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Minnesota Legislature

Office of the Revisor of Statutes

CHAPTER 136F. MINNESOTA STATE COLLEGES AND UNIVERSITIES

Table of Sections
SectionHeadnote

DEFINITIONS

136F.01DEFINITIONS.

BOARD OF TRUSTEES

136F.02BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES.
136F.03BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES CANDIDATE ADVISORY COUNCIL.
136F.04STUDENT BOARD MEMBER SELECTION.
136F.05MISSIONS.
136F.06POWERS AND DUTIES.
136F.07CHANCELLOR.

DESIGNATION

136F.10DESIGNATION.
136F.11CHANGES IN DESIGNATION AND STATUS OF EDUCATIONAL INSTITUTIONS.
136F.12FOND DU LAC CAMPUS.
136F.13
136F.14CAMPUS MERGER OR REORGANIZATION.
136F.16CAMPUS ESTABLISHMENT.
136F.18CAMPUS CLOSING.

STUDENTS

136F.20STUDENT HEALTH.
136F.22STUDENT ASSOCIATIONS.
136F.23STUDENT ASSOCIATIONS; PURCHASING AUTHORITY.
136F.24LEGAL COUNSELING AND SERVICE PROGRAM; FUNDING.
136F.25ABSENCE FOR CHEMICAL ABUSE TREATMENT.
136F.28SOUTHWEST ASIA VETERANS; TECHNICAL COLLEGES.

CURRICULUM

136F.30COURSES AND PROGRAMS.
136F.31CENTERS OF EXCELLENCE.
136F.32DEGREES; DIPLOMAS; CERTIFICATES.
136F.36TECHNICAL COLLEGE CARPENTRY PROGRAM CONSTRUCTION AUTHORITY.

HUMAN RESOURCES

136F.40APPOINTMENT OF PERSONNEL.
136F.41ASSIGNMENT TO BARGAINING UNITS.
136F.42PERSONNEL MANAGEMENT.
136F.43EXTENDED LEAVES OF ABSENCE.
136F.44ADMINISTRATIVE INTERACTION WITH STUDENTS.
136F.45ANNUITIES.
136F.46NONPROFIT FOUNDATION PAYROLL DEDUCTION.
136F.47PENSION PLAN.
136F.48EMPLOYER-PAID HEALTH INSURANCE.
136F.49LICENSURE.

ADMINISTRATION

136F.50COOPERATION OR PROMOTION OF A STATE COLLEGE OR UNIVERSITY.
136F.52LOCAL ADVISORY COMMITTEES.
136F.526AUDITS.
136F.53PARKING AND TRAFFIC REGULATION.
136F.54STUDENT HOUSING MANAGEMENT.
136F.56Repealed, 2003 c 133 art 4 s 9
136F.58136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION.
136F.581PURCHASES AND CONTRACTS.
136F.582Repealed, 2003 c 133 art 4 s 9
136F.59TECHNICAL EQUIPMENT.

FACILITIES

136F.60COLLEGE AND UNIVERSITY SITES; ACQUISITION.
136F.61STATE BUILDING CODE.
136F.64CONSTRUCTION, IMPROVEMENT, AND REPAIR OF FACILITIES.
136F.65ACCEPTANCE OF FEDERAL MONEY.
136F.66CAPITAL PROJECTS BIDDING PROCEDURES.
136F.67FINANCING OF CHILD CARE; PARKING.
136F.68STATE PROPERTY AGREEMENTS.

FINANCE

136F.70TUITION; FEES; ACTIVITIES FUNDS.
136F.701REFUND OF TUITION.
136F.71RECEIPTS.
136F.72FUNDS.
136F.73CASH OVER AND SHORT ACCOUNT OF IMPREST CASH FUND.
136F.74CARRYOVER AUTHORITY.
136F.76LITIGATION AWARDS.
136F.77EQUITY INVESTMENTS.
136F.79SOLE STATE AGENCY.

GRANTS AND GIFTS

136F.80GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.
136F.81TRANSFER OF GIFTS.

BONDS

136F.90BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES, DUTIES.
136F.91BONDS, INVESTMENTS.
136F.92RESOLUTION OF BOARD.
136F.93STUDENT ACTIVITIES, FEES CHARGED.
136F.94SPECIAL REVENUE FUND.
136F.95ALLOCATION OF RECEIPTS.
136F.96ADMINISTRATION.
136F.97CONTRACTS OF BOARD, PERFORMANCE COMPELLED.
136F.98REVENUE BONDS, ISSUANCE; FEDERAL TAX.

DEFINITIONS

136F.01 DEFINITIONS.
    Subdivision 1. Scope. For the purpose of this chapter, the following terms have the meanings
given them.
    Subd. 2. Board or board of trustees. "Board" or "board of trustees" means the Board of
Trustees of the Minnesota State Colleges and Universities.
    Subd. 3. Chancellor. "Chancellor" means the chancellor of the Minnesota State Colleges
and Universities.
    Subd. 4. State colleges and universities. "State colleges and universities" means Minnesota
state colleges and universities governed by the board of trustees.
    Subd. 5. Student activities. "Student activities" means lectures, concerts, and other functions
contributing to the mental, moral, and cultural development of the student body and community in
which they live, athletic activities, including intercollegiate contests, forensics, dramatics, and
such other activities of any nature as in the opinion of the board contribute to the educational,
cultural, or physical well being of the student body.
History: 1995 c 212 art 4 s 3

BOARD OF TRUSTEES

136F.02 BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND
UNIVERSITIES.
    Subdivision 1. Membership. The board consists of 15 members appointed by the governor
with the advice and consent of the senate. At least one member of the board must be a resident of
each congressional district. In selecting appointees, the governor must consider the needs of the
board of trustees and the balance of the board membership with respect to labor and business
representation and racial, gender, geographic, and ethnic composition. Three members must be
students who are enrolled at least half time in a degree, diploma, or certificate program or have
graduated from an institution governed by the board within one year of the date of appointment.
The student members shall include: one member from a community college, one member from
a state university, and one member from a technical college. The remaining members must be
appointed to represent the state at large.
    Subd. 2. Term; compensation; removal; vacancies. The compensation, removal of
members, and filling of vacancies on the board are as provided in section 15.0575. Members are
appointed for a term of six years, except that the term of each of the student members is two years.
Terms end on June 30, except that members may serve until their successors are appointed.
    Subd. 3. Board administration. The board shall elect a chair and other officers as it may
desire. It shall determine its meeting dates and places.
History: 1991 c 356 art 9 s 2; 1994 c 532 art 7 s 2,3; 1995 c 212 art 4 s 5,64; 1999 c
214 art 2 s 11; 2007 c 144 art 2 s 36
136F.03 BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND
UNIVERSITIES CANDIDATE ADVISORY COUNCIL.
    Subdivision 1. Purpose. A Candidate Advisory Council for the Board of Trustees of the
Minnesota State Colleges and Universities shall assist the governor in determining criteria for,
and identifying and recruiting qualified candidates for, nonstudent membership on the board.
    Subd. 2. Membership. The advisory council consists of 24 members. Twelve members are
appointed by the Subcommittee on Committees of the Committee on Rules and Administration of
the senate. Twelve members are appointed by the speaker of the house of representatives. No more
than one-third of the members appointed by each appointing authority may be current or former
legislators. No more than two-thirds of the members appointed by each appointing authority may
belong to the same political party; however, political activity or affiliation is not required for the
appointment of a member. Geographical representation must be taken into consideration when
making appointments. Section 15.0575 governs the advisory council, except that the members
must be appointed to six-year terms.
    Subd. 3. Duties. (a) The advisory council shall:
    (1) develop a statement of the selection criteria to be applied and a description of the
responsibilities and duties of a member of the board and shall distribute this to potential
candidates; and
    (2) for each position on the board, identify and recruit qualified candidates for the board,
based on the background and experience of the candidates, and their potential for discharging
the responsibilities of a member of the board.
    (b) Selection criteria developed under this section must include the requirement that trustees
represent diversity in geography, gender, race, occupation, and experience.
    (c) Selection criteria developed under this section must also include the identification of the
membership needs of the board for individual skills relevant to the governance of the Minnesota
State Colleges and Universities and the needs for certain individual characteristics that include
geographic location, gender, race, occupation, and experience.
    Subd. 4. Recommendations. Except for seats filled under section 136F.04, the advisory
council shall recommend at least two and not more than four candidates for each seat. By April
15 of each even-numbered year, the advisory council shall submit its recommendations to the
governor. The governor is not bound by these recommendations.
    Subd. 5. Support services. The Legislative Coordinating Commission shall provide
administrative and support services for the advisory council.
History: 1991 c 356 art 9 s 3; 1994 c 532 art 7 s 4; 1995 c 212 art 4 s 6-8,64; 2007
c 144 art 2 s 37,38
136F.04 STUDENT BOARD MEMBER SELECTION.
    Subdivision 1. Responsibility. Notwithstanding section 136F.03, the State University
Student Association and the State College Student Association shall each have the responsibility
for recruiting, screening, and recommending qualified candidates for their student members of
the board.
    Subd. 2. Criteria. After consulting with the Board of Trustees Candidate Advisory Council,
the student associations shall jointly develop a statement of the selection criteria to be applied to
potential candidates.
    Subd. 3. Recruiting and screening. Each student association shall develop processes for
identifying and recruiting qualified candidates and for screening those candidates.
    Subd. 4. Recommendations. Each student association shall recommend at least two and not
more than four candidates for its student member. By April 15 of the year in which its members'
term expires, each student association shall submit its recommendations to the governor. The
governor is not bound by these recommendations.
History: 1994 c 532 art 7 s 5; 1995 c 212 art 4 s 9,64; 1999 c 214 art 2 s 12; 2005 c
107 art 2 s 30
136F.05 MISSIONS.
The mission of the board is to provide programs of study that meet the needs of students for
occupational, general, baccalaureate, and graduate education. The state universities, community
colleges, and technical colleges shall have distinct missions as provided in section 135A.052,
subdivision 1
. Within that statutory definition and subject to the approval of the board, each
community college, state university, and technical college may develop its own distinct campus
mission. The board shall develop administrative arrangements that make possible the efficient
use of the facilities and staff of the technical colleges, community colleges, and state universities
for providing these several different programs of study, so that students may have the benefit of
improved and broader course offerings, ease of transfer among schools and programs, integrated
course credit, coordinated degree programs, and coordinated financial aid. In carrying out the
merger of the three separate systems, the board shall control administrative costs by eliminating
duplicative administrative positions and course offerings.
History: 1991 c 356 art 9 s 4; 1Sp1993 c 2 art 9 s 3; 1994 c 532 art 7 s 6; 1995 c 212
art 4 s 63
136F.06 POWERS AND DUTIES.
    Subdivision 1. General authority. The board shall possess all powers necessary to govern
the state colleges and universities and all related property. Those powers shall include, but are not
limited to, those enumerated in this section. The board shall prescribe conditions of admission,
set tuition and fees, approve programs of study and requirements for completion of programs,
approve the awarding of appropriate certificates, diplomas, and degrees, enter into contracts
and other agreements, and adopt suitable policies for the institutions it governs. To the extent
practicable in protecting statewide interests, the board shall provide autonomy to the campuses
while holding them accountable for their decisions. Sections 14.01 to 14.47 do not apply to
policies and procedures of the board.
    Subd. 2. Governance authority. The board shall have the authority needed to operate
and govern the state colleges and universities unless otherwise directed or prohibited by law.
The board is responsible for its operations and necessary decisions unless these are specifically
delegated by law to a state department or agency.
    Subd. 3. Office location. Notwithstanding chapter 16B, the board may select the location
for its central office.
History: 1991 c 356 art 9 s 5; 1Sp1993 c 2 art 9 s 4; 1994 c 572 s 2; 1995 c 212 art 4 s
10-12,64; 1996 c 398 s 33,34
136F.07 CHANCELLOR.
The board shall appoint a chancellor who shall serve in the unclassified service. The
chancellor shall possess powers and perform duties as delegated by the board. The board shall set
the salary of the chancellor according to section 15A.081, subdivision 7c.
History: 1995 c 212 art 4 s 13; 2Sp1997 c 3 s 18; 1Sp2001 c 10 art 2 s 59

