1.1                          A bill for an act
  1.2             relating to education; restructuring the merger of the 
  1.3             state universities, community colleges, and technical 
  1.4             colleges to enhance campus autonomy and decision 
  1.5             making; altering and clarifying the functions and 
  1.6             duties of the campuses and the state board; specifying 
  1.7             the range in which allocations among campuses may 
  1.8             vary; authorizing campuses to set tuition rates; 
  1.9             consolidating and restructuring certain higher 
  1.10            education statutes to reflect the merger; amending 
  1.11            Minnesota Statutes 1994, sections 15.38, subdivision 
  1.12            3; 136E.01, subdivision 1; 136E.02, subdivisions 1 and 
  1.13            3; 136E.021, subdivision 2; 136E.04, subdivisions 1, 
  1.14            2, 3, 7, and by adding subdivisions; 136E.05; 136E.31; 
  1.15            136E.395; 136E.525, subdivision 1; and 136E.692, 
  1.16            subdivisions 1, 3, and 4; proposing coding for new law 
  1.17            as Minnesota Statutes, chapter 136F; repealing 
  1.18            Minnesota Statutes 1994, sections 15.38, subdivision 
  1.19            4; 136.01; 136.02; 136.03; 136.031; 136.036; 136.045; 
  1.20            136.065; 136.09; 136.10; 136.11; 136.111; 136.12; 
  1.21            136.13; 136.14; 136.141; 136.142; 136.143; 136.144; 
  1.22            136.145; 136.146; 136.147; 136.172; 136.18; 136.19; 
  1.23            136.20; 136.21; 136.22; 136.232; 136.24; 136.25; 
  1.24            136.261; 136.27; 136.31; 136.311; 136.32; 136.33; 
  1.25            136.34; 136.35; 136.36; 136.37; 136.38; 136.40; 
  1.26            136.41; 136.42; 136.43; 136.44; 136.45; 136.46; 
  1.27            136.47; 136.48; 136.49; 136.50; 136.501; 136.502; 
  1.28            136.503; 136.504; 136.505; 136.506; 136.507; 136.55; 
  1.29            136.56; 136.57; 136.58; 136.60; 136.602; 136.603; 
  1.30            136.61; 136.62; 136.621; 136.622; 136.63; 136.65; 
  1.31            136.651; 136.653; 136.67; 136.70; 136.71; 136.72; 
  1.32            136.88; 136.90; 136C.01; 136C.02; 136C.03; 136C.04; 
  1.33            136C.041; 136C.043; 136C.044; 136C.05; 136C.06; 
  1.34            136C.07; 136C.075; 136C.08; 136C.13; 136C.15; 136C.17; 
  1.35            136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 136C.44; 
  1.36            136C.50; 136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 
  1.37            136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 136C.69; 
  1.38            136C.70; 136C.71; 136C.75; 136E.04, subdivisions 2, 4, 
  1.39            5, and 6; and Laws 1994, chapter 532, article 6, 
  1.40            section 12, paragraph (a). 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42     Section 1.  [INTENT.] 
  1.43     The legislature recognizes the importance of higher 
  2.1   education to the future of Minnesota and its residents.  At the 
  2.2   same time, the legislature acknowledges the fiscal constraints 
  2.3   facing the state and the decline in state funding that higher 
  2.4   education has experienced.  Therefore, the legislature intends 
  2.5   to seek ways to preserve access to quality education in the 
  2.6   state while minimizing unnecessary bureaucratic expenses.  
  2.7   Recognizing that the key to access and quality lies at the local 
  2.8   level where education is delivered, the legislature intends to 
  2.9   strengthen the autonomy of public colleges and universities to 
  2.10  enable them to make critical choices and to concentrate scarce 
  2.11  resources on the instruction of students.  To these ends, the 
  2.12  legislature intends that the merger of the state universities, 
  2.13  community colleges, and technical colleges minimize system level 
  2.14  control and personnel by focusing decision making at the campus 
  2.15  level and restricting the authority of the system to those areas 
  2.16  where it is clearly serving a statewide interest. 
  2.17                            DEFINITIONS 
  2.18     Sec. 2.  Minnesota Statutes 1994, section 15.38, 
  2.19  subdivision 3, is amended to read: 
  2.20     Subd. 3.  [MINNESOTA STATE COLLEGES AND UNIVERSITIES.] The 
  2.21  state university board of trustees of the Minnesota state 
  2.22  colleges and universities may purchase insurance coverage as it 
  2.23  deems necessary and appropriate to protect buildings and 
  2.24  contents and for activities ancillary to the programs of the 
  2.25  state colleges and universities. 
  2.26     Sec. 3.  [136F.01] [DEFINITIONS.] 
  2.27     Subdivision 1.  [SCOPE.] For the purpose of this chapter, 
  2.28  the following terms have the meanings given them.  
  2.29     Subd. 2.  [BOARD OR BOARD OF TRUSTEES.] "Board" or "board 
  2.30  of trustees" means the board of trustees of the Minnesota state 
  2.31  colleges and universities.  
  2.32     Subd. 3.  [CHANCELLOR.] "Chancellor" means the chancellor 
  2.33  of the Minnesota state colleges and universities.  
  2.34     Subd. 4.  [STATE COLLEGES AND UNIVERSITIES.] "State 
  2.35  colleges and universities" means Minnesota state colleges and 
  2.36  universities governed by the board of trustees.  
  3.1      Subd. 5.  [STUDENT ACTIVITIES.] "Student activities" means 
  3.2   lectures, concerts, and other functions contributing to the 
  3.3   mental, moral, and cultural development of the student body and 
  3.4   community in which they live, athletic activities, including 
  3.5   intercollegiate contests, forensics, dramatics, and such other 
  3.6   activities of any nature as in the opinion of the board 
  3.7   contribute to the educational, cultural, or physical well being 
  3.8   of the student body.  
  3.9                          BOARD OF TRUSTEES 
  3.10     Sec. 4.  Minnesota Statutes 1994, section 136E.01, 
  3.11  subdivision 1, is amended to read: 
  3.12     Subdivision 1.  [MEMBERSHIP.] The higher education board, 
  3.13  referred to in sections 136E.01 to 136E.05 as "the board," 
  3.14  consists of 15 members appointed by the governor with the advice 
  3.15  and consent of the senate.  At least one member of the board 
  3.16  must be a resident of each congressional district.  Three 
  3.17  members must be students who are enrolled at least half-time in 
  3.18  a degree, diploma, or certificate program or have graduated from 
  3.19  an institution governed by the board within one year of the date 
  3.20  of appointment.  The student members shall include:  one member 
  3.21  from a community college, one member from a state university, 
  3.22  and one member from a technical college.  The remaining members 
  3.23  must be appointed to represent the state at large.  
  3.24     Sec. 5.  Minnesota Statutes 1994, section 136E.02, 
  3.25  subdivision 1, is amended to read: 
  3.26     Subdivision 1.  [PURPOSE.] A higher education candidate 
  3.27  advisory council for the board candidate advisory council of 
  3.28  trustees of the Minnesota state colleges and universities shall 
  3.29  assist the governor in determining criteria for, and identifying 
  3.30  and recruiting qualified candidates for, nonstudent membership 
  3.31  on the higher education board. 
  3.32     Sec. 6.  Minnesota Statutes 1994, section 136E.02, 
  3.33  subdivision 3, is amended to read: 
  3.34     Subd. 3.  [DUTIES.] The advisory council shall: 
  3.35     (1) develop a statement of the selection criteria to be 
  3.36  applied and a description of the responsibilities and duties of 
  4.1   a member of the higher education board and shall distribute this 
  4.2   to potential candidates; and 
  4.3      (2) for each position on the board, identify and recruit 
  4.4   qualified candidates for the board, based on the background and 
  4.5   experience of the candidates, and their potential for 
  4.6   discharging the responsibilities of a member of the board. 
  4.7      Sec. 7.  Minnesota Statutes 1994, section 136E.021, 
  4.8   subdivision 2, is amended to read: 
  4.9      Subd. 2.  [CRITERIA.] After consulting with the higher 
  4.10  education board of trustees candidate advisory council, the 
  4.11  student associations shall jointly develop a statement of the 
  4.12  selection criteria to be applied to potential candidates. 
  4.13     Sec. 8.  Minnesota Statutes 1994, section 136E.04, 
  4.14  subdivision 1, is amended to read: 
  4.15     Subdivision 1.  [GENERAL AUTHORITY.] The board shall 
  4.16  manage, supervise, and control the technical colleges, community 
  4.17  colleges, and state universities and all related property.  It 
  4.18  shall prescribe courses of study and conditions of admission, 
  4.19  prepare and confer diplomas, and adopt suitable policies for the 
  4.20  institutions it manages.  Sections 14.01 to 14.47 do not apply 
  4.21  to policies and procedures of the board. [MANAGEMENT OF COLLEGES 
  4.22  AND UNIVERSITIES.] Management of state universities, community 
  4.23  colleges, and technical colleges is vested in the college or 
  4.24  university president and other administrators of each campus.  
