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             services office, 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; modifying state 
  1.8             appropriations for certain enrollments; making school 
  1.9             districts responsible for payment of certain costs; 
  1.10            modifying collection procedures for certain fees; 
  1.11            adjusting assigned family responsibility; modifying 
  1.12            grant provisions; providing for acquisition of certain 
  1.13            facilities by the board of trustees; clarifying 
  1.14            tuition refund policy for certain students; requiring 
  1.15            a single assessment plan to be submitted to the 
  1.16            legislature; deleting obsolete references; making 
  1.17            various technical and clarifying changes; amending 
  1.18            Minnesota Statutes 2000, sections 135A.031, 
  1.19            subdivision 2; 135A.52, subdivision 1; 136A.101, 
  1.20            subdivision 5a; 136A.121, subdivisions 6, 9; 
  1.21            136A.1211; 136A.125, subdivision 4; 136F.13; 136F.60, 
  1.22            subdivision 2; 137.10; 169.966; 354.094, subdivision 
  1.23            2; 354.69; 356.24, subdivision 1; proposing coding for 
  1.24            new law in Minnesota Statutes, chapters 135A; 136F; 
  1.25            repealing Minnesota Statutes 2000, section 135A.081. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27                             ARTICLE 1 
  1.28                           APPROPRIATIONS 
  1.29  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.30     The sums in the columns marked "APPROPRIATIONS" are 
  1.31  appropriated from the general fund, or other named fund, to the 
  1.32  agencies and for the purposes specified in this article.  The 
  1.33  listing of an amount under the figure "2001" or "2002" or "2003" 
  1.34  in this article indicates that the amount is appropriated to be 
  1.35  available for the fiscal year ending June 30, 2001, June 30, 
  2.1   2002, or June 30, 2003, respectively.  "The first year" is 
  2.2   fiscal year 2002.  "The second year" is fiscal year 2003.  "The 
  2.3   biennium" is fiscal years 2002 and 2003. 
  2.4                           SUMMARY BY FUND 
  2.5               2001          2002           2003       02-03 TOTAL
  2.6   General $50,000,000 $1,377,032,000 $1,524,121,000 $2,901,153,000
  2.7   Health Care
  2.8   Access                  2,537,000      2,537,000      5,074,000
  2.9                    SUMMARY BY AGENCY - ALL FUNDS
  2.10              2001          2002          2003     02-03 TOTAL
  2.11  Higher Education Services Office
  2.12             281,000    163,702,000    171,166,000    334,868,000
  2.13  Board of Trustees of the Minnesota
  2.14  State Colleges and Universities
  2.15          33,059,000    578,938,000    659,575,000  1,238,513,000
  2.16  Board of Regents of the University
  2.17  of Minnesota
  2.18          16,660,000    635,104,000    693,928,000  1,329,032,000
  2.19  Mayo Medical Foundation
  2.20            -0-           1,825,000      1,989,000      3,814,000
  2.21                                            APPROPRIATIONS 
  2.22                                         Available for the Year 
  2.23                                             Ending June 30 
  2.24                                            2002         2003 
  2.25  Sec. 2.  HIGHER EDUCATION
  2.26  SERVICES OFFICE
  2.27  Subdivision 1. Total
  2.28  Appropriation                        163,702,000    171,166,000 
  2.29    FY 2001  $281,000 
  2.30  The 2001 appropriation is on a one-time 
  2.31  basis for a rewrite of the state grant 
  2.32  program and is added to the 
  2.33  appropriation in Laws 1999, chapter 
  2.34  214, article 1, section 2, subdivision 
  2.35  9.  This appropriation does not cancel, 
  2.36  but is available until expended.  
  2.37  The amounts that may be spent from this 
  2.38  appropriation for each purpose are 
  2.39  specified in the following subdivisions.
  2.40  Subd. 2.  State Grants
  2.41      126,298,000       133,768,000
  2.42  If the appropriation in this 
  2.43  subdivision for either year is 
  2.44  insufficient, the appropriation for the 
  2.45  other year is available for it.  
  3.1   The legislature intends that the higher 
  3.2   education services office make full 
  3.3   grant awards in each year of the 
  3.4   biennium.  
  3.5   For the biennium, the private 
  3.6   institution tuition maximum shall be 
  3.7   $8,764 in the first year and $8,983 in 
  3.8   the second year for four-year 
  3.9   institutions and $6,744 in the first 
  3.10  year and $6,913 in the second year for 
  3.11  two-year institutions. 
  3.12  This appropriation contains money to 
  3.13  set the living and miscellaneous 
  3.14  expense allowance at $5,540 in the 
  3.15  first year and $5,679 in the second 
  3.16  year. 
  3.17  This appropriation contains money to 
  3.18  match scholarship grants made under the 
  3.19  President's Student Service Scholarship 
  3.20  program of the Corporation for National 
  3.21  Service to students attending Minnesota 
  3.22  high schools and who will attend a 
  3.23  Minnesota post-secondary institution.  
  3.24  Not more than one matching grant of 
  3.25  $500 may be made for each high school 
  3.26  per year.  
  3.27  Of the amounts appropriated in fiscal 
  3.28  years 2004 and 2005 for the child care 
  3.29  grant program, $2,150,000 in each year 
  3.30  shall be used to fund the grant at a 
  3.31  level of $2,860. 
  3.32  Of the amounts appropriated in fiscal 
  3.33  years 2004 and 2005 for the state grant 
  3.34  program, $450,000 in the first year is 
  3.35  for program software changes related to 
  3.36  state grant awards that reflect actual 
  3.37  tuition and fees. 
  3.38  Subd. 3.  Interstate Tuition
  3.39  Reciprocity
  3.40       5,250,000      5,250,000
  3.41  If the appropriation in this 
  3.42  subdivision for either year is 
  3.43  insufficient, the appropriation for the 
  3.44  other year is available to meet 
  3.45  reciprocity contract obligations. 
  3.46  Subd. 4.  State Work Study
  3.47      12,444,000     12,444,000
  3.48  Subd. 5.  Minitex and MnLINK
  3.49       6,768,000      6,693,000
  3.50  Subd. 6.  Learning Network of Minnesota
  3.51       6,679,000      6,679,000
  3.52  Subd. 7.  Income Contingent Loans
  3.53  The higher education services office 
  3.54  shall administer an income-contingent 
  3.55  loan repayment program to assist 
  4.1   graduates of Minnesota schools in 
  4.2   medicine, dentistry, pharmacy, 
  4.3   chiropractic medicine, public health, 
  4.4   and veterinary medicine, and Minnesota 
  4.5   residents graduating from optometry and 
  4.6   osteopathy programs.  Applicant data 
  4.7   collected by the office for this 
  4.8   program may be disclosed to a consumer 
  4.9   credit reporting agency under the same 
  4.10  conditions as those that apply to the 
  4.11  supplemental loan program under 
  4.12  Minnesota Statutes, section 136A.162.  
  4.13  No new applicants may be accepted after 
  4.14  June 30, 1995.  
  4.15  Subd. 8.  Edvest 
  4.16       1,520,000      1,520,000 
  4.17  Subd. 9.  Agency Administration
  4.18       4,743,000      4,812,000
  4.19  This appropriation includes money for 
  4.20  the Minnesota Minority Education 
  4.21  Partnership.  This appropriation 
  4.22  includes funding to foster 
  4.23  post-secondary attendance by providing 
  4.24  outreach services to historically 
  4.25  underserved groups of Minnesota 
  4.26  elementary and secondary students.  The 
  4.27  office may retain the entire 
  4.28  appropriation or contract with other 
  4.29  agencies or nonprofit organizations for 
  4.30  specific services in this effort. 