DESIGNATION

136F.10 DESIGNATION.
The following are designated as the Minnesota State Colleges and Universities: the
community colleges located at Austin, Bloomington, Brainerd, Brooklyn Park, Cloquet, Coon
Rapids, Ely, Fergus Falls, Grand Rapids, Hibbing, International Falls, Inver Grove Heights,
Minneapolis, Rochester, Thief River Falls, Virginia, White Bear Lake, Willmar, and Worthington;
the community college centers located at Cambridge and Duluth; the state universities located at
Bemidji, Mankato, Marshall, Moorhead, St. Cloud, Winona, and the Twin Cities metropolitan
area; and the technical colleges located at Alexandria, Albert Lea, Anoka, Austin, Bemidji,
Brainerd, Brooklyn Park, Canby, Detroit Lakes, Duluth, East Grand Forks, Eden Prairie, Eveleth,
Faribault, Granite Falls, Hibbing, Hutchinson, Jackson, Minneapolis, Mahtomedi, Moorhead,
North Mankato, Pine City, Pipestone, Red Wing, Rochester, Rosemount, St. Cloud, St. Paul,
Staples, Thief River Falls, Wadena, Willmar, and Winona.
History: 1995 c 212 art 4 s 14
136F.11 CHANGES IN DESIGNATION AND STATUS OF EDUCATIONAL
INSTITUTIONS.
Educational institutions heretofore known and described as state normal schools and state
teachers colleges as designated in Minnesota Statutes have been redesignated as state universities.
All property of the Duluth State College has been transferred and all obligations of the college
have been assumed by the regents of the University of Minnesota in accordance with Minnesota
Statutes 1974, section 137.13, and this college is now part of the university. The Southwest
State University has been established in accordance with the provisions of Minnesota Statutes
1976, section 136.016.
History: 1957 c 576 s 1; 1965 c 331 s 2; 1975 c 321 s 2; 1982 c 424 s 35; 1995 c 212
art 4 s 64
136F.12 FOND DU LAC CAMPUS.
    Subdivision 1. Unique missions. The Fond du Lac campus has a unique mission among
two-year colleges to serve the lower division general education needs in Carlton and south St.
Louis Counties, and the education needs of American Indians throughout the state and especially
in northern Minnesota. The campus has a further unique mission to provide programs in support
of its federal land grant status. Accordingly, while the college is governed by the Board of
Trustees, its governance is accomplished in conjunction with the board of directors of Fond du
Lac Tribal College.
    Subd. 2. Selected programs. Notwithstanding section 135A.052, subdivision 1, to better
meet the education needs of Minnesota's American Indian students, and in furtherance of the
unique missions provided in subdivision 1, Fond du Lac Tribal and Community College may
offer a baccalaureate program in elementary education, as approved by the Board of Trustees of
the Minnesota State Colleges and Universities, and the board of directors of Fond du Lac Tribal
and Community College.
    Subd. 3. Bargaining unit assignment. Notwithstanding section 179A.10, subdivision 2, the
state university instructional unit shall include faculty who teach upper division courses at the
Fond du Lac Tribal and Community College.
History: 1995 c 212 art 4 s 15; 1996 c 398 s 35; 2003 c 133 art 2 s 18
136F.13    Subdivision 1.[Repealed, 2003 c 133 art 4 s 9]
    Subd. 2.[Repealed, 1Sp2001 c 1 art 2 s 29; 2003 c 133 art 4 s 9]
136F.14 CAMPUS MERGER OR REORGANIZATION.
The board may merge or reorganize campuses or centers for the purpose of increased
efficiency, use of personnel, placement of programs, student access, and other needs as determined
by the board. The board shall report its action to the legislature.
History: 1995 c 212 art 4 s 16
136F.16 CAMPUS ESTABLISHMENT.
    Subdivision 1. New state colleges and universities. A new state college or university shall be
established only by specific legislation. For the purposes of this subdivision, campuses or centers
that are merged or reorganized under section 136F.14 are not new state colleges or universities.
    Subd. 2. Campus or center site. The board may determine the exact location and site
for each campus or center.
    Subd. 3. Off-campus sites. The board shall not establish off-campus centers or other
permanent sites to provide academic programs, courses, or student services without authorizing
legislation. For the purposes of this subdivision, the campus of Metropolitan State University is
the seven-county metropolitan area. This section does not apply to sites set up specifically for the
delivery of courses and programs through telecommunications.
History: 1995 c 212 art 4 s 17; 1996 c 398 s 36
136F.18 CAMPUS CLOSING.
The board may close a campus or center under its jurisdiction according to policies adopted
by the board. Prior to closing a campus or center, the board shall hold a public hearing on the
issue in the area which would be affected by the closing. At the hearing affected persons shall
have an opportunity to present testimony.
History: 1995 c 212 art 4 s 18; 1996 c 398 s 37

STUDENTS

136F.20 STUDENT HEALTH.
    Subdivision 1. Health service. The board shall offer health services for students at each
state university and may offer health services for students at each state college. The health
services may be offered either on campus or in the nearby community. The board may charge
each student a health service fee set by the board. The fees shall be used to maintain the health
service and equip and construct facilities. The fee may be used to contract for health, medical,
and hospitalization insurance for students. The fees shall be deposited in an activity fund and are
annually appropriated to the board for the purposes of this subdivision. Each state college and
university shall provide an annual financial accounting of the health service money to the board.
    Subd. 2. Health benefits. The board may contract for hospital benefits coverage and medical
benefits coverage for students in the state colleges and universities in the same manner as
authorized by section 43A.23 for state employees.
History: 1995 c 212 art 4 s 19
136F.22 STUDENT ASSOCIATIONS.
    Subdivision 1. Statewide. The board shall recognize one statewide student association for
the state universities and one for the community and technical colleges. Each campus student
association shall be affiliated with its statewide student association and all students enrolled on
those campuses shall be members of their respective statewide association.
    Subd. 2. Fees. Each statewide association shall set its fees to be collected by the board and
shall submit any changes in its fees to the board for review. The board may revise or reject the fee
change. Fees must be collected by each state college and university and shall be credited to each
association's account to be spent as determined by that association.
    Subd. 3. Consolidation. Changes may be made to student associations located on community
college, state university, technical college, or consolidated colocated campuses with the approval
of the students of each affected campus.
History: 1994 c 532 art 7 s 7; 1995 c 212 art 2 s 7; art 4 s 20,21,64; 1999 c 214 art 2 s 13
136F.23 STUDENT ASSOCIATIONS; PURCHASING AUTHORITY.
Notwithstanding chapter 16A or 16C, the student associations recognized by the Board of
Trustees of the Minnesota State Colleges and Universities may purchase goods or materials
through state purchasing authority for the ordinary day-to-day operations of the associations.
The student associations must be nonprofit 501(c)(3) organizations in order to qualify for this
authority. The Department of Administration may require that the purchase documents be
approved by appropriate officials in the board's central office.
History: 1995 c 212 art 4 s 22; 1998 c 386 art 2 s 46
136F.24 LEGAL COUNSELING AND SERVICE PROGRAM; FUNDING.
Notwithstanding section 8.06, or any other law or rule to the contrary, the official campus
student association at each state college or university may fund a program to provide legal
counseling and services to students of the state college or university. The money shall be from
an account of the state college and university activity funds allocated to the student associations
or other money assigned to them.
History: 1995 c 212 art 4 s 23
136F.25 ABSENCE FOR CHEMICAL ABUSE TREATMENT.
If a student is absent from a state college or university to participate in a chemical abuse
treatment program licensed by the state, the student, upon request, shall remain on the roll in the
educational program of the state college or university in which the student is enrolled, according
to policies adopted by the board.
History: 1995 c 212 art 4 s 24
136F.28 SOUTHWEST ASIA VETERANS; TECHNICAL COLLEGES.
    Subdivision 1. Grants. A Southwest Asia veteran who enrolls in a technical college
program, and who is a Minnesota resident whose entire education has not included completion of
at least one technical college program is eligible for a state grant of $500 per year if the veteran
has GI Montgomery Bill benefits, or $1,000 per year if the veteran does not have GI Montgomery
Bill benefits, until the veteran has completed the lesser of (1) 115 credits in a technical college
program, or (2) one technical college program. The grant is based on full-time attendance and
shall be prorated if the student is attending less than full time. To be eligible for the tuition relief,
a veteran who is discharged before July 1, 1993, must enroll in a technical college by July 1,
1995, and a veteran who is discharged on or after July 1, 1993, must enroll in a technical college
within two years of the date of discharge. All veterans enrolled under this program must maintain
a minimum of six credits per quarter. Total grants may not exceed the available appropriation.
    Subd. 2. Definitions. For the purpose of this section, the following terms have the meanings
given to them:
(a) "Southwest Asia veteran" means a person who:
(1) served in the active military service in any branch of the armed forces of the United
States any time between August 1, 1990, and February 27, 1992;
(2) became eligible for the Southwest Asia Service Medal as a result of the service;
(3) was a Minnesota resident at the time of induction into the armed forces and for the one
year immediately preceding induction; and
(4) has been separated or discharged from active military service under conditions other
than dishonorable.
(b) "Technical college" means a technical college or consolidated community technical
college under the governance of the Minnesota State Colleges and Universities.
History: 1995 c 212 art 4 s 25; 1997 c 183 art 3 s 19

CURRICULUM

136F.30 COURSES AND PROGRAMS.
The board shall review and approve or disapprove campus proposals for adding, deleting,
or substantially changing programs of study, including graduate and undergraduate academic
programs, training in professional, semiprofessional, and technical fields, and adult education.
The board shall avoid duplicate program offerings. The board may initiate activities to close
programs. The board shall place a high priority on ensuring the transferability of credit.
History: 1995 c 212 art 4 s 26; 1996 c 398 s 38
136F.31 CENTERS OF EXCELLENCE.
    Subdivision 1. Board designation. The board must designate at least three and up to
eight different program centers of excellence. The board must determine the form and required
information contained in applications from member institutions.
    Subd. 2. Center selection criteria. The board must select programs based on institutional
proposals demonstrating:
(1) the capacity to build multistate regional or national recognition of the program within
five years;
(2) a commitment to expanding the influence of the center to improve results in related
programs in participating institutions;
(3) the capacity to improve employment placement and income expectations of graduates
from the program;
(4) a strong partnership between a four-year and at least one two-year institution that
maximizes the leverage of academic and training capacities in each institution;
(5) a comprehensive academic plan that includes a seamless continuum of academic
offerings in the program area that supports career development at multiple levels in related
employment fields;
(6) a specific development plan that includes a description of how the institution will pursue
continuous improvement and accountability;
(7) identified commitments from employers that include measurable financial and
programmatic commitment to the center of excellence on the part of employers who will benefit
from the development of the center. A center for teacher education must demonstrate support
from local school districts;
(8) a commitment from the institution that the new designated funding will not supplant
current budgets from related programs;
(9) a strong existing program upon which the proposed center will build; and
(10) a separate fund for donations dedicated for the program within current institutional
foundations.
The board may adopt additional criteria that promote general goals of the centers. The
board shall give priority to programs that integrate the academic and training outcomes of the
center with business clusters that have a significant multiplier effect on the state's economy
based on projections of job, income, or general economic growth. The board shall consult with
the Department of Employment and Economic Development to identify these clusters and the
potential economic impact of developing a center for excellence.
    Subd. 3. Advisory committee and reports required. A center of excellence must create
an advisory committee representing local, statewide, and national leaders in the field. By
January 15 of each odd-numbered year, each designated center must provide a report to the
governor and the chairs of committees of the legislature with jurisdiction over higher education
finance, that includes annual and integrated data on program enrollment, student demographics,
student admission data, endowment growth, graduation rates, graduation outcomes, employer
involvement, indicators of student or graduate employment success, and other outcomes as
determined by the board. After a center has been in existence for three years, the report must
include measures of the program's impact on the local economy.
History: 2005 c 107 art 2 s 31
136F.32 DEGREES; DIPLOMAS; CERTIFICATES.
    Subdivision 1. Approval. The board may approve awarding of appropriate certificates,
diplomas, or degrees to persons who complete a prescribed curriculum.
    Subd. 2. Technical and consolidated technical colleges. (a) A technical college or
consolidated technical community college shall offer students the option of pursuing diplomas
or certificates in each technical education program, unless the board determines that a degree is
the only acceptable credential for career entry in a specific field. All vocational and technical
credits earned for a diploma or certificate shall be applicable toward any available degree in the
same program.
(b) Certificates and diplomas are credentials that demonstrate competence in a vocational
or technical area and, therefore, may include a general education component only as part of
an articulation agreement or to meet occupational requirements as established by the trade
or profession, or by the program advisory committee. Students shall be provided with applied
training in general studies as necessary for competence in the program area. Students who have
earned a certificate or diploma may earn a degree in the same field if they complete the general
education and other degree requirements.
    Subd. 3. Assessment. To reduce barriers to enrollment and to train a skilled workforce,
students may be assessed for skills necessary for competency in a technical or vocational field as
part of their program. The results of standardized assessment tests shall not prohibit enrollment
in a student's certificate or diploma program.
History: 1995 c 212 art 4 s 27; 1997 c 183 art 3 s 20; 1999 c 214 art 2 s 14,15; 2005 c
107 art 2 s 32
136F.36 TECHNICAL COLLEGE CARPENTRY PROGRAM CONSTRUCTION
AUTHORITY.
    Subdivision 1. Authority to acquire, develop, and sell real property for instructional
purposes. For the purpose of instructional construction by technical colleges, the board may
build, sell, or transfer personal property and may purchase or otherwise acquire real property that
it does not intend to use as a permanent educational site. The board may, upon the terms and
conditions it sets, develop, sell, transfer, or otherwise dispose of real property acquired under
this section. A sale, transfer, or other disposition must be at fair market value. For purposes of
this section, a sale price resulting from public bidding, public auction, or negotiations between
unrelated parties acting in their self-interest is fair market value. Where real property acquired
under this section cannot be sold, the board may lease the real property under the terms and
conditions it sets. The board may also contract for the use of real property it does not own.
Where the board makes improvements to real property it does not own, the landowner may
compensate the board for the fair market value, nominal consideration, or without consideration
as may be agreed on between the parties, of the board's contribution to the improvements. No
other authorizing legislation or legislative approval is required for an acquisition, improvement,
or sale under this section. Proceeds from the sale, lease, or improvement of real property under
this section are appropriated to the board.
    Subd. 2. Exemptions. The sale requirements of chapters 92 and 94 do not apply to this
section. The board shall develop policies for leasing requirements and construction supervision.
The board will normally competitively bid contracts related to instructional construction but may
negotiate contracts without competitive bidding where it deems appropriate.
    Subd. 3. Warranties. The board may, in its discretion, offer the warranties contained in
chapter 327A, less extensive warranties or no warranties.
    Subd. 4. Storage and retention of documents. Notwithstanding section 16A.58, the board
may store and retain at the respective technical college original documents from carpentry
program transactions, including but not limited to deeds, abstracts of title, and certificates of title.
    Subd. 5. State employee purchase. Notwithstanding section 15.054, personal or real
property resulting from instructional construction by technical colleges may be sold to a state
employee under the following conditions:
(1) there is reasonable public notice of the sale;
(2) the sale is by public auction, sealed bid, or listing with a licensed real estate broker;
(3) the state employee offers the highest price; and
(4) the state employee was not involved in the development of the property or the award
of the sale.
History: 1995 c 212 art 4 s 28; 1996 c 398 s 39; 1999 c 240 art 1 s 17; 2000 c 492 art
1 s 51-53

