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1995 Minnesota Session Laws

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                            CHAPTER 212-H.F.No. 1856 
                  An act relating to education; appropriating money for 
                  education and related purposes to the higher education 
                  services office, board of trustees of the Minnesota 
                  state colleges and universities, board of regents of 
                  the University of Minnesota, and the Mayo medical 
                  foundation, with certain conditions; modifying 
                  appropriations for instructional services; permitting 
                  an admission fee waiver; modifying participation in 
                  post-secondary enrollment options; requiring and 
                  requesting a semester system and a common calendar; 
                  creating definitions and actions during financial 
                  emergencies; establishing a nursing grant program; 
                  regulating student association changes; requiring 
                  administrative interaction with students; requiring 
                  certain communication through an exclusive 
                  representative; modifying use of education institution 
                  data; extending the repeal of the farmer-lender 
                  mediation act; extending time for POST board funding 
                  change; assigning duties to the library and 
                  information services task force; establishing 
                  electronic credit tracking; setting goals for 
                  compensation plans and labor agreements; requiring 
                  review of the Akita program; requiring efficiency in 
                  use of facilities; establishing a model instruction 
                  program in translating and interpreting services; 
                  requiring distribution of career planning and job 
                  placement information; requiring sabbatical policies; 
                  abolishing the higher education coordinating board and 
                  transferring certain duties; creating the higher 
                  education services office and the higher education 
                  services council; prescribing changes in certain 
                  financial assistance programs; consolidating and 
                  restructuring certain higher education statutes to 
                  reflect the merger of the community colleges, state 
                  universities, and technical colleges; amending 
                  Minnesota Statutes 1994, sections 3.9741, subdivision 
                  2; 15.38, subdivision 3; 126.56; 126.663, subdivision 
                  3; 135A.031, subdivision 2; 135A.08, subdivisions 1 
                  and 2; 135A.10, subdivision 1; 135A.12, subdivision 1; 
                  135A.15, subdivision 1; 135A.153, subdivision 1; 
                  136A.01; 136A.03; 136A.043; 136A.05, subdivision 1; 
                  136A.07; 136A.08; 136A.101, subdivisions 2, 3, 5, 8, 
                  and 10; 136A.121, subdivisions 5, 6, 9, 16, and by 
                  adding a subdivision; 136A.125, subdivisions 4 and 6; 
                  136A.1359, subdivisions 1, 2, and 3; 136A.15, 
                  subdivisions 3 and 4; 136A.16, subdivision 1; 
                  136A.233, subdivision 2; 136A.26, subdivisions 1 and 
                  2; 136A.42; 136A.62, subdivision 2; 136A.69; 136A.81, 
                  subdivision 1; 136E.01, subdivision 1; 136E.02, 
                  subdivisions 1, 3, and 4; 136E.021, subdivision 2; 
                  136E.04, subdivision 1, and by adding subdivisions; 
                  136E.05; 136E.31; 136E.525, subdivisions 1, 2, and 3; 
                  136E.692, subdivisions 1 and 3; 141.25, subdivision 8; 
                  144.1487, subdivision 1; 144.1488, subdivisions 1 and 
                  4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 
                  144.1491, subdivision 2; 179A.07, subdivision 4; 
                  298.2214, subdivision 5; and 363.03, subdivision 5; 
                  Laws 1986, chapter 398, article 1, section 18, as 
                  amended; Laws 1991, chapter 356, article 9, section 9, 
                  as amended; Laws 1993, chapter 326, article 12, 
                  section 15, subdivisions 4 and 5; Laws 1993, First 
                  Special Session chapter 2, articles 1, section 2, 
                  subdivision 3, and section 9, subdivision 6; and 9, 
                  section 1, subdivision 7; Laws 1994, chapter 532, 
                  article 6, section 12; and Laws 1994, chapter 643, 
                  section 69, by adding subdivisions; proposing coding 
                  for new law in Minnesota Statutes, chapters 135A; 
                  136A; and 136E; proposing coding for new law as 
                  Minnesota Statutes, chapter 136F; repealing Minnesota 
                  Statutes 1994, sections 15.38, subdivision 4; 
                  135A.052, subdivisions 2 and 3; 135A.08, subdivision 
                  3; 135A.09; 135A.11; 135A.12, subdivision 5; 136.01; 
                  136.02; 136.03; 136.031; 136.036; 136.045; 136.065; 
                  136.07; 136.09; 136.10; 136.11; 136.111; 136.12; 
                  136.13; 136.14; 136.141; 136.142; 136.143; 136.144; 
                  136.145; 136.146; 136.147; 136.17; 136.171; 136.172; 
                  136.18; 136.19; 136.20; 136.21; 136.22; 136.232; 
                  136.24; 136.25; 136.261; 136.27; 136.31; 136.311; 
                  136.32; 136.33; 136.34; 136.35; 136.36; 136.37; 
                  136.38; 136.40; 136.41; 136.42; 136.43; 136.44; 
                  136.45; 136.46; 136.47; 136.48; 136.49; 136.50; 
                  136.501; 136.502; 136.503; 136.504; 136.505; 136.506; 
                  136.507; 136.55; 136.56; 136.57; 136.58; 136.60; 
                  136.6011; 136.602; 136.603; 136.61; 136.62; 136.621; 
                  136.622; 136.63; 136.65; 136.651; 136.653; 136.67; 
                  136.70; 136.71; 136.72; 136.88; 136.90; 136A.02; 
                  136A.04; 136A.041; 136A.125, subdivision 5; 136A.16, 
                  subdivision 11; 136A.85; 136A.86; 136A.88; 136C.01; 
                  136C.02; 136C.03; 136C.04; 136C.041; 136C.042; 
                  136C.043; 136C.044; 136C.05; 136C.06; 136C.07; 
                  136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 136C.31; 
                  136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 136C.50; 
                  136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 136C.64; 
                  136C.65; 136C.66; 136C.67; 136C.68; 136C.69; 136C.70; 
                  136C.71; 136C.75; 136D.77; 136D.81, subdivision 2; 
                  136E.04, subdivisions 2, 3, 4, 5, 6, and 7; 136E.395; 
                  136E.692, subdivision 4; 137.31, subdivision 6; 
                  137.35, subdivision 4; 137.38; 144.1488, subdivision 
                  2; and 148.236; and Laws 1993, chapter 326, article 
                  12, section 15, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1
                                 APPROPRIATIONS
        Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
           The sums in the columns marked "APPROPRIATIONS" are 
        appropriated from the general fund, or other named fund, to the 
        agencies and for the purposes specified in this article.  The 
        listing of an amount under the figure "1996" or "1997" in this 
        article indicates that the amount is appropriated to be 
        available for the fiscal year ending June 30, 1996, or June 30, 
        1997, respectively.  "The first year" is fiscal year 1996.  "The 
        second year" is fiscal year 1997.  "The biennium" is fiscal 
        years 1996 and 1997. 
                                SUMMARY BY FUND
                                  1996          1997           TOTAL
        General            $1,066,898,000 $1,077,189,000 $2,144,087,000
                         SUMMARY BY AGENCY - ALL FUNDS
                                  1996          1997           TOTAL
        Higher Education Services Office
                              115,993,000    120,193,000    236,186,000
        Board of Trustees of the Minnesota
        State Colleges and Universities
                              466,220,000    470,927,000    937,147,000
        Board of Regents of the University of Minnesota
                              483,860,000    485,124,000    968,984,000
        Mayo Medical Foundation
                                  825,000        945,000      1,770,000
                                                   APPROPRIATIONS 
                                               Available for the Year 
                                                   Ending June 30 
                                                  1996         1997 
        Sec. 2.  HIGHER EDUCATION
        SERVICES OFFICE
        Subdivision 1.  Total
        Appropriation                        115,993,000    120,193,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  State Grants
             95,745,000        99,945,000
        If the appropriation in this 
        subdivision for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        The legislature intends that the higher 
        education services office make full 
        grant awards in each year of the 
        biennium.  
        For the biennium, the private 
        institution tuition maximum shall be 
        $7,665 for four-year institutions and 
        $5,900 for two-year institutions. 
        This appropriation contains money to 
        set the living and miscellaneous 
        expense allowance at $4,115 in the 
        first year and $4,200 in the second 
        year. 
        If money is not appropriated in 
        separate legislation for the LINC 
        nursing grant program, the higher 
        education services office may spend 
        $25,000 each year from this 
        appropriation for the LINC program. 
        In order to maximize the eligibility 
        period for students who transfer to 
        four-year institutions, public and 
        private two-year colleges shall review 
        their credit requirements for program 
        completion and examine the number of 
        credits of financial aid eligibility 
        that students use in the first two 
        years. 
        This appropriation includes $250,000 
        each year for grants to nursing 
        programs to recruit persons of color 
        and to provide grants to nursing 
        students who are persons of color.  Of 
        this amount, $100,000 each year is for 
        recruitment and retention of students 
        of color in nursing programs leading to 
        licensure as a registered nurse.  Other 
        than the grants to students, all grants 
        shall be matched with at least the same 
        amount from grantee sources or nonstate 
        money.  
        If the federal government enacts a 
        federal student loan risk sharing fee, 
        the higher education services office 
        shall recover the fee by billing the 
        institutions that have a cohort loan 
        default rate greater than the federal 
        law permits. 
        Subd. 3.  Interstate Tuition
        Reciprocity
             4,500,000      4,500,000
        If the appropriation in this 
        subdivision for either year is 
        insufficient, the appropriation for the 
        other year is available to meet 
        reciprocity contract obligations. 
        The higher education services office is 
        authorized to negotiate a reciprocity 
        agreement with the province of Ontario. 
        Subd. 4.  State Work Study
             8,219,000      8,219,000
        Subd. 5.  Minitex Library Program
             2,108,000      2,108,000
        Subd. 6.  Learning Network of Minnesota
             3,050,000      3,050,000
        Subd. 7.  Income Contingent Loans
        The higher education services office 
        shall administer an income contingent 
        loan repayment program to assist 
        graduates of Minnesota schools in 
        medicine, dentistry, pharmacy, 
        chiropractic medicine, public health, 
        and veterinary medicine, and Minnesota 
        residents graduating from optometry and 
        osteopathy programs.  Applicant data 
        collected by the higher education 
        services office for this program may be 
        disclosed to a consumer credit 
        reporting agency under the same 
        conditions as apply to the supplemental 
        loan program under Minnesota Statutes, 
        section 136A.162.  No new applicants 
        may be accepted after June 30, 1995. 
        Subd. 8.  Agency Administration
             2,371,000      2,371,000
        The amount that may be spent for the 
        parent and student information activity 
        shall not exceed $95,000 each year. 
        This appropriation includes money for 
        the Minnesota Minority Education 
        Partnership. 
        Money encumbered in fiscal year 1994 
        and fiscal year 1995 for youth works 
        postservice benefits shall not cancel 
        but is available until the participants 
        for whom the money was encumbered are 
        no longer eligible to draw benefits. 
        Subd. 9.  Balances Forward 
        An unencumbered balance in the first 
        year under a subdivision in this 
        section does not cancel but is 
        available for the second year. 
        Subd. 10.  Transfers 
        The higher education services office 
        may transfer unencumbered balances from 
        the appropriations in this section to 
        the state grant appropriation and the 
        interstate tuition reciprocity 
        appropriation. 
        Sec. 3.  BOARD OF TRUSTEES OF THE
        MINNESOTA STATE COLLEGES AND UNIVERSITIES
        Subdivision 1.  Total
        Appropriation                       466,220,000    470,927,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        If the state university board or the 
        board of trustees of the Minnesota 
        state colleges and universities is 
        reimbursed under Minnesota Statutes, 
        section 115B.43, for expenses relating 
        to the cleanup of the Kummer landfill, 
        the state university board or the board 
        of trustees shall cancel the amount 
        reimbursed to the state general fund. 
        Subd. 2.  Instructional Expenditures 
        The legislature estimates that 
        instructional expenditures will be 
        $214,536,000 each year for the 
        technical colleges. 
        The legislature estimates that 
        instructional expenditures will be 
        $145,565,000 each year for community 
        colleges. 
        The legislature estimates that 
        instructional expenditures will be 
        $253,612,000 each year for state 
        universities. 
        During the biennium neither the board 
        nor campuses shall plan or develop 
        doctoral level programs or degrees 
        until after they have received the 
        recommendation of the house and senate 
        committees on education, finance, and 
        ways and means. 
        This appropriation includes continued 
        support of at least $400,000 each year 
        for the Mid-Tec and Heartland 
        Telecommunications Networks. 
        This appropriation includes $40,000 
        each year for American Indian 
        outreach.  The legislature anticipates 
        this money will assist the Fond Du Lac 
        campus to recruit, advise, and retain 
        American Indian students. 
        It is the intent of the legislature to 
        hold the Minnesota state colleges and 
        universities accountable for making 
        budgetary and policy decisions that 
        provide students with access to high 
        quality education and training 
        programs.  Significant and demonstrable 
        progress toward the goals in this 
        subdivision and in section 6, 
        subdivision 2, are expected in this 
        biennium for consideration in funding 
        decisions in the next supplemental 
        budget and in the 1998-1999 biennial 
        budget. 
        The commissioner of finance shall place 
        $5,000,000 of the second year 
        appropriation in a performance 
        incentive account.  The commissioner 
        shall release $1,000,000 of this amount 
        to the board of trustees each time that 
        it demonstrates that it has achieved 
        one of the following performance 
        measures: 
        (1) increase the percentage of the 
        budget directed to instruction and 
        academic resources; 
        (2) increase the number of credits 
        issued through telecommunications 
        between fiscal year 1995 and fiscal 
        year 1996; 
        (3) increase the retention of new 
        entering freshman on state university 
        campuses who continue into the 
        sophomore year between fiscal year 1995 
        and fiscal year 1996 by at least two 
        percent.  The appropriation shall be 
        distributed to those campuses that 
        achieve the increase; 
        (4) increase the percentage of students 
        in two-year programs who graduate 
        within two years of admission, and the 
        percentage of students in four-year 
        programs who graduate within four years 
        of admission by at least two percent.  
        The appropriation shall be distributed 
        to campuses that achieve the increase; 
        and 
        (5) increase in placement rates for 
        occupational programs and transfer 
        rates for academic programs for 
        community and technical colleges. 
        The legislature expects the board of 
        trustees to demonstrate its commitment 
        to enhancing educational quality, 
        including high priority initiatives 
        that capitalize on opportunities 
        created by merger for:  joint programs 
        with the University of Minnesota for 
        faculty, staff, and administrative 
        development; enhanced opportunities for 
        students of color; and opportunities 
        for using technology to the advantage 
        of students and faculty. 
        The legislature further expects the 
        board of trustees to make difficult 
        choices in its allocations, based on 
        critical evaluations of its campuses 
        and programs, including actions to 
        address the 14 duplicate two-year 
        programs located within 35 miles of 
        each other, as identified by the 
        legislative auditor, for which no 
        action has yet been taken. 
        Each college and university shall 
        demonstrate to the board that, in the 
        face of severe budget constraints, it 
        has identified those programs and 
        functions that are central to the 
        mission of that campus and are most 
        critical to meeting student needs, and 
        that the campus has redirected 
        resources to those identified areas to 
        protect the core educational 
        enterprise.  Further, each campus shall 
        demonstrate that it has taken actions 
        to improve the productivity of faculty, 
        administrators, and staff. 
        The amounts for library access; Fond du 
        Lac American Indian student outreach; 
        incentives for co-located campuses; 
        increased instructional appropriations; 
        performance funding; instructional 
        equipment; conversion to semesters; 
        systemwide computer system development 
        for accounting, payroll, personnel, 
        procurement, and student records; staff 
        training for use of systems; staff 
        restructuring, separation payments, and 
        unemployment insurance; and development 
        of library collections and curriculum 
        at Metro State University are for these 
        purposes only and shall be 
        nonrecurring.  The amounts are 
        $8,741,000 in fiscal year 1996 and 
        $16,147,000 in fiscal year 1997. 
        Subd. 3.  Noninstructional Expenditures 
        The legislature estimates that 
        noninstructional expenditures will be 
        $17,231,000 the first year and 
        $16,937,000 the second year for the 
        technical colleges. 
        The legislature estimates that the 
        noninstructional expenditures will be 
        $10,349,000 each year for the community 
        colleges. 
        The legislature estimates that the 
        noninstructional expenditures will be 
        $14,573,000 each year for the state 
        universities. 
        $508,000 the first year and $214,000 
        the second year are for debt service 
        payments. 
        $150,000 each year is for southwest 
        Asia veterans tuition relief.  
        Because of its interest in improving 
        efficiency and streamlining government 
        operations, the legislature intends to 
        measure the effects of removing a 
        campus from mandates imposed by state 
        agencies, other than basic health and 
        life safety issues, ADA regulations, 
        audit requirements, and employment, 
        affirmative action, and collective 
        bargaining issues.  Notwithstanding any 
        law to the contrary, the board shall 
        designate as a pilot site a state 
        university which has a commitment to 
        establishing cooperative arrangements 
        with the private sector and involvement 
        in quality initiatives.  The board 
        shall consult with the commissioner of 
        administration in the process.  The 
        board and the university shall 
        recommend to the legislature any 
        statutory changes that this pilot 
        demonstrates will promote efficiency 
        and economy on some or all Minnesota 
        state college and university campuses, 
        while protecting public interests. 
        Subd. 4.  State Council on 
        Vocational Technical Education 
        The appropriation in subdivision 1 
        includes money for the state council on 
        vocational education. 
        Sec. 4.  BOARD OF REGENTS OF THE 
        UNIVERSITY OF MINNESOTA 
        Subdivision 1.  Total
        Appropriation                        483,860,000    485,124,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Operations and
        Maintenance                          395,432,000    396,421,000
        (a) Instructional Expenditures 
        The legislature estimates that 
        instructional expenditures will be 
        $421,089,000 the first year and 
        $421,696,000 the second year. 
        The university is requested to examine 
        the feasibility of establishing a 
        higher education research center to 
        provide applied research on public 
        policy trends, issues, and problems in 
        higher education, particularly as they 
        apply to Minnesota. 
        The commissioner of finance shall place 
        $5,000,000 of the second year 
        appropriation in a performance 
        incentive account.  The $5,000,000 is a 
        nonrecurring appropriation.  The 
        commissioner shall release $1,000,000 
        of this amount to the board of regents 
        each time the university presents 
        evidence that it has achieved one of 
        the following performance measures: 
        (1) increases at the Twin Cities 
        campus, excluding general college, in 
        the percent of 1996 new entering 
        freshmen ranking in the top 25 percent 
        of their high school class; 
        (2) increases in the rate of retention 
        of 1995 new entering freshmen; 
        (3) increases in the number of 1996 new 
        entering freshmen who are minority 
        students and increases in the percent 
        of faculty hired in 1995-1996 who are 
        women or minorities; 
        (4) increases in the five-year 
        graduation rate measured between August 
        1994 and August 1996; and 
        (5) increases in the number of credits 
        issued through telecommunications 
        between fiscal year 1995 and fiscal 
        year 1996. 