  4.31  The higher education services office 
  4.32  must make recommendations to the 2002 
  4.33  legislature regarding: 
  4.34  (1) the potential uses of any savings 
  4.35  from federal Pell grant changes; 
  4.36  (2) models for the creation of a state 
  4.37  merit scholarship program; 
  4.38  (3) a plan to reduce the cost of 
  4.39  reciprocity agreements while 
  4.40  maintaining access for Minnesota 
  4.41  students; and 
  4.42  (4) a plan to use new methods of 
  4.43  collaboration with education 
  4.44  institutions in neighboring states to 
  4.45  improve student access at lower cost, 
  4.46  including on-line learning.  
  4.47  The office must delineate the 
  4.48  advantages and disadvantages of 
  4.49  recommendations made in each of the 
  4.50  four areas. 
  4.51  Subd. 10.  Balances Forward 
  4.52  A balance in the first year under this 
  4.53  section does not cancel, but is 
  4.54  available for the second year. 
  4.55  Subd. 11.  Transfers 
  4.56  The higher education services office 
  5.1   may transfer unencumbered balances from 
  5.2   the appropriations in this section to 
  5.3   the state grant appropriation, the 
  5.4   interstate tuition reciprocity 
  5.5   appropriation, the child care 
  5.6   appropriation, and the state work study 
  5.7   appropriation. 
  5.8   Sec. 3.  BOARD OF TRUSTEES OF THE
  5.9   MINNESOTA STATE COLLEGES AND UNIVERSITIES
  5.10  Subdivision 1.  Total
  5.11  Appropriation                        578,938,000    659,575,000 
  5.12  FY 2001  $33,059,000
  5.13  The 2001 appropriation is added to the 
  5.14  appropriation in Laws 1999, chapter 
  5.15  214, article 1, section 3, subdivision 
  5.16  2.  Of this amount, $31,335,000 shall 
  5.17  be added to the base for fiscal years 
  5.18  2004 and 2005. 
  5.19  The amounts that may be spent from this 
  5.20  appropriation for each purpose are 
  5.21  specified in the following subdivisions.
  5.22  Subd. 2.  Estimated Expenditures and Appropriations 
  5.23  The legislature estimates that 
  5.24  instructional expenditures will be 
  5.25  $811,962,000 in the first year and 
  5.26  $871,575,000 in the second year. 
  5.27  The legislature estimates that 
  5.28  noninstructional expenditures will be 
  5.29  $72,382,000 in the first year and 
  5.30  $76,831,000 in the second year. 
  5.31  This appropriation includes $30,000 on 
  5.32  a one-time basis for a grant to 
  5.33  Alexandria technical college to help 
  5.34  support the science, technology, and 
  5.35  engineering preview summer camp for 
  5.36  girls. 
  5.37  This appropriation contains an increase 
  5.38  of $25,000 in fiscal year 2001 and 
  5.39  fiscal year 2003 for educational and 
  5.40  research programs at the central lakes 
  5.41  agricultural center. 
  5.42  This appropriation includes $11,715,000 
  5.43  for the leveraged equipment program. 
  5.44  This appropriation includes $1,000,000 
  5.45  on a one-time basis for course or 
  5.46  curriculum redesign that preserves or 
  5.47  improves the quality of instruction at 
  5.48  lower cost.  This appropriation must be 
  5.49  used for redesign that will enable cost 
  5.50  reductions on a fully allocated basis 
  5.51  of at least 25 percent in the delivery 
  5.52  of the course or curriculum and provide 
  5.53  for recovery of the redesign 
  5.54  expenditures within five years.  The 
  5.55  board shall report to the appropriate 
  5.56  education committees of the legislature 
  5.57  by January 15, 2003, on the use of this 
  5.58  appropriation, including the fully 
  5.59  allocated cost of courses prior to 
  6.1   redesign, the fully allocated cost 
  6.2   after redesign, and projected uses of 
  6.3   the cost savings.  The board shall also 
  6.4   report on additional courses that could 
  6.5   be redesigned to achieve the cost 
  6.6   savings and cost recovery standards of 
  6.7   this section. 
  6.8   This appropriation includes an increase 
  6.9   of $158,000 in fiscal year 2001 and 
  6.10  fiscal year 2003 for the Arrowhead 
  6.11  University Center.  The Northeast 
  6.12  Higher Education District shall be the 
  6.13  fiscal agent for the Arrowhead 
  6.14  University Center. 
  6.15  This appropriation includes an increase 
  6.16  of $694,000 on a one-time basis to 
  6.17  support continued Northwest technical 
  6.18  college programs on the Red Lake, Leech 
  6.19  Lake, and White Earth reservations.  
  6.20  The board shall report to the 
  6.21  appropriate education committees of the 
  6.22  legislature by January 15, 2003, on 
  6.23  recommendations or proposed initiatives 
  6.24  to increase the efficiency of delivery 
  6.25  of college programs to the reservations.
  6.26  This appropriation includes $30,000 in 
  6.27  each year on a one-time basis for 
  6.28  Minnesota State University, Mankato for 
  6.29  the talented youth math program.  The 
  6.30  board shall report to the appropriate 
  6.31  education committees of the legislature 
  6.32  by July 1, 2002, on a plan to maintain 
  6.33  and expand the program to make it 
  6.34  available for students statewide.  The 
  6.35  plan shall include recommendations for 
  6.36  funding the program on a continuing 
  6.37  basis and shall identify potential 
  6.38  partner school districts. 
  6.39  This appropriation contains money for 
  6.40  regional technology centers, MnSAT, 
  6.41  expansion of the wide area network, and 
  6.42  data centers. 
  6.43  During the biennium, neither the board 
  6.44  nor campuses shall plan or develop 
  6.45  doctoral level programs or degrees 
  6.46  until after they have received the 
  6.47  recommendation of the house and senate 
  6.48  committees on education, finance, and 
  6.49  ways and means. 
  6.50  By January 1, 2002, the board must 
  6.51  implement the Minnesota transfer 
  6.52  curriculum at all state colleges and 
  6.53  universities.  
  6.54  Once a course has met the criteria 
  6.55  necessary for inclusion in the 
  6.56  Minnesota transfer curriculum in any 
  6.57  area of emphasis, the course must be 
  6.58  accepted for full credit in that area 
  6.59  of emphasis at all Minnesota state 
  6.60  colleges and universities. 
  6.61  By February 1, 2002, the board must 
  6.62  report on the transfer process between 
  6.63  MnSCU institutions and between MnSCU 
  7.1   institutions and other public and 
  7.2   private post-secondary institutions in 
  7.3   Minnesota.  The board also must review 
  7.4   and report on the transfer policies of 
  7.5   states with which Minnesota has 
  7.6   reciprocity agreements.  The higher 
  7.7   education services office is requested 
  7.8   to assist in the preparation of the 
  7.9   report. 
