Minnesota Legislature
Office of the Revisor of Statutes
Minnesota Session Laws - 2003, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 133-S.F.No. 675
An act relating to higher education; appropriating
money for educational and related purposes to the
higher education services office, board of trustees of
the Minnesota state colleges and universities, board
of regents of the university of Minnesota, and Mayo
Medical Foundation, with certain conditions; making
various changes to the state grant program and the
college savings plan; providing for organizational,
administrative, and other changes at the higher
education services office and the Minnesota state
colleges and universities; authorizing revenue bonds;
amending Minnesota Statutes 2002, sections 41D.01,
subdivision 4; 124D.42, subdivision 3; 135A.14, by
adding a subdivision; 136A.01, subdivision 1;
136A.011, subdivision 2; 136A.03; 136A.031,
subdivisions 2, 5; 136A.08, subdivision 3; 136A.101,
subdivision 5a; 136A.121, subdivisions 6, 7, 9, 9a,
13; 136A.125, subdivisions 2, 4; 136A.171; 136A.29,
subdivision 9; 136A.69; 136F.12; 136F.40, subdivision
2; 136F.45, subdivisions 1, 2; 136F.581, subdivisions
1, 2; 136F.59, subdivision 3; 136F.60, subdivision 3;
136G.01; 136G.03, subdivision 31, by adding
subdivisions; 136G.05, subdivisions 4, 5, 10; 136G.09,
subdivisions 1, 2, 6, 7, 8, 9; 136G.11, subdivisions
1, 2, 3, 9, 13; 136G.13, subdivisions 1, 3; 137.022,
subdivision 3; 137.0245, subdivision 2; 137.44;
299A.45, subdivision 2; proposing coding for new law
in Minnesota Statutes, chapters 136F; 136G; repealing
Minnesota Statutes 2002, sections 15A.081, subdivision
7b; 124D.95; 136A.1211; 136A.122; 136A.124; 136F.13;
136F.56; 136F.582; 136F.59, subdivision 2; 136G.03,
subdivision 25.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
APPROPRIATIONS
Section 1. [HIGHER EDUCATION APPROPRIATIONS.]
The sums in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or other named fund, to the
agencies and for the purposes specified in this article. The
listing of an amount under the figure "2004" or "2005" in this
article indicates that the amount is appropriated to be
available for the fiscal year ending June 30, 2004, or June 30,
2005, respectively. "The first year" is fiscal year 2004. "The
second year" is fiscal year 2005. "The biennium" is fiscal
years 2004 and 2005.
SUMMARY BY FUND
2004 2005 TOTAL
General $1,284,558,000 $1,274,154,000 $2,558,712,000
Health Care
Access 2,157,000 2,157,000 4,314,000
SUMMARY BY AGENCY - ALL FUNDS
2004 2005 TOTAL
Higher Education Services Office
175,002,000 175,002,000 350,004,000
Board of Trustees of the Minnesota
State Colleges and Universities
560,881,000 547,694,000 1,108,575,000
Board of Regents of the University
of Minnesota
549,441,000 552,224,000 1,101,665,000
Mayo Medical Foundation
1,391,000 1,391,000 2,782,000
APPROPRIATIONS
Available for the Year
Ending June 30
2004 2005
Sec. 2. HIGHER EDUCATION
SERVICES OFFICE
Subdivision 1. Total
Appropriation $ 175,002,000 $ 175,002,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. State Grants
140,575,000 140,575,000
For the biennium, the private
institution tuition maximum shall be
$8,983 in the first year and $8,983 in
the second year for four-year
institutions and $6,913 in the first
year and $6,913 in the second year for
two-year institutions.
This appropriation contains money to
provide educational benefits to
dependent children under age 23 and the
spouses of public safety officers
killed in the line of duty pursuant to
Minnesota Statutes 2002, section
299A.45.
This appropriation contains money to
set the living and miscellaneous
expense allowance at $5,205 in each
year.
Subd. 3. Interstate Tuition Reciprocity
3,600,000 3,600,000
If the appropriation in this
subdivision for either year is
insufficient, the appropriation for the
other year is available to meet
reciprocity contract obligations.
Subd. 4. State Work Study
12,444,000 12,444,000
Subd. 5. Child Care Grants
4,743,000 4,743,000
Subd. 6. Minitex
4,381,000 4,381,000
Subd. 7. MnLINK
450,000 450,000
The base appropriation for MnLINK
operations is $400,000 each year in
fiscal years 2006 and 2007.
Any unexpended funds from the
appropriation in Laws 1997, chapter
183, article 1, section 2, subdivision
8, shall cancel on June 30, 2005.
Subd. 8. Learning Network
of Minnesota
4,829,000 4,829,000
Subd. 9. Income Contingent Loans
The higher education services office
shall administer an income-contingent
loan repayment program to assist
graduates of Minnesota schools in
medicine, dentistry, pharmacy,
chiropractic medicine, public health,
and veterinary medicine, and Minnesota
residents graduating from optometry and
osteopathy programs. Applicant data
collected by the office for this
program may be disclosed to a consumer
credit reporting agency under the same
conditions as those that apply to the
supplemental loan program under
Minnesota Statutes, section 136A.162.
No new applicants may be accepted after
June 30, 1995.
Subd. 10. Minnesota College
Savings Plan
1,120,000 1,120,000
Subd. 11. Agency
Administration
2,860,000 2,860,000
This appropriation includes $125,000
each year for the student and parent
information program under Minnesota
Statutes, section 136A.87; $184,000
each year for the Get Ready program;
and $255,000 each year for the college
intervention program to foster
postsecondary attendance by providing
outreach services to historically
underserved groups of Minnesota
elementary and secondary students. The
office may contract with other agencies
or nonprofit organizations for specific
services specifically funded by this
paragraph.
This appropriation contains $100,000
each year for grants to increase
campus-community collaboration and
service learning statewide. For every
$1 in state funding, grant recipients
must contribute $2 in campus or
community-based support.
Subd. 12. Balances Forward
A balance in the first year under this
section does not cancel, but is
available for the second year.
Subd. 13. Transfers
The higher education services office
may transfer unencumbered balances from
the appropriations in this section to
the state grant appropriation and the
interstate tuition reciprocity
appropriation.
