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                            CHAPTER 384-S.F.No. 3297 
                  An act relating to appropriations; appropriating money 
                  for higher 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, with certain conditions; 
                  amending Minnesota Statutes 1996, sections 136A.101, 
                  subdivision 7b; and 136F.46, subdivision 1; Minnesota 
                  Statutes 1997 Supplement, sections 41D.03, subdivision 
                  4; and 136A.121, subdivision 5; Laws 1996, chapter 
                  366, section 6, as amended; Laws 1997, chapter 183, 
                  articles 1, section 2, subdivision 6; and 2, section 
                  19; repealing Minnesota Statute 1996, section 137.01. 
           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
                                  1998          1999           TOTAL
        General                   -0-     $   73,000,000 $   73,000,000
                         SUMMARY BY AGENCY - ALL FUNDS 
                                  1998          1999           TOTAL
        Higher Education     
        Services Office           -0-        $ 1,000,000    $ 1,000,000
        Board of Trustees of the
        Minnesota State Colleges 
        and Universities          -0-         36,000,000     36,000,000
        Board of Regents of 
        the University of 
        Minnesota                 -0-         36,000,000     36,000,000
                                               Available for the Year 
                                                   Ending June 30 
                                                  1998         1999 
        OFFICE                                    -0-         1,000,000
        $1,000,000 is added to the work study 
        appropriation in Laws 1997, chapter 
        183, article 1, section 2, subdivision 
        $500,000 is transferred from the state 
        grant appropriation in Laws 1997, 
        chapter 183, article 1, section 2, 
        subdivision 2, to the work study 
        appropriation in Laws 1997, chapter 
        183, article 1, section 2, subdivision 
                                                  -0-        36,000,000
        (a) Business and Industry Partnerships 
               -0-         10,000,000
        This appropriation is for activities to 
        enhance partnerships between colleges 
        and business and industry.  This 
        appropriation includes $450,000 to 
        review aviation maintenance program 
        needs and for equipment to upgrade the 
        aviation maintenance programs at 
        Minneapolis community and technical 
        college, Northland community and 
        technical college, and Winona/Red Wing 
        technical college to support new 
        industry and FAA requirements and to 
        provide customized training programs in 
        the Duluth area.  The board shall 
        review other related avionics programs 
        to determine program and equipment 
        needs.  The board shall review current 
        and prospective aviation maintenance 
        programs to ensure that program 
        offerings are fully coordinated across 
        the institutions, and that new aviation 
        maintenance courses, including courses 
        in composite fiber and avionics, are 
        established only to complement, and not 
        duplicate, existing FAA approved 
        programs offered by the system.  The 
        board shall report the results of its 
        review as part of the 2000-2001 
        biennial budget document.  $9,425,000 
        of this appropriation is nonrecurring. 
        This appropriation contains money for 
        campuses to increase the number of 
        students enrolled in internships by:  
        (1) restructuring programs to require 
        internships for more degree, diploma, 
        and certificate programs; (2) providing 
        incentives for business to train, 
        place, and retain hard-to-place 
        individuals; and (3) expanding 
        partnerships with businesses to train 
        and place students in high-demand 
        (b) Enhancing Allocations 
               -0-         20,000,000
        This appropriation is to reduce the 
        funding variances in state 
        appropriations per full year equivalent 
        student among MnSCU institutions.  
        Variances shall be addressed within 
        categories of institutions of the same 
        type.  The allocation method used to 
        address the variances may also take 
        into account other contributing factors 
        including, but not limited to, campus 
        size, types and costs of programs, and 
        instructional/program level. 
        The allocations to the institutions 
        from this appropriation are for all 
        campuses to foster student success and 
        may include, but are not limited to:  
        an equipment base adjustment; and 
        training for students, faculty, and 
        staff in instructional technology.  
        The legislature expects the system 
        office to develop an allocation model 
        beginning with fiscal year 2000.  The 
        model should minimize campus and system 
        reliance on one-time funds, and also 
        reduce variation in per full year 
        equivalent funding among institutions 
        of the same type.  In developing the 
        allocation model, the board shall 
        consider relevant instructional cost 
        data, including, but not limited to, 
        information required by Minnesota 
        Statutes, section 135A.031, subdivision 
        7.  The board of trustees shall report 
        on the model as part of its 2000-2001 
        biennial budget request. 
        (c) Libraries 
               -0-          3,000,000
        This appropriation is for the 
        acquisition of library materials and 
        (d) Colleges of Education Curriculum 
        Redesign and Technology 
               -0-          3,000,000
        This appropriation is for colleges of 
        education to redesign their curriculum 
        to prepare teachers to work with the 
        Minnesota graduation rule, and to 
        integrate the use of computers and 
        technology into their teaching 
        methods.  The redesign of curriculum 
        shall ensure that course content impart 
        knowledge and develop teaching skills 
        that will enable the students to be 
        effective teachers.  The legislature 
        intends that the universities link with 
        school districts to ensure that the 
        college of education faculty, district 
        teachers, and students preparing to be 
        future teachers are prepared for K-12 
        conditions and demands, including 
        having technological skills necessary 
        for the classroom and for implementing 
        the graduation rule.  This 
        appropriation is nonrecurring. 
        (e) State Council on Vocational Technical Education 
        The state council on vocational 
        technical education shall sunset June 
        30, 1999. 
        The appropriation in Laws 1997, chapter 
        183, article 1, section 3, subdivision 
        1, includes money in the second year 
        for the state council on vocational 
        technical education, and the board 
        shall provide to the council an 
        additional amount not to exceed $50,000 
        to enable the council to properly 
        perform its functions. 
        (f) Technology Purchases 
        Prior to purchasing any new technology 
        or related equipment from 
        appropriations under this section, the 
        system shall ensure that purchased 
        items are year 2000 compliant. 
        Sec. 4.  UNIVERSITY OF MINNESOTA        -0-          36,000,000
        Subdivision 1.  Operations and Maintenance 
        (a) Initiatives 
               -0-         31,850,000
        This appropriation is for strategic 
        academic initiatives in digital 
        technology, molecular and cellular 
        biology, and design; an equipment base 
        adjustment; a faculty set-up and 
        equipment fund; a rapid agricultural 
        response fund to conduct research to 
        solve problems including but not 
        limited to those affecting spring 
        wheat, barley, canola, potatoes, and 
        respiratory diseases affecting turkeys; 
        and faculty and staff compensation.  
        $12,175,000 of this appropriation is 
        (b) Law Clinics 
               -0-            250,000
        This appropriation is for the law 
        clinic programs in the law school.  The 
        appropriation must be used to increase 
        the number of students and faculty who 
        participate in the clinics, expand 
        support services, and acquire supplies 
        necessary to provide legal services to 
        a greater number of Minnesota citizens 
        with limited incomes.* (The preceding 
        text beginning "(b) Law Clinics" was 
        vetoed by the governor.) 
        (c) Project Inform 
               -0-            250,000
        This appropriation is to enhance and 
        expand the work of Project Inform in 
        providing outreach and information to 
        K-12 students and their families, 
        particularly in schools without 
        counselors.  This program shall be 
        coordinated by the University, but 
        shall be operated in conjunction with 
        the Minnesota State Colleges and 
        Universities.  Private colleges are 
        requested to participate.  This 
        appropriation is nonrecurring.* (The 
        preceding text beginning "(c) Project 
        Inform" was vetoed by the governor.) 
        (d) Technology Purchases 
        Prior to purchasing any new technology 
        or related equipment from 
        appropriations under this section, the 
        University shall ensure that purchased 
        items are year 2000 compliant. 
        Subd. 2.  Agriculture Specials
               -0-          3,650,000 
        This appropriation is for agricultural 
        research and outreach.  
        The board of trustees and the board of 
        regents are requested to jointly 
        evaluate the costs and benefits and 
        need throughout the state for 
        practitioner-oriented doctoral degree 
        opportunities.  The boards shall report 
        their recommendations as part of their 
        2000-2001 biennial budget request. 