  4.25  Except for authorities expressly provided to the governing board 
  4.26  in this section or elsewhere in law, general management, 
  4.27  supervision, and control of the colleges remains with the campus 
  4.28  president.  
  4.29     Sec. 9.  Minnesota Statutes 1994, section 136E.04, is 
  4.30  amended by adding a subdivision to read: 
  4.31     Subd. 1a.  [DUTIES OF THE GOVERNING BOARD.] The higher 
  4.32  education board is charged with serving the needs of the state 
  4.33  universities, community colleges, and technical colleges in the 
  4.34  state.  It shall provide the services required by law, and those 
  4.35  deemed necessary by the colleges and universities and assist in 
  4.36  coordinating their activities.  In consultation with the campus 
  5.1   presidents or their designees, the board shall develop general 
  5.2   policies to protect the statutory missions of the institutions 
  5.3   and to provide for their financial support.  These policies 
  5.4   shall be restricted to awarding of degrees and diplomas, final 
  5.5   approval or disapproval of programs, general facilities 
  5.6   management, financial accounting and allocation of funds, 
  5.7   collective bargaining, revenue fund management, and government 
  5.8   relations. 
  5.9      Sec. 10.  Minnesota Statutes 1994, section 136E.04, 
  5.10  subdivision 2, is amended to read: 
  5.11     Subd. 2.  [PERSONNEL.] The board shall appoint all 
  5.12  presidents, teachers, and other necessary employees as provided 
  5.13  in this subdivision. 
  5.14     (a) Except in the case of presidents, in appointing any 
  5.15  employees at the colleges and universities, the board shall 
  5.16  confirm appointments recommended by the president if the 
  5.17  recommendations are based on a reasonable search policy 
  5.18  prescribed by the campus and the board cannot show just cause 
  5.19  for denying the appointment.  Salaries and benefits of employees 
  5.20  must be determined according to chapters 43A and 179A. 
  5.21     (b) In the case of presidents, the college or university 
  5.22  chief executive, in conjunction with the campus local advisory 
  5.23  committee, shall appoint a search committee with representation 
  5.24  from the campus faculty, staff, students, and administrators, 
  5.25  and from the board.  The search committee shall submit its 
  5.26  presidential choice to the board for approval.  If the search 
  5.27  committee chooses to, it may submit more than one candidate from 
  5.28  which the board shall select and appoint a president.  
  5.29     (c) The board, in consultation with the presidents, shall 
  5.30  appoint a chancellor who shall serve in the unclassified 
  5.31  service.  The chancellor shall be qualified by training and 
  5.32  experience in the field of education or administration.  The 
  5.33  chancellor shall possess powers and perform duties as delegated 
  5.34  by the board.  The board shall set the salary of the chancellor 
  5.35  according to section 15A.081, subdivision 7b. 
  5.36     Sec. 11.  Minnesota Statutes 1994, section 136E.04, 
  6.1   subdivision 3, is amended to read: 
  6.2      Subd. 3.  [BUDGET.] In conjunction with the colleges and 
  6.3   universities, the board shall submit to the governor and the 
  6.4   legislature develop the budget request requests for its several 
  6.5   different programs of study and submit them to the governor and 
  6.6   the legislature.  The budget shall contain a separate request 
  6.7   for the support of the central office.  In conjunction with the 
  6.8   campus presidents, the board shall set bonding priorities from 
  6.9   among the campus requests.  The board shall submit these 
  6.10  priorities to the governor and the legislature.  
  6.11     Sec. 12.  Minnesota Statutes 1994, section 136E.04, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 3a.  [CONTRACTING WITH BOARD.] A campus or group of 
  6.14  campuses may contract with the board or other public or private 
  6.15  entities for the provision of services other than those 
  6.16  specified in subdivision 1a, if the campus determines that a 
  6.17  service can be more efficiently or effectively provided by the 
  6.18  board or another entity. 
  6.19     Sec. 13.  Minnesota Statutes 1994, section 136E.04 is 
  6.20  amended by adding a subdivision to read: 
  6.21     Subd. 4a.  [OFFICE LOCATION.] Notwithstanding chapter 16B, 
  6.22  the board may select the location for its central office. 
  6.23     Sec. 14.  [136F.10] [DESIGNATION.] 
  6.24     The following are member campuses of the Minnesota state 
  6.25  colleges and universities:  Anoka-Ramsey, Austin, Fergus Falls, 
  6.26  Fond du Lac, Hibbing, Inver Hills, Itasca, Lakewood, Mesabi, 
  6.27  Minneapolis, Normandale, North Hennepin, Rainy River, Rochester, 
  6.28  Vermilion, Willmar, and Worthington community colleges; 
  6.29  Cambridge community college center; Bemidji, Mankato, 
  6.30  Metropolitan, Moorhead, St. Cloud, Southwest, and Winona state 
  6.31  universities; Albert Lea, Alexandria, Anoka, Austin, Bemidji, 
  6.32  Canby, Dakota county, Detroit Lakes, East Grand Forks, Eveleth, 
  6.33  Faribault, Granite Falls, Hennepin, Hibbing, Hutchinson, 
  6.34  Jackson, Mankato, Minneapolis, Moorhead, Northeast Metro, Pine, 
  6.35  Pipestone, Red Wing, Rochester, St. Cloud, St. Paul, Staples, 
  6.36  Wadena, Willmar, and Winona technical colleges; and Central 
  7.1   Lakes, Lake Superior, and Northland community-technical colleges.
  7.2      Sec. 15.  [136F.14] [CAMPUS MERGER OR REORGANIZATION.] 
  7.3      The board, in consultation with, or at the request of, the 
  7.4   affected campuses, may merge or reorganize campuses or centers 
  7.5   for the purpose of increased efficiency, use of personnel, 
  7.6   placement of programs, student access, and other needs as 
  7.7   determined by the board. 
  7.8      Sec. 16.  [136F.16] [CAMPUS ESTABLISHMENT.] 
  7.9      Subdivision 1.  [NEW STATE COLLEGES AND UNIVERSITIES.] A 
  7.10  new state college or university shall be established only by 
  7.11  specific legislation.  For the purposes of this subdivision, 
  7.12  campuses or centers that are merged or reorganized under section 
  7.13  136F.14 are not new state colleges or universities. 
  7.14     Subd. 2.  [CAMPUS OR CENTER SITE.] The board may determine 
  7.15  the exact location and site for each campus or center. 
  7.16     Subd. 3.  [OFF-CAMPUS SITES.] The board shall not establish 
  7.17  off-campus centers or other permanent sites to provide academic 
  7.18  programs, courses, or student services without authorizing 
  7.19  legislation.  For the purposes of this subdivision, the campus 
  7.20  of Metropolitan State University is the seven-county 
  7.21  metropolitan area.  
  7.22     Sec. 17.  [136F.18] [CAMPUS CLOSING.] 
  7.23     The board, in consultation with the affected campus, may 
  7.24  close a campus or center under its jurisdiction.  Prior to 
  7.25  closing a campus or center, the board shall hold a public 
  7.26  hearing on the issue in the area which would be affected by the 
  7.27  closing.  At the hearing affected persons shall have an 
  7.28  opportunity to present testimony.  The board shall give notice 
  7.29  of this hearing by publishing notice in the State Register and 
  7.30  in a newspaper of general circulation in the affected area at 
  7.31  least 30 days before the scheduled hearing.  
  7.32                              STUDENTS 
  7.33     Sec. 18.  Minnesota Statutes 1994, section 136E.04, 
  7.34  subdivision 7, is amended to read: 
  7.35     Subd. 7.  [REGISTRATION AND FINANCIAL AID.] The board shall 
  7.36  may devise a student registration system that simplifies and 
  8.1   combines registration for the institutions it governs, improves 
  8.2   the financial aid application process for students, and provides 
  8.3   registration at common locations. 
  8.4      Sec. 19.  [136F.21] [STUDENT HEALTH.] 
  8.5      Subdivision 1.  [HEALTH SERVICE.] Each state college and 
  8.6   university may offer health services for students.  The health 
  8.7   services may be offered either on campus or in the nearby 
  8.8   community.  The board may charge each student a health service 
  8.9   fee.  The fees shall be used to maintain the health service and 
  8.10  equip and construct facilities, or to contract for health, 
  8.11  medical, and hospitalization insurance for students.  The fees 
  8.12  shall be deposited in an activity fund and are annually 
  8.13  appropriated to the board for the purposes of this subdivision.  
  8.14  Each state college or university that offers health services 
  8.15  shall provide an annual financial accounting of the health 
  8.16  service money to the board.  
  8.17     Subd. 2.  [HEALTH BENEFITS.] The board may contract for 
  8.18  hospital benefits coverage and medical benefits coverage for 
  8.19  students in the state colleges and universities in the same 
  8.20  manner as authorized by section 43A.23 for state employees.  
  8.21     Sec. 20.  Minnesota Statutes 1994, section 136E.525, 
  8.22  subdivision 1, is amended to read: 
  8.23     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
  8.24  statewide student association for the community colleges, one 
  8.25  for the state universities, and one for the technical colleges.  
  8.26  Each statewide campus student association shall be affiliated 
  8.27  with its campus statewide student associations but association 
  8.28  and all students enrolled on those campuses shall be members of 
  8.29  their respective statewide association. 
  8.30     Sec. 21.  [136F.23] [STUDENTS; RECIPROCITY WITH OTHER 
  8.31  INSTITUTIONS.] 
  8.32     (a) A state university or the board may enter into 
  8.33  contracts with private or public colleges or universities in 
  8.34  other states and in foreign countries and with private colleges 
  8.35  in this state on a reciprocal basis in order to accomplish the 
  8.36  following:  
  9.1      (1) to enable a student at any institution party to a 
  9.2   contract under this section to take a specialized course or 
  9.3   courses at a different institution from that in which the 
  9.4   student is enrolled, with or without the payment of tuition 
  9.5   charges at the other institution; and 
  9.6      (2) to enable a student enrolled in any of the institutions 
  9.7   party to the contract to attend another institution party to the 
  9.8   contract without being required to pay nonresident tuition fees 
  9.9   and in accordance with the terms of the contract.  
  9.10     (b) A contract entered into under this section shall 
  9.11  provide for approximately equal advantages between the 
  9.12  contracting institutions and shall provide that the admission of 
  9.13  nonresidents shall be on a space available basis only. 
  9.14     Sec. 22.  [136F.24] [LEGAL COUNSELING AND SERVICE PROGRAM; 
  9.15  FUNDING.] 
  9.16     (a) Notwithstanding section 8.06, or any other law or rule 
  9.17  to the contrary, the official campus student association at each 
  9.18  state college or university may expend money for the purpose of 
  9.19  funding a program to provide legal counseling and services to 
  9.20  students of the state college or university.  The money to be 
  9.21  expended shall be from that certain account of the state college 
  9.22  and university activity funds allocated to the student 
  9.23  associations.  
  9.24     (b) In addition to the provisions of paragraph (a), the 
  9.25  statewide college and university student associations may expend 
  9.26  money assigned to them to fund a legal counseling and service 
  9.27  program. 
  9.28     Sec. 23.  [136F.28] [SOUTHWEST ASIA VETERANS; TECHNICAL 
  9.29  COLLEGES.] 
  9.30     Subdivision 1.  [GRANTS.] A Southwest Asia veteran who 
  9.31  enrolls in a technical college program, and who is a Minnesota 
  9.32  resident whose entire education has not included completion of 
  9.33  at least one technical college program is eligible for a state 
  9.34  grant of $500 per year if the veteran has GI Montgomery bill 
  9.35  benefits, or $1,000 per year if the veteran does not have GI 
  9.36  Montgomery bill benefits, until the veteran has completed the 
 10.1   lesser of (1) 115 credits in a technical college program, or (2) 
 10.2   one technical college program.  The grant is based on full-time 
 10.3   attendance and shall be prorated if the student is attending 
 10.4   less than full time.  To be eligible for the tuition relief, a 
 10.5   veteran who is discharged before July 1, 1993, must enroll in a 
 10.6   technical college by July 1, 1995, and a veteran who is 
 10.7   discharged on or after July 1, 1993, must enroll in a technical 
 10.8   college within two years of the date of discharge.  All veterans 
 10.9   enrolled under this program must maintain a minimum of six 
 10.10  credits per quarter.  Total grants may not exceed the available 
 10.11  appropriation.  
 10.12     Subd. 2.  [DEFINITIONS.] For the purpose of this section, 
 10.13  "Southwest Asia veteran" means a person who:  
 10.14     (1) served in the active military service in any branch of 
 10.15  the armed forces of the United States any time between August 1, 
 10.16  1990, and February 27, 1992; 
 10.17     (2) became eligible for the Southwest Asia Service Medal as 
 10.18  a result of the service; 
 10.19     (3) was a Minnesota resident at the time of induction into 
 10.20  the armed forces and for the one year immediately preceding 
 10.21  induction; and 
 10.22     (4) has been separated or discharged from active military 
 10.23  service under conditions other than dishonorable.  
 10.24                             CURRICULUM 
 10.25     Sec. 24.  [136F.30] [COURSES AND PROGRAMS.] 
 10.26     Subdivision 1.  [PROGRAMS OF STUDY.] A college or 
 10.27  university shall present proposed programs, including graduate 
 10.28  and undergraduate academic programs, training in professional, 
 10.29  semiprofessional and technical fields, and adult education, to 
 10.30  the board for review and final approval.  The board shall avoid 
 10.31  unnecessary duplicate program offerings.  The board shall place 
 10.32  a high priority on ensuring the transferability of credit. 
 10.33     Subd. 2.  [SHORT-TERM PROGRAMS.] A college or university 
 10.34  may offer a short-term program as an economic development 
 10.35  initiative.  The short-term program shall have an approved 
 10.36  program length of not more than two years, be operated for a 
 11.1   specified duration, and shall not become permanent unless 
 11.2   approved by the board as provided in subdivision 1.  
 11.3      Sec. 25.  [136F.32] [DEGREES; DIPLOMAS; CERTIFICATES.] 
 11.4      The board may: 
 11.5      (1) award appropriate certificates, diplomas, or degrees to 
 11.6   persons who complete a prescribed curriculum; and 
 11.7      (2) only after receiving approval from the legislature to 
 11.8   plan or develop doctoral level programs or degrees, institute a 
 11.9   prescribed doctoral curriculum and award the appropriate 
 11.10  doctoral degree to persons who complete the prescribed 
 11.11  curriculum. 
 11.12     Sec. 26.  [136F.35] [MODEL SCHOOLS.] 
 11.13     The board may establish model schools in a state university 
 11.14  for illustrating methods of teaching. 
 11.15                          HUMAN RESOURCES 
 11.16     Sec. 27.  [136F.40] [APPOINTMENT OF PERSONNEL.] 
 11.17     Subdivision 1.  [APPOINTMENT.] The board shall appoint all 
 11.18  presidents, teachers, and other necessary employees and shall 
 11.19  prescribe their duties consistent with chapter 43A.  Salaries 
 11.20  and benefits of employees must be determined according to 
 11.21  chapters 43A and 179A.  
 11.22     Subd. 2.  [INTERVIEW EXPENSES.] Candidates for positions in 
 11.23  the board office or in a state college or university who have 
 11.24  been invited by the board or campus for an interview may be 
 11.25  reimbursed for travel and subsistence expenses in the same 
 11.26  manner and amounts as state employees.  
 11.27     Sec. 28.  Minnesota Statutes 1994, section 136E.31, is 
 11.28  amended to read: 
 11.29     136E.31 [ASSIGNMENT TO BARGAINING UNITS.] 
 11.30     Actions by the higher education board to merge or 
 11.31  redesignate institutions or to promote collaborative efforts 
 11.32  between institutions must not unilaterally change faculty 
 11.33  assignments to bargaining units provided in section 179A.10, 
 11.34  subdivision 2. 
 11.35     Sec. 29.  [136F.42] [EXTENDED LEAVES OF ABSENCE.] 
 11.36     Subdivision 1.  [DEFINITION.] As used in this section, 
 12.1   "teacher" means a person on the instructional or administrative 
 12.2   staff of the state colleges and universities who is a member of 
 12.3   the teachers retirement association under chapter 354 or who is 
 12.4   covered by the unclassified employees plan under chapter 352D or 
 12.5   individual retirement account plan under chapter 354B.  It shall 
 12.6   not include a chancellor, deputy chancellor, or vice-chancellor. 
 12.7      Subd. 2.  [GRANTING AUTHORITY.] The board may grant an 
 12.8   extended leave of absence without salary to a full-time teacher 
 12.9   who has been employed by the board for at least five years and 
 12.10  has at least ten years of allowable service as defined in 
 12.11  section 354.05, subdivision 13.  The maximum duration of an 
 12.12  extended leave of absence under this section shall be determined 
 12.13  by mutual agreement of the board and the teacher at the time the 
 12.14  leave is granted and shall be at least three but no more than 
 12.15  five years.  An extended leave of absence under this section 
 12.16  shall be taken by mutual consent of the board and the teacher.  
 12.17  No teacher may receive more than one leave of absence under this 
 12.18  section.  