Subd. 14. Reporting
The higher education services office
shall collect data monthly from
institutions disbursing state financial
aid. The data collected shall include,
but is not limited to, expenditures by
type to date and unexpended balances.
The higher education services office
shall evaluate and report monthly on
state financial aid expenditures and
unexpended balances to the chairs of
the higher education finance committees
of the senate and house of
representatives and the commissioner of
finance. By July 15, December 1,
February 15, and April 15, the services
office shall provide updated state
grant spending projections taking into
account the most current and projected
enrollment and tuition and fee
information, economic conditions, and
other relevant factors. Before
submitting state grant spending
projections, the office shall meet and
consult with representatives of public
and private postsecondary education,
the department of finance, governor's
office, legislative staff, and
financial aid administrators. The
board of regents of the University of
Minnesota, the board of trustees of the
Minnesota state colleges and
universities, and private institutions
that participate in the state grant
program shall submit tuition and fee
information to the higher education
services office no later than July 1 of
each year.
The higher education services office
shall by January 15, 2004, and by
November 30, 2004, report on the impact
on students of the changes in financial
aid policies made by this act.
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND UNIVERSITIES
Subdivision 1. Total
Appropriation 560,881,000 547,694,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Estimated Expenditures
and Appropriations
The legislature estimates that
instructional expenditures will be
$750,105,000 in the first year and
$730,324,000 in the second year. The
legislature estimates that
noninstructional expenditures will be
$60,811,000 in the first year and
$60,811,000 in the second year.
This appropriation includes money for a
grant to Minnesota State University,
Mankato, for the talented youth
mathematics program.
During the biennium, neither the board
nor campuses shall plan or develop
doctoral level programs or degrees
until after they have received the
recommendation of the house and senate
committees on education, finance, and
ways and means.
During the biennium, technical and
consolidated colleges shall make use of
instructional advisory committees
consisting of employers, students, and
instructors. The instructional
advisory committee shall be consulted
when a technical program is proposed to
be created, modified, or eliminated.
If a decision is made to eliminate a
program, a college shall adequately
notify students and make plans to
assist students affected by the closure.
In each year, the board of trustees
shall increase the percentage of the
total general fund expenditures for
direct instruction and academic
support, as reported in the federal
Integrated Postsecondary Education Data
System (IPEDS).
Subd. 3. Accountability
The board shall continue to submit the
data and information enumerated in Laws
2001, First Special Session chapter 1,
article 1, section 3, subdivision 3, in
the accountability report currently
under development. For the purpose of
those reports, a first generation
student is a student neither of whose
parents received any postsecondary
education.
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
Subdivision 1. Total
Appropriation 549,441,000 552,224,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Operations and
Maintenance
483,917,000 486,700,000
Estimated Expenditures
and Appropriations
The legislature estimates that
instructional expenditures will be
$368,020,000 in the first year and
$371,860,000 in the second year. The
legislature estimates that
noninstructional expenditures will be
$238,571,000 the first year and
$238,793,000 in the second year.
Subd. 3. Health Care Access Fund
2,157,000 2,157,000
This appropriation is from the health
care access fund for primary care
education initiatives.
Subd. 4. Special
Appropriation 63,367,000 63,367,000
(a) Agriculture and Extension Service
50,625,000 50,625,000
This appropriation is for the
Agricultural Experiment Station,
Minnesota Extension Service.
Any salary increases granted by the
University to personnel paid from the
Minnesota Extension appropriation must
not result in a reduction of the county
responsibility for the salary payments.
During the biennium, the University
shall maintain an advisory council
system for each experiment station.
The advisory councils must be broadly
representative of the range in size and
income distribution of farms and
agribusinesses and must not
disproportionately represent those from
the upper half of the size and income
distributions.
The university must continue to provide
support for the rapid agricultural
response fund, and sustainable and
organic agriculture initiatives
including, but not limited to, the
alternative swine systems program.
(b) Health Sciences
4,929,000 4,929,000
This appropriation is for the rural
physicians associates program, the
Veterinary Diagnostic Laboratory,
health sciences research, dental care,
and the Biomedical Engineering Center.
(c) Institute of Technology
1,387,000 1,387,000
This appropriation is for the
Geological Survey and the Talented
Youth Mathematics Program.
(d) System Specials
6,426,000 6,426,000
This appropriation is for general
research, student loans matching money,
industrial relations education, Natural
Resources Research Institute, Center
for Urban and Regional Affairs, Bell
Museum of Natural History, and the
Humphrey exhibit.
Subd. 5. Academic Health Center
The appropriation to the academic
health center under Minnesota Statutes,
chapter 297F, if enacted, is
anticipated to be $22,515,000 in the
first year and $22,403,000 in the
second year.
Subd. 6. Accountability
The board shall continue to submit the
data and information enumerated in Laws
2001, First Special Session chapter 1,
article 1, section 4, subdivision 5, in
the board's university plan,
performance, and accountability
report. For the purpose of those
reports, a first generation student is
a student neither of whose parents
received any postsecondary education.
Sec. 5. MAYO MEDICAL FOUNDATION
Subdivision 1. Total
Appropriation 1,391,000 1,391,000
The amounts that may be spent from this
appropriation for each purpose are
specified in the following subdivisions.
Subd. 2. Medical School
514,000 514,000
The state of Minnesota must pay a
capitation each year for each student
who is a resident of Minnesota. The
appropriation may be transferred
between years of the biennium to
accommodate enrollment fluctuations.
The legislature intends that during the
biennium the Mayo foundation use the
capitation money to increase the number
of doctors practicing in rural areas in
need of doctors.
Subd. 3. Family Practice and
Graduate Residency Program
531,000 531,000
The state of Minnesota must pay a
capitation of 27 residents each year.
Subd. 4. St. Cloud Hospital-Mayo
Family Practice Residency Program
346,000 346,000
This appropriation is to the Mayo
foundation to support 12 resident
physicians each year in the St. Cloud
Hospital-Mayo Family Practice Residency
program. The program shall prepare
doctors to practice primary care
medicine in the rural areas of the
state. It is intended that this
program will improve health care in
rural communities, provide affordable
access to appropriate medical care, and
manage the treatment of patients in a
more cost-effective manner.
Sec. 6. SELF LOAN RESERVE FUND TRANSFER
Notwithstanding any law to the
contrary, by June 30, 2003, the
commissioner of finance shall transfer
$30,000,000 of uncommitted balances in
the SELF loan reserve fund, under
Minnesota Statutes, section 136A.1701,
to the budget reserve account in the
general fund. By June 30, 2007, the
commissioner of finance shall return
this amount to the SELF loan reserve
fund. The amount necessary to make the
return transfer is appropriated from
the general fund to the commissioner of
finance for the fiscal year ending June
30, 2007.
[EFFECTIVE DATE.] This section is
effective the day following final
enactment.
Sec. 7. POSTSECONDARY SYSTEMS
As part of the boards' biennial budget
requests, the board of trustees of the
Minnesota state colleges and
universities and the board of regents
of the University of Minnesota shall
report to the legislature on progress
under the master academic plan for the
metropolitan area. The report must
include a discussion of coordination
and duplication of program offerings,
developmental and remedial education,
credit transfers within and between the
postsecondary systems, and planning and
delivery of coordinated programs. In
order to better achieve the goal of a
more integrated, effective, and
seamless postsecondary education system
in Minnesota, the report must also
identify statewide efforts at
integration and cooperation between the
postsecondary systems.
Sec. 8. K-12 TEACHER INSTRUCTION AND
LICENSURE SURVEY
The Minnesota Association of Colleges
of Teacher Education is requested to
collect data from each of its member
institutions that measure the
involvement of teacher education
programs and their faculty with
Minnesota K-12 schools. The data shall
include at least: current Minnesota
licensure status of faculty, K-12
teaching experience of college faculty
under that licensure within the last
five years, descriptions of college and
faculty collaborations with K-12
teachers and students, and information
on other projects involving higher
education in K-12 schools. The data
shall be presented to the education
policy and finance committees of the
legislature by February 15, 2004.
ARTICLE 2
POLICY CHANGES
Section 1. Minnesota Statutes 2002, section 41D.01,
subdivision 4, is amended to read:
Subd. 4. [EXPIRATION.] This section expires on June
30, 2003 2008.
Sec. 2. Minnesota Statutes 2002, section 135A.14, is
amended by adding a subdivision to read:
Subd. 6a. [MENINGITIS INFORMATION.] Each public and
private postsecondary institution shall provide information on
the risks of meningococcal disease and on the availability and
effectiveness of any vaccine to each individual who is a
first-time enrollee and who resides in on-campus student
housing. The institution may provide the information in an
electronic format. The institution must consult with the
department of health on the preparation of the informational
materials provided under this subdivision.
[EFFECTIVE DATE.] This section is effective June 1, 2003.
Sec. 3. Minnesota Statutes 2002, section 136A.01,
subdivision 1, is amended to read:
Subdivision 1. [CREATION.] An office for higher education
in the state of Minnesota, to be known as the Minnesota higher
education services office or HESO, is created with a director
appointed by the governor with the advice and consent of the
senate and serving at the pleasure of the governor.
[EFFECTIVE DATE.] This section is effective when a vacancy
occurs in the position of director or December 30, 2003,
whichever is first.
Sec. 4. Minnesota Statutes 2002, section 136A.011,
subdivision 2, is amended to read:
Subd. 2. [DUTIES.] The council shall:
(1) appoint the director of the higher education services
office, as provided in section 136A.03;
(2) provide advice and review regarding the performance of
the higher education services office in its duties and in any
policies, procedures, or rules the office prescribes to perform
its duties; and
(3) (2) communicate with and make recommendations to the
governor and the legislature.
Sec. 5. Minnesota Statutes 2002, section 136A.03, is
amended to read:
136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.]
The director of the higher education services office shall
possess the powers and perform the duties as prescribed by the
higher education services council and be under the
administrative control of the director. The director shall
serve in the unclassified service of the state civil service.
The director, or the director's designated representative, on
behalf of the office is authorized to sign contracts and execute
all instruments necessary or appropriate to carry out the
purposes of sections 136A.01 to 136A.178 for the office. The
salary of the director shall be established by the higher
education services council according to section 15A.0815. The
director shall be a person qualified by training or experience
in the field of higher education or in financial aid
administration. The director may appoint other professional
employees who shall serve in the unclassified service of the
state civil service. All other employees shall be in the
classified civil service.
An officer or professional employee appointed by the
director to serve in the unclassified service as provided in
this section, is a person who has studied higher education or a
related field at the graduate level or has similar experience
and who is qualified for a career in financial aid and other
aspects of higher education and for activities in keeping with
the planning and administrative responsibilities of the office
and who is appointed to assume responsibility for administration
of educational programs or research in matters of higher
education.
Sec. 6. Minnesota Statutes 2002, section 136A.031,
subdivision 2, is amended to read:
Subd. 2. [HIGHER EDUCATION ADVISORY COUNCIL.] A higher
education advisory council (HEAC) is established. The HEAC is
composed of the president and the senior vice-president for
academic affairs of the University of Minnesota or designee; the
chancellor of the Minnesota state colleges and universities or
designee; the associate vice-chancellors of the state
universities, community colleges, and technical colleges; the
commissioner of children, families, and learning; the president
of the private college council; and a representative from the
Minnesota association of private post-secondary schools; and a
member appointed by the governor. The HEAC shall (1) bring to
the attention of the higher education services council any
matters that the HEAC deems necessary, and (2) review and
comment upon matters before the council. The council shall
refer all proposals to the HEAC before submitting
recommendations to the governor and the legislature. The
council shall provide time for a report from the HEAC at each
meeting of the council.
Sec. 7. Minnesota Statutes 2002, section 136A.031,
subdivision 5, is amended to read:
Subd. 5. [EXPIRATION.] Notwithstanding section 15.059,
subdivision 5a 5, the advisory groups established in this
section expire on June 30, 2003 2005.
Sec. 8. Minnesota Statutes 2002, section 136A.101,
subdivision 5a, is amended to read:
Subd. 5a. [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned
family responsibility" means the amount of a family contribution
to a student's cost of attendance, as determined by a federal
need analysis, except that, beginning for the 1998-1999 academic
year, up to $25,000 in savings and other assets shall be
subtracted from the federal calculation of net worth before
determining the contribution. For dependent students, the
assigned family responsibility is the parental contribution.