  7.10  By July 1, 2002, the board must publish 
  7.11  a student manual that identifies and 
  7.12  describes how general education courses 
  7.13  at two-year MnSCU institutions transfer 
  7.14  to state universities within the 
  7.15  Minnesota state colleges and 
  7.16  universities system. 
  7.17  In each year, the board of trustees 
  7.18  shall increase the percentage of the 
  7.19  total general fund expenditures for 
  7.20  direct instruction and academic 
  7.21  support, as reported in the federal 
  7.22  Integrated Postsecondary Education Data 
  7.23  System (IPEDS).  By February 15 of each 
  7.24  year, the board of trustees shall 
  7.25  report to the higher education finance 
  7.26  committees of the legislature the 
  7.27  percentage of total general fund 
  7.28  expenditures spent on direct 
  7.29  instruction and on academic support 
  7.30  during the previous fiscal year by 
  7.31  institution and for the system as a 
  7.32  whole. 
  7.33  During the biennium, technical and 
  7.34  consolidated colleges shall make use of 
  7.35  instructional advisory committees 
  7.36  consisting of employers, students, and 
  7.37  instructors.  The instructional 
  7.38  advisory committee shall be consulted 
  7.39  when a technical program is proposed to 
  7.40  be created, modified, or eliminated.  
  7.41  If a decision is made to eliminate a 
  7.42  program, a college shall adequately 
  7.43  notify students and make plans to 
  7.44  assist students affected by the closure.
  7.45  Subd. 3.  Accountability 
  7.46  (a) By February 1 of each even-numbered 
  7.47  year, the board must submit a report to 
  7.48  the chairs of the appropriate education 
  7.49  committees of the legislature 
  7.50  describing the following:  
  7.51  (1) how it allocated the state 
  7.52  appropriations made to the system in 
  7.53  the omnibus higher education funding 
  7.54  bill in the odd-numbered year; 
  7.55  (2) the amount of money reallocated 
  7.56  internally to support the system's 
  7.57  priorities; 
  7.58  (3) the tuition rates and fees set by 
  7.59  the board; and 
  7.60  (4) the amount of state money used to 
  7.61  leverage money from other funding 
  7.62  sources and the level of support from 
  8.1   those sources. 
  8.2   (b) The appropriation contained in this 
  8.3   section includes $1,000,000 to be 
  8.4   released to the board upon submission 
  8.5   to the department of finance and the 
  8.6   chairs of the appropriate education 
  8.7   committees of the legislature of a 
  8.8   learning quality and productivity 
  8.9   improvement plan.  The plan must be 
  8.10  designed to improve the quality and 
  8.11  reduce the cost of instruction.  All 
  8.12  productivity improvements identified in 
  8.13  the plan must enhance the quality of 
  8.14  undergraduate student learning and 
  8.15  reduce cost.  The plan must identify: 
  8.16  (1) ten undergraduate degree programs 
  8.17  determined to be of highest priority to 
  8.18  the system and the cost necessary to 
  8.19  advance each program to be a center of 
  8.20  excellence; 
  8.21  (2) undergraduate degree programs with 
  8.22  relatively low enrollment as measured 
  8.23  by the number of majors and the number 
  8.24  of student credit hours generated, 
  8.25  describing the cost savings that could 
  8.26  be realized if the programs were phased 
  8.27  out; 
  8.28  (3) undergraduate degree programs in 
  8.29  which quality and productivity 
  8.30  improvements could be achieved through 
  8.31  increased collaboration with public and 
  8.32  private post-secondary institutions in 
  8.33  and outside of Minnesota; 
  8.34  (4) curricular, organizational, or 
  8.35  staffing changes that yield 
  8.36  productivity improvements in the 
  8.37  delivery of courses; 
  8.38  (5) a set of indicators that can be 
  8.39  used longitudinally to measure 
  8.40  improvements in student success; and 
  8.41  (6) improvements in policies and 
  8.42  practices to enhance the recruitment 
  8.43  and retention of students and faculty 
  8.44  of color.  
  8.45  The plan must be submitted to the 
  8.46  department of finance and the chairs of 
  8.47  the appropriate education committees of 
  8.48  the house and senate by February 1, 
  8.49  2002, and will be used in subsequent 
  8.50  years to evaluate the performance of 
  8.51  the system. 
  8.52  Subd. 4.  Technical Program Development Grants
  8.53  A program is created to award 
  8.54  competitive grants to campuses or 
  8.55  campus faculty for the development of 
  8.56  new and innovative technical 
  8.57  certificate, diploma, and degree 
  8.58  programs for emerging fields of 
  8.59  employment at technical colleges or 
  8.60  consolidated community and technical 
  8.61  colleges, or development of 
  9.1   transfer-oriented degrees such as the 
  9.2   bachelor of applied science at state 
  9.3   universities.  To be eligible for a 
  9.4   grant, a college must demonstrate that 
  9.5   it has allocated at least one-half of 
  9.6   one percent of its share of the state 
  9.7   general fund appropriation in the prior 
  9.8   fiscal year for new program development.
  9.9   Priority shall be placed on grant 
  9.10  projects for program development that 
  9.11  demonstrates significant linkage with 
  9.12  industry and promotes economic 
  9.13  development in the state.  Grants may 
  9.14  be for any amount up to $500,000 and 
  9.15  shall be awarded through a process 
  9.16  developed by the board.  The board 
  9.17  shall set up a review panel to judge 
  9.18  the proposals.  The panel shall include 
  9.19  faculty, administration, students, and 
  9.20  at least one member representing 
  9.21  industry.  Of the amounts appropriated 
  9.22  in fiscal years 2004 and 2005, 
  9.23  $1,500,000 in each year shall be used 
  9.24  to fund this program. 
  9.25  Sec. 4.  BOARD OF REGENTS OF THE 
  9.26  UNIVERSITY OF MINNESOTA 
  9.27  Subdivision 1.  Total
  9.28  Appropriation                        635,104,000    693,928,000 
  9.29  FY 2001  $16,660,000
  9.30  The 2001 appropriation is added to the 
  9.31  appropriation in Laws 1999, chapter 
  9.32  214, article 1, section 4, subdivision 
  9.33  2.  Of this amount, $15,660,000 shall 
  9.34  be added to the base for fiscal years 
  9.35  2004 and 2005. 
  9.36  The amounts that may be spent from this 
  9.37  appropriation for each purpose are 
  9.38  specified in the following subdivisions.
  9.39  After technical base adjustments for 
  9.40  fiscal years 2004 and 2005 have been 
  9.41  made, the base shall be increased by 
  9.42  $14,244,000 per year for the 2004-2005 
  9.43  biennium. 
  9.44  Subd. 2  Operations and
  9.45  Maintenance                          557,059,000    615,691,000 
  9.46  Estimated Expenditures 
  9.47  and Appropriations 
  9.48  The legislature estimates that 
  9.49  instructional expenditures will be 
  9.50  $503,058,000 in the first year and 
  9.51  $544,094,000 in the second year. 
  9.52  The legislature estimates that 
  9.53  noninstructional expenditures will be 
  9.54  $238,347,000 in the first year and 
  9.55  $252,962,000 in the second year.  
