1.1 	A bill for an act
1.2 	relating to higher education; making various technical and policy changes 
1.3 	to provisions related to higher education, including provisions related to 
1.4 	grants, loans, registration, and various higher education programs; prohibiting 
1.5 	certain institutions from limiting access to a student's transcript; modernizing, 
1.6 	streamlining, and clarifying various statutes; eliminating unnecessary or 
1.7 	redundant laws and rules; deleting obsolete language and unnecessary verbiage;
1.8 	amending Minnesota Statutes 2014, sections 16C.075; 136A.031, subdivision 
1.9 	4; 136A.0411; 136A.61; 136A.63, subdivision 2; 136A.65, subdivisions 4, 7; 
1.10 	136A.657, subdivisions 1, 3; 136A.67; 136A.87; 136G.05, subdivision 7; 141.21, 
1.11 	subdivisions 5, 6a, 9; 141.25; 141.251, subdivision 2; 141.255; 141.26; 141.265; 
1.12 	141.271, subdivisions 1a, 1b, 3, 5, 7, 8, 9, 10, 12, 13, 14; 141.28; 141.29; 141.30; 
1.13 	141.32; 141.35; 197.75, subdivision 1; 261.23; repealing Minnesota Statutes 
1.14 	2014, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 10, 10a, 11, 14; 
1.15 	136A.862; 141.271, subdivisions 4, 6; 158.01; 158.02; 158.03; 158.04; 158.05; 
1.16 	158.06; 158.07; 158.08; 158.09; 158.091; 158.10; 158.11; 158.12.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	HIGHER EDUCATION; TECHNICAL CHANGES

1.20 	Section 1. Minnesota Statutes 2014, section 16C.075, is amended to read:
1.21 	16C.075 E-VERIFY.
1.22 	A contract for services valued in excess of $50,000 must require certification from 
1.23 	the vendor and any subcontractors that, as of the date services on behalf of the state of 
1.24 	Minnesota will be performed, the vendor and all subcontractors have implemented or are 
1.25 	in the process of implementing the federal E-Verify program for all newly hired employees 
1.26 	in the United States who will perform work on behalf of the state of Minnesota. This 
1.27 	section does not apply to contracts entered into by the:
1.28 	(1) State Board of Investment; or
2.1 	(2) the Office of Higher Education for contracts related to the office's loan and 
2.2 	loan refinancing programs.

2.3 	Sec. 2. Minnesota Statutes 2014, section 136A.031, subdivision 4, is amended to read:
2.4 		Subd. 4.Student representation. The commissioner must place at least one 
2.5 	student from an affected educational system on any task force created by the office. The 
2.6 	commissioner must submit to the SAC the name of any student appointed to an advisory 
2.7 	group or task force. The student appointment is not approved if four SAC members vote 
2.8 	to disapprove of the appointment. If an appointment is disapproved, the commissioner 
2.9 	must submit another student appointment to the SAC in a timely manner shall invite the 
2.10 	council to nominate a student or students to serve on task forces created by the office, 
2.11 	when appropriate.

2.12 	Sec. 3. Minnesota Statutes 2014, section 136A.0411, is amended to read:
2.13 	136A.0411 COLLECTING FEES.
2.14 	The office may charge fees for seminars, conferences, workshops, services, and 
2.15 	materials. The office may collect fees for registration and licensure of private institutions 
2.16 	under sections 136A.61 to 136A.71 and chapter 141. The money is annually appropriated 
2.17 	to the office.

2.18 	Sec. 4. Minnesota Statutes 2014, section 136A.61, is amended to read:
2.19 	136A.61 POLICY.
2.20 	The legislature has found and hereby declares that the availability of legitimate 
2.21 	courses and programs leading to academic degrees offered by responsible private 
2.22 	not-for-profit nonprofit and for-profit institutions of postsecondary education and the 
2.23 	existence of legitimate private colleges and universities are in the best interests of the 
2.24 	people of this state. The legislature has found and declares that the state can provide 
2.25 	assistance and protection for persons choosing private institutions and programs, by 
2.26 	establishing policies and procedures to assure the authenticity and legitimacy of private 
2.27 	postsecondary education institutions and programs. The legislature has also found and 
2.28 	declares that this same policy applies to any private and public postsecondary educational 
2.29 	institution located in another state or country which offers or makes available to a 
2.30 	Minnesota resident any course, program or educational activity which does not require 
2.31 	the leaving of the state for its completion.

2.32 	Sec. 5. Minnesota Statutes 2014, section 136A.63, subdivision 2, is amended to read:
3.1 		Subd. 2.Sale of an institution. Within 30 days of a change of its ownership a school 
3.2 	must submit a registration renewal application, all usual and ordinary information and 
3.3 	materials for an initial registration, and applicable registration fees for a new institution. 
3.4 	For purposes of this subdivision, "change of ownership" means a merger or consolidation 
3.5 	with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 
3.6 	the assets of a school; the transfer of a controlling interest of at least 51 percent of the 
3.7 	school's stock; or a change in the not-for-profit nonprofit or for-profit status of a school.

3.8 	Sec. 6. Minnesota Statutes 2014, section 136A.65, subdivision 7, is amended to read:
3.9 		Subd. 7.Conditional approval. The office may grant conditional approval for a 
3.10 	degree or use of a term in its name for a period of less than one year if doing so would be 
3.11 	in the best interests of currently enrolled students or prospective students. New schools 
3.12 	may be granted conditional approval for degrees or names annually for a period not to 
3.13 	exceed five years to allow them the opportunity to apply for and receive accreditation as 
3.14 	required in subdivision 1a. A new school granted conditional approval may be allowed 
3.15 	to continue as a registered institution in order to complete an accreditation process upon 
3.16 	terms and conditions the office determines.

3.17 	Sec. 7. Minnesota Statutes 2014, section 136A.657, subdivision 1, is amended to read:
3.18 		Subdivision 1.Exemption. Any school or any department or branch of a school (a) 
3.19 	which is substantially owned, operated or supported by a bona fide church or religious 
3.20 	organization; (b) whose programs are primarily designed for, aimed at and attended by 
3.21 	persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 
3.22 	church or religious organization; and (c) whose programs are primarily intended to prepare 
3.23 	its students to become ministers of, to enter into some other vocation closely related to, or 
3.24 	to conduct their lives in consonance with, the particular faith of that church or religious 
3.25 	organization, is exempt from the provisions of sections 136A.61 to 136A.71 136A.834.

3.26 	Sec. 8. Minnesota Statutes 2014, section 136A.657, subdivision 3, is amended to read:
3.27 		Subd. 3.Scope. Nothing in sections 136A.61 to 136A.71 136A.834, or the rules 
3.28 	adopted pursuant thereto, shall be interpreted as permitting the office to determine the 
3.29 	truth or falsity of any particular set of religious beliefs.

3.30 	Sec. 9. Minnesota Statutes 2014, section 136A.67, is amended to read:
3.31 	136A.67 REGISTRATION REPRESENTATIONS.
4.1 	No school and none of its officials or employees shall advertise or represent in any 
4.2 	manner that such school is approved or accredited by the office or the state of Minnesota, 
4.3 	except a school which is duly registered with the office, or any of its officials or 
4.4 	employees, may represent in advertising and shall disclose in catalogues, applications, and 
4.5 	enrollment materials that the school is registered with the office by prominently displaying 
4.6 	the following statement: "(Name of school) is registered as a private institution with the 
4.7 	office pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of the 
4.8 	institution. Credits earned at the institution may not transfer to all other institutions." In 
4.9 	addition, all registered schools shall publish in the school catalog or student handbook the 
4.10 	name, street address, telephone number, and Web site address of the office.