For independent students with dependents other than a spouse,
the assigned family responsibility is the student contribution.
For independent students without dependents other than a spouse,
the assigned family responsibility is 80 72 percent of the
student contribution. Beginning in fiscal year 2002, The
assigned family responsibility for all other independent
students is reduced an additional ten 90 percent of the student
contribution.
Sec. 9. Minnesota Statutes 2002, section 136A.121,
subdivision 6, is amended to read:
Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of
attendance consists of allowances specified in law for living
and miscellaneous expenses, and an allowance for tuition and
fees equal to the lesser of the actual average tuition and fees
charged by the institution, or the private institution tuition
and fee maximums established in law.
(b) For the purpose of paragraph (a), the private
institution tuition and fee maximum for two- and four-year,
private, residential, liberal arts, degree-granting colleges and
universities must be the same.
(c) For a student registering for less than full time, the
office shall prorate the living and miscellaneous expense
allowance cost of attendance to the actual number of credits for
which the student is enrolled.
The recognized cost of attendance for a student who is
confined to a Minnesota correctional institution shall consist
of the tuition and fee component in paragraph (a), with no
allowance for living and miscellaneous expenses.
For the purpose of this subdivision, "fees" include only
those fees that are mandatory and charged to full-time resident
students attending the institution.
Sec. 10. Minnesota Statutes 2002, section 136A.121,
subdivision 7, is amended to read:
Subd. 7. [INSUFFICIENT APPROPRIATION.] If the amount
appropriated is determined by the office to be insufficient to
make full awards to applicants under subdivision 5, before any
award for that year has been disbursed, awards must be reduced
by:
(1) adding a surcharge to the applicant's assigned family
responsibility, as defined in section 136A.101, subdivision 5a;
and
(2) a percentage increase in the applicant's assigned
student responsibility, as defined in subdivision 5.
The reduction under clauses (1) and (2) must be equal dollar
amounts.
Sec. 11. Minnesota Statutes 2002, section 136A.121,
subdivision 9, is amended to read:
Subd. 9. [AWARDS.] An undergraduate student who meets the
office's requirements is eligible to apply for and receive a
grant in any year of undergraduate study unless the student has
obtained a baccalaureate degree or previously has been enrolled
full time or the equivalent for ten eight semesters or the
equivalent, excluding courses taken from a Minnesota school or
post-secondary institution which is not participating in the
state grant program and from which a student transferred no
credit. A student enrolled in a two-year program at a four-year
institution is only eligible for the tuition and fee maximums
established by law for two-year institutions.
Sec. 12. Minnesota Statutes 2002, section 136A.121,
subdivision 9a, is amended to read:
Subd. 9a. [FULL-YEAR GRANTS.] Students may receive state
grants for four consecutive quarters or three consecutive
semesters during the course of a single fiscal year. In
calculating a state grant for the fourth quarter or third
semester, the office must use the same calculation as it would
for any other term, except that the calculation must subtract
any federal Pell grant for which a student would be eligible
even if the student has exhausted the Pell grant for that fiscal
year.
Sec. 13. Minnesota Statutes 2002, section 136A.121,
subdivision 13, is amended to read:
Subd. 13. [DEADLINE.] The office shall accept applications
for state grants until February 15 and may establish a deadline
for the acceptance of applications that is later than February
15 deadline for the office to accept applications for state
grants for a term, is 14 days after the start of that term.
Sec. 14. Minnesota Statutes 2002, section 136A.125,
subdivision 2, is amended to read:
Subd. 2. [ELIGIBLE STUDENTS.] An applicant is eligible for
a child care grant if the applicant:
(1) is a resident of the state of Minnesota;
(2) has a child 12 years of age or younger, or 14 years of
age or younger who is handicapped as defined in section 125A.02,
and who is receiving or will receive care on a regular basis
from a licensed or legal, nonlicensed caregiver;
(3) is income eligible as determined by the office's
policies and rules, but is not a recipient of assistance from
the Minnesota family investment program;
(4) has not earned a baccalaureate degree and has been
enrolled full time less than ten eight semesters or the
equivalent;
(5) is pursuing a nonsectarian program or course of study
that applies to an undergraduate degree, diploma, or
certificate;
(6) is enrolled at least half time in an eligible
institution; and
(7) is in good academic standing and making satisfactory
academic progress.
Sec. 15. Minnesota Statutes 2002, section 136A.125,
subdivision 4, is amended to read:
Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a
child care grant must be based on:
(1) the income of the applicant and the applicant's spouse;
(2) the number in the applicant's family, as defined by the
office; and
(3) the number of eligible children in the applicant's
family.
The maximum award to the applicant shall be $2,600 $2,200
for each eligible child per academic year, except that the
campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate
for higher market charges for infant care in a community. The
office shall develop policies to determine community market
costs and review institutional requests for compensatory grant
increases to ensure need and equal treatment. The office shall
prepare a chart to show the amount of a grant that will be
awarded per child based on the factors in this subdivision. The
chart shall include a range of income and family size.
Sec. 16. Minnesota Statutes 2002, section 136A.29,
subdivision 9, is amended to read:
Subd. 9. The authority is authorized and empowered to
issue revenue bonds whose aggregate principal amount at any time
shall not exceed $650,000,000 $800,000,000 and to issue notes,
bond anticipation notes, and revenue refunding bonds of the
authority under the provisions of sections 136A.25 to 136A.42,
to provide funds for acquiring, constructing, reconstructing,
enlarging, remodeling, renovating, improving, furnishing, or
equipping one or more projects or parts thereof.
Sec. 17. Minnesota Statutes 2002, section 136A.69, is
amended to read:
136A.69 [FEES.]
The office shall collect reasonable registration fees that
are sufficient to recover, but do not exceed, its costs of
administering the registration program. The office shall charge
$1,100 for initial registration fees and $950 for annual renewal
fees.
Sec. 18. Minnesota Statutes 2002, section 136F.12, is
amended to read:
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.
