1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             coordinating board, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; requiring public 
  1.8             post-secondary institutions to convert to the semester 
  1.9             system; creating definitions and actions during 
  1.10            financial emergencies; regulating suspension of 
  1.11            community college intercollegiate sports programs; 
  1.12            establishing a nursing grant program; revising 
  1.13            allocations and use of the peace officers training 
  1.14            account; assigning duties to the library and 
  1.15            information services task force; requiring expansion 
  1.16            of the transfer curriculum; setting goals for 
  1.17            compensation plans and labor agreements; requiring a 
  1.18            state employee compensation study; establishing a 
  1.19            model instruction program in translating and 
  1.20            interpreting services; establishing a new funding 
  1.21            formula for public higher education systems; modifying 
  1.22            provisions relating to the higher education 
  1.23            coordinating board; modifying higher education grant 
  1.24            programs; providing for technical colleges land 
  1.25            acquisition and sale; consolidating and restructuring 
  1.26            certain higher education statutes to reflect the 
  1.27            merger of the community colleges, state universities, 
  1.28            and technical colleges; amending Minnesota Statutes 
  1.29            1994, sections 15.38, subdivision 3; 123.3514, 
  1.30            subdivision 3; 126.56, subdivision 5; 135A.08, 
  1.31            subdivisions 1, 2, and 3; 135A.10, subdivision 1; 
  1.32            135A.15, subdivision 1; 136A.01; 136A.02, subdivisions 
  1.33            1, 6, and 7; 136A.04, subdivision 1; 136A.043; 
  1.34            136A.05, subdivision 1; 136A.07; 136A.101, 
  1.35            subdivisions 5 and 8; 136A.121, subdivisions 5, 6, 9, 
  1.36            16, and by adding a subdivision; 136A.125, 
  1.37            subdivisions 4 and 6; 136A.1359, subdivisions 1, 2, 
  1.38            and 3; 136A.42; 136A.87; 136E.01, subdivision 1; 
  1.39            136E.02, subdivisions 1 and 3; 136E.021, subdivision 
  1.40            2; 136E.03; 136E.04, subdivisions 1, 3, and 7; 
  1.41            136E.05; 136E.31; 136E.525, subdivisions 1, 2, and 3; 
  1.42            136E.692, subdivisions 1, 3, and 4; 144.1487, 
  1.43            subdivision 1; 144.1488, subdivisions 1 and 4; 
  1.44            144.1489, subdivisions 1, 3, and 4; 144.1490; 
  1.45            144.1491, subdivision 2; 179A.07, subdivision 4; 
  1.46            298.2214, subdivision 5; and 626.861, subdivision 4; 
  2.1             Laws 1991, chapter 356, article 9, section 9, as 
  2.2             amended; Laws 1993, chapter 326, article 12, section 
  2.3             15, subdivisions 1, 4, and 5; and Laws 1994, chapter 
  2.4             643, section 69, by adding subdivisions; proposing 
  2.5             coding for new law in Minnesota Statutes, chapters 
  2.6             135A; 136; and 136A; proposing coding for new law as 
  2.7             Minnesota Statutes, chapter 136F; repealing Minnesota 
  2.8             Statutes 1994, sections 15.38, subdivision 4; 
  2.9             135A.031; 135A.032, subdivision 2; 135A.033; 135A.052, 
  2.10            subdivision 3; 136.01; 136.015; 136.017; 136.02; 
  2.11            136.03; 136.031; 136.036; 136.045; 136.065; 136.07; 
  2.12            136.09; 136.10; 136.11; 136.111; 136.12; 136.13; 
  2.13            136.14; 136.141; 136.142; 136.143; 136.144; 136.145; 
  2.14            136.146; 136.147; 136.17; 136.171; 136.172; 136.18; 
  2.15            136.19; 136.20; 136.21; 136.22; 136.232; 136.24; 
  2.16            136.25; 136.261; 136.27; 136.31; 136.311; 136.32; 
  2.17            136.33; 136.34; 136.35; 136.36; 136.37; 136.38; 
  2.18            136.40; 136.41; 136.42; 136.43; 136.44; 136.45; 
  2.19            136.46; 136.47; 136.48; 136.49; 136.50; 136.501; 
  2.20            136.502; 136.503; 136.504; 136.505; 136.506; 136.507; 
  2.21            136.55; 136.56; 136.57; 136.58; 136.60; 136.6011; 
  2.22            136.602; 136.603; 136.61; 136.62; 136.621; 136.622; 
  2.23            136.63; 136.65; 136.651; 136.653; 136.67; 136.70; 
  2.24            136.71; 136.72; 136.88; 136.90; 136A.04, subdivision 
  2.25            2; 136A.041; 136A.125, subdivision 5; 136A.85; 
  2.26            136A.86; 136A.88; 136C.01; 136C.02; 136C.03; 136C.04; 
  2.27            136C.041; 136C.042; 136C.043; 136C.044; 136C.05; 
  2.28            136C.06; 136C.07; 136C.075; 136C.08; 136C.13; 136C.15; 
  2.29            136C.17; 136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 
  2.30            136C.44; 136C.50; 136C.51; 136C.60; 136C.61; 136C.62; 
  2.31            136C.63; 136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 
  2.32            136C.69; 136C.70; 136C.71; 136C.75; 136D.77; 136D.81, 
  2.33            subdivision 2; 136E.04, subdivisions 2, 4, 5, and 6; 
  2.34            136E.395; 144.1488, subdivision 2; and 148.236; Laws 
  2.35            1993, chapter 326, article 12, section 15, subdivision 
  2.36            2; Laws 1993, First Special Session chapter 2, article 
  2.37            1, sections 2, subdivision 8; and 9, subdivision 6; 
  2.38            and Laws 1994, chapter 532, article 6, section 12, 
  2.39            paragraph (a). 
  2.40  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.41                             ARTICLE 1
  2.42                           APPROPRIATIONS
  2.43  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  2.44     The sums in the columns marked "APPROPRIATIONS" are 
  2.45  appropriated from the general fund, or other named fund, to the 
  2.46  agencies and for the purposes specified in this article.  The 
  2.47  listing of an amount under the figure "1996" or "1997" in this 
  2.48  article indicates that the amount is appropriated to be 
  2.49  available for the fiscal year ending June 30, 1996, or June 30, 
  2.50  1997, respectively.  "The first year" is fiscal year 1996.  "The 
  2.51  second year" is fiscal year 1997.  "The biennium" is fiscal 
  2.52  years 1996 and 1997. 
  2.53                          SUMMARY BY FUND
  2.54                            1996          1997           TOTAL
  2.55  General            $1,070,387,000 $1,068,999,000 $2,139,386,000
  3.1                    SUMMARY BY AGENCY - ALL FUNDS
  3.2                             1996          1997           TOTAL
  3.3   Higher Education Coordinating Board
  3.4                         120,222,000    122,012,000    242,234,000
  3.5   Board of Trustees of the Minnesota
  3.6   State Colleges and Universities
  3.7                         464,760,000    464,471,000    929,231,000
  3.8   Board of Regents of the University of Minnesota
  3.9                         484,580,000    481,691,000    966,271,000
  3.10  Mayo Medical Foundation
  3.11                            825,000        825,000      1,650,000
  3.12                                             APPROPRIATIONS 
  3.13                                         Available for the Year 
  3.14                                             Ending June 30 
  3.15                                            1996         1997 
  3.16  Sec. 2.  HIGHER EDUCATION
  3.17  COORDINATING BOARD
  3.18   Subdivision 1.  Total
  3.19  Appropriation                        120,222,000    122,012,000
  3.20  The amounts that may be spent from this 
  3.21  appropriation for each purpose are 
  3.22  specified in the following subdivisions.
  3.23  Subd. 2.  State Grants
  3.24       99,130,000       100,910,000
  3.25  If the appropriation in this 
  3.26  subdivision for either year is 
  3.27  insufficient, the appropriation for the 
  3.28  other year is available for it.  
  3.29  The legislature intends that the higher 
  3.30  education coordinating board make full 
  3.31  grant awards in each year of the 
  3.32  biennium.  
  3.33  This appropriation contains money for 
  3.34  increasing living allowances for state 
  3.35  grants to $4,240 each year.  
  3.36  The maximum state grant award in each 
  3.37  year for students attending a private 
  3.38  four-year institution shall be $5,889.  
  3.39  The maximum state grant award in each 
  3.40  year for students attending a private 
  3.41  two-year institution shall be $5,007. 
  3.42  This appropriation includes $250,000 
  3.43  each year for grants to nursing 
  3.44  programs to recruit persons of color 
  3.45  and to provide grants to nursing 
  3.46  students who are persons of color.  Of 
  3.47  this amount, $100,000 each year is for 
  3.48  recruitment and retention of students 
  3.49  of color in nursing programs leading to 
  3.50  licensure as a registered nurse.  Other 
  3.51  than the grants to students, all grants 
  4.1   shall be matched with at least the same 
  4.2   amount from grantee sources or nonstate 
  4.3   money.  
  4.4   If the federal government enacts a 
  4.5   federal student loan risk sharing fee, 
  4.6   the higher education coordinating board 
  4.7   shall bill the institutions that have a 
  4.8   cohort loan default rate greater than 
  4.9   the federal law permits so that risk 
  4.10  sharing fees can be recovered from the 
  4.11  institutions responsible for generating 
  4.12  these federal charges. 
  4.13  The legislature anticipates that 
  4.14  tuition and fee increases will not 
  4.15  exceed three percent per year.  If 
  4.16  either public post-secondary system 
  4.17  increases tuition and fees by more than 
  4.18  three percent in either year, the 
  4.19  higher education coordinating board 
  4.20  shall assess that system for the 
  4.21  resulting additional costs to the state 
  4.22  grant program not provided for in this 
  4.23  appropriation. 
  4.24  Subd. 3.  Interstate Tuition
  4.25  Reciprocity
  4.26       4,500,000      4,500,000
  4.27  If the appropriation in this 
  4.28  subdivision for either year is 
  4.29  insufficient, the appropriation for the 
  4.30  other year is available to meet 
  4.31  reciprocity contract obligations. 
  4.32  The higher education coordinating board 
  4.33  is authorized to enter into a 
  4.34  reciprocity agreement with the province 
  4.35  of Ontario. 
  4.36  Subd. 4.  State Work Study
  4.37       8,219,000      8,219,000
  4.38  Subd. 5.  Minitex Library Program
  4.39       2,513,000      2,523,000
  4.40  Subd. 6.  Learning Network of Minnesota
  4.41       3,050,000      3,050,000
  4.42  Subd. 7.  Miscellaneous Grant Programs
  4.43       454,000        454,000
  4.44  This appropriation includes $118,000 in 
  4.45  each year for violence and abuse 
  4.46  prevention grants. 
  4.47  This appropriation includes $196,000 in 
  4.48  each year for violence and abuse 
  4.49  collaboration grants. 
  4.50  This appropriation includes $115,000 
  4.51  each year to support the development of 
  4.52  sustainable campus-community 
  4.53  partnerships whereby significant, 
  4.54  long-term community problems are 
  5.1   addressed through involvement of 
  5.2   students, staff, and faculty in 
  5.3   community service and community 
  5.4   problem-solving activities in 
  5.5   collaboration with community leaders.  
  5.6   In order to create future leaders who 
  5.7   will be lifelong active citizens, each 
  5.8   campus-community partnership must also 
  5.9   design programs in such a way that the 
  5.10  educational experience and citizenship 
  5.11  skills of students are significantly 
  5.12  enhanced.  Campus-community 
  5.13  partnerships developed as a result of 
  5.14  this program will be used as models for 
  5.15  other campuses and communities 
  5.16  throughout the state.  At least 
  5.17  $100,000 each year must be granted 
  5.18  directly to local campus-community 
  5.19  partnerships.  A maximum of $15,000 per 
  5.20  year is to support training, technical 
  5.21  assistance, dissemination, and 
  5.22  administration of this program by the 
  5.23  higher education coordinating board and 
  5.24  the Minnesota Campus Compact, a 
  5.25  coalition of 45 campus presidents 
  5.26  committed to increasing campus 
  5.27  involvement in community service 
  5.28  activities. 
  5.29  This appropriation includes $25,000 per 
  5.30  year for the LINC nursing grant program.
  5.31  Subd. 8.  Income Contingent Loans
  5.32  The higher education coordinating board 
  5.33  shall administer an income contingent 
  5.34  loan repayment program to assist 
  5.35  graduates of Minnesota schools in 
  5.36  medicine, dentistry, pharmacy, 
  5.37  chiropractic medicine, public health, 
  5.38  and veterinary medicine, and Minnesota 
  5.39  residents graduating from optometry and 
  5.40  osteopathy programs.  Applicant data 
  5.41  collected by the higher education 
  5.42  coordinating board for this program may 
  5.43  be disclosed to a consumer credit 
  5.44  reporting agency under the same 
  5.45  conditions as apply to the supplemental 
  5.46  loan program under Minnesota Statutes, 
  5.47  section 136A.162.  No new applicants 
  5.48  may be accepted after June 30, 1995. 
  5.49  Subd. 9.  Agency Administration
  5.50       2,356,000      2,356,000
  5.51  Subd. 10.  Balances Forward 
  5.52  An unencumbered balance in the first 
  5.53  year under a subdivision in this 
  5.54  section does not cancel but is 
  5.55  available for the second year. 
  5.56  Subd. 11.  Transfers 
  5.57  The higher education coordinating board 
  5.58  may transfer unencumbered balances from 
  5.59  the appropriations in this section to 
  5.60  the state grant appropriation and the 
  5.61  interstate tuition reciprocity 
  5.62  appropriation. 
  6.1   Sec. 3.  BOARD OF TRUSTEES OF THE
  6.2   MINNESOTA STATE COLLEGES AND UNIVERSITIES
  6.3   Subdivision 1.  Total
  6.4   Appropriation                       464,760,000    464,471,000
  6.5   The amounts that may be spent from this 
  6.6   appropriation for each purpose are 
  6.7   specified in the following subdivisions.
  6.8   If the state university board or the 
  6.9   board of trustees of the Minnesota 
  6.10  state colleges and universities is 
  6.11  reimbursed under Minnesota Statutes, 
  6.12  section 115B.43, for expenses relating 
  6.13  to the cleanup of the Kummer landfill, 
  6.14  the state university board or the board 
  6.15  of trustees shall return the amount 
  6.16  reimbursed to the state general fund. 
  6.17  Subd. 2.  Instructional Expenditures 
  6.18  The legislature estimates that 
  6.19  instructional expenditures will be 
  6.20  $617,546,000 the first year and 
  6.21  $617,553,000 the second year. 
  6.22  This appropriation includes continued 
  6.23  support of $400,000 per year for the 
  6.24  Mid-Tec and Heartland 
  6.25  Telecommunications Networks. 
  6.26  This appropriation includes $50,000 per 
  6.27  year for American Indian outreach.  The 
  6.28  legislature anticipates this money will 
  6.29  assist the Fond Du Lac campus to 
  6.30  recruit, advise, and retain American 
  6.31  Indian students. 
  6.32  The legislature anticipates that the 
  6.33  tuition and fee increases for resident 
  6.34  undergraduate students will not exceed 
  6.35  three percent per year.  The board of 
  6.36  trustees of the Minnesota state 
  6.37  colleges and universities shall 
  6.38  transfer to the higher education 
  6.39  coordinating board a sum sufficient to 
  6.40  pay any additional costs to the state 
  6.41  grant program that result from annual 
  6.42  tuition and fee increases exceeding the 
  6.43  three percent threshold. 
  6.44  During the biennium neither the board 
  6.45  nor campuses shall plan or develop 
  6.46  doctoral level programs or degrees 
  6.47  until after they have received the 
  6.48  recommendation of the house and senate 
  6.49  committees on education, finance, and 
  6.50  ways and means. 
  6.51  Subd. 3.  Noninstructional Expenditures 
  6.52  The legislature estimates that 
  6.53  noninstructional expenditures will be 
  6.54  $42,062,000 the first year and 
  6.55  $41,768,000 the second year. 
  6.56  $508,000 the first year and $214,000 
  6.57  the second year are for debt service 
  6.58  payments. 
  7.1   $150,000 each year is for southwest 
  7.2   Asia veterans tuition relief.  
  7.3   Subd. 4.  State Council on Vocational 
  7.4   Technical Education 
  7.5   The appropriation in subdivision 1 
  7.6   includes money for the state council on 
  7.7   vocational education. 
  7.8   Subd. 5.  Budget for 1998-1999
  7.9   The chancellor of the higher education 
  7.10  board shall prepare and submit to the 
  7.11  legislature a plan to limit the 
  7.12  increase in general fund appropriations 
  7.13  to the higher education board from the 
  7.14  1996-1997 biennium to the 1998-1999 
  7.15  biennium to no more than 90 percent of 
  7.16  the projected increase.  The plan must 
  7.17  include the chancellor's 
  7.18  recommendations for changes in 
  7.19  educational services to be provided and 
  7.20  any necessary changes in program 
  7.21  content, including any recommendations 
  7.22  the chancellor may have for changes in 
  7.23  tuition payment and fee requirements.  
  7.24  The chancellor shall give particular 
  7.25  attention to services that are not 
  7.26  required as a condition of federal 
  7.27  regulations that apply to education 
  7.28  programs and that are not provided by 
  7.29  neighboring states, including Illinois, 
  7.30  Indiana, and Michigan, as well as those 
  7.31  that border Minnesota.  The chancellor 
  7.32  shall submit preliminary 
  7.33  recommendations to the legislature by 
  7.34  September 1, 1995, and the final plan 
  7.35  by January 15, 1996. 
  7.36  Sec. 4.  BOARD OF REGENTS OF THE 
  7.37  UNIVERSITY OF MINNESOTA 
  7.38  Subdivision 1.  Total
  7.39  Appropriation                        484,580,000    481,691,000
  7.40  The amounts that may be spent from this 
  7.41  appropriation for each purpose are 
  7.42  specified in the following subdivisions.
  7.43  Subd. 2.  Operations and
  7.44  Maintenance                          396,152,000    392,988,000
  7.45  (a) Instructional Expenditures 
  7.46  The legislature estimates that 
  7.47  instructional expenditures will be 
  7.48  $422,040,000 the first year and 
  7.49  $418,789,000 the second year. 
  7.50  The legislature anticipates that the 
  7.51  tuition and fee increases for 
  7.52  university resident undergraduate 
  7.53  students will not exceed three percent 
  7.54  per year.  The board of regents shall 
  7.55  transfer to the higher education 
  7.56  coordinating board a sum sufficient to 
  7.57  pay any additional costs to the state 
  7.58  grant program that result from annual 
  7.59  tuition and fee increases exceeding the 
  7.60  three percent threshold. 
  8.1   This appropriation includes $250,000 
  8.2   the first year and $500,000 the second 
  8.3   year for the Duluth Medical School.  
  8.4   This money is in addition to the 
  8.5   $5,256,000 of state money in the base 
  8.6   appropriation. 
  8.7   (b) Noninstructional Expenditures 
  8.8   The legislature estimates that 
  8.9   noninstructional expenditures will be 
  8.10  $104,994,000 each year.  
  8.11  Subd. 3.  Special
  8.12  Appropriation                         88,428,000     88,703,000
  8.13  The amounts expended for each program 
  8.14  in the four categories of special 
  8.15  appropriations shall be separately 
  8.16  identified in the 1997 biennial budget 
  8.17  document. 
  8.18  (a) Agriculture and Extension Service 
  8.19      47,547,000     47,797,000
  8.20  This appropriation is for the 
  8.21  Agricultural Experiment Station and 
  8.22  Minnesota Extension Service. 
  8.23  Any salary increases granted by the 
  8.24  university to personnel paid from the 
  8.25  Minnesota Extension appropriation must 
  8.26  not result in a reduction of the county 
  8.27  portion of the salary payments. 
  8.28  During the biennium, the university 
  8.29  shall maintain an advisory council 
  8.30  system for each experiment station.  
  8.31  The advisory councils must be broadly 
  8.32  representative of range of size and 
  8.33  income distribution of farms and 
  8.34  agribusinesses and must not 
  8.35  disproportionately represent those from 
  8.36  the upper half of the size and income 
  8.37  distributions. 
  8.38  This appropriation includes $500,000 
  8.39  per year for accelerated wheat and 
  8.40  barley scab research. 
  8.41  (b) Health Sciences 
  8.42      17,758,000     17,758,000
  8.43  This appropriation is for Indigent 
  8.44  Patients (County Papers), Rural 
  8.45  Physicians Associates Program, Medical 
  8.46  Research, Special Hospitals Service and 
  8.47  Educational Offset, the Veterinary 
  8.48  Diagnostic Laboratory, Institute for 
  8.49  Human Genetics, Health Sciences 
  8.50  Research, and the Biomedical 
  8.51  Engineering Center. 
  8.52  (c) Institute of Technology  
  8.53       3,067,000      3,067,000
  8.54  This appropriation is for the 
  8.55  Geological Survey, Underground Space 
  9.1   Center, Talented Youth Mathematics 
  9.2   Program, Microelectronics and 
  9.3   Information Science Center, and the 
  9.4   Center for Advanced Manufacturing, 
  9.5   Design, and Control. 
  9.6   (d) System Specials 
  9.7       20,056,000     20,081,000
  9.8   This appropriation is for Fellowships 
  9.9   for Minority and Disadvantaged 
  9.10  Students, General Research, 
  9.11  Intercollegiate Athletics, Student 
  9.12  Loans Matching Money, Industrial 
  9.13  Relations Education, Natural Resources 
  9.14  Research Institute, Sea Grant College 
  9.15  Program, Biological Process Technology 
  9.16  Institute, Supercomputer Institute, 
  9.17  Center for Urban and Regional Affairs, 
  9.18  Bell Museum of Natural History, and the 
  9.19  Humphrey Exhibit. 
  9.20  This appropriation includes money to 
  9.21  improve the programs and resources 
  9.22  available to women and to ensure that 
  9.23  campuses are in compliance with Title 
  9.24  IX of the Education Amendments of 1972 
  9.25  and Minnesota Statutes, section 
  9.26  126.21.  Of this appropriation, no less 
  9.27  than the following amounts must be 
  9.28  allocated to each campus: 
  9.29  Duluth             $551,600      $551,600
  9.30  Morris             $ 66,100      $ 66,100
  9.31  Crookston          $ 65,000      $ 65,000
  9.32  By January 15, 1996, the board of 
  9.33  regents is requested to provide its 
  9.34  final report and its consultant's 
  9.35  report on the policies and practices it 
  9.36  has planned or implemented to comply 
  9.37  with title VII, title IX, and the Equal 
  9.38  Pay Act, as they apply across 
  9.39  university activities, including men's 
  9.40  and women's athletic coaching. 
  9.41  Subd. 4.  Specials Transfer 
  9.42  The appropriation in subdivision 3, 
  9.43  paragraph (b), for Medical Research, 
  9.44  Special Hospitals Service and 
  9.45  Educational Offset, and the Institute 
  9.46  for Human Genetics; and in paragraph 
  9.47  (c) for the Underground Space Center, 
  9.48  Microelectronics and Information 
  9.49  Science Center, and the Center for 
  9.50  Advanced Manufacturing, Design, and 
  9.51  Control; and in paragraph (d) for the 
  9.52  Fellowships for Minority and 
  9.53  Disadvantaged Students, Sea Grant 
  9.54  College Program, Biological Process 
  9.55  Technology Institute, and the 
  9.56  Supercomputer Institute shall be merged 
  9.57  with the operation and maintenance 
  9.58  funding in subdivision 2, effective 
  9.59  June 30, 1997. 
  9.60  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.1   Subdivision 1.  Total
 10.2   Appropriation                            825,000        825,000
 10.3   The amounts that may be spent from this 
 10.4   appropriation for each purpose are 
 10.5   specified in the following subdivisions.
 10.6   Subd. 2.  Medical School
 10.7          429,000        429,000
 10.8   The state of Minnesota shall pay a 
 10.9   capitation of $10,736 each year for 
 10.10  each student who is a resident of 
 10.11  Minnesota.  The appropriation may be 
 10.12  transferred between years of the 
 10.13  biennium to accommodate enrollment 
 10.14  fluctuations. 
 10.15  The legislature intends that during the 
 10.16  biennium the Mayo foundation use the 
 10.17  capitation money to increase the number 
 10.18  of doctors practicing in rural areas in 
 10.19  need of doctors.  
 10.20  Subd. 3.  Family Practice and
 10.21  Graduate Residency Program
 10.22         396,000        396,000
 10.23  The state of Minnesota provides a 
 10.24  capitation of $13,192 each year for 
 10.25  each student. 
 10.26  Subd. 4.  St. Cloud Hospital-Mayo
 10.27  Family Practice Residency Program
 10.28  This program shall prepare doctors to 
 10.29  practice primary care medicine in the 
 10.30  rural communities of central Minnesota 
 10.31  and other rural areas of the state.  It 
 10.32  is intended that this program will 
 10.33  improve the health of rural 
 10.34  communities, provide affordable access 
 10.35  to appropriate medical care, and manage 
 10.36  the treatment of patients in a more 
 10.37  cost-effective manner. 
 10.38  Sec. 6.  POST-SECONDARY SYSTEMS 
 10.39  Subdivision 1.  Library and Equipment 
 10.40  Expenditures 
 10.41  Each post-secondary system shall spend 
 10.42  no less on libraries and instructional 
 10.43  equipment than in the previous biennium.
 10.44  Subd. 2.  Settlements 
 10.45  No state money may be expended for an 
 10.46  out-of-court settlement for any current 
 10.47  or former employee. 
 10.48   Subd. 3.  Layoffs  
 10.49  In order to maximize the delivery of 
 10.50  services to the public, if layoffs of 
 10.51  state employees as defined in Minnesota 
 10.52  Statutes, chapter 43A, of 
 10.53  post-secondary systems are necessary 
 10.54  during the biennium ending June 30, 
 11.1   1997, the system shall reduce at least 
 11.2   the same percentage of filled 
 11.3   management and supervisory positions as 
 11.4   line and support positions. 
 11.5      Sec. 7.  Minnesota Statutes 1994, section 123.3514, 
 11.6   subdivision 3, is amended to read: 
 11.7      Subd. 3.  [DEFINITIONS.] For purposes of this section, an 
 11.8   "eligible institution" means a Minnesota public post-secondary 
 11.9   institution, a private, nonprofit two-year trade and technical 
 11.10  school granting associate degrees, an opportunities 
 11.11  industrialization center accredited by the north central 
 11.12  association of colleges and schools, or a private, residential, 
 11.13  two-year or four-year, liberal arts, degree-granting college or 
 11.14  university located in Minnesota.  "Course" means a for credit 
 11.15  course or program, and does not include a developmental course 
 11.16  or program.  A "developmental course or program" means a 
 11.17  post-secondary course or program taken to prepare a student for 
 11.18  college-level work for which the post-secondary institution does 
 11.19  not grant credit or which cannot be used to meet degree, 
 11.20  diploma, or certificate requirements. 
 11.21     Sec. 8.  [135A.181] [TRANSITION TO SEMESTER SYSTEM.] 
 11.22     Minnesota public post-secondary institutions shall convert 
 11.23  to the semester system by the 1998-1999 academic year.  The 
 11.24  public post-secondary institutions shall review and revise the 
 11.25  content and structure of their academic programs, degrees, and 
 11.26  courses, and prepare new course materials as necessary.  Each 
 11.27  public post-secondary board shall submit information on the 
 11.28  progress to a semester system in the 1997 biennial budget 
 11.29  document. 
 11.30     Sec. 9.  [135A.19] [FINANCIAL EMERGENCY.] 
 11.31     The board of trustees of the Minnesota state colleges and 
 11.32  universities and the board of regents of the University of 
 11.33  Minnesota may immediately layoff employees, without notice, if 
 11.34  the respective board has declared a financial emergency.  All 
 11.35  other contractual provisions relating to layoffs continue to 
 11.36  apply.  A financial emergency may be declared if, at any time, 
 11.37  the projected revenue for the current or next fiscal year is 
 12.1   less than 95 percent of the anticipated expenditures, and if 
 12.2   tuition would need to be increased more than three times the 
 12.3   annual inflation rate to solve the shortfall. 
 12.4      For employees of the Minnesota state colleges and 
 12.5   universities covered under a collective bargaining agreement, 
 12.6   this section applies to all collective bargaining agreements 
 12.7   effective after July 1, 1995, and shall be effective for each 
 12.8   collective bargaining agreement covering those employees the day 
 12.9   after it has been ratified by the legislative commission on 
 12.10  employee relations.  For represented employees of the University 
 12.11  of Minnesota, this section applies the day following signing of 
 12.12  the next agreement.  For employees not covered by a collective 
 12.13  bargaining agreement, this section is effective July 1, 1995.  
 12.14  The board of trustees of the Minnesota state colleges and 
 12.15  universities and the board of regents of the University of 
 12.16  Minnesota shall balance layoffs of faculty, other employees, and 
 12.17  administrators.  The systems should strive to provide 
 12.18  uninterrupted service and instruction to students. 
 12.19     Sec. 10.  [136.654] [COMMUNITY COLLEGE INTERCOLLEGIATE 
 12.20  SPORT PROGRAM TERMINATION OR SUSPENSION; LIMITATION.] 
 12.21     A community college intercollegiate sport funded fully, or 
 12.22  in part, by nontuition funds derived from students, shall not be 
 12.23  suspended or terminated, unless a majority of the community 
 12.24  college's full-time students voting on the issue vote to suspend 
 12.25  or terminate the program. 
 12.26     Sec. 11.  [136A.136] [NURSING GRANT PROGRAM.] 
 12.27     Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
 12.28  established under the supervision of the higher education 
 12.29  coordinating board and the administration of the metropolitan 
 12.30  healthcare foundation's project LINC to provide grants to 
 12.31  Minnesota health care facility employees seeking to complete a 
 12.32  baccalaureate or master's degree in nursing. 
 12.33     Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
 12.34  FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
 12.35  foundation's project LINC shall administer the grant program and 
 12.36  award grants to eligible health care facility employees.  To be 
 13.1   eligible to receive a grant, a person must be: 
 13.2      (1) an employee of a health care facility located in 
 13.3   Minnesota, whom the facility has recommended to the metropolitan 
 13.4   healthcare foundation's project LINC for consideration; 
 13.5      (2) working part time, up to 32 hours per pay period, for 
 13.6   the health care facility, while maintaining full salary and 
 13.7   benefits; 
 13.8      (3) enrolled full time in a Minnesota school or college of 
 13.9   nursing to complete a baccalaureate or master's degree in 
 13.10  nursing; and 
 13.11     (4) a resident of the state of Minnesota. 
 13.12     The grant must be awarded for one academic year but is 
 13.13  renewable for a maximum of six semesters or nine quarters of 
 13.14  full-time study, or their equivalent.  The grant must be used 
 13.15  for tuition, fees, and books.  Priority in awarding grants shall 
 13.16  be given to persons with the greatest financial need.  The 
 13.17  health care facility may require its employee to commit to a 
 13.18  reasonable postprogram completion of employment at the health 
 13.19  care facility as a condition for the financial support the 
 13.20  facility provides. 
 13.21     Subd. 3.  [RESPONSIBILITY OF HIGHER EDUCATION COORDINATING 
 13.22  BOARD.] The higher education coordinating board shall distribute 
 13.23  money each year to the metropolitan healthcare foundation's 
 13.24  project LINC to be used to award grants under this section, 
 13.25  provided that the higher education coordinating board shall not 
 13.26  distribute the money unless the metropolitan healthcare 
 13.27  foundation's project LINC matches the money with an equal amount 
 13.28  from nonstate sources.  The metropolitan healthcare foundation's 
 13.29  project LINC shall expend nonstate money prior to expending 
 13.30  state money and shall return to the higher education 
 13.31  coordinating board all state money not used each year for 
 13.32  nursing program grants to be redistributed under this section.  
 13.33  The metropolitan healthcare foundation's project LINC shall 
 13.34  report to the higher education coordinating board on its program 
 13.35  activity as requested by the board. 
 13.36     Sec. 12.  [136A.685] [PRIVATE INSTITUTIONS; ADJUDICATION OF 
 14.1   FRAUD OR MISREPRESENTATION.] 
 14.2      The board shall not provide registration or degree or name 
 14.3   approval to a school if there has been a criminal or civil 
 14.4   adjudication of fraud or misrepresentation in Minnesota or in 
 14.5   another state or jurisdiction against the school or its owner, 
 14.6   officers, agents, or sponsoring organization.  Such an 
 14.7   adjudication of fraud or misrepresentation shall be sufficient 
 14.8   cause for the board to determine that a school: 
 14.9      (1) does not qualify for exemption under section 136A.657; 
 14.10  or 
 14.11     (2) is not approved to grant degrees or to use the term 
 14.12  "academy," "institute," or "university" in its name. 
 14.13     Sec. 13.  Minnesota Statutes 1994, section 136E.525, 
 14.14  subdivision 3, is amended to read: 
 14.15     Subd. 3.  [CONSOLIDATION.] ~~No~~ Changes may be made to 
 14.16  student associations located on community college, state 
 14.17  university, technical college, or consolidated colocated 
 14.18  campuses ~~without~~ with the approval of the students of each 
 14.19  affected campus ~~association in consultation with its state~~ 
 14.20  ~~student association~~. 
 14.21     Sec. 14.  Minnesota Statutes 1994, section 179A.07, 
 14.22  subdivision 4, is amended to read: 
 14.23     Subd. 4.  [OTHER COMMUNICATION.] If an exclusive 
 14.24  representative has been certified for an appropriate unit, the 
 14.25  employer shall not meet and negotiate or meet and confer with 
 14.26  any employee or group of employees who are in that unit except 
 14.27  through the exclusive representative.  This subdivision does not 
 14.28  prevent communication to the employer, other than through the 
 14.29  exclusive representative, of advice or recommendations by 
 14.30  professional employees, if this communication is a part of the 
 14.31  employee's work assignment.  Nothing in this chapter is intended 
 14.32  to restrict the authority of state college or university 
 14.33  presidents and administrators to meet with individual employees 
 14.34  or groups of employees to discuss matters related to their work 
 14.35  or to the operation of the institution. 
 14.36     Sec. 15.  Minnesota Statutes 1994, section 626.861, 
 15.1   subdivision 4, is amended to read: 
 15.2      Subd. 4.  [PEACE OFFICERS TRAINING ACCOUNT.] ~~(a)~~ Receipts 
 15.3   from penalty assessments must be credited to a peace ~~officer~~ 
 15.4   officers training account in the special revenue fund.  ~~The~~ 
 15.5   ~~peace officers standards and training board shall make the~~ 
 15.6   ~~following allocations from appropriated funds, net of operating~~ 
 15.7   ~~expenses:~~  
 15.8      ~~(1) for fiscal year 1994:~~ 
 15.9      ~~(i) at least 25 percent for reimbursement to board-approved~~ 
 15.10  ~~skills courses; and~~ 
 15.11     ~~(ii) at least 13.5 percent for the school of law~~ 
 15.12  ~~enforcement;~~ 
 15.13     ~~(2) for fiscal year 1995:~~ 
 15.14     ~~(i) at least 17 percent to the community college system for~~ 
 15.15  ~~one-time start-up costs associated with the transition to an~~ 
 15.16  ~~integrated academic program;~~ 
 15.17     ~~(ii) at least eight percent for reimbursement to~~ 
 15.18  ~~board-approved skills courses in the technical college system;~~ 
 15.19  ~~and~~ 
 15.20     ~~(iii) at least 13.5 percent for the school of law~~ 
 15.21  ~~enforcement.~~ 
 15.22     ~~The balance in each year may be used to pay each local unit~~ 
 15.23  ~~of government an amount in proportion to the number of licensed~~ 
 15.24  ~~peace officers and constables employed, at a rate to be~~ 
 15.25  ~~determined by the board.  The disbursed amount must be used~~ 
 15.26  ~~exclusively for reimbursement of the cost of in-service training~~ 
 15.27  ~~required under this chapter and chapter 214.~~  The board must not 
 15.28  reduce allocations for the law enforcement programs at the 
 15.29  higher education institutions, which were in existence in fiscal 
 15.30  year 1995.  No new programs shall be implemented until the peace 
 15.31  officer standards and training board and the board of trustees 
 15.32  for the Minnesota colleges and universities have reached an 
 15.33  agreement for program content and funding sources. 
 15.34     ~~(b) The board must not reduce allocations to law~~ 
 15.35  ~~enforcement agencies or higher education systems or institutions~~ 
 15.36  ~~to fund legal costs or other board-operating expenses not~~ 
 16.1   ~~presented in the board's biennial legislative budget request.~~ 
 16.2      ~~(c) No school in Minnesota certified by the board shall~~ 
 16.3   ~~provide a nondegree professional peace officer education program~~ 
 16.4   ~~for any state agency or local law enforcement agency after~~ 
 16.5   ~~December 31, 1994, without affirmative legislative approval.~~ 
 16.6      Sec. 16.  Laws 1994, chapter 643, section 69, is amended by 
 16.7   adding a subdivision to read: 
 16.8      Subd. 1a.  [FINANCING SOURCE REVIEW.] The task force shall 
 16.9   identify current library financing sources and make 
 16.10  recommendations on how to use the money more efficiently.  The 
 16.11  task force shall also identify additional financing sources.  By 
 16.12  February 1, 1996, the task force shall provide recommendations 
 16.13  to the legislature on financing structures that are designed to 
 16.14  promote cooperation and collaboration among all libraries. 
 16.15     Sec. 17.  Laws 1994, chapter 643, section 69, is amended by 
 16.16  adding a subdivision to read: 
 16.17     Subd. 1b.  [ELECTRONIC LIBRARY COORDINATION PLANNING.] The 
 16.18  task force shall build upon the leadership initiatives provided 
 16.19  by MINITEX and the post-secondary systems, relating to the 
 16.20  development of electronic library and information services, and 
 16.21  develop a vision of, and plans for, the coordinated use of 
 16.22  electronic storage and transmission in providing library and 
 16.23  information services.  The plans shall: 
 16.24     (1) explore the feasibility of consolidating the PALS and 
 16.25  LUMINA systems; 
 16.26     (2) explore and make recommendations about joint 
 16.27  acquisition of electronic access to information; 
 16.28     (3) plan for the coordinated use of electronic storage and 
 16.29  transmission in providing library and information services to 
 16.30  Minnesota post-secondary systems, public libraries, and 
 16.31  elementary and secondary school libraries, including appropriate 
 16.32  connections to the Internet and eventually to the national 
 16.33  information infrastructure; 
 16.34     (4) provide for, and make recommendations about, 
 16.35  appropriate governance and administrative structures, if needed; 
 16.36     (5) provide for approaches necessary to meet the needs of 
 17.1   distance learners; and 
 17.2      (6) identify, study, and make recommendations on any other 
 17.3   matters that the task force deems necessary for the coordination 
 17.4   and expansion of technologies in the provision of library and 
 17.5   information services. 
 17.6      The task force shall coordinate its work with the 
 17.7   telecommunications council, the government information access 
 17.8   council, the MINITEX advisory committee, and the advisory 
 17.9   council to the office of library development and services in the 
 17.10  department of education. 
 17.11     Sec. 18.  [TRANSFER CURRICULUM.] 
 17.12     The board of regents of the University of Minnesota and the 
 17.13  board of trustees of the Minnesota state colleges and 
 17.14  universities shall: 
 17.15     (1) expand the Minnesota transfer curriculum to include 
 17.16  transfer curriculum designed to satisfy requirements beyond 
 17.17  lower division coursework; and 
 17.18     (2) develop a centralized electronic tracking system of 
 17.19  credits earned by students. 
 17.20     Sec. 19.  [COMPENSATION PLANS AND LABOR AGREEMENTS.] 
 17.21     In negotiating labor agreements and compensation plans for 
 17.22  all public higher education system employees, the legislature 
 17.23  expects the board of trustees of the Minnesota state colleges 
 17.24  and universities, the board of regents of the University of 
 17.25  Minnesota, the commissioner of employee relations, and the 
 17.26  legislative commission on employee relations to achieve these 
 17.27  goals: 
 17.28     (1) define the expected work activities and other 
 17.29  professional responsibilities of all employees in order to 
 17.30  increase course availability to students, to enhance 
 17.31  instructional quality, to ensure student access to faculty, and 
 17.32  to ensure that institution and system missions are served; 
 17.33     (2) reassess existing layoff procedures, tuition waivers, 
 17.34  layoff notices, employee transfers between campuses, employee 
 17.35  evaluations, and sabbaticals to ensure that institutional and 
 17.36  system missions are served; 
 18.1      (3) define reasonable work week and work year for full-time 
 18.2   employees to ensure that institutional and system missions are 
 18.3   served; and 
 18.4      (4) articulate a common understanding regarding when system 
 18.5   administrators may interact with employees outside of meet and 
 18.6   confer provisions in collective bargaining agreements. 
 18.7      Sec. 20.  [MODEL INSTRUCTION PROGRAM.] 
 18.8      Subdivision 1.  [CHARGE.] The higher education board shall 
 18.9   develop a model instruction program in spoken language 
 18.10  interpreting and translating services, as provided in this 
 18.11  section.  In developing the program, the board shall consult 
 18.12  with the University of Minnesota; non-English speaking 
 18.13  communities; the prosecution, defense, and judiciary systems; 
 18.14  the interpreting and translating communities; battered women's 
 18.15  programs; and government and nonprofit agencies providing human, 
 18.16  social, and health services. 
 18.17     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
 18.18  the following definitions apply. 
 18.19     (a) "Interpreter" means any person who is readily able to 
 18.20  comprehend a message uttered in one language and reexpress that 
 18.21  message in a spoken form in a second language without modifying 
 18.22  the meaning in any significant way. 
 18.23     (b) "Translator" means any person who is readily able to 
 18.24  comprehend a message written in one language and reexpress the 
 18.25  message in a written form in a second language without modifying 
 18.26  the meaning in any significant way. 
 18.27     Subd. 3.  [BOARD RESPONSIBILITIES.] (a) The board shall 
 18.28  determine the need for and recommend programs to meet 
 18.29  educational training needs in spoken language interpreting and 
 18.30  translating services at the certificate level, associate degree 
 18.31  level, or both.  Courses shall be designed to articulate with 
 18.32  advanced education and training programs in the field.  The 
 18.33  curriculum shall, at a minimum, include instruction in: 
 18.34     (1) spoken language proficiency to meet potential client 
 18.35  needs; 
 18.36     (2) technical terminology needed for specialization; 
 19.1      (3) ethical standards involved in interpreting and 
 19.2   translating; 
 19.3      (4) background in the culture of the language relevant to 
 19.4   the interpretation and translation; 
 19.5      (5) internship needs and other practical opportunities to 
 19.6   serve clients; and 
 19.7      (6) fundamental skills in effective interpreting and 
 19.8   translating. 
 19.9      (b) The board shall review and recommend programs to train 
 19.10  providers in the appropriate use of interpreters and translators.
 19.11     (c) The board shall: 
 19.12     (1) collect and review recent data to determine the number 
 19.13  of non-English speaking residents and the native language of 
 19.14  these persons; 
 19.15     (2) determine geographic areas in Minnesota with the 
 19.16  greatest need for spoken language and translator services; 
 19.17     (3) determine the most efficient and effective ways of 
 19.18  delivering the program to areas of need; 
 19.19     (4) recommend what provider or providers can best implement 
 19.20  and deliver the program, with emphasis on encouraging 
 19.21  collaborative efforts; 
 19.22     (5) determine the cost of implementing and providing the 
 19.23  program, including the possibility of competitive grants; and 
 19.24     (6) consult with persons developing the statewide judicial 
 19.25  interpreter certification and training program under Laws 1994, 
 19.26  chapter 636, article 1, section 14. 
 19.27     (d) The board shall transmit its recommendations, together 
 19.28  with its plan to develop appropriate programs, to the 
 19.29  appropriate committees of the legislature by January 20, 1996. 
 19.30     Sec. 21.  [STATE EMPLOYEE COMPENSATION STUDY.] 
 19.31     The legislative auditor shall conduct a study of the 
 19.32  compensation, including salary and benefits, provided for work 
 19.33  performed by state employees with compensation provided for 
 19.34  similar work performed by non-state employees.  The legislative 
 19.35  auditor shall provide an analysis of the findings and make 
 19.36  recommendations for improving the way in which the state 
 20.1   compensates its employees based upon the findings.  The study 
 20.2   shall be provided to the senate and the house of representatives 
 20.3   not later than February 15, 1996. 
 20.4      Sec. 22.  [REPEALER.] 
 20.5      Laws 1993, First Special Session chapter 2, article 1, 
 20.6   section 9, subdivision 6, is repealed. 
 20.7      Sec. 23.  [EFFECTIVE DATE; RETROACTIVE APPLICATION.] 
 20.8      Section 10 is effective the day following final enactment 
 20.9   and applies to all community college intercollegiate sport 
 20.10  program suspensions or terminations that occurred on or after 
 20.11  January 1, 1995. 
 20.12                             ARTICLE 2
 20.13                      HIGHER EDUCATION FUNDING
 20.14     Section 1.  [135A.0311] [FUNDING POLICY.] 
 20.15     The legislature's goal is to provide educational 
 20.16  opportunities for all Minnesotans.  The focus must be on the 
 20.17  student.  The legislature intends to create a funding formula 
 20.18  which will provide money based on results.  The funding formula 
 20.19  should encourage graduation from the student's college or 
 20.20  university of choice, encourage completion of courses of study 
 20.21  and timely achievement of a degree, diploma, or certificate, 
 20.22  improve counseling, and provide incentives for colleges and 
 20.23  universities to assist the student to graduate in a shorter 
 20.24  time, with quality instruction.  The formula shall be based on 
 20.25  the number of degrees, diplomas, or certificates issued. 
 20.26     Sec. 2.  [135A.0312] [INSTRUCTIONAL APPROPRIATION FOR 
 20.27  DEGREES, DIPLOMAS, AND CERTIFICATES.] 
 20.28     Subdivision 1.  [APPROPRIATE DEGREES, DIPLOMAS, AND 
 20.29  CERTIFICATES.] Degrees, diplomas, and certificates must be for 
 20.30  academic or vocational programs and shall be counted for the 
 20.31  formula if earned by any of the following students: 
 20.32     (1) students who resided in the state for at least one 
 20.33  calendar year prior to applying for admission or dependent 
 20.34  students whose parent or legal guardian resided in Minnesota at 
 20.35  the time the student applied; 
 20.36     (2) Minnesota residents who demonstrated that they were 
 21.1   temporarily absent from the state without establishing residency 
 21.2   elsewhere at the time they applied for admission; 
 21.3      (3) residents of other states who attended a Minnesota 
 21.4   institution under a tuition reciprocity agreement; and 
 21.5      (4) students who had been in Minnesota as migrant 
 21.6   farmworkers, as defined in Code of Federal Regulations, title 
 21.7   20, section 633.104, over a period of at least two years 
 21.8   immediately before admission or readmission to a Minnesota 
 21.9   public post-secondary institution or students who are dependents 
 21.10  of such migrant farmworkers. 
 21.11     Subd. 2.  [STATE SHARE.] The state intends to provide at 
 21.12  least 67 percent of the estimated cost of a degree, diploma, or 
 21.13  certificate for students graduating from the University of 
 21.14  Minnesota or from the Minnesota state colleges and universities. 
 21.15     Subd. 3.  [DETERMINATION OF THE INSTRUCTIONAL APPROPRIATION 
 21.16  FOR DEGREES, DIPLOMAS, OR CERTIFICATES.] The initial base year 
 21.17  is the 1997 fiscal year.  The instructional appropriation for 
 21.18  degrees, diplomas, or certificates base for each public 
 21.19  post-secondary system is the sum of: 
 21.20     (1) the state share; 
 21.21     (2) the legislatively estimated tuition for the second year 
 21.22  of the most recent biennium; 
 21.23     (3) adjustments for the number of degrees, diplomas, or 
 21.24  certificates issued; and 
 21.25     (4) adjustments for inflation. 
 21.26     Subd. 4.  [ADJUSTMENT FOR THE NUMBER OF DEGREES, DIPLOMAS, 
 21.27  OR CERTIFICATES.] (a) Each public post-secondary system's 
 21.28  instructional appropriation for degrees, diplomas, or 
 21.29  certificates base shall be adjusted for estimated changes in the 
 21.30  number of degrees, diplomas, or certificates. 
 21.31     (b) The adjustment shall be calculated based upon the cost 
 21.32  of each degree, diploma, or certificate for the second year of 
 21.33  the biennium, and multiplying that value times the estimated 
 21.34  change.  The result shall be added or subtracted as necessary to 
 21.35  the base instructional appropriation number. 
 21.36     Subd. 5.  [ADJUSTMENT FOR CHANGE ITEMS.] The instructional 
 22.1   appropriation for degrees, diplomas, or certificates base may be 
 22.2   adjusted for change items by the governor and the legislature. 
 22.3      Subd. 6.  [INFORMATION.] Expenditure, enrollment, and 
 22.4   graduation data for each category shall be submitted in the 
 22.5   biennial budget document.  The data submitted shall include the 
 22.6   percentage of students who enroll in a program and remain 
 22.7   through graduation, the average length of time students spend in 
 22.8   a two- or four-year program until graduation, and other 
 22.9   information which indicates progress towards the legislature's 
 22.10  goals as described in section 135A.0311. 
 22.11     Sec. 3.  [135A.0313] [INNOVATION.] 
 22.12     The board of trustees of the Minnesota state colleges and 
 22.13  universities and the board of regents of the University of 
 22.14  Minnesota shall encourage and reward innovation to improve 
 22.15  course delivery to students at each campus.  If a campus 
 22.16  achieves measurable savings from innovation, the boards may 
 22.17  allocate those savings for use on that campus.  The boards shall 
 22.18  also establish a mechanism to inform other campuses of the 
 22.19  innovation and to promote the use, where feasible, of the 
 22.20  innovation. 
 22.21     Sec. 4.  [135A.0314] [SAVINGS.] 
 22.22     Any savings which accrue as a result of the implementation 
 22.23  of the legislative goals stated in section 135A.0311 shall be 
 22.24  used to improve instructional programs. 
 22.25     Sec. 5.  [135A.0315] [ALLOCATIONS TO CAMPUSES.] 
 22.26     (a) The board of regents and the board of trustees shall 
 22.27  adjust the allocation of the state appropriations to each campus 
 22.28  based upon a formula which includes the number of degrees, 
 22.29  diplomas, and certificates issued from each respective campus. 
 22.30     (b) The board shall also adjust the allocations using 
 22.31  campus measurement indicators such as: 
 22.32     (1) assessment of student skills and knowledge for correct 
 22.33  placement and tracking; 
 22.34     (2) the presence and participation of racial and ethnic 
 22.35  minorities where underrepresented; 
 22.36     (3) the level of sponsored funding; 
 23.1      (4) timely graduation rates, as measured by the percentage 
 23.2   of entering freshmen graduating from a two- or four-year program 
 23.3   within two or four years respectively; and 
 23.4      (5) placement, as determined by employment within six 
 23.5   months of graduation. 
 23.6      These indicators should be used to reward each campus for 
 23.7   its level of achievement in excellence in higher education.  A 
 23.8   portion of the appropriation from each system should be 
 23.9   distributed among the campuses.  Objectivity must be used in 
 23.10  designing and implementing this award.  The measurement 
 23.11  instruments should be created and designed by the faculty, 
 23.12  administration, and student representatives. 
 23.13     Sec. 6.  [135A.082] [MINNESOTA HIGHER EDUCATION GUARANTEE.] 
 23.14     Students who graduate from a public post-secondary 
 23.15  institution and are awarded an undergraduate degree, diploma, or 
 23.16  certificate shall receive the Minnesota higher education 
 23.17  guarantee.  The institution issuing the degree, diploma, or 
 23.18  certificate shall provide a student with up to 16 semester or 
 23.19  quarter credits of undergraduate courses that are directly 
 23.20  related to the program the student graduated from, at no cost to 
 23.21  the student, if the student's employer certifies in writing that 
 23.22  the student is not adequately trained to work in a field related 
 23.23  to the degree, diploma, or certificate received.  The student 
 23.24  must have maintained at least a C average to be eligible for the 
 23.25  courses and must have met all of the program requirements for 
 23.26  graduation.  The guarantee shall be for the first two years 
 23.27  after graduation. 
 23.28     Sec. 7.  [DEVELOPMENTAL EDUCATION; POST-SECONDARY REPORT.] 
 23.29     The board of trustees of the Minnesota state colleges and 
 23.30  universities and the board of regents of the University of 
 23.31  Minnesota shall, pursuant to section 13.32, provide an annual 
 23.32  joint report by January 15 to the commissioner of education 
 23.33  regarding Minnesota high school graduates who, in the preceding 
 23.34  academic year, enrolled in developmental courses at Minnesota 
 23.35  public post-secondary institutions.  Minnesota high school 
 23.36  graduates who enroll in a public post-secondary developmental 
 24.1   course within two years of graduating from high school shall be 
 24.2   included in a separate section of the report.  The report shall 
 24.3   include, but is not limited to, the graduate's high school, the 
 24.4   developmental course or courses the graduate enrolled in, a 
 24.5   description of the contents of the developmental course or 
 24.6   courses and the particular need of the graduate taking the 
 24.7   course, and the cost to the graduate and to the state of the 
 24.8   developmental course or courses.  The report shall be organized 
 24.9   alphabetically by high school, and otherwise arranged to ensure 
 24.10  ease of access to, and use of, the data contained in the 
 24.11  report.  The public post-secondary systems shall use the data 
 24.12  gathered under Laws 1993, chapter 351, section 40, in preparing 
 24.13  the report.  The commissioner of education shall provide a copy 
 24.14  of the report to each high school referenced in the report and 
 24.15  to the education committees of the house and senate. 
 24.16     Sec. 8.  [TRANSITION.] 
 24.17     For the preparation of the fiscal year 1997 budget, the 
 24.18  information contained in the cost studies shall be recategorized 
 24.19  to determine the cost of the various degrees, diplomas, or 
 24.20  certificates.  The total cost shall equal the state 
 24.21  appropriation plus the legislative estimate of tuition revenue. 
 24.22     The estimated changes for fiscal years 1998 and 1999 in the 
 24.23  number of degrees, diplomas, or certificates shall be calculated 
 24.24  by using the values obtained from the recategorization of the 
 24.25  cost studies and multiplying those values times the estimated 
 24.26  change for each year of the biennium. 
 24.27     Sec. 9.  [TECHNICAL TASK FORCE.] 
 24.28     The executive director of the higher education coordinating 
 24.29  board shall appoint a technical task force to assist in 
 24.30  implementing the funding formula in Minnesota Statutes, section 
 24.31  135A.0311.  The task force shall recommend the appropriate 
 24.32  number of categories for grouping the various degrees, diplomas, 
 24.33  or certificates in the funding formula; the basis for 
 24.34  determining the fiscal value of each category; criteria for the 
 24.35  inclusion of any degree, diploma, or certificate in a category; 
 24.36  and definitions for any terms used.  The potential impact for 
 25.1   future years, the task force recommendations, and other data or 
 25.2   information deemed of interest shall be submitted in a report to 
 25.3   the higher education divisions of the legislature prior to the 
 25.4   1996 session. 
 25.5      Sec. 10.  [POLICY TASK FORCE.] 
 25.6      The executive director of the higher education coordinating 
 25.7   board shall convene a policy task force whose functions shall be 
 25.8   to assist in the implementation of the funding policy in 
 25.9   Minnesota Statutes, section 135A.0311, guide the work of the 
 25.10  technical task force, and make policy recommendations to the 
 25.11  legislature and governor to strengthen and improve Minnesota's 
 25.12  higher education programs. 
 25.13     Specifically, the task force shall at a minimum determine: 
 25.14     (1) how the new funding formula will account for transfer 
 25.15  students; 
 25.16     (2) whether graduate and other professional programs should 
 25.17  be included in the formula or whether an alternative funding 
 25.18  mechanism is needed for such programs; 
 25.19     (3) how the funding formula will account for credit bearing 
 25.20  extension courses; 
 25.21     (4) what procedures should be implemented to ensure and 
 25.22  maintain the accuracy and integrity of the data used in the 
 25.23  funding formula; 
 25.24     (5) what types of certificates should be counted in the 
 25.25  funding formula to maintain the validity of a certificate for 
 25.26  funding purposes; 
 25.27     (6) how to ensure that part-time students continue to 
 25.28  receive quality instruction under the new funding formula; and 
 25.29     (7) how to ensure that access to higher education is 
 25.30  maintained and enhanced under the new funding formula. 
 25.31     The executive director of the higher education coordinating 
 25.32  board shall appoint nine members to this task force.  The 
 25.33  director shall seek members who have broad backgrounds, are 
 25.34  willing to make changes, and want to advance higher education. 
 25.35     Sec. 11.  [FULL-YEAR GRANTS.] 
 25.36     The higher education coordinating board shall allow 
 26.1   students to receive state grants for four consecutive quarters 
 26.2   or three consecutive semesters during the course of a single 
 26.3   academic year. 
 26.4      Sec. 12.  [REPEALER.] 
 26.5      Minnesota Statutes 1994, sections 135A.031; 135A.032, 
 26.6   subdivision 2; and 135A.033, are repealed. 
 26.7      Sec. 13.  [EFFECTIVE DATE.] 
 26.8      Sections 1 to 10 are effective the day following final 
 26.9   enactment.  Sections 11 and 12 are effective July 1, 1997.  The 
 26.10  funding formula established in this article shall become 
 26.11  effective for the biennium beginning July 1, 1997. 
 26.12                             ARTICLE 3
 26.13                HIGHER EDUCATION COORDINATING BOARD
 26.14                    REORGANIZATION AND RENAMING
 26.15     Section 1.  Minnesota Statutes 1994, section 126.56, 
 26.16  subdivision 5, is amended to read: 
 26.17     Subd. 5.  [ADVISORY COMMITTEE.] An advisory committee shall 
 26.18  assist the state board of education in approving eligible 
 26.19  programs and shall assist the higher education coordinating 
 26.20  board in planning, implementing, and evaluating the scholarship 
 26.21  program.  The committee shall consist of 11 members, to include 
 26.22  the executive director of the higher education coordinating 
 26.23  board or a representative, the commissioner of education or a 
 26.24  representative, two secondary school administrators and two 
 26.25  secondary teachers appointed by the commissioner of education, 
 26.26  the executive director of the academic excellence foundation, a 
 26.27  private college representative appointed by the president of the 
 26.28  Minnesota private college council, a community college 
 26.29  ~~representative appointed by the community college~~ 
 26.30  ~~chancellor,~~ and a state university representative appointed by 
 26.31  the ~~state university~~ chancellor of the Minnesota state colleges 
 26.32  and universities, and a University of Minnesota representative 
 26.33  appointed by the president of the University of Minnesota.  The 
 26.34  committee expires June 30, ~~1995~~ 1997. 
 26.35     Sec. 2.  Minnesota Statutes 1994, section 135A.08, 
 26.36  subdivision 1, is amended to read: 
 27.1      Subdivision 1.  [COURSE EQUIVALENCY.] The regents of the 
 27.2   University of Minnesota~~, state university board, state board for~~ 
 27.3   ~~community colleges, and state board of technical colleges, in~~ 
 27.4   ~~conjunction with the higher education coordinating board,~~ and 
 27.5   the trustees of the Minnesota state colleges and universities 
 27.6   shall develop and maintain course equivalency guides for use 
 27.7   between institutions that have a high frequency of 
 27.8   transfer.  ~~Subject to the determination of the higher education~~ 
 27.9   ~~coordinating board made in consultation with the state board of~~ 
 27.10  ~~technical colleges,~~ Course equivalency guides shall not be 
 27.11  required for vocational technical programs that have not been 
 27.12  divided into identifiable courses.  The governing boards of 
 27.13  private institutions that grant associate and baccalaureate 
 27.14  degrees and that have a high frequency of transfer students are 
 27.15  requested to participate in developing these guides. 
 27.16     Sec. 3.  Minnesota Statutes 1994, section 135A.08, 
 27.17  subdivision 2, is amended to read: 
 27.18     Subd. 2.  [COMMON NUMBERING.] The regents of the University 
 27.19  of Minnesota~~, state university board, state board for community~~ 
 27.20  ~~colleges, and state board of technical colleges, in conjunction~~ 
 27.21  ~~with the higher education coordinating board,~~ and the trustees 
 27.22  of the Minnesota state colleges and universities shall develop 
 27.23  and maintain a common numbering convention to distinguish 
 27.24  remedial, lower division, upper division, and graduate level 
 27.25  coursework.  The governing boards of private institutions that 
 27.26  grant associate and baccalaureate degrees are requested to 
 27.27  cooperate in the development of this numbering convention. 
 27.28     Sec. 4.  Minnesota Statutes 1994, section 135A.08, 
 27.29  subdivision 3, is amended to read: 
 27.30     Subd. 3.  [GENERAL EDUCATION REQUIREMENTS.] The ~~state board~~ 
 27.31  ~~for community colleges, in conjunction with the~~ regents of the 
 27.32  University of Minnesota, ~~state university board~~ the trustees of 
 27.33  the Minnesota state colleges and universities, and boards of 
 27.34  private institutions that grant baccalaureate degrees~~, and the~~ 
 27.35  ~~higher education coordinating board,~~ shall develop a systemwide 
 27.36  standard of distributed general education requirements for the 
 28.1   associate of arts degree.  The boards shall ensure that the 
 28.2   associate of arts degree fulfills the entire general education 
 28.3   requirement for the baccalaureate degree if the intent of the 
 28.4   degree program is that the general education component be 
 28.5   completed in the first two years of study.  
 28.6      Sec. 5.  Minnesota Statutes 1994, section 135A.10, 
 28.7   subdivision 1, is amended to read: 
 28.8      Subdivision 1.  [POLICY AND PROCEDURES TO AWARD CREDIT.] 
 28.9   The board of regents of the University of Minnesota~~, the state~~ 
 28.10  ~~university board,~~ and the ~~state board for community colleges~~ 
 28.11  board of trustees of the Minnesota state colleges and 
 28.12  universities shall each develop a clear and uniform policy for 
 28.13  its system for awarding post-secondary credit toward a degree 
 28.14  for a student who earns an acceptable score on an advanced 
 28.15  placement program examination.  Each policy must include 
 28.16  procedures to inform students and prospective students about 
 28.17  credit award and procedures to assure implementation on each 
 28.18  campus.  ~~The higher education coordinating board shall assist in~~ 
 28.19  ~~developing the policy.~~ 
 28.20     Sec. 6.  Minnesota Statutes 1994, section 135A.15, 
 28.21  subdivision 1, is amended to read: 
 28.22     Subdivision 1.  [POLICY REQUIRED.] The ~~governing~~ board of 
 28.23  ~~each public technical college, community college, or state~~ 
 28.24  ~~university~~ trustees of the Minnesota state colleges and 
 28.25  universities shall, and the University of Minnesota is requested 
 28.26  to, adopt a clear, understandable written policy on sexual 
 28.27  harassment and sexual violence that informs victims of their 
 28.28  rights under the crime victims bill of rights, including the 
 28.29  right to assistance from the crime victims reparations board and 
 28.30  the office of the crime victim ombudsman.  The policy must apply 
 28.31  to students and employees and must provide information about 
 28.32  their rights and duties.  The policy must apply to criminal 
 28.33  incidents occurring on property owned by the post-secondary 
 28.34  system or institution in which the victim is a student or 
 28.35  employee of that system or institution.  It must include 
 28.36  procedures for reporting incidents of sexual harassment or 
 29.1   sexual violence and for disciplinary actions against violators.  
 29.2   During student registration, each technical college, community 
 29.3   college, or state university shall, and the University of 
 29.4   Minnesota is requested to, provide each student with information 
 29.5   regarding its policy.  A copy of the policy also shall be posted 
 29.6   at appropriate locations on campus at all times.  Each private 
 29.7   post-secondary institution that ~~enrolls students who receive~~ 
 29.8   ~~state financial aid~~ is an eligible institution as defined in 
 29.9   section 136A.101, subdivision 4, must adopt a policy that meets 
 29.10  the requirements of this section.  The higher education 
 29.11  coordinating board shall ~~coordinate the policy development of~~ 
 29.12  ~~the systems and institutions and periodically provide for review~~ 
 29.13  ~~and necessary changes in the policies~~ notify institutions 
 29.14  covered by the requirements of this section and assist them in 
 29.15  developing their policies. 
 29.16     Sec. 7.  Minnesota Statutes 1994, section 136A.01, is 
 29.17  amended to read: 
 29.18     136A.01 [CREATION AND PURPOSE.] 
 29.19     A coordinating board for higher education in the state of 
 29.20  Minnesota, to be known as the Minnesota higher education 
 29.21  coordinating board, is hereby created.  The board shall provide 
 29.22  impartial, statewide leadership and services that enhance 
 29.23  post-secondary learning.  
 29.24     Sec. 8.  Minnesota Statutes 1994, section 136A.02, 
 29.25  subdivision 1, is amended to read: 
 29.26     Subdivision 1.  The higher education coordinating board 
 29.27  shall consist of eight citizen members, one from each 
 29.28  congressional district, to be appointed by the governor with the 
 29.29  advice and consent of the senate, two citizen members and one 
 29.30  student member also to be appointed by the governor with the 
 29.31  advice and consent of the senate to represent the state at large.
 29.32  Not more than seven members shall belong to the same political 
 29.33  party.  The student member must be a full-time student enrolled 
 29.34  in a Minnesota post-secondary institution at the time of 
 29.35  appointment or within one year prior to appointment.  The 
 29.36  student advisory council may recommend candidates to the 
 30.1   governor for the student member position.  All appointees to the 
 30.2   board shall be selected for their knowledge of and interest in 
 30.3   post-secondary education and at least one shall be selected 
 30.4   specifically for knowledge of and interest in vocational 
 30.5   education.  A nonstudent member of the board must not be an 
 30.6   employee of or receive compensation from a public or private 
 30.7   post-secondary institution while serving on the board.  A 
 30.8   student member may receive compensation as a student body 
 30.9   officer or may be a recipient of financial aid, including work 
 30.10  study, but must not otherwise be employed or compensated by a 
 30.11  post-secondary institution while serving on the board.  
 30.12     Sec. 9.  Minnesota Statutes 1994, section 136A.02, 
 30.13  subdivision 6, is amended to read: 
 30.14     Subd. 6.  [HIGHER EDUCATION ADVISORY COUNCIL.] A higher 
 30.15  education advisory council is established.  The council is 
 30.16  composed of the president of the University of Minnesota, the 
 30.17  chancellor of the ~~state universities, the chancellor of the~~ 
 30.18  ~~community colleges, the chancellor of the technical colleges~~ 
 30.19  Minnesota state colleges and universities, the commissioner of 
 30.20  education, the president of the private college council, and a 
 30.21  representative from the Minnesota association of private 
 30.22  post-secondary schools.  The advisory council shall (1) bring to 
 30.23  the attention of the board any matters that the council deems 
 30.24  necessary, (2) make appropriate recommendations, (3) review and 
 30.25  comment upon proposals and other matters before the board, and 
 30.26  (4) provide other assistance to the board.  The board shall 
 30.27  periodically inform the council of matters under consideration 
 30.28  by the board.  The board shall refer all proposals to the 
 30.29  council before submitting recommendations to the governor and 
 30.30  the legislature.  The board shall provide time for a report from 
 30.31  the advisory council at each meeting of the board. 
 30.32     The council shall report to the board ~~at least quarterly~~ 
 30.33  periodically.  The council shall determine its meeting times, 
 30.34  but it shall also meet within 30 days after a request by the 
 30.35  executive director of the board.  The council expires June 
 30.36  30, ~~1995~~ 1997. 
 31.1      Sec. 10.  Minnesota Statutes 1994, section 136A.02, 
 31.2   subdivision 7, is amended to read: 
 31.3      Subd. 7.  [STUDENT ADVISORY COUNCIL.] A student advisory 
 31.4   council to the board is established.  The members of the council 
 31.5   shall include the chair of the University of Minnesota 
 31.6   university student senate, the state chair of the Minnesota 
 31.7   state university student association, the president of the 
 31.8   Minnesota community college student association, the president 
 31.9   of the Minnesota technical college student association, the 
 31.10  president of the Minnesota association of private college 
 31.11  students, and a student who is enrolled in a private vocational 
 31.12  school registered under this chapter, to be appointed by the 
 31.13  Minnesota association of private post-secondary schools.  A 
 31.14  member may be represented by a student designee who attends an 
 31.15  institution from the same system that the absent member 
 31.16  represents. 
 31.17     The advisory council shall: 
 31.18     (1) bring to the attention of the board any matter that the 
 31.19  council believes needs the attention of the board; 
 31.20     (2) make recommendations to the board as the council deems 
 31.21  appropriate; 
 31.22     (3) review and comment upon proposals and other matters 
 31.23  before the board; 
 31.24     (4) appoint student members to board advisory groups as 
 31.25  provided in subdivision 5a; 
 31.26     (5) provide any reasonable assistance to the board; and 
 31.27     (6) select one of its members to serve as chair.  The board 
 31.28  shall inform the council of all matters under consideration by 
 31.29  the board and shall refer all proposals to the council before 
 31.30  the board acts or sends the proposals to the governor or the 
 31.31  legislature.  The board shall provide time for a report from the 
 31.32  advisory council at each meeting of the board. 
 31.33     The student advisory council shall report to the board 
 31.34  quarterly and at other times that the council considers 
 31.35  desirable.  The council shall determine its meeting time, but 
 31.36  the council shall also meet with the executive director of the 
 32.1   board within 30 days after the director's request for a council 
 32.2   meeting.  The student advisory council shall meet quarterly with 
 32.3   the higher education advisory council and the board executive 
 32.4   committee.  The council expires June 30, ~~1995~~ 1997. 
 32.5      Sec. 11.  Minnesota Statutes 1994, section 136A.04, 
 32.6   subdivision 1, is amended to read: 
 32.7      Subdivision 1.  The higher education coordinating board 
 32.8   shall:  
 32.9      (1) ~~continuously study and analyze all phases and aspects~~ 
 32.10  ~~of higher education, both public and private, and develop~~ 
 32.11  ~~necessary plans and programs to meet present and future needs of~~ 
 32.12  ~~the people of the state~~ develop and provide strategic policy 
 32.13  recommendations and analysis on higher education issues for 
 32.14  policymakers, the higher education community, and the public; 
 32.15     (2) provide recommendations and support for innovative 
 32.16  approaches in higher education; 
 32.17     ~~(2)~~ (3) continuously engage in long-range planning for the 
 32.18  needs of higher education and, if necessary, cooperatively 
 32.19  engage in planning with neighboring states and agencies of the 
 32.20  federal government; 
 32.21     ~~(3)~~ (4) act as successor to any committee or commission 
 32.22  previously authorized to engage in exercising any of the powers 
 32.23  and duties prescribed by sections 136A.01 to 136A.07; 
 32.24     ~~(4)~~ (5) review~~, approve or disapprove, and identify~~ and 
 32.25  recommend priorities with respect to all proposals for new~~,~~ or 
 32.26  additional, or changes in existing programs of instruction to be 
 32.27  established in or offered by public post-secondary institutions 
 32.28  and private post-secondary institutions.  ~~The board shall also~~ 
 32.29  ~~periodically review existing programs.  For public~~ 
 32.30  ~~post-secondary institutions, the board shall approve or~~ 
 32.31  ~~disapprove continuation or modification of existing programs.~~  
 32.32  ~~For private post-secondary institutions, the board shall~~ 
 32.33  ~~recommend continuation or modification of existing programs.~~ 
 32.34     ~~Before a public post-secondary program can be offered at a~~ 
 32.35  ~~site other than that for which it was approved originally, the~~ 
 32.36  ~~program must be resubmitted for approval.~~ When reviewing a 
 33.1   program, the board shall consider whether it is unnecessary, a 
 33.2   needless duplication, beyond the capability of the system or 
 33.3   institution considering its resources, or beyond the scope of 
 33.4   the system or institutional mission.  The board shall maintain 
 33.5   an inventory of institutional programs offered by public and 
 33.6   private post-secondary educational institutions, composed of 
 33.7   information provided by institutions; 
 33.8      ~~(5) review, approve or disapprove, and identify priorities~~ 
 33.9   ~~with respect to all proposals for new, additional, or changes in~~ 
 33.10  ~~existing large-scale or permanent sites of instruction to be~~ 
 33.11  ~~established in or offered by public post-secondary~~ 
 33.12  ~~institutions.  The board shall forward its decisions on sites to~~ 
 33.13  ~~the chairs of the house appropriations and senate finance~~ 
 33.14  ~~committees.  Private post-secondary institutions must give~~ 
 33.15  ~~reasonable notice to the board prior to making binding decisions~~ 
 33.16  ~~to establish a site or center, and are requested to participate~~ 
 33.17  ~~in this site approval process.  When reviewing a site, the board~~ 
 33.18  ~~shall consider whether it is unnecessary, a needless~~ 
 33.19  ~~duplication, beyond the capability of the system or institution~~ 
 33.20  ~~considering its resources, or beyond the scope of the system or~~ 
 33.21  ~~institutional mission;~~ 
 33.22     (6) obtain from private post-secondary institutions 
 33.23  receiving state funds a report on their use of those funds; and 
 33.24     (7) ~~coordinate the development and implementation of~~ 
 33.25  ~~transfer agreements by the systems that ensure the~~ 
 33.26  ~~transferability of credits between Minnesota post-secondary~~ 
 33.27  ~~institutions, earned for equal and relevant work at those~~ 
 33.28  ~~institutions, the degree to which credits earned at one~~ 
 33.29  ~~institution are accepted at full value by the other~~ 
 33.30  ~~institutions, and the policies of these institutions concerning~~ 
 33.31  ~~the placement of these transferred credits on transcripts; and~~ 
 33.32     ~~(8)~~ prescribe policies, procedures, and rules necessary to 
 33.33  administer the programs under its supervision.  
 33.34     Sec. 12.  Minnesota Statutes 1994, section 136A.043, is 
 33.35  amended to read: 
 33.36     136A.043 [INFORMATION TECHNOLOGY.] 
 34.1      The higher education coordinating board shall initiate 
 34.2   activities to coordinate state policy development regarding the 
 34.3   use of information technology in post-secondary education 
 34.4   instruction and administration.  ~~These activities shall include~~ 
 34.5   ~~at least the following:  a survey, conducted in collaboration~~ 
 34.6   ~~with the post-secondary education systems, of existing~~ 
 34.7   ~~information technology use and needs of institutions and~~ 
 34.8   ~~regions; initiation of collaborative activities to share~~ 
 34.9   ~~information and resources; and provision of opportunities for~~ 
 34.10  ~~post-secondary education policy makers to review issues and~~ 
 34.11  ~~needs for policy development.~~ 
 34.12     Sec. 13.  Minnesota Statutes 1994, section 136A.05, 
 34.13  subdivision 1, is amended to read: 
 34.14     Subdivision 1.  All public institutions of higher 
 34.15  education~~, all school districts providing post-secondary~~ 
 34.16  ~~vocational education,~~ and all state departments and agencies 
 34.17  shall cooperate with and supply information requested by the 
 34.18  higher education coordinating board in order to enable it to 
 34.19  carry out and perform its duties.  Private post-secondary 
 34.20  institutions are requested to cooperate and provide information. 
 34.21     Sec. 14.  Minnesota Statutes 1994, section 136A.07, is 
 34.22  amended to read: 
 34.23     136A.07 [REPORTS.] 
 34.24     The higher education coordinating board periodically shall 
 34.25  report to the governor and legislature concerning its activities 
 34.26  ~~from time to time and may report in connection therewith to the~~ 
 34.27  ~~governing body of each institution of higher education in the~~ 
 34.28  ~~state, both public and private.  It shall file a formal report~~ 
 34.29  ~~with the governor not later than October 15 of each~~ 
 34.30  ~~even-numbered year so that the information therein contained,~~ 
 34.31  ~~including recommendations, may be embodied in the governor's~~ 
 34.32  ~~budget message to the legislature.  It shall also report to the~~ 
 34.33  ~~legislature not later than November 15 of each even-numbered~~ 
 34.34  ~~year~~ and recommendations for state post-secondary education 
 34.35  policy. 
 34.36     Sec. 15.  Minnesota Statutes 1994, section 136A.121, 
 35.1   subdivision 16, is amended to read: 
 35.2      Subd. 16.  [HOW APPLIED; ORDER.] Grants awarded under this 
 35.3   section ~~and sections 136A.132 to 136A.1354~~ must be applied to 
 35.4   educational costs in the following order:  tuition, fees, books, 
 35.5   supplies, and other expenses.  Unpaid portions of the awards 
 35.6   revert to the grant account. 
 35.7      Sec. 16.  Minnesota Statutes 1994, section 136A.42, is 
 35.8   amended to read: 
 35.9      136A.42 [ANNUAL REPORT.] 
 35.10     The authority shall keep an accurate account of all of its 
 35.11  activities and all of its receipts and expenditures and shall 
 35.12  annually make a report thereof to the higher education 
 35.13  coordinating board.  ~~The higher education coordinating board~~ 
 35.14  ~~shall review and comment upon the report and make such~~ 
 35.15  ~~recommendations as it deems necessary to the governor and the~~ 
 35.16  ~~legislature.~~ 
 35.17     Sec. 17.  Minnesota Statutes 1994, section 136A.87, is 
 35.18  amended to read: 
 35.19     136A.87 [PLANNING INFORMATION.] 
 35.20     The board shall make available to ~~all residents from 8th~~ 
 35.21  ~~grade through adulthood~~ students and parents information about 
 35.22  academic and financial planning and ~~preparing~~ preparation for 
 35.23  post-secondary opportunities.  Information must be provided 
 35.24  to parents of all children no later than their 5th grade year 
 35.25  and all 8th grade students and their parents by January 1 of 
 35.26  each year about the need to plan for their post-secondary 
 35.27  education.  The board may also provide information to high 
 35.28  school students and their parents, to adults, and to 
 35.29  out-of-school youth.  Particular emphasis shall be given to 
 35.30  students and parents of color, low-income families, and families 
 35.31  with no previous post-secondary education experience.  The 
 35.32  information provided may include the following: 
 35.33     (1) the need to start planning early; 
 35.34     (2) the availability of assistance in educational planning 
 35.35  from educational institutions and other organizations; 
 35.36     (3) suggestions for studying effectively during high 
 36.1   school; 
 36.2      (4) high school courses necessary to be adequately prepared 
 36.3   for post-secondary education; 
 36.4      (5) encouragement to involve parents actively in planning 
 36.5   for all phases of education; 
 36.6      (6) information about post-high school education and 
 36.7   training opportunities existing in the state, their respective 
 36.8   missions and expectations for students, their preparation 
 36.9   requirements, admission requirements, and student placement; 
 36.10     (7) ways to evaluate and select post-secondary 
 36.11  institutions; 
 36.12     (8) the process of transferring credits among Minnesota 
 36.13  post-secondary institutions and systems; 
 36.14     (9) the costs of post-secondary education, ways to save, 
 36.15  and the availability of financial assistance in meeting these 
 36.16  costs; 
 36.17     (10) the interrelationship of assistance from student 
 36.18  financial aid, public assistance, and job training programs; and 
 36.19     (11) financial planning for education beyond high school.  
 36.20     Sec. 18.  Minnesota Statutes 1994, section 136E.02, 
 36.21  subdivision 3, is amended to read: 
 36.22     Subd. 3.  [DUTIES.] The advisory council shall: 
 36.23     (1) develop a statement of the selection criteria to be 
 36.24  applied and a description of the responsibilities and duties of 
 36.25  a member of the higher education board and the higher education 
 36.26  coordinating board and shall distribute this to potential 
 36.27  candidates; and 
 36.28     (2) for each position on the ~~board~~ boards, identify and 
 36.29  recruit qualified candidates for the ~~board~~ boards, based on the 
 36.30  background and experience of the candidates, and their potential 
 36.31  for discharging the responsibilities of a member of the ~~board~~ 
 36.32  boards. 
 36.33     Sec. 19.  Minnesota Statutes 1994, section 144.1487, 
 36.34  subdivision 1, is amended to read: 
 36.35     Subdivision 1.  [DEFINITIONS.] (a) For purposes of sections 
 36.36  144.1487 to 144.1492, the following ~~definitions apply~~ definition 
 37.1   applies. 
 37.2      (b) ~~"Board" means the higher education coordinating board.~~ 
 37.3      ~~(c)~~ "Health professional shortage area" means an area 
 37.4   designated as such by the federal Secretary of Health and Human 
 37.5   Services, as provided under Code of Federal Regulations, title 
 37.6   42, part 5, and United States Code, title 42, section 254E. 
 37.7      Sec. 20.  Minnesota Statutes 1994, section 144.1488, 
 37.8   subdivision 1, is amended to read: 
 37.9      Subdivision 1.  [DUTIES OF THE COMMISSIONER OF HEALTH.] The 
 37.10  commissioner shall administer the state loan repayment program.  
 37.11  The commissioner shall: 
 37.12     (1) ensure that federal funds are used in accordance with 
 37.13  program requirements established by the federal National Health 
 37.14  Services Corps; 
 37.15     (2) notify potentially eligible loan repayment sites about 
 37.16  the program; 
 37.17     (3) develop and disseminate application materials to sites; 
 37.18     (4) review and rank applications using the scoring criteria 
 37.19  approved by the federal Department of Health and Human Services 
 37.20  as part of the Minnesota department of health's National Health 
 37.21  Services Corps state loan repayment program application; 
 37.22     (5) select sites that qualify for loan repayment based upon 
 37.23  the availability of federal and state funding; 
 37.24     (6) ~~provide the higher education coordinating board with a~~ 
 37.25  ~~list of qualifying sites; and~~ 
 37.26     ~~(7)~~ carry out other activities necessary to implement and 
 37.27  administer sections 144.1487 to 144.1492. 
 37.28     ~~The commissioner shall enter into an interagency agreement~~ 
 37.29  ~~with the higher education coordinating board to carry out the~~ 
 37.30  ~~duties assigned to the board under sections 144.1487 to 144.1492.~~
 37.31     (7) verify the eligibility of program participants; 
 37.32     (8) sign a contract with each participant that specifies 
 37.33  the obligations of the participant and the state; 
 37.34     (9) arrange for the payment of qualifying educational loans 
 37.35  for program participants; 
 37.36     (10) monitor the obligated service of program participants; 
 38.1      (11) waive or suspend service or payment obligations of 
 38.2   participants in appropriate situations; 
 38.3      (12) place participants who fail to meet their obligations 
 38.4   in default; and 
 38.5      (13) enforce penalties for default. 
 38.6      Sec. 21.  Minnesota Statutes 1994, section 144.1488, 
 38.7   subdivision 4, is amended to read: 
 38.8      Subd. 4.  [ELIGIBLE HEALTH PROFESSIONALS.] (a) To be 
 38.9   eligible to apply to the ~~higher education coordinating board~~ 
 38.10  commissioner for the loan repayment program, health 
 38.11  professionals must be citizens or nationals of the United 
 38.12  States, must not have any unserved obligations for service to a 
 38.13  federal, state, or local government, or other entity, and must 
 38.14  be ready to begin full-time clinical practice upon signing a 
 38.15  contract for obligated service. 
 38.16     (b) In selecting physicians for participation, the ~~board~~ 
 38.17  commissioner shall give priority to physicians who are board 
 38.18  certified or have completed a residency in family practice, 
 38.19  osteopathic general practice, obstetrics and gynecology, 
 38.20  internal medicine, or pediatrics.  A physician selected for 
 38.21  participation is not eligible for loan repayment until the 
 38.22  physician has an employment agreement or contract with an 
 38.23  eligible loan repayment site and has signed a contract for 
 38.24  obligated service with the ~~higher education coordinating~~ 
 38.25  ~~board~~ commissioner. 
 38.26     Sec. 22.  Minnesota Statutes 1994, section 144.1489, 
 38.27  subdivision 1, is amended to read:  
 38.28     Subdivision 1.  [CONTRACT REQUIRED.] Before starting the 
 38.29  period of obligated service, a participant must sign a contract 
 38.30  with the ~~higher education coordinating board~~ commissioner that 
 38.31  specifies the obligations of the participant and the board. 
 38.32     Sec. 23.  Minnesota Statutes 1994, section 144.1489, 
 38.33  subdivision 3, is amended to read: 
 38.34     Subd. 3.  [LENGTH OF SERVICE.] Participants must agree to 
 38.35  provide obligated service for a minimum of two years.  A 
 38.36  participant may extend a contract to provide obligated service 
 39.1   for a third year, subject to ~~board~~ approval by the commissioner 
 39.2   and the availability of federal and state funding. 
 39.3      Sec. 24.  Minnesota Statutes 1994, section 144.1489, 
 39.4   subdivision 4, is amended to read: 
 39.5      Subd. 4.  [AFFIDAVIT OF SERVICE REQUIRED.] Within 30 days 
 39.6   of the start of obligated service, and by February 1 of each 
 39.7   succeeding calendar year, a participant shall submit an 
 39.8   affidavit to the ~~board~~ commissioner stating that the participant 
 39.9   is providing the obligated service and which is signed by a 
 39.10  representative of the organizational entity in which the service 
 39.11  is provided.  Participants must provide written notice to 
 39.12  the ~~board~~ commissioner within 30 days of:  a change in name or 
 39.13  address, a decision not to fulfill a service obligation, or 
 39.14  cessation of clinical practice. 
 39.15     Sec. 25.  Minnesota Statutes 1994, section 144.1490, is 
 39.16  amended to read: 
 39.17     144.1490 [RESPONSIBILITIES OF THE LOAN REPAYMENT PROGRAM.] 
 39.18     Subdivision 1.  [LOAN REPAYMENT.] Subject to the 
 39.19  availability of federal and state funds for the loan repayment 
 39.20  program, the ~~higher education coordinating board~~ commissioner 
 39.21  shall pay all or part of the qualifying education loans up to 
 39.22  $20,000 annually for each primary care physician participant 
 39.23  that fulfills the required service obligation.  For purposes of 
 39.24  this provision, "qualifying educational loans" are government 
 39.25  and commercial loans for actual costs paid for tuition, 
 39.26  reasonable education expenses, and reasonable living expenses 
 39.27  related to the graduate or undergraduate education of a health 
 39.28  care professional. 
 39.29     Subd. 2.  [PROCEDURE FOR LOAN REPAYMENT.] Program 
 39.30  participants, at the time of signing a contract, shall designate 
 39.31  the qualifying loan or loans for which the ~~higher education~~ 
 39.32  ~~coordinating board~~ commissioner is to make payments.  The 
 39.33  participant shall submit to the ~~board~~ commissioner all payment 
 39.34  books for the designated loan or loans or all monthly billings 
 39.35  for the designated loan or loans within five days of receipt.  
 39.36  The ~~board~~ commissioner shall make payments in accordance with 
 40.1   the terms and conditions of the designated loans, in an amount 
 40.2   not to exceed $20,000 when annualized.  If the amount paid by 
 40.3   the ~~board~~ commissioner is less than $20,000 during a 12-month 
 40.4   period, the ~~board~~ commissioner shall pay during the 12th month 
 40.5   an additional amount towards a loan or loans designated by the 
 40.6   participant, to bring the total paid to $20,000.  The total 
 40.7   amount paid by the ~~board~~ commissioner must not exceed the amount 
 40.8   of principal and accrued interest of the designated loans. 
 40.9      Sec. 26.  Minnesota Statutes 1994, section 144.1491, 
 40.10  subdivision 2, is amended to read: 
 40.11     Subd. 2.  [SUSPENSION OR WAIVER OF OBLIGATION.] Payment or 
 40.12  service obligations cancel in the event of a participant's 
 40.13  death.  The ~~board~~ commissioner may waive or suspend payment or 
 40.14  service obligations in case of total and permanent disability or 
 40.15  long-term temporary disability lasting for more than two years.  
 40.16  The ~~board~~ commissioner shall evaluate all other requests for 
 40.17  suspension or waivers on a case-by-case basis. 
 40.18     Sec. 27.  Minnesota Statutes 1994, section 298.2214, 
 40.19  subdivision 5, is amended to read: 
 40.20     Subd. 5.  [~~HECB AND~~ SYSTEM APPROVAL.] A program may not be 
 40.21  offered under a contract executed according to this section 
 40.22  unless it is approved by the ~~higher education coordinating board~~ 
 40.23  ~~and the~~ board of ~~the system offering the program~~ trustees of the 
 40.24  Minnesota state colleges and universities or the board of 
 40.25  regents of the University of Minnesota. 
 40.26     Sec. 28.  Laws 1993, chapter 326, article 12, section 15, 
 40.27  subdivision 1, is amended to read: 
 40.28     Subdivision 1.  [CREATION AND DESIGNATION.] The higher 
 40.29  education center on violence and abuse is created.  The higher 
 40.30  education center on violence and abuse shall be located at and 
 40.31  managed by a public or private post-secondary institution in 
 40.32  Minnesota.  ~~The higher education coordinating board shall~~ 
 40.33  ~~designate the location of the center following review of~~ 
 40.34  ~~proposals from potential higher education sponsors.~~ 
 40.35     Sec. 29.  Laws 1993, chapter 326, article 12, section 15, 
 40.36  subdivision 4, is amended to read: 
 41.1      Subd. 4.  [PROFESSIONAL EDUCATION AND LICENSURE.] ~~By March~~ 
 41.2   ~~15, 1994,~~ The center shall convene task forces for professions 
 41.3   that work with victims and perpetrators of violence.  Task 
 41.4   forces must be formed for the following professions:  teachers, 
 41.5   school administrators, guidance counselors, law enforcement 
 41.6   officers, lawyers, physicians, nurses, psychologists, and social 
 41.7   workers.  Each task force must include representatives of the 
 41.8   licensing agency, higher education systems offering programs in 
 41.9   the profession, appropriate professional associations, students 
 41.10  or recent graduates, representatives of communities served by 
 41.11  the profession, and employers or experienced professionals.  The 
 41.12  center must establish guidelines for the work of the task 
 41.13  forces.  Each task force must review current programs, licensing 
 41.14  regulations and examinations, and accreditation standards to 
 41.15  identify specific needs and plans for ensuring that 
 41.16  professionals are adequately prepared and updated on violence 
 41.17  and abuse issues. 
 41.18     Sec. 30.  Laws 1993, chapter 326, article 12, section 15, 
 41.19  subdivision 5, is amended to read:  
 41.20     Subd. 5.  [PROGRESS REPORT.] The center shall provide a 
 41.21  progress report to the legislature by March 15, ~~1994~~ 1996. 
 41.22     Sec. 31.  [TRANSFER OF PROGRAMS.] 
 41.23     The responsibilities of the higher education coordinating 
 41.24  board confirmed and specified under Minnesota Statutes, sections 
 41.25  136A.1355 to 136A.1358, are transferred under Minnesota 
 41.26  Statutes, section 15.039, to the Minnesota department of health. 
 41.27     Sec. 32.  [INSTRUCTION TO REVISOR.] 
 41.28     In the next and subsequent editions of Minnesota Statutes, 
 41.29  the revisor shall change the term "board" to "commissioner" in 
 41.30  Minnesota Statutes, sections 136A.1355 to 136A.1358.  In the 
 41.31  next and subsequent editions of Minnesota Statutes, the revisor 
 41.32  shall change the term "higher education coordinating board," and 
 41.33  similar terms, to "higher education policy board," or similar 
 41.34  terms. 
 41.35     Sec. 33.  [REPEALER.] 
 41.36     Minnesota Statutes 1994, sections 135A.052, subdivision 3; 
 42.1   136A.04, subdivision 2; 136A.041; 136A.85; 136A.86; 136A.88; 
 42.2   136D.77; 136D.81, subdivision 2; 144.1488, subdivision 2; and 
 42.3   148.236; Laws 1993, chapter 326, article 12, section 15, 
 42.4   subdivision 2; and Laws 1993, First Special Session chapter 2, 
 42.5   article 1, section 2, subdivision 8, are repealed. 
 42.6                              ARTICLE 4
 42.7                        FINANCIAL AID CHANGES
 42.8      Section 1.  Minnesota Statutes 1994, section 136A.101, 
 42.9   subdivision 5, is amended to read: 
 42.10     Subd. 5.  "Financial need" means the demonstrated need of 
 42.11  the applicant for financial assistance to meet the ~~actual costs~~ 
 42.12  recognized price of attending the eligible institution of choice 
 42.13  as determined from financial information on the applicant and, 
 42.14  if required, on the applicant's parents, by ~~a college~~ 
 42.15  ~~scholarship service or equivalent service under criteria~~ 
 42.16  ~~established by the board~~ the federal need analysis. 
 42.17     Sec. 2.  Minnesota Statutes 1994, section 136A.101, 
 42.18  subdivision 8, is amended to read: 
 42.19     Subd. 8.  "Resident student" means a student who meets one 
 42.20  of the following conditions:  
 42.21     (1) an independent student who has resided in Minnesota for 
 42.22  purposes other than post-secondary education for at least 12 
 42.23  months without being enrolled at a post-secondary educational 
 42.24  institution for more than five credits in any term; 
 42.25     (2) a dependent student whose parent or legal guardian 
 42.26  resides in Minnesota at the time the student applies; 
 42.27     (3) a student who graduated from a Minnesota high school, 
 42.28  if the student was a resident of Minnesota during the student's 
 42.29  period of attendance at the Minnesota high school; or 
 42.30     (4) a student who, after residing in the state for a 
 42.31  minimum of one year, earned a high school equivalency 
 42.32  certificate in Minnesota. 
 42.33     Sec. 3.  Minnesota Statutes 1994, section 136A.121, 
 42.34  subdivision 5, is amended to read: 
 42.35     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 42.36  based on a sharing of responsibility for covering the recognized 
 43.1   price of attendance by the applicant, the applicant's family, 
 43.2   and taxpayers.  The amount of a financial stipend must not 
 43.3   exceed a grant applicant's ~~cost~~ recognized price of attendance, 
 43.4   as defined in subdivision 6, after deducting the following:  
 43.5      (1) ~~a contribution by the grant applicant of at least 50~~ 
 43.6   ~~percent of the cost of attending the institution of the~~ 
 43.7   ~~applicant's choosing~~ the assigned student responsibility.  The 
 43.8   assigned student responsibility shall be a fixed percentage of 
 43.9   the price of attendance as set by the legislature; 
 43.10     (2) ~~for an applicant who is not an independent student, a~~ 
 43.11  ~~contribution by the grant applicant's parents,~~ the assigned 
 43.12  family responsibility.  As determined by ~~a standardized~~ the 
 43.13  federal need analysis~~; and~~, the assigned family responsibility 
 43.14  shall be: 
 43.15     (i) for a dependent student, a percentage of the parental 
 43.16  contribution calculated according to the federal need analysis, 
 43.17  as set by the legislature.  If the calculated student 
 43.18  contribution from assets is greater than the assigned student 
 43.19  responsibility, a percentage of the excess amount shall be 
 43.20  considered as part of the assigned family responsibility; 
 43.21     (ii) for an independent student, a percentage of the 
 43.22  student contribution calculated according to the federal need 
 43.23  analysis, as set by the legislature; and 
 43.24     (3) the amount of a federal Pell grant award for which the 
 43.25  grant applicant is eligible.  
 43.26     If the combination of the assigned student responsibility 
 43.27  and assigned family responsibility does not cover the recognized 
 43.28  price of attendance, the remainder shall be assigned to 
 43.29  taxpayers.  The assigned taxpayer responsibility shall be 
 43.30  covered by the federal Pell grant for which the student would be 
 43.31  eligible and, if necessary, a Minnesota grant. 
 43.32     The minimum financial stipend is $100.  
 43.33     Sec. 4.  Minnesota Statutes 1994, section 136A.121, 
 43.34  subdivision 6, is amended to read: 
 43.35     Subd. 6.  [~~COST~~ RECOGNIZED PRICE OF ATTENDANCE.] (a) The 
 43.36  ~~cost~~ recognized price of attendance ~~consists of allowances~~ 
 44.1   ~~specified by the board for room and board and miscellaneous~~ 
 44.2   ~~expenses, and~~ for students attending public institutions is the 
 44.3   sum of: 
 44.4      (1) ~~for public institutions, tuition and fees charged by~~ 
 44.5   ~~the institution; or~~ 
 44.6      ~~(2) for private institutions, an allowance for tuition and~~ 
 44.7   ~~fees equal to the lesser of the actual tuition and fees charged~~ 
 44.8   ~~by the institution, or the instructional costs per full-year~~ 
 44.9   ~~equivalent student in comparable public institutions.~~  
 44.10     ~~(b) For the purpose of paragraph (a), clause (2),~~ 
 44.11  ~~"comparable public institutions" to both two- and four-year,~~ 
 44.12  ~~private, residential, liberal arts, degree-granting colleges and~~ 
 44.13  ~~universities must be the same.~~ the average full-time resident 
 44.14  tuition and fees charged by the institution to Minnesota 
 44.15  undergraduates; and 
 44.16     (2) a standard living miscellaneous and expense allowance 
 44.17  specified by the legislature. 
 44.18     (b) The recognized price of attendance for students 
 44.19  attending private institutions is the lesser of: 
 44.20     (1) average full-time resident tuition and fees charged by 
 44.21  the institution to Minnesota undergraduates and a standard 
 44.22  living and miscellaneous expense allowance specified by the 
 44.23  legislature; or 
 44.24     (2) an amount consistent with the maximum awards described 
 44.25  in subdivision 6a. 
 44.26     (c) For a student attending less than full time, the board 
 44.27  shall prorate the ~~cost~~ recognized price of attendance to the 
 44.28  actual number of credits for which the student is enrolled. 
 44.29     Sec. 5.  Minnesota Statutes 1994, section 136A.121, is 
 44.30  amended by adding a subdivision to read: 
 44.31     Subd. 6a.  [MAXIMUM AWARD.] Maximum awards for students 
 44.32  attending private institutions shall be set for each year by the 
 44.33  legislature. 
 44.34     Sec. 6.  Minnesota Statutes 1994, section 136A.121, 
 44.35  subdivision 9, is amended to read: 
 44.36     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 45.1   board's requirements is eligible to apply for and receive a 
 45.2   grant in any year of undergraduate study unless the student has 
 45.3   obtained a baccalaureate degree or previously has been enrolled 
 45.4   full time or the equivalent for eight semesters or 12 quarters.  
 45.5   No more than the equivalent of three full-time quarters or two 
 45.6   full-time semesters each fiscal year can count against the 
 45.7   student's eligibility unless the state grant becomes available 
 45.8   for more than three full-time quarters or two full-time 
 45.9   semesters each fiscal year.  
 45.10     Sec. 7.  Minnesota Statutes 1994, section 136A.125, 
 45.11  subdivision 4, is amended to read: 
 45.12     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 45.13  child care grant must be based on: 
 45.14     (1) the income of the applicant and the applicant's spouse, 
 45.15  if any; 
 45.16     (2) the number in the applicant's family, as defined by the 
 45.17  board; and 
 45.18     (3) the number of eligible children in the applicant's 
 45.19  family.  
 45.20     The maximum award to the applicant shall be ~~$1,500~~ $1,700 
 45.21  for each eligible child per academic year.  The board shall 
 45.22  prepare a chart to show the amount of a grant that will be 
 45.23  awarded per child based on the factors in this subdivision.  The 
 45.24  chart shall include a range of income and family size. 
 45.25     Sec. 8.  Minnesota Statutes 1994, section 136A.125, 
 45.26  subdivision 6, is amended to read: 
 45.27     Subd. 6.  [YEARLY ALLOCATIONS TO INSTITUTIONS.] The board 
 45.28  shall base yearly allocations on the need for funds using 
 45.29  relevant factors as determined by the board in consultation with 
 45.30  the institutions.  Up to five percent of the ~~allocation~~ funds 
 45.31  spent on students' child care awards, as determined by the 
 45.32  board, may be used for an institution's administrative expenses 
 45.33  related to the child care grant program.  Any money designated, 
 45.34  but not used, for this purpose must be reallocated to child care 
 45.35  grants.  An institution may carry forward or backward ten 
 45.36  percent of its annual allocation to be used for awards in the 
 46.1   previous or subsequent academic year. 
 46.2      Sec. 9.  Minnesota Statutes 1994, section 136A.1359, 
 46.3   subdivision 1, is amended to read: 
 46.4      Subdivision 1.  [ESTABLISHMENT.] A nursing grant program is 
 46.5   established under the authority of the higher education 
 46.6   coordinating board to provide grants to students who are persons 
 46.7   of color who are entering or enrolled in an educational program 
 46.8   that leads to licensure as a registered nurse, or advanced 
 46.9   nursing education. 
 46.10     Sec. 10.  Minnesota Statutes 1994, section 136A.1359, 
 46.11  subdivision 2, is amended to read: 
 46.12     Subd. 2.  [ELIGIBILITY.] To be eligible to receive a grant, 
 46.13  a student shall be:  
 46.14     (1) a citizen of the United States or permanent resident of 
 46.15  the United States; 
 46.16     (2) a resident of the state of Minnesota; 
 46.17     (3) an Asian Pacific-American, African-American, American 
 46.18  Indian, or Hispanic-American (Latino, Chicano, or Puerto Rican); 
 46.19     (4) entering or enrolled in a nursing program in Minnesota 
 46.20  that leads to licensure as a registered nurse, a baccalaureate 
 46.21  degree in nursing, a master's degree in nursing, or program of 
 46.22  advanced nursing education; and 
 46.23     (5) eligible under any additional criteria established by 
 46.24  the school, college, or program of nursing in which the student 
 46.25  is enrolled.  ~~Students applying for a grant must be willing to~~ 
 46.26  ~~practice in Minnesota for at least three years following~~ 
 46.27  ~~licensure.~~ 
 46.28     The grant must be awarded for one academic year but is 
 46.29  renewable for a maximum of six semesters or nine quarters of 
 46.30  full-time study, or their equivalent.  
 46.31     Sec. 11.  Minnesota Statutes 1994, section 136A.1359, 
 46.32  subdivision 3, is amended to read: 
 46.33     Subd. 3.  [RESPONSIBILITY OF NURSING PROGRAMS.] Each 
 46.34  school, college, or program of nursing that wishes to 
 46.35  participate in the student nursing grant program shall apply to 
 46.36  the higher education coordinating board for grant money, 
 47.1   according to policies established by the board.  A school, 
 47.2   college, or program of nursing shall establish criteria to use 
 47.3   in awarding the grants.  The criteria must include consideration 
 47.4   of the likelihood of a student's success in completing the 
 47.5   nursing educational program and must give priority to students 
 47.6   with the greatest financial need.  ~~Grants must be $2,500 per~~ 
 47.7   ~~year.~~  Each grant must be for a minimum of $2,000 but not exceed 
 47.8   $4,000.  Each school, college, or program of nursing shall agree 
 47.9   that the money awarded through this grant program must not be 
 47.10  used to replace any other grant or scholarship money for which 
 47.11  the student would be otherwise eligible. 
 47.12     Sec. 12.  [STUDENT INCENTIVES AND RESPONSIBILITIES.] 
 47.13     Subdivision 1.  [AWARD INCREASES.] The higher education 
 47.14  coordinating board shall allow state grant awards to be 
 47.15  increased, if a student enrolls for more than 15 credits, or the 
 47.16  equivalent, per quarter or semester. 
 47.17     Subd. 2.  [EARLY INTERVENTION.] Students are encouraged to 
 47.18  immediately seek assistance from faculty, counselors, or tutors 
 47.19  if they are experiencing problems with a course.  Faculty are 
 47.20  directed to intervene in a timely fashion if a student is 
 47.21  carrying a lower than passing grade in a course and to assist 
 47.22  the student in accessing available tutorial programs or other 
 47.23  forms of assistance. 
 47.24     Sec. 13.  [REPEALER.] 
 47.25     Minnesota Statutes 1994, section 136A.125, subdivision 5, 
 47.26  is repealed. 
 47.27                             ARTICLE 5
 47.28            TECHNICAL COLLEGES LAND ACQUISITION AND SALE
 47.29     Section 1.  [136F.36] [TECHNICAL COLLEGE CARPENTRY PROGRAM 
 47.30  CONSTRUCTION AUTHORITY.] 
 47.31     Subdivision 1.  [AUTHORITY TO ACQUIRE AND DEVELOP REAL 
 47.32  PROPERTY FOR INSTRUCTIONAL PURPOSES.] For the purpose of 
 47.33  instructional construction by technical colleges, the board may 
 47.34  purchase or otherwise acquire real property that it does not 
 47.35  intend to use as a permanent educational site.  No other 
 47.36  authorizing legislation or legislative approval is required for 
 48.1   an acquisition or improvement under this section. 
 48.2      Subd. 2.  [MONEY FOR ACQUISITION.] The amount needed for a 
 48.3   purchase or other acquisition under this section may be spent 
 48.4   from sums appropriated for purposes of the technical colleges 
 48.5   including, but not limited to, general fund appropriations. 
 48.6      Subd. 3.  [METHODS OF ACQUISITION.] The board may acquire 
 48.7   property by gift, purchase, or exchange.  Purchase may be by 
 48.8   contract for deed, provided that in the event of nonpayment the 
 48.9   seller is confined to the remedy of recovery of the property.  
 48.10  All taxes and special assessments constituting a lien on any 
 48.11  real property received and accepted under this section shall be 
 48.12  paid in full by the landowner before title is transferred to the 
 48.13  board. 
 48.14     Subd. 4.  [AUTHORITY TO CONTRACT.] (a) The board may obtain 
 48.15  the use of real property for technical college instructional 
 48.16  construction programs by contractual arrangement with any 
 48.17  responsible person, firm, corporation, association, or 
 48.18  governmental agency.  The party with whom the board contracts 
 48.19  must refrain from sale, lease, or transfer of the real estate 
 48.20  during the period specified by the board as necessary to serve 
 48.21  the technical college's instructional purposes.  The party with 
 48.22  whom the board contracts must also agree to compensate the board 
 48.23  for the fair market value of its contribution to the 
 48.24  construction project. 
 48.25     (b) The board may contract with any responsible person, 
 48.26  firm, corporation, association, or governmental agency, 
 48.27  including but not limited to general contractors and 
 48.28  subcontractors, to obtain labor or materials needed for 
 48.29  instructional construction.  The party with whom the board 
 48.30  contracts shall comply with the licensing provisions of chapter 
 48.31  326, if applicable. 
 48.32     (c) The board will normally competitively bid contracts 
 48.33  under this section, but may negotiate contracts without 
 48.34  competitive bidding where it deems appropriate.  The provisions 
 48.35  of sections 16B.07 to 16B.09 do not apply to this subdivision. 
 48.36     Subd. 5.  [SUPERVISION AND CONTROL.] Supervision and 
 49.1   control of instructional construction shall lie exclusively with 
 49.2   the board.  The provisions of sections 16B.30 to 16B.335 do not 
 49.3   apply to this subdivision. 
 49.4      Subd. 6.  [CONSTRUCTION.] Instructional construction under 
 49.5   this section shall comply with the state building code.  The 
 49.6   board may, in its discretion, offer the warranties required by 
 49.7   chapter 327A. 
 49.8      Subd. 7.  [INSURANCE.] The board is authorized to purchase 
 49.9   insurance, including but not limited to builder's risk insurance 
 49.10  and title insurance, in connection with instructional 
 49.11  construction undertaken pursuant to this section. 
 49.12     Subd. 8.  [SALE OF REAL ESTATE.] (a) Real estate acquired 
 49.13  under this section may be sold for fair market value upon the 
 49.14  terms and conditions set by the board.  The requirements of 
 49.15  chapters 92 and 94 do not apply to sales under this section.  
 49.16  Sale may be by sealed bid, public auction, or through a real 
 49.17  estate agent. 
 49.18     (b) Sale by sealed bid may not be made unless at least two 
 49.19  weeks' published notice has been provided in at least one 
 49.20  newspaper of general circulation in the area where the property 
 49.21  is located.  The notice shall state the time and place for 
 49.22  receiving bids and contain a brief description of the real 
 49.23  estate for sale.  The real estate shall be sold to the highest 
 49.24  responsible bidder.  The board may, in its discretion, refuse to 
 49.25  sell real estate where no acceptable bid is presented. 
 49.26     (c) Sale at public auction shall be to the highest 
 49.27  responsible bidder.  The auction may not be held unless at least 
 49.28  two weeks' notice has been provided in at least one newspaper of 
 49.29  general circulation in the area where the property is located.  
 49.30  Real estate may be withdrawn from sale prior to the completion 
 49.31  of the sale unless the auction has been announced to be without 
 49.32  reserve.  The auction must be conducted by a duly licensed 
 49.33  auctioneer.  The auctioneer's fees and other administrative 
 49.34  costs of the auction may be included in the sale price, may be 
 49.35  paid from the proceeds of the sale, or may be paid from any 
 49.36  other available money that is not otherwise restricted or 
 50.1   encumbered. 
 50.2      (d) Sale by a real estate agent shall be conducted only by 
 50.3   a duly licensed agent.  The real estate agent's fees and other 
 50.4   administrative costs of the sale may be included in the sale 
 50.5   price, may be paid from the proceeds of the sale, or may be paid 
 50.6   from any other available money that is not otherwise restricted 
 50.7   or encumbered. 
 50.8      (e) Proceeds from the sale of real property under this 
 50.9   section are appropriated to the board. 
 50.10     Subd. 9.  [OPTION TO LEASE.] Where real estate acquired 
 50.11  under this section cannot be sold for fair market value, the 
 50.12  board may, in its discretion, lease the real estate under the 
 50.13  terms and conditions it prescribes.  The provisions of section 
 50.14  16B.24 do not apply to this subdivision.  Proceeds from the 
 50.15  lease of real property under this section are appropriated to 
 50.16  the board.  
 50.17     Sec. 2.  Laws 1991, chapter 356, article 9, section 9, as 
 50.18  amended by Laws 1994, chapter 532, article 5, section 1, 
 50.19  subdivision 1, is amended to read: 
 50.20     Subdivision 1.  [TRANSFER OF POWERS; GENERALLY.] The state 
 50.21  board of technical colleges, the state board for community 
 50.22  colleges, and the state university board and their respective 
 50.23  chancellors retain responsibility for operating and managing 
 50.24  their systems until July 1, 1995.  On July 1, 1995, the 
 50.25  authority, duties, responsibilities, related property of the 
 50.26  state board of technical colleges, school boards, intermediate 
 50.27  school boards, and joint vocational technical boards with 
 50.28  respect to technical colleges, the state board for community 
 50.29  colleges, and the state university board are transferred to the 
 50.30  higher education board under Minnesota Statutes, section 15.039. 
 50.31     Effective July 1, 1995, school boards, intermediate school 
 50.32  boards, and joint vocational technical boards shall transfer to 
 50.33  the higher education board all real property, personal property, 
 50.34  and improvements and attachments thereto related to technical 
 50.35  colleges as determined by the higher education board, and shall 
 50.36  convey all interests in the property.  The school boards, 
 51.1   intermediate school boards, and joint vocational technical 
 51.2   boards shall not receive compensation for the conveyance of the 
 51.3   interests.  On July 1, 1995, title and ownership of all real 
 51.4   property, personal property, and improvements and attachments 
 51.5   thereto related to technical colleges as determined by the 
 51.6   higher education board shall vest in the higher education 
 51.7   board.  On or after July 1, 1995, if requested by the higher 
 51.8   education board, any predecessor in title or ownership shall 
 51.9   issue a deed of conveyance or other document appropriate to 
 51.10  transfer title or ownership to the higher education board to 
 51.11  serve as evidence of transfer of title or ownership.  The higher 
 51.12  education board as successor in interest to any joint vocational 
 51.13  technical board may execute such a deed of conveyance or other 
 51.14  appropriate document to itself for that purpose.  All debt 
 51.15  service payments on the transferred property that have a due 
 51.16  date on or after July 1, 1995, become the responsibility of the 
 51.17  higher education board. 
 51.18     On July 1, 1995, all other obligations incurred on behalf 
 51.19  of a technical college by a school board, a joint vocational 
 51.20  district under Minnesota Statutes, section 136C.60, or an 
 51.21  intermediate school district under Minnesota Statutes, chapter 
 51.22  136D, which will not be satisfied on or before June 30, 1995, 
 51.23  transfer to the higher education board subject to limits 
 51.24  identified in state law or in plans or policies of the higher 
 51.25  education board subject to legislative approval. 
 51.26     The state board of technical colleges, state board for 
 51.27  community colleges, and state university board are abolished, 
 51.28  effective July 1, 1995. 
 51.29                             ARTICLE 6
 51.30     REORGANIZATION AND RECODIFICATION OF THE BOARD OF TRUSTEES
 51.31                            DEFINITIONS
 51.32     Section 1.  Minnesota Statutes 1994, section 15.38, 
 51.33  subdivision 3, is amended to read: 
 51.34     Subd. 3.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
 51.35  ~~state university~~ board of trustees of the Minnesota state 
 51.36  colleges and universities may purchase insurance coverage as it 
 52.1   deems necessary and appropriate to protect buildings and 
 52.2   contents and for activities ancillary to the programs of the 
 52.3   state colleges and universities. 
 52.4      Sec. 2.  [136F.01] [DEFINITIONS.] 
 52.5      Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
 52.6   the following terms have the meanings given them.  
 52.7      Subd. 2.  [BOARD OR BOARD OF TRUSTEES.] "Board" or "board 
 52.8   of trustees" means the board of trustees of the Minnesota state 
 52.9   colleges and universities.  
 52.10     Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
 52.11  of the Minnesota state colleges and universities.  
 52.12     Subd. 4.  [STATE COLLEGES AND UNIVERSITIES.] "State 
 52.13  colleges and universities" means Minnesota state colleges and 
 52.14  universities governed by the board of trustees.  
 52.15     Subd. 5.  [STUDENT ACTIVITIES.] "Student activities" means 
 52.16  lectures, concerts, and other functions contributing to the 
 52.17  mental, moral, and cultural development of the student body and 
 52.18  community in which they live, athletic activities, including 
 52.19  intercollegiate contests, forensics, dramatics, and such other 
 52.20  activities of any nature as in the opinion of the board 
 52.21  contribute to the educational, cultural, or physical well being 
 52.22  of the student body.  
 52.23                         BOARD OF TRUSTEES 
 52.24     Sec. 3.  Minnesota Statutes 1994, section 136E.01, 
 52.25  subdivision 1, is amended to read: 
 52.26     Subdivision 1.  [MEMBERSHIP.] The ~~higher education~~ board~~,~~ 
 52.27  ~~referred to in sections 136E.01 to 136E.05 as "the board,"~~ 
 52.28  consists of 15 members appointed by the governor with the advice 
 52.29  and consent of the senate.  At least one member of the board 
 52.30  must be a resident of each congressional district.  Three 
 52.31  members must be students who are enrolled at least half-time in 
 52.32  a degree, diploma, or certificate program or have graduated from 
 52.33  an institution governed by the board within one year of the date 
 52.34  of appointment.  The student members shall include:  one member 
 52.35  from a community college, one member from a state university, 
 52.36  and one member from a technical college.  The remaining members 
 53.1   must be appointed to represent the state at large.  
 53.2      Sec. 4.  Minnesota Statutes 1994, section 136E.02, 
 53.3   subdivision 1, is amended to read: 
 53.4      Subdivision 1.  [PURPOSE.] A ~~higher education~~ candidate 
 53.5   advisory council for the board ~~candidate advisory council~~ of 
 53.6   trustees of the Minnesota state colleges and universities shall 
 53.7   assist the governor in determining criteria for, and identifying 
 53.8   and recruiting qualified candidates for, nonstudent membership 
 53.9   on the ~~higher education~~ board. 
 53.10     Sec. 5.  Minnesota Statutes 1994, section 136E.02, 
 53.11  subdivision 3, is amended to read: 
 53.12     Subd. 3.  [DUTIES.] The advisory council shall: 
 53.13     (1) develop a statement of the selection criteria to be 
 53.14  applied and a description of the responsibilities and duties of 
 53.15  a member of the ~~higher education~~ board and shall distribute this 
 53.16  to potential candidates; and 
 53.17     (2) for each position on the board, identify and recruit 
 53.18  qualified candidates for the board, based on the background and 
 53.19  experience of the candidates, and their potential for 
 53.20  discharging the responsibilities of a member of the board. 
 53.21     Sec. 6.  Minnesota Statutes 1994, section 136E.021, 
 53.22  subdivision 2, is amended to read: 
 53.23     Subd. 2.  [CRITERIA.] After consulting with the ~~higher~~ 
 53.24  ~~education~~ board of trustees candidate advisory council, the 
 53.25  student associations shall jointly develop a statement of the 
 53.26  selection criteria to be applied to potential candidates. 
 53.27     Sec. 7.  Minnesota Statutes 1994, section 136E.03, is 
 53.28  amended to read: 
 53.29     136E.03 [MISSIONS.] 
 53.30     The mission of the board is to provide programs of study 
 53.31  that meet the needs of students for occupational, general, 
 53.32  baccalaureate, and graduate education.  The state ~~universities,~~ 
 53.33  ~~community~~ colleges~~,~~ and ~~technical colleges~~ universities shall 
 53.34  have distinct missions as provided in section 135A.052, 
 53.35  subdivision 1.  Within that statutory definition and subject to 
 53.36  the approval of the board, each ~~community college, state~~ 
 54.1   ~~university, and technical college~~ campus may develop its own 
 54.2   distinct ~~campus~~ mission.  The board shall develop administrative 
 54.3   arrangements that make possible the efficient use of the 
 54.4   facilities and staff of the ~~technical~~ state colleges~~, community~~ 
 54.5   ~~colleges,~~ and ~~state~~ universities for providing these several 
 54.6   different programs of study, so that students may have the 
 54.7   benefit of improved and broader course offerings, ease of 
 54.8   transfer among schools and programs, integrated course credit, 
 54.9   coordinated degree programs, and coordinated financial aid.  In 
 54.10  carrying out the merger of the three separate systems, the board 
 54.11  shall control administrative costs by eliminating duplicative 
 54.12  administrative positions and course offerings.  
 54.13     Sec. 8.  Minnesota Statutes 1994, section 136E.04, 
 54.14  subdivision 1, is amended to read: 
 54.15     Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
 54.16  possess all powers necessary to manage, supervise, and control 
 54.17  the ~~technical~~ state colleges~~, community colleges,~~ and ~~state~~ 
 54.18  universities and all related property.  ~~It~~ Those powers shall 
 54.19  include, but are not limited to, those enumerated in this 
 54.20  section.  The board shall prescribe courses of study and 
 54.21  conditions of admission, ~~prepare and confer diplomas~~ set tuition 
 54.22  and fees, prescribe requirements for completion of programs, 
 54.23  approve the awarding of appropriate certificates, diplomas, and 
 54.24  degrees, and adopt suitable policies for the institutions it 
 54.25  manages.  Sections 14.01 to 14.47 do not apply to policies and 
 54.26  procedures of the board.  
 54.27     Sec. 9.  [136F.06] [POWERS AND DUTIES.] 
 54.28     Subd. 2.  [CHANCELLOR.] The board shall appoint a 
 54.29  chancellor who shall serve in the unclassified service.  The 
 54.30  chancellor shall be qualified by training and experience in the 
 54.31  field of education or administration.  The chancellor shall 
 54.32  possess powers and perform duties as delegated by the board.  
 54.33  The board shall set the salary of the chancellor according to 
 54.34  section 15A.081, subdivision 7b. 
 54.35     Sec. 10.  Minnesota Statutes 1994, section 136E.04, 
 54.36  subdivision 3, is amended to read: 
 55.1      Subd. 3.  [BUDGET.] (a) The board shall submit to the 
 55.2   governor and the legislature the budget request for its ~~several~~ 
 55.3   ~~different~~ programs of study.  
 55.4      (b) In its biennial budget request, the board shall provide 
 55.5   to the governor and legislature information on its occupational 
 55.6   and vocational programs specifying revenues, expenditures, 
 55.7   trends for expenditures, expenditures for instructional 
 55.8   equipment, and other relevant information related to those 
 55.9   programs.  The board shall also provide information on the 
 55.10  accountability measures it uses to determine the efficiency and 
 55.11  effectiveness of the occupational and vocational programs.  
 55.12     Sec. 11.  [136F.06] [POWERS AND DUTIES.] 
 55.13     Subd. 4.  [OFFICE LOCATION.] Notwithstanding chapter 16B, 
 55.14  the board may select the location for its central office. 
 55.15                            DESIGNATION 
 55.16     Sec. 12.  [136F.10] [DESIGNATION.] 
 55.17     The following are redesignated as the Minnesota state 
 55.18  colleges and universities:  the community colleges located at 
 55.19  Austin, Bloomington, Brainerd, Brooklyn Park, Cloquet, Coon 
 55.20  Rapids, Ely, Fergus Falls, Grand Rapids, Hibbing, International 
 55.21  Falls, Inver Grove Heights, Minneapolis, Rochester, Thief River 
 55.22  Falls, Virginia, White Bear Lake, Willmar, and Worthington; the 
 55.23  community college centers located at Cambridge and Duluth; the 
 55.24  state universities located at Bemidji, Mankato, Marshall, 
 55.25  Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan 
 55.26  area; and the technical colleges located at Alexandria, Albert 
 55.27  Lea, Anoka, Austin, Bemidji, Brainerd, Brooklyn Park, Canby, 
 55.28  Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth, 
 55.29  Faribault, Granite Falls, Hibbing, Hutchinson, Jackson, 
 55.30  Minneapolis, Mahtomedi, Moorhead, North Mankato, Pine City, 
 55.31  Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul, 
 55.32  Staples, Thief River Falls, Wadena, Willmar, and Winona.  
 55.33     Sec. 13.  [136F.12] [FOND DU LAC CAMPUS.] 
 55.34     The Fond du Lac campus has a unique mission among two-year 
 55.35  colleges to serve the lower division general education needs in 
 55.36  Carlton and south St. Louis counties, and the education needs of 
 56.1   American Indians throughout the state and especially in northern 
 56.2   Minnesota.  Accordingly, while the college is governed by the 
 56.3   board of trustees, its governance is accomplished in conjunction 
 56.4   with the board of directors of Fond du Lac tribal college.  By 
 56.5   July 1, 1995, the board of trustees and the board of directors 
 56.6   of Fond du Lac tribal college shall implement the mechanisms 
 56.7   necessary to accomplish the sharing of authority while ensuring 
 56.8   accountability for college actions.  The mechanisms shall 
 56.9   supersede any previous arrangement, agreement, or memorandum of 
 56.10  understanding. 
 56.11     Sec. 14.  [136F.14] [CAMPUS MERGER OR REORGANIZATION.] 
 56.12     The board may merge or reorganize campuses or centers for 
 56.13  the purpose of increased efficiency, use of personnel, placement 
 56.14  of programs, student access, and other needs as determined by 
 56.15  the board. 
 56.16     Sec. 15.  [136F.16] [CAMPUS ESTABLISHMENT.] 
 56.17     Subdivision 1.  [NEW STATE COLLEGES AND UNIVERSITIES.] A 
 56.18  new state college or university shall be established only by 
 56.19  specific legislation.  For the purposes of this subdivision, 
 56.20  campuses or centers that are merged or reorganized under section 
 56.21  136F.14 are not new state colleges or universities. 
 56.22     Subd. 2.  [CAMPUS OR CENTER SITE.] The board may determine 
 56.23  the exact location and site for each campus or center. 
 56.24     Subd. 3.  [OFF-CAMPUS SITES.] The board shall not establish 
 56.25  off-campus centers or other permanent sites to provide academic 
 56.26  programs, courses, or student services without authorizing 
 56.27  legislation.  For the purposes of this subdivision, the campus 
 56.28  of Metropolitan State University is the seven-county 
 56.29  metropolitan area.  
 56.30     Sec. 16.  [136F.18] [CAMPUS CLOSING.] 
 56.31     The board may close a campus or center under its 
 56.32  jurisdiction.  Prior to closing a campus or center, the board 
 56.33  shall hold a public hearing on the issue in the area which would 
 56.34  be affected by the closing.  At the hearing affected persons 
 56.35  shall have an opportunity to present testimony.  The board shall 
 56.36  give notice of this hearing by publishing notice in the State 
 57.1   Register and in a newspaper of general circulation in the 
 57.2   affected area at least 30 days before the scheduled hearing.  
 57.3                               STUDENTS 
 57.4      Sec. 17.  Minnesota Statutes 1994, section 136E.04, 
 57.5   subdivision 7, is amended to read: 
 57.6      Subd. 7.  [REGISTRATION ~~AND FINANCIAL AID~~.] The board shall 
 57.7   devise a student registration system that simplifies and 
 57.8   combines registration ~~for the institutions it governs~~, improves 
 57.9   the financial aid application process for students, and provides 
 57.10  registration at common locations. 
 57.11     Sec. 18.  [136F.21] [STUDENT HEALTH.] 
 57.12     Subdivision 1.  [HEALTH SERVICE.] The board shall offer 
 57.13  health services for students at each state university and may 
 57.14  offer health services for students at each state college.  The 
 57.15  health services may be offered either on campus or in the nearby 
 57.16  community.  The board may charge each student a health service 
 57.17  fee set by the board.  The fees shall be used to maintain the 
 57.18  health service and equip and construct facilities.  The fee may 
 57.19  be used to contract for health, medical, and hospitalization 
 57.20  insurance for students.  The fees shall be deposited in an 
 57.21  activity fund and are annually appropriated to the board for the 
 57.22  purposes of this subdivision.  Each state college and university 
 57.23  shall provide an annual financial accounting of the health 
 57.24  service money to the board.  
 57.25     Subd. 2.  [HEALTH BENEFITS.] The board may contract for 
 57.26  hospital benefits coverage and medical benefits coverage for 
 57.27  students in the state colleges and universities in the same 
 57.28  manner as authorized by section 43A.23 for state employees.  
 57.29     Sec. 19.  Minnesota Statutes 1994, section 136E.525, 
 57.30  subdivision 1, is amended to read: 
 57.31     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
 57.32  statewide student association for the community colleges, one 
 57.33  for the state universities, and one for the technical colleges.  
 57.34  Each ~~statewide~~ campus student association shall be affiliated 
 57.35  with its ~~campus~~ statewide student ~~associations but~~ association 
 57.36  and all students enrolled on those campuses shall be members of 
 58.1   their respective statewide association. 
 58.2      Sec. 20.  Minnesota Statutes 1994, section 136E.525, 
 58.3   subdivision 2, is amended to read: 
 58.4      Subd. 2.  [FEES.] Each statewide association shall set its 
 58.5   fees to be collected by the board and shall submit any changes 
 58.6   in its fees to the board for review.  The board may revise or 
 58.7   reject the fee change.  Fees must be collected by each ~~community~~ 
 58.8   state college~~, state~~ and university~~, and technical college~~ and 
 58.9   shall be credited to each association's account to be spent as 
 58.10  determined by that association. 
 58.11     Sec. 21.  [136F.23] [STUDENTS; RECIPROCITY WITH OTHER 
 58.12  INSTITUTIONS.] 
 58.13     (a) The board may enter into contracts with private or 
 58.14  public colleges or universities in other states and in foreign 
 58.15  countries and with private colleges in this state on a 
 58.16  reciprocal basis in order to accomplish the following:  
 58.17     (1) to enable a student at any institution party to a 
 58.18  contract under this subdivision to take a specialized course or 
 58.19  courses at a different institution from that in which the 
 58.20  student is enrolled, with or without the payment of tuition 
 58.21  charges at the other institution; and 
 58.22     (2) to enable a student enrolled in any of the institutions 
 58.23  party to the contract to attend another institution party to the 
 58.24  contract without being required to pay nonresident tuition fees 
 58.25  and in accordance with the terms of the contract.  
 58.26     (b) A contract entered into under this subdivision shall 
 58.27  provide for approximately equal advantages between the 
 58.28  contracting institutions and shall provide that the admission of 
 58.29  nonresidents shall be on a space available basis only. 
 58.30     Sec. 22.  [136F.24] [LEGAL COUNSELING AND SERVICE PROGRAM; 
 58.31  FUNDING.] 
 58.32     (a) Notwithstanding section 8.06, or any other law or rule 
 58.33  to the contrary, the official campus student association at each 
 58.34  state college or university may expend money for the purpose of 
 58.35  funding a program to provide legal counseling and services to 
 58.36  students of the state college or university.  The money to be 
 59.1   expended shall be from that certain account of the state college 
 59.2   and university activity funds allocated to the student 
 59.3   associations.  
 59.4      (b) In addition to the provisions of paragraph (a), the 
 59.5   statewide college and university student associations may expend 
 59.6   money assigned to them to fund a legal counseling and service 
 59.7   program. 
 59.8      Sec. 23.  [136F.25] [ABSENCE FOR CHEMICAL ABUSE TREATMENT.] 
 59.9      If a student is absent from a state college or university 
 59.10  to participate in a chemical abuse treatment program licensed by 
 59.11  the state, the student, upon request, shall remain on the roll 
 59.12  in the educational program of the state college or university in 
 59.13  which the student is enrolled, according to policies adopted by 
 59.14  the board. 
 59.15     Sec. 24.  [136F.28] [SOUTHWEST ASIA VETERANS; TECHNICAL 
 59.16  COLLEGES.] 
 59.17     Subdivision 1.  [GRANTS.] A Southwest Asia veteran who 
 59.18  enrolls in a technical college program, and who is a Minnesota 
 59.19  resident whose entire education has not included completion of 
 59.20  at least one technical college program is eligible for a state 
 59.21  grant of $500 per year if the veteran has GI Montgomery bill 
 59.22  benefits, or $1,000 per year if the veteran does not have GI 
 59.23  Montgomery bill benefits, until the veteran has completed the 
 59.24  lesser of (1) 115 credits in a technical college program, or (2) 
 59.25  one technical college program.  The grant is based on full-time 
 59.26  attendance and shall be prorated if the student is attending 
 59.27  less than full time.  To be eligible for the tuition relief, a 
 59.28  veteran who is discharged before July 1, 1993, must enroll in a 
 59.29  technical college by July 1, 1995, and a veteran who is 
 59.30  discharged on or after July 1, 1993, must enroll in a technical 
 59.31  college within two years of the date of discharge. All veterans 
 59.32  enrolled under this program must maintain a minimum of six 
 59.33  credits per quarter.  Total grants may not exceed the available 
 59.34  appropriation.  
 59.35     Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
 59.36  "Southwest Asia veteran"  means a person who:  
 60.1      (1) served in the active military service in any branch of 
 60.2   the armed forces of the United States any time between August 1, 
 60.3   1990 and February 27, 1992; 
 60.4      (2) became eligible for the Southwest Asia Service Medal as 
 60.5   a result of the service; 
 60.6      (3) was a Minnesota resident at the time of induction into 
 60.7   the armed forces and for the one year immediately preceding 
 60.8   induction; and 
 60.9      (4) has been separated or discharged from active military 
 60.10  service under conditions other than dishonorable.  
 60.11                             CURRICULUM 
 60.12     Sec. 25.  [136F.30] [COURSES AND PROGRAMS.] 
 60.13     Subdivision 1.  [COURSES OF STUDY.] The board shall 
 60.14  prescribe the courses of study, including graduate and 
 60.15  undergraduate academic programs, training in professional, 
 60.16  semiprofessional, and technical fields, and adult education.  
 60.17  The board shall avoid duplicate program offerings.  The board 
 60.18  shall place a high priority on ensuring the transferability of 
 60.19  credit. 
 60.20     Subd. 2.  [ASSOCIATE DEGREE PLAN.] The board shall develop 
 60.21  a plan for awarding associate degrees which reflects the mission 
 60.22  of each campus it governs. 
 60.23     Subd. 3.  [SHORT-TERM PROGRAMS.] The board may approve a 
 60.24  short-term program in a state college or university as an 
 60.25  economic development initiative.  The short-term program shall 
 60.26  have an approved program length of not more than two years, be 
 60.27  operated for a specified duration, and shall not become 
 60.28  permanent.  
 60.29     Sec. 26.  [136F.32] [DEGREES; DIPLOMAS; CERTIFICATES.] 
 60.30     The board may award appropriate certificates, diplomas, or 
 60.31  degrees to persons who complete a prescribed curriculum. 
 60.32     Sec. 27.  [136F.34] [EDUCATIONAL TELEVISION AND 
 60.33  TELECOMMUNICATIONS.] 
 60.34     Subdivision 1.  [TELEVISION AND TELECOMMUNICATION.] The 
 60.35  board may establish educational television and telecommunication 
 60.36  projects at state colleges and universities, and may make 
 61.1   facilities available to public or private nonprofit 
 61.2   organizations.  
 61.3      Subd. 2.  [COOPERATION.] The board may cooperate and 
 61.4   contract with public and private educational television systems, 
 61.5   and other civic, cultural, and educational agencies and 
 61.6   nonprofit organizations. 
 61.7      Sec. 28.  [136F.35] [MODEL SCHOOLS.] 
 61.8      The board may establish model schools in a state university 
 61.9   for illustrating methods of teaching. 
 61.10                          HUMAN RESOURCES 
 61.11     Sec. 29.  [136F.40] [APPOINTMENT OF PERSONNEL.] 
 61.12     Subdivision 1.  [APPOINTMENT.] The board shall appoint all 
 61.13  presidents, teachers, and other necessary employees and shall 
 61.14  prescribe their duties consistent with chapter 43A.  Salaries 
 61.15  and benefits of employees must be determined according to 
 61.16  chapters 43A and 179A.  
 61.17     Subd. 2.  [INTERVIEW EXPENSES.] Candidates for positions in 
 61.18  the board office or in a state college or university who have 
 61.19  been invited by the board for an interview may be reimbursed for 
 61.20  travel and subsistence expenses in the same manner and amounts 
 61.21  as state employees.  
 61.22     Sec. 30.  Minnesota Statutes 1994, section 136E.31, is 
 61.23  amended to read: 
 61.24     136E.31 [ASSIGNMENT TO BARGAINING UNITS.] 
 61.25     Actions by the ~~higher education~~ board to merge or 
 61.26  redesignate institutions or to promote collaborative efforts 
 61.27  between institutions must not unilaterally change faculty 
 61.28  assignments to bargaining units provided in section 179A.10, 
 61.29  subdivision 2. 
 61.30     Sec. 31.  [136F.42] [EXTENDED LEAVES OF ABSENCE.] 
 61.31     Subdivision 1.  [DEFINITION.] As used in this section, 
 61.32  "teacher" means a person on the instructional or administrative 
 61.33  staff of the state colleges and universities who is a member of 
 61.34  the teachers retirement association under chapter 354 or who is 
 61.35  covered by the unclassified employees plan under chapter 352D or 
 61.36  individual retirement account plan under chapter 354B.  It shall 
 62.1   not include a chancellor, deputy chancellor, or vice-chancellor. 
 62.2      Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
 62.3   extended leave of absence without salary to a full-time teacher 
 62.4   who has been employed by the board for at least five years and 
 62.5   has at least ten years of allowable service as defined in 
 62.6   section 354.05, subdivision 13.  The maximum duration of an 
 62.7   extended leave of absence pursuant to this section shall be 
 62.8   determined by mutual agreement of the board and the teacher at 
 62.9   the time the leave is granted and shall be at least three but no 
 62.10  more than five years.  An extended leave of absence pursuant to 
 62.11  this section shall be taken by mutual consent of the board and 
 62.12  the teacher.  No teacher may receive more than one leave of 
 62.13  absence pursuant to this section.  
 62.14     Subd. 3.  [REINSTATEMENT.] A teacher on an extended leave 
 62.15  of absence pursuant to this section shall have the right to be 
 62.16  reinstated to the same position or a similar position within the 
 62.17  department or program from which the leave was granted at the 
 62.18  beginning of the school year which immediately follows a year of 
 62.19  extended leave of absence, unless the teacher is discharged or 
 62.20  placed on retrenchment or on layoff or the teacher's contract is 
 62.21  terminated while the teacher is on the extended leave.  The 
 62.22  board shall not be obligated to reinstate a teacher who is on an 
 62.23  extended leave of absence pursuant to this section unless the 
 62.24  teacher advises the board of an intention to return before 
 62.25  February 1 in the school year preceding the school year in which 
 62.26  the teacher wishes to return.  
 62.27     Subd. 4.  [SENIORITY RIGHTS.] A teacher who is reinstated 
 62.28  to the same or similar position after an extended leave pursuant 
 62.29  to this section shall not lose tenure or credit for previous 
 62.30  seniority in the employing state college or university.  A 
 62.31  teacher shall not accrue seniority credit during the time of a 
 62.32  leave of absence pursuant to this section, except that a teacher 
 62.33  at a state college or university may accrue seniority credit 
 62.34  during the leave, consistent with the conditions of the 
 62.35  collective bargaining agreement.  
 62.36     Subd. 5.  [SALARY.] The years spent by a teacher on an 
 63.1   extended leave of absence pursuant to this section shall not be 
 63.2   included in the determination of the teacher's salary upon 
 63.3   reinstatement to the same or similar position by the board.  The 
 63.4   credits earned by a teacher on an extended leave of absence 
 63.5   pursuant to this section shall not be included in the 
 63.6   determination of the teacher's salary upon reinstatement to the 
 63.7   same or similar position by the board for a period of time equal 
 63.8   to the time of the extended leave of absence.  
 63.9      Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
 63.10  a leave of absence which is not subject to the provisions of 
 63.11  this section and section 354.094. 
 63.12     Sec. 32.  [136F.43] [ANNUITIES.] 
 63.13     Subdivision 1.  [PURCHASE.] At the request of an employee, 
 63.14  the board may negotiate and purchase an individual annuity 
 63.15  contract for an employee for retirement or other purposes from a 
 63.16  company licensed to do business in Minnesota, and may allocate a 
 63.17  portion of the compensation otherwise payable to the employee as 
 63.18  salary for the purpose of paying the entire premium due or to 
 63.19  become due under the contract. The allocation shall be made in a 
 63.20  manner that will qualify the annuity premiums, or a portion 
 63.21  thereof, for the benefit afforded under section 403(b) of the 
 63.22  current federal Internal Revenue Code or any equivalent 
 63.23  provision of subsequent federal income tax law. The employee 
 63.24  shall own the contract and the employee's rights thereunder 
 63.25  shall be nonforfeitable except for failure to pay premiums.  
 63.26     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
 63.27  shall be deposited in an annuity account established by the 
 63.28  board.  Payment of annuity premiums shall be made when due or in 
 63.29  accordance with the salary agreement entered into between the 
 63.30  employee and the board.  The money in the annuity account is not 
 63.31  subject to the budget, allotment, and incumbrance system 
 63.32  provided for in chapter 16A.  
 63.33     Sec. 33.  [136F.44] [NONPROFIT FOUNDATION PAYROLL 
 63.34  DEDUCTION.] 
 63.35     Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
 63.36  finance, upon the written request of an employee of the board, 
 64.1   may deduct from an employee's salary or wages the amount 
 64.2   requested for payment to a nonprofit state college or university 
 64.3   foundation meeting the requirements in subdivision 2.  The 
 64.4   commissioner shall issue a warrant for the deducted amount to 
 64.5   the nonprofit foundation.  The Penny fellowship of the Minnesota 
 64.6   state university student association shall be considered a 
 64.7   nonprofit state college and university foundation for purposes 
 64.8   of this section. 
 64.9      Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
 64.10  state college or university foundation that desires to receive 
 64.11  contributions through payroll deductions shall apply to the 
 64.12  board for approval to participate in the payroll deduction 
 64.13  plan.  The board may approve the application for participation 
 64.14  if the foundation:  
 64.15     (1) is tax exempt under section 501(c)3 of the Internal 
 64.16  Revenue Code of 1986, as amended; 
 64.17     (2) qualifies for tax deductible contributions under 
 64.18  section 170 of the Internal Revenue Code of 1986, as amended; 
 64.19     (3) secures funding solely for distribution to a state 
 64.20  college or university or for distribution to students in the 
 64.21  form of scholarships; and 
 64.22     (4) has been incorporated according to chapter 317A for at 
 64.23  least one calendar year before the date it applies to the board 
 64.24  for approval.  
 64.25     Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
 64.26  deductions authorized in subdivision 1 may not interfere with, 
 64.27  require a modification of, nor be conducted during the period of 
 64.28  a payroll deduction fund drive for employees authorized by 
 64.29  section 309.501. 
 64.30     Sec. 34.  [136F.45] [EMPLOYER-PAID HEALTH INSURANCE.] 
 64.31     (a) This section applies to a person who:  
 64.32     (1) retires from the state university system, the technical 
 64.33  college system, or the community college system, or from a 
 64.34  successor system employing state university, technical college, 
 64.35  or community college faculty, with at least ten years of service 
 64.36  credit in the system from which the person retires; 
 65.1      (2) was employed on a full-time basis immediately preceding 
 65.2   retirement as a state university, technical college, or 
 65.3   community college faculty member; 
 65.4      (3) begins drawing an annuity from the teachers retirement 
 65.5   association or from the first class cities teachers retirement 
 65.6   funds; and 
 65.7      (4) returns to work on not less than a one-third time basis 
 65.8   and not more than a two-thirds time basis in the system from 
 65.9   which the person retired under an agreement in which the person 
 65.10  may not earn a salary of more than $35,000 in a calendar year 
 65.11  from employment in the system from which the person retired.  
 65.12     (b) Initial participation, the amount of time worked, and 
 65.13  the duration of participation under this section must be 
 65.14  mutually agreed upon by the employer and the employee.  The 
 65.15  employer may require up to one-year notice of intent to 
 65.16  participate in the program as a condition of participation under 
 65.17  this section.  The employer shall determine the time of year the 
 65.18  employee shall work.  
 65.19     (c) For a person eligible under paragraphs (a) and (b), the 
 65.20  employing board shall make the same employer contribution for 
 65.21  hospital, medical, and dental benefits as would be made if the 
 65.22  person were employed full time.  
 65.23     (d) For work under paragraph (a), a person must receive a 
 65.24  percentage of the person's salary at the time of retirement that 
 65.25  is equal to the percentage of time the person works compared to 
 65.26  full-time work.  
 65.27     (e) If a collective bargaining agreement covering a person 
 65.28  provides for an early retirement incentive that is based on age, 
 65.29  the incentive provided to the person must be based on the 
 65.30  person's age at the time employment under this section ends.  
 65.31  However, the salary used to determine the amount of the 
 65.32  incentive must be the salary that would have been paid if the 
 65.33  person had been employed full time for the year immediately 
 65.34  preceding the time employment under this section ends.  
 65.35     Sec. 35.  [136F.49] [EXCHANGE TEACHERS.] 
 65.36     Subdivision 1.  [ASSIGNMENT; PROFESSIONAL STAFF.] The board 
 66.1   may assign a member of its professional staff to teach in 
 66.2   another institution of education beyond the borders of the state 
 66.3   of Minnesota.  When so assigned, the staff member is an exchange 
 66.4   teacher.  
 66.5      Subd. 2.  [ASSIGNMENT; TEACHERS.] The board may assign a 
 66.6   teacher for service in another institution of education beyond 
 66.7   the borders of the state of Minnesota in exchange for services 
 66.8   of a teacher with qualifications acceptable to the board.  
 66.9      Subd. 3.  [RIGHTS.] An exchange teacher shall retain all 
 66.10  rights under contract with the board as though teaching in a 
 66.11  Minnesota state college or university. 
 66.12     Sec. 36.  [136F.495] [LICENSURE.] 
 66.13     The board may adopt rules under chapter 14 for licensure of 
 66.14  teaching, support, and supervisory personnel in post-secondary 
 66.15  and adult vocational education.  When necessary for continuous 
 66.16  programs approved by the board and when the board determines 
 66.17  that appropriate licensure standards do not exist, the board may 
 66.18  adopt appropriate temporary standards without regard to chapter 
 66.19  14 and may issue temporary licenses to teaching and support 
 66.20  personnel.  A temporary license is valid for up to one year and 
 66.21  is not renewable, but a person holding a temporary license may, 
 66.22  upon its expiration, be issued a license in accordance with 
 66.23  standards adopted under chapter 14.  The board may establish a 
 66.24  processing fee for the issuance, renewal, or extension of a 
 66.25  license.  
 66.26                           ADMINISTRATION 
 66.27     Sec. 37.  [136F.50] [COOPERATION OR PROMOTION OF A STATE 
 66.28  COLLEGE OR UNIVERSITY.] 
 66.29     The board may cooperate by contractual arrangement or 
 66.30  otherwise with responsible persons, firms, corporations, 
 66.31  associations, or governmental agencies to promote short courses, 
 66.32  research, and other programs and activities in the state 
 66.33  colleges and universities as in the judgment of the board 
 66.34  contribute to the development of the state colleges and 
 66.35  universities and the welfare of their students. 
 66.36     Sec. 38.  Minnesota Statutes 1994, section 136E.05, is 
 67.1   amended to read: 
 67.2      136E.05 [LOCAL ADVISORY COMMITTEES.] 
 67.3      Subdivision 1.  [APPOINTMENT.] The president~~, with the~~ 
 67.4   ~~approval of the chancellor and the board,~~ may appoint a local 
 67.5   advisory committee for each campus.  Committee members must be 
 67.6   qualified people who have knowledge of and interest in the 
 67.7   campus.  The board shall define the role and authority of the 
 67.8   advisory committees and establish procedures for the 
 67.9   appointment, terms, and termination of members.  The president 
 67.10  or an appointee of the president shall regularly meet and 
 67.11  consult with the local advisory committee. 
 67.12     Subd. 2.  [COMPENSATION.] Advisory committee members shall 
 67.13  serve without compensation and without reimbursement for 
 67.14  expenses.  
 67.15     Sec. 39.  [136F.54] [PARKING AND TRAFFIC REGULATION.] 
 67.16     Subdivision 1.  [BOARD POWER.] Notwithstanding section 
 67.17  169.966, the board may authorize a state college or university 
 67.18  to adopt and enforce policies, regulations, or ordinances for 
 67.19  the regulation of traffic and parking in parking facilities and 
 67.20  on private roads and roadways situated on property owned, 
 67.21  leased, occupied, or operated by the state college or university.
 67.22     Subd. 2.  [FINES; FEES.] A state college or university may 
 67.23  collect a fine and a towing fee for a violation.  Money 
 67.24  collected under this section by a state college or university is 
 67.25  annually appropriated to the state college or university for 
 67.26  parking lot maintenance, improvement, and policy enforcement. 
 67.27     Subd. 3.  [DISPUTES.] A state college or university, with 
 67.28  the approval of the board, shall establish procedures to resolve 
 67.29  a dispute arising from enforcement of a policy. 
 67.30     Subd. 4.  [PROCEDURE.] Chapter 14 does not apply to this 
 67.31  section.  
 67.32     Subd. 5.  [ENFORCEMENT.] Every sheriff, constable, police 
 67.33  officer, or other peace officer shall have authority to enforce 
 67.34  all policies and ordinances adopted pursuant to this section and 
 67.35  shall have authority to arrest and prosecute offenders for 
 67.36  violations of law.  
 68.1      Sec. 40.  [136F.56] [STUDENT HOUSING MANAGEMENT.] 
 68.2      The board may contract with student housing facility owners 
 68.3   or on-site management firms to assist in the operation, control, 
 68.4   and management of the facility. 
 68.5      Sec. 41.  [136F.58] [STATE COUNCIL ON VOCATIONAL TECHNICAL 
 68.6   EDUCATION.] 
 68.7      Subdivision 1.  [STATE AGENCY PURPOSE.] The state council 
 68.8   on vocational technical education, formerly known as the 
 68.9   Minnesota state advisory council for vocational education, is a 
 68.10  state agency in the executive branch.  Its purpose is to 
 68.11  implement section 112 of the Carl D. Perkins Vocational 
 68.12  Education Act of 1984, United States Code, title 20, section 
 68.13  2322, and other purposes necessary to improve vocational 
 68.14  technical education.  
 68.15     Subd. 2.  [MEMBERS; TERMS.] The governor shall appoint the 
 68.16  members of the council according to United States Code, title 
 68.17  20, section 2322.  Except as otherwise provided by that act, 
 68.18  members are governed by section 15.0575.  
 68.19     Subd. 3.  [OFFICES.] The commissioner of administration 
 68.20  shall provide the council with suitable office space, 
 68.21  furnishings, and equipment.  
 68.22     Subd. 4.  [FUNDING.] Federal, state, or private money 
 68.23  received by the council must be deposited in the state treasury 
 68.24  and credited to a special account for the council.  The council 
 68.25  has sole authority to spend its money.  The money may not be 
 68.26  diverted or reprogrammed by any agency or person to any other 
 68.27  purpose.  Unless restricted by federal or other state law, the 
 68.28  council may carry forward any unexpended balance from one fiscal 
 68.29  year to the next and from one fiscal biennium to the next.  
 68.30     Subd. 5.  [SERVICE CONTRACTS.] The council may contract for 
 68.31  the services it needs to carry out its function.  The council 
 68.32  may also contract to provide services to other organizations. 
 68.33  The contracts are not subject to the contract approval 
 68.34  procedures of the commissioner of administration or of chapter 
 68.35  16B.  
 68.36     Subd. 6.  [FISCAL AGENT.] The board shall act as fiscal 
 69.1   agent for the council and provide other support services 
 69.2   necessary for disbursements, accounting, auditing, and reporting.
 69.3      Subd. 7.  [STAFF.] The council may employ an executive 
 69.4   director and other staff needed to carry out its duties.  The 
 69.5   executive director shall serve in the unclassified service and 
 69.6   may be paid an allowance not to exceed $2,000 annually for 
 69.7   miscellaneous expenses in connection with duties of the office. 
 69.8   The council may contract with professional, technical, and 
 69.9   clerical consultants and interns needed to carry out its 
 69.10  functions. 
 69.11     Sec. 42.  [136F.59] [CLASSES ON HOLIDAYS.] 
 69.12     The board may conduct classes in the state colleges and 
 69.13  universities on any of the following holidays:  Martin Luther 
 69.14  King's Birthday, Presidents' Day, Columbus Day, and Veterans Day.
 69.15     Sec. 43.  [136F.591] [BOOKSTORES.] 
 69.16     The board may permit a state college or university to 
 69.17  conduct a bookstore in a state college or university building, 
 69.18  or may allocate space in a state college or university building 
 69.19  and permit a person or corporation to conduct a bookstore 
 69.20  therein without rent at the board's pleasure and on such 
 69.21  conditions as the board may impose.  The board may provide 
 69.22  insurance, at no cost to the state, for the inventory of a 
 69.23  bookstore a state college or university conducts in its building.
 69.24                             FACILITIES 
 69.25     Sec. 44.  [136F.60] [COLLEGE AND UNIVERSITY SITES; 
 69.26  ACQUISITION.] 
 69.27     Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
 69.28  UNIVERSITIES.] The board may purchase property adjacent to or in 
 69.29  the vicinity of the campuses as necessary for the development of 
 69.30  a state university.  Before taking action, the board shall 
 69.31  consult with the chairs of the senate finance committee and the 
 69.32  house ways and means committee about the proposed action.  The 
 69.33  board shall explain the need to acquire property, specify the 
 69.34  property to be acquired, and indicate the source and amount of 
 69.35  money needed for the acquisition.  The amount needed may be 
 69.36  spent from sums previously appropriated for purposes of the 
 70.1   state colleges and universities, including but not limited to 
 70.2   general fund appropriations for instructional or 
 70.3   noninstructional expenditures, general fund appropriations 
 70.4   carried forward, or state college and university activity fund 
 70.5   appropriations. The board may pay relocation costs, at its 
 70.6   discretion, when acquiring property.  
 70.7      Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
 70.8   appropriated to the board to acquire lands or sites for public 
 70.9   buildings or real estate, the acquisition may be by gift, 
 70.10  purchase, or condemnation proceedings.  Condemnation proceedings 
 70.11  must be under chapter 117. 
 70.12     Sec. 45.  [136F.64] [STUDENT HOUSING; LAND TRANSFER.] 
 70.13     At the request of the board, the commissioner of 
 70.14  administration shall transfer and convey, or lease for a term of 
 70.15  years, state land under the control of but no longer needed by a 
 70.16  state college or university to the city where the state college 
 70.17  or university is located.  The land must be used by the city for 
 70.18  student housing.  The conveyance must be made for no monetary 
 70.19  consideration, and by quitclaim deed in a form approved by the 
 70.20  attorney general.  The deed must provide that the land reverts 
 70.21  to the state if it is no longer used for student housing unless 
 70.22  the owner of improvements on the land agrees before the 
 70.23  reversion to pay the state the value of the unimproved land as 
 70.24  determined by the commissioner before the improvements were 
 70.25  made.  The commissioner shall inflate the value of the 
 70.26  unimproved land by three percent compounded annually for each 
 70.27  year of ownership after the improvements were made.  For 
 70.28  purposes of determining the value, the commissioner shall 
 70.29  designate two or more of the regularly appointed and qualified 
 70.30  state appraisers to determine the value of the land.  
 70.31     Sec. 46.  Minnesota Statutes 1994, section 136E.692, 
 70.32  subdivision 1, is amended to read: 
 70.33     Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The ~~higher~~ 
 70.34  ~~education~~ board shall supervise and control the preparation of 
 70.35  plans and specifications for the construction, alteration, or 
 70.36  enlargement of ~~community college, state university, and~~ 
 71.1   ~~technical~~ state college and university buildings, structures, 
 71.2   and improvements for which appropriations are made to the board. 
 71.3   The board shall advertise for bids and award contracts in 
 71.4   connection with the improvements, supervise and inspect the 
 71.5   work, approve necessary changes in the plans and specifications, 
 71.6   approve estimates for payment, and accept the improvements when 
 71.7   completed according to the plans and specifications. 
 71.8      Sec. 47.  Minnesota Statutes 1994, section 136E.692, 
 71.9   subdivision 3, is amended to read: 
 71.10     Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
 71.11  projects, the ~~higher education~~ board must not restrict its 
 71.12  access to litigation or limit its methods of redress to 
 71.13  arbitration or other nonjudicial procedures. 
 71.14     Sec. 48.  Minnesota Statutes 1994, section 136E.692, 
 71.15  subdivision 4, is amended to read: 
 71.16     Subd. 4.  [REPAIRS.] The ~~higher education~~ board shall 
 71.17  supervise and control the making of necessary repairs to all 
 71.18  ~~community~~ state college~~, state~~ and university~~, and technical~~ 
 71.19  ~~college~~ buildings and structures. 
 71.20     Sec. 49.  [136F.68] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
 71.21     In awarding contracts for capital projects under section 
 71.22  16B.09, the board shall consider the documentation provided by 
 71.23  the bidders regarding their qualifications, including evidence 
 71.24  of having successfully completed similar work, or delivering 
 71.25  services or products comparable to that being requested.  The 
 71.26  board shall set procedures to administer this section, which 
 71.27  must include practices that will assist in the economic 
 71.28  development of small businesses, small targeted group 
 71.29  businesses, and businesses in economically disadvantaged areas 
 71.30  designated under section 16B.19. 
 71.31                              FINANCE 
 71.32     Sec. 50.  [136F.70] [TUITION; FEES; ACTIVITIES FUNDS.] 
 71.33     Subdivision 1.  [TUITION.] The board shall set rates of 
 71.34  tuition for the various instructional programs, including 
 71.35  in-service education courses, general adult education programs, 
 71.36  summer session programs, off-campus courses, institutes, 
 72.1   projects, and reciprocity agreements.  The board may waive 
 72.2   tuition for certain persons, courses, and programs.  
 72.3      Subd. 2.  [FEES.] The board may prescribe fees to be 
 72.4   charged students for student unions, state college and 
 72.5   university activities, functions, and purposes.  
 72.6      Subd. 3.  [REFUNDS.] The board may make refunds to students 
 72.7   for tuition, activity fees, union fees, and any other fees from 
 72.8   imprest cash funds.  The imprest cash fund shall be reimbursed 
 72.9   periodically by checks or warrants drawn on the funds and 
 72.10  accounts to which the refund should ultimately be charged.  The 
 72.11  amounts necessary to pay the refunds are appropriated from the 
 72.12  funds and accounts to which they are charged.  
 72.13     Sec. 51.  [136F.71] [RECEIPTS.] 
 72.14     Subdivision 1.  [APPROPRIATION OF RECEIPTS.] All receipts 
 72.15  of every kind, nature, and description, including student 
 72.16  tuition and fees, all federal receipts, aids, contributions, and 
 72.17  reimbursements, but not including receipts attributable to state 
 72.18  colleges and universities activity funds, in all the state 
 72.19  colleges and universities are appropriated to the board, but are 
 72.20  subject to budgetary control to be exercised by the commissioner 
 72.21  of finance.  The balance in these funds shall not cancel on June 
 72.22  30, but shall be available in the next fiscal year. 
 72.23     Subd. 2.  [ACTIVITY FUNDS.] All receipts attributable to 
 72.24  the state colleges and universities activity funds and deposited 
 72.25  in the state treasury are appropriated to the board and are not 
 72.26  subject to budgetary control as exercised by the commissioner of 
 72.27  finance.  
 72.28     Sec. 52.  [136F.72] [FUNDS.] 
 72.29     Subdivision 1.  [ACTIVITY FUNDS.] The board shall establish 
 72.30  in each state college and university a fund to be known as the 
 72.31  activity fund.  The purpose of these funds shall be to provide 
 72.32  for the administration of state college and university 
 72.33  activities designed for student recreational, social, welfare, 
 72.34  and educational pursuits supplemental to the regular curricular 
 72.35  offerings.  The activity funds shall encompass accounts for 
 72.36  student activities, student health services authorized college 
 73.1   and university agencies, authorized auxiliary enterprises, 
 73.2   student loans, gifts and endowments, and in addition other 
 73.3   accounts as the board may prescribe.  
 73.4      Subd. 2.  [ADMINISTRATIVE FUND AND ACCOUNTS.] The board may 
 73.5   establish a fund within the board office for management of 
 73.6   employee retirement funds.  The board may establish an 
 73.7   administrative fund at each state college and university or 
 73.8   within the board office for the administration of contracts, 
 73.9   student equipment purchases, and receipt and transfer of foreign 
 73.10  program money.  
 73.11     Subd. 3.  [ADMINISTRATION.] The board, independent of other 
 73.12  authority and notwithstanding chapters 16A and 16B, shall 
 73.13  administer the money collected for the state colleges and 
 73.14  universities activity funds and the administrative fund.  All 
 73.15  activity fund money collected shall be administered under the 
 73.16  policies of the board subject to audit of the legislative 
 73.17  auditor.  
 73.18     Subd. 4.  [IMPREST CASH FUNDS.] The board may establish an 
 73.19  imprest cash fund in each of its state colleges and universities.
 73.20     Sec. 53.  [136F.73] [CASH OVER AND SHORT ACCOUNT OF IMPREST 
 73.21  CASH FUND.] 
 73.22     The board may establish a cash over and short account 
 73.23  within the imprest cash fund for each state college and 
 73.24  university.  This account shall be used to record on a daily 
 73.25  basis overages and shortages of cash receipts.  At the end of 
 73.26  each fiscal year, the board shall credit or debit the overage or 
 73.27  shortage from each state college or university to the board 
 73.28  maintenance and equipment appropriation account.  In the 
 73.29  instance of a debit balance remaining in any cash over and short 
 73.30  accounts, the board may transfer from the maintenance and 
 73.31  equipment appropriation account moneys sufficient to offset such 
 73.32  debit balance.  The commissioner of finance shall make the 
 73.33  appropriate adjustments and entries on the general books of 
 73.34  account of the state.  
 73.35     Sec. 54.  [136F.74] [CARRY-OVER AUTHORITY.] 
 73.36     The board may carry over any unexpended balance from its 
 74.1   appropriation from the first year of a biennium into the second 
 74.2   year of the biennium.  The board may carry over any unexpended 
 74.3   balance into the following biennium.  The amounts carried over 
 74.4   must not be taken into account in determining state 
 74.5   appropriations and must not be deducted from a later 
 74.6   appropriation. 
 74.7      Sec. 55.  [136F.75] [LITIGATION AWARDS.] 
 74.8      Notwithstanding any law to the contrary, the board may keep 
 74.9   money received from successful litigation by or against the 
 74.10  board.  Awards made to the state or the board resulting from 
 74.11  litigation against or by the board must be kept by the board to 
 74.12  the credit of the account from which the litigation was 
 74.13  originally funded.  An award that exceeds the costs incurred in 
 74.14  the litigation shall be used by the board for repair or 
 74.15  replacement projects.  The board shall report on any awards it 
 74.16  receives as part of its biennial budget request.  
 74.17     Sec. 56.  [136F.77] [TECHNICAL EQUIPMENT.] 
 74.18     Subdivision 1.  [PROPRIETARY PURCHASES.] Notwithstanding 
 74.19  the competitive bidding requirements of chapter 16B, technical 
 74.20  educational equipment may be purchased for state colleges and 
 74.21  universities on request of the board either by brand designation 
 74.22  or in accordance with standards and specifications prescribed by 
 74.23  the board.  The purchase is subject to supervision by the 
 74.24  information policy office under section 16B.41.  
 74.25     Subd. 2.  [COMPUTER SALES AND SUPPORT.] The board may sell 
 74.26  computers and related products to state college and university 
 74.27  staff and students to advance their instructional and research 
 74.28  abilities.  The board shall contract with a private vendor for 
 74.29  service, maintenance, and support for computers and related 
 74.30  products sold by the board. 
 74.31     Sec. 57.  [136F.78] [FINANCING FOR CHILD CARE FACILITIES.] 
 74.32     A state college or university may seek financing for child 
 74.33  care facilities through the higher education facilities 
 74.34  authority, as provided in section 136A.28, subdivision 3, only 
 74.35  with the explicit authorization of the board.  
 74.36     Sec. 58.  [136F.79] [SOLE STATE AGENCY.] 
 75.1      The board is the sole state agency to receive and disburse 
 75.2   federal funds authorized by the Vocational Education Act of 
 75.3   1963, as amended in the education amendments of 1976, Public Law 
 75.4   Number 94-482, and Code of Federal Regulations, title 34, part 
 75.5   400.  The board shall develop and submit the state plan for 
 75.6   vocational technical education.  The board shall develop the 
 75.7   state plan according to terms of agreement with the state board 
 75.8   of education.  
 75.9                           GRANTS AND GIFTS 
 75.10     Sec. 59.  [136F.80] [GRANTS; GIFTS; BEQUESTS; DEVISES; 
 75.11  ENDOWMENTS.] 
 75.12     Subdivision 1.  [RECEIPT AND ACCEPTANCE.] The board may 
 75.13  apply for, receive, and accept on behalf of the state and for 
 75.14  the benefit of any state college or university any grant, gift, 
 75.15  bequest, devise, or endowment that any person, firm, 
 75.16  corporation, foundation, association, or government agency may 
 75.17  make to the board for the purposes of the state colleges and 
 75.18  universities.  The board may use any money given to it or to any 
 75.19  of the state colleges and universities consistent with the terms 
 75.20  and conditions under which the money was received and for the 
 75.21  purposes stated.  All moneys received are appropriated to the 
 75.22  board for use in the colleges and universities.  These moneys 
 75.23  shall not be taken into account in determining appropriations or 
 75.24  allocations.  All taxes and special assessments constituting a 
 75.25  lien on any real property received and accepted by the board 
 75.26  under this section shall be paid in full before title is 
 75.27  transferred to the state.  
 75.28     Subd. 2.  [DEPOSIT OF MONEY.] The board shall provide by 
 75.29  policy, in accordance with provisions of chapter 118, for the 
 75.30  deposit of all money received or referred to under this 
 75.31  section.  Whenever the board shall by resolution determine that 
 75.32  there are moneys in the state college or university funds not 
 75.33  currently needed, the board may by resolution authorize and 
 75.34  direct the president of the college or university to invest a 
 75.35  specified amount in securities as are duly authorized as legal 
 75.36  investments for savings banks and trust companies. Securities so 
 76.1   purchased shall be deposited and held for the board by any bank 
 76.2   or trust company authorized to do a banking business in this 
 76.3   state. 
 76.4                          GENERAL PROVISIONS 
 76.5      Sec. 60.  [TRANSFER OF RETIREMENT FUND MEMBERSHIP FOR 
 76.6   TECHNICAL COLLEGE EMPLOYEES; ELECTION TO RETAIN RETIREMENT FUND 
 76.7   MEMBERSHIP.] 
 76.8      A person who is employed by a technical college or by the 
 76.9   technical college system on June 30, 1995, and who is 
 76.10  transferred to state employment shall remain a member of the 
 76.11  public employees retirement association or the Minneapolis 
 76.12  employees retirement fund, whichever applies, unless the person 
 76.13  affirmatively elects, in writing, retirement coverage by the 
 76.14  general state employees retirement plan of the Minnesota state 
 76.15  retirement system.  The following provisions govern the election 
 76.16  of a transfer or the retention of retirement benefit coverage:  
 76.17     (1) For a person who desires to transfer benefit coverage, 
 76.18  the affirmative written election must be made within 120 days of 
 76.19  the transfer of the employee to state employment.  
 76.20     (2) On behalf of transferred employees who retain 
 76.21  retirement benefit coverage with the pretransfer retirement 
 76.22  plan, the board shall make the applicable employer contributions 
 76.23  to the public employees retirement association under Minnesota 
 76.24  Statutes, section 353.27, subdivisions 3 and 3a, or the same 
 76.25  percentage of covered payroll employer contribution to the 
 76.26  Minneapolis employees retirement fund that special school 
 76.27  district No. 1 is required to make for that school year under 
 76.28  Minnesota Statutes, section 422A.101, subdivision 2.  
 76.29     (3) An employee who makes a retirement benefit coverage 
 76.30  transfer election under this section may revoke that election at 
 76.31  any time within the first six months after the person becomes a 
 76.32  state employee.  Once an employee revokes the retirement benefit 
 76.33  coverage transfer election, the employee may not make another 
 76.34  election.  If the initial retirement benefit coverage transfer 
 76.35  election is revoked, all retirement contributions made by or on 
 76.36  behalf of the employee revoking a prior election must be 
 77.1   transferred to the applicable retirement plan as though they 
 77.2   were erroneous deductions or contributions, plus monthly 
 77.3   interest at an annual rate of 8.5 percent, compounded monthly, 
 77.4   and the balance remaining between any contribution amount 
 77.5   transferred and the amount of contributions that otherwise would 
 77.6   have been due are payable in the applicable proportions by the 
 77.7   revoking employee and the board, plus monthly interest at an 
 77.8   annual rate of 8.5 percent, compounded monthly.  
 77.9      (4) The executive directors of the Minnesota state 
 77.10  retirement system, the public employees retirement association, 
 77.11  and the Minneapolis employees retirement fund, and the 
 77.12  chancellor of the higher education system, shall confer and 
 77.13  jointly adopt appropriate procedures for making the retirement 
 77.14  benefit coverage transfer elections under this section.  
 77.15     (5) The executive directors of the public employees 
 77.16  retirement association, the Minnesota state retirement system, 
 77.17  and the Minneapolis employees retirement fund, whichever 
 77.18  applies, shall, upon request, provide appropriate benefit 
 77.19  counseling to applicable affected employees on the effect of 
 77.20  electing retirement benefit coverage by the general state 
 77.21  employees retirement plan of the Minnesota state retirement 
 77.22  system. 
 77.23     Sec. 61.  [STATUTORY DOWNSIZING; BOARD RECOMMENDATIONS.] 
 77.24     By January 1, 1996, the board of trustees of the Minnesota 
 77.25  state colleges and universities and the board of regents of the 
 77.26  University of Minnesota shall provide the education committees 
 77.27  of the legislature with recommendations to reduce the number of 
 77.28  statutory sections relating to higher education, including, but 
 77.29  not limited to, recommendations regarding statutory sections 
 77.30  that could be incorporated in board policies or procedures, and 
 77.31  regarding statutory sections that are obsolete. 
 77.32     Sec. 62.  [EARLY SEPARATION INCENTIVES.] 
 77.33     Subdivision 1.  [EMPLOYER PARTICIPATION; HIGHER EDUCATION 
 77.34  AGENCIES.] (a) In order to minimize the disruptive effects of 
 77.35  layoffs or reorganization attributable to the merger of the 
 77.36  state universities, community colleges, and technical colleges, 
 78.1   and the restructuring of the higher education coordinating 
 78.2   board, employees of the higher education coordinating board, the 
 78.3   state university, community college, and technical college 
 78.4   systems, and employees of local school districts, joint 
 78.5   technical districts, and intermediate districts assigned to a 
 78.6   technical college position, who are employed in positions that 
 78.7   are to be eliminated in the merger and restructuring, as 
 78.8   certified by the chancellor of the higher education board or the 
 78.9   executive director of the higher education coordinating board, 
 78.10  are entitled to elect an early separation incentive set forth in 
 78.11  subdivision 3. 
 78.12     (b) The higher education board and the higher education 
 78.13  coordinating board must determine those specific positions to be 
 78.14  permanently eliminated as part of the merger or restructuring 
 78.15  and identify the employees who may elect one of the early 
 78.16  separation incentives established by this section. 
 78.17     Subd. 2.  [ELIGIBILITY.] A person employed by the employing 
 78.18  units identified in subdivision 1 is eligible to elect the 
 78.19  incentive if the person: 
 78.20     (1) is an employee of the higher education coordinating 
 78.21  board, a state university, community college, or technical 
 78.22  college, or an administrative employee of a local school 
 78.23  district, joint technical district and intermediate district 
 78.24  assigned to a technical college position whose position is to be 
 78.25  eliminated; 
 78.26     (2) is at least age 55 but is not yet age 65; 
 78.27     (3) is employed in a permanent position and in active work 
 78.28  status at the time the incentive is elected; 
 78.29     (4) upon retirement, termination, or separation is 
 78.30  immediately eligible for a retirement annuity from a defined 
 78.31  benefit Minnesota public employee pension plan or a distribution 
 78.32  from a defined contribution Minnesota public employee pension 
 78.33  plan; 
 78.34     (5) retires, separates, or is terminated from an eligible 
 78.35  position after June 30, 1994, but before July 1, 1996; and 
 78.36     (6) has been certified by the chancellor of the higher 
 79.1   education board or the executive director of the higher 
 79.2   education coordinating board as eligible to elect an early 
 79.3   separation incentive. 
 79.4      Subd. 3.  [INCENTIVES.] (a) Eligible employees may elect 
 79.5   one of the following incentives but may not elect both.  
 79.6      (b) Retirement under this section means permanent 
 79.7   separation or termination from employment with or under the 
 79.8   control of the higher education board, the higher education 
 79.9   coordinating board, or the higher education systems to be merged.
 79.10     (c) Employees who separate, terminate, or retire with the 
 79.11  early retirement incentive under paragraph (e) may not be 
 79.12  rehired by the state in any employment position under the 
 79.13  control of the higher education board or the higher education 
 79.14  coordinating board. 
 79.15     (d) An eligible employee who receives a termination notice 
 79.16  after July 1, 1994, may elect to take a six-month retraining 
 79.17  leave in order to complete a course of study that is approved by 
 79.18  the higher education board or the higher education coordinating 
 79.19  board and which is designed to prepare the employee to assume a 
 79.20  faculty position at a state university, community college, or 
 79.21  technical college.  The retraining leave must be at the full 
 79.22  salary level that the person received immediately before the 
 79.23  termination notice, including fringe benefits.  The leave must 
 79.24  be completed no later than June 30, 1996.  Employees who seek to 
 79.25  return to teaching must satisfy the qualifications established 
 79.26  by applicable collective bargaining agreements.  Any subsequent 
 79.27  faculty appointments must be in accordance with collective 
 79.28  bargaining agreements and policies of the higher education 
 79.29  board.  The individual's pretermination notice employment ceases 
 79.30  at the conclusion of the retraining leave.  Individual employee 
 79.31  eligibility for severance payments must be made in accordance 
 79.32  with the policies of the employing unit in effect at the time 
 79.33  the incentive was elected.  Notice of election of this incentive 
 79.34  must be made before April 1, 1996, on forms prescribed by the 
 79.35  higher education board. 
 79.36     (e) An eligible employee may elect the following instead of 
 80.1   the incentive in paragraph (d): 
 80.2      (1) state-paid hospital, medical, and dental insurance to 
 80.3   age 65.  An employee who retires, is terminated, or is separated 
 80.4   is eligible for single or dependent insurance coverages, 
 80.5   whichever applies, and any employer payments to which the person 
 80.6   was entitled immediately before retirement, termination, or 
 80.7   separation subject to any changes in coverage and employer and 
 80.8   employee payments through collective bargaining or personnel 
 80.9   plans in positions equivalent to the position from which the 
 80.10  employee retired, terminated, or separated.  The employee is not 
 80.11  eligible for employer-paid life insurance.  If the employee is 
 80.12  not yet age 65 at the time of retirement or separation, the 
 80.13  employee is eligible for employer-paid insurance under the 
 80.14  provisions of a personnel plan and has at least as many months 
 80.15  service with the current employer and as the number of months 
 80.16  the individual is under age 65 at the time of retirement; and 
 80.17     (2) if the eligible employee has at least 15 years of 
 80.18  combined service credit in a Minnesota public pension plan, a 
 80.19  one-time opportunity to purchase up to two years of service 
 80.20  credit in or to make not more than two years of additional 
 80.21  member contributions to the public pension plan that the 
 80.22  employee is a member of at the time of retirement or separation 
 80.23  as follows: 
 80.24     (i) Eligible employees may have the additional payment made 
 80.25  on the basis of the employee's base salary in the year of 
 80.26  separation as denoted in the salary schedule in the applicable 
 80.27  employer personnel policy and at the rate and in the manner 
 80.28  specified in section 352.04, 353.27, 354.42, or 354A.12, 
 80.29  whichever applies.  The employee payment must include interest 
 80.30  at the rate of 8.5 percent.  The employer shall make the 
 80.31  required employer contribution and employer additional 
 80.32  contribution to the retirement fund as specified in section 
 80.33  352.04, 353.27, 354.42, or 354A.12, whichever applies for an 
 80.34  employee who elects this option.  Both the required employee and 
 80.35  employer payments must be made to the fund before the employee's 
 80.36  date of retirement or separation, whichever is earlier. 
 81.1      (ii) Defined contribution plan members in plans established 
 81.2   by chapter 352D or 354B must have additional employee and 
 81.3   employer contributions made on the basis of the employee's base 
 81.4   salary in the year of retirement as denoted in the salary 
 81.5   schedule in the applicable employer personnel policy and at the 
 81.6   rate and in the manner specified in section 352D.04, subdivision 
 81.7   2, or 354B.04, as applicable.  The additional contributions must 
 81.8   be made before the employee's date of retirement or separation, 
 81.9   whichever is earlier. 
 81.10     Sec. 63.  [REVISOR INSTRUCTION.] 
 81.11     (a) In the next and subsequent editions of Minnesota 
 81.12  Statutes, the revisor shall renumber each section in column A 
 81.13  with the corresponding number in column B.  
 81.14            COLUMN A                    COLUMN B
 81.15            136.31                      136F.90
 81.16            136.31, subd. 7             136F.90, subd. 6
 81.17            136.32                      136F.91
 81.18            136.33                      136F.92
 81.19            136.34                      136F.93
 81.20            136.35                      136F.94
 81.21            136.36                      136F.95
 81.22            136.37                      136F.96
 81.23            136.38                      136F.97
 81.24            136.41, subd. 8             136F.98, subd. 1
 81.25            136.41, subd. 9             136F.98, subd. 2
 81.26            136.41, subd. 10            136F.98, subd. 3
 81.27            136E.01                     136F.02
 81.28            136E.02                     136F.03
 81.29            136E.021                    136F.04
 81.30            136E.03                     136F.05
 81.31            136E.04, subds. 1 and 3     136F.06
 81.32            136E.04, subd. 7            136F.20
 81.33            136E.04, subd. 8            136F.47
 81.34            136E.05                     136F.52
 81.35            136E.31                     136F.41
 81.36            136E.525                    136F.22
 82.1             136E.692                    136F.66
 82.2      (b) In the next and subsequent editions of Minnesota 
 82.3   Statutes, the revisor shall correct all cross-references to 
 82.4   sections renumbered, recodified, or repealed in sections 1 to 64.
 82.5      Sec. 64.  [REPEALER.] 
 82.6      Minnesota Statutes 1994, sections 15.38, subdivision 4; 
 82.7   136.01; 136.015; 136.017; 136.02; 136.03; 136.031; 136.036; 
 82.8   136.045; 136.065; 136.07; 136.09; 136.10; 136.11; 136.111; 
 82.9   136.12; 136.13; 136.14; 136.141; 136.142; 136.143; 136.144; 
 82.10  136.145; 136.146; 136.147; 136.17; 136.171; 136.172; 136.18; 
 82.11  136.19; 136.20; 136.21; 136.22; 136.232; 136.24; 136.25; 
 82.12  136.261; 136.27; 136.31; 136.311; 136.32; 136.33; 136.34; 
 82.13  136.35; 136.36; 136.37; 136.38; 136.40; 136.41; 136.42; 136.43; 
 82.14  136.44; 136.45; 136.46; 136.47; 136.48; 136.49; 136.50; 136.501; 
 82.15  136.502; 136.503; 136.504; 136.505; 136.506; 136.507; 136.55; 
 82.16  136.56; 136.57; 136.58; 136.60; 136.6011; 136.602; 136.603; 
 82.17  136.61; 136.62; 136.621; 136.622; 136.63; 136.65; 136.651; 
 82.18  136.653; 136.67; 136.70; 136.71; 136.72; 136.88; 136.90; 
 82.19  136C.01; 136C.02; 136C.03; 136C.04; 136C.041; 136C.042; 
 82.20  136C.043; 136C.044; 136C.05; 136C.06; 136C.07; 136C.075; 
 82.21  136C.08; 136C.13; 136C.15; 136C.17; 136C.31; 136C.34; 136C.41; 
 82.22  136C.411; 136C.43; 136C.44; 136C.50; 136C.51; 136C.60; 136C.61; 
 82.23  136C.62; 136C.63; 136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 
 82.24  136C.69; 136C.70; 136C.71; 136C.75; 136E.04, subdivisions 2, 4, 
 82.25  5, and 6; 136E.395; and Laws 1994, chapter 532, article 6, 
 82.26  section 12, paragraph (a), are repealed. 
 82.27     Sec. 65.  [EFFECTIVE DATE.] 
 82.28     Sections 1 to 64 are effective July 1, 1995.