1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; prescribing 
  1.8             changes in certain financial assistance programs; 
  1.9             establishing educational savings plan accounts; 
  1.10            clarifying duties of the higher education services 
  1.11            office; providing for appropriations for certain 
  1.12            enrollments; defining the mission for the Minnesota 
  1.13            state colleges and universities system; clarifying the 
  1.14            common numbering and credit transfer requirements; 
  1.15            making technical corrections relating to the 
  1.16            post-secondary merger; modifying the higher education 
  1.17            facilities authority revenue bond authority; modifying 
  1.18            certain capital improvement projects; placing a 
  1.19            condition on referendums by campus student 
  1.20            associations; establishing the Minnesota Virtual 
  1.21            University and a roundtable on vocational technical 
  1.22            education; amending Minnesota Statutes 1996, sections 
  1.23            16A.69, subdivision 2; 125.1385, subdivision 2; 
  1.24            126.56, subdivisions 2, 4a, and 7; 135A.031, 
  1.25            subdivision 2; 135A.052, subdivision 1; 135A.08, 
  1.26            subdivision 2; 136A.01, subdivision 2, and by adding a 
  1.27            subdivision; 136A.03; 136A.121, subdivisions 5, 7, and 
  1.28            9a; 136A.125, subdivisions 3 and 4; 136A.136, 
  1.29            subdivision 2; 136A.15, by adding a subdivision; 
  1.30            136A.16, subdivisions 1, 2, 8, and by adding 
  1.31            subdivisions; 136A.171; 136A.173, subdivisions 1, 3, 
  1.32            and 5; 136A.174; 136A.175, subdivisions 1 and 2; 
  1.33            136A.233, subdivisions 1 and 2; 136A.29, subdivision 
  1.34            9; 136F.05; 216C.27, subdivision 7; Laws 1994, chapter 
  1.35            643, sections 10, subdivision 10, as amended; and 19, 
  1.36            subdivision 9, as amended; proposing coding for new 
  1.37            law in Minnesota Statutes, chapter 136A; repealing 
  1.38            Laws 1995, chapter 212, article 4, section 34; and 
  1.39            Laws 1995, First Special Session chapter 2, article 1, 
  1.40            sections 35 and 36. 
  1.41  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.42                             ARTICLE 1
  1.43                           APPROPRIATIONS
  2.1   Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  2.2      The sums in the columns marked "APPROPRIATIONS" are 
  2.3   appropriated from the general fund, or other named fund, to the 
  2.4   agencies and for the purposes specified in this article.  The 
  2.5   listing of an amount under the figure "1998" or "1999" in this 
  2.6   article indicates that the amount is appropriated to be 
  2.7   available for the fiscal year ending June 30, 1998, or June 30, 
  2.8   1999, respectively.  "The first year" is fiscal year 1998.  "The 
  2.9   second year" is fiscal year 1999.  "The biennium" is fiscal 
  2.10  years 1998 and 1999. 
  2.11                          SUMMARY BY FUND
  2.12                            1998          1999           TOTAL
  2.13  General            $1,160,704,000  $1,199,283,000 $2,359,987,000
  2.14                   SUMMARY BY AGENCY - ALL FUNDS
  2.15                            1998          1999           TOTAL
  2.16  Higher Education Services Office
  2.17                        142,675,000    156,464,000    299,139,000
  2.18  Board of Trustees of the Minnesota
  2.19  State Colleges and Universities
  2.20                        494,375,000    506,870,000  1,001,245,000
  2.21  Board of Regents of the
  2.22  University of Minnesota
  2.23                        522,505,000    534,667,000  1,057,172,000
  2.24  Mayo Medical Foundation
  2.25                          1,149,000      1,282,000      2,431,000
  2.26                                             APPROPRIATIONS 
  2.27                                         Available for the Year 
  2.28                                             Ending June 30 
  2.29                                            1998         1999 
  2.30  Sec. 2.  HIGHER EDUCATION
  2.31  SERVICES OFFICE
  2.32  Subdivision 1.  Total
  2.33  Appropriation                        142,675,000    156,464,000
  2.34  The amounts that may be spent from this 
  2.35  appropriation for each purpose are 
  2.36  specified in the following subdivisions.
  2.37  Subd. 2.  State Grants
  2.38      109,547,000       124,546,000
  2.39  If the appropriation in this 
  2.40  subdivision for either year is 
  2.41  insufficient, the appropriation for the 
  2.42  other year is available for it.  
  3.1   The legislature intends that the higher 
  3.2   education services office make full 
  3.3   grant awards in each year of the 
  3.4   biennium.  
  3.5   For the biennium, the private 
  3.6   institution tuition maximum shall be 
  3.7   $7,860 the first year and $8,055 the 
  3.8   second year for four-year institutions 
  3.9   and $6,050 the first year and $6,200 
  3.10  the second year for two-year 
  3.11  institutions. 
  3.12  This appropriation contains money to 
  3.13  set the living and miscellaneous 
  3.14  expense allowance at $4,500 in the 
  3.15  first year and $4,880 in the second 
  3.16  year. 
  3.17  This appropriation contains money to 
  3.18  develop and implement the Minnesota 
  3.19  Savings for College Program. 
  3.20  This appropriation contains money to 
  3.21  make full state grant awards to 
  3.22  students during the fourth quarter of 
  3.23  attendance. 
  3.24  This appropriation contains $250,000 
  3.25  each year for grants to nursing 
  3.26  programs to recruit persons of color 
  3.27  and to provide grants to nursing 
  3.28  students who are persons of color.  Of 
  3.29  this amount, $100,000 each year is for 
  3.30  recruitment and retention of students 
  3.31  of color in nursing programs leading to 
  3.32  licensure as a registered nurse.  Other 
  3.33  than the grants to students, all grants 
  3.34  shall be matched with at least the same 
  3.35  amount from grantee sources or nonstate 
  3.36  money.  
  3.37  This appropriation contains money for 
  3.38  the National Service Scholars Program. 
  3.39  This appropriation contains money for 
  3.40  the Law School Loan Repayment 
  3.41  Assistance Program. 
  3.42  If the federal government enacts a 
  3.43  federal student loan risk sharing fee, 
  3.44  the higher education services office 
  3.45  shall recover the fee by billing the 
  3.46  institutions that have a cohort loan 
  3.47  default rate greater than the federal 
  3.48  law permits. 
  3.49  Subd. 3.  Interstate Tuition
  3.50  Reciprocity
  3.51       4,000,000      4,000,000
  3.52  If the appropriation in this 
  3.53  subdivision for either year is 
  3.54  insufficient, the appropriation for the 
  3.55  other year is available to meet 
  3.56  reciprocity contract obligations. 
  3.57  The higher education services office is 
  3.58  authorized to negotiate a reciprocity 
  3.59  agreement with the province of Ontario. 
  4.1   Subd. 4.  State Work Study
  4.2        8,944,000      8,944,000
  4.3   Subd. 5.  Minitex Library Program
  4.4        2,858,000      2,858,000
  4.5   This appropriation contains money for 
  4.6   online access to science and technology 
  4.7   periodicals. 
  4.8   Subd. 6.  Learning Network of Minnesota
  4.9        8,052,000      6,764,000
  4.10  Up to $1,500,000 of this amount is to 
  4.11  assist in establishing a gigabit 
  4.12  capacity point of presence at the 
  4.13  University of Minnesota-Twin Cities and 
  4.14  to support the university's 
  4.15  participation in the national internet 
  4.16  two initiative for research and 
  4.17  development of telecommunications 
  4.18  networks.  This appropriation is 
  4.19  available to the extent matched by the 
  4.20  University of Minnesota or private 
  4.21  sources. 
  4.22  Subd. 7.  Income Contingent Loans
  4.23  The higher education services office 
  4.24  shall administer an income contingent 
  4.25  loan repayment program to assist 
  4.26  graduates of Minnesota schools in 
  4.27  medicine, dentistry, pharmacy, 
  4.28  chiropractic medicine, public health, 
  4.29  and veterinary medicine, and Minnesota 
  4.30  residents graduating from optometry and 
  4.31  osteopathy programs.  Applicant data 
  4.32  collected by the higher education 
  4.33  services office for this program may be 
  4.34  disclosed to a consumer credit 
  4.35  reporting agency under the same 
  4.36  conditions as apply to the supplemental 
  4.37  loan program under Minnesota Statutes, 
  4.38  section 136A.162.  No new applicants 
  4.39  may be accepted after June 30, 1995. 
  4.40  Subd. 8.  Minnesota Library
  4.41  Information Network
  4.42       6,380,000        6,380,000     
  4.43  This appropriation is for 
  4.44  implementation of the Minnesota library 
  4.45  information network, which shall be 
  4.46  developed in cooperation with the 
  4.47  library planning task force, and shall 
  4.48  include the development of:  (1) an 
  4.49  integrated library system that will 
  4.50  serve the libraries of the University 
  4.51  of Minnesota; the Minnesota state 
  4.52  colleges and universities system; state 
  4.53  government; interested public, school, 
  4.54  and private college libraries; and 
  4.55  not-for-profit institutions that meet 
  4.56  the requirements; and (2) a common 
  4.57  services gateway creating links to the 
  4.58  integrated library system for 
  4.59  compatible school, public, and 
  5.1   not-for-profit library information 
  5.2   systems statewide.  Staff needed for 
  5.3   training and user support, technical 
  5.4   support, installation, and operation of 
  5.5   the network shall be obtained from the 
  5.6   Minnesota state colleges and 
  5.7   universities system, the University of 
  5.8   Minnesota, and other entities that have 
  5.9   experience and expertise in operating a 
  5.10  large library automation system.  This 
  5.11  appropriation is available until 
  5.12  expended or until the network is 
  5.13  completed, whichever occurs first. 
  5.14  Subd. 9.  Agency Administration
  5.15       2,894,000      2,972,000
  5.16  This appropriation contains money for 
  5.17  the Minnesota Minority Education 
  5.18  Partnership. 
  5.19  This appropriation contains money for 
  5.20  the violence and abuse prevention 
  5.21  program costs. 
  5.22  Money encumbered for youth works 
  5.23  postservice benefits shall not cancel 
  5.24  but is available until the participants 
  5.25  for whom the money was encumbered are 
  5.26  no longer eligible to draw benefits. 
  5.27  Subd. 10.  Balances Forward 
  5.28  The appropriations in this section do 
  5.29  not cancel but are available for the 
  5.30  following year.  The director shall 
  5.31  notify the chairs of the higher 
  5.32  education divisions of the house and 
  5.33  senate of the amounts carried forward. 
  5.34  Subd. 11.  Transfers 
  5.35  The higher education services office 
  5.36  may transfer unencumbered balances from 
  5.37  the appropriations in this section to 
  5.38  the state grant appropriation, the 
  5.39  interstate tuition reciprocity 
  5.40  appropriation, the child care 
  5.41  appropriation, and the state work study 
  5.42  appropriation. 
  5.43  Sec. 3.  BOARD OF TRUSTEES OF THE
  5.44  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  5.45  Subdivision 1.  Total
  5.46  Appropriation                       494,375,000    506,870,000
  5.47  The amounts that may be spent from this 
  5.48  appropriation for each purpose are 
  5.49  specified in the following subdivisions.