Sec. 19. Minnesota Statutes 2002, section 137.022,
subdivision 3, is amended to read:
Subd. 3. [ENDOWED CHAIR ACCOUNT.] (a) For purposes of this
section, the permanent university fund has three accounts. The
sources of the money in the endowed mineral research and
scholarship accounts are set out in paragraph (b) and
subdivision 4. All money in the fund that is not otherwise
allocated is in the endowed chair account. The income from the
endowed chair account must be used, and capital gains allocated
to that account may be used, to provide endowment support for
professorial chairs in academic disciplines. The endowment
support for the chairs from the income and the capital gains
must not total more than six percent per year of the 36-month
trailing average market value of the endowed chair account of
the fund, as computed quarterly or otherwise as directed by the
regents. The endowment support from the income and the capital
gains must not provide more than half the sum of the endowment
support for all university chairs and professorships endowed,
with nonstate sources providing the remainder. The endowment
support from the income and the capital gains may provide more
than half the endowment support of an individual chair.
(b) If any portion of the annual appropriation of the
income is not used for the purposes specified in paragraph (a)
or subdivision 4, that portion lapses and must be added to the
principal of the three accounts of the permanent university fund
in proportion to the market value of each account.
Sec. 20. Minnesota Statutes 2002, section 137.44, is
amended to read:
137.44 [HEALTH PROFESSIONAL EDUCATION BUDGET PLAN.]
The board of regents is requested to adopt a biennial
budget plan for making expenditures from the medical education
endowment fund funds dedicated for the instructional costs of
health professional programs at publicly funded academic health
centers and affiliated teaching institutions. The budget plan
may be submitted as part of the University of Minnesota's
biennial budget request.
Sec. 21. [REPEALER.]
Minnesota Statutes 2002, sections 15A.081, subdivision 7b;
124D.95; 136A.1211; 136A.122; and 136A.124, are repealed.
ARTICLE 3
HESO HOUSEKEEPING
Section 1. Minnesota Statutes 2002, section 124D.42,
subdivision 3, is amended to read:
Subd. 3. [POSTSERVICE BENEFIT.] (a) Each eligible
organization must agree to provide to every participant who
fulfills the terms of a contract under subdivision 2, a
nontransferable postservice benefit. The benefit must be not
less than $4,725 per year of full-time service or prorated for
part-time service or for partial service of at least 900 hours.
Upon signing a contract under subdivision 2, each eligible
organization must deposit funds to cover the full amount of
postservice benefits obligated, except for national education
awards that are deposited in the national service trust fund.
Funds encumbered in fiscal years 1994 and 1995 for postservice
benefits must be available until the participants for whom the
funds were encumbered are no longer eligible to draw benefits.
(b) Nothing in this subdivision prevents a grantee
organization from using funds from nonfederal or nonstate
sources to increase the value of postservice benefits above the
value described in paragraph (a).
(c) The higher education services office must establish an
account for depositing funds for postservice benefits received
from eligible organizations. If a participant does not complete
the term of service or, upon successful completion of the
program, does not use a postservice benefit according to
subdivision 4 within seven years, the amount of the postservice
benefit must be refunded to the eligible organization or, at the
organization's discretion, dedicated to another eligible
participant. Interest earned on funds deposited in the
postservice benefit account is appropriated to the higher
education services office for the costs of administering the
postservice benefits accounts.
(d) The state must provide an additional postservice
benefit to any participant who successfully completes the
program. The benefit must be a credit of five points to be
added to the competitive open rating of a participant who
obtains a passing grade on a civil service examination under
chapter 43A. The benefit is available for five years after
completing the community service.
Sec. 2. Minnesota Statutes 2002, section 136A.08,
subdivision 3, is amended to read:
Subd. 3. [WISCONSIN.] A higher education reciprocity
agreement with the state of Wisconsin may include provision for
the transfer of funds between Minnesota and Wisconsin provided
that an income tax reciprocity agreement between Minnesota and
Wisconsin is in effect for the period of time included under the
higher education reciprocity agreement. If this provision is
included, the amount of funds to be transferred shall be
determined according to a formula which is mutually acceptable
to the office and a duly designated agency representing
Wisconsin. The formula shall recognize differences in tuition
rates between the two states and the number of students
attending institutions in each state under the agreement. Any
payments to Minnesota by Wisconsin shall be deposited by the
office in the general fund of the state treasury. The amount
required for the payments shall be certified by the director of
the office to the commissioner of finance annually.
Sec. 3. Minnesota Statutes 2002, section 136A.171, is
amended to read:
136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.]
The higher education services office may issue revenue
bonds to obtain funds for loans made in accordance with the
provisions of this chapter. The aggregate amount of revenue
bonds, issued directly by the office, outstanding at any one
time, not including refunded bonds or otherwise defeased or
discharged bonds, shall not exceed $550,000,000 $850,000,000.
Proceeds from the issuance of bonds may be held and invested by
the office pending disbursement in the form of loans. All
interest and profits from the investments shall inure to the
benefit of the office and shall be available to the office for
the same purposes as the proceeds from the sale of revenue bonds
including, but not limited to, costs incurred in administering
loans under this chapter and loan reserve funds.
Sec. 4. Minnesota Statutes 2002, section 136G.01, is
amended to read:
136G.01 [PLAN ESTABLISHED.]
A college savings plan known as the Minnesota college
savings plan is established. In establishing this plan, the
legislature seeks to encourage individuals to save for
post-secondary education by:
(1) providing a qualified state tuition plan under federal
tax law;
(2) providing matching grants for contributions to the
program by low- and middle-income families; and
(3) by encouraging individuals, foundations, and businesses
to provide additional grants to participating students.
Sec. 5. Minnesota Statutes 2002, section 136G.03, is
amended by adding a subdivision to read:
Subd. 4a. [APPLICATION.] "Application" means the form
executed by a prospective account owner to enter into a
participation agreement and open an account in the plan. The
application incorporates by reference the participation
agreement.
Sec. 6. Minnesota Statutes 2002, section 136G.03, is
amended by adding a subdivision to read:
Subd. 21a. [MINOR TRUST ACCOUNT.] "Minor trust account"
means a Uniform Gift to Minors Act account, a Uniform Transfers
to Minors Act account, or a trust instrument naming a minor
person as beneficiary, created and operating under the laws of
Minnesota or another state.
