapprove campus proposals for adding, deleting, or 
        substantially changing programs of study, including graduate and 
        undergraduate academic programs, training in professional, 
        semiprofessional, and technical fields, and adult education.  
        The board shall avoid duplicate program offerings.  The board 
        may initiate activities to close programs.  The board shall 
        place a high priority on ensuring the transferability of credit. 
           Sec. 39.  Minnesota Statutes 1995 Supplement, section 
        136F.36, subdivision 2, is amended to read: 
           Subd. 2.  [EXEMPTIONS.] The sale requirements of chapters 
        92 and 94 do not apply to this section, nor do the leasing 
        provisions of section 16B.24, nor do the construction 
        supervision and control provisions of sections 16B.30 to 
        16B.335.  The board shall develop policies for leasing 
        requirements and construction supervision.  The board will 
        normally competitively bid contracts related to instructional 
        construction but, notwithstanding the provisions of sections 
        16B.07 to 16B.09, may negotiate contracts without competitive 
        bidding where it deems appropriate. 
           Sec. 40.  [136F.42] [PERSONNEL MANAGEMENT.] 
           Subdivision 1.  [TIME REPORTING.] As provided in executive 
        order 96-2, the board, in consultation with the commissioners of 
        employee relations and finance, may develop policies to allow 
        system office or campus employees on salaries, as defined in 
        section 43A.17, subdivision 1, to use negative time reporting in 
        which employees report only that time for which leave is taken.  
        By the end of the 1997 fiscal year, the board, in consultation 
        with the commissioners of employee relations and finance, shall 
        evaluate the use of negative time reporting and its potential 
        for use with other state employees. 
           Subd. 2.  [TRAVEL POLICIES.] The board may adopt policies 
        for colleges and universities to approve and administer travel 
        arrangements, other than reimbursement, for employees on campus, 
        and for the system office to provide the same services for 
        employees in that office. 
           Sec. 41.  Minnesota Statutes 1995 Supplement, section 
        136F.44, is amended to read: 
           136F.44 [ADMINISTRATIVE INTERACTION WITH STUDENTS.] 
           Subdivision 1.  [SYSTEM AND CAMPUS ADMINISTRATORS.] As part 
        of their annual goal setting activity, all unrepresented system 
        and campus academic administrators employed in their positions 
        before July 1, 1995, shall have the expectation of are 
        encouraged to substantially increasing increase their 
        interaction with students through activities such as teaching a 
        regularly scheduled course or serving as an academic 
        advisor.  Contracts for persons initially employed in 
        unclassified administrative positions on or after July 1, 1995, 
        shall include requirements for activities involving student 
        contact.  Actions to increase the interaction of students and 
        administrators under this section shall not displace permanent 
        faculty or staff. 
           Subd. 2.  [EVALUATION INFORMATION.] Each state university, 
        community college, and technical college campus shall provide an 
        evaluation of this activity to the board, and The board shall 
        include a summary of campus and system activities related to 
        subdivision 1 in its 1998-1999 biennial budget request.  
           Sec. 42.  Minnesota Statutes 1995 Supplement, section 
        136F.50, is amended to read: 
           136F.50 [COOPERATION OR PROMOTION OF A STATE COLLEGE OR 
        UNIVERSITY.] 
           The board, system office, and the campuses may cooperate by 
        contractual arrangement or otherwise with responsible persons, 
        firms, corporations, associations, or governmental agencies to 
        promote short courses, research, and other programs and 
        activities in the state colleges and universities as in the 
        judgment of the board, system office, or the campus contribute 
        to the development of the state colleges and universities and 
        the welfare of their students. 
           Sec. 43.  [136F.526] [AUDITS.] 
           Each college and university shall be audited as provided by 
        board policy.  The policy shall be designed to ensure financial 
        integrity, necessary internal controls, and appropriate 
        accordance between board policies and campus expenditures.  The 
        college or university may arrange for any additional audits it 
        desires by contracting with the legislative auditor or a private 
        certified public accountant.  Nothing in this section shall 
        limit the authority of the legislative auditor to perform 
        selected scope audits or other duties of the office as provided 
        under section 3.971. 
           Sec. 44.  Minnesota Statutes 1995 Supplement, section 
        136F.53, subdivision 1, is amended to read: 
           Subdivision 1.  [BOARD POWER CAMPUS PARKING AUTHORITY.] 
        Notwithstanding section 169.966, the board may authorize a state 
        college or university to may adopt and enforce policies, 
        regulations, or ordinances for the regulation of traffic and 
        parking in parking facilities and on private roads and roadways 
        situated on property owned, leased, occupied, or operated by the 
        state college or university. 
           Sec. 45.  Minnesota Statutes 1995 Supplement, section 
        136F.53, subdivision 3, is amended to read: 
           Subd. 3.  [DISPUTES.] A state college or university, with 
        the approval of the board, shall establish procedures to resolve 
        a dispute arising from enforcement of a policy. 
           Sec. 46.  Minnesota Statutes 1995 Supplement, section 
        136F.58, is amended to read: 
           136F.58 [BOOKSTORES.] 
           The board may permit A state college or university to 
        conduct may operate a bookstore in a state college or university 
        building, or may allocate space in a state college or university 
        building and permit a person or corporation to conduct operate a 
        bookstore therein without rent at the board's campus' pleasure 
        and on such conditions as the board may impose.  The board may 
        provide insurance, at no cost to the state, for the inventory of 
        a bookstore a state college or university conducts in its 
        building. 
           Sec. 47.  [136F.581] [PURCHASES AND CONTRACTS.] 
           Subdivision 1.  [CONDITIONS.] The board and the colleges 
        and universities are subject to the provisions of section 
        471.345. 
           Subd. 2.  [POLICIES AND PROCEDURES.] The board shall 
        develop policies, and each college and university shall develop 
        procedures, for purchases and contracts that are consistent with 
        subdivision 1.  In addition, each college and university, in 
        consultation with the system office, shall develop procedures 
        for those purchases and contracts that can be accomplished by a 
        college and university without board approval.  The board 
        policies must allow each college and university the local 
        authority to enter into contracts for construction projects of 
        up to $250,000 and to make other purchases of up to $50,000, 
        without receiving board approval.  The board may allow a college 
        or university local authority to make purchases over $50,000 
        without receiving board approval. 
           Subd. 3.  [PROCUREMENT FROM DESIGNATED BUSINESSES.] The 
        policies and procedures must include provisions for procurement, 
        including construction, from small targeted group businesses and 
        businesses from economically disadvantaged areas designated 
        under section 16B.19.  The board, colleges, and universities 
        shall use the methods contained in section 471.345, subdivision 
        8, for such purchasing, or may develop additional methods in 
        which the cost percentage preferences are consistent with the 
        provision of section 16B.19, subdivision 2c and 2d, or 
        consistent with the provisions of the University of Minnesota's 
        targeted group business purchasing program. 
           Subd. 4.  [PROFESSIONAL OR TECHNICAL SERVICES.] (a) The 
        board shall develop policies for entering into contracts for 
        professional or technical services, other than instructional 
        services.  The policies must allow each college and university 
        the authority to enter into contracts for professional or 
        technical services up to $15,000 without board approval.  The 
        board may allow a college or university authority to enter into 
        contracts for professional or technical services over $15,000 
        without receiving board approval. 
           (b) Each college and university, in consultation with the 
        system office, shall develop procedures to enter into contracts 
        for professional or technical services. 
           (c) The policies and procedures developed by the board and 
        by each college and university for professional or technical 
        service contracts must be done in consultation with employees 
        and their exclusive bargaining representatives and must address 
        topics such as employee protections, information availability 
        and reporting, conflict of interest, and renewal restrictions. 
           Sec. 48.  [136F.582] [LOCAL CONTRACTING AUTHORITY.] 
           College and university presidents may enter into contracts 
        to provide customized training or for short-term leases of 
        instructional space or equipment without additional 
        authorization. 
           Sec. 49.  [136F.61] [STATE BUILDING CODE.] 
           All Minnesota state college and university facilities are 
        subject to the provisions of the state building code under 
        chapter 16B and the Uniform Fire Code under chapter 299F. 