HUMAN RESOURCES

136F.40 APPOINTMENT OF PERSONNEL.
    Subdivision 1. Appointment procedure. The board shall appoint all presidents, teachers,
and other necessary employees and shall prescribe their duties consistent with chapter 43A.
Salaries and benefits of employees must be determined according to chapters 43A and 179A and
other applicable provisions.
    Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor, a
vice-chancellor, or a president, containing terms and conditions of employment. The terms of the
contract must be authorized under a plan approved under section 43A.18, subdivision 3a.
(b) Notwithstanding section 43A.17, subdivision 11, or other law to the contrary, a contract
under this section may provide a liquidated salary amount or other compensation if a contract is
terminated by the board prior to its expiration.
(c) Notwithstanding section 356.24 or other law to the contrary, a contract under this
section may contain a deferred compensation plan made in conformance with section 457(f) of
the Internal Revenue Code.
History: 1995 c 212 art 4 s 29; 2000 c 453 s 3; 1Sp2001 c 10 art 2 s 60; 2003 c 133 art 4 s 1
136F.41 ASSIGNMENT TO BARGAINING UNITS.
Actions by the board to merge or redesignate institutions or to promote collaborative efforts
between institutions must not unilaterally change faculty assignments to bargaining units provided
in section 179A.10, subdivision 2.
History: 1994 c 532 art 4 s 5; 1995 c 212 art 4 s 30,64
136F.42 PERSONNEL MANAGEMENT.
    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, in
consultation with the commissioners of employee relations and finance, may develop policies to
allow system office or campus employees on salaries, as defined in section 43A.17, subdivision 1,
to use negative time reporting in which employees report only that time for which leave is taken.
    Subd. 2. Travel policies. The board may adopt policies for colleges and universities to
approve and administer travel arrangements, other than reimbursement, for employees on campus,
and for the system office to provide the same services for employees in that office.
History: 1996 c 398 s 40; 2007 c 144 art 2 s 39
136F.43 EXTENDED LEAVES OF ABSENCE.
    Subdivision 1. Definition. As used in this section, "teacher" means a person on the
instructional or administrative staff of the state colleges and universities who is a member of the
Teachers Retirement Association under chapter 354, who is a member of a teachers retirement
fund association under chapter 354A, or who is covered by the Unclassified Employees Plan
under chapter 352D or Individual Retirement Account Plan under chapter 354B. It shall not
include a chancellor, deputy chancellor, or vice-chancellor.
    Subd. 2. Granting authority. The board may grant an extended leave of absence without
salary to a full-time teacher who has been employed by the board for at least five years and has at
least ten years of allowable service in one or a combination of the retirement plans specified in
subdivision 1. The maximum duration of an extended leave of absence pursuant to this section
shall be determined by mutual agreement of the board and the teacher at the time the leave is
granted and shall be at least three but no more than five years. An extended leave of absence under
this section shall be taken by mutual consent of the board and the teacher. No teacher may receive
more than one leave of absence under this section.
    Subd. 3. Reinstatement. A teacher on an extended leave of absence under this section shall
have the right to be reinstated to the same position or a similar position within the department or
program from which the leave was granted at the beginning of the school year which immediately
follows a year of extended leave of absence, unless the teacher is discharged or placed on
retrenchment or on layoff or the teacher's contract is terminated while the teacher is on the
extended leave. The board shall not be obligated to reinstate a teacher who is on an extended leave
of absence under this section unless the teacher advises the board of an intention to return before
February 1 in the school year preceding the school year in which the teacher wishes to return.
    Subd. 4. Seniority rights. A teacher who is reinstated to the same or similar position after
an extended leave under this section shall not lose tenure or credit for previous seniority in the
employing state college or university. A teacher shall not accrue seniority credit during the time
of a leave of absence under this section, except that a teacher at a state college or university
may accrue seniority credit during the leave, consistent with the conditions of the collective
bargaining agreement.
    Subd. 5. Salary. The years spent by a teacher on an extended leave of absence under this
section shall not be included in the determination of the teacher's salary upon reinstatement to the
same or similar position by the board. The credits earned by a teacher on an extended leave of
absence under this section shall not be included in the determination of the teacher's salary upon
reinstatement to the same or similar position by the board for a period of time equal to the time
of the extended leave of absence.
    Subd. 6. Alternate leave. The board may grant a teacher a leave of absence which is not
subject to the provisions of this section and either section 354.094 or 354A.091.
History: 1995 c 212 art 4 s 31; 2000 c 461 art 12 s 1-3
136F.44 ADMINISTRATIVE INTERACTION WITH STUDENTS.
    Subdivision 1. System and campus administrators. As part of their annual goal setting
activity, all unrepresented system and campus academic administrators are encouraged to
substantially increase their interaction with students through activities such as teaching a regularly
scheduled course or serving as an academic advisor. Actions to increase the interaction of students
and administrators under this section shall not displace permanent faculty or staff.
    Subd. 2. Information. The board shall include a summary of campus and system activities
related to subdivision 1 in its 1998-1999 biennial budget request.
History: 1995 c 212 art 2 s 8; 1996 c 398 s 41
136F.45 ANNUITIES.
    Subdivision 1. Purchase. (a) At the request of an employee, the board may negotiate and
purchase an individual custodial account under section 403(b)(7) of the Internal Revenue Code,
for an employee for retirement or other purposes from a company licensed to do business in
Minnesota, and may allocate a portion of the compensation otherwise payable to the employee as
salary for the purpose of paying the entire contribution due or to become due under the account.
The allocation shall be made in a manner that will qualify the custodial account contributions, or
portions thereof, for the benefit afforded under section 403(b)(7) of the current federal Internal
Revenue Code or any equivalent provision of subsequent federal income tax law. The employee
shall own the account and the employee's rights thereunder shall be nonforfeitable except for
failure to pay contributions.
(b) At its discretion, and in the same manner provided in paragraph (a), the board may
negotiate and purchase individual custodial accounts under section 403(b)(7) of the Internal
Revenue Code, for employees of the Minnesota Office of Higher Education as defined in section
136A.03. Participation under this paragraph must be in accordance with any applicable federal law.
    Subd. 1a. Subsequent vendor contracts. (a) The board may limit the number of vendors
under subdivision 1.
(b) In addition to any other tax-sheltered annuity program investment options, the board may
offer as an investment option the Minnesota supplemental investment fund administered by the
State Board of Investment under section 11A.17.
(c) The board shall actively solicit participation of and shall include as vendors lower
expense and "no-load" mutual funds or equivalent investment products as those terms are defined
by the federal Securities and Exchange Commission. To the extent that offering a lower expense
"no-load" product increases the total necessary and reasonable expenses of the program and if
the board is unable to negotiate a rebate of fees from the mutual fund or equivalent investment
product providers, the board may charge the participants utilizing the lower expense "no-load"
mutual fund products a fee to cover those expenses. The participant fee may not exceed one
percent of the participant's annual contributions or $20 per participant per year, whichever
is greater. Any excess fee revenue generated under this subdivision must be reimbursed to
participant accounts in the manner provided in subdivision 3a.
    Subd. 2. Deposits; payment. All amounts so allocated shall be deposited in an account
established by the board. Payment of custodial account contributions shall be made when due or
in accordance with the salary agreement entered into between the employee and the board. The
money in the account is not subject to the budget, allotment, and incumbrance system provided
for in chapter 16A.
    Subd. 3.[Repealed, 1998 c 390 art 2 s 21]
    Subd. 3a. Sharing of fees. (a) For purposes of this subdivision, a gross fee amount is defined
as the fees, commissions, and other charges which an annuity investment provider or vendor would
charge a typical consumer of those services for identical or similar products. A net fee amount is
an amount below the gross fee amount reflecting a negotiated reduction below gross fees.
(b) To offset the board's necessary and reasonable expenses incurred under subdivisions 1
and 2, the Minnesota State Colleges and Universities system is authorized to negotiate with an
annuity investment provider or vendor to establish a net fee amount.
(c) Under the negotiated arrangements, the Minnesota State Colleges and Universities
system is authorized to either make arrangements to recapture the difference between gross and
net fee amounts through a rebate from the annuity investment provider or vendor, or deduct those
amounts prior to transmitting the contributions or premiums.
(d) The revenues collected or retained under these negotiated arrangements must be used
to offset the board's necessary and reasonable expenses incurred under this section. Any excess
above the necessary and reasonable expenses must be allocated annually to the accounts of
the participants.
    Subd. 4. Periodic review. If the board so chooses, it may solicit bids or proposals for
options under subdivision 1. The board may retain consulting services to assist it in soliciting
and evaluating bids or proposals and in the periodic review of companies offering options under
subdivision 1. The board may annually establish a budget for its costs in the soliciting, evaluating,
and periodic review processes. The board may charge a proportional share of all costs related
to the periodic review to each company currently under contract and may charge a proportional
share of all costs related to soliciting and evaluating bids or proposals to each company selected
by the board. Contracts must provide that all options in subdivision 1 must: (1) be presented in
an unbiased manner, (2) be reported on a periodic basis to all employees participating in the
tax-sheltered annuity program, and (3) not be the subject of unreasonable solicitation of state
employees to participate in the program. The contract may not permit any person to jeopardize the
tax-deferred status of money invested by state employees under this section. All costs or fees in
relation to the bid solicitation and evaluation process for the options provided under subdivision 1
must be paid by the underwriting companies ultimately selected by the board.
History: 1995 c 212 art 4 s 32; 1997 c 241 art 8 s 1,2; 1998 c 390 art 2 s 3,4; 2000 c 461 art
12 s 4; 2003 c 133 art 4 s 2,3; 2005 c 107 art 2 s 60; 2006 c 271 art 3 s 1
136F.46 NONPROFIT FOUNDATION PAYROLL DEDUCTION.
    Subdivision 1. Request; warrant. The commissioner of finance, upon the written request of
an employee of the board, may deduct from an employee's salary or wages the amount requested
for payment to a nonprofit state college or university foundation meeting the requirements in
subdivision 2. The commissioner shall issue a warrant for the deducted amount to the nonprofit
foundation. The Penny Fellowship and the Nellie Stone Johnson Scholarship Program of the
Minnesota State University Student Association shall be considered nonprofit state college and
university foundations for purposes of this section.
    Subd. 2. Foundation application; approval. A nonprofit state college or university
foundation that desires to receive contributions through payroll deductions shall apply to the
board for approval to participate in the payroll deduction plan. The board may approve the
application for participation if the foundation:
(1) is tax exempt under section 501(c)3 of the Internal Revenue Code of 1986, as amended;
(2) qualifies for tax deductible contributions under section 170 of the Internal Revenue
Code of 1986, as amended;
(3) secures funding solely for distribution to a state college or university or for distribution
to students in the form of scholarships; and
(4) has been incorporated according to chapter 317A for at least one calendar year before
the date it applies to the board for approval.
    Subd. 3. Solicitation. Efforts to secure payroll deductions authorized in subdivision 1 may
not interfere with, require a modification of, nor be conducted during the period of a payroll
deduction fund drive for employees authorized by section 309.501.
History: 1995 c 212 art 4 s 33; 1998 c 384 s 9
136F.47 PENSION PLAN.
The board shall assume the administrative responsibility for the individual retirement account
plans in chapters 354B and 354C formerly administered separately by the State University Board
and the Community College Board. The separate plans and the former plan administration must
be merged into a single individual retirement account plan and plan administration covering
eligible employees of the board, eligible employees of system institutions, and other eligible
employee groups who are covered by the plan under section 354B.21.
History: 1994 c 572 s 2; 1995 c 212 art 4 s 64; 1999 c 86 art 1 s 36
136F.48 EMPLOYER-PAID HEALTH INSURANCE.
(a) This section applies to a person who:
(1) retires from the Minnesota State Colleges and Universities system with at least ten years
of combined service credit in a system under the jurisdiction of the Board of Trustees of the
Minnesota State Colleges and Universities;
(2) was employed on a full-time basis immediately preceding retirement as a faculty member
or as an unclassified administrator in the Minnesota State Colleges and Universities system;
(3) begins drawing a retirement benefit from the Individual Retirement Account Plan or an
annuity from the Teachers Retirement Association, from the General State Employees Retirement
Plan or the Unclassified State Employees Retirement Program of the Minnesota State Retirement
System, or from a first class city teacher retirement plan; and
(4) returns to work on not less than a one-third time basis and not more than a two-thirds
time basis in the system from which the person retired under an agreement.
(b) Initial participation, the amount of time worked, and the duration of participation under
this section must be mutually agreed upon by the president of the institution where the person
returns to work and the employee. The president may require up to one-year notice of intent to
participate in the program as a condition of participation under this section. The president shall
determine the time of year the employee shall work. The employer or the president may not
require a person to waive any rights under a collective bargaining agreement as a condition
of participation under this section.
(c) For a person eligible under paragraphs (a) and (b), the employing board shall make
the same employer contribution for hospital, medical, and dental benefits as would be made if
the person were employed full time.
(d) For work under paragraph (a), a person must receive a percentage of the person's salary
at the time of retirement that is equal to the percentage of time the person works compared to
full-time work.
(e) If a collective bargaining agreement covering a person provides for an early retirement
incentive that is based on age, the incentive provided to the person must be based on the person's
age at the time employment under this section ends. However, the salary used to determine the
amount of the incentive must be the salary that would have been paid if the person had been
employed full time for the year immediately preceding the time employment under this section
ends.
(f) A person who returns to work under this section is a member of the appropriate bargaining
unit and is covered by the appropriate collective bargaining contract. Except as provided in this
section, the person's coverage is subject to any part of the contract limiting rights of part-time
employees.
History: 1995 c 212 art 4 s 34,64; 1995 c 262 art 1 s 2; 1997 c 183 art 3 s 39; 1998 c 390
art 2 s 5; 1999 c 222 art 19 s 2; 2000 c 461 art 2 s 1
136F.49 LICENSURE.
The board shall adopt policies for licensure of teaching personnel in technical colleges
and for vocational technical instructors teaching outside the Minnesota State Colleges and
Universities system. The board may establish a processing fee for the issuance, renewal, or
extension of a license.
History: 1995 c 212 art 4 s 35; 1997 c 183 art 3 s 21