Sec. 7. Minnesota Statutes 2002, section 136G.03,
subdivision 31, is amended to read:
Subd. 31. [ROLLOVER DISTRIBUTION.] "Rollover distribution"
means a transfer of funds made:
(1) from one account to another account within 60 days of a
distribution;
(2) from another qualified state tuition program to an
account within 60 days of the distribution; or
(3) to another qualified state tuition program from an
account within 60 days of a distribution.
Each When there is a change of beneficiary in a rollover
distribution, the transfer of funds must be made for the benefit
of a new beneficiary who is a member of the family of the prior
beneficiary. A rollover distribution from one qualified tuition
plan to another once every 12 months without a change of
beneficiary is permitted.
Sec. 8. Minnesota Statutes 2002, section 136G.05,
subdivision 4, is amended to read:
Subd. 4. [PLAN TO COMPLY WITH FEDERAL LAW.] The director
shall ensure that the plan meets the requirements for a
qualified state tuition program under section 529(b)(1)(A)(ii)
of the Internal Revenue Code. The director may request a
private letter ruling or rulings from the Internal Revenue
Service or take any other steps to ensure that the plan
qualifies under section 529 of the Internal Revenue Code or
other relevant provisions of federal law.
Sec. 9. Minnesota Statutes 2002, section 136G.05,
subdivision 5, is amended to read:
Subd. 5. [MINIMUM PENALTY NONQUALIFIED DISTRIBUTIONS AND
MATCHING GRANTS.] In establishing the terms of the program, the
office must provide that refunds of amounts in an account are
subject to a minimum penalty, as required by section 529(b)(3)
of the Internal Revenue Code. If the refunds or payments are
not used for qualified higher education expenses of the
designated beneficiary, this penalty must equal, at least, the
proportionate amount of any matching grants deposited in the
account under section 136G.11 and the investment return on the
grants, plus an additional penalty that meets the requirement of
federal law. There cannot be a nonqualified withdrawal of
matching grant funds and any refund of matching grants must be
returned to the plan.
Sec. 10. Minnesota Statutes 2002, section 136G.05,
subdivision 10, is amended to read:
Subd. 10. [DATA.] Account owner data, account data, and
data on beneficiaries of accounts are private data on
individuals or nonpublic data as defined in section 13.02,
except that the names and addresses of the beneficiaries of
accounts that receive matching grants are public.
Sec. 11. Minnesota Statutes 2002, section 136G.09,
subdivision 1, is amended to read:
Subdivision 1. [CONTRIBUTIONS TO AN ACCOUNT.] A person may
make contributions to an account on behalf of a beneficiary.
Contributions to an account made by persons other than the
account owner become the property of the account owner. A
person does not acquire an interest in an account by making
contributions to an account. Contributions to an account must
be made by check, money order, or other commercially acceptable
means as permitted by the United States Internal Revenue Service
and other applicable federal and state law and authorized
approved by the plan administrator in cooperation with the
office and the board.
Sec. 12. Minnesota Statutes 2002, section 136G.09,
subdivision 2, is amended to read:
Subd. 2. [AUTHORITY OF ACCOUNT OWNER.] Except as provided
for minor trust accounts in section 136G.14, an account owner is
the only person entitled to:
(1) select or change a beneficiary or a contingent account
owner; or
(2) request distributions or rollover distributions from an
account.
Sec. 13. Minnesota Statutes 2002, section 136G.09,
subdivision 6, is amended to read:
Subd. 6. [CHANGE OF BENEFICIARY.] Except as provided for
minor trust accounts in section 136G.14, an account owner may
change the beneficiary of an account to a member of the family
of the current beneficiary, at any time without penalty, if the
change will not cause the total account balance of all accounts
held for the new beneficiary to exceed the maximum account
balance limit as provided in subdivision 8. A change of
beneficiary other than as permitted in this subdivision is
treated as a nonqualified distribution under section 136G.13,
subdivision 3.
Sec. 14. Minnesota Statutes 2002, section 136G.09,
subdivision 7, is amended to read:
Subd. 7. [CHANGE OF ACCOUNT OWNERSHIP.] Except as provided
for minor trust accounts in section 136G.14, an account owner
may transfer ownership of an account to another person eligible
to be an account owner. All transfers of ownership are absolute
and irrevocable.
Sec. 15. Minnesota Statutes 2002, section 136G.09,
subdivision 8, is amended to read:
Subd. 8. [MAXIMUM ACCOUNT BALANCE LIMIT.] (a) When a
contribution is made, the total account balance of all accounts
held for the same beneficiary, including matching grant
accounts, must not exceed the maximum account balance limit as
determined under this subdivision.
(b) The maximum account balance limit is reduced for
withdrawals from any account for the same beneficiary that are
qualified distributions, distributions due to the death or
disability of the beneficiary, or distributions due to the
beneficiary receiving a scholarship. Subsequent contributions
must not be made to replenish an account if the contribution
results in the total account balance of all accounts held for
the beneficiary to exceed the reduced maximum account balance
limit. Any subsequent contributions must be rejected. A
subsequent contribution accepted in error must be returned to
the account owner plus any earnings on the contribution less any
applicable penalties.
(c) The maximum account balance limit is not reduced for a
nonqualified distribution or a rollover distribution. When such
distributions are taken, subsequent contributions may be made to
replenish an account up to the maximum account balance limit.
(d) The office must establish a maximum account balance
limit. The office must adjust the maximum account balance
limit, as necessary, or on January 1 of each year. The maximum
account balance limit must not exceed the amount permitted for
the plan to qualify as a qualified state tuition program under
section 529 of the Internal Revenue Code. For calendar years
2002 2004 and 2003 2005, the maximum account balance limit is
$235,000.
(e) (c) If the total account balance of all accounts held
for a single beneficiary reaches the maximum account balance
limit prior to the end of that calendar year, the beneficiary
may receive an applicable matching grant for that calendar year.
Sec. 16. Minnesota Statutes 2002, section 136G.09,
subdivision 9, is amended to read:
Subd. 9. [EXCESS CONTRIBUTIONS AND BALANCES.] A
contribution to any account for a beneficiary must be rejected
if the contribution would cause the total account balance of all
accounts held for the same beneficiary, including the matching
grant account, to exceed the maximum account balance limit under
section 529 of the Internal Revenue Code as established by the
office. If a contribution under this subdivision is accepted in
error, the contribution must be returned to the account owner
plus any earnings thereon, less applicable penalties. A payment
of an excess contribution to the account owner may be a
nonqualified distribution subject to a penalty.