        If money is not appropriated in 
        separate legislation for the rural 
        physicians program, $300,000 of this 
        appropriation shall be added to the 
        Duluth two-year medical school to 
        enhance the efforts to train rural 
        physicians.  This is a nonrecurring 
        appropriation. 
        The amounts for U-2000; wheat and 
        barley scab research; performance 
        funding; 1994 U-2000 supplement; and 
        part of the Cambridge Bank reduction 
        restoration are for those purposes only 
        and shall be nonrecurring.  The amounts 
        are $26,268,000 in fiscal year 1996 and 
        $27,532,000 in fiscal year 1997. 
        (b) Noninstructional Expenditures 
        The legislature estimates that 
        noninstructional expenditures will be 
        $104,994,000 each year.  
        Subd. 3.  Special
        Appropriation                         88,428,000     88,703,000
        The amounts expended for each program 
        in the four categories of special 
        appropriations shall be separately 
        identified in the 1997 biennial budget 
        document. 
        (a) Agriculture and Extension Service 
            47,547,000     47,797,000
        This appropriation is for the 
        Agricultural Experiment Station and 
        Minnesota Extension Service. 
        $500,000 in each year is for additional 
        wheat and barley scab research. 
        Any salary increases granted by the 
        university to personnel paid from the 
        Minnesota Extension appropriation must 
        not result in a reduction of the county 
        portion of the salary payments. 
        During the biennium, the university 
        shall maintain an advisory council 
        system for each experiment station.  
        The advisory councils must be broadly 
        representative of range of size and 
        income distribution of farms and 
        agribusinesses and must not 
        disproportionately represent those from 
        the upper half of the size and income 
        distributions. 
        (b) Health Sciences 
            17,758,000     17,758,000
        This appropriation is for Indigent 
        Patients (County Papers), Rural 
        Physicians Associates Program, Medical 
        Research, Special Hospitals Service and 
        Educational Offset, the Veterinary 
        Diagnostic Laboratory, Institute for 
        Human Genetics, Health Sciences 
        Research, and the Biomedical 
        Engineering Center. 
        (c) Institute of Technology  
             3,067,000      3,067,000
        This appropriation is for the 
        Geological Survey, Underground Space 
        Center, Talented Youth Mathematics 
        Program, Microelectronics and 
        Information Science Center, and the 
        Center for Advanced Manufacturing, 
        Design, and Control. 
        (d) System Specials 
            20,056,000     20,081,000
        This appropriation is for Fellowships 
        for Minority and Disadvantaged 
        Students, General Research, 
        Intercollegiate Athletics, Student 
        Loans Matching Money, Industrial 
        Relations Education, Natural Resources 
        Research Institute, Sea Grant College 
        Program, Biological Process Technology 
        Institute, Supercomputer Institute, 
        Center for Urban and Regional Affairs, 
        Bell Museum of Natural History, the 
        Leadership Academy Program, and the 
        Humphrey Exhibit.  The appropriation 
        for the Leadership Academy Program is 
        nonrecurring. 
        By January 15, 1996, the board of 
        regents is requested to provide its 
        final report and its consultant's 
        report on the policies and practices it 
        has planned or implemented to comply 
        with title VII, title IX, and the Equal 
        Pay Act, as they apply across 
        university activities, including men's 
        and women's athletic coaching. 
        Subd. 4.  Specials Transfer 
        The appropriation in subdivision 3, 
        paragraph (b), for Medical Research, 
        Special Hospitals Service and 
        Educational Offset, and the Institute 
        for Human Genetics; and in paragraph 
        (c) for the Underground Space Center, 
        Microelectronics and Information 
        Science Center, and the Center for 
        Advanced Manufacturing, Design, and 
        Control; and in paragraph (d) for the 
        Fellowships for Minority and 
        Disadvantaged Students, Intercollegiate 
        Athletics, Sea Grant College Program, 
        Biological Process Technology 
        Institute, and the Supercomputer 
        Institute shall be merged with the 
        operation and maintenance funding in 
        subdivision 2, effective June 30, 1997. 
        Sec. 5.  MAYO MEDICAL FOUNDATION 
        Subdivision 1.  Total
        Appropriation                            825,000        945,000
        The amounts that may be spent from this 
        appropriation for each purpose are 
        specified in the following subdivisions.
        Subd. 2.  Medical School
               429,000        429,000
        The state of Minnesota shall pay a 
        capitation of $10,736 each year for 
        each student who is a resident of 
        Minnesota.  The appropriation may be 
        transferred between years of the 
        biennium to accommodate enrollment 
        fluctuations. 
        The legislature intends that during the 
        biennium the Mayo foundation use the 
        capitation money to increase the number 
        of doctors practicing in rural areas in 
        need of doctors.  
        Subd. 3.  Family Practice and
        Graduate Residency Program
               396,000        396,000
        The state of Minnesota provides a 
        capitation of $13,192 each year for 
        each student. 
        Subd. 4.  St. Cloud Hospital-Mayo 
        Family Practice Residency Program 
                              120,000
        This appropriation is to the Mayo 
        Foundation to support four resident 
        physicians in the St. Cloud 
        Hospital-Mayo Family Practice Residency 
        Program.  This appropriation is 
        contingent upon $950,000 in matching 
        money being made available from 
        nonstate sources.  The program shall 
        prepare doctors to practice primary 
        care medicine in the rural areas of the 
        state.  It is intended that this 
        program will improve health care in 
        rural communities, provide affordable 
        access to appropriate medical care, and 
        manage the treatment of patients in a 
        more cost-effective manner.  This 
        appropriation is nonrecurring. 
        Sec. 6.  POST-SECONDARY SYSTEMS 
        Subdivision 1.  Settlements 
        The board of regents of the University 
        of Minnesota and the board of trustees 
        of the Minnesota state colleges and 
        universities are requested to summarize 
        and report on all out-of-court 
        settlements involving the University of 
        Minnesota and the state colleges and 
        universities to the chairs of the house 
        and senate education committees.  The 
        report shall not specifically identify 
        settlements that are covered under 
        confidentiality agreements or orders. 
        Subd 2.  Accountability Measures  
        The board of regents of the University 
        of Minnesota is requested to, and the 
        board of trustees of the Minnesota 
        state colleges and universities shall, 
        establish: 
        (1) a set of accountability measures 
        that reflect each system's specific 
        mission; and 
        (2) goals to improve each system's 
        performance on the measures established.
        Each system shall establish both 
        system-level and institution-level 
        accountability measures and goals.  
        Each system will report to the 
        legislature in the biennial budget 
        document on the measures selected and 
        timeline for achieving the established 
        goals.  In addition, each system will 
        include baseline data and a description 
        of the processes implemented to 
        evaluate progress toward the goals 
        established.  Examples of goals include:
        (1) develop a post-tenure review 
        process; 
        (2) increase student satisfaction with 
        the education received; 
        (3) improve time to completion rates; 
        (4) reduce the number of credits 
        required to receive a degree; and 
        (5) assess employer satisfaction with 
        graduates from different programs. 
                                   ARTICLE 2
                             ADDITIONAL PROVISIONS
           Section 1.  Minnesota Statutes 1994, section 135A.031, 
        subdivision 2, is amended to read: 
           Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
        state share of the estimated expenditures for instruction shall 
        vary for some categories of students, as designated in this 
        subdivision. 
           (a) The state must provide at least 67 percent of the 
        estimated expenditures for: 
           (1) students who resided in the state for at least one 
        calendar year prior to applying for admission or dependent 
        students whose parent or legal guardian resides in Minnesota at 
        the time the student applies; 
           (2) Minnesota residents who can demonstrate that they were 
        temporarily absent from the state without establishing residency 
        elsewhere; 
           (3) residents of other states or provinces who are 
        attending a Minnesota institution under a tuition reciprocity 
        agreement; and 
           (4) students who have been in Minnesota as migrant 
        farmworkers, as defined in the Code of Federal Regulations, 
        title 20, section 633.104, over a period of at least two years 
        immediately before admission or readmission to a Minnesota 
        public post-secondary institution, or students who are 
        dependents of such migrant farmworkers. 
           (b) The state must provide 32 percent of the estimated 
        expenditures for definition of full year equivalent for purposes 
        of the formula calculations in this chapter is twice the normal 
        value for the following enrollments: 
           (1) students who are concurrently enrolled in a public 
        secondary school and for whom the institution is receiving any 
        compensation under the post-secondary enrollment options act; 
        and 
           (2) students enrolled under the student exchange program of 
        the Midwest Compact. 
           (c) The state may not provide any of the estimated 
        expenditures for undergraduate students (1) who do not meet the 
        residency criteria under paragraph (a), or (2) who have 
        completed, without receiving a baccalaureate degree, 48 or more 
        quarter credits or the equivalent, applicable toward the degree, 
        beyond the number required for a baccalaureate in their major. 
        Credits for courses in which a student received a grade of "F" 
        or "W" shall be counted toward this maximum, as if the credits 
        had been earned. 
           Sec. 2.  [135A.042] [FEE WAIVER.] 
           The president of a state university, community college, or 
        technical college may waive the fee assessed to a student 
        applying for admission, if the president determines that the fee 
        would impose an economic hardship on the student or the 
        student's family. 
           Sec. 3.  [135A.101] [POST-SECONDARY ENROLLMENT OPTIONS.] 
           Subdivision 1.  [REQUIREMENTS FOR PARTICIPATION.] To 
        participate in the post-secondary enrollment options program, a 
        college or university must abide by the provisions in this 
        section.  The institution may provide information about its 
        programs to a secondary school or to a pupil or parent, but may 
        not recruit or solicit participation on financial grounds. 
           Subd. 2.  [PROHIBITION.] An institution shall not enroll 
        secondary pupils, for post-secondary enrollment options 
        purposes, in developmental courses or other courses that are not 
        college level.  For the purposes of this section, a 
        "developmental course" means a post-secondary course taken to 
        prepare a student for college-level work and for which the 
        post-secondary institution does not grant credit or which cannot 
        be used to meet degree, diploma, or certificate requirements. 
           Sec. 4.  [135A.181] [ACADEMIC CALENDAR.] 
           Subdivision 1.  [TRANSITION TO SEMESTER SYSTEM.] The board 
        of trustees of the Minnesota state colleges and universities 
        shall convert, and the board of regents of the University of 
        Minnesota is requested to convert, to the semester system by the 
        1998-1999 academic year.  The public post-secondary institutions 
        shall review and revise the content and structure of their 
        academic programs, degrees, and courses, and prepare new course 
        materials as necessary.  Each public post-secondary board shall 
        submit information on the progress to a semester system in the 
        1997 biennial budget document. 
           Subd. 2.  [COMMON CALENDAR.] The semester system required 
        in subdivision 1 shall be offered on a common calendar 
        throughout all campuses under the jurisdiction of the board of 
        trustees of the Minnesota state colleges and universities.  This 
        calendar shall include 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. 
           Subd. 3.  [REPEALER.] This section is repealed June 30, 
        1999. 
           Sec. 5.  [135A.19] [FINANCIAL EMERGENCY.] 
           The board of trustees of the Minnesota state colleges and 
        universities and the board of regents of the University of 
        Minnesota may immediately layoff employees, without notice, if 
        the respective board has declared a financial emergency.  All 
        other contractual provisions relating to layoffs continue to 
        apply.  A financial emergency may be declared if, at any time:  
        (1) the projected revenue for the system from tuition and the 
        general fund for the current or next fiscal year is less than 93 
        percent of the anticipated expenditures in the board approved 
        budget, and (2) if tuition would need to be increased more than 
        three times the annual inflation rate to solve the shortfall. 
           For employees of the Minnesota state colleges and 
        universities covered under a collective bargaining agreement, 
        this section applies to all collective bargaining agreements 
        effective after July 1, 1995, and shall be effective for each 
        collective bargaining agreement covering those employees the day 
        after it has been ratified by the legislative commission on 
        employee relations.  For represented employees of the University 
        of Minnesota, this section applies the day following signing of 
        the next agreement.  For employees not covered by a collective 
        bargaining agreement, this section is effective July 1, 1995.  
        The board of trustees of the Minnesota state colleges and 
        universities and the board of regents of the University of 
        Minnesota shall balance layoffs of faculty, other employees, and 
        administrators.  The boards should strive to provide 
        uninterrupted service and instruction to students. 
           Sec. 6.  [136A.136] [NURSING GRANT PROGRAM.] 
           Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
        established under the supervision of the higher education 
        services office and the administration of the metropolitan 
        healthcare foundation's project LINC (Ladders in Nursing 
        Careers) to provide grants to Minnesota health care facility 
        employees seeking to complete a baccalaureate or master's degree 
        in nursing. 
           Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
        FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
        foundation's project LINC shall administer the grant program and 
        award grants to eligible health care facility employees.  To be 
        eligible to receive a grant, a person must be: 
           (1) an employee of a health care facility located in 
        Minnesota, whom the facility has recommended to the metropolitan 
        healthcare foundation's project LINC for consideration; 
           (2) working part time, up to 32 hours per pay period, for 
        the health care facility, while maintaining full salary and 
        benefits; 
           (3) enrolled full time in a Minnesota school or college of 
        nursing to complete a baccalaureate or master's degree in 
        nursing; and 
           (4) a resident of the state of Minnesota. 
           The grant must be awarded for one academic year but is 
        renewable for a maximum of six semesters or nine quarters of 
        full-time study, or their equivalent.  The grant must be used 
        for tuition, fees, and books.  Priority in awarding grants shall 
        be given to persons with the greatest financial need.  The 
        health care facility may require its employee to commit to a 
        reasonable postprogram completion of employment at the health 
        care facility as a condition for the financial support the 
        facility provides. 
           Subd. 3.  [RESPONSIBILITY OF HIGHER EDUCATION SERVICES 
        OFFICE.] The higher education services office shall distribute 
        money each year, contingent upon an appropriation, to the 
        metropolitan healthcare foundation's project LINC to be used to 
        award grants under this section, provided that the higher 
        education services office shall not distribute the money unless 
        the metropolitan healthcare foundation's project LINC matches 
        the money with an equal amount from nonstate sources.  The 
        metropolitan healthcare foundation's project LINC shall expend 
        nonstate money prior to expending state money and shall return 
        to the higher education services office all state money not used 
        each year for nursing program grants to be redistributed under 
        this section.  The metropolitan healthcare foundation's project 
        LINC shall report to the higher education services office on its 
        program activity as requested by the office. 
           Sec. 7.  Minnesota Statutes 1994, section 136E.525, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONSOLIDATION.] No Changes may be made to 
        student associations located on community college, state 
        university, technical college, or consolidated colocated 
        campuses without with the approval of the students of each 
        affected campus association in consultation with its state 
        student association. 
           Sec. 8.  [136E.60] [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 substantially 
        increasing 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.  
           Subd. 2.  [EVALUATION.] 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 in its 
        1998-1999 biennial budget request.  
           Sec. 9.  Minnesota Statutes 1994, section 179A.07, 
        subdivision 4, is amended to read: 
           Subd. 4.  [OTHER COMMUNICATION.] If an exclusive 
        representative has been certified for an appropriate unit, the 
        employer shall not meet and negotiate or meet and confer with 
        any employee or group of employees who are in that unit except 
        through the exclusive representative.  This subdivision does not 
        prevent communication to the employer, other than through the 
        exclusive representative, of advice or recommendations by 
        professional employees, if this communication is a part of the 
        employee's work assignment.  This subdivision does not prevent 
        communication between public post-secondary employers and 
        post-secondary professional employees, other than through the 
        exclusive representative, regarding policies and matters that 
        are not terms and conditions of employment. 
           Sec. 10.  Minnesota Statutes 1994, section 363.03, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EDUCATIONAL INSTITUTION.] It is an unfair 
        discriminatory practice: 
           (1) To discriminate in any manner in the full utilization 
        of or benefit from any educational institution, or the services 
        rendered thereby to any person because of race, color, creed, 
        religion, national origin, sex, age, marital status, status with 
        regard to public assistance, sexual orientation, or disability, 
        or to fail to ensure physical and program access for disabled 
        persons.  For purposes of this paragraph, program access 
        includes but is not limited to providing taped texts, 
        interpreters or other methods of making orally delivered 
        materials available, readers in libraries, adapted classroom 
        equipment, and similar auxiliary aids or services.  Program 
        access does not include providing attendants, individually 
        prescribed devices, readers for personal use or study, or other 
        devices or services of a personal nature. 
           (2) To exclude, expel, or otherwise discriminate against a 
        person seeking admission as a student, or a person enrolled as a 
        student because of race, color, creed, religion, national 
        origin, sex, age, marital status, status with regard to public 
        assistance, sexual orientation, or disability. 
           (3) To make or use a written or oral inquiry, or form of 
        application for admission that elicits or attempts to elicit 
        information, or to make or keep a record, concerning the race, 
        color, creed, religion, national origin, sex, age, marital 
        status, sexual orientation, or disability of a person seeking 
        admission, except as permitted by rules of the department. 
           (4) To make or use a written or oral inquiry or form of 
        application that elicits or attempts to elicit information, or 
        to keep a record concerning the race, color, national origin, 
        sex, age, or marital status of a person seeking admission, 
        unless the information is collected for purposes of evaluating 
        the effectiveness of recruitment, admissions, and other 
        educational policies, and is maintained separately from the 
        application. 
           Sec. 11.  Laws 1986, chapter 398, article 1, section 18, as 
        amended by Laws 1987, chapter 292, section 37; Laws 1989, 
        chapter 350, article 16, section 8; Laws 1990, chapter 525, 
        section 1; Laws 1991, chapter 208, section 2; and Laws 1993, 
        First Special Session chapter 2, article 6, section 2, is 
        amended to read: 
           Sec. 18.  [REPEALER.] 
           Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
        subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
        and 583.305, are repealed on July 1, 1995 1997. 
           Sec. 12.  Laws 1993, First Special Session chapter 2, 
        article 1, section 9, subdivision 6, is amended to read: 
        Subd. 6.  POST Board 
        Beginning in fiscal year 1996 1998, 
        money for law enforcement education 
        that is currently provided through the 
        POST board shall be provided through 
        general fund appropriations to be 
        calculated at the same initial base as 
        the previous POST funding, except that 
        the base adjustment for the community 
        colleges shall be $290,000.  The 
        legislature intends that penalty 
        surcharge dollars under Minnesota 
        Statutes, section 626.861, subdivision 
        1, shall continue to be appropriated to 
        the POST account for other lawful 
        purposes. 
           Sec. 13.  Laws 1994, chapter 643, section 69, is amended by 
        adding a subdivision to read: 
           Subd. 1a.  [FINANCING SOURCE REVIEW.] The task force shall 
        identify current library financing sources and make 
        recommendations on how to use the money more efficiently.  The 
        task force shall also identify additional financing sources.  By 
        February 1, 1996, the task force shall provide recommendations 
        to the legislature on financing structures that are designed to 
        promote cooperation and collaboration among all libraries. 