           Sec. 50.  [136F.67] [FINANCING OF CHILD CARE; PARKING.] 
           Subdivision 1.  [AUTHORIZATION.] A technical college or a 
        community college must not seek financing for child care 
        facilities or parking facilities through the higher education 
        facilities authority, as provided in section 136A.28, 
        subdivision 7, without the explicit authorization of the board. 
           Subd. 2.  [PARKING.] State appropriations for repair or 
        construction of parking facilities must not be used for more 
        than two-thirds of the repair or construction cost of a parking 
        facility at any technical college or community college campus.  
        The campus must provide the remaining costs through local 
        revenue. 
           Sec. 51.  Minnesota Statutes 1995 Supplement, section 
        136F.71, is amended by adding a subdivision to read: 
           Subd. 3.  [INTEREST INCOME.] Beginning July 1, 1997, 
        interest income attributable to general fund dedicated receipts 
        of the board is appropriated to the board.  The board shall 
        allocate the income proportionately among the colleges and 
        universities.  The board shall report this income separately in 
        its biennial budget requests. 
           Sec. 52.  Minnesota Statutes 1995 Supplement, section 
        136F.72, subdivision 3, is amended to read: 
           Subd. 3.  [ADMINISTRATION.] The board Each college and 
        university, independent of other authority and notwithstanding 
        chapters 16A and 16B, shall administer the money collected for 
        the state colleges and universities its activity funds and the 
        administrative fund.  The board, independent of other authority 
        and notwithstanding chapters 16A and 16B, shall administer the 
        administrative fund established in the system office.  All 
        activity fund money collected shall be administered under the 
        policies of the board subject to audit of the legislative 
        auditor.  
           Sec. 53.  Minnesota Statutes 1995 Supplement, section 
        136F.80, subdivision 2, is amended to read: 
           Subd. 2.  [DEPOSIT OF MONEY.] The board shall provide by 
        policy, in accordance with provisions of chapter 118, for the 
        deposit of all money received or referred to under this 
        section.  Whenever the board shall by resolution determine that 
        there are moneys in the state college or university funds not 
        currently needed, the board may by resolution authorize and 
        direct the president of the college or university to invest a 
        specified amount in securities as are duly authorized as legal 
        investments for savings banks and trust companies.  Securities 
        so purchased shall be deposited and held for the board by any 
        bank or trust company authorized to do a banking business in 
        this state.  Notwithstanding the provisions of chapter 118, the 
        state board of investment may invest assets of the board, 
        colleges, and universities when requested by the board, college, 
        or university. 
           Sec. 54.  Minnesota Statutes 1994, section 137.37, is 
        amended to read: 
           137.37 [OFF-CAMPUS SITES AND CENTERS.] 
           The board of regents and the university campuses are 
        requested to not establish any off-campus centers or other 
        permanent sites located off university campuses to provide 
        academic programs, courses, or student services without 
        authorizing legislation.  This section does not apply to sites 
        set up specifically for the delivery of courses and programs 
        through telecommunications. 
           Sec. 55.  Minnesota Statutes 1995 Supplement, section 
        169.441, subdivision 5, is amended to read: 
           Subd. 5.  [OPTIONAL MARKINGS; RULES.] A school district or 
        technical college may elect to show on the front and rear of the 
        school buses that it owns or contracts for, a plainly visible, 
        summary message explaining section 169.444, subdivisions 1 and 
        2.  If the school district or technical college elects to 
        display the message, it must conform with the rules of the 
        commissioner of children, families, and learning.  The 
        commissioner shall adopt rules governing the size, type, design, 
        display, and content of the summary message that may be shown. 
           Sec. 56.  Minnesota Statutes 1994, section 169.448, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SCHOOL MOTOR COACHES.] (a) Neither A school 
        district nor a technical college may not acquire a motor coach 
        for transportation purposes.  
           (b) A motor coach acquired by a school district or 
        technical college before March 26, 1986, may be used by it only 
        to transport students participating in school activities, their 
        instructors, and supporting personnel to and from school 
        activities.  A motor coach may not be outwardly equipped and 
        identified as a school bus.  A motor coach operated under this 
        subdivision is not a school bus for purposes of section 
        124.225.  The state board of education shall implement rules 
        governing the equipment, identification, operation, inspection, 
        and certification of motor coaches operated under this 
        subdivision.  
           (c) After January 1, 1998, neither a school district nor a 
        technical college may not own or operate a motor coach for any 
        purpose.  
           Sec. 57.  Minnesota Statutes 1994, section 201.1611, is 
        amended to read: 
           201.1611 [POST-SECONDARY INSTITUTION VOTER REGISTRATION.] 
           Subdivision 1.  [FORMS.] All post-secondary institutions 
        that enroll students accepting state or federal financial aid 
        shall provide voter registration forms to each student upon 
        payment of tuition, fees, and activities funds at the 
        commencement of as early as possible in the fall quarter.  The 
        forms must contain spaces for the information required in 
        section 201.071, subdivision 1, and applicable rules of the 
        secretary of state.  The institutions may request these forms 
        from the secretary of state.  Institutions shall consult with 
        their campus student government in determining the most 
        effective means of distributing the forms and in seeking to 
        facilitate election day registration of students under section 
        201.061, subdivision 3. 
           Subd. 2.  [STUDENT VOTER REGISTRATION.] Upon registration 
        or receipt of payment of fees, students must be asked if they 
        want to register to vote at the same time.  A copy of each 
        completed voter registration form must be sent to the county 
        auditor of the county in which the voter maintains residence or 
        to the secretary of state as soon as possible.  All completed 
        voter registration forms must be forwarded to the county auditor 
        within five days and in no case later than 21 days before the 
        general election. 
           Sec. 58.  Minnesota Statutes 1994, section 248.07, 
        subdivision 7, is amended to read: 
           Subd. 7.  [BLIND, VENDING STANDS AND MACHINES ON 
        GOVERNMENTAL PROPERTY.] Notwithstanding any other law, for the 
        rehabilitation of blind persons the commissioner shall have 
        exclusive authority to establish and to operate vending stands 
        and vending machines in all buildings and properties owned or 
        rented exclusively by the Minnesota state colleges and 
        universities at a state university or, a community college 
        systems, a consolidated community technical college, or a 
        technical college served by the commissioner before January 1, 
        1996, or by any department or agency of the state of Minnesota 
        except the department of natural resources properties operated 
        directly by the division of state parks and not subject to 
        private leasing.  The merchandise to be dispensed by such 
        vending stands and machines may include nonalcoholic beverages, 
        food, candies, tobacco, souvenirs, notions and related items.  
        Such vending stands and vending machines herein authorized shall 
        be operated on the same basis as other vending stands for the 
        blind established and supervised by the commissioner under 
        federal law.  The commissioner shall waive this authority to 
        displace any present private individual concessionaire in any 
        state-owned or rented building or property who is operating 
        under a contract with a specific renewal or termination date, 
        until the renewal or termination date.  With the consent of the 
        governing body of a governmental subdivision of the state, the 
        commissioner may establish and supervise vending stands and 
        vending machines for the blind in any building or property 
        exclusively owned or rented by the governmental subdivision. 
           Sec. 59.  Laws 1995, chapter 212, article 2, section 15, is 
        amended to read: 
           Sec. 15.  [CREDIT STUDENT TRACKING.] The board of regents 
        of the University of Minnesota and the board of trustees of the 
        Minnesota state colleges and universities are requested to 
        develop a centralized electronic tracking system systems of 
        credits earned by students student enrollment. 
           Sec. 60.  Laws 1995, chapter 212, article 2, section 20, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PLAN.] The state universities, community 
        colleges, and technical colleges shall each develop and 
        implement plans, in conjunction with the board of trustees, to 
        provide students with job placement history and projected demand 
        to students at the time the student declares a major program or 
        field of study for careers in major programs or fields of 
        study.  The University of Minnesota campuses are requested to 
        develop and implement similar plans.  These plans may allow for 
        this information to be provided through such means as in-person 
        student advising or electronic delivery, as determined by the 
        campus to best address student needs. 