 12.19     Subd. 3.  [REINSTATEMENT.] A teacher on an extended leave 
 12.20  of absence under this section shall have the right to be 
 12.21  reinstated to the same position or a similar position within the 
 12.22  department or program from which the leave was granted at the 
 12.23  beginning of the school year that immediately follows a year of 
 12.24  extended leave of absence, unless the teacher is discharged or 
 12.25  placed on retrenchment or on layoff or the teacher's contract is 
 12.26  terminated while the teacher is on the extended leave.  The 
 12.27  board shall not be obligated to reinstate a teacher who is on an 
 12.28  extended leave of absence under this section unless the teacher 
 12.29  advises the board of an intention to return before February 1 in 
 12.30  the school year preceding the school year in which the teacher 
 12.31  wishes to return.  
 12.32     Subd. 4.  [SENIORITY RIGHTS.] A teacher who is reinstated 
 12.33  to the same or similar position after an extended leave under 
 12.34  this section shall not lose tenure or credit for previous 
 12.35  seniority in the employing state college or university.  A 
 12.36  teacher shall not accrue seniority credit during the time of a 
 13.1   leave of absence under this section, except that a teacher at a 
 13.2   state college or university may accrue seniority credit during 
 13.3   the leave, consistent with the conditions of the collective 
 13.4   bargaining agreement.  
 13.5      Subd. 5.  [SALARY.] The years spent by a teacher on an 
 13.6   extended leave of absence under this section shall not be 
 13.7   included in the determination of the teacher's salary upon 
 13.8   reinstatement to the same or similar position by the board.  The 
 13.9   credits earned by a teacher on an extended leave of absence 
 13.10  under this section shall not be included in the determination of 
 13.11  the teacher's salary upon reinstatement to the same or similar 
 13.12  position by the board for a period of time equal to the time of 
 13.13  the extended leave of absence.  
 13.14     Subd. 6.  [ALTERNATE LEAVE.] The board may grant a teacher 
 13.15  a leave of absence which is not subject to the provisions of 
 13.16  this section and section 354.094. 
 13.17     Sec. 30.  [136F.43] [ANNUITIES.] 
 13.18     Subdivision 1.  [PURCHASE.] At the request of an employee, 
 13.19  the board may negotiate and purchase an individual annuity 
 13.20  contract for an employee for retirement or other purposes from a 
 13.21  company licensed to do business in Minnesota, and may allocate a 
 13.22  portion of the compensation otherwise payable to the employee as 
 13.23  salary for the purpose of paying the entire premium due or to 
 13.24  become due under the contract.  The allocation shall be made in 
 13.25  a manner that will qualify the annuity premiums, or a portion 
 13.26  thereof, for the benefit afforded under section 403(b) of the 
 13.27  current federal Internal Revenue Code or any equivalent 
 13.28  provision of subsequent federal income tax law.  The employee 
 13.29  shall own the contract and the employee's rights thereunder 
 13.30  shall be nonforfeitable except for failure to pay premiums.  
 13.31     Subd. 2.  [DEPOSITS; PAYMENT.] All amounts so allocated 
 13.32  shall be deposited in an annuity account established by the 
 13.33  board.  Payment of annuity premiums shall be made when due or in 
 13.34  accordance with the salary agreement entered into between the 
 13.35  employee and the board.  The money in the annuity account is not 
 13.36  subject to the budget, allotment, and incumbrance system 
 14.1   provided for in chapter 16A.  
 14.2      Sec. 31.  [136F.44] [NONPROFIT FOUNDATION PAYROLL 
 14.3   DEDUCTION.] 
 14.4      Subdivision 1.  [REQUEST; WARRANT.] The commissioner of 
 14.5   finance, upon the written request of an employee of the board, 
 14.6   may deduct from an employee's salary or wages the amount 
 14.7   requested for payment to a nonprofit state college or university 
 14.8   foundation meeting the requirements in subdivision 2.  The 
 14.9   commissioner shall issue a warrant for the deducted amount to 
 14.10  the nonprofit foundation.  
 14.11     Subd. 2.  [FOUNDATION APPLICATION; APPROVAL.] A nonprofit 
 14.12  state college or university foundation that desires to receive 
 14.13  contributions through payroll deductions shall apply to the 
 14.14  board for approval to participate in the payroll deduction 
 14.15  plan.  The board may approve the application for participation 
 14.16  if the foundation:  
 14.17     (1) is tax exempt under section 501(c)3 of the Internal 
 14.18  Revenue Code of 1986, as amended; 
 14.19     (2) qualifies for tax deductible contributions under 
 14.20  section 170 of the Internal Revenue Code of 1986, as amended; 
 14.21     (3) secures funding solely for distribution to a state 
 14.22  college or university; and 
 14.23     (4) has been incorporated according to chapter 317A for at 
 14.24  least one calendar year before the date it applies to the board 
 14.25  for approval.  
 14.26     Subd. 3.  [SOLICITATION.] Efforts to secure payroll 
 14.27  deductions authorized in subdivision 1 may not interfere with, 
 14.28  require a modification of, nor be conducted during the period of 
 14.29  a payroll deduction fund drive for employees authorized by 
 14.30  section 309.501. 
 14.31     Sec. 32.  [136F.45] [EMPLOYER-PAID HEALTH INSURANCE.] 
 14.32     (a) This section applies to a person who:  
 14.33     (1) retires from the state university system, the technical 
 14.34  college system, or the community college system, or from a 
 14.35  successor system employing state university, technical college, 
 14.36  or community college faculty, with at least ten years of service 
 15.1   credit in the system from which the person retires; 
 15.2      (2) was employed on a full-time basis immediately preceding 
 15.3   retirement as a state university, technical college, or 
 15.4   community college faculty member; 
 15.5      (3) begins drawing an annuity from the teachers retirement 
 15.6   association or from the first class cities teachers retirement 
 15.7   funds; and 
 15.8      (4) returns to work on not less than a one-third time basis 
 15.9   and not more than a two-thirds time basis in the system from 
 15.10  which the person retired under an agreement in which the person 
 15.11  may not earn a salary of more than $35,000 in a calendar year 
 15.12  from employment in the system from which the person retired.  
 15.13     (b) Initial participation, the amount of time worked, and 
 15.14  the duration of participation under this section must be 
 15.15  mutually agreed upon by the employer and the employee.  The 
 15.16  employer may require up to one-year notice of intent to 
 15.17  participate in the program as a condition of participation under 
 15.18  this section.  The employer shall determine the time of year the 
 15.19  employee shall work.  
 15.20     (c) For a person eligible under paragraphs (a) and (b), the 
 15.21  employing board shall make the same employer contribution for 
 15.22  hospital, medical, and dental benefits as would be made if the 
 15.23  person were employed full time.  
 15.24     (d) For work under paragraph (a), a person must receive a 
 15.25  percentage of the person's salary at the time of retirement that 
 15.26  is equal to the percentage of time the person works compared to 
 15.27  full-time work.  
 15.28     (e) If a collective bargaining agreement covering a person 
 15.29  provides for an early retirement incentive that is based on age, 
 15.30  the incentive provided to the person must be based on the 
 15.31  person's age at the time employment under this section ends.  
 15.32  However, the salary used to determine the amount of the 
 15.33  incentive must be the salary that would have been paid if the 
 15.34  person had been employed full time for the year immediately 
 15.35  preceding the time employment under this section ends.  
 15.36     Sec. 33.  Minnesota Statutes 1994, section 136E.395, is 
 16.1   amended to read: 
 16.2      136E.395 [EARLY SEPARATION INCENTIVES.] 
 16.3      Subdivision 1.  [EMPLOYER PARTICIPATION; HIGHER EDUCATION 
 16.4   AGENCIES.] (a) In order to minimize the disruptive effects of 
 16.5   layoffs or reorganization attributable to the merger of the 
 16.6   state universities, community colleges, and technical colleges, 
 16.7   and the restructuring of the higher education coordinating 
 16.8   board, employees of the higher education coordinating board, the 
 16.9   state university, community college, and technical college 
 16.10  systems, and employees of local school districts, joint 
 16.11  technical districts, and intermediate districts assigned to a 
 16.12  technical college position, who are employed in positions that 
 16.13  are to be eliminated in the merger and restructuring, as 
 16.14  certified by the chancellor of the higher education board or the 
 16.15  executive director of the higher education coordinating board, 
 16.16  are entitled to elect an early separation incentive set forth in 
 16.17  subdivision 3. 
 16.18     (b) The higher education board and the higher education 
 16.19  coordinating board must determine those specific positions to be 
 16.20  permanently eliminated as part of the merger or restructuring 
 16.21  and identify the employees who may elect one of the early 
 16.22  separation incentives established by this section. 
 16.23     Subd. 2.  [ELIGIBILITY.] A person employed by the employing 
 16.24  units identified in subdivision 1 is eligible to elect the 
 16.25  incentive if the person: 
 16.26     (1) is an employee of the higher education coordinating 
 16.27  board, a state university, community college, or technical 
 16.28  college, or an administrative employee of a local school 
 16.29  district, joint technical district and intermediate district 
 16.30  assigned to a technical college position whose position is to be 
 16.31  eliminated; 
 16.32     (2) is at least age 55 but is not yet age 65; 
 16.33     (3) is employed in a permanent position and in active work 
 16.34  status at the time the incentive is elected; 
 16.35     (4) upon retirement, termination, or separation is 
 16.36  immediately eligible for a retirement annuity from a defined 
 17.1   benefit Minnesota public employee pension plan or a distribution 
 17.2   from a defined contribution Minnesota public employee pension 
 17.3   plan; 
 17.4      (5) retires, separates, or is terminated from an eligible 
 17.5   position after June 30, 1994, but before July 1, 1996; and 
 17.6      (6) has been certified by the chancellor of the higher 
 17.7   education board or the executive director of the higher 
 17.8   education coordinating board as eligible to elect an early 
 17.9   separation incentive. 
 17.10     Subd. 3.  [INCENTIVES.] (a) Eligible employees may elect 
 17.11  one of the following incentives but may not elect both.  
 17.12     (b) Retirement under this section means permanent 
 17.13  separation or termination from employment with or under the 
 17.14  control of the higher education board, the higher education 
 17.15  coordinating board, or the higher education systems to be merged.
 17.16     (c) Employees who separate, terminate, or retire with the 
 17.17  early retirement incentive under paragraph (e) may not be 
 17.18  rehired by the state in any employment position under the 
 17.19  control of the higher education board or the higher education 
 17.20  coordinating board. 
 17.21     (d) An eligible employee who receives a termination notice 
 17.22  after July 1, 1994, may elect to take a six-month retraining 
 17.23  leave in order to complete a course of study that is approved by 
 17.24  the higher education board or the higher education coordinating 
 17.25  board and which is designed to prepare the employee to assume a 
 17.26  faculty position at a state university, community college, or 
 17.27  technical college.  The retraining leave must be at the full 
 17.28  salary level that the person received immediately before the 
 17.29  termination notice, including fringe benefits.  The leave must 
 17.30  be completed no later than June 30, 1996.  Employees who seek to 
 17.31  return to teaching must satisfy the qualifications established 
 17.32  by applicable collective bargaining agreements.  Any subsequent 
 17.33  faculty appointments must be in accordance with collective 
 17.34  bargaining agreements and policies of the higher education 
 17.35  board.  The individual's pretermination notice employment ceases 
 17.36  at the conclusion of the retraining leave.  Individual employee 
 18.1   eligibility for severance payments must be made in accordance 
 18.2   with the policies of the employing unit in effect at the time 
 18.3   the incentive was elected.  Notice of election of this incentive 
 18.4   must be made before April 1, 1996, on forms prescribed by the 
 18.5   higher education board. 
 18.6      (e) An eligible employee may elect the following instead of 
 18.7   the incentive in paragraph (d): 
 18.8      (1) state-paid hospital, medical, and dental insurance to 
 18.9   age 65.  An employee who retires, is terminated, or is separated 
 18.10  is eligible for single or dependent insurance coverages, 
 18.11  whichever applies, and any employer payments to which the person 
 18.12  was entitled immediately before retirement, termination, or 
 18.13  separation subject to any changes in coverage and employer and 
 18.14  employee payments through collective bargaining or personnel 
 18.15  plans in positions equivalent to the position from which the 
 18.16  employee retired, terminated, or separated.  The employee is not 
 18.17  eligible for employer-paid life insurance.  If the employee is 
 18.18  not yet age 65 at the time of retirement or separation, the 
 18.19  employee is eligible for employer-paid insurance under the 
 18.20  provisions of a personnel plan and has at least as many months 
 18.21  service with the current employer and as the number of months 
 18.22  the individual is under age 65 at the time of retirement; and 
 18.23     (2) if the eligible employee has at least 15 years of 
 18.24  combined service credit in a Minnesota public pension plan, a 
 18.25  one-time opportunity to purchase up to two years of service 
 18.26  credit in or to make not more than two years of additional 
 18.27  member contributions to the public pension plan that the 
 18.28  employee is a member of at the time of retirement or separation 
 18.29  as follows: 
 18.30     (i) Eligible employees may have the additional payment made 
 18.31  on the basis of the employee's base salary in the year of 
 18.32  separation as denoted in the salary schedule in the applicable 
 18.33  employer personnel policy and at the rate and in the manner 
 18.34  specified in section 352.04, 353.27, 354.42, or 354A.12, 
 18.35  whichever applies.  The employee payment must include interest 
 18.36  at the rate of 8.5 percent.  The employer shall make the 
 19.1   required employer contribution and employer additional 
 19.2   contribution to the retirement fund as specified in section 
 19.3   352.04, 353.27, 354.42, or 354A.12, whichever applies for an 
 19.4   employee who elects this option.  Both the required employee and 
 19.5   employer payments must be made to the fund before the employee's 
 19.6   date of retirement or separation, whichever is earlier. 
 19.7      (ii) Defined contribution plan members in plans established 
 19.8   by chapter 352D or 354B must have additional employee and 
 19.9   employer contributions made on the basis of the employee's base 
 19.10  salary in the year of retirement as denoted in the salary 
 19.11  schedule in the applicable employer personnel policy and at the 
 19.12  rate and in the manner specified in section 352D.04, subdivision 
 19.13  2, or 354B.04, as applicable.  The additional contributions must 
 19.14  be made before the employee's date of retirement or separation, 
 19.15  whichever is earlier. 
 19.16     Sec. 34.  [136F.49] [EXCHANGE TEACHERS.] 
 19.17     Subdivision 1.  [ASSIGNMENT; PROFESSIONAL STAFF.] The board 
 19.18  or a campus may assign a member of its professional staff to 
 19.19  teach in another institution of education beyond the borders of 
 19.20  the state of Minnesota.  When so assigned, the staff member is 
 19.21  an exchange teacher.  
 19.22     Subd. 2.  [ASSIGNMENT; TEACHERS.] The board or a campus may 
 19.23  assign a teacher for service in another institution of education 
 19.24  beyond the borders of the state of Minnesota in exchange for 
 19.25  services of a teacher with qualifications acceptable to the 
 19.26  board.  
 19.27     Subd. 3.  [RIGHTS.] An exchange teacher shall retain all 
 19.28  rights under contract with the board as though teaching in a 
 19.29  Minnesota state college or university. 
 19.30     Sec. 35.  [136F.495] [LICENSURE.] 
 19.31     The board may adopt rules under chapter 14 for licensure of 
 19.32  teaching, support, and supervisory personnel in post-secondary 
 19.33  and adult vocational education.  When necessary for continuous 
 19.34  programs approved by the board and when the board determines 
 19.35  that appropriate licensure standards do not exist, the board may 
 19.36  adopt appropriate temporary standards without regard to chapter 
 20.1   14 and may issue temporary licenses to teaching and support 
 20.2   personnel.  A temporary license is valid for up to one year and 
 20.3   is not renewable, but a person holding a temporary license may, 
 20.4   upon its expiration, be issued a license in accordance with 
 20.5   standards adopted under chapter 14.  The board may establish a 
 20.6   processing fee for the issuance, renewal, or extension of a 
 20.7   license.  
 20.8                            ADMINISTRATION 
 20.9      Sec. 36.  Minnesota Statutes 1994, section 136E.05, is 
 20.10  amended to read: 
 20.11     136E.05 [LOCAL ADVISORY COMMITTEES.] 
 20.12     Subdivision 1.  [APPOINTMENT.] The president, with the 
 20.13  approval of the chancellor and the board, may appoint a local 
 20.14  advisory committee for each campus.  Committee members must be 
 20.15  qualified people who have knowledge of and interest in the 
 20.16  campus.  The board college or university shall define the role 
 20.17  and authority of the advisory committees and establish 
 20.18  procedures for the appointment, terms, and termination of 
 20.19  members.  The president or an appointee of the president shall 
 20.20  regularly meet and consult with the local advisory committee. 
 20.21     Subd. 2.  [COMPENSATION.] Advisory committee members shall 
 20.22  serve without compensation and without reimbursement for 
 20.23  expenses.  
 20.24     Sec. 37.  [136F.54] [PARKING AND TRAFFIC REGULATION.] 
 20.25     Subdivision 1.  [CAMPUS POWER.] Notwithstanding section 
 20.26  169.966, a state college or university may adopt and enforce 
 20.27  policies, regulations, or ordinances for the regulation of 
 20.28  traffic and parking in parking facilities and on private roads 
 20.29  and roadways situated on property owned, leased, occupied, or 
 20.30  operated by the state college or university. 
 20.31     Subd. 2.  [FINES; FEES.] A state college or university may 
 20.32  collect a fine and a towing fee for a violation.  Money 
 20.33  collected under this section by a state college or university is 
 20.34  annually appropriated to the state college or university for 
 20.35  parking lot maintenance, improvement, and policy enforcement. 
 20.36     Subd. 3.  [DISPUTES.] A state college or university shall 
 21.1   establish procedures to resolve a dispute arising from 
 21.2   enforcement of a policy. 
 21.3      Subd. 4.  [PROCEDURE.] Chapter 14 does not apply to this 
 21.4   section.  
 21.5      Subd. 5.  [ENFORCEMENT.] Every sheriff, constable, police 
 21.6   officer, or other peace officer shall have authority to enforce 
 21.7   all policies and ordinances adopted under this section and shall 
 21.8   have authority to arrest and prosecute offenders for violations 
 21.9   of law.  
 21.10     Sec. 38.  [136F.58] [STATE COUNCIL ON VOCATIONAL TECHNICAL 
 21.11  EDUCATION.] 
 21.12     Subdivision 1.  [STATE AGENCY PURPOSE.] The state council 
 21.13  on vocational technical education, formerly known as the 
 21.14  Minnesota state advisory council for vocational education, is a 
 21.15  state agency in the executive branch.  Its purpose is to 
 21.16  implement section 112 of the Carl D. Perkins Vocational 
 21.17  Education Act of 1984, United States Code, title 20, section 
 21.18  2322, and other purposes necessary to improve vocational 
 21.19  technical education.  
 21.20     Subd. 2.  [MEMBERS; TERMS.] The governor shall appoint the 
 21.21  members of the council according to United States Code, title 
 21.22  20, section 2322.  Except as otherwise provided by that act, 
 21.23  members are governed by section 15.0575.  
 21.24     Subd. 3.  [OFFICES.] The commissioner of administration 
 21.25  shall provide the council with suitable office space, 
 21.26  furnishings, and equipment.  
 21.27     Subd. 4.  [FUNDING.] Federal, state, or private money 
 21.28  received by the council must be deposited in the state treasury 
 21.29  and credited to a special account for the council.  The council 
 21.30  has sole authority to spend its money.  The money may not be 
 21.31  diverted or reprogrammed by any agency or person to any other 
 21.32  purpose.  Unless restricted by federal or other state law, the 
 21.33  council may carry forward any unexpended balance from one fiscal 
 21.34  year to the next and from one fiscal biennium to the next.  
 21.35     Subd. 5.  [SERVICE CONTRACTS.] The council may contract for 
 21.36  the services it needs to carry out its function.  The council 
 22.1   may also contract to provide services to other organizations. 
 22.2   The contracts are not subject to the contract approval 
 22.3   procedures of the commissioner of administration or chapter 16B. 
 22.4      Subd. 6.  [FISCAL AGENT.] The board shall act as fiscal 
 22.5   agent for the council and provide other support services 
 22.6   necessary for disbursements, accounting, auditing, and reporting.
 22.7      Subd. 7.  [STAFF.] The council may employ an executive 
 22.8   director and other staff needed to carry out its duties.  The 
 22.9   executive director shall serve in the unclassified service and 
 22.10  may be paid an allowance not to exceed $2,000 annually for 
 22.11  miscellaneous expenses in connection with duties of the office. 
 22.12  The council may contract with professional, technical, and 
 22.13  clerical consultants and interns needed to carry out its 
 22.14  functions. 
 22.15                             FACILITIES
 22.16     Sec. 39.  [136F.591] [BOOKSTORES.] 
 22.17     A state college or university may conduct a bookstore in a 
 22.18  state college or university building, or may allocate space in a 
 22.19  state college or university building and permit a person or 
 22.20  corporation to conduct a bookstore therein without rent at the 
 22.21  campus's pleasure.  The board may provide insurance, at no cost 
 22.22  to the state, for the inventory of a bookstore a state college 
 22.23  or university conducts in its building. 
 22.24     Sec. 40.  [136F.60] [COLLEGE AND UNIVERSITY SITES; 
 22.25  ACQUISITION.] 
 22.26     Subdivision 1.  [PURCHASE OF NEIGHBORING PROPERTY; STATE 
 22.27  UNIVERSITIES.] The board, in consultation with an affected 
 22.28  campus, may purchase property adjacent to or in the vicinity of 
 22.29  a state university as necessary for the development of that 
 22.30  campus.  Before taking action, the board and campus shall 
 22.31  consult with the chairs of the senate finance committee and the 
 22.32  house ways and means committee about the proposed action to 
 22.33  explain the need to acquire property, specify the property to be 
 22.34  acquired, and indicate the source and amount of money needed for 
 22.35  the acquisition.  The amount needed may be spent from sums 
 22.36  previously appropriated for purposes of the state colleges and 
 23.1   universities, including, but not limited to, general fund 
 23.2   appropriations for instructional or noninstructional 
 23.3   expenditures, general fund appropriations carried forward, or 
 23.4   state college and university activity fund appropriations.  The 
 23.5   board may pay relocation costs, at its discretion, when 
 23.6   acquiring property.  
 23.7      Subd. 2.  [METHODS OF ACQUISITION.] If money has been 
 23.8   appropriated to the board to acquire lands or sites for public 
 23.9   buildings or real estate, the acquisition may be by gift, 
 23.10  purchase, or condemnation proceedings.  Condemnation proceedings 
 23.11  must be under chapter 117. 
 23.12     Sec. 41.  Minnesota Statutes 1994, section 136E.692, 
 23.13  subdivision 1, is amended to read: 
 23.14     Subdivision 1.  [CONSTRUCTION; IMPROVEMENTS.] The higher 
 23.15  education board, in conjunction with the relevant campus, shall 
 23.16  supervise and control the preparation of plans and 
 23.17  specifications for the construction, alteration, or enlargement 
 23.18  of community college, state university, and technical college 
 23.19  buildings, structures, and improvements for which appropriations 
 23.20  are made to the board. The board shall advertise for bids and 
 23.21  award contracts in connection with the improvements, supervise 
 23.22  and inspect the work, approve necessary changes in the plans and 
 23.23  specifications, approve estimates for payment, and accept the 
 23.24  improvements when completed according to the plans and 
 23.25  specifications. 
 23.26     Sec. 42.  Minnesota Statutes 1994, section 136E.692, 
 23.27  subdivision 3, is amended to read: 
 23.28     Subd. 3.  [DISPUTE RESOLUTION.] In contracting for 
 23.29  projects, the higher education board must not restrict its 
 23.30  access to litigation or limit its methods of redress to 
 23.31  arbitration or other nonjudicial procedures. 
 23.32     Sec. 43.  Minnesota Statutes 1994, section 136E.692, 
 23.33  subdivision 4, is amended to read: 
 23.34     Subd. 4.  [REPAIRS.] The higher education board, in 
 23.35  conjunction with the relevant campus, shall supervise and 
 23.36  control the making of necessary repairs to all community 
 24.1   college, state university, and technical college buildings and 
 24.2   structures. 
 24.3      Sec. 44.  [136F.68] [CAPITAL PROJECTS BIDDING PROCEDURES.] 
 24.4      In awarding contracts for capital projects under section 
 24.5   16B.09, the board shall consider the documentation provided by 
 24.6   the bidders regarding their qualifications, including evidence 
 24.7   of having successfully completed similar work, or delivering 
 24.8   services or products comparable to that being requested.  The 
 24.9   board shall set procedures to administer this section, which 
 24.10  must include practices that will assist in the economic 
 24.11  development of small businesses, small targeted group 
 24.12  businesses, and businesses in economically disadvantaged areas 
 24.13  designated under section 16B.19. 
 24.14                              FINANCE
 24.15     Sec. 45.  [136F.70] [ALLOCATIONS.] 
 24.16     In conjunction with the presidents, the board shall develop 
 24.17  an allocation process for the distribution of state 
 24.18  instructional appropriations to the colleges and universities.  
 24.19  The process must be based on using the instructional costs of 
 24.20  each college and university to produce one base instructional 
 24.21  cost per fiscal year enrollment for the state universities, one 
 24.22  for the community colleges, and one for the technical colleges.  
 24.23  The allocation shall be determined using that particular base 
 24.24  instructional cost.  Additional allocations for fixed and 
 24.25  administrative costs may be added to each college and university 
 24.26  allocation to reflect differences such as economies of scale.  A 
 24.27  separate allocation process may be used for noninstructional 
 24.28  costs. 
