SF 4003

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/20/2024 02:22pm

A bill for an act
relating to higher education; making policy and technical changes to certain higher
education provisions, including student sexual misconduct, student aid, and
institutional licensure provisions; imposing requirements for contracts with online
programming companies; establishing policies and procedures for students with
disabilities; requiring reports; amending Minnesota Statutes 2022, sections 135A.15,
as amended; 136A.091, subdivision 3; 136A.1241, subdivision 3; 136A.1701,
subdivisions 4, 7; 136A.62, by adding subdivisions; 136A.63, subdivision 1;
136A.645; 136A.646; 136A.65, subdivisions 4, 8; 136A.675, subdivision 2;
136A.821, subdivision 5, by adding a subdivision; 136A.822, subdivisions 1, 2,
6, 7, 8; 136A.828, subdivision 3, by adding a subdivision; 136A.829, subdivision
3, by adding a subdivision; Minnesota Statutes 2023 Supplement, sections
135A.121, subdivision 2; 135A.161, by adding a subdivision; 135A.162,
subdivision 2; 136A.1241, subdivision 5; 136A.1465, subdivisions 1, 2, 3, 4, 5;
136A.62, subdivision 3; 136A.833, subdivision 2; 136F.38, subdivision 3; proposing
coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; repealing
Minnesota Statutes 2022, section 135A.16; Minnesota Statutes 2023 Supplement,
section 135A.162, subdivision 7.

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

ARTICLE 1

HIGHER EDUCATION POLICY

Section 1.

Minnesota Statutes 2023 Supplement, section 135A.121, subdivision 2, is
amended to read:

Subd. 2.

Eligibility.

To be eligible each year for the program a student must:

(1) be enrolled in an undergraduate certificate, diploma, or degree program at the
University of Minnesota or a Minnesota state college or university;

(2) be either (i) a Minnesota resident for resident tuition purposes who is an enrolled
member or citizen of a federally recognized American Indian Tribe or Canadian First Nation,
or (ii) an enrolled member or citizen of a Minnesota Tribal Nation, regardless of resident
tuition status; deleted text begin and
deleted text end

(3) have not (i) obtained a baccalaureate degree, or (ii) been enrolled for deleted text begin 180 credits deleted text end new text begin 12
semesters new text end or the equivalent, excluding courses taken that qualify as developmental education
or below college-level deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) meet satisfactory academic progress as defined under section 136A.101, subdivision
10.
new text end

Sec. 2.

new text begin [135A.144] TRANSCRIPT ACCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Debt" means any money, obligation, claim, or sum, due or owed, or alleged to be
due or owed, from a student. Debt does not include the fee, if any, charged to all students
for the actual costs of providing the transcripts.
new text end

new text begin (c) "School" means a public institution governed by the Board of Trustees of the
Minnesota State Colleges and Universities, private postsecondary educational institution
as defined under section 136A.62 or 136A.821, or public or private entity that is responsible
for providing transcripts to current or former students of an educational institution.
Institutions governed by the Board of Regents of the University of Minnesota are requested
to comply with this section.
new text end

new text begin (d) "Transcript" means the statement of an individual's academic record, including
official transcripts or the certified statement of an individual's academic record provided
by a school, and unofficial transcripts or the uncertified statement of an individual's academic
record provided by a school.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited practices. new text end

new text begin (a) A school must not refuse to provide a transcript for
a current or former student because the student owes a debt to the school if:
new text end

new text begin (1) the debt owed is less than $1,000;
new text end

new text begin (2) the student has entered into and, as determined by the institution, is in compliance
with a payment plan with the school;
new text end

new text begin (3) the transcript request is made by a prospective employer for the student;
new text end

new text begin (4) the school has sent the debt for repayment to the Department of Revenue or to a
collection agency, as defined in section 332.31, subdivision 3, external to the institution
and the debt has not been returned to the institution unpaid; or
new text end

new text begin (5) the person is incarcerated at a Minnesota correctional facility.
new text end

new text begin (b) A school must not charge an additional or higher fee for obtaining a transcript or
provide less favorable treatment of a transcript request because a student owes a debt to the
originating school.
new text end

new text begin Subd. 3. new text end

new text begin Institutional policy. new text end

new text begin (a) A school that uses transcript issuance as a tool for debt
collection must have a policy accessible to students that outlines how the school collects
on debts owed to the school.
new text end

new text begin (b) A school shall seek to use transcript issuance as a tool for debt collection for the
fewest number of cases possible and in a manner that allows for the quickest possible
resolution of the debt benefitting the student's educational progress.
new text end

new text begin (c) By September 30 each year, beginning in 2024, an institution or system that uses
transcript issuance as a tool for debt collection shall provide the Office of Higher Education
with an updated copy of its policy under paragraph (a), and report the number of students,
as of June 30 of that year, who were denied transcripts due to the student's debt.
new text end

Sec. 3.

new text begin [135A.1581] NAVIGATORS FOR PARENTING STUDENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin (a) This section applies to the following postsecondary
institutions:
new text end

new text begin (1) institutions governed by the Board of Trustees of the Minnesota State Colleges and
Universities; and
new text end

new text begin (2) private postsecondary institutions that offer in-person courses on a campus located
in Minnesota and which are eligible institutions as defined in section 136A.103.
new text end

new text begin (b) Institutions governed by the Board of Regents of the University of Minnesota are
requested to comply with this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Institutions of higher education" means an institution of higher education under
subdivision 1.
new text end

new text begin (c) "Parenting student" means a student enrolled at an institution of higher education
who is the parent or legal guardian of or can claim as a dependent a child under the age of
18.
new text end

new text begin Subd. 3. new text end

new text begin Navigators. new text end

new text begin An institution of higher education must designate at least one
employee of the institution to act as a college navigator for current or incoming students at
the institution who are parenting students. The navigator must provide to the students
information regarding support services and other resources available to the students at the
institution, including:
new text end

new text begin (1) medical and behavioral health coverage and services;
new text end

new text begin (2) public benefit programs, including programs related to food security, affordable
housing, and housing subsidies;
new text end

new text begin (3) parenting and child care resources;
new text end

new text begin (4) employment assistance;
new text end

new text begin (5) transportation assistance; and
new text end

new text begin (6) any other resources developed by the institution to assist the students, including
student academic success strategies.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin (a) By June 30, 2026, an institution of higher education must establish
a process for collecting the parenting status of each enrolled student. By November 30,
2025, the Office of Higher Education shall establish a process for collecting this information
from institutions.
new text end

new text begin (b) Annually, beginning January 15, 2028, the Office of Higher Education must submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over higher education and children, youth, and families. The report must include
the following for parenting students:
new text end

new text begin (1) summary demographic data;
new text end

new text begin (2) enrollment patterns;
new text end

new text begin (3) retention rates;
new text end

new text begin (4) completion rates;
new text end

new text begin (5) average cumulative debt at exit or graduation as possible; and
new text end

new text begin (6) time to completion.
new text end

new text begin Data must be disaggregated by institution, academic year, race and ethnicity, gender, and
other factors determined to be relevant by the commissioner.
new text end

Sec. 4.

new text begin [135A.1582] PROTECTIONS FOR PREGNANT AND PARENTING
STUDENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin (a) For the purpose of this section, the following term has
the meaning given.
new text end

new text begin (b) "Parenting student" means a student enrolled at a public college or university who
is the parent or legal guardian of or can claim as a dependent a child under the age of 18.
new text end

new text begin Subd. 2. new text end

new text begin Rights and protections. new text end

new text begin (a) A Minnesota state college or university may not
require and the University of Minnesota is requested not to require a pregnant or parenting
student, solely because of the student's status as a pregnant or parenting student or due to
issues related to the student's pregnancy or parenting, to:
new text end

new text begin (1) take a leave of absence or withdraw from the student's degree or certificate program;
new text end

new text begin (2) limit the student's studies;
new text end

new text begin (3) participate in an alternative program;
new text end

new text begin (4) change the student's major, degree, or certificate program; or
new text end

new text begin (5) refrain from joining or cease participating in any course, activity, or program at the
college or university.
new text end

new text begin (b) A Minnesota state college or university shall provide and the University of Minnesota
is requested to provide reasonable modifications to a pregnant student, including
modifications that:
new text end

new text begin (1) would be provided to a student with a temporary medical condition; or
new text end

new text begin (2) are related to the health and safety of the student and the student's unborn child, such
as allowing the student to maintain a safe distance from substances, areas, and activities
known to be hazardous to pregnant women or unborn children.
new text end

new text begin (c) A Minnesota state college or university must and the University of Minnesota is
requested to, for reasons related to a student's pregnancy, childbirth, or any resulting medical
status or condition:
new text end

new text begin (1) excuse the student's absence;
new text end

new text begin (2) allow the student to make up missed assignments or assessments;
new text end

new text begin (3) allow the student additional time to complete assignments in the same manner as the
institution allows for a student with a temporary medical condition; and
new text end

new text begin (4) provide the student with access to instructional materials and video recordings of
lectures for classes for which the student has an excused absence under this section to the
same extent that instructional materials and video recordings of lectures are made available
to any other student with an excused absence.
new text end

new text begin (d) A Minnesota state college or university must and the University of Minnesota is
requested to allow a pregnant or parenting student to:
new text end

new text begin (1) take a leave of absence; and
new text end

new text begin (2) if in good academic standing at the time the student takes a leave of absence, return
to the student's degree or certificate program in good academic standing without being
required to reapply for admission.
new text end

new text begin (e) If a public college or university provides early registration for courses or programs
at the institution for any group of students, the Minnesota state college or university must
provide and the University of Minnesota is requested to provide early registration for those
courses or programs for pregnant or parenting students in the same manner.
new text end

new text begin Subd. 3. new text end

new text begin Policy on discrimination. new text end

new text begin Each Minnesota state college or university must
adopt and the University of Minnesota is requested to adopt a policy for students on
pregnancy and parenting discrimination. The policy must:
new text end

new text begin (1) include the contact information of the Title IX coordinator who is the designated
point of contact for a student requesting each protection or modification under this section.
Contact information must include the Title IX coordinator's name, phone number, email,
and office;
new text end

new text begin (2) be posted in an easily accessible, straightforward format on the college or university's
website; and
new text end

new text begin (3) be made available annually to faculty, staff, and employees of the college or
university.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner of the Office of Higher Education must,
in consultation with the Board of Trustees of the Minnesota State Colleges and Universities
and the Board of Regents of the University of Minnesota, establish guidelines, as necessary,
to administer this section. The guidelines must establish minimum periods for which a
pregnant or parenting student must be given a leave of absence under subdivision 2, paragraph
(d). In establishing the minimum periods, the Office of Higher Education shall consider the
maximum amount of time a student may be absent without significantly interfering with
the student's ability to complete the student's degree or certificate program.
new text end

Sec. 5.

Minnesota Statutes 2023 Supplement, section 135A.161, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin The director must evaluate the development and implementation
of the Minnesota inclusive higher education initiatives receiving a grant under section
135A.162. The director must submit an annual report by October 1 on the progress to expand
Minnesota inclusive higher education options for students with intellectual disabilities to
the commissioner and chairs and ranking minority members of the legislative committees
with jurisdiction over higher education policy and finance. The report must include statutory
and budget recommendations.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 135A.162, subdivision 2, is amended
to read:

Subd. 2.

Eligible grantees.

A new text begin Tribal college or new text end public or nonprofit postsecondary
two-year or four-year institution is eligible to apply for a grant under this section if the
institution:

(1) is accredited by the Higher Learning Commission; and

(2) meets the eligibility requirements under section 136A.103.