  5.50  Subd. 2.  Instructional Expenditures 
  5.51  The legislature estimates that the 
  5.52  instructional expenditures will be 
  5.53  $646,469,000 for the first year and 
  5.54  $659,681,000 for the second year. 
  5.55  During the biennium neither the board 
  5.56  nor campuses shall plan or develop 
  6.1   doctoral level programs or degrees 
  6.2   until after they have received the 
  6.3   recommendation of the house and senate 
  6.4   committees on education, finance, and 
  6.5   ways and means. 
  6.6   This appropriation contains money for 
  6.7   further development of the electronic 
  6.8   academy, including delivery of academic 
  6.9   programs delivered statewide via 
  6.10  electronic technology, development of 
  6.11  multimedia instructional technology 
  6.12  across the curriculum, development of 
  6.13  automated student services available 
  6.14  online and through the Internet, 
  6.15  provision of technological services for 
  6.16  staff and students, staff development, 
  6.17  and challenge grants for innovative 
  6.18  technology applications.  Up to 
  6.19  $300,000 each year is for central 
  6.20  office costs associated with the 
  6.21  implementation of the electronic 
  6.22  academy. 
  6.23  This appropriation contains $250,000 
  6.24  each year to increase acquisition of 
  6.25  books and periodicals for libraries at 
  6.26  all campuses.  The commissioner of 
  6.27  finance shall annually release $250,000 
  6.28  to the board of trustees if the annual 
  6.29  budgeted amount is at least $250,000 
  6.30  larger than the 1997 fiscal year budget 
  6.31  for books and periodicals. 
  6.32  This appropriation contains money to 
  6.33  develop and implement a common student 
  6.34  information system and central data 
  6.35  management system, and to upgrade the 
  6.36  management information systems 
  6.37  network.  The student information 
  6.38  system shall be compatible with the 
  6.39  Virtual University. 
  6.40  This appropriation contains money for 
  6.41  nonroutine repairs and betterment which 
  6.42  are required to extend the useful life 
  6.43  of state facilities and delay the need 
  6.44  for more costly future repairs. 
  6.45  This appropriation contains money for 
  6.46  development and implementation of the 
  6.47  Virtual University. 
  6.48  Each college and university shall 
  6.49  demonstrate to the board that, in the 
  6.50  face of budget constraints, it has 
  6.51  identified those programs and functions 
  6.52  that are central to the mission of that 
  6.53  campus and are most critical to meeting 
  6.54  student needs, and that the campus has 
  6.55  redirected resources to those 
  6.56  identified areas to protect the core 
  6.57  educational enterprise.  Further, each 
  6.58  campus shall demonstrate that it has 
  6.59  taken actions to improve the 
  6.60  productivity of faculty, 
  6.61  administrators, and staff. 
  6.62  Technical and consolidated colleges 
  6.63  shall make use of instructional 
  6.64  advisory committees which consist of 
  7.1   employers, students, and instructors.  
  7.2   The instructional advisory committee 
  7.3   shall be consulted when a technical 
  7.4   program is proposed to be created, 
  7.5   modified, or eliminated.  If a decision 
  7.6   is made to eliminate a program, a 
  7.7   college shall adequately notify 
  7.8   students and make plans to assist 
  7.9   students affected by the closure. 
  7.10  The board of trustees must establish 
  7.11  performance measures for determining 
  7.12  progress in achieving institutional 
  7.13  goals. 
  7.14  The board of trustees must annually 
  7.15  prepare an institutional performance 
  7.16  report describing progress in attaining 
  7.17  identified performance goals.  This 
  7.18  report must be submitted to the 
  7.19  legislature by January 15, 1999, and 
  7.20  each January thereafter.  The first 
  7.21  report must cover the period ending 
  7.22  June 30, 1998.  The report must include 
  7.23  not less than three years of historical 
  7.24  data, if practicable, for each 
  7.25  performance goal.  The report must be 
  7.26  available to the public by both written 
  7.27  and electronic means. 
  7.28  The commissioner of finance shall place 
  7.29  $10,000,000 of the appropriation in a 
  7.30  performance incentive account.  The 
  7.31  commissioner of finance shall release 
  7.32  this amount to the Minnesota state 
  7.33  colleges and universities when the 
  7.34  board of trustees certifies that it has 
  7.35  submitted the January 1999 report to 
  7.36  the legislature. 
  7.37  The board is requested to adopt a 
  7.38  resolution to develop a common 
  7.39  numbering convention as required under 
  7.40  Minnesota Statutes, section 135A.08, 
  7.41  subdivision 2. 
  7.42  The board is requested to submit a 
  7.43  progress report on the common numbering 
  7.44  convention to the legislature no later 
  7.45  than February 9, 1998. 
  7.46  The board is requested to submit a plan 
  7.47  to the legislature on how to integrate 
  7.48  technical college coursework into its 
  7.49  two- and four-year degree programs 
  7.50  while maintaining the academic 
  7.51  integrity of its programs.  The report 
  7.52  shall be submitted before February 9, 
  7.53  1998. 
  7.54  Subd. 3.  Noninstructional Expenditures 
  7.55  The legislature estimates that 
  7.56  noninstructional expenditures will be 
  7.57  $42,458,000 the first year and 
  7.58  $41,741,000 the second year. 
  7.59  This appropriation contains money to 
  7.60  reimburse campuses located in the snow 
  7.61  disaster area declared on January 16, 
  7.62  1997, for costs in excess of 150 
  8.1   percent of the fiscal year 1996 
  8.2   expenditures associated with the 
  8.3   various snowfalls. 
  8.4   This appropriation contains money to 
  8.5   pay the first year's assessments for 
  8.6   the road and entrance improvements at 
  8.7   Inver Hills Community College.  It is 
  8.8   anticipated that the remainder of the 
  8.9   costs will be paid from bond sources. 
  8.10  This appropriation contains money for 
  8.11  development and implementation of the 
  8.12  Minnesota career and education planning 
  8.13  system in partnership with the 
  8.14  University of Minnesota. 
  8.15  $204,000 the first year and $99,000 the 
  8.16  second year are for debt service 
  8.17  payments. 
  8.18  $150,000 each year is for southwest 
  8.19  Asia veterans tuition relief.  
  8.20  Subd. 4.  State Council on 
  8.21  Vocational Technical Education 
  8.22  The appropriation in subdivision 1 
  8.23  includes money in the first year for 
  8.24  the state council on vocational 
  8.25  education. 
  8.26  Sec. 4.  BOARD OF REGENTS OF THE 
  8.27  UNIVERSITY OF MINNESOTA 
  8.28  Subdivision 1.  Total
  8.29  Appropriation                        522,505,000    534,667,000
  8.30  The amounts that may be spent from this 
  8.31  appropriation for each purpose are 
  8.32  specified in the following subdivisions.
  8.33  Subd. 2.  Operations and
  8.34  Maintenance                          459,161,000    471,323,000
  8.35  (a) Instructional Expenditures 
  8.36  The legislature estimates that 
  8.37  instructional expenditures will be 
  8.38  $431,555,000 the first year and 
  8.39  $445,274,000 the second year. 
  8.40  This appropriation contains $250,000 
  8.41  each year to increase acquisition of 
  8.42  books and periodicals for libraries at 
  8.43  all campuses.  The commissioner of 
  8.44  finance shall annually release $250,000 
  8.45  to the board of regents if the annual 
  8.46  budgeted amount is at least $250,000 
  8.47  larger than the 1997 fiscal year budget 
  8.48  for books and periodicals. 
  8.49  This appropriation contains money for 
  8.50  development and implementation of the 
  8.51  Virtual University. 
  8.52  The board of regents is requested to 
  8.53  establish performance measures for 
  8.54  determining progress in achieving 
  8.55  institutional goals. 
  9.1   The board of regents is requested to 
  9.2   annually prepare an institutional 
  9.3   performance report describing progress 
  9.4   in attaining identified performance 
  9.5   goals.  This report is requested to be 
  9.6   submitted to the legislature by January 
  9.7   15, 1998, and each January thereafter.  
  9.8   The first report should cover the 
  9.9   period ending June 30, 1997.  The 
  9.10  report should include not less than 
  9.11  three years of historical data, if 
  9.12  practicable, for each performance 
  9.13  goal.  The report should be available 
  9.14  to the public by both written and 
  9.15  electronic means. 
  9.16  The commissioner of finance shall place 
  9.17  $10,000,000 of the appropriation in a 
  9.18  performance incentive account.  The 
  9.19  commissioner of finance shall release 
  9.20  $5,000,000 to the University of 
  9.21  Minnesota when the board of regents 
  9.22  certifies that it has submitted the 
  9.23  January 1998 report to the legislature 
  9.24  and $5,000,000 when the board of 
  9.25  regents certifies that it has submitted 
  9.26  the January 1999 report to the 
  9.27  legislature. 
  9.28  This appropriation contains money for 
  9.29  enhancement of recruitment and 
  9.30  collaboration efforts at the College of 
  9.31  Agriculture, Food, and Environmental 
  9.32  Sciences for agriculture and education 
  9.33  programs. 
  9.34  The board is requested to adopt a 
  9.35  resolution to develop a common 
  9.36  numbering convention as required under 
  9.37  Minnesota Statutes, section 135A.08, 
  9.38  subdivision 2. 
  9.39  The board is requested to submit a 
  9.40  progress report on the common numbering 
  9.41  convention to the legislature no later 
  9.42  than February 9, 1998. 
  9.43  The board is requested to submit a plan 
  9.44  to the legislature on how to integrate 
  9.45  technical college coursework into its 
  9.46  two- and four-year degree programs 
  9.47  while maintaining the academic 
  9.48  integrity of its programs.  The report 
  9.49  shall be submitted before February 9, 
  9.50  1998. 
  9.51  (b) Noninstructional Expenditures 
  9.52  The legislature estimates that 
  9.53  noninstructional expenditures will be 
  9.54  $159,433,000 each year.  
  9.55  This appropriation contains money for 
  9.56  development and implementation of the 
  9.57  Minnesota career and education planning 
  9.58  system in partnership with the 
  9.59  Minnesota state colleges and 
  9.60  universities system. 
  9.61  Subd. 3.  Special
  9.62  Appropriation                         63,344,000     63,344,000
 10.1   The amounts expended for each program 
 10.2   in the four categories of special 
 10.3   appropriations shall be separately 
 10.4   identified in the 1999 biennial budget 
 10.5   document. 
 10.6   (a) Agriculture and Extension Service 
 10.7       50,547,000     50,547,000
 10.8   This appropriation is for the 
 10.9   Agricultural Experiment Station, 
 10.10  Minnesota Extension Service, and for 
 10.11  initiatives designed to sustain 
 10.12  Minnesota's renewable natural 
 10.13  resource-based industries. 
 10.14  Any salary increases granted by the 
 10.15  university to personnel paid from the 
 10.16  Minnesota Extension appropriation must 
 10.17  not result in a reduction of the county 
 10.18  portion of the salary payments. 
 10.19  During the biennium, the university 
 10.20  shall maintain an advisory council 
 10.21  system for each experiment station.  
 10.22  The advisory councils must be broadly 
 10.23  representative of range of size and 
 10.24  income distribution of farms and 
 10.25  agribusinesses and must not 
 10.26  disproportionately represent those from 
 10.27  the upper half of the size and income 
 10.28  distributions. 
 10.29  (b) Health Sciences 
 10.30       4,067,000      4,067,000
 10.31  This appropriation is for indigent 
 10.32  patients (county papers), Rural 
 10.33  Physicians Associates Program, the 
 10.34  Veterinary Diagnostic Laboratory, 
 10.35  health sciences research, dental care, 
 10.36  and the Biomedical Engineering Center. 
 10.37  (c) Institute of Technology  
 10.38       1,552,000      1,552,000
 10.39  This appropriation is for the 
 10.40  Geological Survey and the Talented 
 10.41  Youth Mathematics Program. 
 10.42  (d) System Specials 
 10.43       7,179,000      7,179,000
 10.44  This appropriation is for General 
 10.45  Research, Student Loans Matching Money, 
 10.46  Industrial Relations Education, Natural 
 10.47  Resources Research Institute, Center 
 10.48  for Urban and Regional Affairs, Bell 
 10.49  Museum of Natural History, and the 
 10.50  Humphrey Exhibit. 
 10.51  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.52  Subdivision 1.  Total
 10.53  Appropriation                           1,149,000       1,282,000
 11.1   The amounts that may be spent from this 
 11.2   appropriation for each purpose are 
 11.3   specified in the following subdivisions.
 11.4   Subd. 2.  Medical School
 11.5          441,000        455,000
 11.6   The state of Minnesota shall pay a 
 11.7   capitation of $11,047 the first year 
 11.8   and $11,378 the second year for each 
 11.9   student who is a resident of 
 11.10  Minnesota.  The appropriation may be 
 11.11  transferred between years of the 
 11.12  biennium to accommodate enrollment 
 11.13  fluctuations. 
 11.14  The legislature intends that during the 
 11.15  biennium the Mayo foundation use the 
 11.16  capitation money to increase the number 
 11.17  of doctors practicing in rural areas in 
 11.18  need of doctors.  
 11.19  Subd. 3.  Family Practice and
 11.20  Graduate Residency Program
 11.21         408,000        467,000
 11.22  The state of Minnesota provides a 
 11.23  capitation of $15,107 the first year 
 11.24  and $15,560 the second year for each 
 11.25  student. 
 11.26  Subd. 4.  St. Cloud Hospital-Mayo 
 11.27  Family Practice Residency Program 
 11.28         300,000        360,000
 11.29  This appropriation is to the Mayo 
 11.30  foundation to support 10 resident 
 11.31  physicians the first year and 12 
 11.32  resident physicians the second year in 
 11.33  the St. Cloud Hospital-Mayo Family 
 11.34  Practice Residency Program.  The 
 11.35  program shall prepare doctors to 
 11.36  practice primary care medicine in the 
 11.37  rural areas of the state.  It is 
 11.38  intended that this program will improve 
 11.39  health care in rural communities, 
 11.40  provide affordable access to 
 11.41  appropriate medical care, and manage 
 11.42  the treatment of patients in a more 
 11.43  cost-effective manner. 
 11.44                             ARTICLE 2
 11.45       ASSISTING STUDENTS TO FINANCE POST-SECONDARY EDUCATION 
 11.46     Section 1.  Minnesota Statutes 1996, section 136A.121, 
 11.47  subdivision 5, is amended to read: 
 11.48     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 11.49  based on a sharing of responsibility for covering the recognized 
 11.50  cost of attendance by the applicant, the applicant's family, and 
 11.51  the government.  The amount of a financial stipend must not 
 11.52  exceed a grant applicant's recognized cost of attendance, as 
 12.1   defined in subdivision 6, after deducting the following:  
 12.2      (1) the assigned student responsibility of at least ~~50~~ 48 
 12.3   percent of the cost of attending the institution of the 
 12.4   applicant's choosing; 
 12.5      (2) the assigned family responsibility, as determined by 
 12.6   the federal need analysis, ~~which~~ except that an allowance of up 
 12.7   to $16,000 for post-secondary education savings shall be 
 12.8   subtracted from the net worth calculation in the federal need 
 12.9   analysis.  For (i) dependent students, the assigned family 
 12.10  responsibility is the parental contribution as calculated by the 
 12.11  federal need analysis, and for (ii) independent students, the 
 12.12  assigned family responsibility is the student contribution as 
 12.13  determined by the federal need analysis; and 
 12.14     (3) the amount of a federal Pell grant award for which the 
 12.15  grant applicant is eligible.  
 12.16     The minimum financial stipend is $300 per academic year.  
 12.17     Sec. 2.  Minnesota Statutes 1996, section 136A.121, 
 12.18  subdivision 9a, is amended to read: 
 12.19     Subd. 9a.  [FULL-YEAR GRANTS.] Students may receive state 
 12.20  grants for four consecutive quarters or three consecutive 
 12.21  semesters during the course of a single fiscal year.  In 
 12.22  calculating a state grant for the fourth quarter or third 
 12.23  semester, the office must use the same calculation as it would 
 12.24  for any other term~~, except that the calculation must subtract~~ 
 12.25  ~~any Pell grant for which a student would be eligible even if the~~ 
 12.26  ~~student has exhausted the Pell grant for that fiscal year~~. 
 12.27     Sec. 3.  [136A.1211] [STATE GRANTS.] 
 12.28     The full grant award shall be available for students 
 12.29  carrying 13 or more credits per quarter or semester, or the 
 12.30  equivalent.  The budget shall be prorated per credit for 
 12.31  students carrying less than 13 credits. 
 12.32     Sec. 4.  Minnesota Statutes 1996, section 136A.125, 
 12.33  subdivision 4, is amended to read: 
 12.34     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 12.35  child care grant must be based on: 
 12.36     (1) the income of the applicant and the applicant's spouse, 
 13.1   if any; 
 13.2      (2) the number in the applicant's family, as defined by the 
 13.3   office; and 
 13.4      (3) the number of eligible children in the applicant's 
 13.5   family.  
 13.6      The maximum award to the applicant shall be ~~$1,700~~ $2,000 
 13.7   for each eligible child per academic year.  The office shall 
 13.8   prepare a chart to show the amount of a grant that will be 
 13.9   awarded per child based on the factors in this subdivision.  The 
 13.10  chart shall include a range of income and family size. 
 13.11     Sec. 5.  [136A.149] [LAW SCHOOL LOAN REPAYMENT ASSISTANCE 
 13.12  PROGRAM.] 
 13.13     Subdivision 1.  [ESTABLISHMENT.] A law school loan 
 13.14  repayment assistance program is established under the 
 13.15  supervision of the higher education services office and the 
 13.16  administration of Loan Repayment Assistance Program of 
 13.17  Minnesota, Inc. to provide grants for reimbursement to attorneys 
 13.18  eligible under criteria for loan repayment assistance. 
 13.19     Subd. 2.  [RESPONSIBILITY OF LOAN REPAYMENT ASSISTANCE 
 13.20  PROGRAM OF MINNESOTA, INC.] Loan Repayment Assistance Program of 
 13.21  Minnesota, Inc. shall administer the reimbursement program.  To 
 13.22  be eligible to receive reimbursement, a person must be a 
 13.23  graduate of a Minnesota law school and have secured full-time 
 13.24  employment as an attorney in Minnesota at a qualifying public 
 13.25  interest organization.  Qualifying organizations include: 
 13.26     (1) Native American tribal governments, court systems, and 
 13.27  public interest organizations; 
 13.28     (2) nonprofit organizations as provided by sections 
 13.29  501(c)(3), 501(c)(4), and 501(c)(5) of the Internal Revenue Code 
 13.30  of 1986, as amended through December 31, 1996; 
 13.31     (3) public defense corporations and Indian child welfare 
 13.32  defense corporations under section 611.216; and 
 13.33     (4) state board of public defense employees under section 
 13.34  611.24. 
 13.35     The reimbursement may be used only for institutional law 
 13.36  school debt. 
 14.1      Subd. 3.  [RESPONSIBILITY OF HIGHER EDUCATION SERVICES 
 14.2   OFFICE.] The higher education services office shall distribute 
 14.3   money each year, contingent upon an appropriation, to Loan 
 14.4   Repayment Assistance Program of Minnesota, Inc. to be used to 
 14.5   award reimbursements under this section.  The office shall not 
 14.6   distribute the money unless Loan Repayment Assistance Program of 
 14.7   Minnesota, Inc. matches the amount with private contributions on 
 14.8   a basis of $2 of the appropriation to each $1 of private 
 14.9   contributions. 
 14.10     Sec. 6.  Minnesota Statutes 1996, section 136A.233, 
 14.11  subdivision 1, is amended to read: 
 14.12     Subdivision 1.  [~~ALLOCATION~~ ALLOCATIONS TO INSTITUTIONS.] 
 14.13  The higher education services office shall allocate work-study 
 14.14  money to eligible post-secondary institutions according to the 
 14.15  resident full-time equivalent enrollment of all eligible 
 14.16  post-secondary institutions that apply to participate in the 
 14.17  program, and the amount of the allocation that an institution 
 14.18  spent during the previous academic year.  Each institution 
 14.19  wishing to participate in the work-study program must submit, in 
 14.20  accordance with policies and procedures established by the 
 14.21  office, an estimate of the amount of funds needed by the 
 14.22  institution.  Any funds allocated to an institution that exceed 
 14.23  the actual need of the institution shall be reallocated by the 
 14.24  office to other institutions.  An institution may use up to 30 
 14.25  percent of its allocation for student internships with private 
 14.26  employers.  An institution may carry forward or backward the 
 14.27  same percentage of its initial allocation that is authorized 
 14.28  under federal work-study provisions.  
 14.29     Sec. 7.  Minnesota Statutes 1996, section 136A.233, 
 14.30  subdivision 2, is amended to read: 
 14.31     Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
 14.32  to 136A.233, the words defined in this subdivision have the 
 14.33  meanings ascribed to them. 
 14.34     (a) "Eligible student" means a Minnesota resident enrolled 
 14.35  or intending to enroll at least half time in a degree, diploma, 
 14.36  or certificate program in a Minnesota post-secondary institution.
 15.1      (b) "Minnesota resident" means a student who meets the 
 15.2   conditions in section 136A.101, subdivision 8. 
 15.3      (c) "Financial need" means the need for financial 
 15.4   assistance in order to attend a post-secondary institution as 
 15.5   determined by a post-secondary institution according to 
 15.6   guidelines established by the higher education services office. 
 15.7      (d) "Eligible employer" means any eligible post-secondary 
 15.8   institution and any nonprofit, nonsectarian agency or state 
 15.9   institution located in the state of Minnesota, including state 
 15.10  hospitals, ~~and also includes~~ a handicapped person or a person 
 15.11  over 65 who employs a student to provide personal services in or 
 15.12  about the residence of the handicapped person or the person over 
 15.13  65, and a private employer who provides student internships 
 15.14  designed to enhance student knowledge or skill in a way that 
 15.15  would help the student attain full-time employment. 
 15.16     (e) "Eligible post-secondary institution" means any 
 15.17  post-secondary institution eligible for participation in the 
 15.18  Minnesota state grant program as specified in section 136A.101, 
 15.19  subdivision 4. 
 15.20     (f) "Independent student" has the meaning given it in the 
 15.21  Higher Education Act of 1965, United States Code, title 20, 
 15.22  section 1070a-6, and applicable regulations. 
 15.23     (g) "Half-time" for undergraduates has the meaning given in 
 15.24  section 136A.101, subdivision 7b, and for graduate students is 
 15.25  defined by the institution. 