           Sec. 14.  Laws 1994, chapter 643, section 69, is amended by 
        adding a subdivision to read: 
           Subd. 1b.  [ELECTRONIC LIBRARY COORDINATION PLANNING.] The 
        task force shall build upon the leadership initiatives provided 
        by MINITEX and the post-secondary systems, relating to the 
        development of electronic library and information services, and 
        develop a vision of, and plans for, the coordinated use of 
        electronic storage and transmission in providing library and 
        information services.  The plans shall: 
           (1) explore the feasibility of consolidating the PALS and 
        LUMINA systems; 
           (2) explore and make recommendations about joint 
        acquisition of electronic access to information; 
           (3) plan for the coordinated use of electronic storage and 
        transmission in providing library and information services to 
        Minnesota post-secondary systems, public libraries, and 
        elementary and secondary school libraries, including appropriate 
        connections to the Internet and eventually to the national 
        information infrastructure; 
           (4) provide for, and make recommendations about, 
        appropriate governance and administrative structures, if needed; 
           (5) provide for approaches necessary to meet the needs of 
        distance learners; and 
           (6) identify, study, and make recommendations on any other 
        matters that the task force deems necessary for the coordination 
        and expansion of technologies in the provision of library and 
        information services. 
           The task force shall coordinate its work with the 
        telecommunications council, the government information access 
        council, the MINITEX advisory committee, and the advisory 
        council to the office of library development and services in the 
        department of education. 
           Sec. 15.  [CREDIT 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 of credits earned by students. 
           Sec. 16.  [COMPENSATION PLANS AND LABOR AGREEMENTS.] 
           In negotiating labor agreements that are collectively 
        bargained and compensation plans for all public higher education 
        system employees, the legislature expects the board of trustees 
        of the Minnesota state colleges and universities, the board of 
        regents of the University of Minnesota, the commissioner of 
        employee relations, and the legislative commission on employee 
        relations to achieve these goals: 
           (1) define the expected work activities and other 
        professional responsibilities of all employees in order to 
        increase course availability to students, to enhance 
        instructional quality, to ensure student access to faculty, and 
        to ensure that institution and system missions are served; 
           (2) reassess existing layoff procedures, tuition waivers, 
        layoff notices, employee transfers between campuses, employee 
        evaluations, and sabbaticals to ensure that institutional and 
        system missions are served; 
           (3) define reasonable work week and work year for full-time 
        employees to ensure that institutional and system missions are 
        served; and 
           (4) articulate a common understanding regarding when system 
        administrators may interact with employees outside of meet and 
        confer provisions in collective bargaining agreements. 
           Sec. 17.  [AKITA.] 
           Subdivision 1.  [INTENT.] The legislature intends to 
        provide opportunities for international programs that enhance 
        the global perspective and understanding of post-secondary 
        students.  However, with increasing fiscal constraints, the 
        legislature intends that these programs operate in an efficient 
        and effective manner.  
           Subd. 2.  [PLAN.] The state university board and the board 
        of trustees of the state colleges and universities shall begin 
        immediately to prepare and implement a plan to make the Akita 
        program more efficient.  The plan shall provide for the 
        expansion of enrollment in the Akita program and, by the 
        1997-1998 academic year, for the reduction of the per full year 
        enrollment expenditure level associated with the program.  The 
        boards shall work in cooperation with the state university 
        campuses and other Minnesota colleges and universities to 
        determine the reasons for the low enrollment levels in the Akita 
        program and to find efficient ways to address these 
        enrollments.  The boards shall also examine the uses of state 
        money in support of the program, determine more efficient ways 
        to use state resources, and seek more nonstate funding.  As part 
        of the plan, the boards shall specify the interim and final 
        measures that will be used to determine the effectiveness of the 
        plan, including appropriate programmatic cost comparisons and 
        specific targets for reduction of state expenditures. 
           Subd. 3.  [RECOMMENDATIONS.] By September 15, 1995, the 
        board of trustees shall forward its recommendations and 
        performance measures to the chairs of the higher education 
        divisions of the senate and house education committees.  As part 
        of its 1998-1999 biennial budget request, the board of trustees 
        shall include documentation on the effectiveness of its plan 
        including the Akita program's performance on each of the 
        measures in the plan. 
           Sec. 18.  [FACILITY USE.] 
           The post-secondary governing boards and their campuses 
        shall determine ways in which campus facilities can be used more 
        efficiently in order to (1) reduce the need for state physical 
        plant investments, and (2) to improve students' opportunities 
        for timely completion.  The boards shall consider schedule 
        changes such as expanded summer terms, increased weekend and 
        evening courses, short courses, and other scheduling 
        alternatives.  As part of their 1998-1999 biennial budget 
        requests, the boards shall demonstrate the changes that their 
        campuses have made or plan to make, and the performance measures 
        that will be used to determine the effectiveness of these 
        changes. 
           Sec. 19.  [INTERPRETING AND TRANSLATING PROGRAM.] 
           Subdivision 1.  [CHARGE.] The board of trustees of the 
        state colleges and universities shall develop a model 
        instruction program in spoken language interpreting and 
        translating services, as provided in this section.  In 
        developing the program, the board shall consult with the 
        University of Minnesota; non-English speaking communities; the 
        prosecution, defense, and judiciary systems; the interpreting 
        and translating communities; battered women's programs; and 
        government and nonprofit agencies providing human, social, and 
        health services. 
           Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
        the following definitions apply. 
           (a) "Interpreter" means any person who is readily able to 
        comprehend a message uttered in one language and reexpress that 
        message in a spoken form in a second language without modifying 
        the meaning in any significant way. 
           (b) "Translator" means any person who is readily able to 
        comprehend a message written in one language and reexpress the 
        message in a written form in a second language without modifying 
        the meaning in any significant way. 
           Subd. 3.  [BOARD RESPONSIBILITIES.] (a) The board shall 
        determine the need for, and recommend programs to meet 
        educational training needs in, spoken language interpreting and 
        translating services at the certificate level, associate degree 
        level, or both.  Courses shall be designed to articulate with 
        advanced education and training programs in the field.  The 
        curriculum shall, at a minimum, include instruction in: 
           (1) spoken language proficiency to meet potential client 
        needs; 
           (2) technical terminology needed for specialization; 
           (3) ethical standards involved in interpreting and 
        translating; 
           (4) background in the culture of the language relevant to 
        the interpretation and translation; 
           (5) internship needs and other practical opportunities to 
        serve clients; and 
           (6) fundamental skills in effective interpreting and 
        translating. 
           (b) The board shall review and recommend programs to train 
        providers in the appropriate use of interpreters and translators.
           (c) The board shall: 
           (1) collect and review recent data to determine the number 
        of non-English speaking residents and the native language of 
        these persons; 
           (2) determine geographic areas in Minnesota with the 
        greatest need for spoken language and translator services; 
           (3) determine the most efficient and effective ways of 
        delivering the program to areas of need; 
           (4) recommend what provider or providers can best implement 
        and deliver the program, with emphasis on encouraging 
        collaborative efforts; 
           (5) determine the cost of implementing and providing the 
        program, including the possibility of competitive grants; and 
           (6) consult with persons developing the statewide judicial 
        interpreter certification and training program under Laws 1994, 
        chapter 636, article 1, section 14. 
           (d) The board shall transmit its recommendations, together 
        with its plan to develop appropriate programs, to the 
        appropriate committees of the legislature by January 20, 1996. 
           Sec. 20.  [CAREER PLANNING AND JOB PLACEMENT INFORMATION.] 
           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 job placement history and projected demand to students 
        at the time the student declares a major program or field of 
        study.  The University of Minnesota campuses are requested to 
        develop and implement similar plans. 
           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.  The plan 
        must provide for students to indicate in writing that they 
        received the information. 
           Subd. 3.  [OUTCOMES.] As part of its biennial budget 
        request, the board of trustees shall demonstrate its efforts to 
        better inform students about careers and provide a summary of 
        job placement data. 
           Sec. 21.  [SABBATICALS.] 
           The board of trustees of the Minnesota state colleges and 
        universities shall develop policies and procedures to ensure 
        that the granting of sabbaticals is for the purpose of 
        encouraging special studies, investigations, and research that 
        contribute to the quality of education, scholarship, and 
        service.  To fulfill this purpose, the policies shall primarily 
        grant sabbaticals to faculty and to administrators with academic 
        responsibilities.  Additionally, the policies shall provide for 
        annual summary reporting to the board of all sabbatical plans 
        approved by a president or the chancellor, as appropriate, with 
        final summary reports of results achieved and the salary and 
        other costs paid on behalf of the faculty members or 
        administrators during the sabbaticals.  The board of regents of 
        the University of Minnesota is requested to review its 
        sabbatical policies, and to make any necessary adjustments to 
        meet the purpose described in this section, and also provide for 
        the reporting of sabbatical related information. 
           Sec. 22.  [REPEALER.] 
           Minnesota Statutes 1994, sections 136A.16, subdivision 11; 
        137.31, subdivision 6; 137.35, subdivision 4; and 137.38, are 
        repealed. 
           Sec. 23.  [EFFECTIVE DATES.] 
           Section 1, paragraph (c), is effective July 1, 1995, for 
        students beginning classes as freshmen in a Minnesota public 
        post-secondary institution.  Section 17 is effective the day 
        following final enactment. 
                                   ARTICLE 3 
               HIGHER EDUCATION SERVICES OFFICE AND FINANCIAL AID 
           Section 1.  Minnesota Statutes 1994, section 126.56, is 
        amended to read: 
           126.56 [SUMMER SCHOLARSHIPS FOR ACADEMIC ENRICHMENT.] 
           Subdivision 1.  [ESTABLISHMENT.] A scholarship program is 
        established to enable secondary students to attend summer 
        programs sponsored by post-secondary institutions. 
           Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
        scholarship, a student shall: 
           (1) be a United States citizen or permanent resident of the 
        United States; 
           (2) be a resident of Minnesota; 
           (3) attend an eligible program; 
           (4) have completed at least one year of secondary school 
        but not have graduated from high school; 
           (5) have earned at least a B average during the semester or 
        quarter prior to application, or have earned at least a B 
        average during the semester or quarter prior to application in 
        the academic subject area applicable to the summer program the 
        student wishes to attend; and 
           (6) demonstrate need for financial assistance. 
           Subd. 3.  [FINANCIAL NEED.] Need for financial assistance 
        shall be based on family income, family size, and special 
        necessary expenditures of the family.  The higher 
        education coordinating board services office shall review the 
        financial need of each pupil to meet the actual costs of 
        attending the summer program, as determined by the institution 
        sponsoring the summer program.  The board office shall award 
        scholarships within the limits of the appropriation for this 
        section.  If the amount appropriated is insufficient, the board 
        office shall allocate the amount appropriated in the manner it 
        determines.  A scholarship shall not exceed $1,000. 
           Subd. 4.  [ELIGIBLE INSTITUTIONS.] A scholarship may be 
        used only at an eligible institution.  A Minnesota public 
        post-secondary institution is an eligible institution.  A 
        private post-secondary institution is eligible if it: 
           (1) is accredited by the North Central Association of 
        Colleges; 
           (2) offers an associate or baccalaureate degree program 
        approved under section 136A.65, subdivision 1; and 
           (3) is located in Minnesota. 
           Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
        only for an eligible program.  To be eligible, a program must: 
           (1) provide, as its primary purpose, academic instruction 
        for student enrichment in curricular areas including, but not 
        limited to, communications, humanities, social studies, social 
        science, science, mathematics, art, or foreign languages; 
           (2) not be offered for credit to post-secondary students; 
           (3) not provide remedial instruction; 
           (4) meet any other program requirements established by the 
        state board of education and the higher education coordinating 
        board services office; and 
           (5) be approved by the commissioner.  
           Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
        assist the state board of education in approving eligible 
        programs and shall assist the higher education coordinating 
        board services office in planning, implementing, and evaluating 
        the scholarship program.  The committee shall consist of 11 
        members, to include the executive director of the higher 
        education coordinating board services office or a 
        representative, the commissioner of education or a 
        representative, two secondary school administrators and two 
        secondary teachers appointed by the commissioner of education, 
        the executive director of the academic excellence foundation, a 
        private college representative appointed by the president of the 
        Minnesota private college council, a community college 
        representative appointed by the community college 
        chancellor, and a state university representative appointed by 
        the state university chancellor of the Minnesota state colleges 
        and universities, and a University of Minnesota representative 
        appointed by the president of the University of Minnesota.  The 
        committee expires June 30, 1995 1997. 
           Subd. 6.  [INFORMATION.] The higher education coordinating 
        board services office, in cooperation with the academic 
        excellence foundation, shall assemble and distribute information 
        about scholarships and eligible programs.  
           Subd. 7.  [ADMINISTRATION.] The higher education 
        coordinating board services office and commissioner shall 
        determine the time and manner for scholarship applications, 
        awards, and program approval. 
           Subd. 8.  [EXEMPTION FROM RULEMAKING.] Sections 14.01 to 
        14.47 do not apply to this section. 
           Sec. 2.  Minnesota Statutes 1994, section 126.663, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MODEL LEARNER OUTCOMES.] The department shall 
        develop and maintain model learner outcomes in state board 
        identified subject areas, including career vocational learner 
        outcomes.  The department shall make learner outcomes available 
        upon request by a district.  Learner outcomes shall be for 
        pupils in early childhood through grade 12.  The department 
        shall consult with each of the public post-secondary systems and 
        with the higher education coordinating board in developing model 
        learner outcomes appropriate for entry into post-secondary 
        institutions.  Learner outcomes shall include thinking and 
        problem solving skills. 
           Sec. 3.  Minnesota Statutes 1994, section 135A.08, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [COURSE EQUIVALENCY.] The regents of the 
        University of Minnesota, state university board, state board for 
        community colleges, and state board of technical colleges, in 
        conjunction with the higher education coordinating board, and 
        the trustees of the Minnesota state colleges and universities 
        shall develop and maintain course equivalency guides for use 
        between institutions that have a high frequency of transfer.  
        Subject to the determination of the higher education 
        coordinating board made in consultation with the state board of 
        technical colleges, Course equivalency guides shall not be 
        required for vocational technical programs that have not been 
        divided into identifiable courses.  The governing boards of 
        private institutions that grant associate and baccalaureate 
        degrees and that have a high frequency of transfer students are 
        requested to participate in developing these guides. 
           Sec. 4.  Minnesota Statutes 1994, section 135A.08, 
        subdivision 2, is amended to read: 
           Subd. 2.  [COMMON NUMBERING.] The regents of the University 
        of Minnesota, state university board, state board for community 
        colleges, and state board of technical colleges, in conjunction 
        with the higher education coordinating board, and the trustees 
        of the Minnesota state colleges and universities shall develop 
        and maintain a common numbering convention to distinguish 
        remedial, lower division, upper division, and graduate level 
        coursework.  The governing boards of private institutions that 
        grant associate and baccalaureate degrees are requested to 
        cooperate in the development of this numbering convention. 
           Sec. 5.  Minnesota Statutes 1994, section 135A.10, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POLICY AND PROCEDURES TO AWARD CREDIT.] 
        The board of regents of the University of Minnesota, the state 
        university board, and the state board for community colleges 
        board of trustees of the Minnesota state colleges and 
        universities shall each develop a clear and uniform policy for 
        its system for awarding post-secondary credit toward a degree 
        for a student who earns an acceptable score on an advanced 
        placement program examination.  Each policy must include 
        procedures to inform students and prospective students about 
        credit award and procedures to assure implementation on each 
        campus.  The higher education coordinating board shall assist in 
        developing the policy. 
           Sec. 6.  Minnesota Statutes 1994, section 135A.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [APPLICABILITY.] This section applies 
        to the higher education coordinating board, each public 
        post-secondary governing board, and each public post-secondary 
        institution, and each school board that operates a technical 
        college.  
           Sec. 7.  Minnesota Statutes 1994, section 135A.15, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [POLICY REQUIRED.] The governing board of 
        each public technical college, community college, or state 
        university trustees of the Minnesota state colleges and 
        universities shall, and the University of Minnesota is requested 
        to, adopt a clear, understandable written policy on sexual 
        harassment and sexual violence that informs victims of their 
        rights under the crime victims bill of rights, including the 
        right to assistance from the crime victims reparations board and 
        the office of the crime victim ombudsman.  The policy must apply 
        to students and employees and must provide information about 
        their rights and duties.  The policy must apply to criminal 
        incidents occurring on property owned by the post-secondary 
        system or institution in which the victim is a student or 
        employee of that system or institution.  It must include 
        procedures for reporting incidents of sexual harassment or 
        sexual violence and for disciplinary actions against violators.  
        During student registration, each technical college, community 
        college, or state university shall, and the University of 
        Minnesota is requested to, provide each student with information 
        regarding its policy.  A copy of the policy also shall be posted 
        at appropriate locations on campus at all times.  Each private 
        post-secondary institution that enrolls students who receive 
        state financial aid is an eligible institution as defined in 
        section 136A.101, subdivision 4, must adopt a policy that meets 
        the requirements of this section.  The higher education 
        coordinating board shall coordinate the policy development of 
        the systems and institutions and periodically provide for review 
        and necessary changes in the policies. 
           Sec. 8.  Minnesota Statutes 1994, section 135A.153, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CREATION AND DESIGNATION.] The higher 
        education center on violence and abuse is created.  The higher 
        education center on violence and abuse shall be located at and 
        managed by a public or private post-secondary institution in 
        Minnesota.  The higher education coordinating board shall 
        designate the location of the center following review of 
        proposals from potential higher education sponsors. 
           Sec. 9.  Minnesota Statutes 1994, section 136A.01, is 
        amended to read: 
           136A.01 [HIGHER EDUCATION SERVICES OFFICE.] 
           Subdivision 1.  [CREATION.] A coordinating board An office 
        for higher education in the state of Minnesota, to be known as 
        the Minnesota higher education coordinating board services 
        office or HESO, is hereby created. 
           Subd. 2.  [RESPONSIBILITIES.] The higher education services 
        office is responsible for: 
           (1) necessary state level administration of financial aid 
        programs, including accounting, auditing, and disbursing state 
        and federal financial aid funds, and reporting on financial aid 
        programs to the governor and the legislature; 
           (2) approval, registration, licensing, and financial aid 
        eligibility of private collegiate and career schools, under 
        sections 136A.61 to 136A.71 and chapter 141; 
           (3) administering the telecommunications council under Laws 
        1993, First Special Session chapter 2, article 5, section 2, the 
        Learning Network of Minnesota, and the statewide library task 
        force; 
           (4) negotiating and administering reciprocity agreements; 
           (5) publishing and distributing financial aid information 
        and materials, and other information and materials under section 
        136A.87, to students and parents; 
           (6) collecting and maintaining student enrollment and 
        financial aid data; 
           (7) administering the federal programs that affect students 
        and institutions on a statewide basis; and 
           (8) prescribing policies, procedures, and rules under 
        chapter 14 necessary to administer the programs under its 
        supervision. 
           Sec. 10.  [136A.011] [HIGHER EDUCATION SERVICES COUNCIL.] 
           Subdivision 1.  [MEMBERSHIP.] The higher education services 
        council consists of eight citizens and one student appointed by 
        the governor.  In making appointments, the governor shall 
        consider the geographic, gender, and ethnic diversity in the 
        state.  No more than five members of the council may belong to 
        the same political party.  The student member must be a 
        full-time student enrolled in a Minnesota post-secondary 
        institution at the time of appointment.  The student advisory 
        council shall recommend two to four candidates for the student 
        position.  The governor is not bound by these recommendations.  
        A nonstudent member of the council may not be an employee of or 
        receive compensation from a public or private post-secondary 
        institution while serving on the council.  A student member may 
        receive compensation as a student body officer or may be a 
        recipient of financial aid, including work study, but may not 
        otherwise be employed or compensated by a post-secondary 
        institution while serving on the council. 
           The term of each citizen member is six years, and that of 
        the student member is two years.  As nearly as possible, 
        one-third of the terms of the members must expire every two 
        years.  The compensation, removal of voting members, and filling 
        of vacancies among voting members on the council is governed by 
        section 15.0575, subdivisions 3, 4, and 5. 
           Subd. 2.  [DUTIES.] The council shall: 
           (1) appoint the director of the higher education services 
        office, as provided in section 136A.03; 
           (2) provide advice and review regarding the performance of 
        the higher education services office in its duties and in any 
        policies, procedures, or rules the office prescribes to perform 
        its duties; and 
           (3) communicate with and make recommendations to the 
        governor and the legislature. 
           Sec. 11.  Minnesota Statutes 1994, section 136A.03, is 
        amended to read: 
           136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
           The higher education coordinating board may appoint an 
        executive secretary or director as its principal executive 
        officer, and such other officers and employees as it may deem 
        necessary to carry out its duties.  The executive secretary or 
        director of the higher education services office shall possess 
        such the powers and perform such the duties as are delegated 
        prescribed by the board higher education services council and 
        shall serve in the unclassified service of the state civil 
        service.  The salary of the executive director shall be 
        established pursuant by the higher education services council 
        according to section 15A.081, subdivision 1.  The executive 
        director shall be a person qualified by training and ability or 
        experience in the field of higher education or in educational 
        financial aid administration.  The board director may also 
        appoint other officers and professional employees who shall 
        serve in the unclassified service of the state civil service and 
        fix the salaries thereof which shall be commensurate with 
        salaries in the classified service.  All other employees shall 
        be in the classified civil service.  
           An officer or professional employee in the unclassified 
        service as provided in this section is a person who has studied 
        higher education or a related field at the graduate level or has 
        similar experience and who is qualified for a career in some 
        aspect financial aid and other aspects of higher education and 
        for activities in keeping with the planning and administrative 
        responsibilities of the board office and who is appointed to 
        assume responsibility for administration of educational programs 
        or research in matters of higher education. 
           Sec. 12.  [136A.031] [ADVISORY GROUPS.] 
           Subdivision 1.  [APPOINTMENT.] The higher education 
        services council may appoint advisory task forces as necessary 
        to assist in the administration of the higher education services 
        office responsibilities.  The task forces' expiration and the 
        terms, compensation, and removal of members are as provided in 
        section 15.059. 
           Subd. 2.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
        education advisory council (HEAC) is established.  The HEAC is 
        composed of the president and the senior vice-president for 
        academic affairs of the University of Minnesota; the chancellor 
        of the Minnesota state colleges and universities; the associate 
        vice-chancellors of the state universities, community colleges, 
        and technical colleges; the commissioner of education; the 
        president of the private college council; and a representative 
        from the Minnesota association of private post-secondary 
        schools.  The HEAC shall (1) bring to the attention of the 
        higher education services council any matters that the HEAC 
        deems necessary, and (2) review and comment upon matters before 
        the council.  The council shall refer all proposals to the HEAC 
        before submitting recommendations to the governor and the 
        legislature.  The council shall provide time for a report from 
        the HEAC at each meeting of the council. 
           Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
        council (SAC) to the higher education services council is 
        established.  The members of SAC shall include the chair of the 
        University of Minnesota student senate, the state chair of the 
        Minnesota state university student association, the president of 
        the Minnesota community college student association, the 
        president of the Minnesota technical college student 
        association, the president of the Minnesota association of 
        private college students, and a student who is enrolled in a 
        private vocational school, to be appointed by the Minnesota 
        association of private post-secondary schools.  A member may be 
        represented by a student designee who attends an institution 
        from the same system that the absent member represents.  The SAC 
        shall select one of its members to serve as chair. 
           The higher education services council shall inform the SAC 
        of all matters related to student issues under consideration and 
        shall refer all proposals to the SAC before taking action or 
        sending the proposals to the governor or legislature.  The SAC 
        shall report to the higher education services council quarterly 
        and at other times that the SAC considers desirable.  The SAC 
        shall determine its meeting times, but it shall also meet with 
        the council within 30 days after the director's request for a 
        meeting. 
           The SAC shall: 
           (1) bring to the attention of the higher education services 
        council any matter that the SAC believes needs the attention of 
        the council; 
           (2) make recommendations to the higher education services 
        council as it finds appropriate; 
           (3) appoint student members to the higher education 
        services council advisory groups as provided in subdivision 4; 
        and 
           (4) provide any reasonable assistance to the council. 
           Subd. 4.  [STUDENT REPRESENTATION.] If requested by the 
        SAC, the director must place at least one student from an 
        affected educational system on any task force created under 
        subdivision 1.  The student member or members shall be appointed 
        by the SAC. 
           Sec. 13.  Minnesota Statutes 1994, section 136A.043, is 
        amended to read: 
           136A.043 [INFORMATION TECHNOLOGY.] 
           The higher education coordinating board services office 
        shall initiate activities to coordinate state policy development 
        regarding the use of information technology in post-secondary 
        education instruction and administration.  These activities 
        shall include at least the following:  a survey, conducted in 
        collaboration with the post-secondary education systems, of 
        existing information technology use and needs of institutions 
        and regions; initiation of collaborative activities to share 
        information and resources; and provision of opportunities for 
        post-secondary education policy makers to review issues and 
        needs for policy development. 
           Sec. 14.  Minnesota Statutes 1994, section 136A.05, 
        subdivision 1, is amended to read: 
           Subdivision 1.  All public institutions of higher 
        education, all school districts providing post-secondary 
        vocational education, and all state departments and agencies 
        shall cooperate with and supply information requested by the 
        higher education coordinating board services office in order to 
        enable it to carry out and perform its duties.  Private 
        post-secondary institutions are requested to cooperate and 
        provide information. 
           Sec. 15.  Minnesota Statutes 1994, section 136A.07, is 
        amended to read: 
           136A.07 [REPORTS.] 
           The higher education coordinating board services office 
        shall report periodically to the governor and legislature 
        concerning its activities from time to time and may report in 
        connection therewith to the governing body of each institution 
        of higher education in the state, both public and private. It 
        shall file a formal report with the governor not later than 
        October 15 of and legislature each even-numbered year so that 
        the information therein contained, including recommendations, 
        may be embodied in the governor's budget message to the 
        legislature.  It shall also report to the legislature not later 
        than November 15 of each even-numbered year. 
           Sec. 16.  Minnesota Statutes 1994, section 136A.08, is 
        amended to read: 
           136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT 
        TUITION WITH OTHER STATES OR PROVINCES.] 
           Subdivision 1.  [DEFINITIONS.] For the purposes of this 
        section, the terms "province" and "provincial" mean the Canadian 
        province of Manitoba. 
           Subd. 2.  [AUTHORIZATION.] The Minnesota higher education 
        coordinating board services office, in consultation with the 
        commissioner of finance and each affected public post-secondary 
        board, may enter into agreements, on subjects that include 
        remission of nonresident tuition for designated categories of 
        students at public post-secondary institutions, with appropriate 
        state or provincial agencies and public post-secondary 
        institutions in other states or provinces.  The agreements shall 
        be for the purpose of the mutual improvement of educational 
        advantages for residents of this state and other states or 
        provinces with whom agreements are made.  
           Subd. 3.  [WISCONSIN.] A higher education reciprocity 
        agreement with the state of Wisconsin may include provision for 
        the transfer of funds between Minnesota and Wisconsin provided 
        that an income tax reciprocity agreement between Minnesota and 
        Wisconsin is in effect for the period of time included under the 
        higher education reciprocity agreement.  If this provision is 
        included, the amount of funds to be transferred shall be 
        determined according to a formula which is mutually acceptable 
        to the board office and a duly designated agency representing 
        Wisconsin.  The formula shall recognize differences in tuition 
        rates between the two states and the number of students 
        attending institutions in each state under the agreement.  Any 
        payments to Minnesota by Wisconsin shall be deposited by the 
        board office in the general fund of the state treasury.  The 
        amount required for the payments shall be certified by 
        the executive director of the higher education coordinating 
        board office to the commissioner of finance annually. 
           Subd. 4.  [NORTH DAKOTA; SOUTH DAKOTA.] A reciprocity 
        agreement with North Dakota may include provision for the 
        transfer of funds between Minnesota and North Dakota.  If 
        provision for transfer of funds between the two states is 
        included, the amount of funds to be transferred shall be 
        determined according to a formula which is mutually acceptable 
        to the board office and a duly designated agency representing 
        North Dakota.  In adopting a formula, the board office shall 
        consider tuition rates in the two states and the number of 
        students attending institutions in each state under the 
        agreement.  Any payment to Minnesota by North Dakota shall be 
        deposited by the board office in the general fund.  The amount 
        required for the payments shall be certified by the executive 
        director of the higher education coordinating board office to 
        the commissioner of finance annually.  All provisions in this 
        subdivision pertaining to North Dakota shall also be applied to 
        South Dakota, and all authority and conditions granted for 
        higher education reciprocity with North Dakota are also granted 
        for higher education reciprocity with South Dakota. 
           Subd. 5.  [FINANCIAL AID.] The board office may enter into 
        an agreement, with a state or province with which it has 
        negotiated a reciprocity agreement for tuition, to permit 
        students to receive student aid awards from the student's state 
        or province of residence for attending an eligible institution 
        in the other state or province. 
           Subd. 6.  [APPROVAL.] An agreement made by the board office 
        under this section is not valid as to a particular institution 
        without the approval of that institution's state or provincial 
        governing board.  A valid agreement under this subdivision that 
        incurs additional financial liability to the state or to any of 
        the Minnesota public post-secondary boards, beyond enrollment 
        funding adjustments, must be submitted to the commissioner of 
        finance and to the chairs of the higher education finance 
        divisions of the senate and house for review.  The agreement 
        remains valid unless it is disapproved in law. 
           Sec. 17.  Minnesota Statutes 1994, section 136A.101, 
        subdivision 2, is amended to read: 
           Subd. 2.  "Board" "Office" means the Minnesota higher 
        education coordinating board services office. 
           Sec. 18.  Minnesota Statutes 1994, section 136A.101, 
        subdivision 3, is amended to read: 
           Subd. 3.  "Director" means the executive director of the 
        Minnesota higher education coordinating board services office. 
           Sec. 19.  Minnesota Statutes 1994, section 136A.101, 
        subdivision 5, is amended to read: 
           Subd. 5.  "Financial need" means the demonstrated need of 
        the applicant for financial assistance to meet the actual 
        recognized costs of attending the eligible institution of choice 
        as determined from financial information on the applicant and, 
        if required, on the applicant's parents, by a college 
        scholarship service or equivalent service under criteria 
        established by the board the federal need analysis. 
           Sec. 20.  Minnesota Statutes 1994, section 136A.101, 
        subdivision 8, is amended to read: 
           Subd. 8.  "Resident student" means a student who meets one 
        of the following conditions:  
           (1) an independent student who has resided in Minnesota for 
        purposes other than post-secondary education for at least 12 
        months without being enrolled at a post-secondary educational 
        institution for more than five credits in any term; 
           (2) a dependent student whose parent or legal guardian 
        resides in Minnesota at the time the student applies; 
           (3) a student who graduated from a Minnesota high school, 
        if the student was a resident of Minnesota during the student's 
        period of attendance at the Minnesota high school; or 
           (4) a student who, after residing in the state for a 
        minimum of one year, earned a high school equivalency 
        certificate in Minnesota. 
           Sec. 21.  Minnesota Statutes 1994, section 136A.101, 
        subdivision 10, is amended to read: 
           Subd. 10.  "Satisfactory academic progress" means that: 
           (1) at the end of a point between a student's first and 
        second academic year of attendance at an institution:, 
           (1) the student has at least a cumulative grade point 
        average of C or its equivalent, or academic standing consistent 
        with its the institution's graduation requirements; or and 
           (2) The student's failure to have at least a cumulative 
        grade point average of C or its equivalent, or academic standing 
        consistent with its graduation requirements, was caused by (a) 
        the death of a relative of the student; (b) an injury or illness 
        of the student; or (c) other special circumstances.  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. 22.  Minnesota Statutes 1994, 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) a contribution by the grant applicant the assigned 
        student responsibility of at least 50 percent of the cost of 
        attending the institution of the applicant's choosing; 
           (2) for an applicant who is not an independent student, a 
        contribution by the grant applicant's parents, the assigned 
        family responsibility, as determined by a standardized the 
        federal need analysis, which for (i) dependent students, is the 
        parental contribution as calculated by the federal need 
        analysis, and for (ii) independent students, is the student 
        contribution as determined by the federal need analysis; and 
           (3) the amount of a federal Pell grant award for which the 
        grant applicant is eligible.  
           The minimum financial stipend is $100 $300 per academic 
        year.  
           Sec. 23.  Minnesota Statutes 1994, section 136A.121, 
        subdivision 6, is amended to read: 
           Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
        attendance consists of allowances specified by the board in law 
        for room and board and miscellaneous expenses, and 
           (1) for public institutions, tuition and fees charged by 
        the institution; or 
           (2) for private institutions, an allowance for tuition and 
        fees equal to the lesser of the actual tuition and fees charged 
        by the institution, or the instructional costs per full-year 
        equivalent student in comparable public institutions private 
        institution tuition maximums established in law. 
           (b) For the purpose of paragraph (a), clause (2), 
        "comparable public institutions" to both the private institution 
        tuition maximum for two- and four-year, private, residential, 
        liberal arts, degree-granting colleges and universities must be 
        the same. 
           (c) For a student attending less than full time, the board 
        office shall prorate the recognized cost of attendance to the 
        actual number of credits for which the student is enrolled. 
           The recognized cost of attendance for a student who is 
        confined to a Minnesota correctional institution shall consist 
        of the tuition and fee component in clause (1) or (2), with no 
        allowance for living expenses. 
           Sec. 24.  Minnesota Statutes 1994, section 136A.121, 
        subdivision 9, is amended to read: 
           Subd. 9.  [AWARDS.] An undergraduate student who meets the 
        board's office's requirements is eligible to apply for and 
        receive a grant in any year of undergraduate study unless the 
        student has obtained a baccalaureate degree or previously has 
        been enrolled full time or the equivalent for eight semesters or 
        12 quarters, excluding courses taken from a Minnesota school or 
        post-secondary institution which is not participating in the 
        state grant program and from which a student transferred no 
        credit. 
           Sec. 25.  Minnesota Statutes 1994, section 136A.121, is 
        amended by adding a subdivision to read: 
           Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
        grants for four consecutive quarters or three consecutive 
        semesters during the course of a single fiscal year.  In 
        calculating a state grant for the fourth quarter or third 
        semester, the office must use the same calculation as it would 
        for any other term, except that the calculation must subtract 
        any Pell grant for which a student would be eligible even if the 
        student has exhausted the Pell grant for that fiscal year. 
           Sec. 26.  Minnesota Statutes 1994, section 136A.121, 
        subdivision 16, is amended to read: 
           Subd. 16.  [HOW APPLIED; ORDER.] Grants awarded under this 
        section and sections 136A.132 to 136A.1354 must be applied to 
        educational costs in the following order:  tuition, fees, books, 
        supplies, and other expenses.  Unpaid portions of the awards 
        revert to the grant account. 
           Sec. 27.  Minnesota Statutes 1994, section 136A.125, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
        child care grant must be based on: 
           (1) the income of the applicant and the applicant's spouse, 
        if any; 
           (2) the number in the applicant's family, as defined by the 
        board; and 
           (3) the number of eligible children in the applicant's 
        family.  
           The maximum award to the applicant shall be $1,500 $1,700 
        for each eligible child per academic year.  The board office 
        shall prepare a chart to show the amount of a grant that will be 
        awarded per child based on the factors in this subdivision.  The 
        chart shall include a range of income and family size. 
           Sec. 28.  Minnesota Statutes 1994, section 136A.125, 
        subdivision 6, is amended to read: 
           Subd. 6.  [YEARLY ALLOCATIONS TO INSTITUTIONS.] The board 
        office shall base yearly allocations on the need for funds using 
        relevant factors as determined by the board office in 
        consultation with the institutions.  Up to five percent of 
        the allocation money spent on students' child care awards, as 
        determined by the board office, may be used for an institution's 
        administrative expenses related to the child care grant 
        program.  Any money designated, but not used, for this purpose 
        must be reallocated to child care grants.  An institution may 
        carry forward or backward ten percent of its annual allocation 
        to be used for awards in the previous or subsequent academic 
        year. 
           Sec. 29.  Minnesota Statutes 1994, section 136A.1359, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
        established under the authority of the higher education 
        coordinating board services office to provide grants to students 
        who are persons of color who are entering or enrolled in an 
        educational program that leads to licensure as a registered 
        nurse, or advanced nursing education. 
           Sec. 30.  Minnesota Statutes 1994, section 136A.1359, 
        subdivision 2, is amended to read: 
           Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
        a student shall be:  
           (1) a citizen of the United States or permanent resident of 
        the United States; 
           (2) a resident of the state of Minnesota; 
           (3) an Asian Pacific-American, African-American, American 
        Indian, or Hispanic-American (Latino, Chicano, or Puerto Rican); 
           (4) entering or enrolled in a nursing program in Minnesota 
        that leads to licensure as a registered nurse, a baccalaureate 
        degree in nursing, a master's degree in nursing, or program of 
        advanced nursing education; and 
           (5) eligible under any additional criteria established by 
        the school, college, or program of nursing in which the student 
        is enrolled.  Students applying for a grant must be willing to 
        practice in Minnesota for at least three years following 
        licensure. 
           The grant must be awarded for one academic year but is 
        renewable for a maximum of six semesters or nine quarters of 
        full-time study, or their equivalent.  
           Sec. 31.  Minnesota Statutes 1994, section 136A.1359, 
        subdivision 3, is amended to read: 
           Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
        school, college, or program of nursing that wishes to 
        participate in the student nursing grant program shall apply to 
        the higher education coordinating board services office for 
        grant money, according to policies established by the board 
        office.  A school, college, or program of nursing shall 
        establish criteria to use in awarding the grants.  The criteria 
        must include consideration of the likelihood of a student's 
        success in completing the nursing educational program and must 
        give priority to students with the greatest financial 
        need.  Grants must be $2,500 per year.  Each grant must be for a 
        minimum of $2,000 but not exceed $4,000.  Each school, college, 
        or program of nursing shall agree that the money awarded through 
        this grant program must not be used to replace any other grant 
        or scholarship money for which the student would be otherwise 
        eligible. 
           Sec. 32.  Minnesota Statutes 1994, section 136A.15, 
        subdivision 3, is amended to read: 
           Subd. 3.  "Board" "Office" means the Minnesota higher 
        education coordinating board services office. 
           Sec. 33.  Minnesota Statutes 1994, section 136A.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  "Director" means the executive director of the 
        Minnesota higher education coordinating board services office. 
           Sec. 34.  Minnesota Statutes 1994, section 136A.16, 
        subdivision 1, is amended to read: 
           Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
        higher education coordinating board services office is 
        designated as the administrative agency for carrying out the 
        purposes and terms of sections 136A.15 to 136A.1702.  The board 
        office may establish one or more loan programs. 
           Sec. 35.  Minnesota Statutes 1994, section 136A.233, 
        subdivision 2, is amended to read: 
           Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
        to 136A.233, the words defined in this subdivision have the 
        meanings ascribed to them. 
           (a) "Eligible student" means a Minnesota resident enrolled 
        or intending to enroll at least half time in a degree, diploma, 
        or certificate program in a Minnesota post-secondary institution.
           (b) "Minnesota resident" means a student who meets the 
        conditions in section 136A.101, subdivision 8. 
           (c) "Financial need" means the need for financial 
        assistance in order to attend a post-secondary institution as 
        determined by a post-secondary institution according to 
        guidelines established by the higher education coordinating 
        board services office. 
           (d) "Eligible employer" means any eligible post-secondary 
        institution and any nonprofit, nonsectarian agency or state 
        institution located in the state of Minnesota, including state 
        hospitals, and also includes a handicapped person or a person 
        over 65 who employs a student to provide personal services in or 
        about the residence of the handicapped person or the person over 
        65. 
           (e) "Eligible post-secondary institution" means any 
        post-secondary institution eligible for participation in the 
        Minnesota state grant program as specified in section 136A.101, 
        subdivision 4. 
           (f) "Independent student" has the meaning given it in the 
        Higher Education Act of 1965, United States Code, title 20, 
        section 1070a-6, and applicable regulations. 
           (g) "Half-time" for undergraduates has the meaning given in 
        section 136A.101, subdivision 7b, and for graduate students is 
        defined by the institution. 
           Sec. 36.  Minnesota Statutes 1994, section 136A.26, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] The Minnesota higher 
        education facilities authority shall consist of eight members 
        appointed by the governor with the advice and consent of the 
        senate, and the executive director of the Minnesota higher 
        education coordinating board.  The executive director of the 
        coordinating board may designate a member of the director's 
        staff to sit in the director's place as a member of the 
        authority a representative of the higher education services 
        office.  
           All members to be appointed by the governor shall be 
        residents of the state.  At least two members must reside 
        outside the metropolitan area as defined in section 473.121, 
        subdivision 2.  At least one of the members shall be a person 
        having a favorable reputation for skill, knowledge, and 
        experience in the field of state and municipal finance; and at 
        least one shall be a person having a favorable reputation for 
        skill, knowledge, and experience in the building construction 
        field; and at least one of the members shall be a trustee, 
        director, officer, or employee of an institution of higher 
        education. 
           Sec. 37.  Minnesota Statutes 1994, section 136A.26, 
        subdivision 2, is amended to read: 
           Subd. 2.  [TERM; COMPENSATION; REMOVAL.] The membership 
        terms, compensation, removal of members, and filling of 
        vacancies for authority members other than the executive 
        director of the higher education coordinating board or the 
        director's designee representative of the higher education 
        services office, and the chief executive officer president of 
        the private college council, shall be as provided in section 
        15.0575. 
           Sec. 38.  Minnesota Statutes 1994, section 136A.42, is 
        amended to read: 
           136A.42 [ANNUAL REPORT.] 
           The authority shall keep an accurate account of all of its 
        activities and all of its receipts and expenditures and shall 
        annually make a report thereof to the higher education 
        coordinating board services office.  The higher education 
        coordinating board shall review and comment upon the report and 
        make such recommendations as it deems necessary to the governor 
        and the legislature. 
           Sec. 39.  Minnesota Statutes 1994, section 136A.62, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BOARD OFFICE.] "Board" "Office" means the 
        Minnesota higher education coordinating board services office. 
           Sec. 40.  [136A.685] [PRIVATE INSTITUTIONS; ADJUDICATION OF 
        FRAUD OR MISREPRESENTATION.] 
           The office shall not provide registration or degree or name 
        approval to a school if there has been a criminal or civil 
        adjudication of fraud or misrepresentation in Minnesota or in 
        another state or jurisdiction against the school or its owner, 
        officers, agents, or sponsoring organization.  Such an 
        adjudication of fraud or misrepresentation shall be sufficient 
        cause for the office to determine that a school: 
           (1) does not qualify for exemption under section 136A.657; 
        or 
           (2) is not approved to grant degrees or to use the term 
        "academy," "institute," or "university" in its name. 
           Sec. 41.  Minnesota Statutes 1994, section 136A.69, is 
        amended to read: 
           136A.69 [FEES.] 
           The board may office shall collect reasonable registration 
        fees not to exceed $450 for an initial registration of each 
        school and $350 for each annual renewal of an existing 
        registration that are sufficient to recover, but do not exceed, 
        its costs of administering the registration program. 
           Sec. 42.  Minnesota Statutes 1994, section 136A.81, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FEES AND TUITION.] Except for an 
        administration fee of $6 a credit hour established by the 
        governing board at a level to recover costs, to be collected 
        only when a course is taken for credit, a senior citizen who is 
        a legal resident of Minnesota is entitled without payment of 
        tuition or activity fees to attend courses offered for credit, 
        audit any courses offered for credit, or enroll in any noncredit 
        adult vocational education courses in any state supported 
        institution of higher education in Minnesota when space is 
        available after all tuition-paying students have been 
        accommodated.  For the purposes of this section and section 
        136A.80, the term "noncredit adult vocational education courses" 
        shall not include those adult vocational education courses 
        designed and offered specifically and exclusively for senior 
        citizens.  
           The provisions of this section and section 136A.80 do not 
        apply to noncredit courses designed and offered by the 
        University of Minnesota, and the Minnesota state university 
        system, the community college system, and the technical colleges 
        and universities specifically and exclusively for senior 
        citizens.  Senior citizens enrolled under the provisions of this 
        section and section 136A.80 shall not be included by such 
        institutions in their computation of full-time equivalent 
        students when requesting staff or appropriations.  The enrollee 
        shall pay laboratory or material fees. 
           Sec. 43.  Minnesota Statutes 1994, section 141.25, 
        subdivision 8, is amended to read: 
           Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
        initial license under sections 141.21 to 141.36 shall be 
        accompanied by $650 as a nonrefundable application 
        fee established by the office that is sufficient to recover, but 
        not exceed, its administrative costs. 
           (b) All licenses shall expire one year from the date issued 
        by the board office.  Each renewal application shall be 
        accompanied by a nonrefundable renewal fee of $650 established 
        by the office that is sufficient to recover, but does not 
        exceed, its administrative costs.  
           (c) Application for renewal of license shall be made at 
        least 30 days before the expiration of the school's current 
        license.  Each renewal form shall be supplied by the board 
        office.  It shall not be necessary for an applicant to supply 
        all information required in the initial application at the time 
        of renewal unless requested by the board office. 
           Sec. 44.  Minnesota Statutes 1994, section 144.1487, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For purposes of sections 
        144.1487 to 144.1492, the following definitions apply definition 
        applies. 
           (b) "Board" means the higher education coordinating board. 
           (c) "Health professional shortage area" means an area 
        designated as such by the federal Secretary of Health and Human 
        Services, as provided under Code of Federal Regulations, title 
        42, part 5, and United States Code, title 42, section 254E. 
           Sec. 45.  Minnesota Statutes 1994, section 144.1488, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DUTIES OF THE COMMISSIONER OF HEALTH.] The 
        commissioner shall administer the state loan repayment program.  
        The commissioner shall: 
           (1) ensure that federal funds are used in accordance with 
        program requirements established by the federal National Health 
        Services Corps; 
           (2) notify potentially eligible loan repayment sites about 
        the program; 
           (3) develop and disseminate application materials to sites; 
           (4) review and rank applications using the scoring criteria 
        approved by the federal Department of Health and Human Services 
        as part of the Minnesota department of health's National Health 
        Services Corps state loan repayment program application; 
           (5) select sites that qualify for loan repayment based upon 
        the availability of federal and state funding; 
           (6) provide the higher education coordinating board with a 
        list of qualifying sites; and 
           (7) carry out other activities necessary to implement and 
        administer sections 144.1487 to 144.1492. 
           The commissioner shall enter into an interagency agreement 
        with the higher education coordinating board to carry out the 
        duties assigned to the board under sections 144.1487 to 144.1492.
           (7) verify the eligibility of program participants; 
           (8) sign a contract with each participant that specifies 
        the obligations of the participant and the state; 
           (9) arrange for the payment of qualifying educational loans 
        for program participants; 
           (10) monitor the obligated service of program participants; 
           (11) waive or suspend service or payment obligations of 
        participants in appropriate situations; 
           (12) place participants who fail to meet their obligations 
        in default; and 
           (13) enforce penalties for default. 
           Sec. 46.  Minnesota Statutes 1994, section 144.1488, 
        subdivision 4, is amended to read: 
           Subd. 4.  [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be 
        eligible to apply to the higher education coordinating board 
        commissioner for the loan repayment program, health 
        professionals must be citizens or nationals of the United 
        States, must not have any unserved obligations for service to a 
        federal, state, or local government, or other entity, and must 
        be ready to begin full-time clinical practice upon signing a 
        contract for obligated service. 
           (b) In selecting physicians for participation, the board 
        commissioner shall give priority to physicians who are board 
        certified or have completed a residency in family practice, 
        osteopathic general practice, obstetrics and gynecology, 
        internal medicine, or pediatrics.  A physician selected for 
        participation is not eligible for loan repayment until the 
        physician has an employment agreement or contract with an 
        eligible loan repayment site and has signed a contract for 
        obligated service with the higher education coordinating 
        board commissioner. 
           Sec. 47.  Minnesota Statutes 1994, section 144.1489, 
        subdivision 1, is amended to read:  
           Subdivision 1.  [CONTRACT REQUIRED.] Before starting the 
        period of obligated service, a participant must sign a contract 
        with the higher education coordinating board commissioner that 
        specifies the obligations of the participant and the board 
        commissioner. 
           Sec. 48.  Minnesota Statutes 1994, section 144.1489, 
        subdivision 3, is amended to read: 
           Subd. 3.  [LENGTH OF SERVICE.] Participants must agree to 
        provide obligated service for a minimum of two years.  A 
        participant may extend a contract to provide obligated service 
        for a third year, subject to board approval by the commissioner 
        and the availability of federal and state funding. 
           Sec. 49.  Minnesota Statutes 1994, section 144.1489, 
        subdivision 4, is amended to read: 
           Subd. 4.  [AFFIDAVIT OF SERVICE REQUIRED.] Within 30 days 
        of the start of obligated service, and by February 1 of each 
        succeeding calendar year, a participant shall submit an 
        affidavit to the board commissioner stating that the participant 
        is providing the obligated service and which is signed by a 
        representative of the organizational entity in which the service 
        is provided.  Participants must provide written notice to 
        the board commissioner within 30 days of:  a change in name or 
        address, a decision not to fulfill a service obligation, or 
        cessation of clinical practice. 
           Sec. 50.  Minnesota Statutes 1994, section 144.1490, is 
        amended to read: 
           144.1490 [RESPONSIBILITIES OF THE LOAN REPAYMENT PROGRAM.] 
           Subdivision 1.  [LOAN REPAYMENT.] Subject to the 
        availability of federal and state funds for the loan repayment 
        program, the higher education coordinating board commissioner 
        shall pay all or part of the qualifying education loans up to 
        $20,000 annually for each primary care physician participant 
        that fulfills the required service obligation.  For purposes of 
        this provision, "qualifying educational loans" are government 
        and commercial loans for actual costs paid for tuition, 
        reasonable education expenses, and reasonable living expenses 
        related to the graduate or undergraduate education of a health 
        care professional. 
           Subd. 2.  [PROCEDURE FOR LOAN REPAYMENT.] Program 
        participants, at the time of signing a contract, shall designate 
        the qualifying loan or loans for which the higher education 
        coordinating board commissioner is to make payments.  The 
        participant shall submit to the board commissioner all payment 
        books for the designated loan or loans or all monthly billings 
        for the designated loan or loans within five days of receipt.  
        The board commissioner shall make payments in accordance with 
        the terms and conditions of the designated loans, in an amount 
        not to exceed $20,000 when annualized.  If the amount paid by 
        the board commissioner is less than $20,000 during a 12-month 
        period, the board commissioner shall pay during the 12th month 
        an additional amount towards a loan or loans designated by the 
        participant, to bring the total paid to $20,000.  The total 
        amount paid by the board commissioner must not exceed the amount 
        of principal and accrued interest of the designated loans. 
           Sec. 51.  Minnesota Statutes 1994, section 144.1491, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
        service obligations cancel in the event of a participant's 
        death.  The board commissioner may waive or suspend payment or 
        service obligations in case of total and permanent disability or 
        long-term temporary disability lasting for more than two years.  
        The board commissioner shall evaluate all other requests for 
        suspension or waivers on a case-by-case basis. 
           Sec. 52.  Minnesota Statutes 1994, section 298.2214, 
        subdivision 5, is amended to read: 
           Subd. 5.  [HECB AND SYSTEM APPROVAL.] A program may not be 
        offered under a contract executed according to this section 
        unless it is approved by the higher education coordinating board 
        and the board of the system offering the program.  
           Sec. 53.  Laws 1993, chapter 326, article 12, section 15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROFESSIONAL EDUCATION AND LICENSURE.] By March 
        15, 1994, The center shall convene task forces for professions 
        that work with victims and perpetrators of violence.  Task 
        forces must be formed for the following professions:  teachers, 
        school administrators, guidance counselors, law enforcement 
        officers, lawyers, physicians, nurses, psychologists, and social 
        workers.  Each task force must include representatives of the 
        licensing agency, higher education systems offering programs in 
        the profession, appropriate professional associations, students 
        or recent graduates, representatives of communities served by 
        the profession, and employers or experienced professionals.  The 
        center must establish guidelines for the work of the task 
        forces.  Each task force must review current programs, licensing 
        regulations and examinations, and accreditation standards to 
        identify specific needs and plans for ensuring that 
        professionals are adequately prepared and updated on violence 
        and abuse issues. 
           Sec. 54.  Laws 1993, chapter 326, article 12, section 15, 
        subdivision 5, is amended to read:  
           Subd. 5.  [PROGRESS REPORT.] The center shall provide a 
        progress report to the legislature by March 15, 1994 1996. 
           Sec. 55.  Laws 1993, First Special Session chapter 2, 
        article 1, section 2, subdivision 3, is amended to read: 
        Subd. 3.  State Grants 
            101,950,000       97,950,000
        If the appropriation in this 
        subdivision for either year is 
        insufficient, the appropriation for the 
        other year is available for it.  
        The legislature intends that the higher 
        education coordinating board make full 
        grant awards in each year of the 
        biennium. 
        This appropriation contains money for 
        increasing living allowances for state 
        grants to $4,115 each year.  
        Beginning in the 1994-1995 academic 
        year, the legislature intends to adopt 
        the private college cap of $6,814 
        recommended by the higher education 
        coordinating board and the department 
        of finance, pending alternative 
        recommendations of the financial aid 
        task force. 
        The higher education coordinating board 
        shall meet with the nursing community 
        in order to evaluate consolidating all 
        nursing grant programs administered by 
        the state, and report its findings to 
        the legislature by February 1, 1994.  
        This appropriation includes $250,000 
        each year for grants to nursing 
        programs to recruit persons of color 
        and to provide grants to nursing 
        students who are persons of color.  Of 
        this amount, $100,000 each year is for 
        recruitment and retention of students 
        of color in nursing programs leading to 
        licensure as a registered nurse.  Other 
        than the grants to students, all grants 
        shall be matched with at least the same 
        amount from grantee sources for 
        nonstate money. 
        This appropriation includes money to 
        begin postservice benefit accounts for 
        the youthworks program.  By October 1, 
        1993, the higher education coordinating 
        board, in consultation with the 
        youthworks task force, shall design a 
        plan to administer the postservice 
        benefit accounts of the youthworks 
        program.  The plan shall include 
        strategies to augment the appropriation 
        by maximizing federal and other 
        nonstate money.  The board shall report 
        the plan to the education committees of 
        the legislature by October 1, 1993.  In 
        the event that federal money becomes 
        available for post-secondary 
        initiatives involving community 
        service, the board may use this money 
        for any state contribution required. 
           Sec. 56.  [INITIAL COUNCIL.] 
           Notwithstanding section 10, the governor shall appoint the 
        members to the higher education services council by July 1, 
        1995.  One-third of the appointments shall be for two years, 
        one-third for four years, and one-third for six years. 
           Sec. 57.  [TRANSFER OF PROGRAMS.] 
           The responsibilities of the higher education coordinating 
        board, or its successor, confirmed and specified under Minnesota 
        Statutes, sections 136A.1355 to 136A.1358, are transferred under 
        Minnesota Statutes, section 15.039, to the Minnesota department 
        of health. 
           Sec. 58.  [TRANSFER.] 
           On July 1, 1995, the higher education coordinating board is 
        abolished and the remaining duties and responsibilities of the 
        board are transferred to the higher education services office as 
        provided in Minnesota Statutes, section 15.039, subdivisions 1 
        to 6.  Positions in the higher education coordinating board are 
        transferred under Minnesota Statutes, section 15.039, 
        subdivision 7, except that the board shall determine the 
        incumbents to be transferred, so long as the number of 
        incumbents transferred is equal to the number of positions 
        sufficient to carry out the duties being transferred. 
           All obligations related to bond covenants entered into 
        under Minnesota Statutes, sections 136A.15 to 136A.1702 are 
        transferred to the higher education services office under 
        Minnesota Statutes, section 15.039, subdivision 5a. 
           Sec. 59.  [INSTRUCTION TO REVISOR.] 
           Subdivision 1.  [RENUMBERING.] In the next edition of 
        Minnesota Statutes, the revisor of statutes shall renumber each 
        section specified in column A with the number set forth in 
        column B.  The revisor shall make necessary cross-reference 
        changes consistent with the renumbering. 