  9.56  This appropriation includes $1,000,000 
  9.57  on a one-time basis for course or 
  9.58  curriculum redesign that preserves or 
  9.59  improves the quality of instruction at 
 10.1   lower cost.  This appropriation must be 
 10.2   used for redesign that will enable cost 
 10.3   reductions on a fully allocated basis 
 10.4   of at least 25 percent in the delivery 
 10.5   of the course or curriculum and provide 
 10.6   for recovery of the redesign 
 10.7   expenditures within five years.  The 
 10.8   board shall report to the appropriate 
 10.9   education committees of the legislature 
 10.10  by January 15, 2003, on the use of this 
 10.11  appropriation, including the fully 
 10.12  allocated cost of courses prior to 
 10.13  redesign, the fully allocated cost 
 10.14  after redesign, and projected uses of 
 10.15  the cost savings.  The board is 
 10.16  requested to report on additional 
 10.17  courses that could be redesigned to 
 10.18  achieve the cost savings and cost 
 10.19  recovery standards of this section. 
 10.20  This appropriation contains $1,000,000 
 10.21  for the academic health center. 
 10.22  This appropriation contains money for 
 10.23  digital library technology and 
 10.24  infrastructure; technology investments, 
 10.25  including classroom technology 
 10.26  enhancements; interdisciplinary 
 10.27  academic initiatives; and investments 
 10.28  in health professional education. 
 10.29  Subd. 3.  Health Care Access Fund       2,537,000     2,537,000
 10.30  This appropriation is from the health 
 10.31  care access fund for primary care 
 10.32  education initiatives. 
 10.33  Subd. 4.  Special
 10.34  Appropriation                         75,508,000     75,700,000
 10.35  The amounts expended for each program 
 10.36  in the four categories of special 
 10.37  appropriations shall be stated in the 
 10.38  2003 biennial budget document. 
 10.39  (a) Agriculture and Extension Service 
 10.40      59,537,000     59,599,000
 10.41  This appropriation is for the 
 10.42  Agricultural Experiment Station, 
 10.43  Minnesota Extension Service, regional 
 10.44  agricultural and natural resources 
 10.45  sustainable development partnerships, 
 10.46  Minnesota Institute for Sustainable 
 10.47  Agriculture, and a rapid agricultural 
 10.48  response fund to conduct research and 
 10.49  educational programs to solve problems 
 10.50  affecting agricultural products and the 
 10.51  agricultural industry. 
 10.52  This appropriation includes money for 
 10.53  additional research on the improved 
 10.54  production of forage and turf seed, 
 10.55  soybean diseases, potato diseases, and 
 10.56  turkey respiratory disease control and 
 10.57  prevention.  This appropriation 
 10.58  includes money for the swine systems 
 10.59  program. 
 10.60  This appropriation includes money on a 
 11.1   one-time basis for a rural agricultural 
 11.2   sociologist position at the Morris 
 11.3   campus. 
 11.4   Any salary increases granted by the 
 11.5   University to personnel paid from the 
 11.6   Minnesota Extension appropriation must 
 11.7   not result in a reduction of the county 
 11.8   responsibility for the salary payments. 
 11.9   During the biennium, the University 
 11.10  shall maintain an advisory council 
 11.11  system for each experiment station.  
 11.12  The advisory councils must be broadly 
 11.13  representative of the range of size and 
 11.14  income distribution of farms and 
 11.15  agribusinesses and must not 
 11.16  disproportionately represent those from 
 11.17  the upper half of the size and income 
 11.18  distributions.  
 11.19  (b) Health Sciences 
 11.20       5,881,000      5,911,000
 11.21  This appropriation is for the rural 
 11.22  physicians associates program, the 
 11.23  Veterinary Diagnostic Laboratory, 
 11.24  health sciences research, dental care, 
 11.25  and the Biomedical Engineering Center. 
 11.26  (c) Institute of Technology  
 11.27       1,655,000      1,665,000
 11.28  This appropriation is for the 
 11.29  Geological Survey and the Talented 
 11.30  Youth Mathematics Program. 
 11.31  (d) System Specials 
 11.32       8,435,000      8,525,000
 11.33  This appropriation is for general 
 11.34  research, student loans matching money, 
 11.35  industrial relations education, Natural 
 11.36  Resources Research Institute, Center 
 11.37  for Urban and Regional Affairs, Bell 
 11.38  Museum of Natural History, and the 
 11.39  Humphrey exhibit. 
 11.40  This appropriation contains an increase 
 11.41  of $915,000 in each year for the 
 11.42  Natural Resources Research Institute. 
 11.43  Subd. 5.  Accountability 
 11.44  (a) By February 1 of each even-numbered 
 11.45  year, the board must submit a report to 
 11.46  the chairs of the appropriate education 
 11.47  committees of the legislature 
 11.48  describing the following:  
 11.49  (1) how it allocated the state 
 11.50  appropriations made to the system in 
 11.51  the omnibus higher education funding 
 11.52  bill in the odd-numbered year; 
 11.53  (2) the amount of money reallocated 
 11.54  internally to support the system's 
 11.55  priorities; 
 12.1   (3) the tuition rates and fees set by 
 12.2   the board; and 
 12.3   (4) the amount of state money used to 
 12.4   leverage money from other funding 
 12.5   sources and the level of support from 
 12.6   those sources. 
 12.7   (b) The appropriation contained in this 
 12.8   section includes $1,000,000 to be 
 12.9   released to the board upon submission 
 12.10  to the department of finance and the 
 12.11  chairs of the appropriate education 
 12.12  committees of the legislature of a 
 12.13  learning quality and productivity 
 12.14  improvement plan.  The plan must be 
 12.15  designed to improve the quality and 
 12.16  reduce the cost of instruction.  All 
 12.17  productivity improvements identified in 
 12.18  the plan must enhance the quality of 
 12.19  undergraduate student learning and 
 12.20  reduce cost.  The plan must identify: 
 12.21  (1) ten undergraduate degree programs 
 12.22  determined to be of highest priority to 
 12.23  the system and the cost necessary to 
 12.24  advance each program to be a center of 
 12.25  excellence; 
 12.26  (2) undergraduate degree programs with 
 12.27  relatively low enrollment as measured 
 12.28  by the number of majors and the number 
 12.29  of student credit hours generated, 
 12.30  describing the cost savings that could 
 12.31  be realized if the programs were phased 
 12.32  out; 
 12.33  (3) undergraduate degree programs in 
 12.34  which quality and productivity 
 12.35  improvements could be achieved through 
 12.36  increased collaboration with public and 
 12.37  private post-secondary institutions in 
 12.38  and outside of Minnesota; 
 12.39  (4) curricular, organizational, or 
 12.40  staffing changes that yield 
 12.41  productivity improvements in the 
 12.42  delivery of courses; 
 12.43  (5) a set of indicators that can be 
 12.44  used longitudinally to measure 
 12.45  improvements in student success; and 
 12.46  (6) improvements in policies and 
 12.47  practices to enhance the recruitment 
 12.48  and retention of students and faculty 
 12.49  of color.  
 12.50  The plan must be submitted to the 
 12.51  department of finance and the chairs of 
 12.52  the appropriate education committees of 
 12.53  the legislature by February 1, 2002, 
 12.54  and will be used in subsequent years to 
 12.55  evaluate the performance of the system. 
