SF 696

as introduced - 89th Legislature (2015 - 2016) Posted on 02/10/2015 09:12am

A bill for an act
relating to higher education; establishing certain duties for private for-profit
postsecondary schools; requiring certain disclosures; proposing coding for new
law as Minnesota Statutes, chapter 141A.

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

Section 1.

new text begin [141A.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Words; terms; phrases. new text end

new text begin The following words, terms, and phrases
have the meanings given them for purposes of sections 141A.01 to 141A.05.
new text end

new text begin Subd. 2. new text end

new text begin Admissions visit. new text end

new text begin "Admissions visit" means any in-person meeting,
or if an in-person meeting does not occur, a telephone conversation or real-time
online communication, between a student and a representative of a private for-profit
postsecondary school's admissions department during which the representative presents
information and answers questions about the school and the student is given an opportunity
to apply for or enroll in one of the school's programs.
new text end

new text begin Subd. 3. new text end

new text begin Employment in the field of study. new text end

new text begin "Employment in the field of study"
means a job specified in the name, or directly related to the subject, of the student's program,
but does not include a job for which training in the program is not required or necessary
to adequately perform the job. Part-time employment, temporary positions, employment
lasting less than three months, and unpaid positions shall not be considered employment in
the field of study. The school bears the burden of showing that a job is employment in the
field of study. For purposes of this subdivision, part-time employment means a position
that regularly requires an employee to work no more than 32 hours per week.
new text end

new text begin Subd. 4. new text end

new text begin Expected graduation time. new text end

new text begin "Expected graduation time" means the length
of time a full-time student will take to graduate if the student successfully completes
all program requirements.
new text end

new text begin Subd. 5. new text end

new text begin Graduate. new text end

new text begin "Graduate" means a student who has satisfied all academic and
nonacademic requirements for graduation from a program and is eligible to receive or has
received the appropriate certificate or degree.
new text end

new text begin Subd. 6. new text end

new text begin Graduating program class. new text end

new text begin "Graduating program class" means all
program classes that have been taught for the expected graduation time.
new text end

new text begin Subd. 7. new text end

new text begin Private for-profit postsecondary school or school. new text end

new text begin "Private for-profit
postsecondary school" or "school" means any person, whether located in Minnesota or
in any other state or country, who conducts, holds itself out as conducting, or offers to
conduct any program at the certificate, associate, baccalaureate, or graduate level to a
student for which a fee or tuition is charged whether conducted in person, by mail,
online through the Internet, or by any other method. The definition of "private for-profit
postsecondary school" shall not include the following:
new text end

new text begin (1) public and private nonprofit postsecondary institutions;
new text end

new text begin (2) schools, classes, courses, or programs listed in section 141.35, clauses (4) to
(6), (8) to (13), (15), and (16);
new text end

new text begin (3) schools engaged exclusively in the teaching of purely vocational, recreational, or
remedial subjects as determined by the Minnesota Office of Higher Education;
new text end

new text begin (4) classes, courses, or programs providing 16 or fewer clock hours of instruction
that are not part of the curriculum for an occupation or entry-level employment; and
new text end

new text begin (5) religious schools to the same extent that they are exempt pursuant to section
141.37.
new text end

new text begin Subd. 8. new text end

new text begin Program. new text end

new text begin "Program" means any training or education that is advertised or
listed in a school's catalog, brochures, Web site, or other publications for which the school
grants a certificate or degree upon successful completion.
new text end

new text begin Subd. 9. new text end

new text begin Program class. new text end

new text begin "Program class" means the group of students who enrolled
in and began taking courses in a particular program during the same enrollment term.
new text end

new text begin Subd. 10. new text end

new text begin Program graduate job placement rate. new text end

new text begin "Program graduate job
placement rate" means the number of program graduates during a calendar year for whom
the school has verified employment in the field of study divided by the total number of
program graduates during the same calendar year.
new text end

new text begin Subd. 11. new text end

new text begin Program graduation rate. new text end

new text begin "Program graduation rate" means the number
of students in a graduating program class who graduated within the expected graduation
time, divided by the total number of students in the program class.
new text end

new text begin Subd. 12. new text end

new text begin Program withdrawal rate. new text end

new text begin "Program withdrawal rate" means the number
of students in a graduating program class who withdrew from the program within one year
of enrollment, divided by the total number of students in a graduating program class.
new text end

new text begin Subd. 13. new text end

new text begin School graduate job placement rate. new text end

new text begin "School graduate job placement
rate" means the number of school graduates during a calendar year for whom the school
has verified employment in the field of study, divided by the total number of school
graduates during the same calendar year.
new text end

new text begin Subd. 14. new text end

new text begin Student. new text end

new text begin "Student" means any individual physically located in the state
of Minnesota who inquires about, applies for, or enrolls in any program at the certificate,
associate, baccalaureate, or graduate level for which a fee or tuition is charged whether
conducted in person, by mail, through the Internet, or by any other method.
new text end

Sec. 2.

