HF 3793

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/28/2022 02:11pm

A bill for an act
relating to higher education; expanding the state grant eligibility requirements for
institutions; amending Minnesota Statutes 2020, section 136A.103.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 136A.103, is amended to read:

136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

(a) A postsecondary institution is eligible for state student aid under chapter 136A and
sections 197.791 and 299A.45, if the institution deleted text begin is located in this state and deleted text end :

(1) is operated by this state or the Board of Regents of the University of Minnesota; deleted text begin or
deleted text end

(2) is operated privately new text begin , is located in the state, new text end and, as determined by the office, meets
the requirements of paragraph (b) new text begin ; or
new text end

new text begin (3) is a nonprofit, online, regionally accredited university that offers an exclusively
competency-based education, and, as determined by the office, meets the requirements of
paragraph (b) new text end .

(b) A private institution must:

(1) maintain academic standards substantially equivalent to those of comparable
institutions operated in this state;

(2) be licensed or registered as a postsecondary institution by the office; and

(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
the Higher Education Act of 1965, Public Law 89-329, as amended; or

(ii) if an institution was participating in state student aid programs as of June 30, 2010,
and the institution did not participate in the federal Pell Grant program by June 30, 2010,
the institution must require every student who enrolls to sign a disclosure form, provided
by the office, stating that the institution is not participating in the federal Pell Grant program.

(c) An institution that offers only graduate-level degrees or graduate-level nondegree
programs is an eligible institution if the institution is licensed or registered as a postsecondary
institution by the office.

(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell
Grant program within four calendar years of the first ownership change to continue eligibility.

(e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution. The office may terminate an institution's eligibility to participate in state
student aid programs effective the date of the loss of eligibility for the federal Pell Grant
program.

(f) An institution must maintain adequate administrative and financial standards and
compliance with all state statutes, rules, and administrative policies related to state financial
aid programs.

(g) The office may terminate a postsecondary institution's eligibility to participate in
state student aid programs if the institution is terminated from participating in federal
financial aid programs by the United States Department of Education for a violation of laws,
regulations, or participation agreements governing federal financial aid programs.