4.11 	Sec. 10. Minnesota Statutes 2014, section 136G.05, subdivision 7, is amended to read:
4.12 		Subd. 7.Marketing. The commissioner shall make parents and other interested 
4.13 	individuals aware of the availability and advantages of the program as a way to save for 
4.14 	higher education costs. The cost of these promotional efforts may not be funded with fees 
4.15 	imposed on participants.

4.16 	Sec. 11. Minnesota Statutes 2014, section 141.21, subdivision 5, is amended to read:
4.17 		Subd. 5.Private career school. "Private career school" means any a person, within 
4.18 	or outside the state, who maintains, advertises, administers, solicits for, or conducts any 
4.19 	program at less than an associate degree level and; is not registered as a private institution 
4.20 	under sections 136A.61 to 136A.71; and is not specifically exempted by section 141.35 
4.21 	or 141.37. School also means any person, within or outside the state, who maintains, 
4.22 	advertises, administers, solicits for, or conducts any program at less than an associate 
4.23 	degree level, is not registered as a private institution pursuant to sections 136A.61 to 
4.24 	136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.

4.25 	Sec. 12. Minnesota Statutes 2014, section 141.21, subdivision 6a, is amended to read:
4.26 		Subd. 6a.Multiple location. "Multiple location" means any site where classes or 
4.27 	administrative services are provided to students and which that has a street address that is 
4.28 	different than the street address found on the school's private career school school's license.

4.29 	Sec. 13. Minnesota Statutes 2014, section 141.21, subdivision 9, is amended to read:
4.30 		Subd. 9.Distance education private career school. "Distance education private 
4.31 	career school" means a school that establishes, keeps, or maintains a facility or location 
4.32 	where a program is offered through distance instruction.