Sec. 7.

new text begin [135A.163] STUDENTS WITH DISABILITIES; ACCOMMODATIONS;
GENERAL REQUIREMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Short title. new text end

new text begin This act may be cited as the "Minnesota Respond, Innovate,
Succeed, and Empower (RISE) Act."
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Institution of higher education" means a public institution of higher education,
Tribal college, and private institution of higher education that receives federal funding. The
Board of Regents of the University of Minnesota is requested to comply with this section.
new text end

new text begin (c) "Plain language" means communication the audience can understand the first time
the audience reads or hears it.
new text end

new text begin (d) "Student with a disability" means an admitted or enrolled student who meets the
definition of an individual with a disability under the Americans with Disabilities Act and
includes a student with an intellectual disability as defined in Code of Federal Regulations,
title 34, section 668.231, who is admitted or enrolled in a comprehensive transition and
postsecondary program.
new text end

new text begin Subd. 3. new text end

new text begin Students with disabilities policy; dissemination of policy. new text end

new text begin Each institution
of higher education shall adopt a policy making self-disclosure by a student with a disability
sufficient proof of a disability, which starts the interactive process for reasonable
accommodations under subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Establishment of reasonable accommodation; documentation. new text end

new text begin (a) An
institution of higher education shall engage in an interactive process to document the student's
accommodation needs to establish a reasonable accommodation. An institution may request
documentation as part of the interactive process to establish accommodations for the student
with a disability.
new text end

new text begin (b) The following documentation submitted by an admitted or enrolled student is
sufficient documentation for the interactive process to establish reasonable accommodations
for a student with a disability:
new text end

new text begin (1) documentation that the individual has had an individualized education program (IEP).
The institution of higher education may request additional documentation from an individual
who has had an IEP if the IEP was not in effect immediately before the date when the
individual exited high school;
new text end

new text begin (2) documentation that the individual has received services or accommodations under
a section 504 plan. The institution of higher education may request additional documentation
from an individual who has received services or accommodations provided to the individual
under a section 504 plan if the section 504 plan was not in effect immediately before the
date when the individual exited high school;
new text end

new text begin (3) documentation of a plan or record of service for the individual from a private school,
a local educational agency, a state educational agency, or an institution of higher education
provided under a section 504 plan or in accordance with the Americans with Disabilities
Act of 1990;
new text end

new text begin (4) a record or evaluation from an appropriately qualified health or other service
professional who is knowledgeable about the individual's condition, finding that the
individual has a disability;
new text end

new text begin (5) a plan or record of a disability from another institution of higher education;
new text end

new text begin (6) documentation of a disability due to military service; or
new text end

new text begin (7) additional information from an appropriately qualified health or other service
professional who is knowledgeable about the student's condition and can clarify the need
for a new accommodation not included in subdivision 4, paragraph (b), clauses (1) to (6).
new text end

new text begin (c) An institution of higher education may establish less burdensome criteria to determine
reasonable accommodations for an enrolled or admitted student with a disability.
new text end

new text begin (d) An institution of higher education shall include a representative list of potential
reasonable accommodations and disability resources for individuals with a disability that
is accessible to applicants, students, parents, and faculty in plain language accessible formats.
This information must be available in languages that reflect the primary languages of the
institution's student body. The information must be provided during the student application
process, student orientation, in academic catalogs, and the institution's public website. The
reasonable accommodations and disability resources available to students are individualized
and not limited to the list.
new text end

new text begin Subd. 5. new text end

new text begin Higher education requirements for students with disabilities. new text end

new text begin Institutions
of higher education shall:
new text end

new text begin (1) before the beginning of each academic term, offer an opportunity for admitted students
to self-identify as having a disability for which they may request an accommodation. The
person or office responsible for arranging accommodations at the institution must initiate
contact with any student who has self-identified under this clause. This does not preclude
a student from requesting an accommodation for a disability at any other time;
new text end

new text begin (2) not require a student to be reevaluated for or submit documentation to prove the
presence of a permanent disability if the student previously provided proof of their disability
status and is not requesting any new accommodations;
new text end

new text begin (3) if a course instructor cannot provide an accommodation because it would
fundamentally alter the nature of that course, require an instructor to provide a notification
detailing why an accommodation cannot be provided to the student and submit that
information to the student and the person or office responsible for arranging accommodations;
and
new text end

new text begin (4) provide a student with a disability who is denied accommodations the option to
include the person or office responsible for arranging accommodations in the institution's
grievance or appeal process, to resolve equitable access barriers and prevent academic or
financial penalty due to no fault of the student.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2025.
new text end

Sec. 8.

new text begin [135A.195] ADMISSIONS APPLICATIONS; LEGACY ADMISSIONS AND
ADMISSIONS BASED ON DONOR STATUS PROHIBITED.
new text end

new text begin (a) For the purpose of this section, "legacy status" means the familial relationship of an
individual applying for admission to an institution of higher education to an alumnus of the
institution.
new text end

new text begin (b) No public or private institution of higher education in Minnesota shall provide any
manner of preferential treatment in the admissions decision to any student applicant on the
basis of a student's legacy status or a student's familial relationship to any donor to such
institution. The Board of Regents of the University of Minnesota is requested to comply
with this section.
new text end

Sec. 9.

new text begin [136A.053] CONSOLIDATED STUDENT AID REPORTING.
new text end

new text begin (a) The commissioner of the Office of Higher Education shall report annually beginning
February 15, 2026, to the chairs and ranking minority members of the legislative committees
with jurisdiction over higher education, on the details of programs administered under
sections 136A.091 to 136A.1276, 136A.1465, and 136A.231 to 136A.246, including the:
new text end

new text begin (1) total funds appropriated and expended;
new text end

new text begin (2) total number of students applying for funds;
new text end

new text begin (3) total number of students receiving funds;
new text end

new text begin (4) average and total award amounts;
new text end

new text begin (5) summary demographic data on award recipients;
new text end

new text begin (6) retention rates of award recipients;
new text end

new text begin (7) completion rates of award recipients;
new text end

new text begin (8) average cumulative debt at exit or graduation; and
new text end

new text begin (9) average time to completion.
new text end

new text begin (b) Data must be disaggregated by program, institution, aid year, race and ethnicity,
gender, income, family type, dependency status, and any other factors determined to be
relevant by the commissioner. The commissioner must report any additional data and
outcomes relevant to the evaluation of programs administered under sections 136A.091 to
136A.1276, 136A.1465, and 136A.231 to 136A.246 as evidenced by activities funded under
each program.
new text end

Sec. 10.

Minnesota Statutes 2022, section 136A.091, subdivision 3, is amended to read:

Subd. 3.

Financial need.

Need for financial assistance is based on student eligibility for
free or reduced-price school meals new text begin under the national school lunch program new text end . Student
eligibility shall be verified by sponsors of approved academic programs. The office shall
award stipends for students within the limits of available appropriations for this section. If
the amount appropriated is insufficient, the office shall allocate the available appropriation
in the manner it determines. A stipend must not exceed $1,000 per student.

Sec. 11.

new text begin [136A.097] ORDER OF AID CALCULATIONS.
new text end

new text begin The commissioner must calculate aid for programs in the order of their original enactment
from oldest to most recent. The commissioner may determine the order of calculating state
financial aid if:
new text end

new text begin (1) a student is eligible for multiple state financial aid programs; and
new text end

new text begin (2) two or more of those programs calculate funding after accounting for other state aid.
new text end

new text begin If the commissioner determines that a greater amount of financial aid would be available
to students by calculating aid in a particular order, the commissioner may calculate aid in
that order.
new text end

Sec. 12.

Minnesota Statutes 2022, section 136A.1241, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

(a) An individual who is eligible for the Education and Training
Voucher Program is eligible for a foster grant.

(b) If the individual is not eligible for the Education and Training Voucher Program, in
order to receive a foster grant, an individual must:

(1) meet the definition of a resident student under section 136A.101, subdivision 8;

(2) be at least 13 years of age but fewer than 27 years of age;

(3) after the individual's 13th birthday, be in or have been in foster care in Minnesota
before, on, or after June 27, 2021, including any of the following:

(i) placement in foster care at any time while 13 years of age or older;

(ii) adoption from foster care at any time after reaching 13 years of age; or

(iii) placement from foster care with a permanent legal custodian at any time after
reaching 13 years of age;

(4) have graduated from high school or completed the equivalent as approved by the
Department of Education;

(5) have been accepted for admission to, or be currently attending, an eligible institution;

(6) have submitted a FAFSA; deleted text begin and
deleted text end

(7) be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10 deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) not be in default, as defined by the office, of any federal or state student educational
loan;
new text end

new text begin (9) not be more than 30 days in arrears in court-ordered child support that is collected
or enforced by the public authority responsible for child support enforcement or, if the
applicant is more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement, be complying
with a written payment agreement under section 518A.69 or order for arrearages; and
new text end

new text begin (10) not have been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C.
new text end

Sec. 13.

Minnesota Statutes 2023 Supplement, section 136A.1241, subdivision 5, is
amended to read:

Subd. 5.

Foster grant amount; payment; opt-out.

(a) Each student shall be awarded
a foster grant based on the federal need analysis. Applicants are encouraged to apply for all
other sources of financial aid. The amount of the foster grant must be equal to the applicant's
recognized cost of attendance after accounting for:

(1) the results of the federal need analysis;

(2) the amount of a federal Pell Grant award for which the applicant is eligible;

(3) the amount of the state grant;

(4) the Federal Supplemental Educational Opportunity Grant;

(5) the sum of all Tribal scholarships;

(6) the amount of any other state and federal gift aid;

(7) the Education and Training Voucher Program;

(8) extended foster care benefits under section 260C.451;

(9) the amount of any private grants or scholarships, excluding grants and scholarships
provided by the private institution of higher education in which the eligible student is
enrolled; and

(10) for public institutions, the sum of all institutional grants, scholarships, tuition
waivers, and tuition remission amounts.

(b) The foster grant shall be paid directly to the eligible institution where the student is
enrolled.

(c) An eligible private institution may opt out of participating in the foster grant program
established under this section. To opt out, the institution shall provide notice to the office
by March 1 for the next academic year. An institution that opts out of participating, but
participated in the program a previous year, must hold harmless currently enrolled recipients
by continuing to provide the benefit under paragraph (d) as long as the student remains
eligible.

(d) An eligible private institution that does not opt out under paragraph (c) and accepts
the student's application to attend the institution must provide institutional grants,
scholarships, tuition waivers, or tuition remission in an amount equal to the difference
between:

(1) the institution's cost of attendance as calculated under subdivision 4, paragraph (b),
clause (1); and

(2) the sum of the foster grant under this subdivision and the sum of the amounts in
paragraph (a), clauses (1) to (9).

(e) An undergraduate student who is eligible may apply for and receive a foster grant
in any year of undergraduate study unless the student has obtained a baccalaureate degree
or received foster grant funds for a period of ten full-time semesters or the equivalent for a
four-year undergraduate degree. A foster grant student enrolled in a two-year degree,
certificate, or diploma program may apply for and receive a foster grant in any year of
undergraduate study unless the student has obtained a baccalaureate degree or received
foster grant funds for a period of six full-time semesters or the equivalent.

(f) Foster grants may be awarded to an eligible student for four quarters, three semesters,
or the equivalent during the course of a single fiscal year. In calculating the award amount,
the office must use the same calculation it would for any other term.

new text begin (g) The commissioner shall establish a priority application deadline.
new text end

new text begin (h) If there is a projected shortfall in available resources, the commissioner must
proportionately reduce awards to keep spending within available resources.
new text end

new text begin (i) Applicants applying after the priority deadline for whom the office has received a
completed application must be placed on a waiting list in order of application completion
date. Awards must be made on a first-come, first-served basis in the order complete
applications are received. Students who received the Fostering Independence Grant in the
previous year shall be given priority. If there are multiple applications with identical
completion dates, those applications must be further sorted by application receipt date.
Awards must be made to eligible students until the appropriation is expended.
new text end

Sec. 14.

Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 1, is
amended to read:

Subdivision 1.

Definitions.

The following terms have the meanings given:

(1) "eligible student" means a resident student under section 136A.101, subdivision 8,
who is enrolled in any public postsecondary educational institution or Tribal college new text begin and
who meets the eligibility requirements in subdivision 2 new text end ;

(2) "gift aid" deleted text begin means all deleted text end new text begin includes:
new text end

new text begin (i) all federal financial aid that is not a loan or pursuant to a work-study program;
new text end

new text begin (ii) state financial aid, unless designated for other expenses, that is not a loan or pursuant
to a work-study program;
new text end

new text begin (iii) institutional new text end financial aid deleted text begin designated for the student's educational expenses deleted text end , including
a grant, scholarship, tuition waiver, fellowship stipend, or other deleted text begin third-party deleted text end payment, new text begin unless
designated for other expenses, new text end that is not a loan or pursuant to a work-study program; new text begin and
new text end

new text begin (iv) all private financial aid that is not a loan or pursuant to a work-study program.
new text end

new text begin Financial aid from the state, public postsecondary educational institutions, and Tribal colleges
that is specifically designated for other expenses is not gift aid for purposes of the North
Star Promise scholarship. Gift aid does not include scholarships funded by the Minnesota
State Colleges and Universities related foundations dollars;
new text end

deleted text begin (3) "office" means the Office of Higher Education;
deleted text end

new text begin (3) "other expenses" includes books, required supplies, child care, emergency assistance,
food, and housing;
new text end

(4) "public postsecondary educational institution" means an institution operated by this
state, new text begin or new text end the Board of Regents of the University of Minnesota deleted text begin , or a Tribal college deleted text end ;

new text begin (5) "recognized cost of attendance" has the meaning given in Code of Federal Regulations,
title 20, chapter 28, subchapter IV, part F, section 108711;
new text end

deleted text begin (5) "scholarship" means funds to pay 100 percent of tuition and fees remaining after
deducting grants and other scholarships;
deleted text end

(6) "Tribal college" means a college defined in section 136A.1796, subdivision 1,
paragraph (c); and

(7) "tuition and fees" means the actual tuition and new text begin mandatory new text end fees charged by an
institution.