Sec. 17. Minnesota Statutes 2002, section 136G.11,
subdivision 1, is amended to read:
Subdivision 1. [MATCHING GRANT QUALIFICATION.] By March
1 June 30 of each year, a state matching grant must be added to
each account established under the program if the following
conditions are met:
(1) the contributor applies, in writing in a form
prescribed by the director, for a matching grant;
(2) a minimum contribution of $200 was made during the
preceding calendar year; and
(3) the family income of the beneficiary did not exceed
$80,000.
Sec. 18. Minnesota Statutes 2002, section 136G.11,
subdivision 2, is amended to read:
Subd. 2. [FAMILY INCOME.] (a) For purposes of this
section, "family income" means:
(1) if the beneficiary is under age 25, the combined
adjusted gross income of the beneficiary's parents or legal
guardians as reported on the federal tax return or returns for
the most recently available tax calendar year in which
contributions were made. If the beneficiary's parents are
divorced, the income of the parent claiming the beneficiary as a
dependent on the federal individual income tax return and the
income of that parent's spouse, if any, is used to determine
family income; or
(2) if the beneficiary is age 25 or older, the combined
adjusted gross income of the beneficiary and spouse, if any.
(b) For a parent or legal guardian of beneficiaries under
age 25 and for beneficiaries age 25 or older who resided in
Minnesota and filed a federal individual income tax return two
years prior to the year in which the matching grant is awarded,
the matching grant must be based on family income from Internal
Revenue Service tax data on file with the Minnesota department
of revenue.
(c) Parents or legal guardians of beneficiaries under age
25 and beneficiaries age 25 or older who did not reside in
Minnesota two years prior to the year in which the matching
grant is awarded must provide a signed copy of their federal
individual income tax return to the office, regardless of who
the account owner is, in order to be considered for a matching
grant, the matching grant must be based on family income from
the calendar year in which contributions were made.
Sec. 19. Minnesota Statutes 2002, section 136G.11,
subdivision 3, is amended to read:
Subd. 3. [RESIDENCY REQUIREMENT.] (a) If the beneficiary
is under age 25, the beneficiary's parents or legal guardians
must be Minnesota residents to qualify for a matching grant. If
the beneficiary is age 25 or older, the beneficiary must be a
Minnesota resident to qualify for a matching grant.
(b) To meet the residency requirements, the parent or legal
guardian of beneficiaries under age 25 must have filed a
Minnesota individual income tax return as a Minnesota resident,
claiming and claimed the beneficiary as a dependent, two years
prior to the year in which the matching grant is awarded on
their federal tax return for the calendar year in which
contributions were made. For beneficiaries age 25 or older, the
beneficiary, and a spouse, if any, must have filed a
Minnesota and a federal individual income tax return as a
Minnesota resident two years prior to the year in which the
matching grant is awarded for the calendar year in which
contributions were made.
(c) A parent of beneficiaries under age 25 and
beneficiaries age 25 or older who did not reside in Minnesota
two years prior to the year in which the matching grant is
awarded must establish Minnesota residency through the issuance
of a Minnesota driver's license or identification card in the
calendar year in which contributions were made are not eligible
for a matching grant.
Sec. 20. Minnesota Statutes 2002, section 136G.11,
subdivision 9, is amended to read:
Subd. 9. [ANNUAL APPLICATION.] An account owner must
submit an application form for a matching grant on an annual
basis. The application must be postmarked by December 31 May 1
of the year preceding the awarding of the in which the matching
grant would be awarded if the applicant qualifies for a matching
grant.
Sec. 21. Minnesota Statutes 2002, section 136G.11,
subdivision 13, is amended to read:
Subd. 13. [FORFEITURE OF MATCHING GRANTS.] (a) Matching
grants are forfeited if:
(1) the account owner transfers the total account balance
of an account to another account or to another qualified state
tuition program;
(2) the beneficiary receives a full tuition scholarship or
admission to a United States service academy;
(3) the beneficiary dies or becomes disabled;
(4) the account owner changes the beneficiary of the
account; or
(5) the account owner closes the account with a
nonqualified withdrawal.
(b) Matching grants must be proportionally forfeited if:
(1) the account owner transfers a portion of an account to
another account or to another qualified state tuition program;
(2) the beneficiary receives a scholarship covering a
portion of qualified higher education expenses; or
(3) the account owner makes a partial nonqualified
withdrawal.
(c) If the account owner makes a misrepresentation in a
participation agreement or an application for a matching grant
that results in a matching grant, the matching grant associated
with the misrepresentation is forfeited. The office and the
board must instruct the plan administrator as to the amount to
be forfeited from the matching grant account. The office and
the board must withdraw the matching grant or the proportion of
the matching grant that is related to the misrepresentation.
Sec. 22. Minnesota Statutes 2002, section 136G.13,
subdivision 1, is amended to read:
Subdivision 1. [QUALIFIED DISTRIBUTION METHODS.] (a)
Qualified distributions may be made:
(1) directly to participating eligible educational
institutions on behalf of the beneficiary; or
(2) in the form of a check payable to both the beneficiary
and the eligible educational institution; or.
(3) to an account owner with a receipt verifying the
payment of qualified higher education expenses.
(b) When administratively feasible, distributions may be
made when the account owner and beneficiary certify prior to the
distribution that the distribution will be expended for
qualified higher education expenses a reasonable time after the
distribution. The plan administrator may retain a penalty on
the earnings portion of the nonqualified distribution until
payment of qualified higher education expenses are
substantiated. A payment receipt showing payment for qualified
higher education expenses must be submitted to the program
administrator within 30 days of distribution.
(c) Qualified distributions must be withdrawn
proportionally from contributions and earnings in an account
owner's account on the date of distribution as provided in
section 529 of the Internal Revenue Code.