ADMINISTRATION

136F.50 COOPERATION OR PROMOTION OF A STATE COLLEGE OR UNIVERSITY.
The board, system office, and the campuses may cooperate by contractual arrangement or
otherwise with responsible persons, firms, corporations, associations, or governmental agencies
to promote short courses, research, and other programs and activities in the state colleges and
universities as in the judgment of the board, system office, or the campus contribute to the
development of the state colleges and universities and the welfare of their students.
History: 1995 c 212 art 4 s 36; 1996 c 398 s 42
136F.52 LOCAL ADVISORY COMMITTEES.
    Subdivision 1. Appointment. The president may appoint a local advisory committee for
each campus. Committee members must be qualified people who have knowledge of and interest
in the campus. The board shall define the role and authority of the advisory committees and
establish procedures for the appointment, terms, and termination of members. The president or an
appointee of the president shall regularly meet and consult with the local advisory committee.
    Subd. 2. Compensation. Advisory committee members shall serve without compensation
and without reimbursement for expenses.
History: 1991 c 356 art 9 s 6; 1995 c 212 art 4 s 37,64
136F.526 AUDITS.
Each college and university shall be audited as provided by board policy. The policy shall be
designed to ensure financial integrity, necessary internal controls, and appropriate accordance
between board policies and campus expenditures. The college or university may arrange for any
additional audits it desires by contracting with the legislative auditor or a private certified public
accountant. Nothing in this section shall limit the authority of the legislative auditor to perform
selected scope audits or other duties of the office as provided under section 3.971.
History: 1996 c 398 s 43
136F.53 PARKING AND TRAFFIC REGULATION.
    Subdivision 1. Campus parking authority. Notwithstanding section 169.966, a state college
or university may adopt and enforce policies, regulations, or ordinances for the regulation of
traffic and parking in parking facilities and on private roads and roadways situated on property
owned, leased, occupied, or operated by the state college or university.
    Subd. 2. Fines; fees. A state college or university may collect a fine and a towing fee for
a violation. Money collected under this section by a state college or university is annually
appropriated to the state college or university for parking lot maintenance, improvement, and
policy enforcement.
    Subd. 3. Disputes. A state college or university shall establish procedures to resolve a
dispute arising from enforcement of a policy.
    Subd. 4. Procedure. Chapter 14 does not apply to this section.
    Subd. 5. Enforcement. Every sheriff, police officer, or other peace officer shall have
authority to enforce all policies and ordinances adopted pursuant to this section and shall have
authority to arrest and prosecute offenders for violations of law.
History: 1995 c 212 art 4 s 38; 1996 c 398 s 44,45; 2005 c 10 art 2 s 4
136F.54 STUDENT HOUSING MANAGEMENT.
The board may contract with student housing facility owners or on-site management firms to
assist in the operation, control, and management of the facility.
History: 1995 c 212 art 4 s 39
136F.56 [Repealed, 2003 c 133 art 4 s 9]
136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION.
    Subdivision 1. Authorization. A state college or university may operate a bookstore in a
state college or university building, or may allocate space in a state college or university building
and permit a person or corporation to operate a bookstore without rent at the campus' pleasure and
on such conditions as the board may impose. The board may provide insurance, at no cost to the
state, for the inventory of a bookstore a state college or university conducts in its building.
    Subd. 2. Course material. (a) An instructor shall attempt to provide adequate notice
to a bookstore of the intention to order required or recommended course material so that the
bookstore can provide information for the instructor's consideration prior to placing an order for
the course material.
    (b) A bookstore must make reasonable efforts to obtain from publishers or other sources,
prior to the time an instructor requests the bookstore to order course material, the following
information, including, but not limited to:
    (1) the title, edition, author, and International Standard Book Number (ISBN) of the course
material;
    (2) the price for the course material;
    (3) whether the course material is bundled with optional material, whether it can be
unbundled, and the price for each bundled and unbundled component;
    (4) whether the material is available in an alternative format and the cost for the alternatively
formatted material;
    (5) the availability of the course material currently and in the future;
    (6) changes to the course material from the previous edition, the revision date, availability,
and cost for that edition, if available; and
    (7) any known plans for future revisions of the course material.
    (c) An instructor ordering course material through a bookstore shall consider the information
received from the bookstore prior to placing the final order.
    Subd. 3. Notice to purchase. (a) An instructor shall make reasonable efforts to notify a
bookstore of the final order for required and recommended course material at least 30 days prior
to the commencement of the term.
    (b) The bookstore must make reasonable efforts to notify students of the following
information concerning the required and recommended course material at least 15 days prior to the
commencement of the term for which the course material is required including, but not limited to:
    (1) the title, edition, author, and International Standard Book Number (ISBN) of the course
material;
    (2) the price for the course material;
    (3) whether the required course material is bundled with optional material, whether it can be
unbundled, and the price for each bundled and unbundled component; and
    (4) whether the material is available in an alternative format and the cost for the alternatively
formatted material.
    Subd. 4. System responsibility. The board shall, to the extent it considers necessary,
adopt uniform forms for bookstores to request information under subdivision 2. The board shall
encourage faculty to utilize the information received under subdivision 2 to achieve the lowest
cost to students for course materials consistent with the academic freedom and choice of the
faculty member.
History: 1995 c 212 art 4 s 41; 1996 c 398 s 46; 2007 c 144 art 2 s 40
136F.581 PURCHASES AND CONTRACTS.
    Subdivision 1. Authority for purchases and contracts. The board and the colleges and
universities are subject to the provisions of section 471.345. In addition to the contracting
authority under this chapter, the Board of Trustees may utilize any contracting options available to
the commissioner of administration under chapter 16A, 16B, or 16C.
    Subd. 2. Policies and procedures. The board shall develop policies for purchases and
contracts that are consistent with the authority granted in subdivision 1. The policies and
procedures shall be developed through the system and campus labor management committees and
shall include provisions requiring the system and campuses to determine that they cannot use
available staff before contracting with additional outside consultants or services. In addition, each
college and university, in consultation with the office of the chancellor, shall develop procedures
for those purchases and contracts that can be accomplished by a college and university without
board approval. The board policies must allow each college and university the local authority to
enter into contracts for construction projects of up to $250,000 and to make other purchases of up
to $50,000, without receiving board approval. The board may allow a college or university local
authority to make purchases over $50,000 without receiving board approval.
    Subd. 3. Procurement from designated businesses. The policies and procedures must
include provisions for procurement, including construction, from small targeted group businesses
and businesses from economically disadvantaged areas designated under section 16C.16. The
board, colleges, and universities shall use the methods contained in section 471.345, subdivision
8
, for such purchasing, or may develop additional methods in which the cost percentage
preferences are consistent with the provision of section 16C.16, subdivisions 6, paragraph (a),
and 7, or consistent with the provisions of the University of Minnesota's targeted group business
purchasing program.
    Subd. 4. Professional or technical services. (a) The board shall develop policies for
entering into contracts for professional or technical services, other than instructional services.
The policies must allow each college and university the authority to enter into contracts for
professional or technical services up to $15,000 without board approval. The board may allow
a college or university authority to enter into contracts for professional or technical services
over $15,000 without receiving board approval.
(b) Each college and university, in consultation with the system office, shall develop
procedures to enter into contracts for professional or technical services.
(c) The policies and procedures developed by the board and by each college and university
for professional or technical service contracts must be done in consultation with employees and
their exclusive bargaining representatives and must address topics such as employee protections,
information availability and reporting, conflict of interest, and renewal restrictions.
History: 1996 c 398 s 47; 1997 c 183 art 3 s 22; 1998 c 386 art 2 s 48; 2003 c 133 art 4 s 4,5
136F.582 [Repealed, 2003 c 133 art 4 s 9]
136F.59 TECHNICAL EQUIPMENT.
    Subdivision 1.[Repealed, 1996 c 398 s 66]
    Subd. 2.[Repealed, 2003 c 133 art 4 s 9]
    Subd. 3. Office of Enterprise Technology. The Office of the Chancellor and the campuses
shall cooperate with the Office of Enterprise Technology in its responsibility to coordinate
information and communications technology development throughout the state.
History: 1995 c 212 art 4 s 53; 1997 c 212 s 1; 2003 c 133 art 4 s 6; 2005 c 156 art 5 s 23

