1.1                          A bill for an act 
  1.2             relating to education; equalizing costs of health care 
  1.3             benefits at MnSCU institutions; amending Laws 1999, 
  1.4             chapter 214, article 1, section 3, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Laws 1999, chapter 214, article 1, section 3, 
  1.7   subdivision 2, is amended to read: 
  1.8   Subd. 2.  Estimated Expenditures and Appropriations 
  1.9   The legislature estimates that 
  1.10  instructional expenditures will be 
  1.11  $678,729,000 in the first year and 
  1.12  $713,533,000 in the second year. 
  1.13  The legislature estimates that 
  1.14  noninstructional expenditures will be 
  1.15  $65,093,000 in the first year and 
  1.16  $66,723,000 in the second year. 
  1.17  The legislature intends that state 
  1.18  appropriations be used to strengthen 
  1.19  and support education of students.  To 
  1.20  this end, all money appropriated in 
  1.21  this section, except that in direct 
  1.22  support of system office activities, 
  1.23  shall be allocated by the board 
  1.24  directly to the colleges and 
  1.25  universities.  Up to $3,000,000 of the 
  1.26  annual allocation to colleges and 
  1.27  universities must be used to compensate 
  1.28  institutions for the differences in the 
  1.29  cost of employee health care by 
  1.30  equalizing, to the extent possible, 
  1.31  differences in the low costs carrier 
  1.32  rates. 
  1.33  During the biennium, neither the board 
  1.34  nor campuses shall plan or develop 
  1.35  doctoral level programs or degrees 
  1.36  until after they have received the 
  1.37  recommendation of the house and senate 
  1.38  committees on education, finance, and 
  2.1   ways and means. 
  2.2   This appropriation includes an increase 
  2.3   of $5,000,000 in each year for 
  2.4   customized training and leveraged 
  2.5   equipment purchases.  
  2.6   This appropriation includes money for 
  2.7   repair and replacement of 
  2.8   state-financed facilities, a degree 
  2.9   audit reporting system, technology 
  2.10  infrastructure, Y2K, virtual 
  2.11  university, and ISEEK. 
  2.12  This appropriation includes $5,000,000 
  2.13  per year for grants to historically 
  2.14  underfunded institutions demonstrating 
  2.15  financial distress.  Grants must not 
  2.16  exceed $500,000.  The money must be 
  2.17  spent in support of instructional 
  2.18  programs or student services.  By 
  2.19  December 31 of each year, the system 
  2.20  shall report to the chairs of the 
  2.21  higher education finance committees on 
  2.22  the distribution of the grants. 
  2.23  This appropriation includes money to 
  2.24  increase access to the farm and small 
  2.25  business management programs by 
  2.26  expanding the capacity of the programs 
  2.27  and providing additional tuition 
  2.28  subsidies. 
  2.29  This appropriation includes money for 
  2.30  the Center for Research and Innovation 
  2.31  at Bemidji State University. 
  2.32  This appropriation includes money for 
  2.33  start-up funding for a rural research 
  2.34  center at Southwest State University. 
  2.35  This appropriation includes money for 
  2.36  the agriculture program at the Staples 
  2.37  campus of the Central Lakes college. 
  2.38  Metropolitan State University may 
  2.39  retain any money saved from a reduction 
  2.40  in lease costs at the 730 Hennepin 
  2.41  Avenue South site. 
  2.42  During the biennium, technical and 
  2.43  consolidated colleges shall make use of 
  2.44  instructional advisory committees 
  2.45  consisting of employers, students, and 
  2.46  instructors.  The instructional 
  2.47  advisory committee shall be consulted 
  2.48  when a technical program is proposed to 
  2.49  be created, modified, or eliminated.  
  2.50  If a decision is made to eliminate a 
  2.51  program, a college shall adequately 
  2.52  notify students and make plans to 
  2.53  assist students affected by the closure.
  2.54  The system shall prepare a budget plan 
  2.55  for the system office.  The plan shall 
  2.56  include budgeted expenditures for each 
  2.57  major division or program of the system 
  2.58  office.  The plan also shall include a 
  2.59  review of the current functions, 
  2.60  services, and programs managed or 
  2.61  provided by the system office.  The 
  3.1   review shall describe the purpose of 
  3.2   these activities and their cost; 
  3.3   analyze whether they are necessary and 
  3.4   how they benefit the colleges and 
  3.5   universities; and identify unnecessary 
  3.6   duplication of programs and services 
  3.7   provided at the system and 
  3.8   institutional levels.  The board shall 
  3.9   report to the higher education finance 
  3.10  committees by February 15, 2000, on its 
  3.11  findings and articulate an 
  3.12  organizational plan for the system 
  3.13  office. 
  3.14  In each year, the board of trustees 
  3.15  shall increase the percentage of the 
  3.16  total general fund expenditures for 
  3.17  direct instruction and academic 
  3.18  support, as reported in the federal 
  3.19  Integrated Postsecondary Education Data 
  3.20  System (IPEDS).  By February 15 of 2000 
  3.21  and 2001, the board of trustees shall 
  3.22  report to the higher education finance 
  3.23  committees the percentage of total 
  3.24  general fund expenditures spent on 
  3.25  direct instruction and on academic 
  3.26  support during the previous fiscal year 
  3.27  by institution and for the system as a 
  3.28  whole. 
  3.29  Before commencing any new program not 
  3.30  specifically authorized by law for 
  3.31  teachers of color and urban teachers, 
  3.32  the board shall evaluate existing 
  3.33  programs and determine whether to 
  3.34  expand or modify an existing program or 
  3.35  create a new program. 
  3.36  The board may waive tuition for 
  3.37  eligible Southwest Asia veterans, as 
  3.38  provided in Minnesota Statutes, section 
  3.39  136F.28. 
  3.40  Notwithstanding Minnesota Statutes, 
  3.41  section 136F.71, subdivision 1, a state 
  3.42  college shall retain revenues in excess 
  3.43  of costs for delivering customized 
  3.44  training programs.  The excess revenues 
  3.45  shall be used for expanding and 
  3.46  developing customized training programs.
  3.47     Sec. 2.  [EFFECTIVE DATE.] 
  3.48     Section 1 is effective the day following final enactment 
  3.49  for allocations to colleges and universities for fiscal years 
  3.50  2000 and 2001.