Sec. 15.

Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 2, is
amended to read:

Subd. 2.

Conditions for eligibility.

A scholarship may be awarded to an eligible student
who:

(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application;

(2) has a family adjusted gross income below $80,000;

new text begin (3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over
and has met all requirements for admission as a student to an eligible college or university;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end has not earned a baccalaureate degree at the time the scholarship is awarded;

deleted text begin (4) deleted text end new text begin (5) new text end is enrolled in at least one credit per fall, spring, or summer semester; deleted text begin and
deleted text end

new text begin (6) is enrolled in a program or course of study that applies to a degree, diploma, or
certificate;
new text end

new text begin (7) is not in default, as defined by the office, of any federal or state student educational
loan;
new text end

new text begin (8) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages;
new text end

new text begin (9) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C; and
new text end

deleted text begin (5) deleted text end new text begin (10) new text end is meeting satisfactory academic progress as defined in section 136A.101,
subdivision 10.

Sec. 16.

Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 3, is
amended to read:

Subd. 3.

Scholarship.

(a) Beginning in the new text begin fall term of the new text end 2024-2025 academic year,
scholarships shall be awarded to eligible students in an amount not to exceed 100 percent
of tuition and fees after deleted text begin grants and other scholarships are deleted text end new text begin gift aid is new text end deducted.

(b) For the 2024-2025, 2025-2026, and 2026-2027 academic years, if funds remain after
scholarships are awarded under paragraph (a), new text begin supplemental new text end grants shall be awarded to
eligible students in an amount deleted text begin equal to 100 percent of tuition and fees plus, subject to
available funds, deleted text end up to 50 percent of the amount of a Pell grant the student would receive
based on household size, family adjusted gross income, and results of the federal needs
analysis deleted text begin after other gift aid is deducted deleted text end new text begin , not to exceed the student's recognized cost of
attendance new text end . The commissioner may adjust the new text begin supplemental new text end grant amount based on the
availability of funds.

Sec. 17.

Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 4, is
amended to read:

Subd. 4.

Maintain current levels of institutional assistance.

(a) Commencing with
the 2024-2025 academic year, a public postsecondary educational institution new text begin or Tribal
college new text end shall not reduce the institutional gift aid offered or awarded to a student who is
eligible to receive funds under this program unless the student's gift aid exceeds the student's
annual new text begin recognized new text end cost of attendance.

(b) The public postsecondary educational institution new text begin or Tribal college new text end may reduce the
institutional gift aid offer of a student who is eligible to receive funds under this program
by no more than the amount of the student's gift aid that is in excess of the student's annual
new text begin recognized new text end cost of attendance.

(c) The public postsecondary educational institution new text begin or Tribal college new text end shall not consider
receipt or anticipated receipt of funds under this program when considering a student for
qualification for institutional gift aid.

(d) To ensure financial aid is maximized, a public postsecondary educational institution new text begin
or Tribal college new text end is encouraged to implement efforts to avoid scholarship displacement
through consultation with the Office of Higher Education deleted text begin and students to avoid situations
where institutional gift aid can only be used for specific purposes deleted text end .

Sec. 18.

Minnesota Statutes 2023 Supplement, section 136A.1465, subdivision 5, is
amended to read:

Subd. 5.

Duration of scholarship authorized; scholarship paid to institution.

(a)
Each scholarship is for a period of one semester. A scholarship may be renewed provided
that the eligible student continues to meet the conditions of eligibility.

(b) Scholarships may be provided to an eligible student deleted text begin for up to 60 credits for deleted text end new text begin pursuing new text end
the completion of a certificate or an associate degree deleted text begin and up to 120 credits for the completion
of a bachelor's degree deleted text end new text begin who has not previously received the scholarship for four full-time
semesters or the equivalent new text end . new text begin Scholarships may be provided to an eligible student pursuing
the completion of a bachelor's degree who has not previously received the scholarship for
eight full-time semesters or the equivalent. new text end The maximum deleted text begin credits deleted text end for which a student is
eligible is a total of deleted text begin 120 credits deleted text end new text begin eight full-time semesters or the equivalent new text end . new text begin Courses taken
that qualify as developmental education or below college-level shall be excluded from the
limit.
new text end

new text begin (c) A student is entitled to an additional semester or the equivalent of grant eligibility
if the student withdraws from enrollment:
new text end

new text begin (1) for active military service because the student was ordered to active military service
as defined in section 190.05, subdivision 5b or 5c;
new text end

new text begin (2) for a serious health condition, while under the care of a medical professional, that
substantially limits the student's ability to complete the term; or
new text end

new text begin (3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.
new text end

deleted text begin (c) The commissioner shall determine a time frame by which the eligible student must
complete the credential.
deleted text end

(d) The scholarship must be paid directly to the eligible institution where the student is
enrolled.

Sec. 19.

Minnesota Statutes 2022, section 136A.1701, subdivision 4, is amended to read:

Subd. 4.

Terms and conditions of loans.

(a) The office may loan money upon such
terms and conditions as the office may prescribe.

(b) The new text begin minimum loan amount and a new text end maximum loan amount to students must be
determined annually by the office. Loan limits are defined based on the type of program
enrollment, such as a certificate, an associate's degree, a bachelor's degree, or a graduate
program. The aggregate principal amount of all loans made subject to this paragraph to a
student as an undergraduate and graduate student must not exceed $140,000. The amount
of the loan must not exceed the cost of attendance as determined by the eligible institution
less all other financial aid, including PLUS loans or other similar parent loans borrowed on
the student's behalf. new text begin A student may borrow up to the maximum amount twice in the same
grade level.
new text end

(c) The cumulative borrowing maximums must be determined annually by the office
and are defined based on program enrollment. In determining the cumulative borrowing
maximums, the office shall, among other considerations, take into consideration the maximum
SELF loan amount, student financing needs, funding capacity for the SELF program,
delinquency and default loss management, and current financial market conditions.

Sec. 20.

Minnesota Statutes 2022, section 136A.1701, subdivision 7, is amended to read:

Subd. 7.

Repayment of loans.

The office shall establish repayment procedures for loans
made under this section in accordance with the policies, rules, and conditions authorized
under section 136A.16, subdivision 2. The office will take into consideration the loan limits
and current financial market conditions when establishing repayment terms. new text begin The office shall
not require a minimum annual payment, though the office may require minimum monthly
payments.
new text end

Sec. 21.

Minnesota Statutes 2023 Supplement, section 136A.62, subdivision 3, is amended
to read:

Subd. 3.

School.

"School" means:

(1) a Tribal college new text begin that has a physical presence in Minnesota new text end ;

(2) any partnership, company, firm, society, trust, association, corporation, or any
combination thereof, new text begin with a physical presence in Minnesota, new text end which new text begin : new text end (i) is, owns, or operates
a private, nonprofit postsecondary education institution; (ii) is, owns, or operates a private,
for-profit postsecondary education institution; or (iii) provides a postsecondary instructional
program or course leading to a degree whether or not for profit; new text begin or
new text end

(3) any public or private postsecondary educational institution located in another state
or country deleted text begin which offers or makes available to a Minnesota resident any course, program or
educational activity which does not require the leaving of the state for its completion; or deleted text end new text begin
with a physical presence in Minnesota.
new text end

deleted text begin (4) any individual, entity, or postsecondary institution located in another state that
contracts with any school located within the state of Minnesota for the purpose of providing
educational programs, training programs, or awarding postsecondary credits or continuing
education credits to Minnesota residents that may be applied to a degree program.
deleted text end

Sec. 22.

Minnesota Statutes 2022, section 136A.62, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Postsecondary education. new text end

new text begin "Postsecondary education" means the range of
formal learning opportunities beyond high school, including those aimed at learning an
occupation or earning an academic credential.
new text end

Sec. 23.

Minnesota Statutes 2022, section 136A.62, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Physical presence. new text end

new text begin "Physical presence" means a presence within the state of
Minnesota for the purpose of conducting activity related to any program at the degree level
or courses that may be applied to a degree program. Physical presence includes:
new text end

new text begin (1) operating a location within the state;
new text end

new text begin (2) offering instruction within or originating from Minnesota designed to impart
knowledge with response utilizing teachers, trainers, counselors or computer resources,
computer linking, or any form of electronic means; and
new text end

new text begin (3) granting an educational credential from a location within the state or to a student
within the state.
new text end

new text begin Physical presence does not include field trips, sanctioned sports recruiting activities, or
college fairs or other assemblies of schools in Minnesota. No school may enroll an individual,
allow an individual to sign any agreement obligating the person to the school, accept any
moneys from the individual, or follow up with an individual by means of an in-person
meeting in Minnesota at a college fair or assembly.
new text end

Sec. 24.

Minnesota Statutes 2022, section 136A.63, subdivision 1, is amended to read:

Subdivision 1.

Annual registration.

All schools deleted text begin located within Minnesota and all schools
located outside Minnesota deleted text end new text begin with a physical presence in Minnesota new text end which offer degree
programs or courses within Minnesota shall register annually with the office.

Sec. 25.

Minnesota Statutes 2022, section 136A.646, is amended to read:

136A.646 ADDITIONAL SECURITY.

(a) New institutions that have been granted conditional approval for degrees or names
to allow them the opportunity to apply for and receive accreditation under section 136A.65,
subdivision 7, shall provide a surety bond in a sum equal to ten percent of the net revenue
from tuition and fees in the registered institution's prior fiscal year, but in no case shall the
bond be less than $10,000.

(b) Any registered institution that is notified by the United States Department of Education
that it has fallen below minimum financial standards and that its continued participation in
Title IV will be conditioned upon its satisfying deleted text begin either the Zone Alternative, deleted text end new text begin an alternative
standard set forth in new text end Code of Federal Regulations, title 34, section 668.175, deleted text begin paragraph (f),
or a Letter of Credit Alternative, Code of Federal Regulations, title 34, section 668.175,
paragraph (c), deleted text end shall provide a surety bond in a sum equal to the "letter of credit" required
by the United States Department of Education in the Letter of Credit Alternative, but in no
event shall such bond be less than $10,000 nor more than $250,000. If the letter of credit
required by the United States Department of Education is higher than ten percent of the
Title IV, Higher Education Act program funds received by the institution during its most
recently completed fiscal year, the office shall reduce the office's surety requirement to
represent ten percent of the Title IV, Higher Education Act program funds received by the
institution during its most recently completed fiscal year, subject to the minimum and
maximum in this paragraph.

(c) In lieu of a bond, the applicant may deposit with the commissioner of management
and budget:

(1) a sum equal to the amount of the required surety bond in cash;

(2) securities, as may be legally purchased by savings banks or for trust funds, in an
aggregate market value equal to the amount of the required surety bond; or

(3) an irrevocable letter of credit issued by a financial institution to the amount of the
required surety bond.

(d) The surety of any bond may cancel it upon giving 60 days' notice in writing to the
office and shall be relieved of liability for any breach of condition occurring after the
effective date of cancellation.

(e) In the event of a school closure, the additional security must first be used to destroy
any private educational data under section 13.32 left at a physical campus in Minnesota
after all other governmental agencies have recovered or retrieved records under their record
retention policies. Any remaining funds must then be used to reimburse tuition and fee costs
to students that were enrolled at the time of the closure or had withdrawn in the previous
deleted text begin 120 deleted text end new text begin 180 new text end calendar days but did not graduate. Priority for refunds will be given to students
in the following order:

(1) cash payments made by the student or on behalf of a student;

(2) private student loans; and

(3) Veteran Administration education benefits that are not restored by the Veteran
Administration. If there are additional security funds remaining, the additional security
funds may be used to cover any administrative costs incurred by the office related to the
closure of the school.

Sec. 26.

Minnesota Statutes 2022, section 136A.675, subdivision 2, is amended to read:

Subd. 2.

Additional reporting.

(a) In addition to the information required for the
indicators in subdivision 1, an institution must notify the office within ten business days if
any of the events in paragraphs (b) to (e) occur.

