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

                            CHAPTER 453-S.F.No. 3386 
                  An act relating to higher education; creating a 
                  separate subdivision for the salary procedure for the 
                  chancellor of the Minnesota state colleges and 
                  universities; authorizing chancellors and presidents 
                  to receive additional compensation for early contract 
                  termination; amending Minnesota Statutes 1998, 
                  sections 15A.081, subdivision 7b, and by adding a 
                  subdivision; and 136F.40. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 15A.081, 
        subdivision 7b, is amended to read: 
           Subd. 7b.  [HIGHER EDUCATION OFFICERS SERVICES OFFICE 
        DIRECTOR.] The board of trustees of the Minnesota state colleges 
        and universities and The higher education services council shall 
        set the salary rates rate for, respectively, the chancellor of 
        the Minnesota state colleges and universities and the director 
        of the higher education services office.  The board or the 
        council shall submit the proposed salary change to the 
        legislative coordinating commission for approval, modification, 
        or rejection in the manner provided in section 3.855.  
           In deciding whether to recommend a salary increase, the 
        governing board or council shall consider the performance of the 
        chancellor or director, including the chancellor's or director's 
        progress toward attaining affirmative action goals and program 
        administration, as outlined in section 136A.01. 
           Sec. 2.  Minnesota Statutes 1998, section 15A.081, is 
        amended by adding a subdivision to read: 
           Subd. 7c.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES 
        CHANCELLOR.] The board of trustees of the Minnesota state 
        colleges and universities shall establish a salary range for the 
        position of chancellor of the Minnesota state colleges and 
        universities.  The board shall submit the proposed salary range 
        to the legislative coordinating commission for approval, 
        modification, or rejection in the manner provided in section 
        3.855.  The board shall establish the salary for the chancellor 
        within the approved salary range. 
           In deciding whether to approve a salary increase, the board 
        shall consider the performance of the chancellor in areas 
        including educational leadership, student success, system 
        management, human resources and affirmative action. 
           Sec. 3.  Minnesota Statutes 1998, section 136F.40, is 
        amended to read: 
           136F.40 [APPOINTMENT OF PERSONNEL.] 
           Subdivision 1.  [APPOINTMENT PROCEDURE.] The board shall 
        appoint all presidents, teachers, and other necessary employees 
        and shall prescribe their duties consistent with chapter 43A.  
        Salaries and benefits of employees must be determined according 
        to chapters 43A and 179A and other applicable provisions.  
           Subd. 2.  [COMPENSATION.] Notwithstanding any other 
        provision to the contrary, when establishing compensation the 
        board may provide, through a contract, a liquidated salary 
        amount or other compensation if a contract with a chancellor or 
        president is terminated by the board prior to its expiration. 
           Any benefits shall be excluded in computation of 
        retirement, insurance, and other benefits available through or 
        from the state.  Any benefits or additional compensation must be 
        as provided under the plan approved under section 43A.18, 
        subdivision 3a. 
           Presented to the governor May 2, 2000 
           Signed by the governor May 5, 2000, 10:46 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes