HF 1452

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/22/2021 02:36pm

A bill for an act
relating to higher education; modifying institution requirements for the state grant
program; requiring a report; amending Minnesota Statutes 2020, section 136A.103.

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

Section 1.

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

136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

new text begin Subdivision 1. new text end

new text begin Requirements. new text end

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

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

(2) is operated privately and, as determined by the office, meets the requirements of
paragraph (b).

(b) A private institution must:

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Additional information required. new text end

new text begin (a) In addition to the requirements under
subdivision 1, in order to be eligible for state student aid, private for-profit institutions shall
prominently display in the institution's catalog and brochure and on its website targeted
toward prospective students the following information in order for the prospective student
to make an informed decision:
new text end

new text begin (1) job placement rates for the institution's specific fields of study; and
new text end

new text begin (2) gainful employment outcomes, including median earnings of graduates.
new text end

new text begin (b) The Office of Higher Education shall develop a job placement rate, gainful
employment outcomes, and median earnings metric for purposes of paragraph (a). The
institutions affected by the requirement under paragraph (a) must report job placement and
earnings information according to the Office of Higher Education metrics. The Office of
Higher Education shall randomly audit the institutions to ensure compliance and report
noncompliance to the legislative committees with jurisdiction over higher education.
new text end