 12.56  (c) The Academic Health Center, in 
 12.57  cooperation with the department of 
 12.58  health, shall: 
 12.59  (1) develop new strategies for health 
 12.60  care delivery and professional training 
 13.1   in this state; 
 13.2   (2) develop new strategies to meet the 
 13.3   health care workforce needs in the 
 13.4   state; 
 13.5   (3) base these strategies on analysis 
 13.6   of the population's health status and 
 13.7   opportunities for its improvement; and 
 13.8   (4) ensure that the training of health 
 13.9   care professionals reflects the 
 13.10  changing racial and ethnic composition 
 13.11  of this state. 
 13.12  The Academic Health Center and 
 13.13  department of health shall report 
 13.14  progress on these goals to the chairs 
 13.15  of the appropriate education committees 
 13.16  of the legislature by July 1, 2002, and 
 13.17  on January 15 of each succeeding year 
 13.18  thereafter.  The initial report shall 
 13.19  include the extent to which progress on 
 13.20  these goals is achievable within 
 13.21  current budgets, and recommendations, 
 13.22  if any, on resources needed for full 
 13.23  implementation of these goals. 
 13.24  Sec. 5.  MAYO MEDICAL FOUNDATION 
 13.25  Subdivision 1.  Total
 13.26  Appropriation                           1,825,000       1,989,000
 13.27  The amounts that may be spent from this 
 13.28  appropriation for each purpose are 
 13.29  specified in the following subdivisions.
 13.30  Subd. 2.  Medical School
 13.31         666,000        699,000
 13.32  The state of Minnesota shall pay a 
 13.33  capitation of $15,125 in the first year 
 13.34  and $15,881 in the second year for each 
 13.35  student who is a resident of 
 13.36  Minnesota.  The appropriation may be 
 13.37  transferred between years of the 
 13.38  biennium to accommodate enrollment 
 13.39  fluctuations. 
 13.40  The legislature intends that during the 
 13.41  biennium the Mayo foundation use the 
 13.42  capitation money to increase the number 
 13.43  of doctors practicing in rural areas in 
 13.44  need of doctors.  
 13.45  Subd. 3.  Family Practice and
 13.46  Graduate Residency Program
 13.47         736,000        850,000
 13.48  The state of Minnesota provides a 
 13.49  capitation of $22,327 in the first year 
 13.50  and $22,996 in the second year for each 
 13.51  student.  The rural training program 
 13.52  capitation is $44,654 the first year 
 13.53  and $45,993 the second year. 
 13.54  Subd. 4.  St. Cloud Hospital-Mayo 
 13.55  Family Practice Residency Program 
 14.1          423,000        440,000
 14.2   This appropriation is to the Mayo 
 14.3   foundation to support 12 resident 
 14.4   physicians each year in the St. Cloud 
 14.5   Hospital-Mayo Family Practice Residency 
 14.6   program.  The program shall prepare 
 14.7   doctors to practice primary care 
 14.8   medicine in the rural areas of the 
 14.9   state.  It is intended that this 
 14.10  program will improve health care in 
 14.11  rural communities, provide affordable 
 14.12  access to appropriate medical care, and 
 14.13  manage the treatment of patients in a 
 14.14  more cost-effective manner. 
 14.15                             ARTICLE 2
 14.16                         RELATED PROVISIONS
 14.17     Section 1.  Minnesota Statutes 2000, section 135A.031, 
 14.18  subdivision 2, is amended to read: 
 14.19     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
 14.20  state share of the estimated expenditures for instruction shall 
 14.21  vary for some categories of students, as designated in this 
 14.22  subdivision. 
 14.23     (a) The state must provide at least 67 percent of the 
 14.24  estimated expenditures for: 
 14.25     (1) students who resided in the state for at least one 
 14.26  calendar year prior to applying for admission or dependent 
 14.27  students whose parent or legal guardian resides in Minnesota at 
 14.28  the time the student applies; 
 14.29     (2) Minnesota residents who can demonstrate that they were 
 14.30  temporarily absent from the state without establishing residency 
 14.31  elsewhere; 
 14.32     (3) residents of other states or provinces who are 
 14.33  attending a Minnesota institution under a tuition reciprocity 
 14.34  agreement; ~~and~~ 
 14.35     (4) students who have been in Minnesota as migrant 
 14.36  farmworkers, as defined in the Code of Federal Regulations, 
 14.37  title 20, section 633.104, over a period of at least two years 
 14.38  immediately before admission or readmission to a Minnesota 
 14.39  public post-secondary institution, or students who are 
 14.40  dependents of such migrant farmworkers; and 
 14.41     (5) persons who have been continuously employed full time 
 14.42  in the state who (i) were relocated to the state by the person's 
 15.1   current employer, or (ii) moved to the state for employment 
 15.2   purposes and, before moving and before applying for admission to 
 15.3   a public post-secondary institution, accepted a job in the 
 15.4   state, or students who are spouses or dependents of such persons.
 15.5      (b) The definition of full year equivalent for purposes of 
 15.6   the formula calculations in this chapter is twice the normal 
 15.7   value for the following enrollments: 
 15.8      (1) students who are concurrently enrolled in a public 
 15.9   secondary school and for whom the institution is receiving any 
 15.10  compensation under the Post-Secondary Enrollment Options Act; 
 15.11  and 
 15.12     (2) students enrolled under the student exchange program of 
 15.13  the Midwest Compact. 
 15.14     (c) The state may not provide any of the estimated 
 15.15  expenditures for undergraduate students (1) who do not meet the 
 15.16  residency criteria under paragraph (a), or (2) who have 
 15.17  completed, without receiving a baccalaureate degree, 48 or more 
 15.18  quarter credits or the equivalent, applicable toward the degree, 
 15.19  beyond the number required for a baccalaureate in their major. 
 15.20  Credits for courses in which a student received a grade of "F" 
 15.21  or "W" shall be counted toward this maximum, as if the credits 
 15.22  had been earned. 
 15.23     Sec. 2.  [135A.082] [DEVELOPMENTAL EDUCATION; PAYMENT OF 
 15.24  COSTS.] 
 15.25     Subdivision 1.  [HIGHER EDUCATION; STATE 
 15.26  APPROPRIATIONS.] Full-year equivalents generated by 
 15.27  developmental courses taken by students attending a Minnesota 
 15.28  public post-secondary institution within one year of graduating 
 15.29  from a Minnesota public high school may not be counted for the 
 15.30  purposes of calculating state appropriations under section 
 15.31  135A.031.  Full-year equivalents generated by developmental 
 15.32  courses taken by students who were English as a second language 
 15.33  students in high school or students who had an individual 
 15.34  education plan in high school are not subject to this section.  
 15.35  State appropriations will not be reduced if: 
 15.36     (1) by July 1, 2003, the percentage of public high school 
 16.1   graduates who enroll at a public post-secondary institution and 
 16.2   take one or more remedial courses does not exceed 15 percent as 
 16.3   reported under section 13.32, subdivision 3; and 
 16.4      (2) by July 1, 2005, the percentage of public high school 
 16.5   graduates who enroll at a public post-secondary institution and 
 16.6   take one or more remedial courses does not exceed five percent 
 16.7   as reported under section 13.32, subdivision 3.  