5.1 	Sec. 14. Minnesota Statutes 2014, section 141.25, is amended to read:
5.2 	141.25 LICENSURE.
5.3 		Subdivision 1.Required. A private career school must not maintain, advertise, 
5.4 	solicit for, administer, or conduct any program in Minnesota without first obtaining a 
5.5 	license from the office.
5.6 		Subd. 2.Contract unenforceable. A contract entered into with a person for a 
5.7 	program by or on behalf of a person operating a private career school to which a license 
5.8 	has not been issued under sections 141.21 to 141.35, is unenforceable in any action.
5.9 		Subd. 2a.Refunds. If a contract is deemed unenforceable under subdivision 2, a
5.10 	private career school must refund tuition, fees, and other charges received from a student 
5.11 	or on behalf of a student within 30 days of receiving written notification and demand for 
5.12 	refund from the Minnesota office of Higher Education.
5.13 		Subd. 3.Application. Application for a license shall be on forms prepared and 
5.14 	furnished by the office, and shall include the following and other information as the 
5.15 	office may require:
5.16 	(1) the title or name of the private career school, ownership and controlling officers, 
5.17 	members, managing employees, and director;
5.18 	(2) the specific programs which will be offered and the specific purposes of the 
5.19 	instruction;
5.20 	(3) the place or places where the instruction will be given;
5.21 	(4) a listing of the equipment available for instruction in each program;
5.22 	(5) the maximum enrollment to be accommodated with equipment available in 
5.23 	each specified program;
5.24 	(6) the qualifications of instructors and supervisors in each specified program;
5.25 	(7) a current balance sheet, income statement, and adequate supporting 
5.26 	documentation, prepared and certified by an independent public accountant or CPA;
5.27 	(8) copies of all media advertising and promotional literature and brochures or 
5.28 	electronic display currently used or reasonably expected to be used by the private career
5.29 	school;
5.30 	(9) copies of all Minnesota enrollment agreement forms and contract forms and all 
5.31 	enrollment agreement forms and contract forms used in Minnesota; and
5.32 	(10) gross income earned in the preceding year from student tuition, fees, and other 
5.33 	required institutional charges, unless the private career school files with the office a surety 
5.34 	bond equal to at least $250,000 as described in subdivision 5.
5.35 		Subd. 4.Certification. Each application shall be signed and certified to under 
5.36 	oath by the proprietor if the applicant is a proprietorship, by the managing partner if the 
6.1 	applicant is a partnership, or by the authorized officers of the applicant if the applicant is a 
6.2 	corporation, association, company, firm, society or trust.
6.3 		Subd. 5.Bond. (a) No license shall be issued to any private career school which 
6.4 	maintains, conducts, solicits for, or advertises within the state of Minnesota any program, 
6.5 	unless the applicant files with the office a continuous corporate surety bond written 
6.6 	by a company authorized to do business in Minnesota conditioned upon the faithful 
6.7 	performance of all contracts and agreements with students made by the applicant.
6.8 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's 
6.9 	gross income from student tuition, fees, and other required institutional charges, but in 
6.10 	no event less than $10,000 nor greater than $250,000, except that a private career school 
6.11 	may deposit a greater amount at its own discretion. A private career school in each annual 
6.12 	application for licensure must compute the amount of the surety bond and verify that the 
6.13 	amount of the surety bond complies with this subdivision, unless the private career school 
6.14 	maintains a surety bond equal to at least $250,000. A private career school that operates at 
6.15 	two or more locations may combine gross income from student tuition, fees, and other 
6.16 	required institutional charges for all locations for the purpose of determining the annual 
6.17 	surety bond requirement. The gross tuition and fees used to determine the amount of the 
6.18 	surety bond required for a private career school having a license for the sole purpose of 
6.19 	recruiting students in Minnesota shall be only that paid to the private career school by the 
6.20 	students recruited from Minnesota.
6.21 	(2) A school person required to obtain a private career school license due to the use 
6.22 	of "academy," "institute," "college," or "university" in its name and which is also licensed 
6.23 	by another state agency or board shall be required to provide a school bond of $10,000.
6.24 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
6.25 	cause of action against the applicant arising at any time after the bond is filed and before 
6.26 	it is canceled for breach of any contract or agreement made by the applicant with any 
6.27 	student. The aggregate liability of the surety for all breaches of the conditions of the 
6.28 	bond shall not exceed the principal sum deposited by the private career school under 
6.29 	paragraph (b). The surety of any bond may cancel it upon giving 60 days' notice in writing 
6.30 	to the office and shall be relieved of liability for any breach of condition occurring after 
6.31 	the effective date of cancellation.
6.32 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
6.33 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
6.34 	letter of credit issued by a financial institution equal to the amount of the required surety 
6.35 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
6.36 	aggregate market value equal to the amount of the required surety bond.
7.1 	(e) Failure of a private career school to post and maintain the required surety bond 
7.2 	or deposit under paragraph (d) shall result in denial, suspension, or revocation of the 
7.3 	school's license.
7.4 		Subd. 6.Resident agent. Private career schools located outside the state of 
7.5 	Minnesota that offer, advertise, solicit for, or conduct any program within the state of 
7.6 	Minnesota shall first file with the secretary of state a sworn statement designating a resident 
7.7 	agent authorized to receive service of process. The statement shall designate the secretary 
7.8 	of state as resident agent for service of process in the absence of a designated agent. If 
7.9 	a private career school fails to file the statement, the secretary of state is designated as 
7.10 	the resident agent authorized to receive service of process. The authorization shall be 
7.11 	irrevocable as to causes of action arising out of transactions occurring prior to the filing of 
7.12 	written notice of withdrawal from the state of Minnesota filed with the secretary of state.
7.13 		Subd. 7.Minimum standards. A license shall be issued if the office first determines:
7.14 	(1) that the applicant has a sound financial condition with sufficient resources 
7.15 	available to:
7.16 	(i) meet the private career school's financial obligations;
7.17 	(ii) refund all tuition and other charges, within a reasonable period of time, in the 
7.18 	event of dissolution of the private career school or in the event of any justifiable claims for 
7.19 	refund against the private career school by the student body;
7.20 	(iii) provide adequate service to its students and prospective students; and
7.21 	(iv) maintain and support the private career school;
7.22 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment 
7.23 	and the necessary number of work stations to prepare adequately the students currently 
7.24 	enrolled, and those proposed to be enrolled;
7.25 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
7.26 	provide the educational programs contemplated;
7.27 	(4) that the private career school has an organizational framework with administrative 
7.28 	and instructional personnel to provide the programs and services it intends to offer;
7.29 	(5) that the premises and conditions under which the students work and study are 
7.30 	sanitary, healthful, and safe;
7.31 	(6) (5) that the quality and content of each occupational course or program of study 
7.32 	provides education and adequate preparation to enrolled students for entry level positions 
7.33 	in the occupation for which prepared;
7.34 	(7) (6) that the premises and conditions where the students work and study and the 
7.35 	student living quarters which are owned, maintained, recommended, or approved by 
7.36 	the applicant for students are sanitary, healthful, and safe, as evidenced by certificate 
8.1 	of occupancy issued by the municipality or county where the private career school 
8.2 	is physically situated, a fire inspection by the local or state fire marshal, or another 
8.3 	verification deemed acceptable by the office;
8.4 	(8) (7) that the contract or enrollment agreement used by the private career school 
8.5 	complies with the provisions in section 141.265;
8.6 	(9) (8) that contracts and agreements do not contain a wage assignment provision 
8.7 	or a confession of judgment clause; and
8.8 	(10) (9) that there has been no adjudication of fraud or misrepresentation in any 
8.9 	criminal, civil, or administrative proceeding in any jurisdiction against the private career 
8.10 	school or its owner, officers, agents, or sponsoring organization.
8.11 		Subd. 8.Fees and terms of license. An application for an initial license under 
8.12 	sections 141.21 to 141.35 shall be accompanied by a nonrefundable application fee as 
8.13 	provided in section 141.255 that is sufficient to recover, but not exceed, the administrative 
8.14 	costs of the office.
8.15 	All licenses shall expire one year from the date issued by the office, except as 
8.16 	provided in section 141.251.
8.17 		Subd. 9.Catalog, brochure, or electronic display. Before a license is issued to 
8.18 	a private career school, the private career school shall furnish to the office a catalog, 
8.19 	brochure, or electronic display including:
8.20 	(1) identifying data, such as volume number and date of publication;
8.21 	(2) name and address of the private career school and its governing body and officials;
8.22 	(3) a calendar of the private career school showing legal holidays, beginning and 
8.23 	ending dates of each course quarter, term, or semester, and other important dates;
8.24 	(4) the private career school policy and regulations on enrollment including dates 
8.25 	and specific entrance requirements for each program;
8.26 	(5) the private career school policy and regulations about leave, absences, class cuts, 
8.27 	make-up work, tardiness, and interruptions for unsatisfactory attendance;
8.28 	(6) the private career school policy and regulations about standards of progress 
8.29 	for the student including the grading system of the private career school, the minimum 
8.30 	grades considered satisfactory, conditions for interruption for unsatisfactory grades or 
8.31 	progress, a description of any probationary period allowed by the private career school, 
8.32 	and conditions of reentrance for those dismissed for unsatisfactory progress;
8.33 	(7) the private career school policy and regulations about student conduct and 
8.34 	conditions for dismissal for unsatisfactory conduct;
8.35 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
8.36 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
9.1 	(9) the private career school policy and regulations, including an explanation of 
9.2 	section 141.271, about refunding tuition, fees, and other charges if the student does not 
9.3 	enter the program, withdraws from the program, or the program is discontinued;
9.4 	(10) a description of the available facilities and equipment;
9.5 	(11) a course outline syllabus for each course offered showing course objectives, 
9.6 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
9.7 	hours, or credits to be spent on each subject or unit;
9.8 	(12) the private career school policy and regulations about granting credit for 
9.9 	previous education and preparation;
9.10 	(13) a notice to students relating to the transferability of any credits earned at the
9.11 	private career school to other institutions;
9.12 	(14) a procedure for investigating and resolving student complaints; and
9.13 	(15) the name and address of the Minnesota office of Higher Education.
9.14 	A private career school that is exclusively a distance education school is exempt 
9.15 	from clauses (3) and (5).
9.16 		Subd. 10.Placement records. (a) Before a license is reissued to a private career
9.17 	school that offers, advertises or implies a placement service, the private career school shall 
9.18 	file with the office for the past year and thereafter at reasonable intervals determined by 
9.19 	the office, a certified copy of the private career school's placement record, containing a list 
9.20 	of graduates, a description of their jobs, names of their employers, and other information 
9.21 	as the office may prescribe.
9.22 	(b) Each private career school that offers a placement service shall furnish to each 
9.23 	prospective student, upon request, prior to enrollment, written information concerning 
9.24 	the percentage of the previous year's graduates who were placed in the occupation for 
9.25 	which prepared or in related employment.
9.26 		Subd. 12.Permanent records. A private career school licensed under this chapter 
9.27 	and located in Minnesota shall maintain a permanent record for each student for 50 years 
9.28 	from the last date of the student's attendance. A private career school licensed under this 
9.29 	chapter and offering distance instruction to a student located in Minnesota shall maintain 
9.30 	a permanent record for each Minnesota student for 50 years from the last date of the 
9.31 	student's attendance. Records include school transcripts, documents, and files containing 
9.32 	student data about academic credits earned, courses completed, grades awarded, degrees 
9.33 	awarded, and periods of attendance. To preserve permanent records, a private career
9.34 	school shall submit a plan that meets the following requirements:
9.35 	(1) at least one copy of the records must be held in a secure, fireproof depository;
10.1 	(2) an appropriate official must be designated to provide a student with copies of 
10.2 	records or a transcript upon request;
10.3 	(3) an alternative method, approved by the office, of complying with clauses (1) and 
10.4 	(2) must be established if the private career school ceases to exist; and
10.5 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
10.6 	$20,000 if the private career school has no binding agreement approved by the office, for 
10.7 	preserving student records. The bond shall run to the state of Minnesota.
10.8 		Subd. 13.Private career schools licensed by another state agency or board. A 
10.9 	private career school required to obtain a private career school license due to the use of 
10.10 	"academy," "institute," "college," or "university" in its name or licensed for the purpose of 
10.11 	participating in state financial aid under chapter 136A, and which is also licensed by another 
10.12 	state agency or board shall be required to satisfy only the requirements of subdivisions 3, 
10.13 	clauses (1), (2), (3), (5), (7), and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 
10.14 	8; 9, clause (13); and 12. A distance education school located in another state, or a school 
10.15 	licensed to recruit Minnesota residents for attendance at a school outside of this state, or a 
10.16 	school licensed by another state agency as its primary licensing body, may continue to use 
10.17 	the school's name as permitted by its home state or its primary licensing body.

10.18 	Sec. 15. Minnesota Statutes 2014, section 141.251, subdivision 2, is amended to read:
10.19 		Subd. 2.Conditions. The office shall adopt rules establishing the conditions for 
10.20 	renewal of a license. The conditions shall permit two levels of renewal based on the record 
10.21 	of the private career school. A private career school that has demonstrated the quality of 
10.22 	its program and operation through longevity and performance in the state may renew its 
10.23 	license based on a relaxed standard of scrutiny. A private career school that has been in 
10.24 	operation in Minnesota for a limited period of time or that has not performed adequately 
10.25 	on performance indicators shall renew its license based on a strict standard of scrutiny. 
10.26 	The office shall specify minimum longevity standards and performance indicators that 
10.27 	must be met before a private career school may be permitted to operate under the relaxed 
10.28 	standard of scrutiny. The performance indicators used in this determination shall include, 
10.29 	but not be limited to: regional or national accreditation, loan default rates, placement rate 
10.30 	of graduates, student withdrawal rates, audit results, student complaints, and school status 
10.31 	with the United States Department of Education. Private career schools that meet the 
10.32 	requirements established in rule shall be required to submit a full relicensure report once 
10.33 	every four years, and in the interim years will be exempt from the requirements of section 
10.34 	141.25, subdivision 3, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700, 
10.35 	subpart 6; and 4880.2100, subpart 4.

11.1 	Sec. 16. Minnesota Statutes 2014, section 141.255, is amended to read:
11.2 	141.255 FEES.
11.3 		Subdivision 1.Initial licensure fee. The office processing fee for an initial licensure 
11.4 	application is:
11.5 	(1) $2,500 for a private career school that will offer no more than one program 
11.6 	during its first year of operation;
11.7 	(2) $750 for a private career school licensed exclusively due to the use of the term 
11.8 	"college," "university," "academy," or "institute" in its name, or licensed exclusively in 
11.9 	order to participate in state grant or SELF loan financial aid programs; and
11.10 	(3) $2,500, plus $500 for each additional program offered by the private career
11.11 	school, for a private career school during its first year of operation.
11.12 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a 
11.13 	renewal licensure application is:
11.14 	(1) for a private career school that offers one program, the license renewal fee is 
11.15 	$1,150;
11.16 	(2) for a private career school that offers more than one program, the license renewal 
11.17 	fee is $1,150, plus $200 for each additional program with a maximum renewal licensing 
11.18 	fee of $2,000;
11.19 	(3) for a private career school licensed exclusively due to the use of the term "college," 
11.20 	"university," "academy," or "institute" in its name, the license renewal fee is $750; and
11.21 	(4) for a private career school licensed by another state agency and also licensed 
11.22 	with the office exclusively in order to participate in state student aid programs, the license 
11.23 	renewal fee is $750.
11.24 	(b) If a license renewal application is not received by the office by the close of 
11.25 	business at least 60 days before the expiration of the current license, a late fee of $100 
11.26 	per business day, not to exceed $3,000, shall be assessed.
11.27 		Subd. 4.Program addition fee. The office processing fee for adding a program to 
11.28 	those that are currently offered by the private career school is $500 per program.
11.29 		Subd. 5.Visit or consulting fee. If the office determines that a fact-finding visit 
11.30 	or outside consultant is necessary to review or evaluate any new or revised program, the 
11.31 	office shall be reimbursed for the expenses incurred related to the review as follows:
11.32 	(1) $400 for the team base fee or for a paper review conducted by a consultant if the 
11.33 	office determines that a fact-finding visit is not required;
11.34 	(2) $300 for each day or part thereof on site per team member; and
11.35 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
11.36 	by team members.
12.1 		Subd. 6.Modification fee. The fee for modification of any existing program is 
12.2 	$100 and is due if there is:
12.3 	(1) an increase or decrease of 25 percent or more, from the original date of program 
12.4 	approval, in clock hours, credit hours, or calendar length of an existing program;
12.5 	(2) a change in academic measurement from clock hours to credit hours or vice 
12.6 	versa; or
12.7 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
12.8 	the objectives, content, or methods of delivery.
12.9 		Subd. 7.Solicitor permit fee. The solicitor permit fee is $350 and must be paid 
12.10 	annually.
12.11 		Subd. 8.Multiple location fee. Private career schools wishing to operate at 
12.12 	multiple locations must pay:
12.13 	(1) $250 per location, for locations two to five; and
12.14 	(2) an additional $100 for each location over five.
12.15 		Subd. 9.Student transcript fee. The fee for a student transcript requested from a 
12.16 	closed private career school whose records are held by the office is $15, with a maximum 
12.17 	of five transcripts per request.
12.18 		Subd. 10.Public office documents; copies. The rate for copies of any public 
12.19 	office document shall be 50 cents per page.

12.20 	Sec. 17. Minnesota Statutes 2014, section 141.26, is amended to read:
12.21 	141.26 PERMITS FOR SOLICITORS.
12.22 		Subdivision 1.Required. A solicitor representing a private career school must 
12.23 	obtain a solicitor's permit from the office before soliciting students to enroll in such the 
12.24 	private career school. Such permit shall expire one year following the date of issuance. 
12.25 	Application for renewal of permit shall be made annually.
12.26 		Subd. 2.Application for permit. (a) The application for the permit shall state the 
12.27 	full name, address, previous employment, and such other information concerning the 
12.28 	solicitor applicant as the office may require.
12.29 	(b) The application shall have attached to it a certified affidavit signed by a private 
12.30 	career school official and the solicitor attesting to the fact that the applicant has been 
12.31 	furnished a copy, has read and has knowledge of the provisions of this chapter and 
12.32 	Minnesota Rules.
12.33 		Subd. 3.Refusal of permit. No permit shall be issued to any solicitor unless such 
12.34 	solicitor files with the office a continuous corporate surety bond in the sum of $2,000 
12.35 	conditioned upon the faithful performance of all contracts and agreements with the students 
13.1 	made by the solicitor. Such bonds shall run to the state of Minnesota and to any person who 
13.2 	may have cause of action against the applicant arising at any time after the bond is filed and 
13.3 	before it is canceled for breach of any contract or agreement made by the solicitor with any 
13.4 	student. The aggregate liability of the surety for all breaches of the conditions of the bond 
13.5 	shall not exceed the principal sum of $2,000. The surety of any such bond may cancel it 
13.6 	upon giving 60 days' notice in writing to the office and shall be relieved of liability for any 
13.7 	breach of condition occurring after the effective date of cancellation. In lieu of bond, the 
13.8 	solicitor may deposit with the commissioner of management and budget the sum of $2,000.
13.9 		Subd. 4.Additional permits. A solicitor representing more than one private career
13.10 	school must obtain a separate permit for each private career school represented; however 
13.11 	when a solicitor represents private career schools having a common ownership, only one 
13.12 	permit shall be required.
13.13 		Subd. 5.Fee. The initial and renewal application for each permit shall be 
13.14 	accompanied by a nonrefundable fee under section 141.255.
13.15 		Subd. 6.Contract; validity. Any contract entered into by a solicitor for a licensed
13.16 	private career school shall be unenforceable in any action brought thereon if the solicitor 
13.17 	does not hold a valid permit as required by this section.

13.18 	Sec. 18. Minnesota Statutes 2014, section 141.265, is amended to read:
13.19 	141.265 INFORMATION TO STUDENTS.
13.20 		Subdivision 1.Catalog, brochure, or electronic display. A private career school 
13.21 	or its agent must provide the catalog, brochure, or electronic display required in section 
13.22 	141.25, subdivision 9, to a prospective student in a time or manner that gives the 
13.23 	prospective student at least five days to read the catalog, brochure, or electronic display 
13.24 	before signing a contract or enrollment agreement or before being accepted by a private 
13.25 	career school that does not use a written contract or enrollment agreement.
13.26 		Subd. 2.Contract information. A contract or enrollment agreement used by a
13.27 	private career school must include at least the following:
13.28 	(1) the name and address of the private career school, clearly stated;
13.29 	(2) a clear and conspicuous disclosure that the agreement is a legally binding 
13.30 	instrument upon written acceptance of the student by the private career school unless 
13.31 	canceled under section 141.271;
13.32 	(3) the private career school's cancellation and refund policy that shall be clearly and 
13.33 	conspicuously entitled "Buyer's Right to Cancel";
13.34 	(4) a clear statement of total cost of the program including tuition and all other 
13.35 	charges;
14.1 	(5) the name and description of the program, including the number of hours or 
14.2 	credits of classroom instruction, or distance instruction, that shall be included; and
14.3 	(6) a clear and conspicuous explanation of the form and means of notice the student 
14.4 	should use in the event the student elects to cancel the contract or sale, the effective 
14.5 	date of cancellation, and the name and address of the seller to which the notice should 
14.6 	be sent or delivered.
14.7 	The contract or enrollment agreement must not include a wage assignment provision or a 
14.8 	confession of judgment clause.
14.9 		Subd. 3.Contract copies. Immediately upon signing of the enrollment agreement 
14.10 	or the contract by a prospective student, the private career school or agent shall furnish to 
14.11 	the prospective student an exact duplicate copy of the enrollment agreement or contract.

14.12 	Sec. 19. Minnesota Statutes 2014, section 141.271, subdivision 1a, is amended to read:
14.13 		Subd. 1a.Notice; right to refund. Every private career school shall notify each 
14.14 	student, in writing, of acceptance or rejection. In the event that the student is rejected by 
14.15 	the private career school, all tuition, fees and other charges shall be refunded.

14.16 	Sec. 20. Minnesota Statutes 2014, section 141.271, subdivision 1b, is amended to read:
14.17 		Subd. 1b.Short-term programs. Licensed private career schools conducting 
14.18 	programs not exceeding 40 hours in length shall not be required to make a full refund once 
14.19 	a program has commenced and shall be allowed to prorate any refund based on the actual 
14.20 	length of the program as stated in the private career school catalog or advertisements and 
14.21 	the number of hours attended by the student.

14.22 	Sec. 21. Minnesota Statutes 2014, section 141.271, subdivision 3, is amended to read:
14.23 		Subd. 3.Schools not using written contracts Notice; amount. (a) Notwithstanding 
14.24 	anything to the contrary, A private career school that does not use a written contract or 
14.25 	enrollment agreement shall refund all tuition, fees and other charges paid by a student 
14.26 	if the student gives written notice of cancellation within five business days after the day 
14.27 	on which the student is accepted by the private career school regardless of whether the 
14.28 	program has started.
14.29 	(b) When a student has been accepted by the private career school and gives written 
14.30 	notice of cancellation following the fifth business day after the day of acceptance by the
14.31 	private career school, but before the start of the program, in the case of resident private 
14.32 	career schools, or before the first lesson has been serviced by the private career school, in 
15.1 	the case of distance education schools, all tuition, fees and other charges, except 15 percent 
15.2 	of the total cost of the program but not to exceed $50, shall be refunded to the student.

15.3 	Sec. 22. Minnesota Statutes 2014, section 141.271, subdivision 5, is amended to read:
15.4 		Subd. 5.Distance education schools Proration. When a student has been accepted 
15.5 	by a distance education private career school and gives written notice of cancellation after 
15.6 	the first lesson has been completed by the student and serviced by the school program of 
15.7 	instruction has begun, but before completion of 75 percent of the program, the amount 
15.8 	charged for tuition, fees and all other charges for the completed lessons shall be prorated 
15.9 	based on the number of days in the term as a portion of the total charges for tuition, fees 
15.10 	and all other charges. An additional 25 percent of the total cost of the program may be 
15.11 	added but shall not exceed $75 $100. After completion of 75 percent of the program, 
15.12 	no refunds are required.

15.13 	Sec. 23. Minnesota Statutes 2014, section 141.271, subdivision 7, is amended to read:
15.14 		Subd. 7.Equipment and supplies. The fair market retail price, if separately stated 
15.15 	in the catalog and contract or enrollment agreement, of equipment or supplies furnished to 
15.16 	the student, which the student fails to return in condition suitable for resale, and which 
15.17 	may reasonably be resold, within ten business days following cancellation may be retained 
15.18 	by the private career school and may be deducted from the total cost for tuition, fees and 
15.19 	all other charges when computing refunds.
15.20 	An overstatement of the fair market retail price of any equipment or supplies 
15.21 	furnished the student shall be considered inconsistent with this provision.

15.22 	Sec. 24. Minnesota Statutes 2014, section 141.271, subdivision 8, is amended to read:
15.23 		Subd. 8.Time of refund. Each private career school shall acknowledge in writing 
15.24 	any valid notice of cancellation within ten business days after the receipt of such notice 
15.25 	and within 30 business days shall refund to the student any amounts due and arrange for 
15.26 	termination of the student's obligation to pay any sum in excess of that due under the 
15.27 	cancellation and refund policy.

15.28 	Sec. 25. Minnesota Statutes 2014, section 141.271, subdivision 9, is amended to read:
15.29 		Subd. 9.Limitation. A private career school cannot make its refund policy 
15.30 	conditional upon compliance with the school's regulations or rules of conduct.

15.31 	Sec. 26. Minnesota Statutes 2014, section 141.271, subdivision 10, is amended to read:
16.1 		Subd. 10.Cancellation occurrence. Written notice of cancellation shall take place 
16.2 	on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
16.3 	carried, it shall occur on the date the notice is delivered to the private career school. If 
16.4 	a student has not attended class for a period of 21 consecutive days without contacting 
16.5 	the private career school to indicate an intent to continue in school or otherwise making 
16.6 	arrangements concerning the absence, the student is considered to have withdrawn from 
16.7 	school for all purposes as of the student's last documented date of attendance.

16.8 	Sec. 27. Minnesota Statutes 2014, section 141.271, subdivision 12, is amended to read:
16.9 		Subd. 12.Instrument not to be negotiated. A private career school shall not 
16.10 	negotiate any promissory instrument received as payment of tuition or other charge prior 
16.11 	to completion of 50 percent of the program, except that prior to that time, instruments may 
16.12 	be transferred by assignment to purchasers who shall be subject to all defenses available 
16.13 	against the private career school named as payee.

16.14 	Sec. 28. Minnesota Statutes 2014, section 141.271, subdivision 13, is amended to read:
16.15 		Subd. 13.Cancellation of enrollment. If a student's enrollment in a private career 
16.16 	school is canceled for any reason, the private career school shall notify any agency known 
16.17 	to the private career school to be providing financial aid to the student of the cancellation 
16.18 	within 30 days.

16.19 	Sec. 29. Minnesota Statutes 2014, section 141.271, subdivision 14, is amended to read:
16.20 		Subd. 14.Closed private career school. In the event a private career school closes 
16.21 	for any reason during a term and interrupts and terminates classes during that term, all 
16.22 	tuition for the term shall be refunded to the students or the appropriate state or federal 
16.23 	agency or private lender that provided any funding for the term and any outstanding 
16.24 	obligation of the student for the term is canceled.

16.25 	Sec. 30. Minnesota Statutes 2014, section 141.28, is amended to read:
16.26 	141.28 PROHIBITIONS.
16.27 		Subdivision 1.Disclosure required; advertisement restricted. Private career 
16.28 	schools, agents of private career schools, and solicitors may not advertise or represent 
16.29 	in writing or orally that the private career school is approved or accredited by the state 
16.30 	of Minnesota, except that any private career school, agent, or solicitor may represent in 
16.31 	advertisements and shall disclose in catalogues, applications, and enrollment materials 
17.1 	that the private career school is duly licensed by the state by prominently displaying 
17.2 	the following statement:
17.3 	"(Name of private career school) is licensed as a private career school with the Minnesota 
17.4 	Office of Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. 
17.5 	Licensure is not an endorsement of the institution. Credits earned at the institution may 
17.6 	not transfer to all other institutions."
17.7 		Subd. 2.Unlawful designation. No private career school organized after November 
17.8 	15, 1969, shall apply to itself either as a part of its name or in any other manner the 
17.9 	designation of "college" or "university." Operating private career schools now using 
17.10 	such designation may continue use thereof.
17.11 		Subd. 3.False statements. A private career school, agent, or solicitor shall not 
17.12 	make, or cause to be made, any statement or representation, oral, written or visual, in 
17.13 	connection with the offering or publicizing of a program, if the private career school, 
17.14 	agent, or solicitor knows or reasonably should have known the statement or representation 
17.15 	to be false, fraudulent, deceptive, substantially inaccurate, or misleading.
17.16 		Subd. 4.Acceptance of contracts. No private career school shall accept contracts, 
17.17 	enrollment agreements or enrollment applications from an agent or solicitor who does 
17.18 	not have a current permit.
17.19 		Subd. 5.Improbable program completion or employment. A private career
17.20 	school, agent, or solicitor shall not enroll a prospective student when it is obvious that the 
17.21 	prospective student is unlikely to successfully complete a program or is unlikely to qualify 
17.22 	for employment in the vocation or field for which the preparation is designed unless this 
17.23 	fact is affirmatively disclosed to the prospective student. If a prospective student expresses 
17.24 	a desire to enroll after such disclosure, a disclaimer may be obtained by the private career
17.25 	school. The disclaimer shall be signed by the student and shall state substantially one or 
17.26 	both of the following: "I am fully aware that it is unlikely I will be able to successfully 
17.27 	complete the program" and "I am fully aware of the improbability or impossibility that I 
17.28 	will qualify for employment in the vocation or field for which the program was designed."
17.29 		Subd. 6.Financial aid payments. (a) All private career schools must collect, 
17.30 	assess, and distribute funds received from loans or other financial aid as provided in 
17.31 	this subdivision.
17.32 	(b) Student loans or other financial aid funds received from federal, state, or local 
17.33 	governments or administered in accordance with federal student financial assistance 
17.34 	programs under title IV of the Higher Education Act of 1965, as amended, United States 
17.35 	Code, title 20, chapter 28, must be collected and applied as provided by applicable federal, 
17.36 	state, or local law or regulation.
18.1 	(c) Student loans or other financial aid assistance received from a bank, finance or 
18.2 	credit card company, or other private lender must be collected or disbursed as provided 
18.3 	in paragraphs (d) and (e).
18.4 	(d) Loans or other financial aid payments for amounts greater than $3,000 must 
18.5 	be disbursed:
18.6 	(1) in two equal disbursements, if the term length is more than four months. The 
18.7 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
18.8 	class with the remainder to be disbursed halfway through the term; or
18.9 	(2) in three equal disbursements, if the term length is more than six months. The 
18.10 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
18.11 	class, one-third of the way through the term, and two-thirds of the way through the term.
18.12 	(e) Loans or other financial aid payments for amounts less than $3,000 may be 
18.13 	disbursed as a single disbursement on the first day a student attends class, regardless 
18.14 	of term length.
18.15 	(f) No private career school may enter into a contract or agreement with, or receive 
18.16 	any money from, a bank, finance or credit card company, or other private lender, unless 
18.17 	the private lender follows the requirements for disbursements provided in paragraphs 
18.18 	(d) and (e).

18.19 	Sec. 31. Minnesota Statutes 2014, section 141.29, is amended to read:
18.20 	141.29 REVOCATION OF LICENSE OR PERMIT.
18.21 		Subdivision 1.Grounds. The office may, after notice and upon providing an 
18.22 	opportunity for a hearing, under chapter 14 if requested by the parties adversely affected, 
18.23 	refuse to issue, refuse to renew, revoke, or suspend a license or solicitor's permit for any 
18.24 	of the following grounds:
18.25 	(1) violation of any provisions of sections 141.21 to 141.35 or any rule adopted 
18.26 	by the office;
18.27 	(2) furnishing to the office false, misleading, or incomplete information;
18.28 	(3) presenting to prospective students information relating to the private career
18.29 	school that is false, fraudulent, deceptive, substantially inaccurate, or misleading;
18.30 	(4) refusal to allow reasonable inspection or supply reasonable information after 
18.31 	written request by the office;
18.32 	(5) the existence of any circumstance that would be grounds for the refusal of an 
18.33 	initial or renewal license under section 141.25.
18.34 		Subd. 2.Appeal. Any order refusing, revoking, or suspending a private career
18.35 	school's license or a solicitor's permit is appealable in accordance with chapter 14. Where 
19.1 	a private career school has been operating and its license has been revoked, suspended, or 
19.2 	refused by the office, the order is not effective until the final determination of the appeal 
19.3 	unless immediate effect is ordered by the court.
19.4 		Subd. 3.Powers and duties. The office shall have (in addition to the powers and 
19.5 	duties now vested therein by law) the following powers and duties:
19.6 	(a) To negotiate and enter into interstate reciprocity agreements with similar agencies 
19.7 	in other states, if in the judgment of the office such agreements are or will be helpful in 
19.8 	effectuating the purposes of Laws 1973, chapter 714;
19.9 	(b) To grant conditional private career school license for periods of less than one 
19.10 	year if in the judgment of the office correctable deficiencies exist at the time of application 
19.11 	and when refusal to issue private career school license would adversely affect currently 
19.12 	enrolled students;
19.13 	(c) The office may upon its own motion, and shall upon the verified complaint 
19.14 	in writing of any person setting forth fact which, if proved, would constitute grounds 
19.15 	for refusal or revocation under Laws 1973, chapter 714, investigate the actions of any 
19.16 	applicant or any person or persons holding or claiming to hold a license or permit. 
19.17 	However, before proceeding to a hearing on the question of whether a license or permit 
19.18 	shall be refused, revoked or suspended for any cause enumerated in subdivision 1, the 
19.19 	office shall grant a reasonable time to the holder of or applicant for a license or permit to 
19.20 	correct the situation. If within such time the situation is corrected and the private career
19.21 	school is in compliance with the provisions of this chapter, no further action leading to 
19.22 	refusal, revocation, or suspension shall be taken.

19.23 	Sec. 32. Minnesota Statutes 2014, section 141.30, is amended to read:
19.24 	141.30 INSPECTION.
19.25 	(a) The office or a delegate may inspect the instructional books and records, 
19.26 	classrooms, dormitories, tools, equipment and classes of any private career school or 
19.27 	applicant for license at any reasonable time. The office may require the submission of a 
19.28 	certified public audit, or if there is no such audit available the office or a delegate may 
19.29 	inspect the financial books and records of the private career school. In no event shall such 
19.30 	financial information be used by the office to regulate or set the tuition or fees charged by 
19.31 	the private career school.
19.32 	(b) Data obtained from an inspection of the financial records of a private career
19.33 	school or submitted to the office as part of a license application or renewal are nonpublic 
19.34 	data as defined in section 13.02, subdivision 9. Data obtained from inspections may be 
20.1 	disclosed to other members of the office, to law enforcement officials, or in connection 
20.2 	with a legal or administrative proceeding commenced to enforce a requirement of law.

20.3 	Sec. 33. Minnesota Statutes 2014, section 141.32, is amended to read:
20.4 	141.32 PENALTY.
20.5 	The commissioner may assess fines for violations of a provision of this chapter
20.6 	sections 141.21 to 141.37. Each day's failure to comply with this chapter sections 141.21 
20.7 	to 141.37 shall be a separate violation and fines shall not exceed $500 per day per 
20.8 	violation. Amounts received under this section must be deposited in the special revenue 
20.9 	fund and are appropriated to the office of Higher Education for the purposes of this 
20.10 	chapter sections 141.21 to 141.37.

20.11 	Sec. 34. Minnesota Statutes 2014, section 141.35, is amended to read:
20.12 	141.35 EXEMPTIONS.
20.13 	Sections 141.21 to 141.32 shall not apply to the following:
20.14 	(1) public postsecondary institutions;
20.15 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
20.16 	(3) private career schools of nursing accredited by the state Board of Nursing or an 
20.17 	equivalent public board of another state or foreign country;
20.18 	(4) private schools complying with the requirements of section 120A.22, subdivision 
20.19 	4;
20.20 	(5) courses taught to students in a valid apprenticeship program taught by or 
20.21 	required by a trade union;
20.22 	(6) private career schools exclusively engaged in training physically or mentally 
20.23 	disabled persons for the state of Minnesota;
20.24 	(7) private career schools licensed by boards authorized under Minnesota law to 
20.25 	issue licenses except private career schools required to obtain a private career school 
20.26 	license due to the use of "academy," "institute," "college," or "university" in their names;
20.27 	(8) private career schools and educational programs, or training programs, contracted 
20.28 	for by persons, firms, corporations, government agencies, or associations, for the training 
20.29 	of their own employees, for which no fee is charged the employee;
20.30 	(9) private career schools engaged exclusively in the teaching of purely avocational, 
20.31 	recreational, or remedial subjects as determined by the office except private career schools 
20.32 	required to obtain a private career school license due to the use of "academy," "institute," 
20.33 	"college," or "university" in their names unless the school used "academy" or "institute" in 
20.34 	its name prior to August 1, 2008;
21.1 	(10) classes, courses, or programs conducted by a bona fide trade, professional, or 
21.2 	fraternal organization, solely for that organization's membership;
21.3 	(11) programs in the fine arts provided by organizations exempt from taxation 
21.4 	under section 290.05 and registered with the attorney general under chapter 309. For 
21.5 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
21.6 	artistic performance of works of the imagination which are engaged in for the primary 
21.7 	purpose of creative expression rather than commercial sale or employment. In making 
21.8 	this determination the office may seek the advice and recommendation of the Minnesota 
21.9 	Board of the Arts;
21.10 	(12) classes, courses, or programs intended to fulfill the continuing education 
21.11 	requirements for licensure or certification in a profession, that have been approved by a 
21.12 	legislatively or judicially established board or agency responsible for regulating the practice 
21.13 	of the profession, and that are offered exclusively to an individual practicing the profession;
21.14 	(13) classes, courses, or programs intended to prepare students to sit for 
21.15 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
21.16 	entrance examinations;
21.17 	(14) classes, courses, or programs providing 16 or fewer clock hours of instruction 
21.18 	that are not part of the curriculum for an occupation or entry level employment except
21.19 	private career schools required to obtain a private career school license due to the use of 
21.20 	"academy," "institute," "college," or "university" in their names;
21.21 	(15) classes, courses, or programs providing instruction in personal development, 
21.22 	modeling, or acting;
21.23 	(16) training or instructional programs, in which one instructor teaches an individual 
21.24 	student, that are not part of the curriculum for an occupation or are not intended to prepare 
21.25 	a person for entry level employment;
21.26 	(17) private career schools with no physical presence in Minnesota, as determined 
21.27 	by the office, engaged exclusively in offering distance instruction that are located in and 
21.28 	regulated by other states or jurisdictions; and
21.29 	(18) private career schools providing exclusively training, instructional programs, 
21.30 	or courses where tuition, fees, and any other charges for a student to participate do not 
21.31 	exceed $100.

21.32 	Sec. 35. Minnesota Statutes 2014, section 197.75, subdivision 1, is amended to read:
21.33 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
21.34 	section.
21.35 	(b) "Commissioner" means the commissioner of veterans affairs.
22.1 	(c) "Deceased veteran" means a veteran who has died as a result of the person's 
22.2 	military service, as determined by the United States Veterans Administration, and who 
22.3 	was a resident of this state: (1) within six months of entering the United States armed 
22.4 	forces, or (2) for the six months preceding the veteran's date of death.
22.5 	(d) "Eligible child" means a person who:
22.6 	(1) is the natural or adopted child or stepchild of a deceased veteran; and
22.7 	(2) is a student making satisfactory academic progress at an eligible institution 
22.8 	of higher education.
22.9 	(e) "Eligible institution" means a postsecondary educational institution located in 
22.10 	this state that either (1) is operated by this state or the Board of Regents of the University 
22.11 	of Minnesota, or (2) is operated publicly or privately and, as determined by the office, 
22.12 	maintains academic standards substantially equivalent to those of comparable institutions 
22.13 	operated in this state is licensed or registered with the Office of Higher Education.
22.14 	(f) "Eligible spouse" means the surviving spouse of a deceased veteran.
22.15 	(g) "Eligible veteran" means a veteran who:
22.16 	(1) is a student making satisfactory academic progress at an eligible institution 
22.17 	of higher education;
22.18 	(2) had Minnesota as the person's state of residence at the time of the person's 
22.19 	enlistment or any reenlistment into the United States armed forces, as shown by the 
22.20 	person's federal form DD-214 or other official documentation to the satisfaction of the 
22.21 	commissioner;
22.22 	(3) except for benefits under this section, has no remaining military or veteran-related 
22.23 	educational assistance benefits for which the person may have been entitled; and
22.24 	(4) while using the educational assistance authorized in this section, remains a 
22.25 	resident student as defined in section 136A.101, subdivision 8.
22.26 	(h) "Satisfactory academic progress" has the meaning given in section 136A.101, 
22.27 	subdivision 10.
22.28 	(i) "Student" has the meaning given in section 136A.101, subdivision 7.
22.29 	(j) "Veteran" has the meaning given in section 197.447.

22.30 	Sec. 36. Minnesota Statutes 2014, section 261.23, is amended to read:
22.31 	261.23 COSTS OF HOSPITALIZATION.
22.32 	The costs of hospitalization of such indigent persons exclusive of medical and 
22.33 	surgical care and treatment shall not exceed in amount the full rates fixed and charged 
22.34 	by the Minnesota general hospital under the provisions of sections 158.01 to 158.11 for 
22.35 	the hospitalization of such indigent patients. For indigent persons hospitalized pursuant 
23.1 	to sections 261.21 to 261.232, the state shall pay 90 percent of the cost allowable under 
23.2 	the general assistance medical care program and ten percent of the allowable cost of 
23.3 	hospitalization shall be paid by the county of the residence of the indigent persons at 
23.4 	the times provided for in the contract; and in case of an injury or emergency requiring 
23.5 	immediate surgical or medical treatment, for a period not to exceed 72 hours, 90 percent 
23.6 	of the cost allowable under the general assistance medical care program shall be paid by 
23.7 	the state and ten percent of the cost shall be paid by the county from which the patient, if 
23.8 	indigent, is certified. State payments for services rendered pursuant to this section shall 
23.9 	be ratably reduced to the same extent and during the same time period as payments are 
23.10 	reduced under section 256D.03, subdivision 4, paragraph (c). If the county of residence 
23.11 	of the patient is not the county in which the patient has legal settlement for the purposes 
23.12 	of poor relief, then the county of residence may seek reimbursement from the county 
23.13 	in which the patient has settlement for the purposes of poor relief for all costs it has 
23.14 	necessarily incurred and paid in connection with the hospitalization of said patient.

23.15 	Sec. 37. REVISOR'S INSTRUCTION.
 23.16 	The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in 
23.17 	Column A to the references listed in Column B. The revisor shall also make necessary 
23.18 	cross-reference, grammatical, or terminology changes in Minnesota Statutes and 
23.19 	Minnesota Rules consistent with the renumbering, including changing the word "school" 
23.20 	to "private career school" wherever the word appears in sections 141.20 to 141.37.

