HF 2054

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 03/12/2020 04:00pm

A bill for an act
relating to higher education; modifying certain institutional approval provisions;
amending Minnesota Statutes 2018, sections 136A.65, subdivisions 4, 7, 8;
136A.657, subdivisions 1, 2, 3; 136A.822, subdivision 8; 136A.827, subdivision
4; 136A.829, subdivision 1; 136A.833, subdivision 1; 136A.834, subdivisions 1,
2.

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

Section 1.

Minnesota Statutes 2018, 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; deleted text begin and
deleted text end

(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 . deleted text end new text begin ; and
new text end

new text begin (11) the school must not require mandatory predispute arbitration clauses with students.
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. 2.

Minnesota Statutes 2018, section 136A.65, subdivision 7, is amended to read:

Subd. 7.

Conditional approval.

(a) The office may grant a school a one-year conditional
approval for a degree or use of a term in its name if doing so would be in the best interests
of currently enrolled students or prospective students. Conditional approval of a degree or
use of a term under this paragraph must not exceed a period of three years.

(b) The office may grant new schools new text begin physically located in Minnesota new text end and new text begin new new text end programs
a one-year conditional approval for degrees or use of a term in its name to allow the school
the opportunity to apply for and receive accreditation as required in subdivision 1a.
Conditional approval of a school or program under this paragraph must not exceed a period
of five years. A new school or program granted conditional approval may be allowed to
continue in order to complete an accreditation process upon terms and conditions the office
determines.

(c) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school the opportunity to apply for and receive
accreditation as required in subdivision 1a if the school's accrediting agency is no longer
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

(d) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school to change to a different accrediting agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

Sec. 3.

Minnesota Statutes 2018, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration appeal.

(a) new text begin By giving written notice and reasons
to the school, new text end the office may deleted text begin refuse to renew, deleted text end new text begin :
new text end

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

new text begin (2) refuse new text end approval of a school's degree deleted text begin , or deleted text end new text begin ; and
new text end

new text begin (3) refuse approval of new text end use of a regulated term in its name deleted text begin by giving written notice and
reasons to the school deleted text end .

(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; deleted text begin or
deleted text end

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

new text begin (5) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
untrustworthiness, or financial irresponsibility, in the conduct of business in this state or
elsewhere; or
new text end

new text begin (6) having been administratively or judicially determined to have committed fraud or
any other material violation of law involving federal, state, or local government funds.
new text end

(c) 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 2018, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

deleted text begin Any deleted text end new text begin (a) A program is exempt from the provisions of sections
136A.61 to 136A.71 if it is:
new text end

new text begin (1) offered by a new text end school or any department or branch of a school deleted text begin (a) which deleted text end new text begin that new text end is
substantially owned, operated new text begin , new text end or supported by a bona fide church or religious organization;
deleted text begin (b) whose programs are
deleted text end

new text begin (2) new text end primarily designed for, aimed at and attended by persons who sincerely hold or seek
to learn the particular religious faith or beliefs of that church or religious organization; and
deleted text begin (c) whose programs are
deleted text end

new text begin (3) new text end primarily intended to prepare its students to become ministers of, to enter into some
other vocation closely related to, or to conduct their lives in consonance with, the particular
faith of that church or religious organization deleted text begin , is exempt from the provisions of sections
136A.61 to 136A.834 deleted text end .

new text begin (b) A school or a department or branch of a school is exempt from the provisions of
sections 136A.61 to 136A.71 if all of its programs are exempt under paragraph (a).
new text end

Sec. 5.

Minnesota Statutes 2018, section 136A.657, subdivision 2, is amended to read:

Subd. 2.

Limitation.

new text begin (a) new text end This exemption shall not extend to any new text begin program or new text end school or
to any department or branch of a school deleted text begin which deleted text end new text begin that new text end through advertisements or solicitations
represents to any students or prospective students that the school, its aims, goals, missions
or purposes or its programs are different from those described in subdivision 1.

new text begin (b) new text end This exemption shall not extend to any school deleted text begin which deleted text end new text begin that new text end represents to any student
or prospective student that the major purpose of its programs is to new text begin :
new text end

new text begin (1) new text end prepare the student for a vocation not closely related to that particular religious faith deleted text begin , deleted text end new text begin ; new text end
or deleted text begin to
deleted text end

new text begin (2) new text end provide the student with a general educational program recognized by other schools
or the broader educational, business or social community as being substantially equivalent
to the educational programs offered by schools or departments or branches of schools deleted text begin which deleted text end new text begin
that new text end are not exempt from sections 136A.61 to 136A.71, and rules adopted pursuant thereto.

Sec. 6.

Minnesota Statutes 2018, section 136A.657, subdivision 3, is amended to read:

Subd. 3.

Scope.

Nothing in sections 136A.61 to deleted text begin 136A.834 deleted text end new text begin 136A.71 new text end , or the rules adopted
pursuant thereto, shall be interpreted as permitting the office to determine the truth or falsity
of any particular set of religious beliefs.

Sec. 7.

Minnesota Statutes 2018, 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 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) that the school must not require mandatory predispute arbitration clauses with
students.
new text end

Sec. 8.

Minnesota Statutes 2018, section 136A.827, subdivision 4, is amended to read:

Subd. 4.

Proration.

When a student has been accepted by a private career school and
gives deleted text begin written deleted text end notice of cancellation after the program of instruction has begun, but before
completion of 75 percent of the program, the amount charged for tuition, fees and all other
charges shall be prorated based on the number of days in the term as a portion of the total
charges for tuition, fees and all other charges. An additional 25 percent of the total cost of
the program may be added but shall not exceed $100. After completion of 75 percent of the
program, no refunds are required.

Sec. 9.

Minnesota Statutes 2018, section 136A.829, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The office may, after notice and upon providing an opportunity
for a hearing, under chapter 14 if requested by the parties adversely affected, refuse to issue,
refuse to renew, revoke, or suspend a license or solicitor's permit for any of the following
grounds:

(1) violation of any provisions of sections 136A.821 to 136A.833 or any rule adopted
by the office;

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

(3) presenting to prospective students information relating to the private career school
that is false, fraudulent, deceptive, substantially inaccurate, or misleading;

(4) refusal to allow reasonable inspection or supply reasonable information after written
request by the office;

new text begin (5) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
untrustworthiness, or financial irresponsibility, in the conduct of business in this state or
elsewhere;
new text end

new text begin (6) having been administratively or judicially determined to have committed fraud or
any other material violation of law involving federal, state, or local government funds; or
new text end

deleted text begin (5) deleted text end new text begin (7) new text end the existence of any circumstance that would be grounds for the refusal of an
initial or renewal license under section 136A.822.

Sec. 10.

Minnesota Statutes 2018, section 136A.833, subdivision 1, is amended to read:

Subdivision 1.

Application for exemptions.

A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 new text begin for the school and all of its programs or some
of its programs new text end must apply to the office to establish that the school meets the requirements
of an exemption. An exemption expires two years from the date of approval or when a
school adds a new program or makes a modification equal to or greater than 25 percent to
an existing educational program. If a school is reapplying for an exemption, the application
must be submitted to the office 90 days before the current exemption expires.

Sec. 11.

Minnesota Statutes 2018, section 136A.834, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

deleted text begin Any deleted text end new text begin (a) A program is exempt from the provisions of sections
136A.821 to 136A.832 if it is:
new text end

new text begin (1) offered by a new text end private career school or any department or branch of a private career
school deleted text begin :
deleted text end

deleted text begin (1) which deleted text end new text begin that new text end is substantially owned, operated, or supported by a bona fide church or
religious organization;

(2) deleted text begin whose programs are deleted text end primarily designed for, aimed at, and attended by persons who
sincerely hold or seek to learn the particular religious faith or beliefs of that church or
religious organization; and

(3) deleted text begin whose programs are deleted text end primarily intended to prepare its students to become ministers
of, to enter into some other vocation closely related to, or to conduct their lives in consonance
with the particular faith of that church or religious organization deleted text begin , deleted text end new text begin .
new text end

deleted text begin is exempt from the provisions of sections 136A.821 to 136A.832.
deleted text end

new text begin (b) Any private career school or any department or branch of a private career school is
exempt from the provisions of sections 136A.821 to 136A.832 if all of its programs are
exempt under paragraph (a).
new text end

Sec. 12.

Minnesota Statutes 2018, section 136A.834, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) An exemption shall not extend to any private career school,
department or branch of a private career school, or program of a private career school deleted text begin which deleted text end new text begin
that new text end through advertisements or solicitations represents to any students or prospective students
that the school, its aims, goals, missions, purposes, or programs are different from those
described in subdivision 1.

(b) An exemption shall not extend to any private career school deleted text begin which deleted text end new text begin or program that new text end
represents to any student or prospective student that the major purpose of its programs is
to:

(1) prepare the student for a vocation not closely related to that particular religious faith;
or

(2) provide the student with a general educational program recognized by other private
career schools or the broader educational, business, or social community as being
substantially equivalent to the educational programs offered by private career schools or
departments or branches of private career schools which are not religious in nature and are
not exempt from sections 136A.82 to 136A.834 and from rules adopted under sections
136A.82 to 136A.834.