 15.26     Sec. 8.  [136A.90] [EDVEST PROGRAM ESTABLISHED.] 
 15.27     An EdVest savings program is established.  In establishing 
 15.28  this program, the legislature seeks to encourage individuals to 
 15.29  save for post-secondary education by: 
 15.30     (1) providing a qualified state tuition program under 
 15.31  federal tax law; 
 15.32     (2) providing matching grants for contributions to the 
 15.33  program by low- and middle-income families; and 
 15.34     (3) by encouraging individuals, foundations, and businesses 
 15.35  to provide additional grants to participating students. 
 15.36     Sec. 9.  [136A.91] [DEFINITIONS.] 
 16.1      Subdivision 1.  [GENERAL.] For purposes of sections 136A.90 
 16.2   to 136A.93, the following terms have the meanings given. 
 16.3      Subd. 2.  [ADJUSTED GROSS INCOME.] "Adjusted gross income" 
 16.4   means adjusted gross income as defined in section 62 of the 
 16.5   Internal Revenue Code. 
 16.6      Subd. 3.  [BENEFICIARY.] "Beneficiary" means the designated 
 16.7   beneficiary for the account, as defined in section 529(e)(1) of 
 16.8   the Internal Revenue Code. 
 16.9      Subd. 4.  [BOARD.] "Board" means the state board of 
 16.10  investment. 
 16.11     Subd. 5.  [DIRECTOR.] "Director" means the director of the 
 16.12  higher education services office. 
 16.13     Subd. 6.  [EXECUTIVE DIRECTOR.] "Executive director" means 
 16.14  the executive director of the state board of investment. 
 16.15     Subd. 7.  [INTERNAL REVENUE CODE.] "Internal Revenue Code" 
 16.16  means the Internal Revenue Code of 1986, as amended. 
 16.17     Subd. 8.  [OFFICE.] "Office" means the higher education 
 16.18  services office. 
 16.19     Subd. 9.  [PROGRAM.] "Program" or "EdVest" refers to the 
 16.20  program established under section 136A.90. 
 16.21     Sec. 10.  [136A.92] [HIGHER EDUCATION SERVICES OFFICE.] 
 16.22     Subdivision 1.  [ESTABLISH TERMS.] (a) The director shall 
 16.23  establish the rules, terms, and conditions for the program, 
 16.24  subject to the requirements of sections 136A.90 to 136A.93. 
 16.25     (b) The director shall prescribe the application forms, 
 16.26  procedures, and other requirements that apply to the program. 
 16.27     Subd. 2.  [ACCOUNTS-TYPE PROGRAM.] The office must 
 16.28  establish the program and the program must be operated as an 
 16.29  accounts-type program that permits individuals to save for 
 16.30  qualified higher education costs incurred at any institution, 
 16.31  regardless of whether it is private or public or whether it is 
 16.32  located within or outside of this state.  A separate account 
 16.33  must be maintained for each beneficiary for whom contributions 
 16.34  are made. 
 16.35     Subd. 3.  [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In 
 16.36  designing and establishing the program's requirements and in 
 17.1   negotiating or entering contracts with third parties under 
 17.2   subdivision 8, the director shall consult with the executive 
 17.3   director. 
 17.4      Subd. 4.  [PROGRAM TO COMPLY WITH FEDERAL LAW.] The 
 17.5   director shall take steps to ensure that the program meets the 
 17.6   requirements for a qualified state tuition program under section 
 17.7   529 of the Internal Revenue Code.  The director may request a 
 17.8   private letter ruling or rulings from the Internal Revenue 
 17.9   Service or take any other steps to ensure that the program 
 17.10  qualifies under section 529 of the Internal Revenue Code or 
 17.11  other relevant provisions of federal law. 
 17.12     Subd. 5.  [MINIMUM PENALTY.] In establishing the terms of 
 17.13  the program, the office must provide that refunds of amounts in 
 17.14  an account are subject to a minimum penalty, as required by 
 17.15  section 529(b)(3) of the Internal Revenue Code.  If the refunds 
 17.16  or payments are not used for qualified higher education expenses 
 17.17  of the designated beneficiary, this penalty must equal, at 
 17.18  least, the proportionate amount of any matching grants deposited 
 17.19  in the account under section 136A.94 and the investment return 
 17.20  on the grants, plus an additional penalty that meets the 
 17.21  requirement of federal law. 
 17.22     Subd 6.  [THREE-YEAR PERIOD FOR WITHDRAWAL OF GRANTS.] A 
 17.23  matching grant deposited in the account under section 136A.94 
 17.24  may not be withdrawn within three years of the establishment of 
 17.25  the account of the beneficiary.  In calculating the three-year 
 17.26  period, the period held in another account is included, if the 
 17.27  account includes a rollover from another account under section 
 17.28  529(c)(3)(C) of the Internal Revenue Code. 
 17.29     Subd. 7.  [MARKETING.] The director shall make parents and 
 17.30  other interested individuals aware of the availability and 
 17.31  advantages of the program as a way to save for higher education 
 17.32  costs.  The cost of these promotional efforts must be paid 
 17.33  entirely from state general fund appropriations and may not be 
 17.34  funded with fees imposed on participants. 
 17.35     Subd. 8.  [ADMINISTRATION.] The director shall administer 
 17.36  the program, including accepting and processing applications, 
 18.1   maintaining account records, making payments, and undertaking 
 18.2   any other necessary tasks to administer the program.  The office 
 18.3   may contract with one or more third parties to carry out some or 
 18.4   all of these administrative duties, including promotion and 
 18.5   marketing of the program.  The office and the board may jointly 
 18.6   contract with third-party providers, if the office and board 
 18.7   determine that it is desirable to contract with the same entity 
 18.8   or entities for administration and investment management. 
 18.9      Subd. 9.  [AUTHORITY TO IMPOSE FEES.] The office may impose 
 18.10  fees on participants in the program to recover the costs of 
 18.11  administration.  The office must use its best efforts to keep 
 18.12  these fees as low as possible, consistent with efficient 
 18.13  administration, so that the returns on savings invested in the 
 18.14  program will be as high as possible. 
 18.15     Subd. 10.  [RULEMAKING.] (a) The office may adopt 
 18.16  administrative rules under chapter 14 to carry out the 
 18.17  provisions of sections 136A.90 to 136A.93. 
 18.18     (b) The office may adopt emergency rules under chapter 14.  
 18.19  Any emergency rules adopted under this authority expire on July 
 18.20  1, 1998. 
 18.21     Sec. 11.  [136A.93] [INVESTMENT OF ACCOUNTS.] 
 18.22     Subdivision 1.  [STATE BOARD TO INVEST.] The state board of 
 18.23  investment shall invest the money deposited in accounts in the 
 18.24  program. 
 18.25     Subd. 2.  [PERMITTED INVESTMENTS.] The board may invest the 
 18.26  accounts in any permitted investment under section 11A.24.  The 
 18.27  legislature intends that each account be invested in a mix of 
 18.28  investments that is appropriate to the number of years remaining 
 18.29  before the funds will be withdrawn, if this is feasible given 
 18.30  the costs and any other relevant factors. 
 18.31     Subd. 3.  [CONTRACTING AUTHORITY.] The board may contract 
 18.32  with one or more third parties for investment management, 
 18.33  recordkeeping, or other services in connection with investing 
 18.34  the accounts.  The board and office may jointly contract with 
 18.35  third-party providers, if the office and board determine that it 
 18.36  is desirable to contract with the same entity or entities for 
 19.1   administration and investment management. 
 19.2      Subd. 4.  [FEES.] The board may impose fees on participants 
 19.3   in the program to recover the cost of investment management and 
 19.4   related tasks for the program.  The board must use its best 
 19.5   efforts to keep these fees as low as possible, consistent with 
 19.6   high quality investment management, so that the returns on 
 19.7   savings invested in the program will be as high as possible. 
 19.8      Sec. 12.  [136A.94] [MATCHING GRANTS.] 
 19.9      Subdivision 1.  [MATCHING GRANT QUALIFICATION.] A state 
 19.10  matching grant must be added to each account established under 
 19.11  the program by March 1 of each year, if the following conditions 
 19.12  are met: 
 19.13     (1) the contributor applies, in writing in a form 
 19.14  prescribed by the director, for a matching grant; 
 19.15     (2) a minimum contribution of $200 was made during the 
 19.16  preceding calendar year; and/or 
 19.17     (3) the family income of the beneficiary did not exceed 
 19.18  $80,000. 
 19.19     Subd. 2.  [FAMILY INCOME.] For purposes of this section, 
 19.20  "family income" means: 
 19.21     (1) if the beneficiary is under age 25, the combined 
 19.22  adjusted gross income of the beneficiary's parents as reported 
 19.23  on the federal tax return or returns for the most recently 
 19.24  available tax year; or 
 19.25     (2) if the beneficiary is age 25 or older, the combined 
 19.26  adjusted gross income of the beneficiary and spouse, if any. 
 19.27     Subd. 3.  [AMOUNT OF MATCHING GRANT.] The amount of the 
 19.28  matching grant for a beneficiary equals: 
 19.29     (1) if the beneficiary's family income is $50,000 or less, 
 19.30  15 percent of the sum of the contributions made to the 
 19.31  beneficiary's account during the calendar year, not to exceed 
 19.32  $300; and 
 19.33     (2) if the beneficiary's family income is more than $50,000 
 19.34  but not more than $80,000, five percent of the sum of the 
 19.35  contributions made to the beneficiary's account during the 
 19.36  calendar year, not to exceed $300. 
 20.1      Subd. 4.  [BUDGET LIMIT.] If the total amount of matching 
 20.2   grants determined under subdivision 3 exceeds the amount of the 
 20.3   appropriation for the fiscal year, the director shall 
 20.4   proportionately reduce each grant so that the total equals the 
 20.5   available appropriation. 
 20.6      Subd. 5.  [COORDINATION WITH DEPARTMENT OF REVENUE.] In 
 20.7   administering matching grants, the director may require that 
 20.8   applicants submit sufficient information to determine whether 
 20.9   the beneficiary qualifies for a grant, including the Social 
 20.10  Security numbers, family income information, and any other 
 20.11  information the director determines necessary.  The applicant or 
 20.12  applicants may authorize the director to request information 
 20.13  from the commissioner of revenue to verify eligibility for a 
 20.14  grant from tax information on file with the commissioner or 
 20.15  obtained from the Internal Revenue Service.  If this method is 
 20.16  used and the taxpayer has authorized a release of the 
 20.17  information to the director, the commissioner of revenue may 
 20.18  verify that the beneficiary is eligible for a grant at a 
 20.19  specified rate and maximum and disclose that information to the 
 20.20  director, notwithstanding the provisions of chapter 270B. 
 20.21     Subd. 6.  [PRIVATE CONTRIBUTIONS.] (a) The office may 
 20.22  solicit and accept contributions from private corporations, 
 20.23  other businesses, foundations, or individuals to provide: 
 20.24     (1) matching grants under this section in addition to those 
 20.25  funded with direct appropriations; or 
 20.26     (2) grants to students who withdraw money from accounts 
 20.27  established under the program. 
 20.28     (b) Amounts contributed may only be used for those 
 20.29  purposes.  Amounts contributed are appropriated to the director 
 20.30  to make grants. 
 20.31     (c) Contributors may designate a specific field of study, 
 20.32  geographic area, or other criteria that govern use of the grants 
 20.33  funded with their contributions, but may not discriminate on the 
 20.34  basis of race, ethnicity, or gender.  The office may refuse 
 20.35  contributions that are subject, in the judgment of the director, 
 20.36  to unacceptable conditions on their use. 
 21.1      Sec. 13.  [APPROPRIATION.] 
 21.2      $3,600,000 is appropriated from the general fund for the 
 21.3   1998-1999 biennium for purposes of sections 8 to 12. 
 21.4      Sec. 14.  [STUDENT FEES.] 
 21.5      By December 1, 1998, the higher education services office 
 21.6   shall provide information to the public post-secondary boards 
 21.7   advising them how to maximize financial aid when establishing 
 21.8   student fees. 
 21.9      Sec. 15.  [NATIONAL SERVICE SCHOLARS PROGRAM.] 
 21.10     A national service scholars program is established under 
 21.11  the administration of the higher education services office to 
 21.12  match scholarship grants made under the National Service 
 21.13  Scholars program of the Corporation for National Service to 
 21.14  students attending Minnesota high schools and who will attend a 
 21.15  Minnesota post-secondary institution.  Not more than one 
 21.16  matching grant of $500 may be made for each high school per 
 21.17  year.  The state money shall be available until June 30, 1999, 
 21.18  if federal money is available. 
 21.19     Sec. 16.  [EFFECTIVE DATE.] 
 21.20     Sections 5 to 12 are effective for taxable years beginning 
 21.21  after December 31, 1996. 
 21.22                             ARTICLE 3 
 21.23                          OTHER PROVISIONS 
 21.24     Section 1.  Minnesota Statutes 1996, section 16A.69, 
 21.25  subdivision 2, is amended to read: 
 21.26     Subd. 2.  [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of 
 21.27  final contracts for the completion of a project for construction 
 21.28  or other permanent improvement, or upon the abandonment of the 
 21.29  project, the agency to whom the appropriation was made may 
 21.30  transfer the unencumbered balance in the project account to 
 21.31  another project enumerated in the same section of that 
 21.32  appropriation act.  The transfer must be made only to cover bids 
 21.33  for the other project that were higher than was estimated when 
 21.34  the appropriation for the other project was made and not to 
 21.35  cover an expansion of the other project.  The money transferred 
 21.36  under this section is appropriated for the purposes for which 
 22.1   transferred.  For transfers for technical colleges by the ~~state~~ 
 22.2   board ~~of technical~~ of trustees of the Minnesota state colleges 
 22.3   and universities, the total cost of both projects and the 
 22.4   required local share for both projects are adjusted 
 22.5   accordingly.  The agency proposing a transfer shall report to 
 22.6   the chair of the senate finance committee and the chair of the 
 22.7   house of representatives ways and means committee before the 
 22.8   transfer is made under this subdivision. 
 22.9      Sec. 2.  Minnesota Statutes 1996, section 125.1385, 
 22.10  subdivision 2, is amended to read: 
 22.11     Subd. 2.  [COMPENSATION.] State money for faculty exchange 
 22.12  programs is to compensate for expenses that are unavoidable and 
 22.13  beyond the normal living expenses exchange participants would 
 22.14  incur if they were not involved in this exchange.  The ~~state~~ 
 22.15  ~~university~~ board of trustees of the Minnesota state colleges and 
 22.16  universities, the board of regents~~, or~~ of the University of 
 22.17  Minnesota, and their respective campuses, in conjunction with 
 22.18  the participating school districts, must control costs for all 
 22.19  participants as much as possible, through means such as 
 22.20  arranging housing exchanges, providing campus housing, and 
 22.21  providing university, state, or school district cars for 
 22.22  transportation.  The boards and campuses may seek other sources 
 22.23  of funding to supplement these appropriations, if necessary. 
 22.24     Sec. 3.  Minnesota Statutes 1996, section 126.56, 
 22.25  subdivision 2, is amended to read: 
 22.26     Subd. 2.  [ELIGIBLE STUDENT.] To be eligible for a 
 22.27  scholarship, a student shall: 
 22.28     (1) be a United States citizen or permanent resident of the 
 22.29  United States; 
 22.30     (2) be a resident of Minnesota; 
 22.31     (3) attend an eligible program; 
 22.32     (4) have completed at least one year of secondary school 
 22.33  but not have graduated from high school; 
 22.34     (5) have earned at least a B average or its equivalent 
 22.35  during the semester or quarter prior to application, or have 
 22.36  earned at least a B average or its equivalent during the 
 23.1   semester or quarter prior to application in the academic subject 
 23.2   area applicable to the summer program the student wishes to 
 23.3   attend; ~~and~~ 
 23.4      (6) demonstrate need for financial assistance; and 
 23.5      (7) be 19 years of age or younger. 
 23.6      Sec. 4.  Minnesota Statutes 1996, section 126.56, 
 23.7   subdivision 4a, is amended to read: 
 23.8      Subd. 4a.  [ELIGIBLE PROGRAMS.] A scholarship may be used 
 23.9   only for an eligible program.  To be eligible, a program must: 
 23.10     (1) provide, as its primary purpose, academic instruction 
 23.11  for student enrichment in curricular areas including, but not 
 23.12  limited to, communications, humanities, social studies, social 
 23.13  science, science, mathematics, art, or foreign languages; 
 23.14     (2) not be offered for credit to post-secondary students; 
 23.15     (3) not provide remedial instruction; 
 23.16     (4) meet any other program requirements established by the 
 23.17  ~~state board of education and the~~ higher education services 
 23.18  office; and 
 23.19     (5) be approved by the ~~commissioner~~ director of the higher 
 23.20  education services office.  
 23.21     Sec. 5.  Minnesota Statutes 1996, section 126.56, 
 23.22  subdivision 7, is amended to read: 
 23.23     Subd. 7.  [ADMINISTRATION.] The higher education services 
 23.24  office ~~and commissioner~~ shall determine the time and manner for 
 23.25  scholarship applications, awards, and program approval. 
 23.26     Sec. 6.  Minnesota Statutes 1996, section 135A.031, 
 23.27  subdivision 2, is amended to read: 
 23.28     Subd. 2.  [APPROPRIATIONS FOR CERTAIN ENROLLMENTS.] The 
 23.29  state share of the estimated expenditures for instruction shall 
 23.30  vary for some categories of students, as designated in this 
 23.31  subdivision. 
 23.32     (a) The state must provide at least 67 percent of the 
 23.33  estimated expenditures for: 
 23.34     (1) students who resided in the state for at least one 
 23.35  calendar year prior to applying for admission or dependent 
 23.36  students whose parent or legal guardian resides in Minnesota at 
 24.1   the time the student applies; 
 24.2      (2) Minnesota residents who can demonstrate that they were 
 24.3   temporarily absent from the state without establishing residency 
 24.4   elsewhere; 
 24.5      (3) veterans of the armed services discharged within one 
 24.6   year of date of attendance who evidence intent to establish 
 24.7   residency in Minnesota; 
 24.8      (4) residents of other states or provinces who are 
 24.9   attending a Minnesota institution under a tuition reciprocity 
 24.10  agreement; and 
 24.11     ~~(4)~~ (5) students who have been in Minnesota as migrant 
 24.12  farmworkers, as defined in the Code of Federal Regulations, 
 24.13  title 20, section 633.104, over a period of at least two years 
 24.14  immediately before admission or readmission to a Minnesota 
 24.15  public post-secondary institution, or students who are 
 24.16  dependents of such migrant farmworkers. 
 24.17     (b) The definition of full year equivalent for purposes of 
 24.18  the formula calculations in this chapter is twice the normal 
 24.19  value for the following enrollments: 
 24.20     (1) students who are concurrently enrolled in a public 
 24.21  secondary school and for whom the institution is receiving any 
 24.22  compensation under the post-secondary enrollment options act; 
 24.23  and 
 24.24     (2) students enrolled under the student exchange program of 
 24.25  the Midwest Compact. 
 24.26     (c) The state may not provide any of the estimated 
 24.27  expenditures for undergraduate students (1) who do not meet the 
 24.28  residency criteria under paragraph (a), or (2) who have 
 24.29  completed, without receiving a baccalaureate degree, 48 or more 
 24.30  quarter credits or the equivalent, applicable toward the degree, 
 24.31  beyond the number required for a baccalaureate in their major. 
 24.32  Credits for courses in which a student received a grade of "F" 
 24.33  or "W" shall be counted toward this maximum, as if the credits 
 24.34  had been earned. 
 24.35     Sec. 7.  Minnesota Statutes 1996, section 135A.052, 
 24.36  subdivision 1, is amended to read: 
 25.1      Subdivision 1.  [STATEMENT OF MISSIONS.] The legislature 
 25.2   recognizes each public post-secondary system ~~to have~~ has a 
 25.3   distinctive mission within the overall provision of public 
 25.4   higher education in the state and a responsibility to cooperate 
 25.5   with the other ~~systems~~ system.  These missions are as follows: 
 25.6      ~~(1) the technical college system shall offer vocational~~ 
 25.7   ~~training and education to prepare students for skilled~~ 
 25.8   ~~occupations that do not require a baccalaureate degree;~~ 
 25.9      ~~(2) the community college system shall offer lower division~~ 
 25.10  ~~instruction in academic programs, occupational programs in which~~ 
 25.11  ~~all credits earned will be accepted for transfer to a~~ 
 25.12  ~~baccalaureate degree in the same field of study, and remedial~~ 
 25.13  ~~studies, for students transferring to baccalaureate institutions~~ 
 25.14  ~~and for those seeking associate degrees;~~ 
 25.15     ~~(3) the state university system shall offer undergraduate~~ 
 25.16  ~~and graduate instruction through the master's degree, including~~ 
 25.17  ~~specialist certificates, in the liberal arts and sciences and~~ 
 25.18  ~~professional education; and~~ 
 25.19     (a) The Minnesota state colleges and universities shall 
 25.20  provide accessible high quality, future-oriented education and 
 25.21  community service through technical, prebaccalaureate, 
 25.22  baccalaureate, master's, occupational, and continuing education 
 25.23  programs.  The programs include: 
 25.24     (1) technical and occupational education programs which 
 25.25  prepare students for skilled occupations that do not require a 
 25.26  baccalaureate degree, and in which credits earned may be 
 25.27  accepted for transfer to a baccalaureate degree; 
 25.28     (2) prebaccalaureate programs which offer lower division 
 25.29  instruction in academic programs, occupational programs in which 
 25.30  credits earned will be accepted for transfer to a baccalaureate 
 25.31  degree, and remedial studies; and 
 25.32     (3) baccalaureate and graduate programs which offer 
 25.33  undergraduate and graduate instruction through the master's 
 25.34  degree, including specialist certificates, in the liberal arts 
 25.35  and sciences and professional education. 
 25.36     ~~(4)~~ (b) The University of Minnesota shall offer 
 26.1   undergraduate, graduate, and professional instruction through 
 26.2   the doctoral degree, and shall be the primary state supported 
 26.3   academic agency for research and extension services. 
 26.4      (c) It is part of the mission of each system that within 
 26.5   the system's resources the system's governing board and 
 26.6   chancellor or president shall endeavor to: 
 26.7      ~~(a)~~ (1) prevent the waste or unnecessary spending of public 
 26.8   money; 
 26.9      ~~(b)~~ (2) use innovative fiscal and human resource practices 
 26.10  to manage the state's resources and operate the system as 
 26.11  efficiently as possible; 
 26.12     ~~(c)~~ (3) coordinate the system's activities wherever 
 26.13  appropriate with the activities of other systems and 
 26.14  governmental agencies; 
 26.15     ~~(d)~~ (4) use technology where appropriate to increase system 
 26.16  productivity, improve customer service, increase public access 
 26.17  to information about the system, and increase public 
 26.18  participation in the business of the system; 
 26.19     ~~(e)~~ (5) utilize constructive and cooperative 
 26.20  labor-management practices to the extent otherwise required by 
 26.21  chapters 43A and 179A; and 
 26.22     ~~(f)~~ (6) recommend to the legislature appropriate changes in 
 26.23  law necessary to carry out the mission of the system. 
 26.24     Sec. 8.  Minnesota Statutes 1996, section 135A.08, 
 26.25  subdivision 2, is amended to read: 
 26.26     Subd. 2.  [COMMON NUMBERING; CREDIT TRANSFER.] To 
 26.27  facilitate credit transfer between systems, the regents of the 
 26.28  University of Minnesota and the trustees of the Minnesota state 
 26.29  colleges and universities shall, as soon as practicable, develop 
 26.30  and maintain a common numbering convention ~~to~~ for courses which 
 26.31  are substantially equivalent in subject matter.  The common 
 26.32  numbering convention shall also distinguish remedial, lower 
 26.33  division, upper division, and graduate level coursework.  The 
 26.34  governing boards of private institutions that grant associate 
 26.35  and baccalaureate degrees are requested to cooperate in the 
 26.36  development of this numbering convention. 
 27.1      Sec. 9.  Minnesota Statutes 1996, section 136A.01, 
 27.2   subdivision 2, is amended to read: 
 27.3      Subd. 2.  [RESPONSIBILITIES.] The higher education services 
 27.4   office is responsible for: 
 27.5      (1) necessary state level administration of financial aid 
 27.6   programs, including accounting, auditing, and disbursing state 
 27.7   and federal financial aid funds, and reporting on financial aid 
 27.8   programs to the governor and the legislature; 
 27.9      (2) approval, registration, licensing, and financial aid 
 27.10  eligibility of private collegiate and career schools, under 
 27.11  sections 136A.61 to 136A.71 and chapter 141; 
 27.12     (3) administering the telecommunications council under Laws 
 27.13  1993, First Special Session chapter 2, article 5, section 2, the 
 27.14  Learning Network of Minnesota, and the statewide library task 
 27.15  force; 
 27.16     (4) negotiating and administering reciprocity agreements; 
 27.17     (5) publishing and distributing financial aid information 
 27.18  and materials, and other information and materials under section 
 27.19  136A.87, to students and parents; 
 27.20     (6) collecting and maintaining student enrollment and 
 27.21  financial aid data; 
 27.22     (7) administering the federal programs that affect students 
 27.23  and institutions on a statewide basis; ~~and~~ 
 27.24     (8) issuing revenue bonds, debt, notes, revenue refunding 
 27.25  bonds, and other obligations under sections 136A.01 to 136A.1791 
 27.26  to provide funds to make loans to students attending 
 27.27  post-secondary institutions; and 
 27.28     (9) prescribing policies, procedures, and rules under 
 27.29  chapter 14 necessary to administer the programs under its 
 27.30  supervision. 
 27.31     Sec. 10.  Minnesota Statutes 1996, section 136A.01, is 
 27.32  amended by adding a subdivision to read: 
 27.33     Subd. 3.  [SUCCESSOR STATUS.] The office is the legal 
 27.34  successor in all respects of the Minnesota higher education 
 27.35  coordinating board established by Laws 1965, chapter 809, 
 27.36  article 32, and all bonds, resolutions, contracts, and 
 28.1   liabilities of the Minnesota higher education coordinating board 
 28.2   are the bonds, resolutions, contracts, and liabilities of the 
 28.3   office. 
 28.4      Sec. 11.  Minnesota Statutes 1996, section 136A.03, is 
 28.5   amended to read: 
 28.6      136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 
 28.7      The director of the higher education services office shall 
 28.8   possess the powers and perform the duties as prescribed by the 
 28.9   higher education services council and shall serve in the 
 28.10  unclassified service of the state civil service.  The director, 
 28.11  or the director's designated representative, on behalf of the 
 28.12  office is authorized to sign contracts and execute all 
 28.13  instruments necessary or appropriate to carry out the purposes 
 28.14  of sections 136A.01 to 136A.1791 for the office.  The salary of 
 28.15  the director shall be established by the higher education 
 28.16  services council according to section 15A.081, subdivision 1.  
 28.17  The director shall be a person qualified by training or 
 28.18  experience in the field of higher education or in financial aid 
 28.19  administration.  The director may appoint other professional 
 28.20  employees who shall serve in the unclassified service of the 
 28.21  state civil service.  All other employees shall be in the 
 28.22  classified civil service.  
 28.23     An officer or professional employee in the unclassified 
 28.24  service as provided in this section is a person who has studied 
 28.25  higher education or a related field at the graduate level or has 
 28.26  similar experience and who is qualified for a career in 
 28.27  financial aid and other aspects of higher education and for 
 28.28  activities in keeping with the planning and administrative 
 28.29  responsibilities of the office and who is appointed to assume 
 28.30  responsibility for administration of educational programs or 
 28.31  research in matters of higher education. 
 28.32     Sec. 12.  Minnesota Statutes 1996, section 136A.121, 
 28.33  subdivision 7, is amended to read: 
 28.34     Subd. 7.  [INSUFFICIENT APPROPRIATION.] If the amount 
 28.35  appropriated is determined by the office to be insufficient to 
 28.36  make full awards to applicants under subdivision 5, before any 
 29.1   award for that year has been disbursed, awards must be reduced 
 29.2   by: 
 29.3      (1) adding a surcharge to the ~~contribution of the~~ 
 29.4   ~~applicant's parents,~~ assigned family responsibility in 
 29.5   subdivision 5, clause (2); and then 
 29.6      (2) adding a percentage increase in the ~~applicant's~~ 
 29.7   ~~contribution~~ assigned student responsibility in subdivision 5, 
 29.8   clause (1).  
 29.9      Sec. 13.  Minnesota Statutes 1996, section 136A.125, 
 29.10  subdivision 3, is amended to read: 
 29.11     Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
 29.12  post-secondary institution, a Minnesota private, baccalaureate 
 29.13  degree granting college or university, or a Minnesota 
 29.14  nonprofit or private, for-profit two-year vocational technical 
 29.15  school granting associate degrees is eligible to receive child 
 29.16  care funds from the office and disburse them to eligible 
 29.17  students. 
 29.18     Sec. 14.  Minnesota Statutes 1996, section 136A.136, 
 29.19  subdivision 2, is amended to read: 
 29.20     Subd. 2.  [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 
 29.21  FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 
 29.22  foundation's project LINC shall administer the grant program and 
 29.23  award grants to eligible health care facility employees.  To be 
 29.24  eligible to receive a grant, a person must be: 
 29.25     (1) an employee of a health care facility located in 
 29.26  Minnesota, whom the facility has recommended to the metropolitan 
 29.27  healthcare foundation's project LINC for consideration; 
 29.28     (2) working ~~part time, up to 32~~ less hours than their 
 29.29  regular schedule per pay period, for the health care 
 29.30  facility organization, while maintaining full salary and their 
 29.31  original benefits and a salary greater than the number of hours 
 29.32  worked; 
 29.33     (3) enrolled full time in a Minnesota school or college of 
 29.34  nursing to complete a baccalaureate or master's degree in 
 29.35  nursing; and 
 29.36     (4) a resident of the state of Minnesota. 
 30.1      The grant must be awarded for one academic year but is 
 30.2   renewable for a maximum of six semesters or nine quarters of 
 30.3   full-time study, or their equivalent.  The grant must be used 
 30.4   for tuition, fees, and books.  Priority in awarding grants shall 
 30.5   be given to persons with the greatest financial need.  The 
 30.6   health care facility may require its employee to commit to a 
 30.7   reasonable postprogram completion of employment at the health 
 30.8   care facility as a condition for the financial support the 
 30.9   facility provides. 
 30.10     Sec. 15.  Minnesota Statutes 1996, section 136A.15, is 
 30.11  amended by adding a subdivision to read: 
 30.12     Subd. 2a.  "Council" means the higher education services 
 30.13  council under section 136A.011. 
 30.14     Sec. 16.  Minnesota Statutes 1996, section 136A.16, 
 30.15  subdivision 1, is amended to read: 
 30.16     Subdivision 1.  Notwithstanding chapter 16B, the Minnesota 
 30.17  higher education services office is designated as the 
 30.18  administrative agency for carrying out the purposes and terms of 
 30.19  sections ~~136A.15~~ 136A.01 to ~~136A.1702~~ 136A.1791.  The office may 
 30.20  establish one or more loan programs. 
 30.21     Sec. 17.  Minnesota Statutes 1996, section 136A.16, 
 30.22  subdivision 2, is amended to read: 
 30.23     Subd. 2.  The office shall adopt policies and prescribe 
 30.24  appropriate rules to carry out the purposes of sections ~~136A.15~~ 
 30.25  136A.01 to ~~136A.1702~~ 136A.1791.  The policies and rules except 
 30.26  as they relate to loans under section 136A.1701 must be 
 30.27  compatible with the provisions of the National Vocational 
 30.28  Student Loan Insurance Act of 1965 and the provisions of title 
 30.29  IV of the Higher Education Act of 1965, and any amendments 
 30.30  thereof. 
 30.31     Sec. 18.  Minnesota Statutes 1996, section 136A.16, 
 30.32  subdivision 8, is amended to read: 
 30.33     Subd. 8.  Money made available to the office that is not 
 30.34  immediately needed for the purposes of sections ~~136A.15~~ 136A.01 
 30.35  to ~~136A.1702~~ 136A.1791 may be invested by the office.  The money 
 30.36  must be invested in bonds, certificates of indebtedness, and 
 31.1   other fixed income securities, except preferred stocks, which 
 31.2   are legal investments for the permanent school fund.  The money 
 31.3   may also be invested in prime quality commercial paper that is 
 31.4   eligible for investment in the state employees retirement fund.  
 31.5   All interest and profits from such investments inure to the 
 31.6   benefit of the office or may be pledged for security of bonds 
 31.7   issued by the office or its predecessor, the Minnesota higher 
 31.8   education coordinating board. 
 31.9      Sec. 19.  Minnesota Statutes 1996, section 136A.16, is 
 31.10  amended by adding a subdivision to read: 
 31.11     Subd. 13.  The office may sue and be sued. 
 31.12     Sec. 20.  Minnesota Statutes 1996, section 136A.16, is 
 31.13  amended by adding a subdivision to read: 
 31.14     Subd. 14.  The office may sell at public or private sale, 
 31.15  at the price or prices determined by the office, any note or 
 31.16  other instrument or obligation evidencing or securing a loan 
 31.17  made by the office or its predecessor, the Minnesota higher 
 31.18  education coordinating board. 
 31.19     Sec. 21.  Minnesota Statutes 1996, section 136A.16, is 
 31.20  amended by adding a subdivision to read: 
 31.21     Subd. 15.  The office may obtain municipal bond insurance, 
 31.22  letters of credit, surety obligations, or similar agreements 
 31.23  from financial institutions. 
 31.24     Sec. 22.  Minnesota Statutes 1996, section 136A.171, is 
 31.25  amended to read: 
 31.26     136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.] 
 31.27     The higher education services office may issue revenue 
 31.28  bonds to obtain funds for loans made in accordance with the 
 31.29  provisions of this chapter.  The aggregate amount of revenue 
 31.30  bonds, issued directly by the office, outstanding at any one 
 31.31  time, not including refunded bonds or otherwise defeased or 
 31.32  discharged bonds, shall not exceed $550,000,000.  Proceeds from 
 31.33  the issuance of bonds may be held and invested by the office 
 31.34  pending disbursement in the form of loans.  All interest and 
 31.35  profits from the investments shall inure to the benefit of the 
 31.36  office and shall be available to the ~~board~~ office for the same 
 32.1   purposes as the proceeds from the sale of revenue bonds 
 32.2   including, but not limited to, costs incurred in administering 
 32.3   loans under this chapter and loan reserve funds. 
 32.4      Sec. 23.  Minnesota Statutes 1996, section 136A.173, 
 32.5   subdivision 1, is amended to read: 
 32.6      Subdivision 1.  The office may from time to time issue 
 32.7   revenue bonds for purposes of sections 136A.15 to ~~136A.179~~ 
 32.8   136A.1791 and all such revenue bonds, notes, bond anticipation 
 32.9   notes, or other obligations of the office issued pursuant to 
 32.10  sections 136A.15 to ~~136A.179~~ 136A.1791 shall be and are hereby 
 32.11  declared to be negotiable for all purposes notwithstanding their 
 32.12  payment from a limited source and without regard to any other 
 32.13  law or laws.  In anticipation of the sale of such revenue bonds, 
 32.14  the office may issue negotiable bond anticipation notes and may 
 32.15  renew the same from time to time, but the maximum maturity of 
 32.16  any such note, including renewals thereof, shall not exceed five 
 32.17  years from the date of issue of the original note.  Such notes 
 32.18  shall be paid from any revenues of the office available therefor 
 32.19  and not otherwise pledged, or from the proceeds of sale of the 
 32.20  revenue bonds of the office in anticipation of which they were 
 32.21  issued.  The notes shall be issued in the same manner as the 
 32.22  revenue bonds.  Such notes and the resolution or resolutions 
 32.23  authorizing the same may contain any provisions, conditions, or 
 32.24  limitations which a bond resolution ~~or~~ of the ~~office~~ council may 
 32.25  contain. 
 32.26     Sec. 24.  Minnesota Statutes 1996, section 136A.173, 
 32.27  subdivision 3, is amended to read: 
 32.28     Subd. 3.  The revenue bonds may be issued as serial bonds 
 32.29  or as term bonds, or the office, in its discretion, may issue 
 32.30  bonds of both types.  The revenue bonds shall be authorized by 
 32.31  resolution of the ~~members of the office~~ council and shall bear 
 32.32  such date or dates, mature at such time or times, not exceeding 
 32.33  50 years from their respective dates, bear interest at such rate 
 32.34  or rates, payable at such time or times, be in denominations, be 
 32.35  in such form, either coupon or registered, carry such 
 32.36  registration privileges, be executed in such manner, be payable 
 33.1   in lawful money of the United States of America at such place or 
 33.2   places, and be subject to such terms of redemption, as such 
 33.3   resolution or resolutions may provide.  The revenue bonds or 
 33.4   notes may be sold at public or private sale for such price or 
 33.5   prices as the ~~office~~ council shall determine.  Pending 
 33.6   preparation of the definitive bonds, the office may issue 
 33.7   interim receipts or certificates which shall be exchanged for 
 33.8   such definite bonds. 
 33.9      Sec. 25.  Minnesota Statutes 1996, section 136A.173, 
 33.10  subdivision 5, is amended to read: 
 33.11     Subd. 5.  Neither the members of the council, the office, 
 33.12  nor any person executing the revenue bonds or notes shall be 
 33.13  liable personally on the revenue bonds or notes or be subject to 
 33.14  any personal liability or accountability by reason of the 
 33.15  issuance thereof. 
 33.16     Sec. 26.  Minnesota Statutes 1996, section 136A.174, is 
 33.17  amended to read: 
 33.18     136A.174 [SECURITY FOR BONDS.] 
 33.19     In the discretion of the office any revenue bonds issued 
 33.20  under the provisions of sections 136A.15 to ~~136A.179~~ 136A.1791 
 33.21  may be secured by a trust agreement by and between the office 
 33.22  and a corporate trustee or trustees, which may be any trust 
 33.23  company or bank having the powers of a trust company within the 
 33.24  state.  Such trust agreement or the resolution providing for the 
 33.25  issuance of such revenue bonds may pledge or assign the revenues 
 33.26  to be received or proceeds of any contract or contracts pledged 
 33.27  or any portion thereof.  Such trust agreement or resolution 
 33.28  providing for the issuance of such revenue bonds may contain 
 33.29  such provisions for protecting and enforcing the rights and 
 33.30  remedies of the bondholders as may be reasonable and proper and 
 33.31  not in violation of laws, including particularly such provisions 
 33.32  as have hereinabove been specifically authorized to be included 
 33.33  in any resolution or resolutions of the ~~office~~ council 
 33.34  authorizing revenue bonds thereof.  Any bank or trust company 
 33.35  incorporated under the laws of the state which may act as 
 33.36  depository of the proceeds of bonds or of revenues or other 
 34.1   moneys may furnish such indemnifying bonds or pledges such 
 34.2   securities as may be required by the office.  Any such trust 
 34.3   agreement may set forth the rights and remedies of the 
 34.4   bondholders and of the trustee or trustees and may restrict the 
 34.5   individual right of action by bondholders.  In addition to the 
 34.6   foregoing, any such trust agreement or resolution may contain 
 34.7   such other provisions as the office may deem reasonable and 
 34.8   proper for the security of the bondholders. 
 34.9      Sec. 27.  Minnesota Statutes 1996, section 136A.175, 
 34.10  subdivision 1, is amended to read: 
 34.11     Subdivision 1.  The office is hereby authorized to provide 
 34.12  for the issuance of revenue bonds of the office for the purpose 
 34.13  of refunding any revenue bonds of the office or its predecessor, 
 34.14  the Minnesota higher education coordinating board, then 
 34.15  outstanding, including the payment of any redemption premium 
 34.16  thereon and any interest accrued or to accrue to the earliest or 
 34.17  any subsequent date of redemption, purchase or maturity of such 
 34.18  revenue bonds. 
 34.19     Sec. 28.  Minnesota Statutes 1996, section 136A.175, 
 34.20  subdivision 2, is amended to read: 
 34.21     Subd. 2.  The proceeds of any such revenue bonds issued for 
 34.22  the purpose of refunding outstanding revenue bonds may, in the 
 34.23  discretion of the office, be applied to the purchase or 
 34.24  retirement at maturity or redemption of such outstanding revenue 
 34.25  bonds of the office or its predecessor, the Minnesota higher 
 34.26  education coordinating board, either on their earliest or any 
 34.27  subsequent redemption date or upon the purchase or at the 
 34.28  maturity thereof and may, pending such application be placed in 
 34.29  escrow to such purchase or retirement at maturity or redemption 
 34.30  on such date as may be determined by the office. 
 34.31     Sec. 29.  [136A.1791] [PUBLIC PURPOSE; TAX FREE STATUS.] 
 34.32     The exercise of the powers granted under sections 136A.15 
 34.33  to 136A.1791 will be in all respects for the benefit of the 
 34.34  people of this state, for the increase of their commerce, 
 34.35  welfare, and prosperity, and for the improvement of their health 
 34.36  and living conditions, and as providing loans by the office or 
 35.1   its agent will constitute the performance of an essential public 
 35.2   function. 
 35.3      Sec. 30.  Minnesota Statutes 1996, section 136A.29, 
 35.4   subdivision 9, is amended to read: 
 35.5      Subd. 9.  The authority is authorized and empowered to 
 35.6   issue revenue bonds whose aggregate principal amount at any time 
 35.7   shall not exceed ~~$350,000,000~~ $500,000,000 and to issue notes, 
 35.8   bond anticipation notes, and revenue refunding bonds of the 
 35.9   authority under the provisions of sections 136A.25 to 136A.42, 
 35.10  to provide funds for acquiring, constructing, reconstructing, 
 35.11  enlarging, remodeling, renovating, improving, furnishing, or 
 35.12  equipping one or more projects or parts thereof. 
 35.13     Sec. 31.  Minnesota Statutes 1996, section 136F.05, is 
 35.14  amended to read: 
 35.15     136F.05 [MISSIONS.] 
 35.16     The mission of the board is to provide programs of study 
 35.17  that meet the needs of students for occupational, general, 
 35.18  baccalaureate, and graduate education.  The state colleges and 
 35.19  universities~~, community colleges, and technical colleges~~ shall 
 35.20  have ~~distinct missions as~~ the mission provided in section 
 35.21  135A.052, subdivision 1.  Within that statutory definition and 
 35.22  subject to the approval of the board, each community college, 
 35.23  consolidated college, state university, and technical college 
 35.24  may develop its own distinct campus mission.  The board shall 
 35.25  develop administrative arrangements that make possible the 
 35.26  efficient use of the facilities and staff of the technical 
 35.27  colleges, community colleges, consolidated colleges, and state 
 35.28  universities for providing these several different programs of 
 35.29  study, so that students may have the benefit of improved and 
 35.30  broader course offerings, ease of transfer among schools and 
 35.31  programs, integrated course credit, coordinated degree programs, 
 35.32  and coordinated financial aid.  In carrying out the merger of 
 35.33  the three separate systems, the board shall control 
 35.34  administrative costs by eliminating duplicative administrative 
 35.35  positions and course offerings. 
 35.36     Sec. 32.  Minnesota Statutes 1996, section 216C.27, 
 36.1   subdivision 7, is amended to read: 
 36.2      Subd. 7.  [BUILDING EVALUATORS.] The commissioner shall 
 36.3   certify evaluators in each county of the state who are qualified 
 36.4   to determine the compliance of a residence with applicable 
 36.5   energy efficiency standards.  The commissioner shall, by rule 
 36.6   pursuant to chapter 14, adopt standards for the certification 
 36.7   and performance of evaluators and set a fee for the 
 36.8   certification of evaluators which is sufficient to cover the 
 36.9   ongoing costs of the program once it is established.  The 
 36.10  commissioner shall encourage the certification of existing 
 36.11  groups of trained municipal personnel and qualified individuals 
 36.12  from community-based organizations and public service 
 36.13  organizations.  Each certified evaluator shall, on request of 
 36.14  the owner, inspect any residence and report the degree to which 
 36.15  it complies with applicable energy efficiency standards 
 36.16  established pursuant to subdivision 1.  The inspections shall be 
 36.17  made within 30 days of the request.  The commissioner shall 
 36.18  enter into an agreement with the ~~department of children,~~ 
 36.19  ~~families, and learning~~ board of trustees of the Minnesota state 
 36.20  colleges and universities for the provision of evaluator 
 36.21  training ~~through~~ at institutions that offer the technical 
 36.22  ~~colleges~~ training.  The commissioner may contract with 
 36.23  the ~~technical colleges~~ board to reduce the training costs to the 
 36.24  students.  The commissioner may eliminate the examination fee 
 36.25  for persons seeking upgraded certificates.  The commissioner may 
 36.26  also establish requirements for continuing education, periodic 
 36.27  recertification, and revocation of certification for evaluators. 
 36.28     Sec. 33.  Laws 1994, chapter 643, section 10, subdivision 
 36.29  10, as amended by Laws 1995, First Special Session chapter 2, 
 36.30  article 1, section 42, is amended to read: 
 36.31  Subd. 10.  ~~Rochester Technical College~~ University
 36.32  Center Rochester                                       1,200,000
 36.33  This appropriation is ~~to~~ for predesign 
 36.34  and design of an integrated campus ~~in~~ 
 36.35  ~~accordance with this subdivision.~~  
 36.36  ~~$600,000 of this appropriation is~~ 
 36.37  ~~available immediately.  The remainder~~ 
 36.38  ~~is available after a master academic~~ 
 36.39  ~~plan has been approved under clause (3)~~ 
 36.40  ~~and the technical college has been~~ 
 37.1   ~~sold.~~, remodeling of student support 
 37.2   facilities, remodeling of facilities 
 37.3   for joint academic programming, and 
 37.4   construction of roads and other 
 37.5   infrastructure to integrate the campus 
 37.6   for the delivery of consolidated 
 37.7   college, state university, and 
 37.8   University of Minnesota programs at the 
 37.9   University Center Rochester.  Planning 
 37.10  may include consideration of 
 37.11  codevelopment of facilities with local 
 37.12  units of government. 
 37.13  ~~(1) The board of trustees of the~~ 
 37.14  ~~Minnesota state colleges and~~ 
 37.15  ~~universities may enter into an~~ 
 37.16  ~~agreement for the sale of the Rochester~~ 
 37.17  ~~Technical College.  The sale is~~ 
 37.18  ~~contingent on the approval of the board~~ 
 37.19  ~~of trustees and a determination by the~~ 
 37.20  ~~board of trustees that the sale is~~ 
 37.21  ~~consistent with its priorities.  The~~ 
 37.22  ~~sale price shall equal the appraised~~ 
 37.23  ~~value if sold to independent school~~ 
 37.24  ~~district No. 535, Rochester, or, if~~ 
 37.25  ~~sold to any other party, the sale price~~ 
 37.26  ~~shall not be less than the appraised~~ 
 37.27  ~~value.~~ 
 37.28  ~~It is the intent of the legislature~~ 
 37.29  ~~that no technical college program~~ 
 37.30  ~~reduction, apart from normal program~~ 
 37.31  ~~review, shall occur as a result of this~~ 
 37.32  ~~sale.~~ 
 37.33  ~~(2) The sale shall not cause the~~ 
 37.34  ~~technical college to lease space or to~~ 
 37.35  ~~move to any temporary site.~~ 
 37.36  ~~(3) Prior to the preparation of design~~ 
 37.37  ~~documents, the post-secondary boards~~ 
 37.38  ~~and the relevant campus staff shall~~ 
 37.39  ~~jointly prepare a master academic plan~~ 
 37.40  ~~for an integrated campus for the~~ 
 37.41  ~~Rochester center facility.  The boards~~ 
 37.42  ~~shall consider the creation of a~~ 
 37.43  ~~polytechnic university.  The plan shall~~ 
 37.44  ~~be submitted for review to the higher~~ 
 37.45  ~~education finance divisions by January~~ 
 37.46  ~~16, 1996, and must be approved by the~~ 
 37.47  ~~legislature before the remaining~~ 
 37.48  ~~$600,000 of the appropriation is~~ 
 37.49  ~~available~~.  
 37.50  ~~(4) The proceeds from the sale of the~~ 
 37.51  ~~technical college are appropriated for~~ 
 37.52  ~~the design and construction necessary~~ 
 37.53  ~~to integrate technical college programs~~ 
 37.54  ~~into the Rochester center and to add or~~ 
 37.55  ~~modify space where necessary.  The new~~ 
 37.56  ~~technical college program space must be~~ 
 37.57  ~~attached to and must maximize the~~ 
 37.58  ~~current services, space, and programs~~ 
 37.59  ~~of the technical college, community~~ 
 37.60  ~~college, state university, and~~ 
 37.61  ~~University of Minnesota cooperative~~ 
 37.62  ~~campus.  The state board of trustees~~ 
 37.63  ~~may not begin construction of this~~ 
 37.64  ~~project until the legislature has~~ 
 37.65  ~~approved the construction plans.~~ 
 38.1   ~~(5) The state board of trustees shall~~ 
 38.2   ~~develop a plan to relocate to the~~ 
 38.3   ~~Austin, Faribault, and other~~ 
 38.4   ~~Southeastern Minnesota campuses all~~ 
 38.5   ~~Rochester campus programs that are not~~ 
 38.6   ~~essential to the integrated mission~~ 
 38.7   ~~planned for the Rochester center~~ 
 38.8   ~~facility.  This plan must be completed~~ 
 38.9   ~~prior to preparing design documents for~~ 
 38.10  ~~the technical college addition to the~~ 
 38.11  ~~Rochester center.~~ 
 38.12  ~~(6) The state board of trustees shall~~ 
 38.13  ~~consider relocating the horticulture~~ 
 38.14  ~~technology program from the Rochester~~ 
 38.15  ~~campus to the Austin campus of~~ 
 38.16  ~~Riverland technical college before the~~ 
 38.17  ~~start of the 1995-1996 academic year.~~ 
 38.18     Sec. 34.  Laws 1994, chapter 643, section 19, subdivision 
 38.19  9, as amended by Laws 1995, chapter 224, section 124, is amended 
 38.20  to read:  
 38.21  Subd. 9.  Museum and Center for 
 38.22  American Indian History                               1,100,000
 38.23  This appropriation is for the board of 
 38.24  trustees of the Minnesota state 
 38.25  colleges and universities to plan, 
 38.26  design, and construct a museum and 
 38.27  center for American Indian history and 
 38.28  policy.  The facility shall be located 
 38.29  at Bemidji State University.  This 
 38.30  appropriation is ~~not~~ available ~~unless~~ 
 38.31  ~~matched by $1,000,000 from nonpublic~~ 
 38.32  ~~sources~~ dollar for dollar to the extent 
 38.33  matched by nonstate money, provided 
 38.34  that a minimum of $500,000 must be 
 38.35  raised from nonstate money.  If more 
 38.36  than $1,100,000 is raised from nonstate 
 38.37  money, the money may be used to expand 
 38.38  the project.  Initiation of the project 
 38.39  must begin prior to June 30, 2001.  The 
 38.40  board of trustees of the Minnesota 
 38.41  state colleges and universities is not 
 38.42  required to pay any debt service for 
 38.43  this appropriation. 
 38.44     Sec. 35.  [STUDENT ORGANIZATIONS.] 
 38.45     A campus student association shall not hold a referendum to 
 38.46  determine statewide affiliation before May 1, 1998, or before 
 38.47  the statewide student associations for the community colleges 
 38.48  and technical colleges consolidate, whichever is sooner. 
 38.49     Sec. 36.  [MINNESOTA VIRTUAL UNIVERSITY.] 
 38.50     Subdivision 1.  [ESTABLISHMENT.] The Minnesota Virtual 
 38.51  University is established as a public-private partnership 
 38.52  consisting of the University of Minnesota, the Minnesota state 
 38.53  colleges and universities, and private colleges and universities 
 38.54  to ensure that lifelong learning opportunities are developed and 
 39.1   available to Minnesota citizens and businesses.  The Minnesota 
 39.2   Virtual University shall establish multiple points of entry for 
 39.3   students with immediate access to all instructional, support, 
 39.4   and administrative services. 
 39.5      Subd. 2.  [COORDINATION.] The University of Minnesota, the 
 39.6   Minnesota state colleges and universities, and the private 
 39.7   colleges and universities are requested to: 
 39.8      (1) oversee the development and implementation of an 
 39.9   electronic system that will support immediate access to all 
 39.10  instructional, support, and administrative services in a 
 39.11  seamless and customer-friendly manner; 
 39.12     (2) ensure that the Minnesota Virtual University develops 
 39.13  and offers on-line programs in, at least, nursing, math, 
 39.14  computer science, and the use of information technology in 
 39.15  elementary and secondary learning; 
 39.16     (3) include private business colleges and universities and 
 39.17  other institutions that could support the development of a 
 39.18  virtual university; and 
 39.19     (4) develop an electronic system supporting student 
 39.20  services, including, but not limited to, course catalogs, 
 39.21  registration systems, credit banks, and occupation and employer 
 39.22  data.  The electronic system shall be designed to integrate with 
 39.23  existing and future systems supporting the University of 
 39.24  Minnesota, the Minnesota state colleges and universities, and 
 39.25  private colleges and universities. 
 39.26     Sec. 37.  [ROUNDTABLE ON VOCATIONAL TECHNICAL EDUCATION.] 
 39.27     A roundtable discussion on vocational technical education 
 39.28  in the state shall be convened.  The roundtable shall consist of 
 39.29  nine members appointed by the governor, as follows: 
 39.30     (1) one member of the state council on vocational technical 
 39.31  education; 
 39.32     (2) the chancellor of the Minnesota state colleges and 
 39.33  universities; 
 39.34     (3) a member of private industry who regularly hires 
 39.35  graduates of vocational technical education programs; 
 39.36     (4) a secondary vocational technical educator; 
 40.1      (5) a post-secondary faculty member in vocational technical 
 40.2   education; 
 40.3      (6) a current student in vocational technical education; 
 40.4      (7) a member of the higher education budget division of the 
 40.5   senate committee on children, families, and learning; 
 40.6      (8) a member of the higher education finance division of 
 40.7   the education committee of the house; and 
 40.8      (9) a representative of organized labor. 
 40.9      The roundtable shall make recommendations on strategies 
 40.10  needed to effectively provide efficient vocational technical 
 40.11  education in Minnesota.  The roundtable shall consider the role 
 40.12  of vocational technical education, its relationship to building 
 40.13  skill-based competencies, its importance to the state, its 
 40.14  relation to secondary and higher education, and the workforce 
 40.15  development needs of the state.  The roundtable shall report to 
 40.16  the legislature on its recommendations by January 15, 1998.  The 
 40.17  state council on vocational technical education and the 
 40.18  Minnesota state colleges and universities shall provide staffing 
 40.19  and other necessary support to the roundtable. 
 40.20     Sec. 38.  [INSTRUCTION TO REVISOR.] 
 40.21     The revisor of statutes shall change the phrases "state 
 40.22  board of technical colleges," "state board for vocational 
 40.23  technical education," "state board for community colleges," and 
 40.24  "state university board," or similar, to "board of trustees of 
 40.25  the Minnesota state colleges and universities" in Minnesota 
 40.26  Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, 
 40.27  subdivision 2b; and 354.66, subdivision 1a. 
 40.28     Sec. 39.  [REPEALER.] 
 40.29     Laws 1995, chapter 212, article 4, section 34; and Laws 
 40.30  1995, First Special Session chapter 2, article 1, sections 35 
 40.31  and 36, are repealed.