           Sec. 6.  Minnesota Statutes 1997 Supplement, section 
        41D.03, subdivision 4, is amended to read: 
           Subd. 4.  [EMPLOYEES.] (a) The council shall employ persons 
        who shall serve in the unclassified service. 
           (b) The employees hired under this subdivision and any 
        other necessary employees hired by the council shall be state 
        employees in the executive branch of the University of Minnesota.
           Sec. 7.  Minnesota Statutes 1996, section 136A.101, 
        subdivision 7b, is amended to read: 
           Subd. 7b.  [HALF TIME.] "Half time" means enrollment in a 
        minimum of eight six credits per quarter or semester, or the 
           Sec. 8.  Minnesota Statutes 1997 Supplement, section 
        136A.121, subdivision 5, is amended to read: 
           Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
        based on a sharing of responsibility for covering the recognized 
        cost of attendance by the applicant, the applicant's family, and 
        the government.  The amount of a financial stipend must not 
        exceed a grant applicant's recognized cost of attendance, as 
        defined in subdivision 6, after deducting the following:  
           (1) the assigned student responsibility of at least 50 47 
        percent of the cost of attending the institution of the 
        applicant's choosing; 
           (2) the assigned family responsibility as defined in 
        section 136A.101; and 
           (3) the amount of a federal Pell grant award for which the 
        grant applicant is eligible. 
           The minimum financial stipend is $300 per academic year. 
           Sec. 9.  Minnesota Statutes 1996, section 136F.46, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
        finance, upon the written request of an employee of the board, 
        may deduct from an employee's salary or wages the amount 
        requested for payment to a nonprofit state college or university 
        foundation meeting the requirements in subdivision 2.  The 
        commissioner shall issue a warrant for the deducted amount to 
        the nonprofit foundation.  The Penny fellowship and the Nellie 
        Stone Johnson scholarship program of the Minnesota state 
        university student association shall be considered a nonprofit 
        state college and university foundation foundations for purposes 
        of this section. 
           Sec. 10.  Laws 1996, chapter 366, section 6, as amended by 
        Laws 1997, chapter 183, article 3, section 31, is amended to 
           Sec. 6.  [MORATORIUM.] 
           Notwithstanding any law to the contrary, until June 30, 
        1998 1999, an educational institution that was licensed under 
        Minnesota Statutes, chapter 141, on December 31, 1995, must 
        continue to comply with the provisions of that chapter and may 
        not use any of the exemptions available under Minnesota 
        Statutes, section 141.35. 
           Sec. 11.  Laws 1997, chapter 183, article 1, section 2, 
        subdivision 6, is amended to read: 
        Subd. 6.  Learning Network of Minnesota
             5,500,000      5,292,000
        Up to $1,500,000 of this amount is to 
        assist in establishing a gigabit 
        capacity point of presence at the 
        University of Minnesota-Twin Cities and 
        to support the University's 
        participation in the national Internet 
        2 initiative for research and 
        development of telecommunications 
        networks.  This appropriation is 
        available to the extent matched by the 
        University of Minnesota or private 
        This appropriation includes money for 
        quality improvements and inter-region 
        and interstate connectivity for MnNet. 
        This appropriation does not cancel but 
        is available until expended. 
           Sec. 12.  Laws 1997, chapter 183, article 2, section 19, is 
        amended to read: 
           A national service scholars program is established under 
        the administration of the higher education services office to 
        match scholarship grants made under the National Service 
        Scholars program of the Corporation for National Service to 
        students attending Minnesota high schools and who will attend a 
        Minnesota post-secondary institution.  Not more than one 
        matching grant of $500 may be made for each high school per 
        year.  The state money shall be available until June 30, 1999 
        the participants for whom the money was appropriated are no 
        longer eligible to draw benefits, if federal money is available. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1996, section 137.01, is repealed. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Section 6 is effective the day following final enactment. 
           Presented to the governor April 9, 1998 
           Signed by the governor April 9, 1998, 6:25 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes