1.1                          A bill for an act
  1.2             relating to higher education; abolishing the higher 
  1.3             education coordinating board and transferring some of 
  1.4             its duties; creating a higher education services 
  1.5             office and a higher education administrators council; 
  1.6             amending Minnesota Statutes 1994, sections 126.663, 
  1.7             subdivision 3; 126A.02, subdivision 2; 135A.12, 
  1.8             subdivision 1; 135A.15, subdivision 1; 135A.153, 
  1.9             subdivision 1; 136A.01; 136A.03; 136A.07; 136A.08; 
  1.10            136A.101, subdivisions 2 and 3; 136A.15, subdivisions 
  1.11            3 and 4; 136A.16, subdivision 1; 136A.233, subdivision 
  1.12            2; 136A.26, subdivisions 1 and 2; 136A.42; 136A.62, 
  1.13            subdivision 2; 136A.69; 141.25, subdivision 8; 
  1.14            144.1487, subdivision 1; 144.1488, subdivisions 1 and 
  1.15            4; 144.1489, subdivisions 1, 3, and 4; 144.1490; 
  1.16            144.1491, subdivision 2; and 298.2214, subdivision 5; 
  1.17            proposing coding for new law in Minnesota Statutes, 
  1.18            chapters 135A; and 136A; repealing Minnesota Statutes 
  1.19            1994, sections 135A.052, subdivisions 2 and 3; 
  1.20            135A.08; 135A.09; 135A.10; 135A.11; 135A.12, 
  1.21            subdivision 5; 136A.02; 136A.04; 136A.041; 136A.1352; 
  1.22            136A.1353; 136A.1354; 136A.85; 136A.86; 136A.87; 
  1.23            136A.88; 144.1488, subdivision 2; and 148.236. 
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  Minnesota Statutes 1994, section 126.663, 
  1.26  subdivision 3, is amended to read: 
  1.27     Subd. 3.  [MODEL LEARNER OUTCOMES.] The department shall 
  1.28  develop and maintain model learner outcomes in state board 
  1.29  identified subject areas, including career vocational learner 
  1.30  outcomes.  The department shall make learner outcomes available 
  1.31  upon request by a district.  Learner outcomes shall be for 
  1.32  pupils in early childhood through grade 12.  The department 
  1.33  shall consult with each of the public post-secondary systems ~~and~~ 
  1.34  ~~with the higher education coordinating board~~ in developing model 
  2.1   learner outcomes appropriate for entry into post-secondary 
  2.2   institutions.  Learner outcomes shall include thinking and 
  2.3   problem solving skills. 
  2.4      Sec. 2.  Minnesota Statutes 1994, section 126A.02, 
  2.5   subdivision 2, is amended to read: 
  2.6      Subd. 2.  [BOARD MEMBERS.] A ~~17-member~~ 16-member board 
  2.7   shall advise the director.  The board is made up of the 
  2.8   commissioners of the department of natural resources; the 
  2.9   pollution control agency; the department of agriculture; the 
  2.10  department of education; the director of the office of strategic 
  2.11  and long-range planning; the chair of the board of water and 
  2.12  soil resources; ~~the executive director of the higher education~~ 
  2.13  ~~coordinating board;~~ the executive secretary of the board of 
  2.14  teaching; the director of the extension service; and eight 
  2.15  citizen members representing diverse interests appointed by the 
  2.16  governor.  The governor shall appoint one citizen member from 
  2.17  each congressional district.  The citizen members are subject to 
  2.18  section 15.0575.  Two of the citizen members appointed by the 
  2.19  governor must be licensed teachers currently teaching in the 
  2.20  K-12 system.  The governor shall annually designate a member to 
  2.21  serve as chair for the next year. 
  2.22     Sec. 3.  [135A.047] [HIGHER EDUCATION ADMINISTRATORS 
  2.23  COUNCIL.] 
  2.24     Subdivision 1.  [ESTABLISHED.] A higher education 
  2.25  administrators council is established.  The council is composed 
  2.26  of the president of the University of Minnesota, the provost of 
  2.27  arts, sciences and engineering at the Twin Cities campus, and 
  2.28  the chancellor of a coordinate University of Minnesota campus 
  2.29  selected by the other chancellors; the chancellor of the higher 
  2.30  education board, and the president of a state university, the 
  2.31  president of a community college, and the president of a 
  2.32  technical college, each selected by their respective group of 
  2.33  presidents; the president of the private college council; and a 
  2.34  representative from the Minnesota association of private 
  2.35  post-secondary schools.  The commissioner of education and the 
  2.36  commissioner of finance shall serve as ex officio, nonvoting 
  3.1   members. 
  3.2      Subd. 2.  [DUTIES.] The higher education administrators 
  3.3   council shall: 
  3.4      (1) provide information and assistance to high schools and 
  3.5   other organizations to help students prepare and plan for 
  3.6   college; 
  3.7      (2) enter into reciprocity agreements with neighboring 
  3.8   states and provinces, as provided in section 136A.08; 
  3.9      (3) appoint, in conjunction with the student advisory 
  3.10  council as provided in section 136A.031, subdivision 2, the 
  3.11  director of the higher education services office, as provided in 
  3.12  section 136A.01; 
  3.13     (4) consult with the student advisory council, established 
  3.14  in section 136A.011, whenever necessary but at least quarterly; 
  3.15  and 
  3.16     (5) communicate with and make recommendations to the 
  3.17  governor and the legislature regarding issues and needs in 
  3.18  higher education, except that the higher education services 
  3.19  office shall report on financial aid. 
