1.1                          A bill for an act 
  1.2             relating to higher education; Minnesota state colleges 
  1.3             and universities; modifying the state share for 
  1.4             certain estimated expenditures; modifying collection 
  1.5             procedures for certain fees; providing for certain 
  1.6             purchases made and contracts entered into by the board 
  1.7             of trustees; clarifying tuition refund policy for 
  1.8             certain students; abolishing certain reporting 
  1.9             requirements; deleting obsolete references; making 
  1.10            various clarifying and technical changes; amending 
  1.11            Minnesota Statutes 2000, sections 135A.031, 
  1.12            subdivision 2; 135A.52, subdivision 1; 136F.13; 
  1.13            136F.581, subdivision 4, by adding subdivisions; 
  1.14            137.10; 169.966; 354.094, subdivision 2; 354.69; 
  1.15            356.24, subdivision 1; proposing coding for new law in 
  1.16            Minnesota Statutes, chapter 136F; repealing Minnesota 
  1.17            Statutes 2000, section 135A.06, subdivision 1; Laws 
  1.18            1994, chapter 643, section 66. 
  1.19  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.20     Section 1.  Minnesota Statutes 2000, section 135A.031, 
  1.21  subdivision 2, is amended to read: 
  1.22     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
  1.23  state share of the estimated expenditures for instruction shall 
  1.24  vary for some categories of students, as designated in this 
  1.25  subdivision. 
  1.26     (a) The state must provide at least 67 percent of the 
  1.27  estimated expenditures for: 
  1.28     (1) students who resided in the state for at least one 
  1.29  calendar year prior to applying for admission or dependent 
  1.30  students whose parent or legal guardian resides in Minnesota at 
  1.31  the time the student applies; 
  1.32     (2) Minnesota residents who can demonstrate that they were 
  2.1   temporarily absent from the state without establishing residency 
  2.2   elsewhere; 
  2.3      (3) residents of other states or provinces who are 
  2.4   attending a Minnesota institution under a tuition reciprocity 
  2.5   agreement; and 
  2.6      (4) students who have been in Minnesota as migrant 
  2.7   farmworkers, as defined in the Code of Federal Regulations, 
  2.8   title 20, section 633.104, over a period of at least two years 
  2.9   immediately before admission or readmission to a Minnesota 
  2.10  public post-secondary institution, or students who are 
  2.11  dependents of such migrant farmworkers. 
  2.12     (b) The definition of full year equivalent for purposes of 
  2.13  the formula calculations in this chapter is twice the normal 
  2.14  value for the following enrollments: 
  2.15     (1) students who are concurrently enrolled in a public 
  2.16  secondary school and for whom the institution is receiving any 
  2.17  compensation under the Post-Secondary Enrollment Options Act; 
  2.18  and 
  2.19     (2) students enrolled under the student exchange program of 
  2.20  the Midwest Compact. 
  2.21     (c) The state may not provide any of the estimated 
  2.22  expenditures for undergraduate students (1) who do not meet the 
  2.23  residency criteria under paragraph (a), or (2) who have 
  2.24  completed, without receiving a baccalaureate degree, 48 or more 
  2.25  quarter credits or the equivalent, applicable toward the degree, 
  2.26  beyond the number required for a baccalaureate in their major. 
  2.27  Credits for courses in which a student received a grade of "F" 
  2.28  or "W" shall be counted toward this maximum, as if the credits 
  2.29  had been earned. 
  2.30     Sec. 2.  Minnesota Statutes 2000, section 135A.52, 
  2.31  subdivision 1, is amended to read: 
  2.32     Subdivision 1.  [FEES AND TUITION.] Except for an optional 
  2.33  administration fee established as determined by the governing 
  2.34  board at a level to recover costs, to be collected only when a 
  2.35  course is taken for credit, a senior citizen who is a legal 
  2.36  resident of Minnesota is entitled without payment of tuition or 
  3.1   activity fees to attend courses offered for credit, audit any 
  3.2   courses offered for credit, or enroll in any noncredit adult 
  3.3   vocational education courses in any state supported institution 
  3.4   of higher education in Minnesota when space is available after 
  3.5   all tuition-paying students have been accommodated.  For the 
  3.6   purposes of this section and section 135A.51, the term 
  3.7   "noncredit adult vocational education courses" shall not include 
  3.8   those adult vocational education courses designed and offered 
  3.9   specifically and exclusively for senior citizens.  
  3.10     The provisions of this section and section 135A.51 do not 
  3.11  apply to noncredit courses designed and offered by the 
  3.12  University of Minnesota, and the Minnesota state colleges and 
  3.13  universities specifically and exclusively for senior citizens.  
  3.14  Senior citizens enrolled under the provisions of this section 
  3.15  and section 135A.51 shall not be included by such institutions 
  3.16  in their computation of full-time equivalent students when 
  3.17  requesting staff or appropriations.  The enrollee shall pay 
  3.18  laboratory or material fees. 
  3.19     Sec. 3.  Minnesota Statutes 2000, section 136F.13, is 
  3.20  amended to read: 
  3.21     136F.13 [METROPOLITAN STATE UNIVERSITY.] 
  3.22     Subdivision 1.  [OPERATION.] The state university board 
  3.23  shall operate an educational program for a state university 
  3.24  center as organized in the seven county metropolitan area.  The 
  3.25  center may operate in facilities acquired through the 
  3.26  commissioner of administration by gift or lease. The faculty and 
  3.27  staff of the state university system shall provide assistance in 
  3.28  developing curricular and educational programs for the 
  3.29  university. 
  3.30     Subd. 2.  [TUITION RECEIPTS.] Metropolitan state university 
  3.31  may deposit tuition receipts received during the final quarter 
  3.32  of each year in a suspense account.  The balance in that account 
  3.33  shall not cancel on June 30 but shall be available in the next 
  3.34  fiscal year. 
  3.35     Sec. 4.  Minnesota Statutes 2000, section 136F.581, 
  3.36  subdivision 4, is amended to read: 
  4.1      Subd. 4.  [CONSULTANT, PROFESSIONAL, OR TECHNICAL 
  4.2   SERVICES.] (a) The board shall develop policies for entering 
  4.3   into contracts for consultant, professional, or technical 
  4.4   services, other than instructional services.  The policies must 
  4.5   allow each college and university the authority to enter into 
  4.6   contracts for professional or technical services up to $15,000 
  4.7   without board approval.  The board may allow a college or 
  4.8   university authority to enter into contracts for professional or 
  4.9   technical services over $15,000 without receiving board 
  4.10  approval. A purchase order can be used for consultant, 
  4.11  professional, or technical contracts that do not exceed $1,000 
  4.12  in total compensation. 
  4.13     (b) Each college and university, in consultation with the 
  4.14  system office, shall develop procedures to enter into contracts 
  4.15  for consultant, professional, or technical services consistent 
  4.16  with board policies and system procedures. 
  4.17     (c) The policies and procedures developed by the board and 
  4.18  by each college and university for professional or technical 
  4.19  service contracts must be done in consultation with employees 
  4.20  and their exclusive bargaining representatives and must address 
  4.21  topics such as employee protections, information availability 
  4.22  and reporting, conflict of interest, and renewal restrictions. 
  4.23     Sec. 5.  Minnesota Statutes 2000, section 136F.581, is 
  4.24  amended by adding a subdivision to read: 
  4.25     Subd. 5.  [EDUCATIONAL PROFESSIONAL OR TECHNICAL SERVICES.] 
  4.26  Educational professional or technical services contracts are for 
  4.27  instructional services.  A purchase order can be used for 
  4.28  educational professional or technical services contracts that do 
  4.29  not exceed $1,000 in total compensation. 
  4.30     Sec. 6.  Minnesota Statutes 2000, section 136F.581, is 
  4.31  amended by adding a subdivision to read: 
  4.32     Subd. 6.  [LEASE, RENTAL, AND INSTALLMENT PURCHASES AND 
  4.33  AGREEMENTS.] (a) The board is authorized to enter into true 
  4.34  leases, lease purchases, master leases, third-party leasing, 
  4.35  rentals, or installment purchases and agreements for the use or 
  4.36  acquisition, whichever is applicable, of real or personal 
  5.1   property for periods not exceeding the anticipated useful life 
  5.2   of the items acquired unless otherwise prohibited by law. 
  5.3      (b) If the amount of contract for the rental of equipment 
  5.4   is estimated to be $60,000 or less, the contract may, in the 
  5.5   discretion of the state colleges and universities, be made by 
  5.6   direct negotiation by obtaining two or more quotations for the 
  5.7   rental when possible and without advertising for bids or 
  5.8   otherwise complying with the requirements of competitive 
  5.9   bidding.  All quotations shall be kept on file for a period of 
  5.10  at least one year after their receipt.  
  5.11     Sec. 7.  Minnesota Statutes 2000, section 136F.581, is 
  5.12  amended by adding a subdivision to read: 
  5.13     Subd. 7.  [EXCEPTION FOR FEDERAL CONTRACTS.] 
  5.14  Notwithstanding any law to the contrary, the board may, when 
  5.15  required by a federal agency entering into an intergovernmental 
  5.16  contract, negotiate contract terms providing for full or partial 
  5.17  prepayment to the federal agency before work is performed or 
  5.18  services are provided. 
  5.19     Sec. 8.  Minnesota Statutes 2000, section 136F.581, is 
  5.20  amended by adding a subdivision to read: 
  5.21     Subd. 8.  [FEDERAL AGENCY PRICE SCHEDULES.] The board may, 
  5.22  instead of soliciting quotes or bids, contract for purchases 
  5.23  with suppliers who have published schedules of prices effective 
  5.24  for sales to any federal agency.  These contracts may be entered 
  5.25  into, regardless of the amount of the purchase price, if the 
  5.26  board considers them advantageous and if the purchase price of 
  5.27  all the commodities purchased under the contract do not exceed 
  5.28  the price specified by the schedule. 
  5.29     Sec. 9.  [136F.701] [REFUND OF TUITION.] 
  5.30     (a) Any student who is a resident of the state, has 
  5.31  enrolled in the state colleges and universities and paid tuition 
  5.32  for the course, and who, prior to the termination of the school 
  5.33  year for which the tuition was paid, enlisted or has been 
  5.34  inducted into the military services of the United States, either 
  5.35  voluntarily or pursuant to the present selective service law, is 
  5.36  entitled to the refund of all tuition paid for which credit 
  6.1   cannot properly be given.  
  6.2      (b) The administrative officers of the state colleges and 
  6.3   universities shall refund to the students any tuition so paid.  
  6.4   Any student making application for refund of any paid tuition 
  6.5   shall furnish to the administrative officers of the state 
  6.6   colleges and universities a certificate from the proper officers 
  6.7   reciting the fact of the enlistment or the induction of the 
  6.8   student into the military service of the United States. 
  6.9      Sec. 10.  Minnesota Statutes 2000, section 137.10, is 
  6.10  amended to read: 
  6.11     137.10 [REFUND OF TUITION TO STUDENTS IN CERTAIN CASES.] 
  6.12     Any student who, being a resident of the state, has 
  6.13  enrolled to pursue any course in the University of Minnesota or 
  6.14  any state university and paid tuition for the course, and who, 
  6.15  prior to the termination of the school year for which the 
  6.16  tuition was paid, enlisted or has been inducted into the 
  6.17  military services of the United States, either voluntarily or 
  6.18  pursuant to the present selective service law, is entitled to 
  6.19  the refund of all tuition paid for which credit cannot properly 
  6.20  be given.  
  6.21     The administrative officers of the University of Minnesota 
  6.22  and of the universities or institutions shall refund to the 
  6.23  students any tuition so paid.  Any student making application 
  6.24  for refund of any paid tuition shall furnish to the 
  6.25  administrative officers of the University of Minnesota or of the 
  6.26  universities a certificate from the proper officers reciting the 
  6.27  fact of the enlistment or the induction of the student into the 
  6.28  military service of the United States. 
  6.29     Sec. 11.  Minnesota Statutes 2000, section 169.966, is 
  6.30  amended to read: 
  6.31     169.966 [STATE UNIVERSITY BOARD TO REGULATE TRAFFIC.] 
  6.32     Subdivision 1.  [AUTHORITY.] The state university board of 
  6.33  trustees of the Minnesota state colleges and universities may 
  6.34  from time to time make, adopt, and enforce such rules or 
  6.35  ordinances not inconsistent with this chapter, as it may find 
  6.36  expedient or necessary relating to the regulation of traffic and 
  7.1   parking upon parking facilities and private roads and roadways 
  7.2   situated on property owned, leased, occupied or operated by 
  7.3   state universities. 
  7.4      Subd. 1a.  [PARKING FACILITIES.] The state university board 
  7.5   of trustees may establish rents, charges or fees for the use of 
  7.6   parking facilities owned, leased, occupied, or operated by the 
  7.7   state university board.  The money collected by the board as 
  7.8   rents, charges or fees in accordance with this subdivision shall 
  7.9   be deposited in the university activity fund and is annually 
  7.10  appropriated to the state university board of trustees for state 
  7.11  university purposes and to maintain and operate parking lots and 
  7.12  parking facilities. 
  7.13     Subd. 2.  [PETTY MISDEMEANOR.] Any person violating such 
  7.14  rule or ordinance shall be guilty of a petty misdemeanor and 
  7.15  subject to the provisions of sections 169.891 and 169.90, 
  7.16  subdivision 1. 
  7.17     Subd. 3.  [PROSECUTION.] The prosecution may be before a 
  7.18  district court having jurisdiction over the place where the 
  7.19  violation occurs. 
  7.20     Subd. 4.  [ENFORCEMENT.] Every sheriff, constable, police 
  7.21  officer, or other peace officer shall see that all rules and 
  7.22  ordinances are obeyed and shall arrest and prosecute offenders. 
  7.23     Subd. 5.  [ENFORCEMENT POWERS.] The state university 
  7.24  board of trustees may appoint and employ, and fix the 
  7.25  compensation to be paid out of funds which may be available for 
  7.26  such purposes, persons who shall have and may exercise on 
  7.27  property owned, leased, or occupied by the state universities 
  7.28  the same powers of arrest for violation of rules or ordinances 
  7.29  adopted by the board as possessed by a sheriff, constable, 
  7.30  police officer, or peace officer. 
  7.31     Subd. 6.  [JUDICIAL NOTICE.] All persons shall take notice 
  7.32  of such rules and ordinances without pleading and proof of the 
  7.33  same. 
  7.34     Subd. 7.  [NOTICE, HEARING, FILING, AND EFFECT.] (a) 
  7.35  The state university board of trustees shall fix a date for a 
  7.36  public hearing on the adoption of any such proposed rule or 
  8.1   ordinance.  Notice of such hearing shall be published in a legal 
  8.2   newspaper in the county in which the property affected by the 
  8.3   rule or ordinance is located.  The publication shall be at least 
  8.4   15 days and not more than 45 days before the date of the hearing.
  8.5      (b) If, after the public hearing, the proposed rule or 
  8.6   ordinance shall be adopted by a majority of the members of the 
  8.7   board, the same shall be considered to have been enacted by the 
  8.8   board.  A copy of the same shall be signed by the president and 
  8.9   filed with the county recorder of each county where the rule or 
  8.10  ordinance shall be in effect, together with proof of 
  8.11  publication.  Upon such filing, the rule or ordinance, as the 
  8.12  case may be, shall thenceforth be in full force and effect. 
  8.13     Subd. 8.  [DELEGATION.] The state university board of 
  8.14  trustees may delegate its responsibilities under this section to 
  8.15  a state university president.  Actions of the president shall be 
  8.16  presumed to be those of the board.  The university president 
  8.17  shall file with the board president the results of any public 
  8.18  hearings and the subsequent adoption of any proposed rule or 
  8.19  ordinance enacted pursuant thereto.  
  8.20     Sec. 12.  Minnesota Statutes 2000, section 354.094, 
  8.21  subdivision 2, is amended to read: 
  8.22     Subd. 2.  [MEMBERSHIP; RETENTION.] Notwithstanding section 
  8.23  354.49, subdivision 4, clause (3), a member on extended leave 
  8.24  whose employee and employer contributions are paid into the fund 
  8.25  pursuant to subdivision 1 shall retain membership in the 
  8.26  association for as long as the contributions are paid, under the 
  8.27  same terms and conditions as if the member had continued to 
  8.28  teach in the district, the community college system, or the 
  8.29  Minnesota state university colleges and universities system. 
  8.30     Sec. 13.  Minnesota Statutes 2000, section 354.69, is 
  8.31  amended to read: 
  8.32     354.69 [INFORMATION SUPPLIED BY DISTRICT.] 
  8.33     Each school district covered by the provisions of this 
  8.34  chapter and the community college Minnesota state colleges and 
  8.35  state university systems universities system shall furnish to 
  8.36  the teachers retirement association all information and reports 
  9.1   deemed necessary by the executive director to administer the 
  9.2   provisions of section 354.66. 
  9.3      Sec. 14.  Minnesota Statutes 2000, section 356.24, 
  9.4   subdivision 1, is amended to read: 
  9.5      Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
  9.6   for a school district or other governmental subdivision or state 
  9.7   agency to levy taxes for, or contribute public funds to a 
  9.8   supplemental pension or deferred compensation plan that is 
  9.9   established, maintained, and operated in addition to a primary 
  9.10  pension program for the benefit of the governmental subdivision 
  9.11  employees other than: 
  9.12     (1) to a supplemental pension plan that was established, 
  9.13  maintained, and operated before May 6, 1971; 
  9.14     (2) to a plan that provides solely for group health, 
  9.15  hospital, disability, or death benefits; 
  9.16     (3) to the individual retirement account plan established 
  9.17  by chapter 354B; 
  9.18     (4) to a plan that provides solely for severance pay under 
  9.19  section 465.72 to a retiring or terminating employee; 
  9.20     (5) for employees other than personnel employed by the 
  9.21  state university board or the community college board and 
  9.22  covered by the board of trustees of the Minnesota state colleges 
  9.23  and universities and covered under the higher education 
  9.24  supplemental retirement plan under chapter 354C, if provided for 
  9.25  in a personnel policy of the public employer or in the 
  9.26  collective bargaining agreement between the public employer and 
  9.27  the exclusive representative of public employees in an 
  9.28  appropriate unit, in an amount matching employee contributions 
  9.29  on a dollar for dollar basis, but not to exceed an employer 
  9.30  contribution of $2,000 a year per employee; 
  9.31     (i) to the state of Minnesota deferred compensation plan 
  9.32  under section 352.96; or 
  9.33     (ii) in payment of the applicable portion of the 
  9.34  contribution made to any investment eligible under section 
  9.35  403(b) of the Internal Revenue Code, if the employing unit has 
  9.36  complied with any applicable pension plan provisions of the 
 10.1   Internal Revenue Code with respect to the tax-sheltered annuity 
 10.2   program during the preceding calendar year; or 
 10.3      (6) for personnel employed by the state university board or 
 10.4   the community college board of trustees of the Minnesota state 
 10.5   colleges and universities and not covered by clause (5), to the 
 10.6   supplemental retirement plan under chapter 354C, if provided for 
 10.7   in a personnel policy or in the collective bargaining agreement 
 10.8   of the public employer with the exclusive representative of the 
 10.9   covered employees in an appropriate unit, in an amount matching 
 10.10  employee contributions on a dollar for dollar basis, but not to 
 10.11  exceed an employer contribution of $2,700 a year for each 
 10.12  employee.  
 10.13     Sec. 15.  [REPEALER.] 
 10.14     (a) Minnesota Statutes 2000, section 135A.06, subdivision 
 10.15  1, is repealed. 
 10.16     (b) Laws 1994, chapter 643, section 66, is repealed. 
 10.17     Sec. 16.  [EFFECTIVE DATE.] 
 10.18     This act is effective the day following final enactment.