 16.8      Subd. 2.  [PAYMENT OF COSTS; SCHOOL DISTRICT.] All costs of 
 16.9   developmental courses, except tuition and fees in lieu of 
 16.10  tuition, paid by students attending a public post-secondary 
 16.11  institution within one year of graduating from a Minnesota 
 16.12  public high school must be paid by the school district that 
 16.13  operates the high school. 
 16.14     Subd. 3.  [EXCEPTIONS.] A school district is not 
 16.15  responsible for payment of costs under subdivision 2 if: 
 16.16     (1) the student attended the high school for less than the 
 16.17  two years preceding graduation; 
 16.18     (2) the percentage reductions in subdivision 1, clause (1) 
 16.19  or (2), have been achieved; or 
 16.20     (3) the school district has an agreement by July 1, 2002, 
 16.21  with a Minnesota public post-secondary institution to give 
 16.22  placement tests in high school, and the student passed the 
 16.23  recommended coursework addressing the deficiencies identified in 
 16.24  the placement tests.  School districts and public post-secondary 
 16.25  institutions may not charge students for the cost of the 
 16.26  placement tests. 
 16.27     Sec. 3.  Minnesota Statutes 2000, section 135A.52, 
 16.28  subdivision 1, is amended to read: 
 16.29     Subdivision 1.  [FEES AND TUITION.] Except for an optional 
 16.30  administration fee ~~established~~ as determined by the governing 
 16.31  board at a level to recover costs, to be collected only when a 
 16.32  course is taken for credit, a senior citizen who is a legal 
 16.33  resident of Minnesota is entitled without payment of tuition or 
 16.34  activity fees to attend courses offered for credit, audit any 
 16.35  courses offered for credit, or enroll in any noncredit adult 
 16.36  vocational education courses in any state supported institution 
 17.1   of higher education in Minnesota when space is available after 
 17.2   all tuition-paying students have been accommodated.  For the 
 17.3   purposes of this section and section 135A.51, the term 
 17.4   "noncredit adult vocational education courses" shall not include 
 17.5   those adult vocational education courses designed and offered 
 17.6   specifically and exclusively for senior citizens.  
 17.7      The provisions of this section and section 135A.51 do not 
 17.8   apply to noncredit courses designed and offered by the 
 17.9   University of Minnesota, and the Minnesota state colleges and 
 17.10  universities specifically and exclusively for senior citizens.  
 17.11  Senior citizens enrolled under the provisions of this section 
 17.12  and section 135A.51 shall not be included by such institutions 
 17.13  in their computation of full-time equivalent students when 
 17.14  requesting staff or appropriations.  The enrollee shall pay 
 17.15  laboratory or material fees. 
 17.16     Sec. 4.  Minnesota Statutes 2000, section 136A.101, 
 17.17  subdivision 5a, is amended to read: 
 17.18     Subd. 5a.  [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 
 17.19  family responsibility" means the amount of a family contribution 
 17.20  to a student's cost of attendance, as determined by a federal 
 17.21  need analysis, except that, beginning for the 1998-1999 academic 
 17.22  year, up to $25,000 in savings and other assets shall be 
 17.23  subtracted from the federal calculation of net worth before 
 17.24  determining the contribution.  For dependent students, the 
 17.25  assigned family responsibility is the parental contribution.  
 17.26  For independent students with dependents other than a spouse, 
 17.27  the assigned family responsibility is the student contribution. 
 17.28  For independent students without dependents other than a spouse, 
 17.29  the assigned family responsibility is 80 percent of the student 
 17.30  contribution.  Beginning in fiscal year 2004, the assigned 
 17.31  family responsibility of all independent students shall be 
 17.32  reduced an additional 33 percent. 
 17.33     Sec. 5.  Minnesota Statutes 2000, section 136A.121, 
 17.34  subdivision 6, is amended to read: 
 17.35     Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
 17.36  attendance consists of allowances specified in law for ~~room and~~ 
 18.1   ~~board~~ living and miscellaneous expenses~~,~~ and 
 18.2      ~~(1) for public institutions, tuition and fees charged by~~ 
 18.3   ~~the institution; or~~ 
 18.4      ~~(2) for private institutions,~~ an allowance for tuition and 
 18.5   fees equal to the lesser of the actual tuition and fees charged 
 18.6   by the institution~~,~~ or the private institution tuition maximums 
 18.7   established in law. 
 18.8      (b) For the purpose of paragraph (a), ~~clause (2),~~ the 
 18.9   ~~private institution~~ tuition and fee maximum for two- and 
 18.10  four-year, ~~private,~~ residential, liberal arts, degree-granting 
 18.11  colleges and universities must be the same. 
 18.12     (c) For a student ~~attending~~ registering for less than ~~full~~ 
 18.13  ~~time~~ 15 credits (or equivalent), the office shall prorate 
 18.14  the ~~recognized cost of attendance~~ living and miscellaneous 
 18.15  expense allowance to the actual number of credits for which the 
 18.16  student is enrolled. 
 18.17     The recognized cost of attendance for a student who is 
 18.18  confined to a Minnesota correctional institution shall consist 
 18.19  of the tuition and fee component in paragraph (a), ~~clause (1) or~~ 
 18.20  ~~(2),~~ with no allowance for living and miscellaneous expenses. 
 18.21     Sec. 6.  Minnesota Statutes 2000, section 136A.121, 
 18.22  subdivision 9, is amended to read: 
 18.23     Subd. 9.  [AWARDS.] An undergraduate student who meets the 
 18.24  office's requirements is eligible to apply for and receive a 
 18.25  grant in any year of undergraduate study unless the student has 
 18.26  obtained a baccalaureate degree ~~or previously has been enrolled~~ 
 18.27  ~~full time or the equivalent for eight semesters or 12 quarters,~~ 
 18.28  ~~excluding courses taken from a Minnesota school or~~ 
 18.29  ~~post-secondary institution which is not participating in the~~ 
 18.30  ~~state grant program and from which a student transferred no~~ 
 18.31  ~~credit~~. 
 18.32     Sec. 7.  Minnesota Statutes 2000, section 136A.1211, is 
 18.33  amended to read: 
 18.34     136A.1211 [USE OF STATE GRANT SAVINGS.] 
 18.35     Savings in the state grant program resulting from an 
 18.36  increase in the maximum federal Pell grant from the anticipated 
 19.1   level of ~~$3,125~~ $3,750 shall be used by the office ~~to increase~~ 
 19.2   first to provide an inflationary increase for the living and 
 19.3   miscellaneous expense allowance, and then to reduce the 
 19.4   percentage of assigned student responsibility. 
 19.5      Sec. 8.  Minnesota Statutes 2000, section 136A.125, 
 19.6   subdivision 4, is amended to read: 
 19.7      Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 19.8   child care grant must be based on: 
 19.9      (1) the income of the applicant and the applicant's spouse, 
 19.10  if any; 
 19.11     (2) the number in the applicant's family, as defined by the 
 19.12  office; and 
 19.13     (3) the number of eligible children in the applicant's 
 19.14  family.  