  3.20     Sec. 4.  Minnesota Statutes 1994, section 135A.12, 
  3.21  subdivision 1, is amended to read: 
  3.22     Subdivision 1.  [APPLICABILITY.] This section applies 
  3.23  to ~~the higher education coordinating board,~~ each public 
  3.24  post-secondary governing board~~,~~ and each public post-secondary 
  3.25  institution~~, and each school board that operates a technical~~ 
  3.26  ~~college~~.  
  3.27     Sec. 5.  Minnesota Statutes 1994, section 135A.15, 
  3.28  subdivision 1, is amended to read: 
  3.29     Subdivision 1.  [POLICY REQUIRED.] The governing board of 
  3.30  each public technical college, community college, or state 
  3.31  university shall, and the University of Minnesota is requested 
  3.32  to, adopt a clear, understandable written policy on sexual 
  3.33  harassment and sexual violence that informs victims of their 
  3.34  rights under the crime victims bill of rights, including the 
  3.35  right to assistance from the crime victims reparations board and 
  3.36  the office of the crime victim ombudsman.  The policy must apply 
  4.1   to students and employees and must provide information about 
  4.2   their rights and duties.  The policy must apply to criminal 
  4.3   incidents occurring on property owned by the post-secondary 
  4.4   system or institution in which the victim is a student or 
  4.5   employee of that system or institution.  It must include 
  4.6   procedures for reporting incidents of sexual harassment or 
  4.7   sexual violence and for disciplinary actions against violators.  
  4.8   During student registration, each technical college, community 
  4.9   college, or state university shall, and the University of 
  4.10  Minnesota is requested to, provide each student with information 
  4.11  regarding its policy.  A copy of the policy also shall be posted 
  4.12  at appropriate locations on campus at all times.  Each private 
  4.13  post-secondary institution that enrolls students who receive 
  4.14  state financial aid must adopt a policy that meets the 
  4.15  requirements of this section.  ~~The higher education coordinating~~ 
  4.16  ~~board shall coordinate the policy development of the systems and~~ 
  4.17  ~~institutions and periodically provide for review and necessary~~ 
  4.18  ~~changes in the policies.~~ 
  4.19     Sec. 6.  Minnesota Statutes 1994, section 135A.153, 
  4.20  subdivision 1, is amended to read: 
  4.21     Subdivision 1.  [CREATION AND DESIGNATION.] The higher 
  4.22  education center on violence and abuse is created.  The higher 
  4.23  education center on violence and abuse shall be located at and 
  4.24  managed by a public or private post-secondary institution in 
  4.25  Minnesota.  ~~The higher education coordinating board shall~~ 
  4.26  ~~designate the location of the center following review of~~ 
  4.27  ~~proposals from potential higher education sponsors.~~ 
  4.28     Sec. 7.  Minnesota Statutes 1994, section 136A.01, is 
  4.29  amended to read: 
  4.30     136A.01 [HIGHER EDUCATION SERVICES OFFICE.] 
  4.31     Subdivision 1.  [CREATION.] ~~A coordinating board~~ An office 
  4.32  for higher education in the state of Minnesota, to be known as 
  4.33  the Minnesota higher education ~~coordinating board~~ services 
  4.34  office or HESO, is ~~hereby~~ created. 
  4.35     Subd. 2.  [RESPONSIBILITIES.] The higher education services 
  4.36  office is responsible for: 
  5.1      (1) necessary state level administration of financial aid 
  5.2   programs, including accounting, auditing, and disbursing state 
  5.3   and federal financial aid funds, and reporting on financial aid 
  5.4   programs to the governor and the legislature; 
  5.5      (2) approval, registration, licensing, and financial aid 
  5.6   eligibility of private collegiate and career schools, under 
  5.7   sections 136A.61 to 136A.71 and chapter 141; 
  5.8      (3) administering the telecommunications council under Laws 
  5.9   1993, First Special Session chapter 2, article 5, section 2, and 
  5.10  the Learning Network of Minnesota; 
  5.11     (4) negotiating and administering reciprocity under the 
  5.12  direction of the higher education administrators council; 
  5.13     (5) publishing and distributing financial aid information 
  5.14  and materials; 
  5.15     (6) collecting and maintaining student enrollment and 
  5.16  financial aid data; and 
  5.17     (7) prescribing policies, procedures, and rules under 
  5.18  chapter 14 necessary to administer the programs under its 
  5.19  supervision. 