           Sec. 61.  Laws 1995, chapter 212, article 2, section 20, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CONTENTS.] Information provided must include 
        program placement history, and projected demand in the field and 
        in associated types of placement, using labor market forecasting 
        information from the department of economic security or similar 
        materials.  The plan must provide for students to indicate in 
        writing that they received the information. 
           Sec. 62.  [MINNESOTA STATE COLLEGE AND UNIVERSITY 
        POLICIES.] 
           Subdivision 1.  [GENERAL.] In establishing system policies 
        under this section and elsewhere in this act, the system office 
        and campus representatives shall consult with the departments of 
        administration, employee relations, and finance. 
           Subd. 2.  [DEVELOPMENT.] The system office and the campuses 
        shall begin developing policies and procedures and do other 
        necessary planning to implement this act immediately upon final 
        enactment.  Policies and procedures necessary to implement 
        section 47 shall be developed by July 1, 1996.  To the extent 
        possible, policies and procedures necessary to implement any 
        other sections shall be developed before the beginning of the 
        1996-1997 academic year. 
           Subd. 3.  [PROPERTY DISPOSAL POLICY.] Notwithstanding 
        Minnesota Statutes, section 15.054, Minnesota state college and 
        university system and campus officials, in consultation with the 
        department of administration, shall establish an efficient 
        method for the disposal and exchange of property and equipment 
        no longer needed by the system office or a campus, but that 
        might be of use to another college or university in the system. 
           Minnesota state college and university system and campus 
        officials may allow other state and local governmental agencies 
        access to property and equipment to be used for educational 
        purposes. 
           Subd. 4.  [ENVIRONMENTALLY RESPONSIBLE PRACTICES.] The 
        board shall develop (1) resource recovery policies that ensure 
        recycling in the system office and at the colleges and 
        universities is at least maintained at the current level, and (2)
        environmentally responsible practices that are consistent in 
        their intent and goals with Minnesota Statutes, sections 16B.121 
        and 115A.15, and related administrative policies.  
           Sec. 63.  [FINANCIAL AID RULES.] 
           The higher education services office shall eliminate the 
        requirement that schools document that students have been 
        counseled regarding responsibilities as SELF loan borrowers.  
        Schools shall have a campus policy for counseling students about 
        their obligations and responsibilities as SELF borrowers.  This 
        counseling may be done in conjunction with federal loan 
        counseling.  The office shall work with the Minnesota 
        association of financial aid administrators to determine a 
        solution to the problems created by different federal and state 
        disbursement schedules and to improve the process relating to 
        holds on state grants for nonpayment of child support. 
           Sec. 64.  [CONTRACT LIABILITY.] 
           Any procurement contract involving the department of 
        administration that (1) was entered into before March 1, 1996, 
        and (2) would be breached without the participation of the 
        Minnesota state colleges and universities as determined by the 
        attorney general, shall remain in effect until the first time 
        that the Minnesota state colleges and universities can be 
        excluded without liability. 
           Sec. 65.  [TRANSITIONAL BARGAINING.] 
           Changes in the authority of the board of trustees to 
        negotiate contracts under section 23 apply to negotiations for 
        contracts for the period beginning July 1, 1999. 
           Sec. 66.  [REPEALER.] 
           Minnesota Statutes 1994, sections 137.03; 137.05; 137.06; 
        137.07; 137.08; 137.11; 137.14; 137.15; and 137.33; Minnesota 
        Statutes 1995 Supplement, section 136F.59, subdivision 1, are 
        repealed. 
           Sec. 67.  [EFFECTIVE DATE.] 
           Sections 1, 2, 5 to 11, 14, 15, 26 to 31, 33 to 38, 41 to 
        46, 48, and 53 to 66 are effective the day following final 
        enactment.  Sections 3, 4, 12, 13, 16 to 24, 32, 39, 40, 47, and 
        49 to 52 are effective July 1, 1996.  Section 25 is effective 
        January 1, 1997. 
           Presented to the governor March 29, 1996 
           Signed by the governor April 2, 1996, 10:10 a.m.