 19.15     The maximum award to the applicant shall be ~~$2,000~~ $2,600 
 19.16  for each eligible child per academic year, except that the 
 19.17  campus financial aid officer may apply to the office for 
 19.18  approval to increase grants by up to ten percent to compensate 
 19.19  for higher market charges for infant care in a community.  The 
 19.20  office shall develop policies to determine community market 
 19.21  costs and review institutional requests for compensatory grant 
 19.22  increases to ensure need and equal treatment.  The office shall 
 19.23  prepare a chart to show the amount of a grant that will be 
 19.24  awarded per child based on the factors in this subdivision.  The 
 19.25  chart shall include a range of income and family size. 
 19.26     Sec. 9.  Minnesota Statutes 2000, section 136F.13, is 
 19.27  amended to read: 
 19.28     136F.13 [METROPOLITAN STATE UNIVERSITY.] 
 19.29     Subdivision 1.  [OPERATION.] The ~~state university~~ board 
 19.30  shall operate an educational program for a state university 
 19.31  center as organized in the seven county metropolitan area.  The 
 19.32  center may operate in facilities acquired through the 
 19.33  commissioner of administration by gift or lease. The faculty and 
 19.34  staff of the state university system shall provide assistance in 
 19.35  developing curricular and educational programs for the 
 19.36  university. 
 20.1      Subd. 2.  [TUITION RECEIPTS.] Metropolitan state university 
 20.2   may deposit tuition receipts received during the final quarter 
 20.3   of each year in a suspense account.  The balance in that account 
 20.4   shall not cancel on June 30 but shall be available in the next 
 20.5   fiscal year. 
 20.6      Sec. 10.  Minnesota Statutes 2000, section 136F.60, 
 20.7   subdivision 2, is amended to read: 
 20.8      Subd. 2.  [METHODS OF ACQUISITION.] (a) If money has been 
 20.9   appropriated to the board to acquire lands or sites for public 
 20.10  buildings or real estate, the acquisition may be by gift, 
 20.11  purchase, or condemnation proceedings.  Condemnation proceedings 
 20.12  must be under chapter 117. 
 20.13     (b) The board may accept gifts of and enter into agreements 
 20.14  to acquire facilities that the board determines to be for the 
 20.15  good and benefit of the state colleges and universities.  Except 
 20.16  as otherwise provided in this paragraph, the terms of the 
 20.17  agreements are within the board's discretion.  The board, by way 
 20.18  of agreement, may convey, or lease for a term of years not to 
 20.19  exceed 30 years, real property under the board's control.  
 20.20  Conveyances and leases may be made with or without monetary 
 20.21  consideration.  Conveyances by the board must be by quitclaim 
 20.22  deed in a form approved by the attorney general.  Land conveyed 
 20.23  by the board must revert to the state if it is no longer used to 
 20.24  provide a facility for the primary benefit of a state college or 
 20.25  university or its students.  Agreements may be made following 
 20.26  requests for proposal or by direct negotiation.  The board may 
 20.27  not use, either directly or indirectly, state appropriations or 
 20.28  the credit of the state to pay or guarantee the payment of any 
 20.29  debt for, or any costs related to, the construction of a 
 20.30  facility acquired or constructed according to this paragraph.  
 20.31  For purposes of this paragraph, "facility" includes, but is not 
 20.32  limited to, student unions, recreational centers, and other 
 20.33  facilities for student housing, athletics, parking, academic 
 20.34  instruction, and administration. 
 20.35     Sec. 11.  [136F.701] [REFUND OF TUITION.] 
 20.36     (a) Any student who is a resident of the state, has 
 21.1   enrolled in the state colleges and universities and paid tuition 
 21.2   for the course, and who, prior to the termination of the school 
 21.3   year for which the tuition was paid, enlisted or has been 
 21.4   inducted into the military service of the United States, either 
 21.5   voluntarily or pursuant to the present selective service law, is 
 21.6   entitled to the refund of all tuition paid for which credit 
 21.7   cannot properly be given.  
 21.8      (b) The administrative officers of the state colleges and 
 21.9   universities shall refund to the students any tuition paid in 
 21.10  paragraph (a).  Any student making application for a refund of 
 21.11  any paid tuition shall furnish to the administrative officers of 
 21.12  the state colleges and universities a certificate from the 
 21.13  proper officers reciting the fact of the enlistment or the 
 21.14  induction of the student into the military service of the United 
 21.15  States. 
 21.16     Sec. 12.  Minnesota Statutes 2000, section 137.10, is 
 21.17  amended to read: 
 21.18     137.10 [REFUND OF TUITION TO STUDENTS IN CERTAIN CASES.] 
 21.19     Any student who, being a resident of the state, has 
 21.20  enrolled to pursue any course in the University of Minnesota ~~or~~ 
 21.21  ~~any state university~~ and paid tuition for the course, and who, 
 21.22  prior to the termination of the school year for which the 
 21.23  tuition was paid, enlisted or has been inducted into the 
 21.24  military services of the United States, either voluntarily or 
 21.25  pursuant to the present selective service law, is entitled to 
 21.26  the refund of all tuition paid for which credit cannot properly 
 21.27  be given.  
 21.28     The administrative officers of the University of Minnesota 
 21.29  ~~and of the universities or institutions~~ shall refund to the 
 21.30  students any tuition so paid.  Any student making application 
 21.31  for refund of any paid tuition shall furnish to the 
 21.32  administrative officers of the University of Minnesota ~~or of the~~ 
 21.33  ~~universities~~ a certificate from the proper officers reciting the 
 21.34  fact of the enlistment or the induction of the student into the 
 21.35  military service of the United States. 
 21.36     Sec. 13.  Minnesota Statutes 2000, section 169.966, is 
 22.1   amended to read: 
 22.2      169.966 [STATE UNIVERSITY BOARD TO REGULATE TRAFFIC.] 
 22.3      Subdivision 1.  [AUTHORITY.] The ~~state university~~ board of 
 22.4   trustees of the Minnesota state colleges and universities may 
 22.5   from time to time make, adopt, and enforce such rules or 
 22.6   ordinances not inconsistent with this chapter, as it may find 
 22.7   expedient or necessary relating to the regulation of traffic and 
 22.8   parking upon parking facilities and private roads and roadways 
 22.9   situated on property owned, leased, occupied or operated by 
 22.10  state universities. 
 22.11     Subd. 1a.  [PARKING FACILITIES.] The ~~state university~~ board 
 22.12  of trustees may establish rents, charges or fees for the use of 
 22.13  parking facilities owned, leased, occupied, or operated by the 
 22.14  state university board.  The money collected by the board as 
 22.15  rents, charges or fees in accordance with this subdivision shall 
 22.16  be deposited in the university activity fund and is annually 
 22.17  appropriated to the ~~state university~~ board of trustees for state 
 22.18  university purposes and to maintain and operate parking lots and 
 22.19  parking facilities. 
 22.20     Subd. 2.  [PETTY MISDEMEANOR.] Any person violating such 
 22.21  rule or ordinance shall be guilty of a petty misdemeanor and 
 22.22  subject to the provisions of sections 169.891 and 169.90, 
 22.23  subdivision 1. 
 22.24     Subd. 3.  [PROSECUTION.] The prosecution may be before a 
 22.25  district court having jurisdiction over the place where the 
 22.26  violation occurs. 
 22.27     Subd. 4.  [ENFORCEMENT.] Every sheriff, constable, police 
 22.28  officer, or other peace officer shall see that all rules and 
 22.29  ordinances are obeyed and shall arrest and prosecute offenders. 
 22.30     Subd. 5.  [ENFORCEMENT POWERS.] The ~~state university~~ 
 22.31  board of trustees may appoint and employ, and fix the 
 22.32  compensation to be paid out of funds which may be available for 
 22.33  such purposes, persons who shall have and may exercise on 
 22.34  property owned, leased, or occupied by the state universities 
 22.35  the same powers of arrest for violation of rules or ordinances 
 22.36  adopted by the board as possessed by a sheriff, constable, 
 23.1   police officer, or peace officer. 
 23.2      Subd. 6.  [JUDICIAL NOTICE.] All persons shall take notice 
 23.3   of such rules and ordinances without pleading and proof of the 
 23.4   same. 
 23.5      Subd. 7.  [NOTICE, HEARING, FILING, AND EFFECT.] (a) 
 23.6   The ~~state university~~ board of trustees shall fix a date for a 
 23.7   public hearing on the adoption of any such proposed rule or 
 23.8   ordinance.  Notice of such hearing shall be published in a legal 
 23.9   newspaper in the county in which the property affected by the 
 23.10  rule or ordinance is located.  The publication shall be at least 
 23.11  15 days and not more than 45 days before the date of the hearing.
 23.12     (b) If, after the public hearing, the proposed rule or 
 23.13  ordinance shall be adopted by a majority of the members of the 
 23.14  board, the same shall be considered to have been enacted by the 
 23.15  board.  A copy of the same shall be signed by the president and 
 23.16  filed with the county recorder of each county where the rule or 
 23.17  ordinance shall be in effect, together with proof of 
 23.18  publication.  Upon such filing, the rule or ordinance, as the 
 23.19  case may be, shall thenceforth be in full force and effect. 
 23.20     Subd. 8.  [DELEGATION.] The ~~state university~~ board of 
 23.21  trustees may delegate its responsibilities under this section to 
 23.22  a state university president.  Actions of the president shall be 
 23.23  presumed to be those of the board.  The university president 
 23.24  shall file with the board president the results of any public 
 23.25  hearings and the subsequent adoption of any proposed rule or 
 23.26  ordinance enacted pursuant thereto.  
 23.27     Sec. 14.  Minnesota Statutes 2000, section 354.094, 
 23.28  subdivision 2, is amended to read: 
 23.29     Subd. 2.  [MEMBERSHIP; RETENTION.] Notwithstanding section 
 23.30  354.49, subdivision 4, clause (3), a member on extended leave 
 23.31  whose employee and employer contributions are paid into the fund 
 23.32  pursuant to subdivision 1 shall retain membership in the 
 23.33  association for as long as the contributions are paid, under the 
 23.34  same terms and conditions as if the member had continued to 
 23.35  teach in the district~~, the community college system,~~ or the 
 23.36  Minnesota state ~~university~~ colleges and universities system. 
 24.1      Sec. 15.  Minnesota Statutes 2000, section 354.69, is 
 24.2   amended to read: 
 24.3      354.69 [INFORMATION SUPPLIED BY DISTRICT.] 
 24.4      Each school district covered by the provisions of this 
 24.5   chapter and the ~~community college~~ Minnesota state colleges and 
 24.6   ~~state university systems~~ universities system shall furnish to 
 24.7   the teachers retirement association all information and reports 
 24.8   deemed necessary by the executive director to administer the 
 24.9   provisions of section 354.66. 
 24.10     Sec. 16.  Minnesota Statutes 2000, section 356.24, 
 24.11  subdivision 1, is amended to read: 
 24.12     Subdivision 1.  [RESTRICTION; EXCEPTIONS.] It is unlawful 
 24.13  for a school district or other governmental subdivision or state 
 24.14  agency to levy taxes for, or contribute public funds to a 
 24.15  supplemental pension or deferred compensation plan that is 
 24.16  established, maintained, and operated in addition to a primary 
 24.17  pension program for the benefit of the governmental subdivision 
 24.18  employees other than: 
 24.19     (1) to a supplemental pension plan that was established, 
 24.20  maintained, and operated before May 6, 1971; 
 24.21     (2) to a plan that provides solely for group health, 
 24.22  hospital, disability, or death benefits; 
 24.23     (3) to the individual retirement account plan established 
 24.24  by chapter 354B; 
 24.25     (4) to a plan that provides solely for severance pay under 
 24.26  section 465.72 to a retiring or terminating employee; 
 24.27     (5) for employees other than personnel employed by the 
 24.28  ~~state university board or the community college board and~~ 
 24.29  ~~covered by the~~ board of trustees of the Minnesota state colleges 
 24.30  and universities and covered under the higher education 
 24.31  supplemental retirement plan under chapter 354C, if provided for 
 24.32  in a personnel policy of the public employer or in the 
 24.33  collective bargaining agreement between the public employer and 
 24.34  the exclusive representative of public employees in an 
 24.35  appropriate unit, in an amount matching employee contributions 
 24.36  on a dollar for dollar basis, but not to exceed an employer 
 25.1   contribution of $2,000 a year per employee; 
 25.2      (i) to the state of Minnesota deferred compensation plan 
 25.3   under section 352.96; or 
 25.4      (ii) in payment of the applicable portion of the 
 25.5   contribution made to any investment eligible under section 
 25.6   403(b) of the Internal Revenue Code, if the employing unit has 
 25.7   complied with any applicable pension plan provisions of the 
 25.8   Internal Revenue Code with respect to the tax-sheltered annuity 
 25.9   program during the preceding calendar year; or 
 25.10     (6) for personnel employed by the ~~state university board or~~ 
 25.11  ~~the community college~~ board of trustees of the Minnesota state 
 25.12  colleges and universities and not covered by clause (5), to the 
 25.13  supplemental retirement plan under chapter 354C, if provided for 
 25.14  in a personnel policy or in the collective bargaining agreement 
 25.15  of the public employer with the exclusive representative of the 
 25.16  covered employees in an appropriate unit, in an amount matching 
 25.17  employee contributions on a dollar for dollar basis, but not to 
 25.18  exceed an employer contribution of $2,700 a year for each 
 25.19  employee.  
 25.20     Sec. 17.  [SINGLE ASSESSMENT PLAN.] 
 25.21     The department of children, families, and learning shall, 
 25.22  in consultation with the Minnesota state colleges and 
 25.23  universities, the University of Minnesota, high school students, 
 25.24  parents, and teachers, by February 1, 2002, submit to the 
 25.25  education policy committees of the legislature a plan to reduce 
 25.26  the need for developmental education in higher education. 
 25.27     Sec. 18.  [REPEALER.] 
 25.28     Minnesota Statutes 2000, section 135A.081, is repealed. 
 25.29     Sec. 19.  [EFFECTIVE DATE.] 
 25.30     Section 2 is effective for fiscal year 2003 and thereafter. 
 25.31  Section 4 is effective July 1, 2003.  Section 5 is effective 
 25.32  July 1, 2004.  Section 18 is effective July 1, 2002.