 24.29     Sec. 46.  [136F.71] [TUITION; FEES; ACTIVITIES FUNDS.] 
 24.30     Subdivision 1.  [TUITION REVENUE.] Notwithstanding section 
 24.31  135A.04, each college and university shall set its own rates of 
 24.32  tuition and shall retain for use on that campus the revenue it 
 24.33  raises through tuition and through student fees unrelated to 
 24.34  revenue bond funds.  Tuition may vary by program, level of 
 24.35  instruction, cost of instruction, or other classifications 
 24.36  determined by each college or university.  A college or 
 25.1   university may waive tuition for certain persons, courses, and 
 25.2   programs.  Colleges and universities shall comply with board 
 25.3   requests for revenue projections and reports that are necessary 
 25.4   for the board's budgeting purposes. 
 25.5      Subd. 2.  [TUITION GUIDELINES.] The board may set general 
 25.6   guidelines for colleges and universities to use in establishing 
 25.7   rates of tuition for the various instructional programs. 
 25.8      Subd. 3.  [FEES.] The board may prescribe fees to be 
 25.9   charged students for student unions, state college and 
 25.10  university activities, functions, and purposes related to 
 25.11  revenue bond funds.  
 25.12     Subd. 4.  [REFUNDS.] A college or university may make 
 25.13  refunds to students for tuition, activity fees, union fees, and 
 25.14  any other fees from imprest cash funds.  The imprest cash fund 
 25.15  shall be reimbursed periodically by checks or warrants drawn on 
 25.16  the funds and accounts to which the refund should ultimately be 
 25.17  charged.  The amounts necessary to pay the refunds are 
 25.18  appropriated from the funds and accounts to which they are 
 25.19  charged.  
 25.20     Sec. 47.  [136F.72] [RECEIPTS.] 
 25.21     Subdivision 1.  [APPROPRIATION OF RECEIPTS.] All receipts 
 25.22  of every kind, nature, and description, including student fees 
 25.23  related to revenue bond funds, all federal receipts, aids, 
 25.24  contributions, and reimbursements, but not including receipts 
 25.25  attributable to state colleges and universities activity funds, 
 25.26  in all the state colleges and universities are appropriated to 
 25.27  the board, but are subject to budgetary control to be exercised 
 25.28  by the commissioner of finance.  The balance in these funds 
 25.29  shall not cancel on June 30, but shall be available in the next 
 25.30  fiscal year. 
 25.31     Subd. 2.  [ACTIVITY FUND RECEIPTS.] All receipts 
 25.32  attributable to the state colleges and universities activity 
 25.33  funds and deposited in the state treasury are appropriated to 
 25.34  the college or university from which they originated and are not 
 25.35  subject to budgetary control as exercised by the commissioner of 
 25.36  finance.  
 26.1      Sec. 48.  [136F.73] [FUNDS.] 
 26.2      Subdivision 1.  [ACTIVITY FUNDS.] Each state college and 
 26.3   university shall establish a fund to be known as the activity 
 26.4   fund.  The purpose of these funds shall be to provide for the 
 26.5   administration of state college and university student 
 26.6   activities designed for student recreational, social, welfare, 
 26.7   and educational pursuits supplemental to the regular curricular 
 26.8   offerings.  The activity funds shall encompass accounts for 
 26.9   student activities, student health services, authorized college 
 26.10  and university agencies, authorized auxiliary enterprises, 
 26.11  student loans, gifts and endowments, and in addition other 
 26.12  accounts under the control of the campus as approved by the 
 26.13  board. 
 26.14     Subd. 2.  [ADMINISTRATIVE FUND AND ACCOUNTS.] The board may 
 26.15  establish a fund within the board office for management of 
 26.16  employee retirement funds.  A campus may establish an 
 26.17  administrative fund, or the board may establish an 
 26.18  administrative fund within the board office, for the 
 26.19  administration of contracts, student equipment purchases, and 
 26.20  receipt and transfer of foreign program money.  
 26.21     Subd. 3.  [ADMINISTRATION.] In conjunction with the 
 26.22  campuses and, independent of other authority and notwithstanding 
 26.23  chapters 16A and 16B, the board shall administer the money 
 26.24  collected for the state colleges and universities administrative 
 26.25  funds.  All activity fund money collected shall be administered 
 26.26  under campus policies subject to audit of the board and the 
 26.27  legislative auditor.  
 26.28     Subd. 4.  [IMPREST CASH FUNDS.] The board may establish an 
 26.29  imprest cash fund in each of its state colleges and universities.
 26.30     Sec. 49.  [136F.74] [CASH OVER AND SHORT ACCOUNT OF IMPREST 
 26.31  CASH FUND.] 
 26.32     The board may establish a cash over and short account 
 26.33  within the imprest cash fund for each state college and 
 26.34  university.  This account shall be used to record on a daily 
 26.35  basis overages and shortages of cash receipts.  At the end of 
 26.36  each fiscal year, the board shall credit or debit the overage or 
 27.1   shortage from each state college or university to the board 
 27.2   maintenance and equipment appropriation account.  In the 
 27.3   instance of a debit balance remaining in any cash over and short 
 27.4   accounts, the board may transfer from the maintenance and 
 27.5   equipment appropriation account money sufficient to offset such 
 27.6   debit balance.  The commissioner of finance shall make the 
 27.7   appropriate adjustments and entries on the general books of 
 27.8   account of the state.  
 27.9      Sec. 50.  [136F.75] [CARRY-OVER AUTHORITY.] 
 27.10     The board may carry over any unexpended balance from its 
 27.11  appropriation from the first year of a biennium into the second 
 27.12  year of the biennium.  The board may carry over any unexpended 
 27.13  balance into the following biennium.  The amounts carried over 
 27.14  must not be taken into account in determining state 
 27.15  appropriations and must not be deducted from a later 
 27.16  appropriation.  A campus may carry over any unexpended balance 
 27.17  from its allocation from the first year of a biennium into the 
 27.18  second year, and from one biennium into the following. 
 27.19     Sec. 51.  [136F.76] [LITIGATION AWARDS.] 
 27.20     Notwithstanding any law to the contrary, the board may keep 
 27.21  money received from successful litigation by or against the 
 27.22  board.  Awards made to the state or the board resulting from 
 27.23  litigation against or by the board must be kept by the board to 
 27.24  the credit of the account from which the litigation was 
 27.25  originally funded.  An award that exceeds the costs incurred in 
 27.26  the litigation shall be used by the board for repair or 
 27.27  replacement projects.  The board shall report on any awards it 
 27.28  receives as part of its biennial budget request.  
 27.29     Sec. 52.  [136F.77] [TECHNICAL EQUIPMENT.] 
 27.30     Subdivision 1.  [PROPRIETARY PURCHASES.] Notwithstanding 
 27.31  the competitive bidding requirements of chapter 16B, technical 
 27.32  educational equipment may be purchased for or by state colleges 
 27.33  and universities on request of the board or a campus, either by 
 27.34  brand designation or in accordance with standards and 
 27.35  specifications prescribed by the board or the campus.  The 
 27.36  purchase is subject to supervision by the information policy 
 28.1   office under section 16B.41.  
 28.2      Subd. 2.  [COMPUTER SALES AND SUPPORT.] The board or the 
 28.3   campus may sell computers and related products to state college 
 28.4   and university staff and students to advance their instructional 
 28.5   and research abilities.  The board or the campus shall contract 
 28.6   with a private vendor for service, maintenance, and support for 
 28.7   computers and related products sold by the board. 
 28.8      Sec. 53.  [136F.78] [FINANCING FOR CHILD CARE FACILITIES.] 
 28.9      A state college or university may seek financing for child 
 28.10  care facilities through the higher education facilities 
 28.11  authority, as provided in section 136A.28, subdivision 3, only 
 28.12  with the explicit authorization of the board.  
 28.13     Sec. 54.  [136F.79] [SOLE STATE AGENCY.] 
 28.14     The board is the sole state agency to receive and disburse 
 28.15  federal funds authorized by the Vocational Education Act of 
 28.16  1963, as amended in the education amendments of 1976, Public Law 
 28.17  Number 94-482, and Code of Federal Regulations, title 34, part 
 28.18  400.  The board shall develop and submit the state plan for 
 28.19  vocational technical education.  The board shall develop the 
 28.20  state plan according to terms of agreement with the state board 
 28.21  of education.  
 28.22                          GRANTS AND GIFTS 
 28.23     Sec. 55.  [136F.80] [GRANTS; GIFTS; BEQUESTS; DEVISES; 
 28.24  ENDOWMENTS.] 
 28.25     Subdivision 1.  [RECEIPT AND ACCEPTANCE BY CAMPUS.] A 
 28.26  college or university may apply for, receive, and accept on 
 28.27  behalf of the state and for the benefit of the campus any grant, 
 28.28  gift, bequest, devise, or endowment that any person, firm, 
 28.29  corporation, foundation, association, or government agency may 
 28.30  make to the campus.  The campus may use any money given to it 
 28.31  consistent with the terms and conditions under which the money 
 28.32  was received and for the purposes stated.  All money received is 
 28.33  appropriated to the relevant campus and must not be considered 
 28.34  in allocations.  All taxes and special assessments constituting 
 28.35  a lien on any real property received and accepted by the campus 
 28.36  under this section shall be paid in full before title is 
 29.1   transferred to the state. 
 29.2      Subd. 2.  [RECEIPT AND ACCEPTANCE BY BOARD.] The board, in 
 29.3   consultation with the affected campus, may apply for, receive, 
 29.4   and accept on behalf of the state and for the benefit of any 
 29.5   state college or university any grant, gift, bequest, devise, or 
 29.6   endowment that any person, firm, corporation, foundation, 
 29.7   association, or government agency may make to the board for the 
 29.8   purposes of the state colleges and universities.  The board may 
 29.9   use any money given to it consistent with the terms and 
 29.10  conditions under which the money was received and for the 
 29.11  purposes stated.  All money received is appropriated to the 
 29.12  board for use in the colleges and universities.  This money 
 29.13  shall not be taken into account in determining appropriations or 
 29.14  allocations.  All taxes and special assessments constituting a 
 29.15  lien on any real property received and accepted by the board 
 29.16  under this section shall be paid in full before title is 
 29.17  transferred to the state.  
 29.18     Subd. 3.  [DEPOSIT OF MONEY.] The board shall provide by 
 29.19  policy, in accordance with provisions of chapter 118, for the 
 29.20  deposit of all money received under this section. 
 29.21                         GENERAL PROVISIONS 
 29.22     Sec. 56.  [TRANSFER OF RETIREMENT FUND MEMBERSHIP FOR 
 29.23  TECHNICAL COLLEGE EMPLOYEES; ELECTION TO RETAIN RETIREMENT FUND 
 29.24  MEMBERSHIP.] 
 29.25     A person who is employed by a technical college or by the 
 29.26  technical college system on June 30, 1995, and who is 
 29.27  transferred to state employment shall remain a member of the 
 29.28  public employees retirement association or the Minneapolis 
 29.29  employees retirement fund, whichever applies, unless the person 
 29.30  affirmatively elects, in writing, retirement coverage by the 
 29.31  general state employees retirement plan of the Minnesota state 
 29.32  retirement system.  The following provisions govern the election 
 29.33  of a transfer or the retention of retirement benefit coverage:  
 29.34     (1) For a person who desires to transfer benefit coverage, 
 29.35  the affirmative written election must be made within 120 days of 
 29.36  the transfer of the employee to state employment.  
 30.1      (2) On behalf of transferred employees who retain 
 30.2   retirement benefit coverage with the pretransfer retirement 
 30.3   plan, the board shall make the applicable employer contributions 
 30.4   to the public employees retirement association under Minnesota 
 30.5   Statutes, section 353.27, subdivisions 3 and 3a, or the same 
 30.6   percentage of covered payroll employer contribution to the 
 30.7   Minneapolis employees retirement fund that special school 
 30.8   district No. 1 is required to make for that school year under 
 30.9   Minnesota Statutes, section 422A.101, subdivision 2.  
 30.10     (3) An employee who makes a retirement benefit coverage 
 30.11  transfer election under this section may revoke that election at 
 30.12  any time within the first six months after the person becomes a 
 30.13  state employee.  Once an employee revokes the retirement benefit 
 30.14  coverage transfer election, the employee may not make another 
 30.15  election.  If the initial retirement benefit coverage transfer 
 30.16  election is revoked, all retirement contributions made by or on 
 30.17  behalf of the employee revoking a prior election must be 
 30.18  transferred to the applicable retirement plan as though they 
 30.19  were erroneous deductions or contributions, plus monthly 
 30.20  interest at an annual rate of 8.5 percent, compounded monthly, 
 30.21  and the balance remaining between any contribution amount 
 30.22  transferred and the amount of contributions that otherwise would 
 30.23  have been due are payable in the applicable proportions by the 
 30.24  revoking employee and the board, plus monthly interest at an 
 30.25  annual rate of 8.5 percent, compounded monthly.  
 30.26     (4) The executive directors of the Minnesota state 
 30.27  retirement system, the public employees retirement association, 
 30.28  and the Minneapolis employees retirement fund, and the 
 30.29  chancellor of the higher education system, shall confer and 
 30.30  jointly adopt appropriate procedures for making the retirement 
 30.31  benefit coverage transfer elections under this section.  
 30.32     (5) The executive directors of the public employees 
 30.33  retirement association, the Minnesota state retirement system, 
 30.34  and the Minneapolis employees retirement fund, whichever 
 30.35  applies, shall, upon request, provide appropriate benefit 
 30.36  counseling to applicable affected employees on the effect of 
 31.1   electing retirement benefit coverage by the general state 
 31.2   employees retirement plan of the Minnesota state retirement 
 31.3   system.  
 31.4      Sec. 57.  [NEW ALLOCATION FORMULA.] 
 31.5      Notwithstanding section 45, the new allocation process 
 31.6   shall be used for allocations beginning in fiscal year 1997.  
 31.7      Sec. 58.  [REVISOR INSTRUCTION.] 
 31.8      (a) In the next and subsequent editions of Minnesota 
 31.9   Statutes, the revisor shall renumber each section in column A 
 31.10  with the corresponding number in column B.  
 31.11            COLUMN A                    COLUMN B
 31.12            136.31                      136F.90
 31.13            136.31, subd. 7             136F.90, subd. 6
 31.14            136.32                      136F.91
 31.15            136.33                      136F.92
 31.16            136.34                      136F.93
 31.17            136.35                      136F.94
 31.18            136.36                      136F.95
 31.19            136.37                      136F.96
 31.20            136.38                      136F.97
 31.21            136.41, subd. 8             136F.98, subd. 1
 31.22            136.41, subd. 9             136F.98, subd. 2
 31.23            136.41, subd. 10            136F.98, subd. 3
 31.24            136E.01                     136F.02
 31.25            136E.02                     136F.03
 31.26            136E.021                    136F.04
 31.27            136E.03                     136F.05
 31.28            136E.04, subds. 1 and 3      136F.06
 31.29            136E.04, subd. 7            136F.20
 31.30            136E.04, subd. 8            136F.47
 31.31            136E.05                     136F.52
 31.32            136E.31                     136F.41
 31.33            136E.395                    136F.46
 31.34            136E.525                    136F.22
 31.35            136E.692                    136F.66
 31.36     (b) In the next and subsequent editions of Minnesota 
 32.1   Statutes, the revisor shall correct all cross-references to 
 32.2   sections renumbered, recodified, or repealed in sections 1 to 59.
 32.3      Sec. 59.  [REPEALER.] 
 32.4      Minnesota Statutes 1994, sections 15.38, subdivision 4; 
 32.5   136.01; 136.02; 136.03; 136.031; 136.036; 136.045; 136.065; 
 32.6   136.09; 136.10; 136.11; 136.111; 136.12; 136.13; 136.14; 
 32.7   136.141; 136.142; 136.143; 136.144; 136.145; 136.146; 136.147; 
 32.8   136.172; 136.18; 136.19; 136.20; 136.21; 136.22; 136.232; 
 32.9   136.24; 136.25; 136.261; 136.27; 136.31; 136.311; 136.32; 
 32.10  136.33; 136.34; 136.35; 136.36; 136.37; 136.38; 136.40; 136.41; 
 32.11  136.42; 136.43; 136.44; 136.45; 136.46; 136.47; 136.48; 136.49; 
 32.12  136.50; 136.501; 136.502; 136.503; 136.504; 136.505; 136.506; 
 32.13  136.507; 136.55; 136.56; 136.57; 136.58; 136.60; 136.602; 
 32.14  136.603; 136.61; 136.62; 136.621; 136.622; 136.63; 136.65; 
 32.15  136.651; 136.653; 136.67; 136.70; 136.71; 136.72; 136.88; 
 32.16  136.90; 136C.01; 136C.02; 136C.03; 136C.04; 136C.041; 136C.043; 
 32.17  136C.044; 136C.05; 136C.06; 136C.07; 136C.075; 136C.08; 136C.13; 
 32.18  136C.15; 136C.17; 136C.31; 136C.34; 136C.41; 136C.411; 136C.43; 
 32.19  136C.44; 136C.50; 136C.51; 136C.60; 136C.61; 136C.62; 136C.63; 
 32.20  136C.64; 136C.65; 136C.66; 136C.67; 136C.68; 136C.69; 136C.70; 
 32.21  136C.71; 136C.75; 136E.04, subdivisions 2, 4, 5, and 6; and Laws 
 32.22  1994, chapter 532, article 6, section 12, paragraph (a), are 
 32.23  repealed. 
 32.24     Sec. 60.  [EFFECTIVE DATE.] 
 32.25     Sections 1 to 59 are effective July 1, 1995.