FACILITIES

136F.60 COLLEGE AND UNIVERSITY SITES; ACQUISITION.
    Subdivision 1. Purchase of neighboring property. The board may purchase property
adjacent to or in the vicinity of the campuses as necessary for the development of a state college
or university. Before taking action, the board shall consult with the chairs of the senate Finance
Committee and the house Ways and Means Committee about the proposed action. The board shall
explain the need to acquire property, specify the property to be acquired, and indicate the source
and amount of money needed for the acquisition. The amount needed may be spent from sums
previously appropriated for purposes of the state colleges and universities, including, but not
limited to, general fund appropriations for instructional or noninstructional expenditures, general
fund appropriations carried forward, or state college and university activity fund appropriations.
The board may pay relocation costs, at its discretion, when acquiring property.
    Subd. 2. Methods of acquisition and real property transactions. (a) If money has
been appropriated to the board to acquire lands or sites for public buildings or real estate, the
acquisition may be by gift, purchase, or condemnation proceedings. Condemnation proceedings
must be under chapter 117.
(b) The board may accept gifts to improve or acquire facilities as provided in this paragraph:
(1) for remodeling existing facilities if the remodeling does not materially increase the
square footage of the facility;
(2) for the acquisition, construction, or remodeling costs of facilities for which state capital
appropriations have been made and whose use will not be substantially changed; or
(3) for capital projects not authorized by the legislature if the board first certifies that project
revenues, other gifts or grants, or other sources of capital funds are available for project costs and
that no tuition revenues or state or federal appropriations are used for the capital or operating
costs, including all program costs, salaries, and benefits, of the facility.
(c) The board may convey or lease real property under the board's control, with or without
monetary consideration, to provide a facility for the primary benefit of a state college or university
or its students if the board certifies that project revenues, other gifts or grants, or other sources of
funds are available for project costs and that no tuition revenues or state or federal appropriations
are used for the capital cost of the facility. Agreements under this paragraph must demonstrate
to the board's satisfaction the financial viability of the proposed project, including all proposed
financial and contractual obligations, and operating costs, including all program costs, salaries
and benefits, and other costs reasonably expected to be incurred or binding upon the college or
university. Siting and design of the facility must be consistent with the campus master plan and
Minnesota State Colleges and Universities building standards. Agreements under this paragraph
to convey, or to lease for a term not to exceed 30 years, subject to section 16A.695, may be
made following requests for proposal or by direct negotiation. Conveyances by the board under
this paragraph must be by quitclaim deed in a form approved by the attorney general. Land
conveyed by the board must revert to the state if it is no longer used for the primary benefit of
a state college or university or its students.
(d) For purposes of this subdivision, "facility" includes student unions, recreational centers
and athletic centers, or facilities for which state capital appropriations have been made and the
use of which will not be substantially changed. "Facility" also includes self-supporting student
housing.
(e) The board must report in a timely manner to the chairs of the house and senate committees
with jurisdiction over higher education finance, capital investment, and ways and means any
capital project under paragraphs (b) or (c) with a cost of $3,000,000 or more.
    Subd. 3. Easements. (a) The board may grant permanent or temporary easements over,
under, or across any land under its jurisdiction for reasonable purposes determined by the board as
provided in paragraphs (b) and (c).
(b) The board may grant a revocable easement or permit under this paragraph. An easement
or permit is revocable by written notice given by the board if at any time its continuance will
conflict with a public use of the land over, under, or upon which it is granted, or for any other
reason. The notice must be in writing and is effective 90 days after the notice is sent by certified
mail to the last known address of the holder of record of the easement. If the address of the holder
of the easement or permit is not known, it expires 90 days after the notice is recorded in the office
of the county recorder of the county in which the land is located. Upon revocation of an easement
or permit, the board may allow a reasonable time to vacate the premises affected.
(c) State land subject to an easement or permit granted by the board remains subject to sale
or lease, and the sale or lease does not revoke the permit or easement granted.
    Subd. 4. Transfer of state college or university-owned improvements. The board
may sell, transfer, or otherwise dispose of an improvement located on state-owned lands, the
compensation for which shall be determined by the board. The sale, transfer, or disposition must
be accomplished by a bill of sale describing the improvement transferred and the terms and
conditions of the sale or transfer. Proceeds from the sale, transfer, or disposition must be retained
by the board unless otherwise provided by section 16A.695 or other law.
    Subd. 5. Disposition of surplus property. (a) The board may declare state lands under its
control that are no longer needed by the Minnesota State Colleges and Universities system to be
surplus and may offer them for public sale in a manner consistent with the procedures set forth in
sections 16B.282 to 16B.286 for disposition of state lands by the commissioner of administration.
The parcels must not be exchanged or transferred for no or nominal consideration.
(b) Proceeds from the sale or disposition of land under this subdivision, after paying all
expenses incurred in selling or disposing of the land and then paying any amounts due under
section 16A.695, are appropriated to the board for use for capital projects at the institution that
was responsible for management of the land.
History: 1995 c 212 art 4 s 42; 1999 c 240 art 1 s 18; 2000 c 492 art 1 s 54; 1Sp2001 c 1 art
2 s 16; 2002 c 393 s 54; 2003 c 133 art 4 s 7; 2005 c 20 art 1 s 35
136F.61 STATE BUILDING CODE.
All Minnesota state college and university facilities are subject to the provisions of the State
Building Code under chapter 16B and the State Fire Code under chapter 299F.
History: 1996 c 398 s 49; 2005 c 136 art 9 s 14
136F.64 CONSTRUCTION, IMPROVEMENT, AND REPAIR OF FACILITIES.
    Subdivision 1. General authority; construction; improvements. (a) Specific legislative
authority is not required for repairs or minor capital projects financed with operating appropriation
or institutional receipts that:
(1) are undertaken for asset preservation or code compliance purposes; or
(2) do not materially increase the net square footage of the institution; and
(3) do not materially increase the costs of instructional programs.
For any project under this section with a cost in excess of $50,000, unless the Board of
Trustees determines that an emergency exists, the board must notify the chair of the Finance
Committee of the senate, and the chairs of the Ways and Means Committee and the Capital
Investment Committee of the house in writing before incurring any contractual obligations.
(b) The board shall supervise and control the preparation of plans and specifications for the
construction, alteration, repair, or enlargement of state college and university buildings, structures,
and improvements for which appropriations are made to the board. The board shall advertise for
bids and award contracts in connection with the improvements, supervise and inspect the work,
approve necessary changes in the plans and specifications, approve estimates for payment, and
accept the improvements when completed according to the plans and specifications.
    Subd. 2. Plans. Plans and specifications must be accompanied by a detailed statement of the
cost, quality, and description of all material and labor required for the completion of the work.
No plan may be adopted, and no improvement made or building constructed, that contemplates
the expenditure for its completion of more money than the appropriation for it, unless otherwise
provided by law.
    Subd. 3. Dispute resolution. In contracting for projects, the board must not restrict its access
to litigation or limit its methods of redress to arbitration or other nonjudicial procedures.
History: 1994 c 532 art 7 s 8; 1995 c 212 art 4 s 43,44,64; 2000 c 492 art 1 s 55
136F.65 ACCEPTANCE OF FEDERAL MONEY.
The Board of Trustees is hereby designated the state agency empowered to accept any
and all money provided for or made available to this state by the United States of America or
any department or agency thereof for the construction and equipping of any building under
the control of the Board of Trustees in accordance with the provisions of federal law and any
rules or regulations promulgated thereunder and are further authorized to do any and all things
required of this state by such federal law and the rules and regulations promulgated thereunder in
order to obtain such federal money.
History: 2003 c 133 art 4 s 8
136F.66 CAPITAL PROJECTS BIDDING PROCEDURES.
In awarding contracts for capital projects under section 136F.64, the board shall consider
the documentation provided by the bidders regarding their qualifications, including evidence of
having successfully completed similar work, or delivering services or products comparable to that
being requested. The board shall set procedures to administer this section, which must include
practices that will assist in the economic development of small businesses, small targeted group
businesses, and businesses in economically disadvantaged areas designated under section 16C.16.
History: 1995 c 212 art 4 s 45,64; 1998 c 386 art 2 s 49
136F.67 FINANCING OF CHILD CARE; PARKING.
    Subdivision 1. Authorization. A technical college or a community college must not seek
financing for child care facilities or parking facilities through the Higher Education Facilities
Authority, as provided in section 136A.28, subdivision 7, without the explicit authorization of
the board.
    Subd. 2. Parking. State appropriations for repair or construction of parking facilities must
not be used for more than two-thirds of the repair or construction cost of a parking facility at
any technical college or community college campus. The campus must provide the remaining
costs through local revenue.
History: 1996 c 398 s 50
136F.68 STATE PROPERTY AGREEMENTS.
Notwithstanding section 16B.24, or other law to the contrary, the board may enter into
an agreement with an intermediate school district for the cooperative use of state property for
any period of time specified in the agreement.
History: 1995 c 212 art 4 s 46; 2002 c 220 art 3 s 6

FINANCE

136F.70 TUITION; FEES; ACTIVITIES FUNDS.
    Subdivision 1. Tuition. The board shall set rates of tuition for the various instructional
programs. The board may waive tuition for certain persons, courses, and programs.
    Subd. 2. Fees. The board may prescribe fees to be charged students for student unions, state
college and university activities, functions, and purposes.
    Subd. 3. Refunds. The board may make refunds to students for tuition, activity fees, union
fees, and any other fees from imprest cash funds. The imprest cash fund shall be reimbursed
periodically by checks or warrants drawn on the funds and accounts to which the refund should
ultimately be charged. The amounts necessary to pay the refunds are appropriated from the
funds and accounts to which they are charged.
History: 1995 c 212 art 4 s 47
136F.701 REFUND OF TUITION.
(a) Any student who is a resident of the state, has enrolled in the state colleges and
universities and paid tuition for the course, and who, prior to the termination of the school year
for which the tuition was paid, enlisted or has been inducted into the military service of the United
States, either voluntarily or pursuant to the present selective service law, is entitled to the refund
of all tuition paid for which credit cannot properly be given.
(b) The administrative officers of the state colleges and universities shall refund to the
students any tuition so paid. Any student making application for refund of any paid tuition must
furnish to the administrative officers of the state colleges and universities a certificate from the
proper officers reciting the fact of the enlistment or the induction of the student into the military
service of the United States.
History: 1Sp2001 c 1 art 2 s 17
136F.71 RECEIPTS.
    Subdivision 1. Appropriation of receipts. All receipts of every kind, nature, and description,
including student tuition and fees, all federal receipts, aids, contributions, and reimbursements,
but not including receipts attributable to state colleges and universities activity funds, in all the
state colleges and universities are appropriated to the board, but are subject to budgetary control
to be exercised by the commissioner of finance. The balance in these funds shall not cancel on
June 30, but shall be available in the next fiscal year.
    Subd. 2. Activity funds. All receipts attributable to the state colleges and universities activity
funds are appropriated to the board and are not subject to budgetary control as exercised by the
commissioner of finance.
    Subd. 3. Interest income. Beginning July 1, 1997, interest income attributable to general
fund dedicated receipts of the board is appropriated to the board. The board shall allocate the
income proportionately among the colleges and universities. The board shall report this income
separately in its biennial budget requests.
    Subd. 4. Banking services. Notwithstanding section 16A.27, the board shall have authority
to control the amount and manner of deposit of all receipts described in this section in depositories
selected by the board. The board's authority shall include specifying the considerations, financial
activities, and conditions required from the depository, including the requirement of collateral
security or a corporate surety bond as described in section 118A.03. The board may compensate
the depository, including paying a reasonable charge to the depository, maintaining appropriate
compensating balances with the depository, or purchasing non-interest-bearing certificates of
deposit from the depository for performing depository-related services.
History: 1995 c 212 art 4 s 48; 1996 c 398 s 51; 2007 c 144 art 2 s 41,42
136F.72 FUNDS.
    Subdivision 1. Activity funds. The board may establish in each state college and university
a fund to be known as the activity fund. The purpose of these funds shall be to provide for the
administration of state college and university activities designed for student recreational, social,
welfare, and educational pursuits supplemental to the regular curricular offerings. The activity
funds shall encompass accounts for student activities, student health services authorized college
and university agencies, authorized auxiliary enterprises, federal, state, and private student
financial aid, gifts and endowments, and other accounts as the board may prescribe.
    Subd. 2. Administrative fund and accounts. The board may establish a fund within
the board office for management of employee retirement funds. The board may establish an
administrative fund at each state college and university or within the board office for the
administration of contracts, student equipment purchases, and receipt and transfer of foreign
program money.
    Subd. 3. Administration. Each college and university, independent of other authority and
notwithstanding chapters 16A, 16B, and 16C, shall administer its activity funds. The board,
independent of other authority and notwithstanding chapters 16A, 16B, and 16C, shall administer
the administrative fund established in the system office. All activity fund money collected shall be
administered under the policies of the board subject to audit of the legislative auditor.
    Subd. 4. Imprest cash funds. The board may establish an imprest cash fund in each of
its state colleges and universities.
History: 1995 c 212 art 4 s 49; 1996 c 398 s 52; 1997 c 183 art 3 s 23; 1998 c 386 art 2 s 50
136F.73 CASH OVER AND SHORT ACCOUNT OF IMPREST CASH FUND.
The board may establish a cash over and short account within the imprest cash fund for
each state college and university. This account shall be used to record on a daily basis overages
and shortages of cash receipts. At the end of each fiscal year, the board shall credit or debit the
overage or shortage from each state college or university to the board maintenance and equipment
appropriation account. In the instance of a debit balance remaining in any cash over and short
accounts, the board may transfer from the maintenance and equipment appropriation account
money sufficient to offset such debit balance. The commissioner of finance shall make the
appropriate adjustments and entries on the general books of account of the state.
History: 1995 c 212 art 4 s 50
136F.74 CARRYOVER AUTHORITY.
The board may carry over any unexpended balance from its appropriation from the first year
of a biennium into the second year of the biennium. The board may carry over any unexpended
balance into the following biennium. The amounts carried over must not be taken into account in
determining state appropriations and must not be deducted from a later appropriation.
History: 1995 c 212 art 4 s 51
136F.76 LITIGATION AWARDS.
Notwithstanding any law to the contrary, the board may keep money received from
successful litigation by or against the board. Awards made to the state or the board resulting from
litigation against or by the board must be kept by the board to the credit of the account from which
the litigation was originally funded. An award that exceeds the costs incurred in the litigation
shall be used by the board for repair or replacement projects.
History: 1995 c 212 art 4 s 52
136F.77 EQUITY INVESTMENTS.
    Subdivision 1. Powers of board. The board may acquire an interest in a product or a private
business entity for the purpose of developing and providing educational materials and related
programs or services to further the mission of the Minnesota State Colleges and Universities and
foster the economic growth of the state. The board may enter into joint venture agreements
with private corporations to develop educational materials and related programs or services.
Any proceeds from the investments or ventures are appropriated to the board. The state is not
liable for any obligations or liabilities that arise from investments under this section. The board
must report annually by September 1 to the legislature regarding its earnings from partnerships
and the disposition of those earnings.
    Subd. 2. Consultation required. Prior to entering into a joint venture agreement under this
section, the board shall consult with appropriate exclusive bargaining representatives and must
address topics such as employee protections, instructional services, information availability,
and reporting conflicts of interest.
    Subd. 3. No abrogation. Nothing in this section shall abrogate the provisions of sections
43A.047 and 136F.581.
History: 2000 c 392 s 5; 2000 c 488 art 2 s 8
136F.79 SOLE STATE AGENCY.
The board is the sole state agency to receive and disburse federal funds authorized by the
Vocational Education Act of 1963, as amended in the education amendments of 1976, Public Law
94-482, and Code of Federal Regulations, title 34, part 400. The board shall develop and submit
the state plan for vocational technical education. The board shall develop the state plan according
to terms of agreement with the state Board of Education.
History: 1995 c 212 art 4 s 54