new text begin [141A.02] AFFIRMATIVE DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Compliance. new text end

new text begin A private for-profit postsecondary school shall comply
with this section.
new text end

new text begin Subd. 2. new text end

new text begin Duty to act in the student's best interest. new text end

new text begin A private for-profit
postsecondary school shall at all times act in a student's best interest and in the utmost
good faith toward a student.
new text end

new text begin Subd. 3. new text end

new text begin Duty to determine suitability. new text end

new text begin In recommending to a student any program
offered or conducted by a private for-profit postsecondary school, the school must have
reasonable grounds to believe that the recommendation is suitable for that particular
student and must make reasonable inquires to determine suitability. The suitability of a
recommended program will be determined by reference to the totality of the particular
student's circumstances including, but not limited to:
new text end

new text begin (1) the likelihood the student will qualify for and obtain employment in the field of
study for which the program is designed including, but not limited to, consideration of the
program's accreditation or approval by trade or professional organizations; and
new text end

new text begin (2) the likelihood that the salary or income from employment in the field of study
for which the program is designed will be sufficient for the student to successfully meet
student loan obligations, if any, incurred in order to pay for the program.
new text end

new text begin Subd. 4. new text end

new text begin Preparation and availability of graduation, withdrawal, and job
placement rate disclosures. new text end

new text begin Within 180 days from the end of each calendar year, the
school must prepare and make available to students program graduate job placement rates,
program graduation rates, program withdrawal rates, and school graduate job placement
rates.
new text end

Sec. 3.

new text begin [141A.03] TRANSFERABILITY OF CREDIT AND PROGRAMMATIC
ACCREDITATION DISCLOSURES.
new text end

new text begin Subdivision 1. new text end

new text begin Transferability of credit disclosure for a nationally accredited
school. new text end

new text begin During a student's first admissions visit and immediately before the time of
enrollment, a nationally accredited school shall clearly and conspicuously provide the
following disclosure to students both orally and in a free-standing document using at
least 16-point font:
new text end

new text begin "The credits or degree you earn at [Name of School] are unlikely to transfer to
community colleges, state colleges, or nonprofit universities."
new text end

new text begin Subd. 2. new text end

new text begin Transferability of credit disclosure for a regionally accredited school.
new text end

new text begin During a student's first admissions visit and immediately before the time of enrollment,
a regionally accredited school shall clearly and conspicuously provide the following
disclosure to students both orally and in a free-standing document using at least 16-point
font:
new text end

new text begin "The credits or degree you earn at [Name of School] may not transfer to other
colleges or universities.
new text end

new text begin The only colleges and universities that [Name of School] guarantees will accept all
of [Name of School]'s credits and degrees are as follows:
new text end

new text begin [List of all colleges and universities that the School guarantees will accept all credits
and degrees from the School]"
new text end

new text begin Subd. 3. new text end

new text begin Programmatic accreditation disclosure. new text end

new text begin During a student's first
admissions visit and immediately before the time of enrollment, the school shall clearly
and conspicuously disclose to the student, both orally and in a free-standing document
using at least 16-point font, whether or not the program is accredited. If the program is not
accredited, the school must clearly and conspicuously disclose to the student, both orally
and in a free-standing document using at least 16-point font, the effect, if any, the lack of
programmatic accreditation may have on the ability of the student to obtain mandatory
licensures, voluntary certifications, sit for relevant licensure or certification examinations,
or obtain employment in the field of study for which the program was designed. A school
is not required to make this disclosure for programs for which programmatic accreditation
is not available.
new text end

Sec. 4.

new text begin [141A.04] GRADUATION, WITHDRAWAL, AND GRADUATE JOB
PLACEMENT RATE DISCLOSURES.
new text end

new text begin Subdivision 1. new text end

new text begin Graduation and withdrawal rate disclosures. new text end

new text begin During a student's
first admissions visit and immediately before the time of enrollment, the school shall
clearly and conspicuously provide the following disclosures to students both orally and
in a free-standing document using at least 16-point font:
new text end

new text begin "PROGRAM GRADUATION RATE - The expected time for a full-time Student to
graduate from the [Name of Program] Program is [Expected graduation time]. [ new text begin Program
graduation rate new text end ] percent of Students who enrolled in the [Name of Program] Program
in [enrollment year of the most recent Graduating program class] graduated within the
expected time. [ new text begin Program graduation rate new text end ] percent of full-time Students who enrolled in
the [Name of Program] Program in [enrollment year of the second most recent Graduating
program class] graduated within the expected time.
new text end

new text begin PROGRAM WITHDRAWAL RATE - [ new text begin Program withdrawal rate new text end ] percent of
full-time Students who enrolled in the [Name of Program] Program in [enrollment year of
the most recent Graduating program class] withdrew from the Program within one year of
enrollment. [ new text begin Program withdrawal rate new text end ] percent of full-time Students who enrolled in the
[Name of Program] Program in [enrollment year of the second most recent Graduating
program class] withdrew from the Program within one year of enrollment."
new text end

new text begin Subd. 2. new text end

new text begin Graduate job placement rate disclosures. new text end

new text begin During a student's first
admissions visit and immediately before the time of enrollment, the school shall clearly
and conspicuously provide the following disclosure both orally and in a free-standing
document using at least 16-point font:
new text end

new text begin "SCHOOL GRADUATE JOB PLACEMENT RATE. In [last calendar year],
[number of School Graduates] graduated from [Name of School] and [ new text begin School graduate
job placement rate new text end ] percent of those Graduates obtained employment in their field of
study. In [second to last calendar year], [number of School Graduates] graduated from
[Name of School] and [ new text begin School graduate job placement rate new text end ] percent of those Graduates
obtained employment in their field of study.
new text end

new text begin PROGRAM GRADUATE JOB PLACEMENT RATE. In [last calendar year],
[number of Program Graduates] graduated from [Name of Program] and [ new text begin Program
graduate job placement rate new text end ] percent of those Graduates obtained employment in their
field of study. In [second to last calendar year], [number of Program Graduates] graduated
from [Name of Program] and [ new text begin Program graduate job placement rate new text end ] percent of those
Graduates obtained employment in their field of study."
new text end

Sec. 5.

new text begin [141A.05] VIOLATIONS.
new text end

new text begin A violation of sections 141A.01 to 141A.04 shall be considered a violation for
purposes of section 8.31.
new text end