                    Column A                 Column B
                    136A.80                  135A.51
                    136A.81                  135A.52
           Subd. 2.  [NAME CHANGE.] The revisor of statutes is 
        directed to change the term "higher education coordinating 
        board," and similar terms, to "higher education services office,"
        or similar terms.  The revisor must work with the house and 
        senate staff in making the changes.  The change must be made in 
        the next edition of Minnesota Statutes and Minnesota Rules. 
           Subd. 3.  [TRANSFER OF DUTIES.] In the next and subsequent 
        editions of Minnesota Statutes, the revisor shall change the 
        term "board" to "commissioner" in Minnesota Statutes, sections 
        136A.1355 to 136A.1358. 
           Sec. 60.  [REPEALER.] 
           Minnesota Statutes 1994, sections 135A.052, subdivisions 2 
        and 3; 135A.08, subdivision 3; 135A.09; 135A.11; 135A.12, 
        subdivision 5; 136A.02; 136A.04; 136A.041; 136A.125, subdivision 
        5; 136A.85; 136A.86; 136A.88; 136D.77; 136D.81, subdivision 2; 
        144.1488, subdivision 2; and 148.236; and Laws 1993, chapter 
        326, article 12, section 15, subdivision 2, are repealed. 
                                   ARTICLE 4
                                     MERGER
           Section 1.  Minnesota Statutes 1994, section 3.9741, 
        subdivision 2, is amended to read: 
           Subd. 2.  [POST-SECONDARY EDUCATION BOARD.] The legislative 
        auditor may enter into an interagency agreement with 
        the community college board, state university board, or the 
        state board of technical board of trustees of the Minnesota 
        state colleges and universities to conduct financial audits, in 
        addition to audits conducted under section 3.972, subdivision 
        2.  All payments received for audits requested by the board 
        shall be paid to the legislative auditor's account and need not 
        be deposited in the general fund. 
           Sec. 2.  Minnesota Statutes 1994, section 15.38, 
        subdivision 3, is amended to read: 
           Subd. 3.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
        state university board of trustees of the Minnesota state 
        colleges and universities may purchase insurance coverage as it 
        deems necessary and appropriate to protect buildings and 
        contents and for activities ancillary to the programs of the 
        state colleges and universities. 
                                  DEFINITIONS 
           Sec. 3.  [136F.01] [DEFINITIONS.] 
           Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
        the following terms have the meanings given them.  
           Subd. 2.  [BOARD OR BOARD OF TRUSTEES.] "Board" or "board 
        of trustees" means the board of trustees of the Minnesota state 
        colleges and universities.  
           Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
        of the Minnesota state colleges and universities.  
           Subd. 4.  [STATE COLLEGES AND UNIVERSITIES.] "State 
        colleges and universities" means Minnesota state colleges and 
        universities governed by the board of trustees.  
           Subd. 5.  [STUDENT ACTIVITIES.] "Student activities" means 
        lectures, concerts, and other functions contributing to the 
        mental, moral, and cultural development of the student body and 
        community in which they live, athletic activities, including 
        intercollegiate contests, forensics, dramatics, and such other 
        activities of any nature as in the opinion of the board 
        contribute to the educational, cultural, or physical well being 
        of the student body.  
           Sec. 4.  [PRINCIPLES.] 
           Subdivision 1.  [FINDINGS; INTENT.] In merging the state 
        universities, community colleges, and technical colleges, the 
        legislature intends to seek ways to preserve access to quality 
        post-secondary education in Minnesota, to enhance the choices of 
        students who attend public colleges and universities, to improve 
        accountability, and to provide cost-effective programs.  
           Subd. 2.  [BOARD.] It is the role of the board to govern 
        the institutions for which it is responsible through policy and 
        decision making that are necessary to ensure that needs of the 
        state and the ability of institutions to provide education are 
        met.  Further, it is the role of the board to ensure that the 
        institutions are well managed and that the state's investment is 
        enhanced by choosing a chancellor, presidents, and other 
        employees who will provide leadership to the system, college, or 
        university, and by holding them accountable.  Finally, it is the 
        role of the board to balance the competing needs of the colleges 
        and universities, determine the priorities among those needs, 
        and coordinate institutional actions to ensure that the state's 
        interests are well served, while preserving and enhancing the 
        local identities and initiatives of the colleges and 
        universities.  
           Subd. 3.  [SYSTEM OFFICE.] It is the role of the chancellor 
        and the system office to provide general management of the 
        colleges and universities necessary to protect the state's 
        investment, particularly in the areas of financial 
        accountability and programmatic offerings.  It is the further 
        role of the system office to carry out the policies of the board 
        while providing information and advice on development of those 
        policies.  Finally, it is the role of the system office to 
        provide the leadership and services the campuses need to provide 
        quality education in an efficient manner and to hold the 
        campuses accountable for their actions. 
           Subd. 4.  [COLLEGES AND UNIVERSITIES.] It is the role of 
        the colleges and universities to provide quality education and 
        services to meet the needs of students and of the state.  In so 
        doing, it is the role of the colleges and universities to 
        provide the day-to-day management and decision making that 
        affect the education they deliver.  It is the role of the 
        college and university presidents to provide leadership on the 
        campuses, while promoting a collegial environment that involves 
        faculty, staff, and students in decision making.  
           Subd. 5.  [BOARD ACTION.] In accordance with the principles 
        in section 136F.011, the board shall review the proposed 
        structure of the system office with the objective of further 
        reducing or eliminating those functions that are unnecessary.  
        Savings that occur shall be redirected to support instruction on 
        the campuses. 
                               BOARD OF TRUSTEES 
           Sec. 5.  Minnesota Statutes 1994, section 136E.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MEMBERSHIP.] The higher education board, 
        referred to in sections 136E.01 to 136E.05 as "the board," 
        consists of 15 members appointed by the governor with the advice 
        and consent of the senate.  At least one member of the board 
        must be a resident of each congressional district.  Three 
        members must be students who are enrolled at least half-time in 
        a degree, diploma, or certificate program or have graduated from 
        an institution governed by the board within one year of the date 
        of appointment.  The student members shall include:  one member 
        from a community college, one member from a state university, 
        and one member from a technical college.  The remaining members 
        must be appointed to represent the state at large.  
           Sec. 6.  Minnesota Statutes 1994, section 136E.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PURPOSE.] A higher education candidate 
        advisory council for the board candidate advisory council of 
        trustees of the Minnesota state colleges and universities shall 
        assist the governor in determining criteria for, and identifying 
        and recruiting qualified candidates for, nonstudent membership 
        on the higher education board. 
           Sec. 7.  Minnesota Statutes 1994, section 136E.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DUTIES.] The advisory council shall: 
           (1) develop a statement of the selection criteria to be 
        applied and a description of the responsibilities and duties of 
        a member of the higher education board and shall distribute this 
        to potential candidates; and 
           (2) for each position on the board, identify and recruit 
        qualified candidates for the board, based on the background and 
        experience of the candidates, and their potential for 
        discharging the responsibilities of a member of the board. 
           Sec. 8.  Minnesota Statutes 1994, section 136E.02, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RECOMMENDATIONS.] The advisory council shall 
        recommend at least two and not more than four candidates for 
        each seat.  By January 2 April 15 of each even-numbered year, 
        the advisory council shall submit its recommendations to the 
        governor.  The governor is not bound by these recommendations. 
           Sec. 9.  Minnesota Statutes 1994, section 136E.021, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CRITERIA.] After consulting with the higher 
        education board of trustees candidate advisory council, the 
        student associations shall jointly develop a statement of the 
        selection criteria to be applied to potential candidates. 
           Sec. 10.  Minnesota Statutes 1994, section 136E.04, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
        manage, supervise, and control possess all powers necessary to 
        govern the technical state colleges, community colleges, and 
        state universities and all related property.  It 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, prepare and confer diplomas set tuition 
        and fees, prescribe requirements for completion of programs, 
        approve the awarding of appropriate certificates, diplomas, and 
        degrees, and adopt suitable policies for the institutions it 
        manages governs.  Sections 14.01 to 14.47 do not apply to 
        policies and procedures of the board.  
           Sec. 11.  Minnesota Statutes 1994, section 136E.04, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [GOVERNANCE AUTHORITY.] The board shall have the 
        authority needed to operate and govern the state colleges and 
        universities unless otherwise directed or limited by law. 
           Sec. 12.  Minnesota Statutes 1994, section 136E.04, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [OFFICE LOCATION.] Notwithstanding chapter 16B, 
        the board may select the location for its central office. 
           Sec. 13.  [136E.041] [CHANCELLOR.] 
           The board shall appoint a chancellor who shall serve in the 
        unclassified service.  The chancellor shall possess powers and 
        perform duties as delegated by the board.  The board shall set 
        the salary of the chancellor according to section 15A.081, 
        subdivision 7b. 
                                  DESIGNATION 
           Sec. 14.  [136F.10] [DESIGNATION.] 
           The following are designated as the Minnesota state 
        colleges and universities:  the community colleges located at 
        Austin, Bloomington, Brainerd, Brooklyn Park, Cloquet, Coon 
        Rapids, Ely, Fergus Falls, Grand Rapids, Hibbing, International 
        Falls, Inver Grove Heights, Minneapolis, Rochester, Thief River 
        Falls, Virginia, White Bear Lake, Willmar, and Worthington; the 
        community college centers located at Cambridge and Duluth; the 
        state universities located at Bemidji, Mankato, Marshall, 
        Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan 
        area; and the technical colleges located at Alexandria, Albert 
        Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn Park, Canby, 
        Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, 
        Faribault, Granite Falls, Hibbing, Hutchinson, Jackson, 
        Minneapolis, Mahtomedi, Moorhead, North Mankato, Pine City, 
        Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul, 
        Staples, Thief River Falls, Wadena, Willmar, and Winona.  
           Sec. 15.  [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. 16.  [136F.14] [CAMPUS MERGER OR REORGANIZATION.] 
           The board may merge or reorganize campuses or centers for 
        the purpose of increased efficiency, use of personnel, placement 
        of programs, student access, and other needs as determined by 
        the board.  The board shall report its action to the legislature.
           Sec. 17.  [136F.16] [CAMPUS ESTABLISHMENT.] 
           Subdivision 1.  [NEW STATE COLLEGES AND UNIVERSITIES.] A 
        new state college or university shall be established only by 
        specific legislation.  For the purposes of this subdivision, 
        campuses or centers that are merged or reorganized under section 
        136F.14 are not new state colleges or universities. 
           Subd. 2.  [CAMPUS OR CENTER SITE.] The board may determine 
        the exact location and site for each campus or center. 
           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.  
           Sec. 18.  [136F.18] [CAMPUS CLOSING.] 
           The board may close a campus or center under its 
        jurisdiction.  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.  
                                    STUDENTS 
           Sec. 19.  [136F.21] [STUDENT HEALTH.] 
           Subdivision 1.  [HEALTH SERVICE.] The board shall offer 
        health services for students at each state university and may 
        offer health services for students at each state college.  The 
        health services may be offered either on campus or in the nearby 
        community.  The board may charge each student a health service 
        fee set by the board.  The fees shall be used to maintain the 
        health service and equip and construct facilities.  The fee may 
        be used to contract for health, medical, and hospitalization 
        insurance for students.  The fees shall be deposited in an 
        activity fund and are annually appropriated to the board for the 
        purposes of this subdivision.  Each state college and university 
        shall provide an annual financial accounting of the health 
        service money to the board.  
           Subd. 2.  [HEALTH BENEFITS.] The board may contract for 
        hospital benefits coverage and medical benefits coverage for 
        students in the state colleges and universities in the same 
        manner as authorized by section 43A.23 for state employees.  
           Sec. 20.  Minnesota Statutes 1994, section 136E.525, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STATEWIDE.] The board shall recognize one 
        statewide student association for the community colleges, one 
        for the state universities, and one for the technical colleges.  
        Each statewide campus student association shall be affiliated 
        with its campus statewide student associations but association 
        and all students enrolled on those campuses shall be members of 
        their respective statewide association. 
           Sec. 21.  Minnesota Statutes 1994, section 136E.525, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FEES.] Each statewide association shall set its 
        fees to be collected by the board and shall submit any changes 
        in its fees to the board for review.  The board may revise or 
        reject the fee change.  Fees must be collected by each community 
        state college, state and university, and technical college and 
        shall be credited to each association's account to be spent as 
        determined by that association. 
           Sec. 22.  [136F.22] [STUDENT ASSOCIATIONS; PURCHASING 
        AUTHORITY.] 
           Notwithstanding chapter 16A or 16B, the student 
        associations recognized by the board of trustees of the 
        Minnesota state colleges and universities may purchase goods or 
        materials through state purchasing authority for the ordinary 
        day-to-day operations of the associations.  The student 
        associations must be nonprofit 501(c)(3) organizations in order 
        to qualify for this authority.  The department of administration 
        may require that the purchase documents be approved by 
        appropriate officials in the board's central office. 
           Sec. 23.  [136F.24] [LEGAL COUNSELING AND SERVICE PROGRAM; 
        FUNDING.] 
           Notwithstanding section 8.06, or any other law or rule to 
        the contrary, the official campus student association at each 
        state college or university may fund a program to provide legal 
        counseling and services to students of the state college or 
        university.  The money shall be from an account of the state 
        college and university activity funds allocated to the student 
        associations or other money assigned to them.  
           Sec. 24.  [136F.25] [ABSENCE FOR CHEMICAL ABUSE TREATMENT.] 
           If a student is absent from a state college or university 
        to participate in a chemical abuse treatment program licensed by 
        the state, the student, upon request, shall remain on the roll 
        in the educational program of the state college or university in 
        which the student is enrolled, according to policies adopted by 
        the board. 
           Sec. 25.  [136F.28] [SOUTHWEST ASIA VETERANS; TECHNICAL 
        COLLEGES.] 
           Subdivision 1.  [GRANTS.] A Southwest Asia veteran who 
        enrolls in a technical college program, and who is a Minnesota 
        resident whose entire education has not included completion of 
        at least one technical college program is eligible for a state 
        grant of $500 per year if the veteran has GI Montgomery bill 
        benefits, or $1,000 per year if the veteran does not have GI 
        Montgomery bill benefits, until the veteran has completed the 
        lesser of (1) 115 credits in a technical college program, or (2) 
        one technical college program.  The grant is based on full-time 
        attendance and shall be prorated if the student is attending 
        less than full time.  To be eligible for the tuition relief, a 
        veteran who is discharged before July 1, 1993, must enroll in a 
        technical college by July 1, 1995, and a veteran who is 
        discharged on or after July 1, 1993, must enroll in a technical 
        college within two years of the date of discharge.  All veterans 
        enrolled under this program must maintain a minimum of six 
        credits per quarter.  Total grants may not exceed the available 
        appropriation.  
           Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
        "Southwest Asia veteran"  means a person who:  
           (1) served in the active military service in any branch of 
        the armed forces of the United States any time between August 1, 
        1990 and February 27, 1992; 
           (2) became eligible for the Southwest Asia Service Medal as 
        a result of the service; 
           (3) was a Minnesota resident at the time of induction into 
        the armed forces and for the one year immediately preceding 
        induction; and 
           (4) has been separated or discharged from active military 
        service under conditions other than dishonorable.  
                                   CURRICULUM 
           Sec. 26.  [136F.30] [COURSES AND PROGRAMS.] 
           The board shall prescribe the courses 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 shall place a high priority on ensuring the 
        transferability of credit. 
           Sec. 27.  [136F.32] [DEGREES; DIPLOMAS; CERTIFICATES.] 
           The board may approve awarding of appropriate certificates, 
        diplomas, or degrees to persons who complete a prescribed 
        curriculum. 
           Sec. 28.  [136F.36] [TECHNICAL COLLEGE CARPENTRY PROGRAM 
        CONSTRUCTION AUTHORITY.] 
           Subdivision 1.  [AUTHORITY TO ACQUIRE, DEVELOP, AND SELL 
        REAL PROPERTY FOR INSTRUCTIONAL PURPOSES.] For the purpose of 
        instructional construction by technical colleges, the board may 
        purchase or otherwise acquire real property that it does not 
        intend to use as a permanent educational site.  The board may, 
        upon the terms and conditions it sets, develop and sell real 
        property acquired under this section.  Sale shall be for fair 
        market value.  Where real property acquired under this section 
        cannot be sold for fair market value, the board may lease the 
        real property under the terms and conditions it sets.  The board 
        may also contract for the use of real property it does not own.  
        Where the board makes improvements to real property it does not 
        own, the landowner shall compensate the board for the fair 
        market value of the board's contribution to the improvements.  
        No other authorizing legislation or legislative approval is 
        required for an acquisition, improvement, or sale under this 
        section.  Proceeds from the sale, lease, or improvement of real 
        property under this section are appropriated to the board. 
           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 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. 
           Subd. 3.  [WARRANTIES.] The board may, in its discretion, 
        offer the warranties contained in chapter 327A. 
                                HUMAN RESOURCES 
           Sec. 29.  [136F.40] [APPOINTMENT OF PERSONNEL.] 
           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.  
           Sec. 30.  Minnesota Statutes 1994, section 136E.31, is 
        amended to read: 
           136E.31 [ASSIGNMENT TO BARGAINING UNITS.] 
           Actions by the higher education board to merge or 
        redesignate institutions or to promote collaborative efforts 
        between institutions must not unilaterally change faculty 
        assignments to bargaining units provided in section 179A.10, 
        subdivision 2. 
           Sec. 31.  [136F.42] [EXTENDED LEAVES OF ABSENCE.] 
           Subdivision 1.  [DEFINITION.] As used in this section, 
        "teacher" means a person on the instructional or administrative 
        staff of the state colleges and universities who is a member of 
        the teachers retirement association under chapter 354 or who is 
        covered by the unclassified employees plan under chapter 352D or 
        individual retirement account plan under chapter 354B.  It shall 
        not include a chancellor, deputy chancellor, or vice-chancellor. 
           Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
        extended leave of absence without salary to a full-time teacher 
        who has been employed by the board for at least five years and 
        has at least ten years of allowable service as defined in 
        section 354.05, subdivision 13.  The maximum duration of an 
        extended leave of absence pursuant to this section shall be 
        determined by mutual agreement of the board and the teacher at 
        the time the leave is granted and shall be at least three but no 
        more than five years.  An extended leave of absence under this 
        section shall be taken by mutual consent of the board and the 
        teacher.  No teacher may receive more than one leave of absence 
        under this section.  
           Subd. 3.  [REINSTATEMENT.] A teacher on an extended leave 
        of absence under this section shall have the right to be 
        reinstated to the same position or a similar position within the 
        department or program from which the leave was granted at the 
        beginning of the school year which immediately follows a year of 
        extended leave of absence, unless the teacher is discharged or 
        placed on retrenchment or on layoff or the teacher's contract is 
        terminated while the teacher is on the extended leave.  The 
        board shall not be obligated to reinstate a teacher who is on an 
        extended leave of absence under this section unless the teacher 
        advises the board of an intention to return before February 1 in 
        the school year preceding the school year in which the teacher 
        wishes to return.  
           Subd. 4.  [SENIORITY RIGHTS.] A teacher who is reinstated 
        to the same or similar position after an extended leave under 
        this section shall not lose tenure or credit for previous 
        seniority in the employing state college or university.  A 
        teacher shall not accrue seniority credit during the time of a 
        leave of absence under this section, except that a teacher at a 
        state college or university may accrue seniority credit during 
        the leave, consistent with the conditions of the collective 
        bargaining agreement.  
           Subd. 5.  [SALARY.] The years spent by a teacher on an 
        extended leave of absence under this section shall not be 
        included in the determination of the teacher's salary upon 
        reinstatement to the same or similar position by the board.  The 
        credits earned by a teacher on an extended leave of absence 
        under this section shall not be included in the determination of 
        the teacher's salary upon reinstatement to the same or similar 
        position by the board for a period of time equal to the time of 
        the extended leave of absence.  
           Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
        a leave of absence which is not subject to the provisions of 
        this section and section 354.094. 
           Sec. 32.  [136F.43] [ANNUITIES.] 
           Subdivision 1.  [PURCHASE.] At the request of an employee, 
        the board may negotiate and purchase an individual annuity 
        contract for an employee for retirement or other purposes from a 
        company licensed to do business in Minnesota, and may allocate a 
        portion of the compensation otherwise payable to the employee as 
        salary for the purpose of paying the entire premium due or to 
        become due under the contract. The allocation shall be made in a 
        manner that will qualify the annuity premiums, or a portion 
        thereof, for the benefit afforded under section 403(b) of the 
        current federal Internal Revenue Code or any equivalent 
        provision of subsequent federal income tax law. The employee 
        shall own the contract and the employee's rights thereunder 
        shall be nonforfeitable except for failure to pay premiums.  
           Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
        shall be deposited in an annuity account established by the 
        board.  Payment of annuity premiums shall be made when due or in 
        accordance with the salary agreement entered into between the 
        employee and the board.  The money in the annuity account is not 
        subject to the budget, allotment, and incumbrance system 
        provided for in chapter 16A.  
           Sec. 33.  [136F.44] [NONPROFIT FOUNDATION PAYROLL 
        DEDUCTION.] 
           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 of the Minnesota 
        state university student association shall be considered a 
        nonprofit state college and university foundation for purposes 
        of this section. 
           Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
        state college or university foundation that desires to receive 
        contributions through payroll deductions shall apply to the 
        board for approval to participate in the payroll deduction 
        plan.  The board may approve the application for participation 
        if the foundation:  
           (1) is tax exempt under section 501(c)3 of the Internal 
        Revenue Code of 1986, as amended; 
           (2) qualifies for tax deductible contributions under 
        section 170 of the Internal Revenue Code of 1986, as amended; 
           (3) secures funding solely for distribution to a state 
        college or university or for distribution to students in the 
        form of scholarships; and 
           (4) has been incorporated according to chapter 317A for at 
        least one calendar year before the date it applies to the board 
        for approval.  
           Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
        deductions authorized in subdivision 1 may not interfere with, 
        require a modification of, nor be conducted during the period of 
        a payroll deduction fund drive for employees authorized by 
        section 309.501. 
           Sec. 34.  [136F.45] [EMPLOYER-PAID HEALTH INSURANCE.] 
           (a) This section applies to a person who:  
           (1) retires from the state university system, the technical 
        college system, or the community college system, or from a 
        successor system employing state university, technical college, 
        or community college faculty, with at least ten years of service 
        credit in the system from which the person retires; 
           (2) was employed on a full-time basis immediately preceding 
        retirement as a state university, technical college, or 
        community college faculty member; 
           (3) begins drawing an annuity from the teachers retirement 
        association or from the first class cities teachers retirement 
        funds; and 
           (4) returns to work on not less than a one-third time basis 
        and not more than a two-thirds time basis in the system from 
        which the person retired under an agreement in which the person 
        may not earn a salary of more than $35,000 in a calendar year 
        from employment in the system from which the person retired.  
           (b) Initial participation, the amount of time worked, and 
        the duration of participation under this section must be 
        mutually agreed upon by the employer and the employee.  The 
        employer may require up to one-year notice of intent to 
        participate in the program as a condition of participation under 
        this section.  The employer shall determine the time of year the 
        employee shall work.  
           (c) For a person eligible under paragraphs (a) and (b), the 
        employing board shall make the same employer contribution for 
        hospital, medical, and dental benefits as would be made if the 
        person were employed full time.  
           (d) For work under paragraph (a), a person must receive a 
        percentage of the person's salary at the time of retirement that 
        is equal to the percentage of time the person works compared to 
        full-time work.  
           (e) If a collective bargaining agreement covering a person 
        provides for an early retirement incentive that is based on age, 
        the incentive provided to the person must be based on the 
        person's age at the time employment under this section ends.  
        However, the salary used to determine the amount of the 
        incentive must be the salary that would have been paid if the 
        person had been employed full time for the year immediately 
        preceding the time employment under this section ends.  
           Sec. 35.  [136F.495] [LICENSURE.] 
           The board may adopt policies for licensure of teaching 
        personnel in technical colleges and may establish a processing 
        fee for the issuance, renewal, or extension of a license. 
                                 ADMINISTRATION 
           Sec. 36.  [136F.50] [COOPERATION OR PROMOTION OF A STATE 
        COLLEGE OR UNIVERSITY.] 
           The board 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 
        contribute to the development of the state colleges and 
        universities and the welfare of their students. 
           Sec. 37.  Minnesota Statutes 1994, section 136E.05, is 
        amended to read: 
           136E.05 [LOCAL ADVISORY COMMITTEES.] 
           Subdivision 1.  [APPOINTMENT.] The president, with the 
        approval of the chancellor and the board, may appoint a local 
        advisory committee for each campus.  Committee members must be 
        qualified people who have knowledge of and interest in the 
        campus.  The board shall define the role and authority of the 
        advisory committees and establish procedures for the 
        appointment, terms, and termination of members.  The president 
        or an appointee of the president shall regularly meet and 
        consult with the local advisory committee. 
           Subd. 2.  [COMPENSATION.] Advisory committee members shall 
        serve without compensation and without reimbursement for 
        expenses.  
           Sec. 38.  [136F.54] [PARKING AND TRAFFIC REGULATION.] 
           Subdivision 1.  [BOARD POWER.] Notwithstanding section 
        169.966, the board may authorize a state college or university 
        to 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.
           Subd. 2.  [FINES; FEES.] A state college or university may 
        collect a fine and a towing fee for a violation.  Money 
        collected under this section by a state college or university is 
        annually appropriated to the state college or university for 
        parking lot maintenance, improvement, and policy enforcement. 
           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. 
           Subd. 4.  [PROCEDURE.] Chapter 14 does not apply to this 
        section.  
           Subd. 5.  [ENFORCEMENT.] Every sheriff, constable, police 
        officer, or other peace officer shall have authority to enforce 
        all policies and ordinances adopted pursuant to this section and 
        shall have authority to arrest and prosecute offenders for 
        violations of law.  
           Sec. 39.  [136F.56] [STUDENT HOUSING MANAGEMENT.] 
           The board may contract with student housing facility owners 
        or on-site management firms to assist in the operation, control, 
        and management of the facility. 
           Sec. 40.  [136F.58] [STATE COUNCIL ON VOCATIONAL TECHNICAL 
        EDUCATION.] 
           Subdivision 1.  [STATE AGENCY PURPOSE.] The state council 
        on vocational technical education, formerly known as the 
        Minnesota state advisory council for vocational education, is a 
        state agency in the executive branch.  Its purpose is to 
        implement section 112 of the Carl D. Perkins Vocational 
        Education Act of 1984, United States Code, title 20, section 
        2322, and other purposes necessary to improve vocational 
        technical education.  
           Subd. 2.  [MEMBERS; TERMS.] The governor shall appoint the 
        members of the council according to United States Code, title 
        20, section 2322.  Except as otherwise provided by that act, 
        members are governed by section 15.0575.  
           Subd. 3.  [OFFICES.] The commissioner of administration 
        shall provide the council with suitable office space, 
        furnishings, and equipment.  
           Subd. 4.  [FUNDING.] Federal, state, or private money 
        received by the council must be deposited in the state treasury 
        and credited to a special account for the council.  The council 
        has sole authority to spend its money.  The money may not be 
        diverted or reprogrammed by any agency or person to any other 
        purpose.  Unless restricted by federal or other state law, the 
        council may carry forward any unexpended balance from one fiscal 
        year to the next and from one fiscal biennium to the next.  
           Subd. 5.  [SERVICE CONTRACTS.] The council may contract for 
        the services it needs to carry out its function.  The council 
        may also contract to provide services to other organizations. 
        The contracts are not subject to the contract approval 
        procedures of the commissioner of administration or of chapter 
        16B.  
           Subd. 6.  [FISCAL AGENT.] The board shall act as fiscal 
        agent for the council and provide other support services 
        necessary for disbursements, accounting, auditing, and reporting.
           Subd. 7.  [STAFF.] The council may employ an executive 
        director and other staff needed to carry out its duties.  The 
        executive director shall serve in the unclassified service and 
        may be paid an allowance not to exceed $2,000 annually for 
        miscellaneous expenses in connection with duties of the office. 
        The council may contract with professional, technical, and 
        clerical consultants and interns needed to carry out its 
        functions. 
           Sec. 41.  [136F.591] [BOOKSTORES.] 
           The board may permit a state college or university to 
        conduct 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 a bookstore 
        therein without rent at the board's 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.
                                   FACILITIES 
           Sec. 42.  [136F.60] [COLLEGE AND UNIVERSITY SITES; 
        ACQUISITION.] 
           Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
        UNIVERSITIES.] The board may purchase property adjacent to or in 
        the vicinity of the campuses as necessary for the development of 
        a state university.  Before taking action, the board shall 
        consult with the chairs of the senate finance committee and the 
        house ways and means committee about the proposed action.  The 
        board shall explain the need to acquire property, specify the 
        property to be acquired, and indicate the source and amount of 
        money needed for the acquisition.  The amount needed may be 
        spent from sums previously appropriated for purposes of the 
        state colleges and universities, including, but not limited to, 
        general fund appropriations for instructional or 
        noninstructional expenditures, general fund appropriations 
        carried forward, or state college and university activity fund 
        appropriations.  The board may pay relocation costs, at its 
        discretion, when acquiring property.  
           Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
        appropriated to the board to acquire lands or sites for public 
        buildings or real estate, the acquisition may be by gift, 
        purchase, or condemnation proceedings.  Condemnation proceedings 
        must be under chapter 117. 
           Sec. 43.  Minnesota Statutes 1994, section 136E.692, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The higher 
        education board shall supervise and control the preparation of 
        plans and specifications for the construction, 
        alteration, repair, or enlargement of community college, state 
        university, and technical state college and university 
        buildings, structures, and improvements for which appropriations 
        are made to the board.  The board shall advertise for bids and 
        award contracts in connection with the improvements, supervise 
        and inspect the work, approve necessary changes in the plans and 
        specifications, approve estimates for payment, and accept the 
        improvements when completed according to the plans and 
        specifications. 
           Sec. 44.  Minnesota Statutes 1994, section 136E.692, 
        subdivision 3, is amended to read: 
           Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
        projects, the higher education board must not restrict its 
        access to litigation or limit its methods of redress to 
        arbitration or other nonjudicial procedures. 
           Sec. 45.  [136F.68] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
           In awarding contracts for capital projects under section 
        136E.692, the board shall consider the documentation provided by 
        the bidders regarding their qualifications, including evidence 
        of having successfully completed similar work, or delivering 
        services or products comparable to that being requested.  The 
        board shall set procedures to administer this section, which 
        must include practices that will assist in the economic 
        development of small businesses, small targeted group 
        businesses, and businesses in economically disadvantaged areas 
        designated under section 16B.19. 
           Sec. 46.  [136F.19] [STATE PROPERTY AGREEMENTS.] 
           Notwithstanding section 16B.24, the board may enter into an 
        agreement with an intermediate school district for the 
        cooperative use of state property for an initial period of ten 
        years, which may be renewed or extended for additional periods 
        of up to ten years each. 
                                    FINANCE 
           Sec. 47.  [136F.70] [TUITION; FEES; ACTIVITIES FUNDS.] 
           Subdivision 1.  [TUITION.] The board shall set rates of 
        tuition for the various instructional programs.  The board may 
        waive tuition for certain persons, courses, and programs.  
           Subd. 2.  [FEES.] The board may prescribe fees to be 
        charged students for student unions, state college and 
        university activities, functions, and purposes.  
           Subd. 3.  [REFUNDS.] The board may make refunds to students 
        for tuition, activity fees, union fees, and any other fees from 
        imprest cash funds.  The imprest cash fund shall be reimbursed 
        periodically by checks or warrants drawn on the funds and 
        accounts to which the refund should ultimately be charged.  The 
        amounts necessary to pay the refunds are appropriated from the 
        funds and accounts to which they are charged.  
           Sec. 48.  [136F.71] [RECEIPTS.] 
           Subdivision 1.  [APPROPRIATION OF RECEIPTS.] All receipts 
        of every kind, nature, and description, including student 
        tuition and fees, all federal receipts, aids, contributions, and 
        reimbursements, but not including receipts attributable to state 
        colleges and universities activity funds, in all the state 
        colleges and universities are appropriated to the board, but are 
        subject to budgetary control to be exercised by the commissioner 
        of finance.  The balance in these funds shall not cancel on June 
        30, but shall be available in the next fiscal year. 
           Subd. 2.  [ACTIVITY FUNDS.] All receipts attributable to 
        the state colleges and universities activity funds and deposited 
        in the state treasury are appropriated to the board and are not 
        subject to budgetary control as exercised by the commissioner of 
        finance.  
           Sec. 49.  [136F.72] [FUNDS.] 
           Subdivision 1.  [ACTIVITY FUNDS.] The board may establish 
        in each state college and university a fund to be known as the 
        activity fund.  The purpose of these funds shall be to provide 
        for the administration of state college and university 
        activities designed for student recreational, social, welfare, 
        and educational pursuits supplemental to the regular curricular 
        offerings.  The activity funds shall encompass accounts for 
        student activities, student health services authorized college 
        and university agencies, authorized auxiliary enterprises, 
        student loans, gifts and endowments, and other accounts as the 
        board may prescribe.  
           Subd. 2.  [ADMINISTRATIVE FUND AND ACCOUNTS.] The board may 
        establish a fund within the board office for management of 
        employee retirement funds.  The board may establish an 
        administrative fund at each state college and university or 
        within the board office for the administration of contracts, 
        student equipment purchases, and receipt and transfer of foreign 
        program money.  
           Subd. 3.  [ADMINISTRATION.] The board, independent of other 
        authority and notwithstanding chapters 16A and 16B, shall 
        administer the money collected for the state colleges and 
        universities activity funds and the administrative fund.  All 
        activity fund money collected shall be administered under the 
        policies of the board subject to audit of the legislative 
        auditor.  
           Subd. 4.  [IMPREST CASH FUNDS.] The board may establish an 
        imprest cash fund in each of its state colleges and universities.
           Sec. 50.  [136F.73] [CASH OVER AND SHORT ACCOUNT OF IMPREST 
        CASH FUND.] 
           The board may establish a cash over and short account 
        within the imprest cash fund for each state college and 
        university.  This account shall be used to record on a daily 
        basis overages and shortages of cash receipts.  At the end of 
        each fiscal year, the board shall credit or debit the overage or 
        shortage from each state college or university to the board 
        maintenance and equipment appropriation account.  In the 
        instance of a debit balance remaining in any cash over and short 
        accounts, the board may transfer from the maintenance and 
        equipment appropriation account moneys sufficient to offset such 
        debit balance.  The commissioner of finance shall make the 
        appropriate adjustments and entries on the general books of 
        account of the state.  
           Sec. 51.  [136F.74] [CARRY-OVER AUTHORITY.] 
           The board may carry over any unexpended balance from its 
        appropriation from the first year of a biennium into the second 
        year of the biennium.  The board may carry over any unexpended 
        balance into the following biennium.  The amounts carried over 
        must not be taken into account in determining state 
        appropriations and must not be deducted from a later 
        appropriation. 
           Sec. 52.  [136F.75] [LITIGATION AWARDS.] 
           Notwithstanding any law to the contrary, the board may keep 
        money received from successful litigation by or against the 
        board.  Awards made to the state or the board resulting from 
        litigation against or by the board must be kept by the board to 
        the credit of the account from which the litigation was 
        originally funded.  An award that exceeds the costs incurred in 
        the litigation shall be used by the board for repair or 
        replacement projects. 
           Sec. 53.  [136F.77] [TECHNICAL EQUIPMENT.] 
           Subdivision 1.  [PROPRIETARY PURCHASES.] Notwithstanding 
        the competitive bidding requirements of chapter 16B, technical 
        educational equipment may be purchased for state colleges and 
        universities on request of the board either by brand designation 
        or in accordance with standards and specifications prescribed by 
        the board.  The purchase is subject to supervision by the 
        information policy office under section 16B.41.  
           Subd. 2.  [COMPUTER SALES AND SUPPORT.] The board may sell 
        computers and related products to state college and university 
        staff and students to advance their instructional and research 
        abilities.  The board shall contract with a private vendor for 
        service, maintenance, and support for computers and related 
        products sold by the board. 
           Sec. 54.  [136F.79] [SOLE STATE AGENCY.] 
           The board is the sole state agency to receive and disburse 
        federal funds authorized by the Vocational Education Act of 
        1963, as amended in the education amendments of 1976, Public Law 
        Number 94-482, and Code of Federal Regulations, title 34, part 
        400.  The board shall develop and submit the state plan for 
        vocational technical education.  The board shall develop the 
        state plan according to terms of agreement with the state board 
        of education.  
                                GRANTS AND GIFTS 
           Sec. 55.  [136F.80] [GRANTS; GIFTS; BEQUESTS; DEVISES; 
        ENDOWMENTS.] 
           Subdivision 1.  [RECEIPT AND ACCEPTANCE.] The board may 
        apply for, receive, and accept on behalf of the state and for 
        the benefit of any state college or university any grant, gift, 
        bequest, devise, or endowment that any person, firm, 
        corporation, foundation, association, or government agency may 
        make to the board for the purposes of the state colleges and 
        universities.  The board may use any money given to it or to any 
        of the state colleges and universities consistent with the terms 
        and conditions under which the money was received and for the 
        purposes stated.  All moneys received are appropriated to the 
        board for use in the colleges and universities.  These moneys 
        shall not be taken into account in determining appropriations or 
        allocations.  All taxes and special assessments constituting a 
        lien on any real property received and accepted by the board 
        under this section shall be paid in full before title is 
        transferred to the state.  
           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. 
           Sec. 56.  Laws 1991, chapter 356, article 9, section 9, as 
        amended by Laws 1994, chapter 532, article 5, section 1, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TRANSFER OF POWERS; GENERALLY.] The state 
        board of technical colleges, the state board for community 
        colleges, and the state university board and their respective 
        chancellors retain responsibility for operating and managing 
        their systems until July 1, 1995.  On July 1, 1995, the 
        authority, duties, responsibilities, related property of the 
        state board of technical colleges, school boards, intermediate 
        school boards, and joint vocational technical boards with 
        respect to technical colleges, the state board for community 
        colleges, and the state university board are transferred to the 
        higher education board board of trustees of the Minnesota state 
        colleges and universities under Minnesota Statutes, section 
        15.039. 
           Effective July 1, 1995, school boards, intermediate school 
        boards, and joint vocational technical boards shall transfer to 
        the higher education board state all real property, personal 
        property, and improvements and attachments thereto related to 
        technical colleges as determined by the higher education board, 
        and shall convey all interests in the property.  The school 
        boards, intermediate school boards, and joint vocational 
        technical boards shall not receive compensation for the 
        conveyance of the interests.  For a school board or a joint 
        vocational technical board, on July 1, 1995, title and ownership 
        of all personal property, real property, and improvements and 
        attachments thereto related to technical colleges as determined 
        by the board of trustees of the Minnesota state colleges and 
        universities shall vest in the state, under the management, 
        supervision, and control of the board of trustees of the 
        Minnesota state colleges and universities.  For an intermediate 
        school board, on July 1, 1995, title and ownership of all 
        personal property, real property, and improvements and 
        attachments thereto related to technical colleges as determined 
        by the board of trustees of the Minnesota state colleges and 
        universities and the intermediate school board shall vest in the 
        state, under the management, supervision, and control of the 
        board of trustees of the Minnesota state colleges and 
        universities.  If by June 15, 1995, the higher education board 
        and an intermediate school board cannot agree on ownership of 
        personal property, real property, and improvements and 
        attachments thereto, the commissioner of the bureau of mediation 
        services shall appoint a special mediator under Minnesota 
        Statutes, section 179.02, subdivision 2, to settle the dispute.  
        On or after July 1, 1995, a school board or intermediate school 
        board that has transferred property under this subdivision, if 
        requested by the board of trustees of the Minnesota state 
        colleges and universities, shall issue a deed of conveyance or 
        other document appropriate to transfer title or ownership to the 
        state to serve as evidence of transfer of title or ownership.  
        The board of trustees of the Minnesota state colleges and 
        universities as successor in interest to any joint vocational 
        technical board may execute such a deed of conveyance or other 
        appropriate document to the state for that purpose.  All debt 
        service payments on the transferred property that have a due 
        date on or after July 1, 1995, become the responsibility of 
        the higher education board of trustees of the Minnesota state 
        colleges and universities. 
           On July 1, 1995, all other obligations incurred on behalf 
        of a technical college by a school board, a joint vocational 
        district under Minnesota Statutes, section 136C.60, or an 
        intermediate school district under Minnesota Statutes, chapter 
        136D, which will not be satisfied on or before June 30, 1995, 
        transfer to the higher education board of trustees of the 
        Minnesota state colleges and universities subject to limits 
        identified in state law or in plans or policies of the higher 
        education board of trustees of the Minnesota state colleges and 
        universities subject to legislative approval. 
           The state board of technical colleges, state board for 
        community colleges, and state university board are abolished, 
        effective July 1, 1995. 
           For the purposes of this subdivision "higher education 
        board" is the same entity as "board of trustees of the state 
        colleges and universities." 
           Sec. 57.  Laws 1993, First Special Session chapter 2, 
        article 9, section 1, subdivision 7, is amended to read: 
           Subd. 7.  [EXPIRATION.] This section expires on June 30, 
        1995 1997. 
           Sec. 58.  Laws 1994, chapter 532, article 6, section 12, is 
        amended to read: 
           Sec. 12.  [REVISOR INSTRUCTION.] 
           (a) In the 1996 edition of Minnesota Statutes, the revisor 
        shall renumber sections 136.31 as 136E.80; 136.31, subdivision 
        7, as 136E.80, subdivision 6; 136.32 as 136E.81; 136.33 as 
        136E.82; 136.34 as 136E.83; 136.35 as 136E.84; 136.36 as 
        136E.85; 136.37 as 136E.86; 136.38 as 136E.87; 136.41, 
        subdivision 8, as 136E.88, subdivision 1; 136.41, subdivision 9, 
        as 136E.88, subdivision 2; 136.41, subdivision 10, as 136E.88, 
        subdivision 3. 
           (b) The revisor shall add "Federal Tax on Interest" as a 
        headnote to section 136.41, subdivision 9. 
           Sec. 59.  [TRANSFER OF RETIREMENT FUND MEMBERSHIP FOR 
        TECHNICAL COLLEGE EMPLOYEES; ELECTION TO RETAIN RETIREMENT FUND 
        MEMBERSHIP.] 
           A person who is employed by a technical college or by the 
        technical college system on June 30, 1995, and who is 
        transferred to state employment shall remain a member of the 
        public employees retirement association or the Minneapolis 
        employees retirement fund, whichever applies, unless the person 
        affirmatively elects, in writing, retirement coverage by the 
        general state employees retirement plan of the Minnesota state 
        retirement system.  The following provisions govern the election 
        of a transfer or the retention of retirement benefit coverage:  
           (1) For a person who desires to transfer benefit coverage, 
        the affirmative written election must be made within 120 days of 
        the transfer of the employee to state employment.  
           (2) On behalf of transferred employees who retain 
        retirement benefit coverage with the pretransfer retirement 
        plan, the board shall make the applicable employer contributions 
        to the public employees retirement association under Minnesota 
        Statutes, section 353.27, subdivisions 3 and 3a, or the same 
        percentage of covered payroll employer contribution to the 
        Minneapolis employees retirement fund that special school 
        district No. 1 is required to make for that school year under 
        Minnesota Statutes, section 422A.101, subdivision 2.  
           (3) An employee who makes a retirement benefit coverage 
        transfer election under this section may revoke that election at 
        any time within the first six months after the person becomes a 
        state employee.  Once an employee revokes the retirement benefit 
        coverage transfer election, the employee may not make another 
        election.  If the initial retirement benefit coverage transfer 
        election is revoked, all retirement contributions made by or on 
        behalf of the employee revoking a prior election must be 
        transferred to the applicable retirement plan as though they 
        were erroneous deductions or contributions, plus monthly 
        interest at an annual rate of 8.5 percent, compounded monthly, 
        and the balance remaining between any contribution amount 
        transferred and the amount of contributions that otherwise would 
        have been due are payable in the applicable proportions by the 
        revoking employee and the board, plus monthly interest at an 
        annual rate of 8.5 percent, compounded monthly.  
           (4) The executive directors of the Minnesota state 
        retirement system, the public employees retirement association, 
        and the Minneapolis employees retirement fund, and the 
        chancellor of the higher education system, shall confer and 
        jointly adopt appropriate procedures for making the retirement 
        benefit coverage transfer elections under this section.  
           (5) The executive directors of the public employees 
        retirement association, the Minnesota state retirement system, 
        and the Minneapolis employees retirement fund, whichever 
        applies, shall, upon request, provide appropriate benefit 
        counseling to applicable affected employees on the effect of 
        electing retirement benefit coverage by the general state 
        employees retirement plan of the Minnesota state retirement 
        system. 
           Sec. 60.  [INSURANCE TRANSITION.] 
           This section applies to a technical college employee of a 
        school district, intermediate district, or regional district who 
        becomes a state employee on July 1, 1995.  If such an employee 
        had amounts withheld from paychecks issued by the district 
        either before or after June 30, 1995, to cover the costs of 
        insurance benefits for a period after June 30, 1995, the 
        district must refund any such amounts to the employee by 
        September 1, 1995.  The district must also transfer any money 
        designated as the employer share of these benefits to the board 
        of trustees of the Minnesota state colleges and universities to 
        be credited toward the employer share of insurance benefits.  
           Sec. 61.  [COLLEGE AND UNIVERSITY ADMINISTRATION.] 
           By February 15, 1996, the board of trustees shall report to 
        the education committees of the house of representatives and 
        senate on plans to reduce the administrative costs in the state 
        colleges and universities.  The plan shall outline the board's 
        goals for administrative cost reductions at both the system 
        office and the colleges and universities, efforts to promote 
        collaboration among institutions, increases in productivity for 
        administrators, faculty, staff, and students, and measures to 
        reduce overlap and duplication in programs.  
           Sec. 62.  [ELIMINATING STATUTES; BOARD RECOMMENDATIONS.] 
           By January 1, 1996, the board of trustees of the Minnesota 
        state colleges and universities and the board of regents of the 
        University of Minnesota shall provide the education committees 
        of the legislature with recommendations to reduce the number of 
        statutory sections relating to higher education, including, but 
        not limited to, recommendations regarding statutory sections 
        that could be incorporated in board policies or procedures, and 
        regarding statutory sections that are obsolete. 
           Sec. 63.  [EARLY SEPARATION INCENTIVES.] 
           Subdivision 1.  [EMPLOYER PARTICIPATION; HIGHER EDUCATION 
        AGENCIES.] (a) In order to minimize the disruptive effects of 
        layoffs or reorganization attributable to the merger of the 
        state universities, community colleges, and technical colleges, 
        and the restructuring of the higher education coordinating 
        board, employees of the higher education coordinating board, the 
        state university, community college, and technical college 
        systems, and employees of local school districts, joint 
        technical districts, and intermediate districts assigned to a 
        technical college position, who are employed in positions that 
        are to be eliminated in the merger and restructuring, as 
        certified by the chancellor of the higher education board or the 
        executive director of the higher education coordinating board, 
        are entitled to elect an early separation incentive set forth in 
        subdivision 3. 
           (b) The higher education board and the higher education 
        coordinating board must determine those specific positions to be 
        permanently eliminated as part of the merger or restructuring 
        and identify the employees who may elect one of the early 
        separation incentives established by this section. 
           (c) For the purposes of this section "higher education 
        board" is the same entity as "board of trustees of the state 
        colleges and universities" and the higher education coordinating 
        board is the same entity as the "higher education services 
        office." 
           Subd. 2.  [ELIGIBILITY.] A person employed by the employing 
        units identified in subdivision 1 is eligible to elect the 
        incentive if the person: 
           (1) is an employee of the higher education coordinating 
        board, a state university, community college, or technical 
        college, or an administrative employee of a local school 
        district, joint technical district and intermediate district 
        assigned to a technical college position whose position is to be 
        eliminated; 
           (2) is at least age 55 but is not yet age 65; 
           (3) is employed in a permanent position and in active work 
        status at the time the incentive is elected; 
           (4) upon retirement, termination, or separation is 
        immediately eligible for a retirement annuity from a defined 
        benefit Minnesota public employee pension plan or a distribution 
        from a defined contribution Minnesota public employee pension 
        plan; 
           (5) retires, separates, or is terminated from an eligible 
        position after June 30, 1994, but before July 1, 1996; and 
           (6) has been certified by the chancellor of the higher 
        education board or the executive director of the higher 
        education coordinating board as eligible to elect an early 
        separation incentive. 
           Notwithstanding anything in this subdivision, the executive 
        director of the higher education coordinating board, or the 
        chancellor of the higher education board may certify any 
        employee, regardless of age, as eligible to elect the six-month 
        retraining leave described in subdivision 3, paragraph (d).  
           Subd. 3.  [INCENTIVES.] (a) Eligible employees may elect 
        one of the following incentives but may not elect both.  
           (b) Retirement under this section means permanent 
        separation or termination from employment with or under the 
        control of the higher education board, the higher education 
        coordinating board, or the higher education systems to be merged.
           (c) Employees who separate, terminate, or retire with the 
        early retirement incentive under paragraph (e) may not be 
        rehired by the state in any employment position under the 
        control of the higher education board or the higher education 
        coordinating board. 
           (d) An eligible employee who receives a termination notice 
        after July 1, 1994, may elect to take a six-month retraining 
        leave in order to complete a course of study that is approved by 
        the higher education board or the higher education coordinating 
        board and which is designed to prepare the employee to assume a 
        faculty position at a state university, community college, or 
        technical college.  The retraining leave must be at the full 
        salary level that the person received immediately before the 
        termination notice, including fringe benefits.  The leave must 
        be completed no later than June 30, 1996.  Employees who seek to 
        return to teaching must satisfy the qualifications established 
        by applicable collective bargaining agreements.  Any subsequent 
        faculty appointments must be in accordance with collective 
        bargaining agreements and policies of the higher education 
        board.  The individual's pretermination notice employment ceases 
        at the conclusion of the retraining leave.  Individual employee 
        eligibility for severance payments must be made in accordance 
        with the policies of the employing unit in effect at the time 
        the incentive was elected.  Notice of election of this incentive 
        must be made before April 1, 1996, on forms prescribed by the 
        higher education board. 
           (e) An eligible employee may elect the following instead of 
        the incentive in paragraph (d): 
           (1) state-paid hospital, medical, and dental insurance to 
        age 65.  An employee who retires, is terminated, or is separated 
        is eligible for single or dependent insurance coverages, 
        whichever applies, and any employer payments to which the person 
        was entitled immediately before retirement, termination, or 
        separation subject to any changes in coverage and employer and 
        employee payments through collective bargaining or personnel 
        plans in positions equivalent to the position from which the 
        employee retired, terminated, or separated.  The employee is not 
        eligible for employer-paid life insurance.  If the employee is 
        not yet age 65 at the time of retirement or separation, the 
        employee is eligible for employer-paid insurance under the 
        provisions of a personnel plan and has at least as many months 
        service with the current employer and as the number of months 
        the individual is under age 65 at the time of retirement; and 
           (2) if the eligible employee has at least 15 years of 
        combined service credit in a Minnesota public pension plan, a 
        one-time opportunity to purchase up to two years of service 
        credit in or to make not more than two years of additional 
        member contributions to the public pension plan that the 
        employee is a member of at the time of retirement or separation 
        as follows: 
           (i) Eligible employees may have the additional payment made 
        on the basis of the employee's base salary in the year of 
        separation as denoted in the salary schedule in the applicable 
        employer personnel policy and at the rate and in the manner 
        specified in section 352.04, 353.27, 354.42, or 354A.12, 
        whichever applies.  The employee payment must include interest 
        at the rate of 8.5 percent.  The employer shall make the 
        required employer contribution and employer additional 
        contribution to the retirement fund as specified in section 
        352.04, 353.27, 354.42, or 354A.12, whichever applies for an 
        employee who elects this option.  Both the required employee and 
        employer payments must be made to the fund before the employee's 
        date of retirement or separation, whichever is earlier. 
           (ii) Defined contribution plan members in plans established 
        by chapter 352D or 354B must have additional employee and 
        employer contributions made on the basis of the employee's base 
        salary in the year of retirement as denoted in the salary 
        schedule in the applicable employer personnel policy and at the 
        rate and in the manner specified in section 352D.04, subdivision 
        2, or 354B.04, as applicable.  The additional contributions must 
        be made before the employee's date of retirement or separation, 
        whichever is earlier. 
           Subd. 4.  [PROFESSIONAL CONTRACTS; SELF LOAN 
        PROGRAM.] Notwithstanding anything in this section, employees 
        eligible for early separation incentives under this section may 
        be employed under a professional, technical contract to provide 
        technical assistance relating to the student educational loan 
        fund (SELF) program, or to the statewide database, not to exceed 
        1,044 hours in any consecutive 12-month period. 
           Sec. 64.  [REVISOR INSTRUCTION.] 
           (a) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall renumber each section in column A 
        with the corresponding number in column B.  
                  COLUMN A                    COLUMN B
                  136.015                     136F.015
                  136.017                     136F.017
                  136.31                      136F.90
                  136.31, subd. 7             136F.90, subd. 6
                  136.32                      136F.91
                  136.33                      136F.92
                  136.34                      136F.93
                  136.35                      136F.94
                  136.36                      136F.95
                  136.37                      136F.96
                  136.38                      136F.97
                  136.41, subd. 8             136F.98, subd. 1
                  136.41, subd. 9             136F.98, subd. 2
                  136.41, subd. 10            136F.98, subd. 3
                  136E.01                     136F.02
                  136E.02                     136F.03
                  136E.021                    136F.04
                  136E.03                     136F.05
                  136E.04, subd. 1            136F.06
                  136E.04, subd. 8            136F.47
                  136E.05                     136F.52
                  136E.31                     136F.41
                  136E.525                    136F.22
                  136E.692                    136F.66
           (b) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall correct all cross-references to 
        sections renumbered, recodified, or repealed in sections 1 to 65.
           (c) In the next and subsequent editions of Minnesota 
        Statutes, the revisor shall change the term "higher education 
        board," and similar terms to "board of trustees of the Minnesota 
        state colleges and universities," or similar terms. 
           Sec. 65.  [REPEALER.] 
           Minnesota Statutes 1994, sections 15.38, subdivision 4; 
        136.01; 136.02; 136.03; 136.031; 136.036; 136.045; 136.065; 
        136.07; 136.09; 136.10; 136.11; 136.111; 136.12; 136.13; 136.14; 
        136.141; 136.142; 136.143; 136.144; 136.145; 136.146; 136.147; 
        136.17; 136.171; 136.172; 136.18; 136.19; 136.20; 136.21; 
        136.22; 136.232; 136.24; 136.25; 136.261; 136.27; 136.31; 
        136.311; 136.32; 136.33; 136.34; 136.35; 136.36; 136.37; 136.38; 
        136.40; 136.41; 136.42; 136.43; 136.44; 136.45; 136.46; 136.47; 
        136.48; 136.49; 136.50; 136.501; 136.502; 136.503; 136.504; 
        136.505; 136.506; 136.507; 136.55; 136.56; 136.57; 136.58; 
        136.60; 136.6011; 136.602; 136.603; 136.61; 136.62; 136.621; 
        136.622; 136.63; 136.65; 136.651; 136.653; 136.67; 136.70; 
        136.71; 136.72; 136.88; 136.90; 136C.01; 136C.02; 136C.03; 
        136C.04; 136C.041; 136C.042; 136C.043; 136C.044; 136C.05; 
        136C.06; 136C.07; 136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 
        136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 136C.50; 
        136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 136C.64; 136C.65; 
        136C.66; 136C.67; 136C.68; 136C.69; 136C.70; 136C.71; 136C.75; 
        136E.04, subdivisions 2, 3, 4, 5, 6, and 7; 136E.395; and 
        136E.692, subdivision 4, are repealed.  
           Sec. 66.  [EFFECTIVE DATE.] 
           Sections 56 and 63 are effective the day following final 
        enactment. 
           Presented to the governor May 22, 1995 
           Signed by the governor May 24, 1995, 10:12 a.m.

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