GRANTS AND GIFTS

136F.80 GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.
    Subdivision 1. Receipt and acceptance. The board may apply for, receive, and accept on
behalf of the state and for the benefit of any state college or university any grant, gift, bequest,
devise, or endowment that any person, firm, corporation, foundation, or association may make to
the board for the purposes of the state colleges and universities, or any federal, state, or private
money made available for the purpose of providing student financial aid at the state colleges
and universities. The board may use any money given to it or to any of the state colleges and
universities consistent with the terms and conditions under which the money was received and for
the purposes stated. All moneys under this subdivision are appropriated to the board for use in
the colleges and universities and shall be administered within the college and university activity
funds. These moneys shall not be taken into account in determining appropriations or allocations.
All taxes and special assessments constituting a lien on any real property received and accepted
by the board under this section shall be paid in full before title is transferred to the state.
    Subd. 2. Deposit of money. The board shall provide by policy, in accordance with provisions
of chapter 118A, for the deposit of all money received or referred to under this section. Whenever
the board shall by resolution determine that there are moneys in the state college or university
funds not currently needed, the board may by resolution authorize and direct the president of the
college or university to invest a specified amount in securities as are duly authorized as legal
investments for savings banks and trust companies. Securities so purchased shall be deposited and
held for the board by any bank or trust company authorized to do a banking business in this state.
Notwithstanding the provisions of chapter 118A, the State Board of Investment may invest assets
of the board, colleges, and universities when requested by the board, college, or university.
History: 1995 c 212 art 4 s 55; 1996 c 398 s 53; 1997 c 183 art 3 s 24
136F.81 TRANSFER OF GIFTS.
A college or university that receives a gift or bequest that is intended for purposes performed
by a foundation approved under section 136F.46 may transfer the money to its foundation,
provided the money is used only for public purposes.
History: 1997 c 183 art 3 s 25

BONDS

136F.90 BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND
UNIVERSITIES, DUTIES.
    Subdivision 1. Duties. For the state universities, the Board of Trustees of the Minnesota
State Colleges and Universities may:
(1) acquire by purchase or otherwise, construct, complete, remodel, equip, operate, control,
and manage residence halls, dormitories, dining halls, student union buildings, parking facilities,
and any other similar revenue-producing buildings of such type and character as the board finds
necessary for the good and benefit of the state universities, and may acquire property whether real,
personal, or mixed, by gift, purchase, or otherwise; provided that no contract for the construction
of any building shall be entered into until financing has been approved by the legislature;
(2) maintain and operate any buildings or structures and charge for their use, and conduct
any activities that are commonly conducted in connection with the buildings or structures;
(3) enter into contracts for the purposes of sections 136F.90 to 136F.98;
(4) acquire building sites and buildings or structures by gift, purchase, or otherwise and
pledge the revenues from them for the payment of any bonds issued for that purpose as provided
in sections 136F.90 to 136F.98;
(5) borrow money and issue and sell bonds in an amount or amounts the legislature authorizes
for the purpose of acquiring, constructing, completing, remodeling, or equipping any buildings or
structures, and acquiring sites, and refund and refinance the bonds by the issuance and sale of
refunding bonds when the board finds that it is in the public interest. The bonds shall be sold and
issued by the board in the manner and upon the terms and conditions provided by chapter 475,
except as otherwise provided in this section. The bonds are payable only from and secured by an
irrevocable pledge of the revenues to be derived from the operation of any buildings or structures
acquired, constructed, completed, remodeled, or equipped in whole or in part with the proceeds
of the bonds and from other income and revenues described in section 136F.92, clause (1), the
board by resolution specifies, and notwithstanding this limitation all bonds issued under sections
136F.90 to 136F.98 shall have the qualities of negotiable instruments under the laws of this state.
The legislature shall not appropriate money from the general fund to pay for these bonds.
    Subd. 2. Form. The bonds may:
(1) bear the date or dates;
(2) mature serially at a time or times not exceeding 40 years from their date or dates;
(3) be in the form;
(4) carry the registration privileges;
(5) be payable at a place or places;
(6) be subject to terms of redemption prior to maturity with or without premium;
(7) be delivered to the purchasers at times and places; and
(8) contain terms and covenants, consistent with section 136F.98, all as may be provided by
resolution of the board authorizing the issuance of the bonds.
    Subd. 3. Execution. The bonds must be executed by the officers of the board designated by
the board to execute them, in the manner authorized by section 475.55.
    Subd. 4. Bond statement; registration. Each bond shall state upon its face that it is payable
solely from and secured by an irrevocable pledge of the revenues derived from the operation of
any buildings or structures acquired, constructed, completed, remodeled, or equipped in whole or
in part with the proceeds of the sale of the bonds and from other income and revenues described
in section 136F.92, clause (1), as specified in the resolution providing for its issue, and that it does
not constitute a debt or obligation of the state of Minnesota within the meaning or application of
any constitutional or statutory limitation or provision. A copy of the proceedings taken by the
board in the issuance of the bonds shall be filed with the commissioner of finance.
    Subd. 5. Bond securities. If the board by resolution determines that its treasurer possesses
money not currently needed, or that is set aside in a reserve, the board in the resolution may direct
the treasurer to invest a specified amount of the money in securities of the types described in
section 118A.04. The securities must be deposited with and held for the board by the treasurer. If
the invested money is needed by the board it shall direct the treasurer to sell all or a designated
amount of the securities. Money collected from the investment by the treasurer, as principal,
interest, or proceeds of sales, must be credited to and made a part of the fund and account for
which the investment is made.
    Subd. 6. Payment of interest; outstanding revenue bonds. Except as provided in this
subdivision, the board may irrevocably appropriate and use any money, other than direct state
appropriations and tuition receipts appropriated by section 136F.71, subdivision 1, held by it to
discharge or otherwise provide for the payment of the interest coming due on its revenue bonds
outstanding on July 1, 1988, until paid and for the payment of the principal and any premium
coming due on the bonds at maturity or upon any earlier date upon which the bonds are called for
redemption. For this purpose, the board may exercise all powers conferred upon it under section
475.67, subdivisions 5 to 10. This subdivision does not authorize the appropriation or use of
board money to secure outstanding revenue bonds contrary to a board resolution authorizing the
issuance and providing for the security of the bonds, or the use of other board money contrary to
the terms of a contract, specific legislative appropriation, or law.
History: 1955 c 715 s 1; 1957 c 576 s 1,2; 1957 c 603 s 1; 1965 c 331 s 3-5; 1967 c 140 s 1;
1973 c 492 s 14; 1975 c 321 s 2; 1978 c 706 s 50; 1988 c 703 art 1 s 13; 1989 c 293 s 16,17; 1990
c 610 art 2 s 3; 1994 c 532 art 6 s 1,12; 1995 c 212 art 4 s 58,64; 1996 c 399 art 2 s 12
136F.91 BONDS, INVESTMENTS.
The state, including the State Board of Investment, and all counties, cities, towns and other
municipal corporations, political subdivisions and political bodies, and public officers of any
of the public entities listed in this section, all banks, bankers, trust companies, savings banks,
and institutions, savings associations, investment companies and other persons carrying on a
banking business, all insurance companies, insurance associations and other persons carrying on
an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries
may legally invest any sinking funds, moneys or other funds belonging to them or within their
control in any bonds issued pursuant to sections 136F.90 to 136F.98. The purpose of this section is
to authorize the investment in bonds of all sinking, insurance, retirement, compensation, pension
and trust funds, whether owned or controlled by private or public persons or officers. Nothing
in this section may be construed as relieving any person, firm or corporation from any duty of
exercising due care in selecting securities for purchase or investment. The bonds are constituted
"authorized securities" within the meaning and for the purposes of section 50.14, notwithstanding
the restrictions in section 50.14, subdivision 4, clause (c).
History: 1955 c 715 s 2; 1957 c 603 s 2; 1973 c 123 art 5 s 7; 1983 c 213 s 6; 1994 c 532 art
6 s 2,12; 1995 c 202 art 1 s 25; 1995 c 212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131
136F.92 RESOLUTION OF BOARD.
Upon the determination by the Board of Trustees of the Minnesota State Colleges and
Universities or its successor to acquire, construct, complete, remodel, or equip any student
residence halls, dormitories, dining halls, student union buildings, parking facilities, or other
similar revenue-producing building or buildings, the board or its successor shall adopt a resolution
describing generally the contemplated project, the estimated cost, including legal, engineering
and financial expenses and interest on the bonds during the period of constructing the project and
for six months thereafter, fixing the amount of the bonds, the maturity or maturities, the interest
rate, and all details in respect of the bonds. The resolution shall contain covenants as may be
determined by the board or its successor as to:
(1) the pledging of all or any portion of the proceeds of any fees imposed upon students
for student activities, student facilities, or for other purposes, and the net revenues from other
buildings or facilities heretofore or hereafter constructed or acquired at any state university as
additional security for the payment of the bonds;
(2) the regulation as to the use of the buildings or structures to assure maximum use or
occupancy;
(3) the amount and kind of insurance to be carried, including use and occupancy insurance,
the cost of which shall be payable only from the revenues to be derived from the buildings or
structures;
(4) the operation, maintenance, management, accounting and auditing, and the keeping of
records, reports and audits of the buildings or structures;
(5) the obligation of the board or its successor to maintain the buildings or structures in good
condition and to operate them in an economical and efficient manner;
(6) the amendment or modification of the resolution authorizing the issuance of any bonds,
and the manner, terms and conditions, and the amount or percentage of assenting bonds necessary
to effectuate the amendment or modification; and
(7) other covenants as may be deemed necessary or desirable to assure the prompt and
punctual payment of all bonds issued under sections 136F.90 to 136F.98.
History: 1955 c 715 s 3; 1957 c 576 s 1,2; 1975 c 321 s 2; 1994 c 532 art 6 s 3,12; 1995 c
212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131
136F.93 STUDENT ACTIVITIES, FEES CHARGED.
Whenever bonds are issued as provided in sections 136F.90 to 136F.98, it shall be the duty of
the Board of Trustees of the Minnesota State Colleges and Universities to establish charges or
fees, including without limitation fees for student activities and fees for student facilities, for the
use of any buildings or structures sufficient at all times to pay the principal of and interest on
the bonds and to create and maintain suitable reserves for them and the necessary expenses of
their operation and maintenance. All revenues derived from their operation shall be set aside in
a separate fund and accounts and be irrevocably pledged for and used only to pay the principal
of and interest upon the bonds issued for the purpose or purposes set forth and described in the
resolution authorizing the issuance of the bonds, and the necessary expenses of the operation
and maintenance of the buildings and structures; and the charges and fees shall be sufficient at
all times for these purposes.
History: 1955 c 715 s 4; 1957 c 603 s 3; 1994 c 532 art 6 s 4,12; 1995 c 212 art 4 s
58,64,65; 1996 c 305 art 1 s 130,131
136F.94 SPECIAL REVENUE FUND.
(a) The gross total income derived from the sale of bonds, and receipts and income derived
from charges or fees, rentals, and all other revenue established for the use and service of any
buildings or structures shall, within three days after their receipt, be paid to and held by the
treasurer of the Board of Trustees of the Minnesota State Colleges and Universities as a special
fund known as, "The Board of Trustees of the Minnesota State Colleges and Universities Revenue
Fund." The treasurer shall be custodian of the special fund, which fund shall be held and disbursed
for the purposes provided in sections 136F.90 to 136F.98. The special fund shall be protected
by a corporate surety bond executed by the treasurer of the board with a surety authorized to do
business under the laws of the state of Minnesota. The amount of the bond shall be fixed by
resolution of the board or its successor and may be increased or diminished at any time. The
premiums of the bonds shall be payable from "The Board of Trustees of the Minnesota State
Colleges and Universities Revenue Fund" and charged as an item of maintenance expense.
(b) A certified copy of each resolution providing for the issuance of bonds under sections
136F.90 to 136F.98 shall be filed with the treasurer of the board, and it shall be the duty of
the treasurer to keep and maintain separate accounts in the special fund for each bond issue
in accordance with the covenants and the directions set out in the resolution providing for the
issuance of the bonds and to disburse funds from the proper account for the payment of the
principal of and interest on the bonds in accordance with the directions and covenants of the
resolution authorizing the issue. All disbursements for maintenance and operation costs shall be
made from the proper maintenance and operation account by order of the board or its successor in
accordance with the covenants set out in the resolution authorizing the issuance of bonds. All
disbursements for construction costs shall be made from a separate account in the special fund
by order of the board or its successor in accordance with the covenants set out in the resolution
authorizing the bonds.
History: 1955 c 715 s 5; 1957 c 576 s 1,2; 1975 c 321 s 2; 1986 c 444; 1994 c 532 art 6 s
5,12; 1995 c 212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131
136F.95 ALLOCATION OF RECEIPTS.
All moneys in the Board of Trustees of the Minnesota State Colleges and Universities
revenue fund and all income from the operation of residence halls, dormitories, dining halls,
student union buildings, parking facilities and other revenue producing buildings and structures
are appropriated first to the payment of expenses of the operation of the facilities from which the
revenues so appropriated are derived and second to the payment of the obligations authorized by
sections 136F.90 to 136F.98.
History: 1955 c 715 s 6; 1957 c 576 s 1,2; 1957 c 603 s 4; 1975 c 321 s 2; 1994 c 532 art 6 s
6,12; 1995 c 212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131
136F.96 ADMINISTRATION.
The administration of sections 136F.90 to 136F.98 shall be under the Board of Trustees of
the Minnesota State Colleges and Universities independent of other authority and notwithstanding
chapters 16A, 16B, and 16C.
History: 1955 c 715 s 7; 1957 c 576 s 1,2; 1975 c 321 s 2; 1977 c 410 s 16; 1985 c 248 s
68; 1994 c 532 art 6 s 7,12; 1995 c 212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131; 1998 c
386 art 2 s 51
136F.97 CONTRACTS OF BOARD, PERFORMANCE COMPELLED.
(a) The provisions of sections 136F.90 to 136F.98 and of any resolution or other proceedings
authorizing the issuance of bonds shall constitute a contract with the holders of the bonds and
the provisions shall be enforceable either in law or in equity, by suit, action, mandamus or other
proceeding in any court of competent jurisdiction to enforce or compel the performance of any
duties required by sections 136F.90 to 136F.98 and any resolution authorizing the issuance of
bonds, including the establishment of sufficient charges or fees for use of any buildings or
structures and the application of the income and revenue from them; and it shall be the duty of
the Board of Trustees of the Minnesota State Colleges and Universities or its successor upon the
issuance of any bonds under sections 136F.90 to 136F.98 to establish by resolution from time
to time the fees or charges to be made for the use of any buildings or structures, which fees or
charges shall be adjusted from time to time in order to always provide sufficient income for
payment of the principal of and interest on the bonds issued as provided for in sections 136F.90 to
136F.98, and for the necessary expenses of operation and maintenance.
(b) If the Board of Trustees of the Minnesota State Colleges and Universities is abolished,
all contracts made by the board and all things done or actions taken by the board under sections
136F.90 to 136F.98 shall be deemed to be contracts of, actions taken and things done by its
successor and the successor shall be bound by all contracts, actions taken and things done by the
board and subject to all the obligations and duties of the board under sections 136F.90 to 136F.98.
History: 1955 c 715 s 8; 1957 c 576 s 1,2; 1975 c 321 s 2; 1994 c 532 art 6 s 8,12; 1995 c
212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131
136F.98 REVENUE BONDS, ISSUANCE; FEDERAL TAX.
    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State Colleges
and Universities or a successor may issue revenue bonds under sections 136F.90 to 136F.97
whose aggregate principal amount at any time may not exceed $150,000,000, and payable from
the revenue appropriated to the fund established by section 136F.94, and use the proceeds
together with other public or private money that may otherwise become available to acquire
land, and to acquire, construct, complete, remodel, and equip structures or portions thereof to
be used for dormitory, residence hall, student union, food service, parking purposes, or for any
other similar revenue-producing building or buildings of such type and character as the board
finds desirable for the good and benefit of the state universities. Before issuing the bonds or
any part of them, the board shall consult with and obtain the advisory recommendations of the
chairs of the house Ways and Means Committee and the senate Finance Committee about the
facilities to be financed by the bonds.
    Subd. 2. Federal tax on interest. The bonds authorized by this section may be issued
without regard to whether the interest to be paid on them is includable in gross income for federal
tax purposes. However, if it is intended that the interest on the bonds be exempt from federal
income taxes, an officer of the board shall certify for the board on the date of issue the facts,
estimates, and circumstances that lead the officer reasonably to expect that the proceeds of the
bonds and the facilities financed by them will not be used to cause the interest on the bonds to
be subject to federal income taxes; the board may covenant and agree with the holders of the
bonds that it will comply with the provisions of the United States Internal Revenue Code now or
hereafter enacted that do or may apply to the bonds and that establish conditions under which the
interest to be paid on the bonds will not be subject to federal income taxes; and the officers of
the board shall take the actions or refrain from taking the actions necessary to comply with the
covenants. Money required to be spent to comply may be appropriated by the board from the
fund established by section 136F.94.
    Subd. 3. Successor. For the purposes of this section, the Board of Trustees of the Minnesota
State Colleges and Universities is the successor to the State University Board.
History: 1957 c 576 s 1,2; 1957 c 604 s 1; 1959 c 413 s 1; 1963 c 479 s 1; 1965 c 317 s 1,2;
1965 c 332 s 1,2; 1967 c 140 s 2; 1971 c 963 s 6; 1975 c 321 s 2; 1988 c 703 art 1 s 14,15; 1993 c
4 s 19; 1994 c 532 art 6 s 9,10,12; 1995 c 212 art 4 s 58,64,65; 1996 c 305 art 1 s 130,131; 2000
c 492 art 1 s 56; 2006 c 258 s 35