23.21		Column A
	Column B
	
23.22		141.20
	136A.82
	
23.23		141.21
	136A.821
	
23.24		141.25
	136A.822
	
23.25		141.251
	136A.823
	
23.26		141.255
	136A.824
	
23.27		141.26
	136A.825
	
23.28		141.265
	136A.826
	
23.29		141.271
	136A.827
	
23.30		141.28
	136A.828
	
23.31		141.29
	136A.829
	
23.32		141.30
	136A.83
	
23.33		141.31
	136A.831
	
23.34		141.32
	136A.832
	
23.35		141.35
	136A.833
	
23.36		141.37
	136A.834

23.37 	Sec. 38.  REPEALER.
 24.1 	Minnesota Statutes 2014, sections 136A.862; 141.271, subdivisions 4 and 6; 158.01; 
24.2 	158.02; 158.03; 158.04; 158.05; 158.06; 158.07; 158.08; 158.09; 158.091; 158.10; 
24.3 	158.11; and 158.12, are repealed.

24.4 	ARTICLE 2
24.5 	POLICY CLARIFICATIONS

24.6 	Section 1. Minnesota Statutes 2014, section 136A.87, is amended to read:
24.7 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
24.8 	EDUCATION.
24.9 	The office shall make available to all residents beginning in 7th grade through 
24.10 	adulthood information about planning and preparing for postsecondary opportunities. 
24.11 	Information must be provided to all 7th grade students and their parents annually 
24.12 	by September 30 about planning for their postsecondary education. The office may 
24.13 	also provide information to high school students and their parents, to adults, and to 
24.14 	out-of-school youth. The information provided may include the following:
24.15 	(1) the need to start planning early;
24.16 	(2) the availability of assistance in educational planning from educational institutions 
24.17 	and other organizations;
24.18 	(3) suggestions for studying effectively during high school;
24.19 	(4) high school courses necessary to be adequately prepared for postsecondary 
24.20 	education;
24.21 	(5) encouragement to involve parents actively in planning for all phases of education;
24.22 	(6) information about postsecondary education and training opportunities existing 
24.23 	in the state, their respective missions and expectations for students, their preparation 
24.24 	requirements, admission requirements, and student placement;
24.25 	(7) ways to evaluate and select postsecondary institutions;
24.26 	(8) the process of transferring credits among Minnesota postsecondary institutions 
24.27 	and systems;
24.28 	(9) the costs of postsecondary education and the availability of financial assistance 
24.29 	in meeting these costs, including specific information about the Minnesota Promise and 
24.30 	achieve scholarship program;
24.31 	(10) the interrelationship of assistance from student financial aid, public assistance, 
24.32 	and job training programs; and
24.33 	(11) financial planning for postsecondary education.

25.1 	Sec. 2.  REPEALER.
 25.2 	Minnesota Statutes 2014, section 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 
25.3 	10, 10a, 11, and 14, are repealed.

25.4 	ARTICLE 3
25.5 	POLICY CHANGES

25.6 	Section 1. Minnesota Statutes 2014, section 136A.65, subdivision 4, is amended to read:
25.7 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have 
25.8 	its degree or degrees and name approved must substantially meet the following criteria:
25.9 	(1) the school has an organizational framework with administrative and teaching 
25.10 	personnel to provide the educational programs offered;
25.11 	(2) the school has financial resources sufficient to meet the school's financial 
25.12 	obligations, including refunding tuition and other charges consistent with its stated policy 
25.13 	if the institution is dissolved, or if claims for refunds are made, to provide service to the 
25.14 	students as promised, and to provide educational programs leading to degrees as offered;
25.15 	(3) the school operates in conformity with generally accepted budgeting and 
25.16 	accounting principles;
25.17 	(4) the school provides an educational program leading to the degree it offers;
25.18 	(5) the school provides appropriate and accessible library, laboratory, and other 
25.19 	physical facilities to support the educational program offered;
25.20 	(6) the school has a policy on freedom or limitation of expression and inquiry for 
25.21 	faculty and students which is published or available on request;
25.22 	(7) the school uses only publications and advertisements which are truthful and do 
25.23 	not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 
25.24 	school, its personnel, programs, services, or occupational opportunities for its graduates 
25.25 	for promotion and student recruitment;
25.26 	(8) the school's compensated recruiting agents who are operating in Minnesota 
25.27 	identify themselves as agents of the school when talking to or corresponding with students 
25.28 	and prospective students; and
25.29 	(9) the school provides information to students and prospective students concerning:
25.30 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
25.31 	suspension, and dismissal;
25.32 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
25.33 	and experience and for courses offered by the school;
25.34 	(iii) current schedules of fees, charges for tuition, required supplies, student 
25.35 	activities, housing, and all other standard charges;
26.1 	(iv) policies regarding refunds and adjustments for withdrawal or modification 
26.2 	of enrollment status; and
26.3 	(v) procedures and standards used for selection of recipients and the terms of 
26.4 	payment and repayment for any financial aid program.; and
26.5 	(10) the school must not withhold a student's official transcript because the student is 
26.6 	in arrears or in default on any loan issued by the school to the student if the loan qualifies 
26.7 	as an institutional loan under United States Code, title 11, section 523(a)(8).
26.8 	(b) An application for degree approval must also include:
26.9 	(i) title of degree and formal recognition awarded;
26.10 	(ii) location where such degree will be offered;
26.11 	(iii) proposed implementation date of the degree;
26.12 	(iv) admissions requirements for the degree;
26.13 	(v) length of the degree;
26.14 	(vi) projected enrollment for a period of five years;
26.15 	(vii) the curriculum required for the degree, including course syllabi or outlines;
26.16 	(viii) statement of academic and administrative mechanisms planned for monitoring 
26.17 	the quality of the proposed degree;
26.18 	(ix) statement of satisfaction of professional licensure criteria, if applicable;
26.19 	(x) documentation of the availability of clinical, internship, externship, or practicum 
26.20 	sites, if applicable; and
26.21 	(xi) statement of how the degree fulfills the institution's mission and goals, 
26.22 	complements existing degrees, and contributes to the school's viability.

26.23 	Sec. 2. Minnesota Statutes 2014, section 141.28, subdivision 6, is amended to read:
26.24 		Subd. 6.Financial aid payments. (a) All schools must collect, assess, and 
26.25 	distribute funds received from loans or other financial aid as provided in this subdivision.
26.26 	(b) Student loans or other financial aid funds received from federal, state, or local 
26.27 	governments or administered in accordance with federal student financial assistance 
26.28 	programs under title IV of the Higher Education Act of 1965, as amended, United States 
26.29 	Code, title 20, chapter 28, must be collected and applied as provided by applicable federal, 
26.30 	state, or local law or regulation.
26.31 	(c) Student loans or other financial aid assistance received from a bank, finance or 
26.32 	credit card company, or other private lender must be collected or disbursed as provided 
26.33 	in paragraphs (d) and (e).
26.34 	(d) Loans or other financial aid payments for amounts greater than $3,000 must 
26.35 	be disbursed:
27.1 	(1) in two equal disbursements, if the term length is more than four months. The 
27.2 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
27.3 	class with the remainder to be disbursed halfway through the term; or
27.4 	(2) in three equal disbursements, if the term length is more than six months. The 
27.5 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
27.6 	class, one-third of the way through the term, and two-thirds of the way through the term.
27.7 	(e) Loans or other financial aid payments for amounts less than $3,000 may be 
27.8 	disbursed as a single disbursement on the first day a student attends class, regardless 
27.9 	of term length.
27.10 	(f) No school may enter into a contract or agreement with, or receive any money 
27.11 	from, a bank, finance or credit card company, or other private lender, unless the private 
27.12 	lender follows the requirements for disbursements provided in paragraphs (d) and (e).
27.13 	(g) No school may withhold an official transcript for arrears or default on any loan 
27.14 	made by the school to a student if the loan qualifies as an institutional loan under United 
27.15 	States Code, title 11, section 523(a)(8).

27.16 	Sec. 3. REVISOR'S INSTRUCTION.
 27.17 	The revisor of statutes shall make any necessary cross-reference change in 
27.18 	Minnesota Statutes or Minnesota Rules resulting from repealers in this act.