(b) Related to revenue, debt, and cash flow, notice is required if:

(1) the institution defaulted on a debt payment or covenant and has not received a waiver
of the violation from the financial institution within 60 days;

(2) for institutions with a federal composite score of less than 1.5, the institution's owner
withdraws equity that directly results in a composite score of less than 1.0, unless the
withdrawal is a transfer between affiliated entities included in a common composite score;

(3) the United States Department of Education requires a 25 percent or greater Letter of
Credit, except when the Letter of Credit is imposed due to a change of ownership;

(4) the United States Department of Education requires Heightened Cash Monitoring 2;

(5) the institution receives written notification that it violated the United States
Department of Education's revenue requirement under United States Code, title 20, section
1094(a)(24), as amended; or

(6) the institution receives written notification by the United States Department of
Education that it has fallen below minimum financial standards and that its continued
participation in Title IV is conditioned upon satisfying deleted text begin either the Zone Alternative, deleted text end new text begin an
alternative standard set forth in new text end Code of Federal Regulations, title 34, section 668.175 deleted text begin ,
paragraph (f), or a Letter of Credit Alternative, Code of Federal Regulations, title 34, section
668.175, paragraph (c) deleted text end .

(c) Related to accreditation and licensing, notice is required if:

(1) the institution receives written notification of probation, warning, show-cause, or
loss of institutional accreditation;

(2) the institution receives written notification that its institutional accreditor lost federal
recognition; or

(3) the institution receives written notification that it has materially violated state
authorization or institution licensing requirements in a different state that may lead to or
has led to the termination of the institution's ability to continue to provide educational
programs or otherwise continue to operate in that state.

(d) Related to securities, notice is required if:

(1) the Securities and Exchange Commission (i) issues an order suspending or revoking
the registration of the institution's securities, or (ii) suspends trading of the institution's
securities on any national securities exchange;

(2) the national securities exchange on which the institution's securities are traded notifies
the institution that it is not in compliance with the exchange's listing requirements and the
institution's securities are delisted; or

(3) the Securities and Exchange Commission is not in timely receipt of a required report
and did not issue an extension to file the report.

(e) Related to criminal and civil investigations, notice is required if:

(1) the institution receives written notification of a felony criminal indictment or charges
of the institution's owner;

(2) the institution receives written notification of criminal indictment or charges of the
institution's officers related to operations of the institution; or

(3) there has been a criminal, civil, or administrative adjudication of fraud or
misrepresentation in Minnesota or in another state or jurisdiction against the institution or
its owner, officers, agents, or sponsoring organization.

Sec. 27.

Minnesota Statutes 2022, section 136A.821, subdivision 5, is amended to read:

Subd. 5.

Private career school.

"Private career school" means a person who maintains deleted text begin ,
advertises, administers, solicits for, or conducts deleted text end new text begin a physical presence for new text end any program at less
than an associate degree level; is not registered as a private institution under sections 136A.61
to 136A.71; and is not specifically exempted by section 136A.833.

Sec. 28.

Minnesota Statutes 2022, section 136A.821, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin Physical presence. new text end

new text begin "Physical presence" means presence within the state of
Minnesota for the purpose of conducting activity related to any program at less than an
associate degree level. Physical presence includes:
new text end

new text begin (1) operating a location within the state;
new text end

new text begin (2) offering instruction within or originating from Minnesota designed to impart
knowledge with response utilizing teachers, trainers, counselors or computer resources,
computer linking, or any form of electronic means;
new text end

new text begin (3) granting an educational credential from a location within the state or to a student
within the state; and
new text end

new text begin (4) using an agent, recruiter, institution, or business that solicits for enrollment or credits
or for the award of an educational credential.
new text end

new text begin Physical presence does not include field trips, sanctioned sports recruiting activities, or
college fairs or other assemblies of schools in Minnesota. No school may enroll an individual,
allow an individual to sign any agreement obligating the person to the school, accept any
moneys from the individual, or follow up with an individual by means of an in-person
meeting in Minnesota at a college fair or assembly.
new text end

Sec. 29.

Minnesota Statutes 2022, section 136A.822, subdivision 1, is amended to read:

Subdivision 1.

Required.

A private career school must not maintain deleted text begin , advertise, solicit
for, administer, or conduct deleted text end new text begin a physical presence for new text end any program in Minnesota without first
obtaining a license from the office.

Sec. 30.

Minnesota Statutes 2022, section 136A.822, subdivision 2, is amended to read:

Subd. 2.

Contract unenforceable.

A contract entered into with a person for a program
by or on behalf of a person operating a private career school new text begin with a physical presence in
Minnesota new text end to which a license has not been issued under sections 136A.821 to 136A.833, is
unenforceable in any action.

Sec. 31.

Minnesota Statutes 2022, section 136A.822, subdivision 6, is amended to read:

Subd. 6.

Bond.

(a) No license shall be issued to any private career school deleted text begin which
maintains, conducts, solicits for, or advertises deleted text end new text begin with a physical presence new text end within the state of
Minnesota new text begin for new text end any program, unless the applicant files with the office a continuous corporate
surety bond written by a company authorized to do business in Minnesota conditioned upon
the faithful performance of all contracts and agreements with students made by the applicant.

(b)(1) The amount of the surety bond shall be ten percent of the preceding year's net
revenue from student tuition, fees, and other required institutional charges collected, but in
no event less than $10,000, except that a private career school may deposit a greater amount
at its own discretion. A private career school in each annual application for licensure must
compute the amount of the surety bond and verify that the amount of the surety bond complies
with this subdivision. A private career school that operates at two or more locations may
combine net revenue from student tuition, fees, and other required institutional charges
collected for all locations for the purpose of determining the annual surety bond requirement.
The net revenue from tuition and fees used to determine the amount of the surety bond
required for a private career school having a license for the sole purpose of recruiting students
in Minnesota shall be only that paid to the private career school by the students recruited
from Minnesota.

(2) A person required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in its name and which is also licensed by
another state agency or board, except not including those schools licensed exclusively in
order to participate in state grants or SELF loan financial aid programs, shall be required
to provide a school bond of $10,000.

(c) The bond shall run to the state of Minnesota and to any person who may have a cause
of action against the applicant arising at any time after the bond is filed and before it is
canceled for breach of any contract or agreement made by the applicant with any student.
The aggregate liability of the surety for all breaches of the conditions of the bond shall not
exceed the principal sum deposited by the private career school under paragraph (b). The
surety of any bond may cancel it upon giving 60 days' notice in writing to the office and
shall be relieved of liability for any breach of condition occurring after the effective date
of cancellation.

(d) In lieu of bond, the applicant may deposit with the commissioner of management
and budget a sum equal to the amount of the required surety bond in cash, an irrevocable
letter of credit issued by a financial institution equal to the amount of the required surety
bond, or securities as may be legally purchased by savings banks or for trust funds in an
aggregate market value equal to the amount of the required surety bond.

(e) Failure of a private career school to post and maintain the required surety bond or
deposit under paragraph (d) may result in denial, suspension, or revocation of the school's
license.

Sec. 32.

Minnesota Statutes 2022, section 136A.822, subdivision 7, is amended to read:

Subd. 7.

Resident agent.

Private career schools located outside the state of Minnesota
that deleted text begin offer, advertise, solicit for, or conduct any program deleted text end new text begin have a physical presence new text end within
the state of Minnesota shall first file with the secretary of state a sworn statement designating
a resident agent authorized to receive service of process. The statement shall designate the
secretary of state as resident agent for service of process in the absence of a designated
agent. If a private career school fails to file the statement, the secretary of state is designated
as the resident agent authorized to receive service of process. The authorization shall be
irrevocable as to causes of action arising out of transactions occurring prior to the filing of
written notice of withdrawal from the state of Minnesota filed with the secretary of state.

Sec. 33.

Minnesota Statutes 2022, section 136A.822, subdivision 8, is amended to read:

Subd. 8.

Minimum standards.

A license shall be issued if the office first determines:

(1) that the applicant has a sound financial condition with sufficient resources available
to:

(i) meet the private career school's financial obligations;

(ii) refund all tuition and other charges, within a reasonable period of time, in the event
of dissolution of the private career school or in the event of any justifiable claims for refund
against the private career school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the private career school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment and
the necessary number of work stations to prepare adequately the students currently enrolled,
and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to
provide the educational programs contemplated;

(4) that the private career school has an organizational framework with administrative
and instructional personnel to provide the programs and services it intends to offer;

(5) that the quality and content of each occupational course or program of study provides
education and adequate preparation to enrolled students for entry level positions in the
occupation for which prepared;

(6) that the premises and conditions where the students work and study and the student
living quarters which are owned, maintained, recommended, or approved by the applicant
are sanitary, healthful, and safe, as evidenced by certificate of occupancy issued by the
municipality or county where the private career school is physically situated, a fire inspection
by the local or state fire marshal, or another verification deemed acceptable by the office;

(7) that the contract or enrollment agreement used by the private career school complies
with the provisions in section 136A.826;

(8) that contracts and agreements do not contain a wage assignment provision or a
confession of judgment clause; deleted text begin and
deleted text end

(9) that there has been no adjudication of fraud or misrepresentation in any criminal,
civil, or administrative proceeding in any jurisdiction against the private career school or
its owner, officers, agents, or sponsoring organization new text begin ; and
new text end

new text begin (10) the private career school or its owners, officers, agents, or sponsoring organization
has not had a license revoked under section 136A.829, or its equivalent in other states or
has closed the institution prior to all students, enrolled at the time of the closure, completing
their program within two years of the effective date of the revocation new text end .

Sec. 34.

Minnesota Statutes 2022, section 136A.828, subdivision 3, is amended to read:

Subd. 3.

False statements.

(a) A private career school, agent, or solicitor shall not make,
or cause to be made, any statement or representation, oral, written or visual, in connection
with the offering or publicizing of a program, if the private career school, agent, or solicitor
knows or reasonably should have known the statement or representation to be false,
fraudulent, deceptive, substantially inaccurate, or misleading.

(b) Other than opinion-based statements or puffery, a school shall only make claims that
are evidence-based, can be validated, and are based on current conditions and not on
conditions that are no longer relevant.

(c) A school shall not guarantee or imply the guarantee of employment.

(d) A school shall not guarantee or advertise any certain wage or imply earnings greater
than the prevailing wage for entry-level wages in the field of study for the geographic area
unless advertised wages are based on verifiable wage information from graduates.

(e) If placement statistics are used in advertising or other promotional materials, the
school must be able to substantiate the statistics with school records. These records must
be made available to the office upon request. A school is prohibited from reporting the
following in placement statistics:

(1) a student required to receive a job offer or start a job to be classified as a graduate;

(2) a graduate if the graduate held a position before enrolling in the program, unless
graduating enabled the graduate to maintain the position or the graduate received a promotion
or raise upon graduation;

(3) a graduate who works less than 20 hours per week; and

(4) a graduate who is not expected to maintain the position for at least 180 days.

(f) A school shall not use endorsements, commendations, or recommendations by a
student in favor of a school except with the consent of the student and without any offer of
financial or other material compensation. Endorsements may be used only when they portray
current conditions.

(g) A school may advertise that the school or its programs have been accredited by an
accrediting agency recognized by the United States Department of Education or the Council
for Higher Education Accreditation, but shall not advertise any other accreditation unless
approved by the office. The office may approve an institution's advertising of accreditation
that is not recognized by the United States Department of Education or the Council for
Higher Education if that accreditation is industry specific. Clear distinction must be made
when the school is in candidacy or application status versus full accreditation.

(h) A school may advertise that financial aid is available, including a listing of the
financial aid programs in which the school participates, but federal or state financial aid
shall not be used as a primary incentive in advertisement, promotion, or recruitment.

(i) A school may advertise placement or career assistance, if offered, but shall not use
the words "wanted," "help wanted," or "trainee," either in the headline or the body of the
advertisement.

(j) A school shall not be advertised under any "help wanted," "employment," or similar
classification.

(k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar
test.

new text begin (l) A school shall not make a claim that its program qualifies for a national certification
if that national certification entity is not accepted or recognized by Minnesota employers.
A school may validate that a national certification is accepted or recognized by Minnesota
employers by providing three certified letters from employers that the national certification
entity is recognized in Minnesota by employers.
new text end

deleted text begin (l) deleted text end new text begin (m) new text end The commissioner, at any time, may require a retraction of a false, misleading,
or deceptive claim. To the extent reasonable, the retraction must be published in the same
manner as the original claim.

Sec. 35.

Minnesota Statutes 2022, section 136A.829, subdivision 3, is amended to read:

Subd. 3.

Powers and duties.

The office shall have (in addition to the powers and duties
now vested therein by law) the following powers and duties:

(a) To negotiate and enter into interstate reciprocity agreements with similar agencies
in other states, if in the judgment of the office such agreements are or will be helpful in
effectuating the purposes of Laws 1973, chapter 714;

(b) To grant conditional private career school license for periods of less than one year
if in the judgment of the office correctable deficiencies exist at the time of application and
when refusal to issue private career school license would adversely affect currently enrolled
students;

(c) The office may upon its own motion, and shall upon the verified complaint in writing
of any person setting forth fact which, if proved, would constitute grounds for refusal or
revocation under Laws 1973, chapter 714, investigate the actions of any applicant or any
person or persons holding or claiming to hold a license or permit. However, before proceeding
to a hearing on the question of whether a license or permit shall be refused, revoked or
suspended for any cause enumerated in subdivision 1, the office shall grant a reasonable
time to the holder of or applicant for a license or permit to correct the situation. If within
such time the situation is corrected and the private career school is in compliance with the
provisions of sections 136A.82 to 136A.834, no further action leading to refusal, revocation,
or suspension shall be taken.

new text begin (d) To grant a private career school a probationary license for periods of less than three
years if, in the judgment of the office, correctable deficiencies exist at the time of application
that need more than one year to correct and when the risk of harm to students can be
minimized through the use of restrictions and requirements as conditions of the license.
Probationary licenses may include requirements and restrictions for:
new text end

new text begin (1) periodic monitoring and submission of reports on the school's deficiencies to ascertain
whether compliance improves;
new text end

new text begin (2) periodic collaborative consultations with the school on noncompliance with sections
136A.82 to 136A.834 or how the institution is managing compliance;
new text end

new text begin (3) the submission of contingency plans such as teach-out plans or transfer pathways
for students;
new text end

new text begin (4) a prohibition from accepting tuition and fee payments prior to the add/drop period
of the current period of instruction or before the funds have been earned by the school
according to the refund requirements of section 136A.827;
new text end

new text begin (5) a prohibition from enrolling new students;
new text end

new text begin (6) enrollment caps;
new text end

new text begin (7) the initiation of alternative processes and communications with students enrolled at
the school to notify students of deficiencies or probation status;
new text end

new text begin (8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b),
clause (1), that exceeds ten percent of the preceding year's net revenue from student tuition,
fees, and other required institutional charges collected; or
new text end

new text begin (9) submission of closure information under section 136A.8225.
new text end

Sec. 36.

Minnesota Statutes 2022, section 136A.829, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Effect. new text end

new text begin A private career school or its owners, officers, or sponsoring organization
is prohibited from applying for licensure under section 136A.822 within two years of the
effective date of a revocation or within two years from the last date of instruction if the
school closed prior to all students completing their courses and programs. A school applying
for licensure must:
new text end

new text begin (1) meet the requirements for licensure under section 136A.822;
new text end

new text begin (2) pay the licensure fees as a new school under section 136A.824, subdivision 1;
new text end

new text begin (3) correct any deficiencies that were identified in the revocation order or closed school
requests under section 136A.8225;
new text end

new text begin (4) pay any outstanding fines or penalties under section 136A.832; and
new text end

new text begin (5) pay any outstanding student refunds under section 136A.827.
new text end

Sec. 37.

Minnesota Statutes 2023 Supplement, section 136A.833, subdivision 2, is amended
to read:

Subd. 2.

Exemption reasons.

Sections 136A.821 to 136A.832 shall not apply to the
following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections 136A.61 to 136A.71;

(3) postsecondary institutions exempt from registration under sections 136A.653,
subdivisions 1b, 2, 3, and 3a; 136A.657; and 136A.658;

deleted text begin (4) private career schools of nursing accredited by the state Board of Nursing or an
equivalent public board of another state or foreign country;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end private schools complying with the requirements of section 120A.22, subdivision
4;

deleted text begin (6) deleted text end new text begin (5) new text end courses taught to students in an apprenticeship program registered by the United
States Department of Labor or Minnesota Department of Labor and taught by or required
by a trade union new text begin . A trade union is an organization of workers in the same skilled occupation
or related skilled occupations who act together to secure all members favorable wages,
hours, and other working conditions new text end ;

deleted text begin (7) deleted text end new text begin (6) new text end private career schools exclusively engaged in training physically or mentally
disabled persons deleted text begin for the state of Minnesota deleted text end ;

deleted text begin (8) deleted text end new text begin (7) new text end private career schools licensed new text begin or approved new text end by boards authorized under Minnesota
law to issue licenses for training programs except private career schools required to obtain
a private career school license due to the use of "academy," "institute," "college," or
"university" in their names;

deleted text begin (9) deleted text end new text begin (8) new text end private career schools and educational programs, or training programs, contracted
for by persons, firms, corporations, government agencies, or associations, for the training
of their own employees, for which no fee is charged the employee new text begin , regardless of whether
that fee is reimbursed by the employer or third party after the employee successfully
completes the training new text end ;

deleted text begin (10) deleted text end new text begin (9) new text end private career schools engaged exclusively in the teaching of purely avocational,
recreational, or remedial subjects new text begin that are not advertised or maintained for vocational or
career advancement new text end , including adult basic education, as determined by the office except
private career schools required to obtain a private career school license due to the use of
deleted text begin "academy," "institute," deleted text end "college deleted text begin , deleted text end " or "university" in their names deleted text begin unless the private career
school used "academy" or "institute" in its name prior to August 1, 2008 deleted text end ;

deleted text begin (11) deleted text end new text begin (10) new text end classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership new text begin and not available to the
public. In making the determination that the organization is bona fide, the office may request
the school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the organization is recognized in Minnesota new text end ;

deleted text begin (12) deleted text end new text begin (11) new text end programs in the fine arts provided by organizations exempt from taxation under
section 290.05 and registered with the attorney general under chapter 309. For the purposes
of this clause, "fine arts" means activities resulting in artistic creation or artistic performance
of works of the imagination which are engaged in for the primary purpose of creative
expression rather than commercial sale new text begin , vocational or career advancement, new text end or employment.
In making this determination the office may seek the advice and recommendation of the
Minnesota Board of the Arts;

deleted text begin (13) deleted text end new text begin (12) new text end classes, courses, or programs intended to fulfill the continuing education
requirements for new text begin a bona fide new text end licensure or certification in a profession, that have been approved
by a legislatively or judicially established board or agency responsible for regulating the
practice of the profession or by an industry-specific certification entity, and that are offered
exclusively to individuals with the professional licensure or certification new text begin . In making the
determination that the licensure or certification is bona fide, the office may request the
school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the licensure and certification is recognized in
Minnesota new text end ;

deleted text begin (14) deleted text end new text begin (13) review new text end classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing, certification, or entrance
examinations new text begin and does not include the instruction to prepare students for that license,
occupation, certification, or exam new text end ;

deleted text begin (15) deleted text end new text begin (14) new text end classes, courses, or programs providing 16 or fewer clock hours of instruction;

deleted text begin (16) deleted text end new text begin (15) new text end classes, courses, or programs providing instruction in personal development new text begin
that is not advertised or maintained for vocational or career advancement new text end , modeling, or
acting;

deleted text begin (17) deleted text end new text begin (16) new text end private career schools with no physical presence in Minnesota deleted text begin , as determined
by the office, deleted text end engaged exclusively in offering distance instruction that are located in and
regulated by other states or jurisdictions if the distance education instruction does not include
internships, externships, field placements, or clinical placements for residents of Minnesota;
and

deleted text begin (18) deleted text end new text begin (17) new text end private career schools providing exclusively training, instructional programs,
or courses where tuition, fees, and any other charges new text begin , regardless of payment or reimbursement
method, new text end for a student to participate do not exceed $100.

Sec. 38.

Minnesota Statutes 2023 Supplement, section 136F.38, subdivision 3, is amended
to read:

Subd. 3.

Program eligibility.

(a) Scholarships shall be awarded only to a student eligible
for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
care services; (4) information technology; (5) early childhood; (6) transportation; (7)
construction; (8) education; (9) public safety; new text begin (10) energy; new text end or deleted text begin (10) deleted text end new text begin (11) new text end a program of study
under paragraph (b).

(b) Each institution may add one additional area of study or certification, based on a
workforce shortage for full-time employment requiring postsecondary education that is
unique to the institution's specific region, as reported in the most recent Department of
Employment and Economic Development job vacancy survey data for the economic
development region in which the institution is located. A workforce shortage area is one in
which the job vacancy rate for full-time employment in a specific occupation in a region is
higher than the state average vacancy rate for that same occupation. The institution may
change the area of study or certification based on new data once every two years.

(c) The student must be enrolled for at least nine credits in a two-year college in the
Minnesota State Colleges and Universities system to be eligible for first- and second-year
scholarships.

(d) The student is eligible for a one-year transfer scholarship if the student transfers from
a two-year college after two or more terms, and the student is enrolled for at least nine
credits in a four-year university in the Minnesota State Colleges and Universities system.

Sec. 39.

new text begin [136F.405] ACADEMIC FREEDOM PROTECTION.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following term has the
meaning given.
new text end

new text begin (b) "Academic freedom" means the freedom of an educator or researcher in higher
education to investigate and discuss the issues in their academic field and to teach or publish
findings without interference from political figures, boards of trustees, donors, or other
entities.
new text end

new text begin Subd. 2. new text end

new text begin Faculty rights. new text end

new text begin (a) Minnesota State Colleges and Universities must maintain
policies that support and encourage academic freedom. A faculty member at a Minnesota
state institution may, without limitation, discuss the subject matter in the classroom of the
courses the faculty member is assigned to teach without interference from political figures,
boards of trustees, donors, or other entities. Each faculty member shall have the right to
teach in an atmosphere of free intellectual inquiry and shall not be subjected to restraints
or harassment that would impair teaching.
new text end

new text begin (b) A faculty member is entitled to full freedom in research and in the publication of
results, so long as the faculty member fulfills the requirements and duties of the academic
position held.
new text end

new text begin (c) A Minnesota state institution shall not discriminate against a faculty member for
engaging in political activities or holding or voicing political views, so long as the exercise
of this right does not interfere with the faculty member's job responsibilities as a faculty
member.
new text end

Sec. 40. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 135A.16, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2023 Supplement, section 135A.162, subdivision 7, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) of this section is effective January 1, 2025.
new text end

ARTICLE 2

SEXUAL MISCONDUCT POLICY

Section 1.

Minnesota Statutes 2022, section 135A.15, as amended by Laws 2023, chapter
52, article 5, section 79, is amended to read:

135A.15 new text begin CAMPUS new text end SEXUAL deleted text begin HARASSMENT AND VIOLENCE deleted text end new text begin MISCONDUCT new text end
POLICY.

Subdivision 1.

Applicability; policy required.

(a) This section applies to the following
postsecondary institutions:

(1) institutions governed by the Board of Trustees of the Minnesota State Colleges and
Universities; and

(2) private postsecondary institutions that offer in-person courses on a campus located
in Minnesota and which are eligible institutions as defined in section 136A.103, deleted text begin provided
that a private postsecondary institution with a systemwide enrollment of fewer than 100
students in the previous academic year is exempt from subdivisions 4 to 10 deleted text end new text begin paragraph (a),
that are participating in the federal Pell Grant program under Title IV of the Higher Education
Act of 1965, Public Law 89-329, as amended new text end .

Institutions governed by the Board of Regents of the University of Minnesota are
requested to comply with this section.

(b) A postsecondary institution must adopt a clear, understandable written policy on
sexual deleted text begin harassment and sexual violence deleted text end new text begin misconduct new text end that informs victims of their rights under
the crime victims bill of rights, including the right to assistance from the Crime Victims
Reimbursement Board and the commissioner of public safety. The policy must apply to
students and employees and must provide information about their rights and duties. The
policy must apply to criminal incidents against a student or employee of a postsecondary
institution occurring on property owned or leased by the postsecondary system or institution
or at any activity, program, organization, or event sponsored by the system or institution,
or by a fraternity deleted text begin and deleted text end new text begin or new text end sorority new text begin , regardless of whether the activity, program, organization,
or event occurs on or off property owned or leased by the postsecondary system or institution new text end .
It must include procedures for reporting incidents of sexual deleted text begin harassment or sexual violence deleted text end new text begin
misconduct new text end and for disciplinary actions against violators. During student registration, a
postsecondary institution shall provide each student with information regarding its policy.
A copy of the policy also shall be posted at appropriate locations on campus at all times.

Subd. 1a.

deleted text begin Sexual assault definition deleted text end new text begin Definitions new text end .

(a) For the purposes of this section,
the following terms have the meanings given.

new text begin (b) "Advisor" means a person who is selected by a responding or reporting party to serve
as a support during a campus investigation and disciplinary process. This person may be
an attorney. An advisor serves as a support to a party by offering comfort or attending
meetings.
new text end

new text begin (c) "Domestic violence" has the meaning giving in section 518B.01, subdivision 2.
new text end

deleted text begin (b) deleted text end new text begin (d) new text end "Incident" means one report of sexual deleted text begin assault deleted text end new text begin misconduct new text end to a postsecondary
institution, regardless of the number of complainants included in the report, the number of
respondents included in the report, and whether or not the identity of any party is known
by the reporting postsecondary institution. Incident encompasses all nonconsensual events
included within one report if multiple events have been identified.

new text begin (e) "Intimate partner violence" means any physical or sexual harm or a pattern of any
other coercive behavior committed, enabled, or solicited to gain or maintain power and
control over a victim, including verbal, psychological, economic, or technological abuse
that may or may not constitute criminal behavior against an individual, that may be classified
as a sexual misconduct, dating violence, or domestic violence caused by:
new text end

new text begin (1) a current or former spouse of the individual; or
new text end

new text begin (2) a person in a sexual or romantic relationship with the individual.
new text end

new text begin (f) "Nonconsensual dissemination of sexual images" has the meaning given in section
617.261.
new text end

new text begin (g) "Reporting party" means the party in a disciplinary proceeding who has reported
being subjected to conduct or communication that could constitute sexual misconduct.
new text end

new text begin (h) "Responding party" means the party in a disciplinary proceeding who has been
reported to be the perpetrator of conduct or communication that could constitute sexual
misconduct.
new text end

deleted text begin (c) deleted text end new text begin (i) new text end "Sexual assault" means rape, sex offenses - fondling, sex offenses - incest, or sex
offenses - statutory rape as defined in Code of Federal Regulations, title 34, part 668, subpart
D, appendix A, as amended.

new text begin (j) "Sexual extortion" has the meaning given in section 609.3458.
new text end

new text begin (k) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.
new text end

new text begin (l) "Sexual harassment" has the meaning given in section 363A.03, subdivision 43.
new text end

new text begin (m) "Sexual misconduct" means an incident of sexual violence, intimate partner violence,
domestic violence, sexual assault, sexual harassment, nonconsensual distribution of sexual
images, sexual extortion, nonconsensual dissemination of a deepfake depicting intimate
parts or sexual acts, sex trafficking, or stalking.
new text end

new text begin (n) "Stalking" means engaging in a course of conduct, on the basis of sex, directed at a
specific person that would cause a reasonable person to (1) fear for that person's safety or
the safety of others, or (2) suffer substantial emotional distress.
new text end

Subd. 2.

Victims' rights.

new text begin (a) new text end The policy required under subdivision 1 shall, at a minimum,
require that students and employees be informed of the policy, and shall include provisions
for:

(1) filing criminal charges with local law enforcement officials in deleted text begin sexual assault deleted text end cases new text begin
defined as sexual misconduct that may constitute criminal behavior new text end ;

(2) the prompt assistance of campus authorities, at the request of the victim, in notifying
the appropriate law enforcement officials and disciplinary authorities of a sexual deleted text begin assault deleted text end new text begin
misconduct new text end incident;

(3) allowing sexual deleted text begin assault deleted text end new text begin misconduct new text end victims to decide whether to report a case to law
enforcement new text begin or not report altogether; participate in a campus investigation, disciplinary
proceeding, or nondisciplinary informal resolution; or not participate altogether new text end ;

(4) requiring campus authorities to treat sexual deleted text begin assault deleted text end new text begin misconduct new text end victims with dignity;

(5) requiring campus authorities to offer sexual deleted text begin assault deleted text end new text begin misconduct new text end victims fair and
respectful health care, counseling services, or referrals to such services;

(6) preventing campus authorities from suggesting to a victim of sexual deleted text begin assault deleted text end new text begin
misconduct new text end that the victim is at fault for the crimes or violations that occurred;

(7) preventing campus authorities from suggesting to a victim of sexual deleted text begin assault deleted text end new text begin
misconduct new text end that the victim should have acted in a different manner to avoid such a crime;

(8) subject to deleted text begin subdivision deleted text end new text begin subdivisions 2a and new text end 10, protecting the privacy of sexual deleted text begin assault deleted text end new text begin
misconduct new text end victims by only disclosing data collected under this section to the victim, persons
whose work assignments reasonably require access, and, at a sexual deleted text begin assault deleted text end new text begin misconduct new text end
victim's request, police conducting a criminal investigation;

(9) an investigation and resolution of a sexual deleted text begin assault deleted text end new text begin misconduct new text end complaint by campus
disciplinary authorities;

(10) a sexual deleted text begin assault deleted text end new text begin misconduct new text end victim's participation in and the presence of the victim's
deleted text begin attorney or other support person deleted text end new text begin advisor new text end who is not a fact witness to the sexual deleted text begin assault deleted text end new text begin
misconduct new text end at any meeting with campus officials concerning the victim's sexual deleted text begin assault deleted text end new text begin
misconduct new text end complaint or campus disciplinary proceeding concerning a sexual deleted text begin assault deleted text end new text begin
misconduct new text end complaint;

(11) ensuring that a sexual deleted text begin assault deleted text end new text begin misconduct new text end victim may decide when to repeat a
description of the incident of sexual deleted text begin assault deleted text end new text begin misconduct new text end ;

(12) notice to a sexual deleted text begin assault deleted text end new text begin misconduct new text end victim of the availability of a campus or local
program providing deleted text begin sexual assault deleted text end new text begin victim new text end advocacy services and information on free legal
resources and services;

(13) notice to a sexual deleted text begin assault deleted text end new text begin misconduct new text end victim of the outcome of any campus
disciplinary proceeding concerning a sexual deleted text begin assault deleted text end new text begin misconduct new text end complaint, consistent with
laws relating to data practices;

(14) the complete and prompt assistance of campus authorities, at the direction of law
enforcement authorities, in obtaining, securing, and maintaining evidence in connection
with a sexual deleted text begin assault deleted text end new text begin misconduct new text end incident;

(15) the assistance of campus authorities new text begin , at the request of the sexual misconduct victim, new text end
in preserving deleted text begin for a sexual assault complainant or victim deleted text end materials relevant to a campus
disciplinary proceeding;

(16) during and after the process of investigating a complaint and conducting a campus
disciplinary procedure, the assistance of campus personnel, in cooperation with the
appropriate law enforcement authorities, at a sexual deleted text begin assault deleted text end new text begin misconduct new text end victim's request, in
shielding the victim from unwanted contact with the alleged assailant, including transfer of
the victim to alternative classes or to alternative college-owned housing, if alternative classes
or housing are available and feasible;

(17) forbidding retaliation, and establishing a process for investigating complaints of
retaliation, against sexual deleted text begin assault deleted text end new text begin misconduct new text end victims by campus authorities, the accused,
organizations affiliated with the accused, other students, and other employees;

(18) at the request of the victim, providing students who reported sexual deleted text begin assaults deleted text end new text begin
misconduct new text end to the institution and subsequently choose to transfer to another postsecondary
institution with information about resources for victims of sexual deleted text begin assault deleted text end new text begin misconduct new text end at the
institution to which the victim is transferring; and

(19) consistent with laws governing access to student records, providing a student who
reported an incident of sexual deleted text begin assault deleted text end new text begin misconduct new text end with access to the student's description
of the incident as it was reported to the institution, including if that student transfers to
another postsecondary institution.

new text begin (b) None of the rights given to a student by the policy required by subdivision 1 may be
made contingent upon the victim entering into a nondisclosure agreement or other contract
restricting the victim's ability to discuss information in connection with a sexual misconduct
complaint, investigation, or hearing.
new text end

new text begin (c) A nondisclosure agreement or other contract restricting the victim's ability to discuss
information in connection with a sexual misconduct complaint, investigation, or hearing
may not be used as a condition of financial aid or remedial action.
new text end

new text begin Subd. 2a. new text end

new text begin Campus investigation and disciplinary hearing procedures. new text end

new text begin (a) A
postsecondary institution must provide a reporting party an opportunity for an impartial,
timely, and thorough investigation of a report of sexual misconduct against a student. If an
investigation reveals that sexual misconduct has occurred, the institution must take prompt
and effective steps reasonably calculated to end the sexual misconduct, prevent its recurrence,
and, as appropriate, remedy its effects.
new text end

new text begin (b) Throughout any investigation or disciplinary proceeding, a postsecondary institution
must treat the reporting parties, responding parties, witnesses, and other participants in the
proceeding with dignity and respect.
new text end

new text begin (c) If a postsecondary institution conducts a hearing, an advisor may provide opening
and closing remarks on behalf of a party or assist with formulating questions to the other
party or witnesses about related evidence or credibility.
new text end

new text begin (d) In any disciplinary proceeding arising from an alleged incident of sexual misconduct
against a student, a postsecondary institution must apply a preponderance of the evidence
standard of proof.
new text end

Subd. 3.

Uniform amnesty.

The sexual deleted text begin harassment and violence deleted text end new text begin misconduct new text end policy
required by subdivision 1 must include a provision that a witness or victim of an incident
of sexual deleted text begin assault deleted text end new text begin misconduct new text end who reports the incident in good faith shall not be sanctioned
by the institution for admitting in the report to a violation of the institution's student conduct
policy on the personal use of drugs or alcohol.

Subd. 4.

Coordination with local law enforcement.

(a) A postsecondary institution
must enter into a memorandum of understanding with the primary local law enforcement
agencies that serve its campus. The memorandum must be entered into no later than January
1, 2017, and updated every two years thereafter. This memorandum shall clearly delineate
responsibilities and require information sharing, in accordance with applicable state and
federal privacy laws, about certain crimes including, but not limited to, sexual assault. This
memorandum of understanding shall provide:

(1) delineation and sharing protocols of investigative responsibilities;

(2) protocols for investigations, including standards for notification and communication
and measures to promote evidence preservation; and

(3) a method of sharing information about specific crimes, when directed by the victim,
and a method of sharing crime details anonymously in order to better protect overall campus
safety.

(b) Prior to the start of each academic year, a postsecondary institution shall distribute
an electronic copy of the memorandum of understanding to all employees on the campus
that are subject to the memorandum.

(c) An institution is exempt from the requirement that it develop a memorandum of
understanding under this section if the institution and local or county law enforcement
agencies establish a sexual deleted text begin assault deleted text end new text begin misconduct new text end protocol team to facilitate effective cooperation
and collaboration between the institution and law enforcement.

Subd. 5.

Online reporting system.

(a) A postsecondary institution must provide an
online reporting system to receive complaints of sexual deleted text begin harassment and sexual violence deleted text end new text begin
misconduct new text end from students and employees. The system must permit anonymous reports,
provided that the institution is not obligated to investigate an anonymous report unless a
formal report is submitted through the process established in the institution's sexual
deleted text begin harassment and sexual violence deleted text end new text begin misconduct new text end policy.

(b) A postsecondary institution must provide students making reports under this
subdivision with information about who will receive and have access to the reports filed,
how the information gathered through the system will be used, and contact information for
on-campus and off-campus organizations serving victims of sexual deleted text begin violence deleted text end new text begin misconduct new text end .

(c) Data collected under this subdivision is classified as private data on individuals as
defined by section 13.02, subdivision 12. Postsecondary institutions not otherwise subject
to chapter 13 must limit access to the data to only the data subject and persons whose work
assignments reasonably require access.

Subd. 6.

Data collection and reporting.

(a) Postsecondary institutions must annually
report statistics on sexual deleted text begin assault deleted text end new text begin misconduct new text end . This report must be prepared in addition to
any federally required reporting on campus security, including reports required by the Jeanne
Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, United States
Code, title 20, section 1092(f). The report must include, but not be limited to, the number
of incidents of sexual deleted text begin assault deleted text end new text begin misconduct of each offense listed under the definition in
subdivision 1a, new text end reported to the institution in the previous calendar year, as follows:

(1) the number that were investigated by the institution;

(2) the number that were referred for a disciplinary proceeding at the institution;

(3) the number the victim chose to report to local or state law enforcement;

(4) the number for which a campus disciplinary proceeding is pending, but has not
reached a final resolution;

(5) the number in which the alleged perpetrator was found responsible by the disciplinary
proceeding at the institution;

(6) the number that resulted in any action by the institution greater than a warning issued
to the accused;

(7) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution;

(8) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution because the accused withdrew from the institution;

(9) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution because the victim chose not to participate in the procedure; and

(10) the number of reports made through the online reporting system established in
subdivision 5, excluding reports submitted anonymously.

(b) If an institution previously submitted a report indicating that one or more disciplinary
proceedings was pending, but had not reached a final resolution, and one or more of those
disciplinary proceedings reached a final resolution within the previous calendar year, that
institution must submit updated totals from the previous year that reflect the outcome of
the pending case or cases.

(c) The reports required by this subdivision must be submitted to the Office of Higher
Education by October 1 of each year. Each report must contain the data required under
paragraphs (a) and (b) from the previous calendar year.

(d) The commissioner of the Office of Higher Education shall calculate statewide numbers
for each data item reported by an institution under this subdivision. The statewide numbers
must include data from postsecondary institutions that the commissioner could not publish
due to federal laws governing access to student records.

(e) The Office of Higher Education shall publish on its website:

(1) the statewide data calculated under paragraph (d); and

(2) the data items required under paragraphs (a) and (b) for each postsecondary institution
in the state.

Each postsecondary institution shall publish on the institution's website the data items
required under paragraphs (a) and (b) for that institution.

(f) Reports and data required under this subdivision must be prepared and published as
summary data, as defined in section 13.02, subdivision 19, and must be consistent with
applicable law governing access to educational data. If an institution or the Office of Higher
Education does not publish data because of applicable law, the publication must explain
why data are not included.

Subd. 7.

Access to data; audit trail.

(a) Data on incidents of sexual deleted text begin assault deleted text end new text begin misconduct new text end
shared with campus security officers or campus administrators responsible for investigating
or adjudicating complaints of sexual deleted text begin assault deleted text end new text begin misconduct new text end are classified as private data on
individuals as defined by section 13.02, subdivision 12, for the purposes of postsecondary
institutions subject to the requirements of chapter 13. Postsecondary institutions not otherwise
subject to chapter 13 must limit access to the data to only the data subject and persons whose
work assignments reasonably require access.

(b) Only individuals with explicit authorization from an institution may enter, update,
or access electronic data related to an incident of sexual deleted text begin assault deleted text end new text begin misconduct new text end collected,
created, or maintained under this section. The ability of authorized individuals to enter,
update, or access these data must be limited through the use of role-based access that
corresponds to the official duties or training level of the individual and the institutional
authorization that grants access for that purpose. All actions in which the data related to an
incident of sexual deleted text begin assault deleted text end new text begin misconduct new text end are entered, updated, accessed, shared, or disseminated
outside of the institution must be recorded in a data audit trail. An institution shall
immediately and permanently revoke the authorization of any individual determined to have
willfully entered, updated, accessed, shared, or disseminated data in violation of this
subdivision or any provision of chapter 13. If an individual is determined to have willfully
gained access to data without explicit authorization, the matter shall be forwarded to a
county attorney for prosecution.

Subd. 8.

Comprehensive training.

(a) A postsecondary institution must provide campus
security officers and campus administrators responsible for investigating or adjudicating
complaints of sexual deleted text begin assault deleted text end new text begin misconduct new text end with comprehensive training on preventing and
responding to sexual deleted text begin assault deleted text end new text begin misconduct new text end in collaboration with the Bureau of Criminal
Apprehension or another law enforcement agency with expertise in criminal sexual conduct.
The training for campus security officers shall include a presentation on the dynamics of
sexual assault, neurobiological responses to trauma, and best practices for preventing,
responding to, and investigating sexual deleted text begin assault deleted text end new text begin misconduct new text end . The training for campus
administrators responsible for investigating or adjudicating complaints on sexual deleted text begin assault deleted text end new text begin
misconduct new text end shall include presentations on preventing sexual deleted text begin assault deleted text end new text begin misconduct new text end , responding
to incidents of sexual deleted text begin assault deleted text end new text begin misconduct new text end , the dynamics of sexual assault, neurobiological
responses to trauma, and compliance with state and federal laws on sexual deleted text begin assault deleted text end new text begin misconduct new text end .

(b) The following categories of students who attend, or will attend, one or more courses
on campus or will participate in on-campus activities must be provided sexual deleted text begin assault deleted text end new text begin
misconduct new text end training:

(1) students pursuing a degree or certificate;

(2) students who are taking courses through the Postsecondary Enrollment Options Act;
and

(3) any other categories of students determined by the institution.

Students must complete such training no later than ten business days after the start of a
student's first semester of classes. Once a student completes the training, institutions must
document the student's completion of the training and provide proof of training completion
to a student at the student's request. Students enrolled at more than one institution within
the same system at the same time are only required to complete the training once.

The training shall include information about topics including but not limited to sexual
deleted text begin assault deleted text end new text begin misconduct new text end as defined in subdivision 1a; consent as defined in section 609.341,
subdivision 4; preventing and reducing the prevalence of sexual deleted text begin assault deleted text end new text begin misconduct new text end ;
procedures for reporting campus sexual deleted text begin assault deleted text end new text begin misconduct new text end ; and campus resources on sexual
deleted text begin assault deleted text end new text begin misconduct new text end , including organizations that support victims of sexual deleted text begin assault deleted text end new text begin misconduct new text end .

(c) A postsecondary institution shall annually train individuals responsible for responding
to reports of sexual deleted text begin assault deleted text end new text begin misconduct new text end . This training shall include information about best
practices for interacting with victims of sexual deleted text begin assault deleted text end new text begin misconduct new text end , including how to reduce
the emotional distress resulting from the reporting, investigatory, and disciplinary process.

new text begin (d) To the extent possible, trainings must be culturally responsive and address the unique
experiences and challenges faced by students based on race, ethnicity, color, national origin,
disability, socioeconomic status, religion, sex, gender identity, sexual orientation, and
pregnancy or parenting status.
new text end

Subd. 9.

Student health services.

(a) An institution's student health service providers
must screen students for incidents of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end .
Student health service providers shall offer students information on resources available to
victims and survivors of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end including
counseling, mental health services, and procedures for reporting incidents to the institution.

(b) Each institution offering student health or counseling services must designate an
existing staff member or existing staff members as confidential resources for victims of
sexual deleted text begin violence or sexual harassment deleted text end new text begin misconduct new text end . The confidential resource must be available
to meet with victims of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end . The confidential
resource must provide victims with information about locally available resources for victims
of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end including, but not limited to, mental
health services and legal assistance. The confidential resource must provide victims with
information about the process for reporting an incident of sexual deleted text begin violence and sexual
harassment deleted text end new text begin misconduct new text end to campus authorities or local law enforcement. The victim shall
decide whether to report an incident of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end
to campus authorities or local law enforcement. Confidential resources must be trained in
all aspects of responding to incidents of sexual deleted text begin violence and sexual harassment deleted text end new text begin misconduct new text end
including, but not limited to, best practices for interacting with victims of trauma, preserving
evidence, campus disciplinary and local legal processes, and locally available resources for
victims. Data shared with a confidential resource is classified as sexual assault
communication data as defined by section 13.822, subdivision 1.

Subd. 10.

Applicability of other laws.

This section does not exempt mandatory reporters
from the requirements of section 626.557 or chapter 260E governing the reporting of
maltreatment of minors or vulnerable adults. Nothing in this section limits the authority of
an institution to comply with other applicable state or federal laws related to investigations
or reports of sexual deleted text begin harassment, sexual violence, or sexual assault deleted text end new text begin misconduct new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2025.
new text end

ARTICLE 3

ONLINE PROGRAM MANAGEMENT COMPANY REQUIREMENTS

Section 1.

new text begin [135A.195] REQUIREMENTS RELATED TO ONLINE PROGRAM
MANAGEMENT COMPANIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Contract" means an agreement entered into by an institution of higher education
with an online program management company. Contract includes any amendment or
addendum to the agreement.
new text end

new text begin (c) "Institution of higher education" means an institution governed by the Board of
Trustees of the Minnesota State Colleges and Universities and the Board of Regents of the
University of Minnesota. The Board of Regents of the University of Minnesota is requested
to comply with this section.
new text end

new text begin (d) "Managed programs" means an online course or program that is fully delivered online
in a virtual space.
new text end

new text begin (e) "Online program management company" means a private for-profit third-party entity
that enters into a contract with an institution of higher education to provide bundled products
and services to develop, deliver, or provide managed programs, when the services provided
include recruitment and marketing.
new text end

new text begin (f) "Tuition sharing" means compensation or payment to an online program management
company based on a percentage of revenue or fees collected from managed programs.
new text end

new text begin Subd. 2. new text end

new text begin Contract stipulations. new text end

new text begin (a) A contract must not contain any provision that:
new text end

new text begin (1) includes tuition sharing;
new text end

new text begin (2) grants the online program management company ownership rights to any or all
intellectual property rights, patentable discoveries, or inventions of faculty members of an
institution of higher education; or
new text end

new text begin (3) grants the online program management company decision making authority over:
new text end

new text begin (i) curriculum development, design, or maintenance;
new text end

new text begin (ii) student assessment and grading;
new text end

new text begin (iii) course assessment;
new text end

new text begin (iv) admissions requirements;
new text end

new text begin (v) appointment of faculty;
new text end

new text begin (vi) faculty assessment;
new text end

new text begin (vii) decision to award course credit or credential; or
new text end

new text begin (viii) institutional governance.
new text end

new text begin (b) A contract between an institution of higher education and an online program
management company must contain a provision that the online program management
company must provide its audited financial statements and the data required under subdivision
4, paragraph (b), to the chief financial officer of the institution of higher education with
which it has a contract for use in the reporting requirements in subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Mandatory contract review and approval. new text end

new text begin Prior to being executed, a contract
must be reviewed and approved by the institution of higher education's governing board.
The Board of Regents of the University of Minnesota is requested to comply with this
section. The review must include an analysis of the contract's compliance with subdivision
2 prior to approval.
new text end

new text begin Subd. 4. new text end

new text begin Reporting requirements. new text end

new text begin (a) Each institution of higher education that contracts
with an online program management company shall require the independent public accountant
or certified public accountant as part of the institution's annual compliance and financial
audit, to provide information to determine if the online program management company was
in material compliance with the terms of the contract in the prior fiscal year. Each institution
of higher education shall submit an annual expenditure report and the annual compliance
and financial audit report to the commissioner of management and budget and to the chairs
and ranking minority members of the committees in the senate and house of representatives
with jurisdiction over higher education finance for review. At a minimum, the annual
expenditure report shall include:
new text end

new text begin (1) the information provided by the online program management company under
paragraph (b);
new text end

new text begin (2) the total payments made by the institution to the online program management company
during each semester of the prior academic year;
new text end

new text begin (3) the number of students who received state financial assistance during the prior
academic year and were enrolled in each academic program for which the online program
management company provided services; and
new text end

new text begin (4) whether the online program management company was in material compliance with
the terms of the contract.
new text end

new text begin (b) An online program management company that enters into a contract with an institution
of higher education shall submit an annual report to the institution's chief financial officer
detailing all expenditures made on behalf of the institution during the prior academic year.
In addition to any other information required by the commissioner, the annual report shall
specify the amounts expended by the online program management company on each of the
following categories of expenditure:
new text end

new text begin (1) advertising, recruitment, and marketing services;
new text end

new text begin (2) admissions and financial services;
new text end

new text begin (3) instruction services;
new text end

new text begin (4) student support services;
new text end

new text begin (5) technology resources and support services; and
new text end

new text begin (6) curriculum development materials.
new text end

new text begin (c) Any information filed with the commissioner under this section may be disclosed in
accordance with chapter 13, except that confidential information shall not be disclosed.
new text end

new text begin Subd. 5. new text end

new text begin Marketing requirements. new text end

new text begin (a) An institution of higher education that retains
an online program management company to provide marketing services for its academic
degree programs shall require that:
new text end

new text begin (1) the online program management company self-identifies as a third-party entity that
is separate from the institution at the beginning of any communication with a prospective
student; and
new text end

new text begin (2) any digital or print advertising provided by the online program management company
for an academic program of the institution includes a clear disclosure of the third-party
relationship between the online program management company and the institution.
new text end

new text begin (b) An institution of higher education that contracts with an online program management
company shall make publicly available on its website a list of the online programs that are
supported by the online program management company.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024, and applies to contracts
entered into on or after that date.
new text end

ARTICLE 4

STUDENT PROTECTIONS

Section 1.

Minnesota Statutes 2022, section 136A.645, is amended to read:

136A.645 SCHOOL CLOSURE.

(a) When a school intends to cease postsecondary education operations, announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its registration status or ability to meet criteria for approval under section 136A.65, the
school must provide the office:

(1) a notice of closure, including the name of the school, the name of the school owner,
an active mailing address and telephone number that the school owner may be reached at
after the school physically closes, the name of the school director, and the planned date for
termination of postsecondary operations;

(2) a report of all students currently enrolled and all students enrolled within the prior
120 days, including the following information for each student: name, address, school email
address, alternate email address, program of study, number of credits completed, number
of credits remaining, and enrollment status at closure;

(3) a report of refunds due to any student and the amount due;

(4) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students has
ceased;

(5) a copy of any communication between the school's accreditors about the school
closure;

(6) confirmation that the requirements for student records under section 136A.68 have
been satisfied, including:

(i) the planned date for the transfer of the student records;

(ii) confirmation of the name and address of the organization to receive and hold the
student records; and

(iii) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request;

(7) academic information, including the school's most recent catalog, all course syllabi,
and faculty credential information; and

(8) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must (i) provide comparable education and training and (ii) agree that students transferring
from the closing school pay only what the cost of tuition and fees remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school.

new text begin (b) When a school intends to cease or announce the closure of a degree or nondegree
program, or is informed by the office that the office anticipates the program's closure due
to the program's registration status or its ability to meet criteria for approval under section
136A.65, or when the program loses eligibility in federal financial aid under title IV of the
Higher Education Act of 1965, Public Law 89-329, as amended, the school must provide
to the office:
new text end

new text begin (1) a notice of closure, including the name of the degree or nondegree program, the name
and contact information of the program chair, and the planned date for termination of the
degree or nondegree program;
new text end

new text begin (2) a report of all students currently enrolled and all students enrolled within the prior
120 days in the degree or nondegree program, including the following information for each
student: name, address, school email address, alternate email address, program of study,
number of credits completed, number of credits remaining, and enrollment status at closure
of the program if the program is terminated due to loss of eligibility in the federal Pell Grant
program;
new text end

new text begin (3) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students in the
degree or nondegree program has ceased;
new text end

new text begin (4) academic information, including the degree or nondegree program's most recent
catalog, all course syllabi, and faculty credential information; and
new text end

new text begin (5) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must: (i) provide comparable education and training; and (ii) agree that students transferring
from the closing school pay only the cost of tuition and fees that remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school if the program is terminated due to loss of eligibility in the federal
Pell Grant program.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Without limitation as to other circumstance, a school shall be deemed to have
ceased operations when the school:

(1) has an unscheduled nonemergency closure or cancellation of classes for more than
24 hours without prior notice to the office;

(2) announces it is closed or closing;

(3) files for bankruptcy; or

(4) fails to complete a renewal application when required under section 136A.63,
subdivision 2.

deleted text begin (c) deleted text end new text begin (d) new text end When a school is deemed to have ceased operations, the office shall provide the
school a reasonable time to correct student records and grant credentials. After that time,
the office must revoke the school's registration. This revocation is not appealable under
section 136A.65, subdivision 8.

Sec. 2.

Minnesota Statutes 2022, section 136A.65, subdivision 4, is amended to read:

Subd. 4.

Criteria for approval.

(a) A school applying to be registered and to have its
degree or degrees and name approved must substantially meet the following criteria:

(1) the school has an organizational framework with administrative and teaching personnel
to provide the educational programs offered;

(2) the school has financial resources sufficient to meet the school's financial obligations,
including refunding tuition and other charges consistent with its stated policy if the institution
is dissolved, or if claims for refunds are made, to provide service to the students as promised,
and to provide educational programs leading to degrees as offered;

(3) the school operates in conformity with generally accepted accounting principles
according to the type of school;

(4) the school provides an educational program leading to the degree it offers;

(5) the school provides appropriate and accessible library, laboratory, and other physical
facilities to support the educational program offered;

(6) the school has a policy on freedom or limitation of expression and inquiry for faculty
and students which is published or available on request;

(7) the school uses only publications and advertisements which are truthful and do not
give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school,
its personnel, programs, services, or occupational opportunities for its graduates for promotion
and student recruitment;

(8) the school's compensated recruiting agents who are operating in Minnesota identify
themselves as agents of the school when talking to or corresponding with students and
prospective students;

(9) the school provides information to students and prospective students concerning:

(i) comprehensive and accurate policies relating to student admission, evaluation,
suspension, and dismissal;

(ii) clear and accurate policies relating to granting credit for prior education, training,
and experience and for courses offered by the school;

(iii) current schedules of fees, charges for tuition, required supplies, student activities,
housing, and all other standard charges;

(iv) policies regarding refunds and adjustments for withdrawal or modification of
enrollment status; and

(v) procedures and standards used for selection of recipients and the terms of payment
and repayment for any financial aid program;

(10) the school must not withhold a student's official transcript because the student is
in arrears or in default on any loan issued by the school to the student if the loan qualifies
as an institutional loan under United States Code, title 11, section 523(a)(8)(b); deleted text begin and
deleted text end

(11) the school has a process to receive and act on student complaints new text begin ; and
new text end

new text begin (12) the school must not use nondisclosure agreements or other contracts restricting a
student's ability to disclose information in connection with school actions or conduct that
would be covered under section 136A.672 new text end .

(b) An application for degree approval must also include:

(i) title of degree and formal recognition awarded;

(ii) location where such degree will be offered;

(iii) proposed implementation date of the degree;

(iv) admissions requirements for the degree;

(v) length of the degree;

(vi) projected enrollment for a period of five years;

(vii) the curriculum required for the degree, including course syllabi or outlines;

(viii) statement of academic and administrative mechanisms planned for monitoring the
quality of the proposed degree;

(ix) statement of satisfaction of professional licensure criteria, if applicable;

(x) documentation of the availability of clinical, internship, externship, or practicum
sites, if applicable; and

(xi) statement of how the degree fulfills the institution's mission and goals, complements
existing degrees, and contributes to the school's viability.

Sec. 3.

Minnesota Statutes 2022, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration; appeal.

(a) By giving written notice and reasons
to the school, the office may:

(1) revoke, suspend, or refuse to renew new text begin school new text end registration;

(2) new text begin revoke, suspend, or new text end refuse approval of a school's degree new text begin or nondegree program new text end ; and

(3) new text begin revoke, suspend, or new text end refuse approval of the use of a regulated term in its name.

(b) Reasons for revocation or suspension of registration or approval may be for one or
more of the following reasons:

(1) violating the provisions of sections 136A.61 to 136A.71;

(2) providing false, misleading, or incomplete information to the office;

(3) presenting information about the school which is false, fraudulent, misleading,
deceptive, or inaccurate in a material respect to students or prospective students;

(4) refusing to allow reasonable inspection or to supply reasonable information after a
written request by the office has been received;

(5) failing to have enrollment within the last two years at the school; new text begin or
new text end

(6) deleted text begin failing to have any enrollment within two years of a program's approval, except for
programs that require extensive approval processes by the United States Department of
Education, or the program's institutional or programmatic accreditor; or
deleted text end

deleted text begin (7) deleted text end having been administratively determined by the commissioner or judicially determined
to have committed fraud or any other material violation of law involving federal, state, or
local government funds.

new text begin (c) Reasons for revocation or suspension of registration or approval under paragraph
(a), clause (2), may be for one or more of the following reasons:
new text end

new text begin (1) the degree or nondegree program does not meet the provisions of sections 136A.61
to 136A.71;
new text end

new text begin (2) providing false, misleading, or incomplete information to the office about the degree
or nondegree program;
new text end

new text begin (3) presenting information about the degree or nondegree program that is false, fraudulent,
misleading, deceptive, or inaccurate in a material respect to students or prospective students;
new text end

new text begin (4) refusing to allow reasonable inspection or to supply reasonable information about
the degree or nondegree program after a written request by the office has been received;
new text end

new text begin (5) failing to have any enrollment within two years of a program's approval, except for
programs that require extensive approval processes by the United States Department of
Education, or the program's institutional or programmatic accreditor; or
new text end

new text begin (6) the program loses eligibility in federal financial aid under title IV of the Higher
Education Act of 1965, Public Law 89-329, as amended.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end Any order refusing, revoking, or suspending a school's registration, approval of
a school's degree, or use of a regulated term in the school's name is appealable in accordance
with chapter 14. The request must be in writing and made to the office within 30 days of
the date the school is notified of the action of the office. If a school has been operating and
its registration has been revoked, suspended, or refused by the office, the order is not effective
until the final determination of the appeal, unless immediate effect is ordered by the court.

Sec. 4.

Minnesota Statutes 2022, section 136A.675, subdivision 2, is amended to read:

Subd. 2.

Additional reporting.

(a) In addition to the information required for the
indicators in subdivision 1, an institution must notify the office within ten business days if
any of the events in paragraphs (b) to (e) occur.

(b) Related to revenue, debt, and cash flow, notice is required if:

(1) the institution defaulted on a debt payment or covenant and has not received a waiver
of the violation from the financial institution within 60 days;

(2) for institutions with a federal composite score of less than 1.5, the institution's owner
withdraws equity that directly results in a composite score of less than 1.0, unless the
withdrawal is a transfer between affiliated entities included in a common composite score;

(3) the United States Department of Education requires a 25 percent or greater Letter of
Credit, except when the Letter of Credit is imposed due to a change of ownership;

(4) the United States Department of Education requires Heightened Cash Monitoring 2;

(5) the institution receives written notification that it violated the United States
Department of Education's revenue requirement under United States Code, title 20, section
1094(a)(24), as amended; deleted text begin or
deleted text end

(6) the institution receives written notification by the United States Department of
Education that it has fallen below minimum financial standards and that its continued
participation in Title IV is conditioned upon satisfying either the Zone Alternative, Code
of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c) deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) the institution receives written notification by the United States Department of
Education that one or more of its programs have lost eligibility in federal financial aid under
title IV of the Higher Education Act of 1965, Public Law 89-329, as amended, for failing
to satisfy federal Financial Value Transparency and Gainful Employment requirements
under Code of Federal Regulations, title 34, parts 600 and 668.
new text end

(c) Related to accreditation and licensing, notice is required if:

(1) the institution receives written notification of probation, warning, show-cause, or
loss of institutional accreditation;

(2) the institution receives written notification that its institutional accreditor lost federal
recognition; or

(3) the institution receives written notification that it has materially violated state
authorization or institution licensing requirements in a different state that may lead to or
has led to the termination of the institution's ability to continue to provide educational
programs or otherwise continue to operate in that state.

(d) Related to securities, notice is required if:

(1) the Securities and Exchange Commission (i) issues an order suspending or revoking
the registration of the institution's securities, or (ii) suspends trading of the institution's
securities on any national securities exchange;

(2) the national securities exchange on which the institution's securities are traded notifies
the institution that it is not in compliance with the exchange's listing requirements and the
institution's securities are delisted; or

(3) the Securities and Exchange Commission is not in timely receipt of a required report
and did not issue an extension to file the report.

(e) Related to criminal and civil investigations, notice is required if:

(1) the institution receives written notification of a felony criminal indictment or charges
of the institution's owner;

(2) the institution receives written notification of criminal indictment or charges of the
institution's officers related to operations of the institution; or

(3) there has been a criminal, civil, or administrative adjudication of fraud or
misrepresentation in Minnesota or in another state or jurisdiction against the institution or
its owner, officers, agents, or sponsoring organization.

Sec. 5.

Minnesota Statutes 2022, section 136A.828, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin Nondisclosure agreements. new text end

new text begin No private career school shall use nondisclosure
agreements or other contracts restricting a student's ability to disclose information in
connection with school actions or conduct that would be covered under section 136A.8295.
new text end

APPENDIX

Repealed Minnesota Statutes: S4003-1

135A.16 POLICY FOR STUDENTS WITH DISABILITIES.

Subdivision 1.

Development.

Each public postsecondary governing board shall have a policy to provide for the needs of enrolled or admitted students on its campuses who have disabilities under section 504 of the Rehabilitation Act of 1973, Public Law 93-112. Governing boards of private postsecondary institutions are requested to develop similar policies.

Subd. 2.

Content.

Each policy shall include a list of services each campus must make available to any student who, through a recent assessment, can document a disability. The following three services must be included in the policy:

(1) support, counseling, and information that may include support groups, individual counseling, career counseling and assessment, and referral services;

(2) academic assistance services that may include early registration services, early syllabus availability, course selection and program advising, coursework and testing assistance and modification, and tutoring; and

(3) advocacy services that may include a designated ombudsman serving as the primary contact and coordinator for students needing services, assistance in working individually with faculty and administrators, intervention procedures, and grievance procedures.

Subd. 3.

Availability.

The policy and related information must be readily available to enrolled students and applicants for admission. At a minimum, information on services, including a contact person and location, must be included in the campus catalog and in the schedule of course offerings each term.

135A.162 INCLUSIVE HIGHER EDUCATION GRANTS.

Subd. 7.

Reporting.

The director must evaluate the development and implementation of the Minnesota inclusive higher education initiatives receiving a grant under this section. The director must submit an annual report by October 1 on the progress to expand Minnesota inclusive higher education options for students with intellectual disabilities to the commissioner and chairs and ranking minority members of the legislative committees with jurisdiction over higher education policy and finance. The report must include statutory and budget recommendations.