  5.20     Sec. 8.  Minnesota Statutes 1994, section 136A.03, is 
  5.21  amended to read: 
  5.22     136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
  5.23     ~~The higher education coordinating board may appoint an~~ 
  5.24  ~~executive secretary or director as its principal executive~~ 
  5.25  ~~officer, and such other officers and employees as it may deem~~ 
  5.26  ~~necessary to carry out its duties.~~  The ~~executive secretary or~~ 
  5.27  director of the higher education services office shall possess 
  5.28  ~~such~~ the powers and perform ~~such~~ the duties as ~~are delegated~~ 
  5.29  prescribed by the ~~board~~ higher education administrators council 
  5.30  and shall serve in the unclassified service of the state civil 
  5.31  service.  The salary of the ~~executive~~ director shall be 
  5.32  established ~~pursuant~~ by the higher education administrators 
  5.33  council according to section 15A.081, subdivision 1.  The 
  5.34  ~~executive~~ director shall be a person qualified by training ~~and~~ 
  5.35  ~~ability~~ or experience in the field of higher education or 
  5.36  in ~~educational~~ financial aid administration.  The ~~board~~ director 
  6.1   may ~~also~~ appoint other ~~officers and~~ professional employees who 
  6.2   shall serve in the unclassified service of the state civil 
  6.3   service ~~and fix the salaries thereof which shall be commensurate~~ 
  6.4   ~~with salaries in the classified service~~.  All other employees 
  6.5   shall be in the classified civil service.  
  6.6      An officer or professional employee in the unclassified 
  6.7   service as provided in this section is a person who has studied 
  6.8   higher education or a related field at the graduate level or has 
  6.9   similar experience and who is qualified for a career financial 
  6.10  aid and other aspects in some aspect of higher education and for 
  6.11  activities in keeping with the planning and administrative 
  6.12  responsibilities of the ~~board~~ office and who is appointed to 
  6.13  assume responsibility for administration of educational programs 
  6.14  or research in matters of higher education. 
  6.15     Sec. 9.  [136A.031] [ADVISORY GROUPS.] 
  6.16     Subdivision 1.  [APPOINTMENT.] The director of the higher 
  6.17  education services office may appoint advisory task forces as 
  6.18  necessary to assist in the administration of the higher 
  6.19  education services office responsibilities.  The task forces 
  6.20  expiration and the terms, compensation, and removal of members 
  6.21  are as provided in section 15.059. 
  6.22     Subd. 2.  [STUDENT ADVISORY COUNCIL.] A student advisory 
  6.23  council to the higher education services office is established.  
  6.24  The members of the council shall include the chair of the 
  6.25  University of Minnesota student senate, the state chair of the 
  6.26  Minnesota state university student association, the president of 
  6.27  the Minnesota community college student association, the 
  6.28  president of the Minnesota technical college student 
  6.29  association, the president of the Minnesota association of 
  6.30  private college students, and a student who is enrolled in a 
  6.31  private vocational school, to be appointed by the Minnesota 
  6.32  association of private post-secondary schools.  A member may be 
  6.33  represented by a designee.  The council shall select one of its 
  6.34  members to serve as chair. 
  6.35     The director of the higher education services office shall 
  6.36  inform the student advisory council of all matters under 
  7.1   consideration and shall refer all proposals to the council 
  7.2   before taking action or sending the proposals to the higher 
  7.3   education administrators council.  The student advisory council 
  7.4   shall report to the director of the higher education services 
  7.5   office quarterly and at other times that the council considers 
  7.6   desirable.  The council shall determine its meeting times, but 
  7.7   the council shall also meet with the director of the services 
  7.8   office within 30 days after the director's request for a council 
  7.9   meeting. 
  7.10     The advisory council shall: 
  7.11     (1) appoint two members to serve jointly with the higher 
  7.12  education administrators council in selecting a director of the 
  7.13  higher education services office; 
  7.14     (2) bring to the attention of the higher education services 
  7.15  office any matter that the council believes needs the attention 
  7.16  of the office; 
  7.17     (3) make recommendations to the higher education services 
  7.18  office as the council finds appropriate; 
  7.19     (4) appoint student members to the higher education 
  7.20  services office advisory groups as provided in subdivision 3; 
  7.21  and 
  7.22     (5) provide any reasonable assistance to the office. 
  7.23     Subd. 3.  [STUDENT REPRESENTATION.] If requested by the 
  7.24  student advisory council, the director must place at least one 
  7.25  student from an affected educational system on any group created 
  7.26  under subdivision 1.  The student member or members shall be 
  7.27  appointed by the student advisory council. 
  7.28     Sec. 10.  Minnesota Statutes 1994, section 136A.07, is 
  7.29  amended to read: 
  7.30     136A.07 [REPORTS.] 
  7.31     The higher education ~~coordinating board~~ administrators 
  7.32  council shall report to the governor and legislature concerning 
  7.33  its activities from time to time and may report ~~in connection~~ 
  7.34  ~~therewith~~ to the governing body of each institution of higher 
  7.35  education in the state, both public and private.  It shall file 
  7.36  a formal report including, but not limited to, detailed 
  8.1   financial aid information, prepared by the higher education 
  8.2   services office, with the governor and the legislature not later 
  8.3   than October 15 of each even-numbered year ~~so that the~~ 
  8.4   ~~information therein contained, including recommendations, may be~~ 
  8.5   ~~embodied in the governor's budget message to the legislature.~~  
  8.6   ~~It shall also report to the legislature not later than November~~ 
  8.7   ~~15 of each even-numbered year~~. 
  8.8      Sec. 11.  Minnesota Statutes 1994, section 136A.08, is 
  8.9   amended to read: 
  8.10     136A.08 [RECIPROCAL AGREEMENTS RELATING TO NONRESIDENT 
  8.11  TUITION WITH OTHER STATES OR PROVINCES.] 
  8.12     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
  8.13  section, the terms "province" and "provincial" mean the Canadian 
  8.14  province of Manitoba. 
  8.15     Subd. 2.  [AUTHORIZATION.] The ~~Minnesota~~ higher education 
  8.16  ~~coordinating board~~ administrators council, in consultation with 
  8.17  the commissioner of finance and each affected public 
  8.18  post-secondary board, may enter into agreements, on subjects 
  8.19  that include remission of nonresident tuition for designated 
  8.20  categories of students at public post-secondary institutions, 
  8.21  with appropriate state or provincial agencies and public 
  8.22  post-secondary institutions in other states or provinces.  The 
  8.23  agreements shall be for the purpose of the mutual improvement of 
  8.24  educational advantages for residents of this state and other 
  8.25  states or provinces with whom agreements are made.  The higher 
  8.26  education services office shall negotiate and administer any 
  8.27  agreement entered into by the council. 
  8.28     Subd. 3.  [WISCONSIN.] A higher education reciprocity 
  8.29  agreement with the state of Wisconsin may include provision for 
  8.30  the transfer of funds between Minnesota and Wisconsin provided 
  8.31  that an income tax reciprocity agreement between Minnesota and 
  8.32  Wisconsin is in effect for the period of time included under the 
  8.33  higher education reciprocity agreement.  If this provision is 
  8.34  included, the amount of funds to be transferred shall be 
  8.35  determined according to a formula which is mutually acceptable 
  8.36  to the ~~board~~ council and a duly designated agency representing 
  9.1   Wisconsin.  The formula shall recognize differences in tuition 
  9.2   rates between the two states and the number of students 
  9.3   attending institutions in each state under the agreement.  Any 
  9.4   payments to Minnesota by Wisconsin shall be deposited by the 
  9.5   ~~board~~ higher education services office in the general fund of 
  9.6   the state treasury.  The amount required for the payments shall 
  9.7   be certified by the ~~executive~~ director of the higher 
  9.8   education ~~coordinating board~~ services office to the commissioner 
  9.9   of finance annually. 
  9.10     Subd. 4.  [NORTH DAKOTA; SOUTH DAKOTA.] A reciprocity 
  9.11  agreement with North Dakota may include provision for the 
  9.12  transfer of funds between Minnesota and North Dakota.  If 
  9.13  provision for transfer of funds between the two states is 
  9.14  included, the amount of funds to be transferred shall be 
  9.15  determined according to a formula which is mutually acceptable 
  9.16  to the ~~board~~ council and a duly designated agency representing 
  9.17  North Dakota.  In adopting a formula, the ~~board~~ council shall 
  9.18  consider tuition rates in the two states and the number of 
  9.19  students attending institutions in each state under the 
  9.20  agreement.  Any payment to Minnesota by North Dakota shall be 
  9.21  deposited by the ~~board~~ higher education services office in the 
  9.22  general fund.  The amount required for the payments shall be 
  9.23  certified by the ~~executive~~ director of the ~~higher education~~ 
  9.24  ~~coordinating board~~ services office to the commissioner of 
  9.25  finance annually.  All provisions in this subdivision pertaining 
  9.26  to North Dakota shall also be applied to South Dakota, and all 
  9.27  authority and conditions granted for higher education 
  9.28  reciprocity with North Dakota are also granted for higher 
  9.29  education reciprocity with South Dakota. 
  9.30     Subd. 5.  [FINANCIAL AID.] The ~~board~~ council may enter into 
  9.31  an agreement, with a state or province with which it has 
  9.32  negotiated a reciprocity agreement for tuition, to permit 
  9.33  students to receive student aid awards from the student's state 
  9.34  or province of residence for attending an eligible institution 
  9.35  in the other state or province. 
  9.36     Subd. 6.  [APPROVAL.] An agreement made by the ~~board~~ 
 10.1   council under this section is not valid as to a particular 
 10.2   institution without the approval of that institution's state or 
 10.3   provincial governing board.  A valid agreement under this 
 10.4   subdivision that incurs additional financial liability to the 
 10.5   state or to any of the Minnesota public post-secondary boards, 
 10.6   beyond enrollment funding adjustments, must be submitted to the 
 10.7   commissioner of finance and to the chairs of the higher 
 10.8   education finance divisions of the senate and house for review.  
 10.9   The agreement remains valid unless it is disapproved in law. 
 10.10     Sec. 12.  Minnesota Statutes 1994, section 136A.101, 
 10.11  subdivision 2, is amended to read: 
 10.12     Subd. 2.  ~~"Board"~~ "Office" means the Minnesota higher 
 10.13  education ~~coordinating board~~ services office. 
 10.14     Sec. 13.  Minnesota Statutes 1994, section 136A.101, 
 10.15  subdivision 3, is amended to read: 
 10.16     Subd. 3.  "Director" means the ~~executive~~ director of the 
 10.17  Minnesota higher education ~~coordinating board~~ services office. 
 10.18     Sec. 14.  Minnesota Statutes 1994, section 136A.15, 
 10.19  subdivision 3, is amended to read: 
 10.20     Subd. 3.  ~~"Board"~~ "Office" means the Minnesota higher 
 10.21  education ~~coordinating board~~ services office. 
 10.22     Sec. 15.  Minnesota Statutes 1994, section 136A.15, 
 10.23  subdivision 4, is amended to read: 
 10.24     Subd. 4.  "Director" means the ~~executive~~ director of the 
 10.25  Minnesota higher education ~~coordinating board~~ services office. 
 10.26     Sec. 16.  Minnesota Statutes 1994, section 136A.16, 
 10.27  subdivision 1, is amended to read: 
 10.28     Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
 10.29  higher education ~~coordinating board~~ services office is 
 10.30  designated as the administrative agency for carrying out the 
 10.31  purposes and terms of sections 136A.15 to 136A.1702.  The ~~board~~ 
 10.32  office may establish one or more loan programs. 
 10.33     Sec. 17.  Minnesota Statutes 1994, section 136A.233, 
 10.34  subdivision 2, is amended to read: 
 10.35     Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
 10.36  to 136A.233, the words defined in this subdivision have the 
 11.1   meanings ascribed to them. 
 11.2      (a) "Eligible student" means a Minnesota resident enrolled 
 11.3   or intending to enroll at least half time in a degree, diploma, 
 11.4   or certificate program in a Minnesota post-secondary institution.
 11.5      (b) "Minnesota resident" means a student who meets the 
 11.6   conditions in section 136A.101, subdivision 8. 
 11.7      (c) "Financial need" means the need for financial 
 11.8   assistance in order to attend a post-secondary institution as 
 11.9   determined by a post-secondary institution according to 
 11.10  guidelines established by the higher education ~~coordinating~~ 
 11.11  ~~board~~ services office. 
 11.12     (d) "Eligible employer" means any eligible post-secondary 
 11.13  institution and any nonprofit, nonsectarian agency or state 
 11.14  institution located in the state of Minnesota, including state 
 11.15  hospitals, and also includes a handicapped person or a person 
 11.16  over 65 who employs a student to provide personal services in or 
 11.17  about the residence of the handicapped person or the person over 
 11.18  65. 
 11.19     (e) "Eligible post-secondary institution" means any 
 11.20  post-secondary institution eligible for participation in the 
 11.21  Minnesota state grant program as specified in section 136A.101, 
 11.22  subdivision 4. 
 11.23     (f) "Independent student" has the meaning given it in the 
 11.24  Higher Education Act of 1965, United States Code, title 20, 
 11.25  section 1070a-6, and applicable regulations. 
 11.26     (g) "Half-time" for undergraduates has the meaning given in 
 11.27  section 136A.101, subdivision 7b, and for graduate students is 
 11.28  defined by the institution. 
 11.29     Sec. 18.  Minnesota Statutes 1994, section 136A.26, 
 11.30  subdivision 1, is amended to read: 
 11.31     Subdivision 1.  [MEMBERSHIP.] The Minnesota higher 
 11.32  education facilities authority shall consist of eight members 
 11.33  appointed by the governor with the advice and consent of the 
 11.34  senate, and ~~the executive director of the Minnesota higher~~ 
 11.35  ~~education coordinating board.  The executive director of the~~ 
 11.36  ~~coordinating board may designate a member of the director's~~ 
 12.1   ~~staff to sit in the director's place as a member of the~~ 
 12.2   ~~authority~~ a representative of the higher education 
 12.3   administrators council.  
 12.4      All members to be appointed by the governor shall be 
 12.5   residents of the state.  At least two members must reside 
 12.6   outside the metropolitan area as defined in section 473.121, 
 12.7   subdivision 2.  At least one of the members shall be a person 
 12.8   having a favorable reputation for skill, knowledge, and 
 12.9   experience in the field of state and municipal finance; and at 
 12.10  least one shall be a person having a favorable reputation for 
 12.11  skill, knowledge, and experience in the building construction 
 12.12  field; and at least one of the members shall be a trustee, 
 12.13  director, officer, or employee of an institution of higher 
 12.14  education. 
 12.15     Sec. 19.  Minnesota Statutes 1994, section 136A.26, 
 12.16  subdivision 2, is amended to read: 
 12.17     Subd. 2.  [TERM; COMPENSATION; REMOVAL.] The membership 
 12.18  terms, compensation, removal of members, and filling of 
 12.19  vacancies for authority members other than the ~~executive~~ 
 12.20  ~~director of the higher education coordinating board or the~~ 
 12.21  ~~director's designee~~ representative of the higher education 
 12.22  administrators council, and the chief executive officer of the 
 12.23  private college council, shall be as provided in section 15.0575.
 12.24     Sec. 20.  Minnesota Statutes 1994, section 136A.42, is 
 12.25  amended to read: 
 12.26     136A.42 [ANNUAL REPORT.] 
 12.27     The authority shall keep an accurate account of all of its 
 12.28  activities and all of its receipts and expenditures and shall 
 12.29  annually make a report thereof to the higher education 
 12.30  ~~coordinating board~~ administrators council.  ~~The higher education~~ 
 12.31  ~~coordinating board shall review and comment upon the report and~~ 
 12.32  ~~make such recommendations as it deems necessary to the governor~~ 
 12.33  ~~and the legislature.~~ 
 12.34     Sec. 21.  Minnesota Statutes 1994, section 136A.62, 
 12.35  subdivision 2, is amended to read: 
 12.36     Subd. 2.  [~~BOARD~~ OFFICE.] ~~"Board"~~ "Office" means the 
 13.1   Minnesota higher education ~~coordinating board~~ services office. 
 13.2      Sec. 22.  Minnesota Statutes 1994, section 136A.69, is 
 13.3   amended to read: 
 13.4      136A.69 [FEES.] 
 13.5      The ~~board may~~ office shall collect reasonable registration 
 13.6   fees ~~not to exceed $450 for an initial registration of each~~ 
 13.7   ~~school and $350 for each annual renewal of an existing~~ 
 13.8   ~~registration~~ that are sufficient to recover, but do not exceed, 
 13.9   its costs of administering the registration program. 
 13.10     Sec. 23.  Minnesota Statutes 1994, section 141.25, 
 13.11  subdivision 8, is amended to read: 
 13.12     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications for 
 13.13  initial license under sections 141.21 to 141.36 shall be 
 13.14  accompanied by ~~$650 as~~ a nonrefundable application 
 13.15  fee established by the office that is sufficient to recover, but 
 13.16  not exceed, its administrative costs. 
 13.17     (b) All licenses shall expire one year from the date issued 
 13.18  by the board.  Each renewal application shall be accompanied by 
 13.19  a nonrefundable renewal fee ~~of $650~~ established by the office 
 13.20  that is sufficient to recover, but does not exceed, its 
 13.21  administrative costs.  
 13.22     (c) Application for renewal of license shall be made at 
 13.23  least 30 days before the expiration of the school's current 
 13.24  license.  Each renewal form shall be supplied by the ~~board~~ 
 13.25  office.  It shall not be necessary for an applicant to supply 
 13.26  all information required in the initial application at the time 
 13.27  of renewal unless requested by the ~~board~~ office. 
 13.28     Sec. 24.  Minnesota Statutes 1994, section 144.1487, 
 13.29  subdivision 1, is amended to read: 
 13.30     Subdivision 1.  [DEFINITIONS.] (a) For purposes of sections 
 13.31  144.1487 to 144.1492, the following ~~definitions apply~~ definition 
 13.32  applies. 
 13.33     (b) ~~"Board" means the higher education coordinating board.~~ 
 13.34     ~~(c)~~ "Health professional shortage area" means an area 
 13.35  designated as such by the federal Secretary of Health and Human 
 13.36  Services, as provided under Code of Federal Regulations, title 
 14.1   42, part 5, and United States Code, title 42, section 254E. 
 14.2      Sec. 25.  Minnesota Statutes 1994, section 144.1488, 
 14.3   subdivision 1, is amended to read: 
 14.4      Subdivision 1.  [DUTIES OF THE COMMISSIONER OF HEALTH.] The 
 14.5   commissioner shall administer the state loan repayment program.  
 14.6   The commissioner shall: 
 14.7      (1) ensure that federal funds are used in accordance with 
 14.8   program requirements established by the federal National Health 
 14.9   Services Corps; 
 14.10     (2) notify potentially eligible loan repayment sites about 
 14.11  the program; 
 14.12     (3) develop and disseminate application materials to sites; 
 14.13     (4) review and rank applications using the scoring criteria 
 14.14  approved by the federal Department of Health and Human Services 
 14.15  as part of the Minnesota department of health's National Health 
 14.16  Services Corps state loan repayment program application; 
 14.17     (5) select sites that qualify for loan repayment based upon 
 14.18  the availability of federal and state funding; 
 14.19     (6) ~~provide the higher education coordinating board with a~~ 
 14.20  ~~list of qualifying sites; and~~ 
 14.21     ~~(7)~~ carry out other activities necessary to implement and 
 14.22  administer sections 144.1487 to 144.1492. 
 14.23     ~~The commissioner shall enter into an interagency agreement~~ 
 14.24  ~~with the higher education coordinating board to carry out the~~ 
 14.25  ~~duties assigned to the board under sections 144.1487 to 144.1492.~~
 14.26     (7) verify the eligibility of program participants; 
 14.27     (8) sign a contract with each participant that specifies 
 14.28  the obligations of the participant and the state; 
 14.29     (9) arrange for the payment of qualifying educational loans 
 14.30  for program participants; 
 14.31     (10) monitor the obligated service of program participants; 
 14.32     (11) waive or suspend service or payment obligations of 
 14.33  participants in appropriate situations; 
 14.34     (12) place participants who fail to meet their obligations 
 14.35  in default; and 
 14.36     (13) enforce penalties for default. 
 15.1      Sec. 26.  Minnesota Statutes 1994, section 144.1488, 
 15.2   subdivision 4, is amended to read: 
 15.3      Subd. 4.  [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be 
 15.4   eligible to apply to the ~~higher education coordinating board~~ 
 15.5   commissioner for the loan repayment program, health 
 15.6   professionals must be citizens or nationals of the United 
 15.7   States, must not have any unserved obligations for service to a 
 15.8   federal, state, or local government, or other entity, and must 
 15.9   be ready to begin full-time clinical practice upon signing a 
 15.10  contract for obligated service. 
 15.11     (b) In selecting physicians for participation, the ~~board~~ 
 15.12  commissioner shall give priority to physicians who are board 
 15.13  certified or have completed a residency in family practice, 
 15.14  osteopathic general practice, obstetrics and gynecology, 
 15.15  internal medicine, or pediatrics.  A physician selected for 
 15.16  participation is not eligible for loan repayment until the 
 15.17  physician has an employment agreement or contract with an 
 15.18  eligible loan repayment site and has signed a contract for 
 15.19  obligated service with the ~~higher education coordinating~~ 
 15.20  ~~board~~ commissioner. 
 15.21     Sec. 27.  Minnesota Statutes 1994, section 144.1489, 
 15.22  subdivision 1, is amended to read:  
 15.23     Subdivision 1.  [CONTRACT REQUIRED.] Before starting the 
 15.24  period of obligated service, a participant must sign a contract 
 15.25  with the ~~higher education coordinating board~~ commissioner that 
 15.26  specifies the obligations of the participant and the ~~board~~ 
 15.27  commissioner. 
 15.28     Sec. 28.  Minnesota Statutes 1994, section 144.1489, 
 15.29  subdivision 3, is amended to read: 
 15.30     Subd. 3.  [LENGTH OF SERVICE.] Participants must agree to 
 15.31  provide obligated service for a minimum of two years.  A 
 15.32  participant may extend a contract to provide obligated service 
 15.33  for a third year, subject to ~~board~~ approval by the commissioner 
 15.34  and the availability of federal and state funding. 
 15.35     Sec. 29.  Minnesota Statutes 1994, section 144.1489, 
 15.36  subdivision 4, is amended to read: 
 16.1      Subd. 4.  [AFFIDAVIT OF SERVICE REQUIRED.] Within 30 days 
 16.2   of the start of obligated service, and by February 1 of each 
 16.3   succeeding calendar year, a participant shall submit an 
 16.4   affidavit to the ~~board~~ commissioner stating that the participant 
 16.5   is providing the obligated service and which is signed by a 
 16.6   representative of the organizational entity in which the service 
 16.7   is provided.  Participants must provide written notice to 
 16.8   the ~~board~~ commissioner within 30 days of:  a change in name or 
 16.9   address, a decision not to fulfill a service obligation, or 
 16.10  cessation of clinical practice. 
 16.11     Sec. 30.  Minnesota Statutes 1994, section 144.1490, is 
 16.12  amended to read: 
 16.13     144.1490 [RESPONSIBILITIES OF THE LOAN REPAYMENT PROGRAM.] 
 16.14     Subdivision 1.  [LOAN REPAYMENT.] Subject to the 
 16.15  availability of federal and state funds for the loan repayment 
 16.16  program, the ~~higher education coordinating board~~ commissioner 
 16.17  shall pay all or part of the qualifying education loans up to 
 16.18  $20,000 annually for each primary care physician participant 
 16.19  that fulfills the required service obligation.  For purposes of 
 16.20  this provision, "qualifying educational loans" are government 
 16.21  and commercial loans for actual costs paid for tuition, 
 16.22  reasonable education expenses, and reasonable living expenses 
 16.23  related to the graduate or undergraduate education of a health 
 16.24  care professional. 
 16.25     Subd. 2.  [PROCEDURE FOR LOAN REPAYMENT.] Program 
 16.26  participants, at the time of signing a contract, shall designate 
 16.27  the qualifying loan or loans for which the ~~higher education~~ 
 16.28  ~~coordinating board~~ commissioner is to make payments.  The 
 16.29  participant shall submit to the ~~board~~ commissioner all payment 
 16.30  books for the designated loan or loans or all monthly billings 
 16.31  for the designated loan or loans within five days of receipt.  
 16.32  The ~~board~~ commissioner shall make payments in accordance with 
 16.33  the terms and conditions of the designated loans, in an amount 
 16.34  not to exceed $20,000 when annualized.  If the amount paid by 
 16.35  the ~~board~~ commissioner is less than $20,000 during a 12-month 
 16.36  period, the ~~board~~ commissioner shall pay during the 12th month 
 17.1   an additional amount towards a loan or loans designated by the 
 17.2   participant, to bring the total paid to $20,000.  The total 
 17.3   amount paid by the ~~board~~ commissioner must not exceed the amount 
 17.4   of principal and accrued interest of the designated loans. 
 17.5      Sec. 31.  Minnesota Statutes 1994, section 144.1491, 
 17.6   subdivision 2, is amended to read: 
 17.7      Subd. 2.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 17.8   service obligations cancel in the event of a participant's 
 17.9   death.  The ~~board~~ commissioner may waive or suspend payment or 
 17.10  service obligations in case of total and permanent disability or 
 17.11  long-term temporary disability lasting for more than two years.  
 17.12  The ~~board~~ commissioner shall evaluate all other requests for 
 17.13  suspension or waivers on a case-by-case basis. 
 17.14     Sec. 32.  Minnesota Statutes 1994, section 298.2214, 
 17.15  subdivision 5, is amended to read: 
 17.16     Subd. 5.  [~~HECB AND~~ SYSTEM APPROVAL.] A program may not be 
 17.17  offered under a contract executed according to this section 
 17.18  unless it is approved by ~~the higher education coordinating board~~ 
 17.19  ~~and~~ the board of the system offering the program.  
 17.20     Sec. 33.  [TRANSFER.] 
 17.21     On July 1, 1995, the higher education coordinating board is 
 17.22  abolished and the duties and responsibilities of the board 
 17.23  related to financial aid, private institution registration and 
 17.24  private career school licensing, data management and reporting, 
 17.25  and telecommunications council and network functions, and 
 17.26  communications, are transferred to the higher education services 
 17.27  office as provided in Minnesota Statutes, section 15.039.  The 
 17.28  transfer includes two positions in the executive director's 
 17.29  office; 14 positions in the administrative services divisions; 
 17.30  13 positions in the financial aid division; five positions in 
 17.31  the policy and program planning division with direct 
 17.32  responsibility for database management/analysis, 
 17.33  telecommunications, private institution registration or private 
 17.34  career school licensing, and financial aid analysis; four 
 17.35  positions in the information management division; and two 
 17.36  positions in communications.  The director of the administrative 
 18.1   services division shall serve as acting director of the higher 
 18.2   education services office until a permanent director is 
 18.3   appointed.  All positions in the higher education coordinating 
 18.4   board that are not transferred to the higher education services 
 18.5   office under this section are abolished. 
 18.6      All material and property that does not relate directly to 
 18.7   financial aid, private institution registration or private 
 18.8   career school licensing, or telecommunications functions shall 
 18.9   be transferred to the higher education administrators council as 
 18.10  provided in Minnesota Statutes, section 15.039, subdivision 5. 
 18.11     By January 15, 1996, the director of the higher education 
 18.12  services office, in consultation with the department of finance, 
 18.13  shall provide recommendations to the higher education 
 18.14  administrators council, the education committees of the 
 18.15  legislature, and the governor on appropriate further reductions 
 18.16  in complement and appropriation. 
 18.17     Sec. 34.  [TRANSFER OF PROGRAMS.] 
 18.18     The responsibilities of the higher education coordinating 
 18.19  board confirmed and specified under Minnesota Statutes, sections 
 18.20  136A.1355 to 136A.1358, are transferred under Minnesota 
 18.21  Statutes, section 15.039, to the Minnesota department of health. 
 18.22     Sec. 35.  [FINANCIAL AID DELIVERY TASK FORCE.] 
 18.23     By July 15, 1995, the higher education administrators 
 18.24  council shall establish a task force to plan and begin 
 18.25  implementing improvements in the delivery of financial aid 
 18.26  services and funds.  The task force shall determine ways to 
 18.27  maximize the financial aid delivery at the campus level while 
 18.28  maintaining data collection, auditing, and other necessary 
 18.29  functions at the state level.  The task force shall include 
 18.30  system and campus representatives from each of the public 
 18.31  post-secondary systems, representatives of the private 
 18.32  collegiate and private vocational sectors, a representative of 
 18.33  the higher education services office, and representatives of the 
 18.34  student advisory council.  The task force shall present its 
 18.35  findings and recommendations to the director of the higher 
 18.36  education services office by December 1, 1995, and to the 
 19.1   education committees of the legislature by January 15, 1996. 
 19.2      Sec. 34.  [INSTRUCTION TO REVISOR.] 
 19.3      Subdivision 1.  [RENUMBERING.] In the next edition of 
 19.4   Minnesota Statutes, the revisor of statutes shall renumber each 
 19.5   section specified in column A with the number set forth in 
 19.6   column B.  The revisor shall make necessary cross-reference 
 19.7   changes consistent with the renumbering. 
 19.8             Column A                 Column B
 19.9             136A.80                  135A.51
 19.10            136A.81                  135A.52
 19.11     Subd. 2.  [NAME CHANGE.] The revisor of statutes is 
 19.12  directed to change the term "higher education coordinating 
 19.13  board," and similar terms, to "higher education services 
 19.14  office," or similar terms.  The change must be made in the next 
 19.15  edition of Minnesota Statutes. 
 19.16     Sec. 37.  [REPEALER.] 
 19.17     Minnesota Statutes 1994, sections 135A.052, subdivisions 2 
 19.18  and 3; 135A.08; 135A.09; 135A.10; 135A.11; 135A.12, subdivision 
 19.19  5; 136A.02; 136A.04; 136A.041; 136A.1352; 136A.1353; 136A.1354; 
 19.20  136A.85; 136A.86; 136A.87; 136A.88; 144.1488, subdivision 2; and 
 19.21  148.236, are repealed.