Sec. 23. Minnesota Statutes 2002, section 136G.13,
subdivision 3, is amended to read:
Subd. 3. [NONQUALIFIED DISTRIBUTION.] An account owner may
request a nonqualified distribution from an account at any
time. Nonqualified distributions are based on the total account
balances in an account owner's account and must be withdrawn
proportionally from contributions and earnings as provided in
section 529 of the Internal Revenue Code. The earnings portion
of a nonqualified distribution is subject to a penalty federal
additional tax pursuant to section 529 of the Internal Revenue
Code. For purposes of this subdivision, "earnings portion"
means the ratio of the earnings in the account to the total
account balance, immediately prior to the distribution,
multiplied by the distribution. The penalty must be withheld
from the total amount of any distribution.
Sec. 24. [136G.14] [MINOR TRUST ACCOUNTS.]
(a) This section applies to a plan account in which funds
of a minor trust account are invested.
(b) The account owner may not be changed to any person
other than a successor custodian or the beneficiary unless a
court order directing the change of ownership is provided to the
plan administrator. The custodian must sign all forms and
requests submitted to the plan administrator in the custodian's
representative capacity. The custodian must notify the plan
administrator in writing when the beneficiary becomes legally
entitled to be the account owner. An account owner under this
section may not select a contingent account owner.
(c) The beneficiary of an account under this section may
not be changed. If the beneficiary dies, assets in a plan
account become the property of the beneficiary's estate. Funds
in an account must not be transferred or rolled over to another
account owner or to an account for another beneficiary. A
nonqualified distribution from an account, or a distribution due
to the disability or scholarship award to the beneficiary, must
be used for the benefit of the beneficiary.
Sec. 25. Minnesota Statutes 2002, section 137.0245,
subdivision 2, is amended to read:
Subd. 2. [MEMBERSHIP.] The regent candidate advisory
council shall consist of 24 members. Twelve members shall be
appointed by the subcommittee on committees of the committee on
rules and administration of the senate. Twelve members shall be
appointed by the speaker of the house of representatives. Each
appointing authority must appoint one member who is a student
enrolled in a degree program at the University of Minnesota at
the time of appointment. 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 any member. Geographical
representation must be taken into consideration when making
appointments. Section 15.0575 shall govern the advisory
council, except that:
(1) the members shall be appointed to six-year terms with
one-third appointed each even-numbered year; and
(2) student members are appointed to two-year terms with
two students appointed each even-numbered year.
Sec. 26. Minnesota Statutes 2002, section 299A.45,
subdivision 2, is amended to read:
Subd. 2. [AWARD AMOUNT.] (a) The amount of the award
is the lesser of:
(1) for public institutions, the actual tuition and fees
charged by the institution; or
(2) for private institutions the lesser of (i) the
actual average tuition and fees charged by the institution; or
(ii) the highest tuition and fees charged by a public
institution in Minnesota
(2) the tuition maximums established by law for the state
grant program under section 136A.121.
(b) An award under this subdivision must not affect a
recipient's eligibility for a state grant under section 136A.121.
(c) For the purposes of this subdivision, "fees" include
only those fees that are mandatory and charged to all students
attending the institution.
Sec. 27. [LEARN AND EARN PROGRAM; POSTSECONDARY
OPPORTUNITIES ACCOUNT.]
The higher education services office shall maintain a
postsecondary opportunities account for students who earned
stipends and bonuses that were deposited in the account through
the learn and earn graduation achievement program under
Minnesota Statutes 2000, section 124D.32. A participating
student may, upon graduation from high school, use the funds
accumulated for the student toward the costs of attending a
Minnesota postsecondary institution or a career-training
program, including the costs of tuition, books, and lab fees.
Funds accumulated for a student must be available to the student
from the time a student graduates from high school until ten
years after the date the student entered the learn and earn
graduation achievement program. After ten years, the office
shall close the account and any remaining money in the account
must cancel to the general fund.
Sec. 28. [REPEALER.]
Minnesota Statutes 2002, section 136G.03, subdivision 25,
is repealed.
ARTICLE 4
MNSCU ADMINISTRATIVE CHANGES
Section 1. Minnesota Statutes 2002, section 136F.40,
subdivision 2, is amended to read:
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.
Sec. 2. Minnesota Statutes 2002, section 136F.45,
subdivision 1, is amended to read:
Subdivision 1. [PURCHASE.] (a) At the request of an
employee, the board may negotiate and purchase an individual
annuity contract 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 premium contribution due or to become due
under the contract account. The allocation shall be made in a
manner that will qualify the annuity premiums custodial account
contributions, or a portion 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 contract account and
the employee's rights thereunder shall be nonforfeitable except
for failure to pay premiums 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 higher education services
office as defined in section 136A.03. Participation under this
paragraph must be in accordance with any applicable federal law.
Sec. 3. Minnesota Statutes 2002, section 136F.45,
subdivision 2, is amended to read:
Subd. 2. [DEPOSITS; PAYMENT.] All amounts so allocated
shall be deposited in an annuity account established by the
board. Payment of annuity premiums 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 annuity account is not subject to the
budget, allotment, and incumbrance system provided for in
chapter 16A.
Sec. 4. Minnesota Statutes 2002, section 136F.581,
subdivision 1, is amended to read:
Subdivision 1. [CONDITIONS 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.
Sec. 5. Minnesota Statutes 2002, section 136F.581,
subdivision 2, is amended to read:
Subd. 2. [POLICIES AND PROCEDURES.] The board shall
develop policies, and each college and university shall develop
procedures, 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 system 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.
Sec. 6. Minnesota Statutes 2002, section 136F.59,
subdivision 3, is amended to read:
Subd. 3. [OFFICE OF TECHNOLOGY.] The system office of the
chancellor and the campuses shall cooperate with the office of
technology in its responsibility to coordinate information and
communications technology development throughout the state. The
system and campuses shall consult with the office of technology
throughout any efforts to plan or implement information and
communication systems to ensure that the systems are effective,
efficient, and, where appropriate, compatible with other state
systems.
Sec. 7. Minnesota Statutes 2002, section 136F.60,
subdivision 3, is amended to read:
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.
Sec. 8. [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.
Sec. 9. [REPEALER.]
Minnesota Statutes 2002, sections 136F.13; 136F.56;
136F.582; and 136F.59, subdivision 2, are repealed.
Presented to the governor May 24, 2003
Signed by the governor May 28, 2003, 1:30 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes