1.1 	A bill for an act
1.2 	relating to higher education; modifying student aid reporting requirements; limiting 
1.3 	use of student fees for maintaining certain athletic facilities; permitting lease of 
1.4 	land for Rochester Community and Technical College; modifying American Indian 
1.5 	Scholars program eligibility; modifying provisions related to private career schools; 
1.6 	modifying provisions related to private and out-of-state public postsecondary 
1.7 	institutions; expanding eligibility for paid blood donation leave to include 
1.8 	employees of the Minnesota State Colleges and Universities; requiring 
1.9 	postsecondary institutions to provide priority registration for pregnant and parenting 
1.10 	students; requiring reports; appropriating money;amending Minnesota Statutes 
1.11 	2024, sections 43A.187; 135A.121, subdivision 2; 136A.053; 136A.091, 
1.12 	subdivisions 2, 9; 136A.121, subdivision 2; 136A.1215, subdivision 5; 136A.1241, 
1.13 	subdivision 8; 136A.125, subdivision 2; 136A.1274, subdivision 4; 136A.1275, 
1.14 	subdivision 4; 136A.1465, subdivision 10; 136A.233, subdivision 3; 136A.62, by 
1.15 	adding a subdivision; 136A.64, subdivisions 1, 5; 136A.65, subdivision 8; 
1.16 	136A.653, subdivisions 1b, 3a; 136A.672, subdivision 5; 136A.675, subdivision 
1.17 	1, by adding a subdivision; 136A.821, subdivisions 13, 16, 17; 136A.822, 
1.18 	subdivisions 4, 10, 12, by adding a subdivision; 136A.823, subdivisions 1, 3; 
1.19 	136A.826, subdivision 1; 136A.827, subdivisions 1, 4; 136A.828, subdivision 6; 
1.20 	136A.829, subdivisions 1, 3, as amended; 136A.8295, subdivision 5; 136A.83; 
1.21 	136G.03, subdivisions 30, 31, by adding a subdivision; 136G.05, subdivision 10; 
1.22 	136G.13, by adding a subdivision; 137.39, by adding a subdivision; 268.193, 
1.23 	subdivision 2; Minnesota Statutes 2025 Supplement, sections 135A.1582, 
1.24 	subdivisions 1, 2, 3; 136A.246, subdivision 1a; 136A.69, subdivision 1; 136A.82, 
1.25 	subdivision 1; 136A.821, subdivisions 5, 21; 136A.822, subdivisions 6, 8, 13; 
1.26 	136A.824, subdivisions 1, 2; 136A.833, subdivisions 1, 2; Laws 2025, First Special 
1.27 	Session chapter 5, article 1, section 3, subdivisions 1, 3; proposing coding for new 
1.28 	law in Minnesota Statutes, chapters 135A; 136A; repealing Minnesota Statutes 
1.29 	2024, sections 124D.09, subdivision 10a; 136A.657; 136A.827, subdivisions 1b, 
1.30 	2; 136A.834, subdivisions 2, 3, 4; 136G.03, subdivision 11; 136G.09, subdivision 
1.31 	10; Minnesota Statutes 2025 Supplement, section 136A.834, subdivisions 1, 5.
2.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.2 	Section 1. Minnesota Statutes 2024, section 43A.187, is amended to read:
2.3 	43A.187 BLOOD DONATION LEAVE.
2.4 	A state employee must be granted leave from work with 100 percent of pay to donate 
2.5 	blood at a location away from the place of work. The total amount of leave used under this 
2.6 	section may not exceed three hours in a 12-month period, and must be determined by the 
2.7 	employee. A state employee seeking leave from work under this section must provide 14 
2.8 	days' notice to the appointing authority. This leave must not affect the employee's vacation 
2.9 	leave, pension, compensatory time, personal vacation days, sick leave, earned overtime 
2.10 	accumulation, or cause a loss of seniority. For the purposes of this section, "state employee" 
2.11 	does not include an employee of the Minnesota State Colleges and Universities.

2.12 	Sec. 2. [135A.0435] ATHLETIC FEES.
2.13 	The Board of Trustees of the Minnesota State Colleges and Universities must not impose 
2.14 	or maintain any mandatory student fee or increase tuition for the purpose of maintaining 
2.15 	competitive athletic facilities. The Board of Regents of the University of Minnesota is 
2.16 	requested to consider adoption of a policy consistent with this section. Nothing in this section 
2.17 	prohibits the imposition of a mandatory fee or tuition increase for the purpose of maintaining 
2.18 	athletic facilities used solely or primarily for recreation by the general student body.

2.19 	Sec. 3. [135A.082] DEVELOPMENTAL COURSES.
2.20 	(a) For purposes of this section, "developmental course" means a postsecondary course 
2.21 	taken to prepare a student for college-level work that the postsecondary institution does not 
2.22 	grant credit for and that cannot be used to meet degree, diploma, or certificate requirements.
2.23 	(b) A public postsecondary institution that receives financial aid on behalf of students 
2.24 	under section 136A.121 must, before a student enrolls in a developmental course: (1) provide 
2.25 	the student with a clear, written explanation regarding the difference between a developmental 
2.26 	course and a course that provides credits that count toward graduation; and (2) require the 
2.27 	student to sign a written acknowledgment that the student understands the difference.

2.28 	Sec. 4. Minnesota Statutes 2024, section 135A.121, subdivision 2, is amended to read:
2.29 		Subd. 2.Eligibility. To be eligible each year for the program a student must:
3.1 	(1) be enrolled in an undergraduate certificate, diploma, or degree program at the 
3.2 	University of Minnesota or a Minnesota state college or university;
3.3 	(2) be either (i) a Minnesota student eligible for a resident for resident tuition purposes
3.4 	tuition rate who is an enrolled member or citizen of a federally recognized American Indian 
3.5 	Tribe or Canadian First Nation, or (ii) an enrolled member or citizen of a Minnesota Tribal 
3.6 	Nation, regardless of resident tuition status;
3.7 	(3) have not (i) obtained a baccalaureate degree, or (ii) been enrolled for 12 semesters 
3.8 	or the equivalent, excluding courses taken that qualify as developmental education or below 
3.9 	college-level; and
3.10 	(4) meet satisfactory academic progress as defined under section 136A.101, subdivision 
3.11 	10.

3.12 	Sec. 5. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 1, is amended 
3.13 	to read:
3.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
3.15 	the meanings given.
3.16 	(b) "Parenting student" means a student enrolled at a public college or university
3.17 	postsecondary institution who is the parent or legal guardian of or can claim as a dependent 
3.18 	a child under the age of 18.
3.19 	(c) "Postsecondary institution" means an institution governed by the Board of Trustees 
3.20 	of the Minnesota State Colleges and Universities or a private postsecondary institution that 
3.21 	offers in-person courses on a campus located in Minnesota and is an eligible institution as 
3.22 	defined in section 136A.103. Institutions governed by the Board of Regents of the University 
3.23 	of Minnesota are requested to comply with this section.
3.24 	(c)(d) "Pregnancy or related conditions" has the meaning given in Code of Federal 
3.25 	Regulations, title 34, section 106.2.
3.26 	(d) "Postsecondary institution" means an institution governed by the Board of Trustees 
3.27 	of the Minnesota State Colleges and Universities or a private postsecondary institution that 
3.28 	offers in-person courses on a campus located in Minnesota and is an eligible institution as 
3.29 	defined in section 136A.103. Institutions governed by the Board of Regents of the University 
3.30 	of Minnesota are requested to comply with this section.
3.31 	(e) "Priority registration" means an opportunity to register for courses before the opening 
3.32 	of general registration for the majority of undergraduate students.

4.1 	Sec. 6. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 2, is amended 
4.2 	to read:
4.3 		Subd. 2.Rights and protections. (a) A postsecondary institution may not require and 
4.4 	the University of Minnesota is requested not to require a pregnant or parenting student, 
4.5 	solely because of the student's status as a pregnant or parenting student or due to issues 
4.6 	related to the student's pregnancy or parenting, to:
4.7 	(1) take a leave of absence or withdraw from the student's degree or certificate program;
4.8 	(2) limit the student's studies;
4.9 	(3) participate in an alternative program;
4.10 	(4) change the student's major, degree, or certificate program; or
4.11 	(5) refrain from joining or cease participating in any course, activity, or program at the 
4.12 	college or universitypostsecondary institution.
4.13 	(b) A postsecondary institution shall provide and the University of Minnesota is requested 
4.14 	to provide reasonable modifications to a pregnant student, including modifications that:
4.15 	(1) would be provided to a student with a temporary medical condition; or
4.16 	(2) are related to the health and safety of the student and the student's unborn child, such 
4.17 	as allowing the student to maintain a safe distance from substances, areas, and activities 
4.18 	known to be hazardous to pregnant women or unborn children.
4.19 	(c) A postsecondary institution must and the University of Minnesota is requested to, 
4.20 	for reasons related to a student's pregnancy, childbirth, or any resulting medical status or 
4.21 	condition:
4.22 	(1) excuse the student's absence for a reasonable period of time as determined to be 
4.23 	medically necessary by a student's treating health care provider insofar as to not compromise 
4.24 	the fundamental outcomes of the academic course, program, or activity. If the postsecondary 
4.25 	institution has a student medical leave or student temporary disability policy that provides 
4.26 	a longer period of leave, the policy must be made available to students affected by pregnancy 
4.27 	and related conditions;
4.28 	(2) allow the student to make up missed assignments or assessments;
4.29 	(3) allow the student additional time to complete assignments in the same manner as the 
4.30 	institution allows for a student with a temporary medical condition; and
5.1 	(4) provide the student with access to instructional materials and video recordings of 
5.2 	lectures for classes for which the student has an excused absence under this section to the 
5.3 	same extent that instructional materials and video recordings of lectures are made available 
5.4 	to any other student with an excused absence.; and
5.5 	(5) ensure the benefits and services provided to students affected by pregnancy are no 
5.6 	less than those provided to students with temporary medical conditions.
5.7 	(d) A postsecondary institution must and the University of Minnesota is requested to 
5.8 	allow a pregnant or parenting student to:
5.9 	(1) take a leave of absence for a reasonable period of time as determined to be medically 
5.10 	necessary by a student's treating health care provider or the health care provider of the 
5.11 	parenting student's child insofar as to not compromise the fundamental outcomes of the 
5.12 	academic course, program, or activity. If the postsecondary institution has a student medical 
5.13 	leave or student temporary disability policy that provides a longer period of leave, the policy 
5.14 	must be made available to students affected by pregnancy and related conditions and to 
5.15 	parenting students; and
5.16 	(2) if in good academic standing at the time the student takes a leave of absence, return 
5.17 	to the student's degree or certificate program in good academic standing without being 
5.18 	required to reapply for admission.; and
5.19 	(3) obtain reasonable modifications, including an excused absence for parenting students 
5.20 	to attend to their child's health care needs, unless the modification would compromise the 
5.21 	fundamental outcomes of the academic course, program, or activity.
5.22 	(e) If a postsecondary institution provides early registration for courses or programs at 
5.23 	the institution for any group of students, the institution must provide and the University of 
5.24 	Minnesota is requested to provide early registration for those courses or programs for 
5.25 	pregnant or parenting students in the same manner. Priority registration for parenting students 
5.26 	shall include the following considerations:
5.27 	(1) automatically assign eligible pregnant and parenting students a registration window 
5.28 	time that occurs no later than the earliest undergraduate registration period offered;
5.29 	(2) ensure that priority registration is granted without a separate petition, discretionary 
5.30 	approval, or case-by-case determination beyond verification of parenting status;
5.31 	(3) annual notification provided to all enrolled students describing the rights and 
5.32 	protections afforded to pregnant and parenting students;
6.1 	(4) provide notification of the priority registration process to each student who 
6.2 	self-identifies as a pregnant or parenting student; and
6.3 	(5) publish information regarding programs, services, and student rights specific to 
6.4 	parenting students on the postsecondary institution's website.
6.5 	(f) Postsecondary institutions must adopt policies and procedures to implement this 
6.6 	subdivision. The Board of Regents of the University of Minnesota is requested to comply 
6.7 	with this subdivision.

6.8 	Sec. 7. Minnesota Statutes 2025 Supplement, section 135A.1582, subdivision 3, is amended 
6.9 	to read:
6.10 		Subd. 3.Policy on discrimination. Each postsecondary institution must adopt and the 
6.11 	University of Minnesota is requested to adopt a policy for students on pregnancy and 
6.12 	parenting discrimination. The policy must:
6.13 	(1) include the contact information of the Title IX coordinator who is the designated 
6.14 	point of contact for a student requesting each protection or modification under this section. 
6.15 	Contact information must include the Title IX coordinator's name, phone number, email, 
6.16 	and office;
6.17 	(2) be posted in an easily accessible, straightforward format on the college or university's
6.18 	postsecondary institution's website; and
6.19 	(3) be made available annually to faculty, staff, and employees of the college or university
6.20 	postsecondary institution.

6.21 	Sec. 8. Minnesota Statutes 2024, section 136A.053, is amended to read:
6.22 	136A.053 CONSOLIDATED STUDENT AID REPORTING.
6.23 	(a) The commissioner of the Office of Higher Education shall report annually beginning 
6.24 	February 15, 2026, to the chairs and ranking minority members of the legislative committees 
6.25 	with jurisdiction over higher education, on the details of programs administered under 
6.26 	sections 136A.091to 136A.1276, 136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126, 
6.27 	136A.1274, 136A.1275,136A.1465, and 136A.231 to 136A.246 136A.233, including the:
6.28 	(1) total funds appropriated and expended;
6.29 	(2) total number of students applying for funds;
6.30 	(3) total number of students receiving funds;
7.1 	(4) average and total award amounts;
7.2 	(5) summary demographic data on award recipients;
7.3 	(6) retention rates of award recipients;
7.4 	(7) completion rates of award recipients;
7.5 	(8) average cumulative debt at exit or graduation; and
7.6 	(9) average time to completion.
7.7 	(b) Data must be disaggregated by aid program, institution, aid year, race and ethnicity, 
7.8 	gender, income,socioeconomic status, family type, dependency status, and any other factors 
7.9 	determined to be relevant by the commissioner, as available. The commissioner must report 
7.10 	any additional data and outcomes relevant to the evaluation of programs administered under 
7.11 	sections 136A.091 to 136A.1276, 136A.121, 136A.1215, 136A.1241, 136A.125, 136A.126, 
7.12 	136A.1274, 136A.1275, 136A.1465, and 136A.231 to 136A.246136A.233 as evidenced 
7.13 	by activities funded under each program.

7.14 	Sec. 9. Minnesota Statutes 2024, section 136A.091, subdivision 2, is amended to read:
7.15 		Subd. 2.Eligibility. To be eligible for a program stipend, a student shall:
7.16 	(1) be a resident of Minnesota student under section 136A.101, subdivision 8;
7.17 	(2) attend an eligible office-approved program;
7.18 	(3) be in grades 3 through 12, but not have completed high school;
7.19 	(4) meet income requirements for free or reduced-price school meals; and
7.20 	(5) be 19 years of age or younger.

7.21 	Sec. 10. Minnesota Statutes 2024, section 136A.091, subdivision 9, is amended to read:
7.22 		Subd. 9.Report. Annually, the office shall submit a report to the legislative committees 
7.23 	with jurisdiction over higher education finance regarding the program providers, stipend 
7.24 	recipients, and program activities. The report shall include information about the students 
7.25 	served, the organizations providing services, program goals and outcomes, and student 
7.26 	outcomes in accordance with section 136A.053.

8.1 	Sec. 11. Minnesota Statutes 2024, section 136A.121, subdivision 2, is amended to read:
8.2 		Subd. 2.Eligibility for grants. (a) An applicant is eligible to be considered for a grant, 
8.3 	regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections 
8.4 	136A.095 to 136A.131 if the office finds that the applicant:
8.5 	(1) is a resident of the state of Minnesota student under section 136A.101, subdivision 
8.6 	8;
8.7 	(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over, 
8.8 	and has met all requirements for admission as a student to an eligible college or technical 
8.9 	college of choice as defined in sections 136A.095 to 136A.131;
8.10 	(3) has met the financial need criteria established in Minnesota Rules;
8.11 	(4) is not in default, as defined by the office, of any federal or state student educational 
8.12 	loan;
8.13 	(5) is not more than 30 days in arrears in court-ordered child support that is collected or 
8.14 	enforced by the public authority responsible for child support enforcement or, if the applicant 
8.15 	is more than 30 days in arrears in court-ordered child support that is collected or enforced 
8.16 	by the public authority responsible for child support enforcement, but is complying with a 
8.17 	written payment agreement under section 518A.69 or order for arrearages; and
8.18 	(6) has not been convicted of or pled nolo contendere or guilty to a crime involving 
8.19 	fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations, 
8.20 	subtitle B, chapter VI, part 668, subpart C.
8.21 	(b) A student is entitled to an additional semester or the equivalent of grant eligibility 
8.22 	if the student withdraws from enrollment:
8.23 	(1) for active military service after December 31, 2002, because the student was ordered 
8.24 	to active military service as defined in section 190.05, subdivision 5b or 5c;
8.25 	(2) for a serious health condition, while under the care of a medical professional, that 
8.26 	substantially limits the student's ability to complete the term; or
8.27 	(3) while providing care that substantially limits the student's ability to complete the 
8.28 	term to the student's spouse, child, or parent who has a serious health condition.

8.29 	Sec. 12. [136A.1212] FRAUD; DENIAL OF FUNDING.
8.30 	Applicants or recipients of any student aid or grant program administered under chapter 
8.31 	136A may be denied funding if the applicant or recipient:
9.1 	(1) presents information concerning the financial aid or grant application that is false, 
9.2 	fraudulent, misleading, deceptive, or inaccurate in a material respect;
9.3 	(2) refuses to allow reasonable inspection or to supply reasonable information after a 
9.4 	written request by the office or school has been received; or
9.5 	(3) has been determined by the commissioner or judicially determined to have committed 
9.6 	fraud or a material violation of law involving federal, state, or local government funding.

9.7 	Sec. 13. Minnesota Statutes 2024, section 136A.1215, subdivision 5, is amended to read:
9.8 		Subd. 5.Reporting. By February 15 of each year, the commissioner of higher education 
9.9 	must submit a report on the details of the program under this section to the legislative 
9.10 	committees with jurisdiction over higher education finance and policy. The report must 
9.11 	include the following information, broken out by postsecondary institution: Annually, the 
9.12 	office must submit a report in accordance with section 135A.053.
9.13 	(1) the number of students receiving an award;
9.14 	(2) the average and total award amounts; and
9.15 	(3) summary demographic data on award recipients.

9.16 	Sec. 14. Minnesota Statutes 2024, section 136A.1241, subdivision 8, is amended to read:
9.17 		Subd. 8.Report. (a)Annually, the office shall prepare an anonymized report to be 
9.18 	submitted annually to the chairperson and minority chairperson of the legislative committees 
9.19 	with jurisdiction over higher education that contains: must submit a report in accordance 
9.20 	with section 136A.053.
9.21 	(1) the number of students receiving foster grants and the institutions attended; and
9.22 	(2) annual retention and graduation data on students receiving foster grants.
9.23 	(b) The report required under this subdivision may be combined with other legislatively 
9.24 	required reporting. If submitted as a separate report, the report must be submitted by January 
9.25 	15.

9.26 	Sec. 15. Minnesota Statutes 2024, section 136A.125, subdivision 2, is amended to read:
9.27 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if the 
9.28 	applicant:
9.29 	(1) is a resident of the state of Minnesota student under section 136A.101, subdivision 
9.30 	8, or the applicant's spouse is a resident of the state of Minnesota;
10.1 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled 
10.2 	as defined in section 125A.02, and who is receiving or will receive care on a regular basis 
10.3 	from a licensed or legal, nonlicensed caregiver;
10.4 	(3) is income eligible as determined by the office's policies and rules, but is not a recipient 
10.5 	of assistance from the Minnesota family investment program;
10.6 	(4) has not received child care grant funds for a period of ten semesters or the equivalent;
10.7 	(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate, 
10.8 	graduate, or professional degree, diploma, or certificate;
10.9 	(6) is enrolled in at least one credit in an undergraduate program or one credit in a 
10.10 	graduate or professional program in an eligible institution; and
10.11 	(7) is in good academic standing and making satisfactory academic progress.
10.12 	(b) A student is entitled to an additional semester or equivalent of grant eligibility and 
10.13 	will be considered to be in continuing enrollment status upon return if the student withdraws 
10.14 	from enrollment:
10.15 	(1) for active military service after December 31, 2002, because the student was ordered 
10.16 	to active military service as defined in section 190.05, subdivision 5b or 5c;
10.17 	(2) for a serious health condition, while under the care of a medical professional, that 
10.18 	substantially limits the student's ability to complete the term; or
10.19 	(3) while providing care that substantially limits the student's ability to complete the 
10.20 	term to the student's spouse, child, or parent who has a serious health condition.

10.21 	Sec. 16. Minnesota Statutes 2024, section 136A.1274, subdivision 4, is amended to read:
10.22 		Subd. 4.Reporting. By February 15 of each year, the commissioner must submit a 
10.23 	report on the details of the program under this section to the legislative committees with 
10.24 	jurisdiction over E-12 and higher education finance and policy. The report must include the 
10.25 	following information: Annually, the office must submit a report in accordance with section 
10.26 	136A.053. Additionally, the report must be submitted to the chairs and ranking minority 
10.27 	members of the legislative committees with jurisdiction over E-12 finance and policy.
10.28 	(1) the number of eligible applicants and the number of teacher candidates receiving an 
10.29 	award, each broken down by postsecondary institution;
10.30 	(2) the total number of awards, the total dollar amount of all awards, and the average 
10.31 	award amount; and
11.1 	(3) other summary data identified by the commissioner as outcome indicators.

11.2 	Sec. 17. Minnesota Statutes 2024, section 136A.1275, subdivision 4, is amended to read:
11.3 		Subd. 4.Reporting. (a) By February 1 of each year, the commissioner must submit a 
11.4 	report to the chairs and ranking minority members of the legislative committees with 
11.5 	jurisdiction over E-12 and higher education finance and policy. The report must include the 
11.6 	following information: Annually, the office must submit a report in accordance with section 
11.7 	136A.053. Additionally, the report must include
11.8 	(1) the total number of awards, the total dollar amount of all awards, and the average 
11.9 	award amount;
11.10 	(2) the number of eligible applicants and the number of student teachers receiving an 
11.11 	award, each broken down by postsecondary institution;
11.12 	(3) the licensure areas and school districts in which the student teachers taught; and must 
11.13 	be submitted to the chairs and ranking minority members of the legislative committees with 
11.14 	jurisdiction over E-12 finance and policy.
11.15 	(4) other summary data identified by the commissioner as outcome indicators, including 
11.16 	how many student teachers awarded a rural teacher grant were employed in a rural school 
11.17 	district after graduation.
11.18 	(b) By July 1 of each odd numbered year, the commissioner must update and post on 
11.19 	the office's website a list of licensure shortage areas eligible for a grant under this section.

11.20 	Sec. 18. Minnesota Statutes 2024, section 136A.1465, subdivision 10, is amended to read:
11.21 		Subd. 10.Report. The commissioner of higher education shall submit a preliminary 
11.22 	report by September 1, 2025, and an annual report beginning February 15, 2026, to the 
11.23 	chairs and ranking minority members of the legislative committees with jurisdiction over 
11.24 	higher education, on the details of the program, including the: Annually, the office must 
11.25 	submit a report in accordance with section 136A.053.
11.26 	(1) status of the scholarship fund; and
11.27 	(2) North Star Promise participation data aggregated for each eligible institution to show 
11.28 	the:
11.29 	(i) number of eligible students who received scholarships in the prior academic year;
11.30 	(ii) average and total award amounts;
12.1 	(iii) summary demographic data on award recipients;
12.2 	(iv) total number of students enrolled in eligible institutions in the prior academic year;
12.3 	(v) retention rates of participating students; and
12.4 	(vi) number of eligible students who graduated with a degree and, for each eligible 
12.5 	student, the number of consecutive semesters and nonconsecutive semesters attended prior 
12.6 	to graduation.

12.7 	Sec. 19. Minnesota Statutes 2024, section 136A.233, subdivision 3, is amended to read:
12.8 		Subd. 3.Payments. Work-study payments shall be made to eligible students by 
12.9 	postsecondary institutions as provided in this subdivision.
12.10 	(a) Students shall be selected for participation in the program by the postsecondary 
12.11 	institution on the basis of student financial need.
12.12 	(b) In selecting students for participation, priority must be given to students enrolled for 
12.13 	at least 12 credits. In each academic year, a student may be awarded work-study payments 
12.14 	for one period of nonenrollment or less than half-time enrollment if the student will enroll 
12.15 	on at least a half-time basis during the following academic term.
12.16 	(c) Students will be paid for hours actually worked and the maximum hourly rate of pay 
12.17 	shall not exceed the maximum hourly rate of pay permitted under the federal college 
12.18 	work-study program.
12.19 	(d) Minimum pay rates will be determined by an applicable federal or state law.
12.20 	(e) The office shall annually establish a minimum percentage rate of student compensation 
12.21 	to be paid by an eligible employer.
12.22 	(f) Each postsecondary institution receiving money for state work-study grants shall 
12.23 	make a reasonable effort to place work-study students in employment with eligible employers 
12.24 	outside the institution. However, a public employer other than the institution may not 
12.25 	terminate, lay off, or reduce the working hours of a permanent employee for the purpose 
12.26 	of hiring a work-study student, or replace a permanent employee who is on layoff from the 
12.27 	same or substantially the same job by hiring a work-study student.
12.28 	(g) The percent of the institution's work-study allocation provided to graduate students 
12.29 	shall not exceed the percent of graduate student enrollment at the participating institution.
12.30 	(h) An institution may use up to 30 percent of its allocation for student internships with 
12.31 	private, for-profit employers.

13.1 	Sec. 20. Minnesota Statutes 2025 Supplement, section 136A.246, subdivision 1a, is 
13.2 	amended to read:
13.3 		Subd. 1a.Definitions. (a) The terms defined in this subdivision apply to this section.
13.4 	(b) "Competency standard" has the meaning given in section 175.45, subdivision 2.
13.5 	(c) "Eligible training" means training provided by an eligible training provider that:
13.6 	(1) includes training to meet one or more identified competency standards;
13.7 	(2) is instructor-led for a majority of the training or leads to an accredited certificate, 
13.8 	diploma, or degree issued by a postsecondary institution; and
13.9 	(3) results in the employee receiving an industry-recognized degree, certificate, or 
13.10 	credential.
13.11 	(d) "Eligible training provider" means an institution:
13.12 	(1) operated by the Board of Trustees of the Minnesota State Colleges and Universities 
13.13 	or the Board of Regents of the University of Minnesota;
13.14 	(2) licensed or registered as a postsecondary institution by the office; or
13.15 	(3) exempt from the provisions of section 136A.822 to 136A.834 or 136A.61 to 136A.71
13.16 	as approved by the office.
13.17 	(e) "Industry-recognized degrees, certificates, or credentials" means:
13.18 	(1) accredited certificates, diplomas, or degrees issued by a postsecondary institution;
13.19 	(2) registered apprenticeship certifications or certificates;
13.20 	(3) occupational licenses or registrations;
13.21 	(4) certifications issued by, or recognized by, industry or professional associations; and
13.22 	(5) other certifications as approved by the commissioner.

13.23 	Sec. 21. Minnesota Statutes 2024, section 136A.62, is amended by adding a subdivision 
13.24 	to read:
13.25 		Subd. 3b.Institution. "Institution" means school, as defined in this section.

13.26 	Sec. 22. Minnesota Statutes 2024, section 136A.64, subdivision 1, is amended to read:
13.27 		Subdivision 1.Schools to provide information. As a basis for registration, schools 
13.28 	shall provide the office with such information as the office needs to determine the nature 
14.1 	and activities of the school, including but not limited to the following which shall be 
14.2 	accompanied by an affidavit attesting to its accuracy and truthfulness:
14.3 	(1) articles of incorporation, constitution, bylaws, or other operating documents;
14.4 	(2) a duly adopted statement of the school's mission and goals;
14.5 	(3) evidence of current school or program licenses granted by departments or agencies 
14.6 	of any state;
14.7 	(4) compliance audits and audited financial statements that meet the requirements of 
14.8 	Code of Federal Regulations, title 34, section 668.23; United States Code, title 20, chapter 
14.9 	28, section 1094; Code of Federal Regulations, title 2, subpart A, part 200, subpart F, under 
14.10 	200.501 and 200.503; and United States Code, title 31, chapter 75, which shall be submitted 
14.11 	to the office on the same schedule stated under section 136A.675, subdivision 1a, paragraph 
14.12 	(a);
14.13 	(5) all current promotional and recruitment materials and advertisements; and
14.14 	(6) the current school catalog and, if not contained in the catalog:
14.15 	(i) the members of the board of trustees or directors, if any;
14.16 	(ii) the current institutional officers;
14.17 	(iii) current full-time and part-time faculty with degrees held or applicable experience;
14.18 	(iv) a description of all school facilities;
14.19 	(v) a description of all current course offerings;
14.20 	(vi) all requirements for satisfactory completion of courses, programs, and degrees;
14.21 	(vii) the school's policy about freedom or limitation of expression and inquiry;
14.22 	(viii) a current schedule of fees, charges for tuition, required supplies, student activities, 
14.23 	housing, and all other standard charges;
14.24 	(ix) the school's policy about refunds and adjustments;
14.25 	(x) the school's policy about granting credit for prior education, training, and experience;
14.26 	(xi) the school's policies about student admission, evaluation, suspension, and dismissal; 
14.27 	and
14.28 	(xii) the school's disclosure to students on the student complaint process under section 
14.29 	136A.672; and
15.1 	(7) enrollment data by academic term or calendar period following the submission 
15.2 	schedules in section 136A.675, subdivision 1a, paragraph (b).

15.3 	Sec. 23. Minnesota Statutes 2024, section 136A.64, subdivision 5, is amended to read:
15.4 		Subd. 5.Public information. All information submitted to the office is public information 
15.5 	except financial records, student complaint data, and accreditation records and reports. 
15.6 	Except for accreditation reports, The office may disclose any records or information 
15.7 	submitted to the office:
15.8 	(1) to law enforcement officials; or
15.9 	(2) in connection with a legal or administrative proceeding to:
15.10 	(i) defend its decision to approve or disapprove granting of degrees or the use of a name;
15.11 	(ii) defend its decision to revoke the institution's approval; or
15.12 	(iii) enforce a requirement of law.

15.13 	Sec. 24. Minnesota Statutes 2024, section 136A.65, subdivision 8, is amended to read:
15.14 		Subd. 8.Disapproval of registration; appeal. (a) By giving written notice and reasons 
15.15 	to the school, the office may:
15.16 	(1) revoke, suspend, or refuse to renew registration;
15.17 	(2) refuse approval of a school's degree; and
15.18 	(3) refuse approval of the use of a regulated term in its name.
15.19 	(b) Reasons for revocation or suspension of registration or approval may be for one or 
15.20 	more of the following reasons:
15.21 	(1) violating the provisions of sections 136A.61 to 136A.71;
15.22 	(2) providing false, misleading, or incomplete information to the office;
15.23 	(3) presenting information about the school which is false, fraudulent, misleading, 
15.24 	deceptive, or inaccurate in a material respect to students or prospective students;
15.25 	(4) refusing to allow reasonable inspection or to supply reasonable information after a 
15.26 	written request by the office has been received;
15.27 	(5) failing to have enrollment within the last two years at the school;
16.1 	(6) failing to have any enrollment within two years of a program's approval, except for 
16.2 	programs that require extensive approval processes by the United States Department of 
16.3 	Education, or the program's institutional or programmatic accreditor; or
16.4 	(7) having been administratively determined by the commissioner or judicially determined 
16.5 	to have committed fraud or any other material violation of law involving federal, state, or 
16.6 	local government funds.
16.7 	(c) Any order refusing, revoking, or suspending a school's registration, approval of a 
16.8 	school's degree, or use of a regulated term in the school's name is appealable in accordance 
16.9 	with chapter 14. The request must be in writing and made to the office within 30 days of 
16.10 	the date the school is notified of the action of the office. If a school has been operating and 
16.11 	its registration has been revoked, suspended, or refused by the office, the order is not effective 
16.12 	until the final determination of the appeal, unless immediate effect is ordered by the court.

16.13 	Sec. 25. Minnesota Statutes 2024, section 136A.653, subdivision 1b, is amended to read:
16.14 		Subd. 1b.Tribal colleges. A Tribal college is exempted from the provisions of sections 
16.15 	136A.61 to 136A.71. A Tribal college that is exempt may voluntarily waive its exception
16.16 	exemption by registering under section 136A.63. Upon registration, the Tribal college is 
16.17 	subject to all applicable requirements of sections 136A.61 to 136A.71.

16.18 	Sec. 26. Minnesota Statutes 2024, section 136A.653, subdivision 3a, is amended to read:
16.19 		Subd. 3a.Tuition-free educational courses. A school course or program, including a 
16.20 	school course or program using an online platform service, offering training, courses, or 
16.21 	programs is exempt from sections 136A.61 to 136A.71, to the extent tuition, fees, and any 
16.22 	other charges for a student to participate do not exceed two percent of the most recent 
16.23 	average undergraduate tuition and required fees as of January 1 of the current year charged 
16.24 	for full-time students at all degree-granting institutions as published annually by the United 
16.25 	States Department of Education as of January 1 of each year. To qualify for an exemption, 
16.26 	a school or online platform service must prominently display a notice comparable to the 
16.27 	following: "IMPORTANT: Each educational institution makes its own decision regarding 
16.28 	whether to accept completed coursework for credit. Check with your university or college."

16.29 	Sec. 27. Minnesota Statutes 2024, section 136A.672, subdivision 5, is amended to read:
16.30 		Subd. 5.Appeals. Any order requiring remedial action by the school or assigning a 
16.31 	penalty under section 136A.705 is appealable in accordance with chapter 14. The request 
16.32 	for an appeal must be made in writing to the office within 30 days of the date the school is 
17.1 	notified of the action of the office. The court shall award costs and reasonable attorney fees 
17.2 	in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the 
17.3 	merits in an action brought under this section; and (2) the school has a net income from 
17.4 	student tuition, fees, and other required institutional charges collected from the last fiscal 
17.5 	year of $1,000,000 or greater.

17.6 	Sec. 28. Minnesota Statutes 2024, section 136A.675, subdivision 1, is amended to read:
17.7 		Subdivision 1.Standard development and usage. (a) To screen and detect whether an 
17.8 	institution may not be financially or administratively responsible, the office shall develop
17.9 	use financial and nonfinancial indicators. The development of financial and nonfinancial 
17.10 	indicators shall use industry standards as guidance.
17.11 	(b) Annually, the office must provide a copy of the financial and nonfinancial indicators 
17.12 	to each registered institution and post a list of reviewed indicators on the office website.
17.13 	(c) The office shall use regularly reported data submitted to the federal government or 
17.14 	other regulatory or accreditation agencies wherever possible.
17.15 	(d) The office must use the indicators in this subdivision to identify institutions at 
17.16 	potential risk of being unable to meet the standards established under sections 136A.646; 
17.17 	136A.64, subdivision 3; 136A.65, subdivisions 1a and 4, paragraph (a), clauses (1), (2), (3), 
17.18 	and (7); and 136A.685 and thus unlikely to meet its financial obligations or complete its 
17.19 	academic terms for the next 18 months.

17.20 	Sec. 29. Minnesota Statutes 2024, section 136A.675, is amended by adding a subdivision 
17.21 	to read:
17.22 		Subd. 1a.Institutional reporting schedules for audits and enrollment data. (a) An 
17.23 	institution must submit to the office the required audit reports under section 136A.64, 
17.24 	subdivision 1, clause (4), by the earlier of 30 days after the issuance date of an audit or nine 
17.25 	months after the last day of the institution's fiscal year.
17.26 	(b) An institution must submit to the office the enrollment data required under section 
17.27 	136A.64, subdivision 1, clause (7), using one of the two following schedules:
17.28 	(1) a school with limited program start dates within its academic year shall provide the 
17.29 	office with a copy of the school's internal enrollment report for each academic term as soon 
17.30 	as it is released internally. The school may provide the report with no additional data or 
17.31 	required calculations; or
18.1 	(2) a school with multiple or rolling program start dates must provide enrollment data 
18.2 	to the office at least four times per year. Each school must determine four reporting dates 
18.3 	per year that would result in the most useful data being provided to the office and must 
18.4 	provide the office with the school's proposed enrollment reporting schedule.

18.5 	Sec. 30. Minnesota Statutes 2025 Supplement, section 136A.69, subdivision 1, is amended 
18.6 	to read:
18.7 		Subdivision 1.Registration fees. (a) The office shall collect reasonable registration fees 
18.8 	that are sufficient to recover, but do not exceed, its costs of administering the registration 
18.9 	program. The office shall charge the fees listed in paragraphs (b) to (d) and (c) for new 
18.10 	registrations.
18.11 	(b) A new school must pay registration fees based on the institution's total full-time 
18.12 	equivalent enrollment in the following amounts:
18.13 	(1) $5,000 for institutions with 2,500 or fewer full-time equivalent enrollment;
18.14 	(2) $7,500 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
18.15 	(3) $10,000 for institutions with 5,001 to 7,500 full-time equivalent enrollment;
18.16 	(4) $15,000 for institutions with 7,501 to 10,000 full-time equivalent enrollment; and
18.17 	(5) $20,000 for institutions with 10,001 or greater full-time equivalent enrollment, and 
18.18 	for institutions with no data on the previous year's full-time equivalent enrollment.
18.19 	Full-time equivalent enrollment is established using the previous year's full-time equivalent 
18.20 	enrollment as established in the United States Department of Education Integrated 
18.21 	Postsecondary Education Data System. If enrollment cannot be established using the United 
18.22 	States Department of Education Integrated Postsecondary Education Data System, the office 
18.23 	may establish an institution's full-time equivalent enrollment through verification of its 
18.24 	enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
18.25 	(c) A new school must pay registration fees in an amount equal to the fee under paragraph 
18.26 	(b), plus fees for each nondegree program or degree as follows:

18.27	nondegree program
	$250
	
18.28	degree program
	$750
	
18.29 	(d) In addition to the fees under paragraphs (b) and (c), a fee of $600 must be paid for 
18.30 	an initial application that: (1) has had four revisions, corrections, amendment requests, or 
18.31 	application reminders for the same application or registration requirement; or (2) cumulatively 
18.32 	has had six revisions, corrections, amendment requests, or application reminders for the 
19.1 	same license application and the school seeks to continue with the application process with 
19.2 	additional application submissions. If this fee is paid, the school may submit two final 
19.3 	application submissions for review prior to application denial under section 136A.65, 
19.4 	subdivision 8. This provision excludes from its scope nonrepetitive questions or clarifications 
19.5 	initiated by the school before the submission of the application, initial interpretation questions 
19.6 	or inquiries from the office regarding a completed application, and initial requests from the 
19.7 	office for verification or validation of a completed application.
19.8 	(e) (d) The annual renewal registration fee is based on an institution's total full-time 
19.9 	equivalent enrollment in the following amounts:
19.10 	(1) $1,500 for institutions with 2,500 or fewer full-time equivalent enrollment;
19.11 	(2) $3,000 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
19.12 	(3) $5,000 for institutions with 5,001 to 10,000 full-time equivalent enrollment; and
19.13 	(4) $7,500 for institutions with 10,001 or greater full-time equivalent enrollment, and 
19.14 	for institutions with no data on the previous year's full-time equivalent enrollment.
19.15 	Full-time equivalent enrollment is established using the previous year's full-time equivalent 
19.16 	enrollment as established in the United States Department of Education Integrated 
19.17 	Postsecondary Education Data System. If enrollment cannot be established using the United 
19.18 	States Department of Education Integrated Postsecondary Education Data System, the office 
19.19 	may establish an institution's full-time equivalent enrollment through verification of its 
19.20 	enrollment data submitted in accordance with section 136A.64, subdivision 1, clause (7).
19.21 	(f) In addition to the fee under paragraph (e), a fee of $600 must be paid for a renewal 
19.22 	application that: (1) has had four revisions, corrections, amendment requests, or application 
19.23 	reminders for the same application or registration requirement; or (2) cumulatively has had 
19.24 	six revisions, corrections, amendment requests, or application reminders for the same license 
19.25 	application and the school seeks to continue with the application process with additional 
19.26 	application submissions. If this fee is paid, the school may submit two final application 
19.27 	submissions for review prior to application denial under section 136A.65, subdivision 8. 
19.28 	This provision excludes from its scope nonrepetitive questions or clarifications initiated by 
19.29 	the school before the submission of the application, initial interpretation questions or inquiries 
19.30 	from the office regarding a completed application, and initial requests from the office for 
19.31 	verification or validation of a completed application.

20.1 	Sec. 31. Minnesota Statutes 2025 Supplement, section 136A.82, subdivision 1, is amended 
20.2 	to read:
20.3 		Subdivision 1.Policy. The legislature has found and hereby declares that the availability 
20.4 	of legitimate vocational programs offered by responsible nonprofit and for-profit private 
20.5 	career schools are in the best interests of the people of this state. The legislature has found 
20.6 	and declares that the state can provide assistance and protection for persons choosing 
20.7 	vocational programs by establishing policies and procedures to ensure the authenticity and 
20.8 	legitimacy of vocational programs offered by nonprofit and for-profit private career schools. 
20.9 	The legislature has found and declares that this same policy applies to any nonprofit and 
20.10 	for-profit private career schools located in another state or country that offers or makes 
20.11 	available to a Minnesota resident any vocational program which does not require leaving 
20.12 	the state for its completion.

20.13 	Sec. 32. Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 5, is amended 
20.14 	to read:
20.15 		Subd. 5.Private career school. "Private career school" means a person who maintains 
20.16 	a physical presence for any program at less than an associate degree level. Except for those 
20.17 	required to obtain a license exclusively to participate in state financial aid or be listed on 
20.18 	the eligible training provider list, access WIOA funding, or receive the dual training grant, 
20.19 	private career school does not extend to:
20.20 	(1) public postsecondary institutions with a physical presence in Minnesota;
20.21 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
20.22 	(3) postsecondary institutions exempt from registration under section 136A.653, 
20.23 	subdivisions 1b, 2, 3, and 3a; 136A.657;, or 136A.658 due to the nature of the institution's 
20.24 	programs;
20.25 	(4) schools persons, programs, or courses exclusively engaged in training physically or 
20.26 	mentally disabled persons;
20.27 	(5) persons, programs, or courses taught to students in an apprenticeship program 
20.28 	registered by the United States Department of Labor or Minnesota Department of Labor 
20.29 	and taught by or required by a trade union in which students are not responsible for tuition, 
20.30 	fees, or any other charges, regardless of payment or reimbursement method;
20.31 	(6) persons, programs, or courses contracted by persons or government agencies for the 
20.32 	training of their own employees for which no fee is charged to the employee, regardless of 
20.33 	whether that fee is reimbursed by the employer or a third party after the employee 
21.1 	successfully completes the training, except for institutions or programs required to obtain 
21.2 	a limited license exclusively to receive the dual training grant;
21.3 	(7) schools persons, programs, or courses with no physical presence in Minnesota engaged 
21.4 	exclusively in offering distance programs that are located in and approved by other states 
21.5 	or jurisdictions if the distance education program does not include internships, externships, 
21.6 	field placements, or clinical placements for residents of Minnesota;
21.7 	(8) schools persons, programs, or courses licensed or approved by other state boards or 
21.8 	agencies authorized under Minnesota law to issue licenses for institutions or programs, 
21.9 	except for institutions or programs required to be licensed exclusively to participate in state 
21.10 	financial aid or be listed on the eligible training provider list, access WIOA funding, or 
21.11 	receive the dual training grant;
21.12 	(9) review classes, courses, or persons, programs, or courses intended to prepare students 
21.13 	to sit for undergraduate, graduate, postgraduate, or occupational licensing, certification, or 
21.14 	entrance examinations;
21.15 	(10) classes, courses, or persons, programs, or courses conducted by a bona fide trade, 
21.16 	professional, or fraternal organization, solely for that organization's membership and not 
21.17 	available to the public. In making the determination that the organization is bona fide, the 
21.18 	office may request the school provide three certified letters from persons that qualify as 
21.19 	evaluators under section 136A.828, subdivision 3, paragraph (l), that the organization is 
21.20 	recognized in Minnesota;
21.21 	(11) persons, programs in the fine arts provided by organizations, or courses that are
21.22 	exempt from taxation under section 290.05 and registered with the attorney general under 
21.23 	chapter 309. For purposes of this clause, "fine arts" means activities resulting in artistic 
21.24 	creation or artistic performance of works of the imagination which are engaged in for the 
21.25 	primary purpose of creative expression rather than commercial sale, vocational or career 
21.26 	advancement, or employment; or
21.27 	(12) classes, courses, or persons, programs, or courses intended to fulfill the continuing 
21.28 	education requirements for a bona fide licensure or certification in a profession that have 
21.29 	been approved by a legislatively or judicially established board or agency responsible for 
21.30 	regulating the practice of the profession or by an industry-specific certification entity and 
21.31 	that are offered exclusively to individuals with the professional licensure or certification.

22.1 	Sec. 33. Minnesota Statutes 2024, section 136A.821, subdivision 13, is amended to read:
22.2 		Subd. 13.Compliance audit. "Compliance audit" means an audit of a private career 
22.3 	school's compliance with federal requirements related to its participation in federal Title IV 
22.4 	student aid programs or other federal grant programs performed under either Uniform Grant 
22.5 	Guidance, including predecessor Federal Circular A-133, or the United States Department 
22.6 	of Education's audit guide, Audits of Federal Student Financial Assistance Programs at 
22.7 	Participating Institutions and Institution Servicers administration of federal money conducted 
22.8 	by a certified public accountant or federal auditor to determine if the school is adhering to 
22.9 	applicable laws, regulations, and other grant conditions as required by Code of Federal 
22.10 	Regulations, title 2, subtitle A, chapter II, part 200.

22.11 	Sec. 34. Minnesota Statutes 2024, section 136A.821, subdivision 16, is amended to read:
22.12 		Subd. 16.Audited Financial statements audit report. "Audited Financial statements
22.13 	audit report" means the financial statements of an entity or higher-level entity that have 
22.14 	been examined by a certified public accountant or an equivalent government agency for 
22.15 	public entities that include (1) an auditor's report, a statement of financial position, an income 
22.16 	statement, a statement of cash flows, and notes to the financial statements or (2) the required 
22.17 	equivalents for public entities as determined by the Financial Accounting Standards Board, 
22.18 	the Governmental Accounting Standards Board, or the Securities and Exchange Commission
22.19 	result of a service provided by a certified public accountant or federal auditor that conducts 
22.20 	a comprehensive and independent examination of the entity's financial statements as defined 
22.21 	in Code of Federal Regulations, title 34, section 668.23(d). If an entity's own financial 
22.22 	statements audit report is subsequently consolidated into a higher-level entity's financial 
22.23 	statements audit report, financial statements audit report can refer to both the entity's own 
22.24 	report and the higher-level entity's consolidated report in accordance with Code of Federal 
22.25 	Regulations, section 668.23(d)(2).

22.26 	Sec. 35. Minnesota Statutes 2024, section 136A.821, subdivision 17, is amended to read:
22.27 		Subd. 17.Review-level engagement Compilation report. "Review-level engagement" 
22.28 	means a service performed by a certified public accountant that provides limited assurance 
22.29 	that there are no material modifications that need to be made to an entity's financial statements 
22.30 	in order for them to conform to generally accepted accounting principles. Review-level 
22.31 	engagement provides fewer assurances than those reported under audited financial statements
22.32 	"Compilation report" means the result of an accounting service provided by a certified public 
22.33 	accountant to organize financial information provided by a client into professionally 
23.1 	formatted financial statements. A compilation report provides no assurances about the 
23.2 	financial statements, unlike those provided in a financial statements audit report.

23.3 	Sec. 36. Minnesota Statutes 2025 Supplement, section 136A.821, subdivision 21, is 
23.4 	amended to read:
23.5 		Subd. 21.Vocational Institution or school. "Vocational" means education or training 
23.6 	for skills used in the labor market "Institution" or "school" means a private career school 
23.7 	or distance education private career school, as defined in this section.

23.8 	Sec. 37. Minnesota Statutes 2024, section 136A.822, subdivision 4, is amended to read:
23.9 		Subd. 4.Application. Application for a license shall be on forms prepared and furnished 
23.10 	by the office, and shall include the following and other information as the office may require:
23.11 	(1) the title or name of the private career school, ownership and controlling officers, 
23.12 	members, managing employees, and director;
23.13 	(2) the specific programs which will be offered and the specific purposes of the 
23.14 	instruction;
23.15 	(3) the place or places where the instruction will be given;
23.16 	(4) a listing of the equipment available for instruction in each program;
23.17 	(5) the maximum enrollment to be accommodated with equipment available in each 
23.18 	specified program;
23.19 	(6) the qualifications of instructors and supervisors in each specified program;
23.20 	(7) financial documents related to the entity's and higher-level entity's most recently 
23.21 	completed fiscal year:, including a federal income tax return and, in accordance with the 
23.22 	table below, one or more of the following: a financial statements audit report, compliance 
23.23 	audit report, or compilation report. An applicant with financial statements that are 
23.24 	consolidated into a higher-level entity's financial statements must include the consolidated 
23.25 	financials of the higher-level entity with the documents listed in each row of the table except 
23.26 	for the final row. If not stated in the financial statements audit report, compliance audit 
23.27 	report, or compilation report, the entity must include a statement providing the total gross 
23.28 	tuition and fee revenues associated with the programs and the total amount of institutional 
23.29 	discounts and aid provided to students in the programs.
23.30 	(i) annual gross revenues from all sources;
24.1 	(ii) financial statements subjected to a review-level engagement or, if requested by the 
24.2 	office, audited financial statements;
24.3 	(iii) a school's most recent compliance audit, if applicable; and
24.4 	(iv) a current balance sheet, income statement, and adequate supporting documentation, 
24.5 	prepared and certified by an independent public accountant or CPA;
24.6 	An entity or higher-level entity subject to fluctuating levels of total gross revenues must 
24.7 	continue to submit the required financial documents according to the requirements under 
24.8 	items (i) to (vi) even if the most current fiscal year's total gross revenues move the entity 
24.9 	or higher-level entity into a different category. If an entity or higher-level entity continues 
24.10 	to experience a change in total gross revenues for two consecutive fiscal years, the office 
24.11 	must notify the entity that the entity will be subject to the documentation requirements under 
24.12 	items (i) to (vi) for the next annual licensing application cycle. If, for the most recently 
24.13 	completed fiscal year, the applicant or renewal applicant:
24.14 	(i) is required by federal or other external entities to have both a financial statements 
24.15 	audit and a compliance audit, the applicant must submit the financial statements audit report 
24.16 	and the compliance audit report, which may be combined in one document;
24.17 	(ii) is required by federal or other external entities to have a financial statements audit, 
24.18 	but not a compliance audit, the applicant must submit the financial statements audit report;
24.19 	(iii) is not required to have a financial statements audit, but elects to have one, the 
24.20 	applicant must submit the financial statements audit report;
24.21 	(iv) does not fall into a prior category but had gross annual revenues from all sources 
24.22 	in the most recently completed fiscal year of $5,000,000 or more and the office requires the 
24.23 	applicant to have a financial statements audit, the applicant must submit the financial 
24.24 	statement audit report. If the applicant is a nonprofit entity, the applicant must also include 
24.25 	the completed Federal Form 990 tax return for the most recently completed fiscal year;
24.26 	(v) does not fall into a prior category but had gross annual revenues from all sources in 
24.27 	the most recently completed fiscal year of $250,000 or more but less than $5,000,000 and 
24.28 	the office requires the applicant to have a compilation engagement, the applicant must 
24.29 	submit the compilation report, including footnotes for a debt repayment schedule and other 
24.30 	material items. If the applicant is a nonprofit entity, the applicant must also include the 
24.31 	completed Federal Form 990 tax return for the most recently completed fiscal year; or
24.32 	(vi) does not fall into a prior category but had gross annual revenues from all sources 
24.33 	in the most recently completed fiscal year of less than $250,000, the applicant must submit 
25.1 	(A) depending on the ownership or corporate organization, the applicant's federal income 
25.2 	tax return; and (B) if the net income flows through to the owners' personal federal tax returns, 
25.3 	a copy of each owner's personal federal tax return. In addition to the tax return information, 
25.4 	an applicant must provide a balance sheet dated as of the last day of the most recently ended 
25.5 	fiscal year;
25.6 	(8) copies of all media advertising and promotional literature and brochures or electronic 
25.7 	display currently used or reasonably expected to be used by the private career school; and
25.8 	(9) copies of all Minnesota enrollment agreement forms and contract forms and all 
25.9 	enrollment agreement forms and contract forms used in Minnesota; and.
25.10 	(10) gross income earned in the preceding year from student tuition, fees, and other 
25.11 	required institutional charges.

25.12 	Sec. 38. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 6, is amended 
25.13 	to read:
25.14 		Subd. 6.Bond. (a) No license shall be issued to any private career school with a physical 
25.15 	presence within the state of Minnesota for any program, unless the applicant files with the 
25.16 	office a continuous corporate surety bond written by a company authorized to do business 
25.17 	in Minnesota conditioned upon the faithful performance of all contracts and agreements 
25.18 	with students made by the applicant.
25.19 	(b) The amount of the surety bond shall be ten percent of the preceding year's net revenue 
25.20 	from student tuition, fees, and other required institutional charges collected, but in no event 
25.21 	less than $10,000, except that a private career school may must deposit a greater amount at 
25.22 	its own the office's discretion. A private career school in each annual application for licensure 
25.23 	must compute the amount of the surety bond and verify that the amount of the surety bond 
25.24 	complies with this subdivision. A private career school that operates at two or more locations 
25.25 	may combine net revenue from student tuition, fees, and other required institutional charges 
25.26 	collected for all locations for the purpose of determining the annual surety bond requirement. 
25.27 	The net revenue from tuition and fees used to determine the amount of the surety bond 
25.28 	required for a private career school having a license for the sole purpose of recruiting students 
25.29 	in Minnesota shall be only that paid to the private career school by the students recruited 
25.30 	from Minnesota. In the case of an entity applying for an initial license where the entity has 
25.31 	no history of revenues from student tuition, fees, or other required institutional charges, the 
25.32 	amount of the bond must be ten percent of the total amount of tuition, fees, and other required 
25.33 	institutional charges anticipated in the entity's first year of operation, based on a calculation 
26.1 	of total student tuition, fees, and other required institutional charges multiplied by the 
26.2 	maximum student enrollment in one academic year.
26.3 	(c) The bond shall run to the state of Minnesota and to any person who may have a cause 
26.4 	of action against the applicant arising at any time after the bond is filed and before it is 
26.5 	canceled for breach of any contract or agreement made by the applicant with any student. 
26.6 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
26.7 	exceed the principal sum deposited by the private career school under paragraph (b). The 
26.8 	surety of any bond may cancel it upon giving 60 days' notice in writing to the office and 
26.9 	shall be relieved of liability for any breach of condition occurring after the effective date 
26.10 	of cancellation.
26.11 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
26.12 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
26.13 	letter of credit issued by a financial institution equal to the amount of the required surety 
26.14 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
26.15 	aggregate market value equal to the amount of the required surety bond.
26.16 	(e) Failure of a private career school to post and maintain the required surety bond or 
26.17 	deposit under paragraph (d) may result in denial, suspension, or revocation of the school's 
26.18 	license.

26.19 	Sec. 39. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 8, is amended 
26.20 	to read:
26.21 		Subd. 8.Minimum standards. A license shall be issued if the office first determines:
26.22 	(1) that the applicant has a sound financial condition with sufficient resources available 
26.23 	to:
26.24 	(i) meet the private career school's financial obligations;
26.25 	(ii) refund all tuition and other charges, within 60 days, in the event of dissolution of 
26.26 	the private career school or in the event of any justifiable claims for refund against the 
26.27 	private career school by the student body;
26.28 	(iii) provide adequate service to its students and prospective students; and
26.29 	(iv) maintain and support the private career school;
26.30 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment and 
26.31 	the necessary number of work stations to prepare adequately the students currently enrolled, 
26.32 	and those proposed to be enrolled;
27.1 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
27.2 	provide the educational programs contemplated;
27.3 	(4) that the private career school has an organizational framework with administrative 
27.4 	and instructional personnel to provide the programs and services it intends to offer;
27.5 	(5) that the quality and content of each occupational course or program of study provides 
27.6 	education and adequate preparation to enrolled students for entry level positions in the 
27.7 	occupation for which prepared, based on minimum standards for employment in the field, 
27.8 	learning outcomes, assessment mechanisms, and clear structure of the curriculum;
27.9 	(6) that the premises and conditions where the students work and study and the student 
27.10 	living quarters which are owned, maintained, recommended, or approved by the applicant 
27.11 	are sanitary, healthful, and safe, as evidenced by certificate of occupancy issued by the 
27.12 	municipality or county where the private career school is physically situated, a fire inspection 
27.13 	by the local or state fire marshal, or another verification deemed acceptable by the office;
27.14 	(7) that the contract or enrollment agreement used by the private career school complies 
27.15 	with the provisions in section 136A.826;
27.16 	(8) that contracts and agreements do not contain a wage assignment provision or a 
27.17 	confession of judgment clause;
27.18 	(9) that there has been no adjudication of fraud or misrepresentation in any criminal, 
27.19 	civil, or administrative proceeding in any jurisdiction against the private career school or 
27.20 	its owner, officers, agents, or sponsoring organization;
27.21 	(10) that the private career school or its owners, officers, agents, or sponsoring 
27.22 	organization has not had a license revoked under section 136A.829 or its equivalent in other 
27.23 	states or has closed the institution prior to all students, enrolled at the time of the closure, 
27.24 	completing their program within two years of the effective date of the revocation; and
27.25 	(11) that the school includes a joint and several liability provision for torts and compliance 
27.26 	with the requirements of sections 136A.82 to 136A.834 in any contract effective after July 
27.27 	1, 2026, with any individual, entity, or postsecondary school located in another state for the 
27.28 	purpose of providing educational or training programs or awarding postsecondary credits 
27.29 	to Minnesota residents that may be applied to a program.

28.1 	Sec. 40. Minnesota Statutes 2024, section 136A.822, subdivision 10, is amended to read:
28.2 		Subd. 10.Catalog, brochure, or electronic display. Before a license is issued to a 
28.3 	private career school, the private career school shall furnish to the office a catalog, brochure, 
28.4 	or electronic display including: all required information to students under section 136A.826.
28.5 	(1) identifying data, such as volume number and date of publication;
28.6 	(2) name and address of the private career school and its governing body and officials;
28.7 	(3) a calendar of the private career school showing legal holidays, beginning and ending 
28.8 	dates of each course quarter, term, or semester, and other important dates;
28.9 	(4) the private career school policy and regulations on enrollment including dates and 
28.10 	specific entrance requirements for each program;
28.11 	(5) the private career school policy and regulations about leave, absences, class cuts, 
28.12 	make-up work, tardiness, and interruptions for unsatisfactory attendance;
28.13 	(6) the private career school policy and regulations about standards of progress for the 
28.14 	student including the grading system of the private career school, the minimum grades 
28.15 	considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a 
28.16 	description of any probationary period allowed by the private career school, and conditions 
28.17 	of reentrance for those dismissed for unsatisfactory progress;
28.18 	(7) the private career school policy and regulations about student conduct and conditions 
28.19 	for dismissal for unsatisfactory conduct;
28.20 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
28.21 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
28.22 	(9) the private career school policy and regulations, including an explanation of section 
28.23 	136A.827, about refunding tuition, fees, and other charges if the student does not enter the 
28.24 	program, withdraws from the program, or the program is discontinued;
28.25 	(10) a description of the available facilities and equipment;
28.26 	(11) a course outline syllabus for each course offered showing course objectives, subjects 
28.27 	or units in the course, type of work or skill to be learned, and approximate time, hours, or 
28.28 	credits to be spent on each subject or unit;
28.29 	(12) the private career school policy and regulations about granting credit for previous 
28.30 	education and preparation;
29.1 	(13) a notice to students relating to the transferability of any credits earned at the private 
29.2 	career school to other institutions;
29.3 	(14) a procedure for investigating and resolving student complaints;
29.4 	(15) the name and address of the office; and
29.5 	(16) the student complaint process and rights under section 136A.8295.
29.6 	A private career school that is exclusively a distance education school is exempt from 
29.7 	clauses (3) and (5).

29.8 	Sec. 41. Minnesota Statutes 2024, section 136A.822, subdivision 12, is amended to read:
29.9 		Subd. 12.Permanent student records. (a) A private career school or a distance education 
29.10 	private career school licensed under sections 136A.82 to 136A.834 and located in Minnesota 
29.11 	shall maintain a permanent student record for each student for 50 years from the last date 
29.12 	of the student's attendance. A private career school licensed under this chapter and offering 
29.13 	distance instruction to a student located in Minnesota shall maintain a permanent record for 
29.14 	each Minnesota student for 50 years from the last date of the student's attendance The private 
29.15 	career school or distance education private career school may choose to reduce the amount 
29.16 	of time the school maintains a student record to no less than 20 years if the entity sends the 
29.17 	permanent student record to the office to hold for the remainder of the duration the student 
29.18 	records are required to be maintained. Records include school transcripts, documents, and 
29.19 	files containing student data about academic credits earned, courses completed, grades 
29.20 	awarded, degrees awarded, and periods of attendance.
29.21 	(b) A private career school or distance education private career school licensed under 
29.22 	sections 136A.82 to 136A.834 and located in Minnesota shall maintain a permanent student 
29.23 	record required for professional licensure in Minnesota for each student for ten years from 
29.24 	the last date of the student's attendance or the number of years required by an institutional 
29.25 	or programmatic accreditor, whichever is greater. A private career school licensed under 
29.26 	this chapter and offering distance instruction to a student located in Minnesota shall maintain 
29.27 	records required for professional licensure in Minnesota that are not included in paragraph 
29.28 	(a) for each Minnesota student for ten years from the last date of the student's attendance 
29.29 	or the number of years required by an institutional or programmatic accreditor, whichever 
29.30 	is greater.
29.31 	(c) To preserve permanent student records, a private career school shall submit a plan 
29.32 	that meets the following requirements:
29.33 	(1) at least one copy of the records must be held in a secure, fireproof depository;
30.1 	(2) an appropriate official must be designated to provide a student with copies of records 
30.2 	or a transcript upon request; and
30.3 	(3) an alternative method, approved by the office, of complying with clauses (1) and (2) 
30.4 	must be established if the private career school ceases to exist; and
30.5 	(4) (2) a continuous surety bond or irrevocable letter of credit issued by a financial 
30.6 	institution must be filed with the office in an amount not to exceed $20,000 if the private 
30.7 	career school has no binding agreement approved by the office, for preserving student 
30.8 	records. The bond or irrevocable letter of credit shall run to the state of Minnesota. In the 
30.9 	event of a school closure, the surety bond or irrevocable letter of credit must be used by the 
30.10 	office to retrieve, recover, maintain, digitize, and destroy academic records.

30.11 	Sec. 42. Minnesota Statutes 2025 Supplement, section 136A.822, subdivision 13, is 
30.12 	amended to read:
30.13 		Subd. 13.Limited license. (a) Unless otherwise exempt under sections 136A.82 to 
30.14 	136A.834:
30.15 	(1) a private career school licensed by another state agency or board must be required 
30.16 	to obtain a limited license to participate in state financial aid; and
30.17 	(2) a private career school exclusively seeking to be listed on the eligible training provider 
30.18 	list, access WIOA funding, or receive the dual training grant shall be required to obtain a 
30.19 	limited license.
30.20 	(b) A private career school seeking a limited license under this subdivision shall be 
30.21 	required to satisfy only the requirements of subdivisions 4, clauses (1), (2), and (3), (7), (8), 
30.22 	(9), and (10); 5; 8, clauses (1), (4), (7), (8), (9), and (10); 9; 10; 11; and 12. If requested by 
30.23 	the office, a private career school seeking a limited license under this subdivision must 
30.24 	satisfy the requirements of subdivisions 4, clauses (7), (8), (9), and (10); 8, clauses (4), (7), 
30.25 	and (8); 9; 10; and 11. If a private career school is licensed to participate in state financial 
30.26 	aid under this chapter, the private career school must follow the refund policy in section 
30.27 	136A.827, even if that section conflicts with the refund policy of the licensing agency or 
30.28 	board. A distance education private career school located in another state, or a distance 
30.29 	education private career school licensed to recruit Minnesota residents for attendance at a 
30.30 	distance education private career school outside of this state, or a distance education private 
30.31 	career school licensed by another state agency as its primary licensing body, may continue 
30.32 	to use the distance education private career school's name as permitted by its home state or 
30.33 	its primary licensing body.

31.1 	Sec. 43. Minnesota Statutes 2024, section 136A.822, is amended by adding a subdivision 
31.2 	to read:
31.3 		Subd. 14.Data privacy. (a) Financial records submitted by private career schools are 
31.4 	nonpublic data, as defined in section 13.02, subdivision 9.
31.5 	(b) Accreditation records and reports submitted by private career schools are nonpublic 
31.6 	data, as defined in section 13.02, subdivision 9.
31.7 	(c) The office may disclose data that is classified as not public data under this subdivision 
31.8 	for the purpose of defending the office's decision to approve or not approve a program or 
31.9 	institution, or take any other action under sections 136A.82 to 136A.833, in connection with 
31.10 	a legal or administrative proceeding, or pursuant to a subpoena or judicial warrant.

31.11 	Sec. 44. Minnesota Statutes 2024, section 136A.823, subdivision 1, is amended to read:
31.12 		Subdivision 1.Application. (a) Application for renewal of a license must be made at 
31.13 	least 60 days, other than the exception in paragraph (b), before expiration of the current 
31.14 	license on a form provided by the office. A renewal application shall be accompanied by a 
31.15 	nonrefundable fee as provided in section 136A.824 that is sufficient to recover, but does 
31.16 	not exceed, the administrative costs of the office.
31.17 	(b) The financial documents listed in section 136A.822, subdivision 4, clause (7), required 
31.18 	to be submitted to the office as part of a renewal application, shall be submitted according 
31.19 	to the following schedule:
31.20 	(1) the financial statements audit reports, compliance audit reports, and compilation 
31.21 	reports, by the earlier of 30 days after the issuance date of each report or nine months after 
31.22 	the last day of the entity's or higher-level entity's fiscal year; or
31.23 	(2) for federal tax returns and stand-alone balance sheets, by the earlier of 30 days after 
31.24 	the federal tax return is completed or one week following the last day of a federal filing 
31.25 	extension period that is usually six months in length.

31.26 	Sec. 45. Minnesota Statutes 2024, section 136A.823, subdivision 3, is amended to read:
31.27 		Subd. 3.Change of ownership. Within 30 days of a change of ownership, a school must 
31.28 	submit a registration renewal application, the information and materials for an initial 
31.29 	registration under section 136A.822, subdivision 4, and the applicable registration fees for 
31.30 	a new institution under section 136A.824, subdivision 1. For purposes of this subdivision, 
31.31 	"change of ownership" means: a merger or consolidation with a corporation separate entity 
31.32 	or higher-level entity; a sale, lease, exchange, or other disposition of all or substantially all 
32.1 	of the assets of a school; the transfer of a controlling interest of at least 51 percent of the 
32.2 	school's stock; entering into receivership; or a change in the nonprofit or for-profit status 
32.3 	of a school.

32.4 	Sec. 46. Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 1, is amended 
32.5 	to read:
32.6 		Subdivision 1.Initial licensure fee. (a) The office processing fee for an initial licensure 
32.7 	application is:
32.8 	(1) $3,730 for a private career school that will offer no more than one program during 
32.9 	its first year of operation;
32.10 	(2) $1,500 for a private career school licensed by another state agency and seeking a 
32.11 	limited license exclusively in order to participate in state financial aid; and
32.12 	(3) $3,730, plus $500 for each additional program offered by the private career school, 
32.13 	for a private career school during its first year of licensed operation.
32.14 	(b) In addition to the fee under paragraph (a), a fee of $600 must be paid for an initial 
32.15 	application that: (1) has had four revisions, corrections, amendment requests, or application 
32.16 	reminders for the same application or licensure requirement; or (2) cumulatively has had 
32.17 	six revisions, corrections, amendment requests, or application reminders for the same license 
32.18 	application and the private career school seeks to continue with the application process with 
32.19 	additional application submissions. If this fee is paid, the private career school may submit 
32.20 	two final application submissions for review prior to application denial under section 
32.21 	136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive 
32.22 	questions or clarifications initiated by the school before the submission of the application, 
32.23 	initial interpretation questions or inquiries from the office regarding a completed application, 
32.24 	and initial requests from the office for verification or validation of a completed application.

32.25 	Sec. 47. Minnesota Statutes 2025 Supplement, section 136A.824, subdivision 2, is amended 
32.26 	to read:
32.27 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a renewal 
32.28 	licensure application is:
32.29 	(1) for a private career school, the license renewal fee is $3,160; and
32.30 	(2) for a private career school licensed by another state agency and that also has a limited 
32.31 	license with the office exclusively in order to participate in state financial aid, the license 
32.32 	renewal fee is $1,500.
33.1 	(b) If a license renewal application is not received by the office by the expiration of the 
33.2 	current license, a late fee of $100 per business day, not to exceed $3,000, shall be assessed.
33.3 	(c) In addition to the fee under paragraph (a), a fee of $600 must be paid for a renewal 
33.4 	application that: (1) has had four revisions, corrections, amendment requests, or application 
33.5 	reminders for the same application or licensure requirement; or (2) cumulatively has had 
33.6 	six revisions, corrections, amendment requests, or application reminders for the same license 
33.7 	application and the private career school seeks to continue with the application process with 
33.8 	additional application submissions. If this fee is paid, the private career school may submit 
33.9 	two final application submissions for review prior to application denial under section 
33.10 	136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive 
33.11 	questions or clarifications initiated by the school before the submission of the application, 
33.12 	initial interpretation questions or inquiries from the office regarding a completed application, 
33.13 	and initial requests from the office for verification or validation of a completed application.

33.14 	Sec. 48. Minnesota Statutes 2024, section 136A.826, subdivision 1, is amended to read:
33.15 		Subdivision 1.Catalog, brochure, or electronic display. (a) A private career school 
33.16 	or its agent must provide the catalog, brochure, or electronic display required in this section 
33.17 	136A.822, subdivision 10, to a prospective student in a time or manner that gives the 
33.18 	prospective student at least five days to read the catalog, brochure, or electronic display 
33.19 	before signing a contract or enrollment agreement or before being accepted by a private 
33.20 	career school that does not use a written contract or enrollment agreement.
33.21 	(b) A catalog, brochure, or electronic display must include, at a minimum:
33.22 	(1) identifying data, such as volume number or date of publication;
33.23 	(2) name, address, governing body, and names of senior officials;
33.24 	(3) an academic calendar showing legal holidays, beginning and ending dates of each 
33.25 	course quarter, term, or semester, and other important dates;
33.26 	(4) the policy and regulations on enrollment including dates and specific entrance 
33.27 	requirements for each program;
33.28 	(5) the policy and regulations regarding leave, absences, class cuts, make-up work, 
33.29 	tardiness, and interruptions for unsatisfactory attendance;
33.30 	(6) the policy and regulations regarding standards of progress for the student including 
33.31 	the grading system of the private career school, the minimum grades considered satisfactory, 
33.32 	conditions for interruption for unsatisfactory grades or progress, a description of any 
34.1 	probationary period allowed by the private career school, and conditions of reentrance for 
34.2 	those dismissed for unsatisfactory progress;
34.3 	(7) the policy and regulations regarding student conduct and conditions for dismissal 
34.4 	for unsatisfactory conduct;
34.5 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
34.6 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
34.7 	(9) the policy and regulations, including an explanation of section 136A.827, regarding 
34.8 	refunding tuition, fees, and other charges if the student does not enter the program, withdraws 
34.9 	from the program, or the program is discontinued;
34.10 	(10) a description of the available facilities and equipment;
34.11 	(11) a course outline or syllabus for each course offered showing course objectives, 
34.12 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
34.13 	hours, or credits to be spent on each subject or unit;
34.14 	(12) the policy and regulations regarding granting credit for previous education and 
34.15 	preparation;
34.16 	(13) a notice to students relating to the transferability of any credits earned; or
34.17 	(14) a procedure for investigating and resolving student complaints and the rights of the 
34.18 	student under section 136A.8295.

34.19 	Sec. 49. Minnesota Statutes 2024, section 136A.827, subdivision 1, is amended to read:
34.20 		Subdivision 1.Student. For the purposes of this section, "student" means the party to 
34.21 	the contract, whether the party is the student, the student's parent or guardian, or other person 
34.22 	on behalf of the student. If there is no contract, student means the party who has been 
34.23 	accepted into the course or program.

34.24 	Sec. 50. Minnesota Statutes 2024, section 136A.827, subdivision 4, is amended to read:
34.25 		Subd. 4.Proration. (a) When a student has been accepted by a private career school 
34.26 	and gives notice of cancellation after the program of instruction has begun, the student is 
34.27 	entitled to a refund if, at the last documented date of attendance, the student has not completed 
34.28 	at least 75 percent of the entire program of instruction. For purposes of this subdivision, 
34.29 	program of instruction is calculated under paragraph (c) or (d). Program of instruction does 
34.30 	not mean one term, a payment period, a module, or any other portion of the entire 
34.31 	instructional program.
35.1 	(b) A notice of cancellation from a student under this subdivision must be confirmed in 
35.2 	writing by the private career school and mailed to the student's last known address. The 
35.3 	confirmation from the school must state that the school has withdrawn the student from 
35.4 	enrollment, and if this action was not the student's intent, the student must contact the school.
35.5 	(c) The length of a program of instruction for a program that has a defined calendar start 
35.6 	and end date that does not change after the program has begun equals the number of days 
35.7 	from the first scheduled date of the program through the last scheduled date of the program. 
35.8 	To calculate the completion percentage, divide the number of calendar days from the first 
35.9 	date of the program through the student's last documented date of attendance by the length 
35.10 	of the program of instruction, and truncate the result after the second digit following the 
35.11 	decimal point. If the completion percentage is less than 75 percent, the private career school 
35.12 	may retain:
35.13 	(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied 
35.14 	by the completion percentage; plus
35.15 	(2) the initial program application fees, not to exceed $50; plus
35.16 	(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
35.17 	(d) The length of a program of instruction for a program that is measured in clock hours 
35.18 	equals the number of clock hours the student was scheduled to attend. To calculate the 
35.19 	completion percentage, divide the number of clock hours that the student actually attended 
35.20 	by the length of the program of instruction, and truncate the result after the second digit 
35.21 	following the decimal point. If the completion percentage is less than 75 percent, the private 
35.22 	career school may retain:
35.23 	(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied 
35.24 	by the completion percentage; plus
35.25 	(2) the initial program application fees, not to exceed $50; plus
35.26 	(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.

35.27 	Sec. 51. Minnesota Statutes 2024, section 136A.828, subdivision 6, is amended to read:
35.28 		Subd. 6.Financial aid payments Transcripts. (a) All private career schools must 
35.29 	collect, assess, and distribute funds received from loans or other financial aid as provided 
35.30 	in this subdivision.
35.31 	(b) Student loans or other financial aid funds received from federal, state, or local 
35.32 	governments or administered in accordance with federal student financial assistance programs 
36.1 	under title IV of the Higher Education Act of 1965, as amended, United States Code, title 
36.2 	20, chapter 28, must be collected and applied as provided by applicable federal, state, or 
36.3 	local law or regulation.
36.4 	(c) Student loans or other financial aid assistance received from a bank, finance or credit 
36.5 	card company, or other private lender must be collected or disbursed as provided in 
36.6 	paragraphs (d) and (e).
36.7 	(d) Loans or other financial aid payments for amounts greater than $3,000 must be 
36.8 	disbursed:
36.9 	(1) in two equal disbursements, if the term length is more than four months. The loan 
36.10 	or payment amounts may be disbursed no earlier than the first day the student attends class 
36.11 	with the remainder to be disbursed halfway through the term; or
36.12 	(2) in three equal disbursements, if the term length is more than six months. The loan 
36.13 	or payment amounts may be disbursed no earlier than the first day the student attends class, 
36.14 	one-third of the way through the term, and two-thirds of the way through the term.
36.15 	(e) Loans or other financial aid payments for amounts less than $3,000 may be disbursed 
36.16 	as a single disbursement on the first day a student attends class, regardless of term length.
36.17 	(f) No private career school may enter into a contract or agreement with, or receive any 
36.18 	money from, a bank, finance or credit card company, or other private lender, unless the 
36.19 	private lender follows the requirements for disbursements provided in paragraphs (d) and 
36.20 	(e).
36.21 	(g) No private career school may withhold an official transcript for arrears or default on 
36.22 	any loan made by the private career school to a student if the loan qualifies as an institutional 
36.23 	loan under United States Code, title 11, section 523(a)(8)(b).

36.24 	Sec. 52. Minnesota Statutes 2024, section 136A.829, subdivision 1, is amended to read:
36.25 		Subdivision 1.Grounds. The office may, after notice and upon providing an opportunity 
36.26 	for a hearing, under chapter 14 if requested by the parties adversely affected, refuse to issue, 
36.27 	refuse to renew, revoke, or suspend a license or solicitor's permit for any of the following 
36.28 	grounds:
36.29 	(1) violation of any provisions of sections 136A.821 to 136A.833 or any rule adopted 
36.30 	by the office;
36.31 	(2) furnishing to the office false, misleading, or incomplete information;
37.1 	(3) presenting to prospective students information relating to the private career school 
37.2 	that is false, fraudulent, deceptive, substantially inaccurate, or misleading;
37.3 	(4) refusal to allow reasonable inspection or supply reasonable information after written 
37.4 	request by the office;
37.5 	(5) having been administratively determined by the commissioner or judicially determined 
37.6 	to have committed fraud or any other material violation of law involving federal, state, or 
37.7 	local government funds;
37.8 	(6) the existence of any circumstance that would be grounds for the refusal of an initial 
37.9 	or renewal license under section 136A.822; or
37.10 	(7) using fraudulent or coercive practices, whether in the course of business in this state 
37.11 	or elsewhere.

37.12 	Sec. 53. Minnesota Statutes 2024, section 136A.829, subdivision 3, as amended by Laws 
37.13 	2026, chapter 88, article 1, section 40, is amended to read:
37.14 		Subd. 3.Powers and duties. The office shall have (in addition to the powers and duties 
37.15 	now vested therein by law) the following powers and duties:
37.16 	(a) To negotiate and enter into interstate reciprocity agreements with similar agencies 
37.17 	in other states, if in the judgment of the office such agreements are or will be helpful in 
37.18 	effectuating the purposes of Laws 1973, chapter 714;
37.19 	(b) To grant conditional private career school license for periods of less than one year
37.20 	if in the judgment of the office correctable deficiencies exist at the time of application and 
37.21 	when refusal to issue private career school license would adversely affect currently enrolled 
37.22 	students; the risk of harm to students can be minimized through the use of restrictions and 
37.23 	requirements as conditions of the license. Conditional licenses may include requirements 
37.24 	and restrictions for:
37.25 	(1) periodic monitoring and submission of reports on the school's deficiencies to ascertain 
37.26 	whether compliance improves;
37.27 	(2) periodic collaborative consultations with the school on noncompliance with sections 
37.28 	136A.82 to 136A.834 or how the institution is managing compliance;
37.29 	(3) the submission of contingency plans such as teach-out plans or transfer pathways 
37.30 	for students;
38.1 	(4) a prohibition from accepting tuition and fee payments prior to the add-drop period 
38.2 	of the current period of instruction or before the funding has been earned by the school 
38.3 	according to the refund requirements of section 136A.827;
38.4 	(5) a prohibition from enrolling new students;
38.5 	(6) enrollment caps;
38.6 	(7) the initiation of alternative processes and communications with students enrolled at 
38.7 	the school to notify students of deficiencies or probation status;
38.8 	(8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b), 
38.9 	that exceeds ten percent of the preceding year's net revenue from student tuition, fees, and 
38.10 	other required institutional charges collected; or
38.11 	(9) submission of closure information under section 136A.8225;
38.12 	(c) The office may upon its own motion, and shall upon the verified complaint in writing 
38.13 	of any person setting forth fact which, if proved, would constitute grounds for refusal or 
38.14 	revocation under Laws 1973, chapter 714, investigate the actions of any applicant or any 
38.15 	person or persons holding or claiming to hold a license or permit. However, before proceeding 
38.16 	to a hearing on the question of whether a license or permit shall be refused, revoked or 
38.17 	suspended for any cause enumerated in subdivision 1, the office shall grant a reasonable 
38.18 	time to the holder of or applicant for a license or permit to correct the situation. If within 
38.19 	such time the situation is corrected and the private career school is in compliance with the 
38.20 	provisions of sections 136A.82 to 136A.834, no further action leading to refusal, revocation, 
38.21 	or suspension shall be taken.
38.22 	(d) To grant a private career school a probationary license for periods of less than three 
38.23 	years if, in the judgment of the office, correctable deficiencies exist at the time of application 
38.24 	that need more than one year to correct and when the risk of harm to students can be 
38.25 	minimized through the use of restrictions and requirements as conditions of the license. 
38.26 	Probationary licenses may include requirements and restrictions for:
38.27 	(1) periodic monitoring and submission of reports on the school's deficiencies to ascertain 
38.28 	whether compliance improves;
38.29 	(2) periodic collaborative consultations with the school on noncompliance with sections 
38.30 	136A.82 to 136A.834 or how the institution is managing compliance;
38.31 	(3) the submission of contingency plans such as teach-out plans or transfer pathways 
38.32 	for students;
39.1 	(4) a prohibition from accepting tuition and fee payments prior to the add/drop period 
39.2 	of the current period of instruction or before the funds have been earned by the school 
39.3 	according to the refund requirements of section 136A.827;
39.4 	(5) a prohibition from enrolling new students;
39.5 	(6) enrollment caps;
39.6 	(7) the initiation of alternative processes and communications with students enrolled at 
39.7 	the school to notify students of deficiencies or probation status;
39.8 	(8) the submission of a surety under section 136A.822, subdivision 6, paragraph (b), 
39.9 	that exceeds ten percent of the preceding year's net revenue from student tuition, fees, and 
39.10 	other required institutional charges collected; or
39.11 	(9) submission of closure information under section 136A.8225.

39.12 	Sec. 54. Minnesota Statutes 2024, section 136A.8295, subdivision 5, is amended to read:
39.13 		Subd. 5.Appeals. Any order requiring remedial action by the school or assigning a 
39.14 	penalty under section 136A.832 is appealable in accordance with chapter 14. The request 
39.15 	for an appeal must be made in writing to the office within 30 days of the date the school is 
39.16 	notified of the action of the office. The court shall award costs and reasonable attorney fees 
39.17 	in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the 
39.18 	merits in an action brought under this section; and (2) the school has a net income from 
39.19 	student tuition, fees, and other required institutional charges collected from the last fiscal 
39.20 	year of $1,000,000 or greater.

39.21 	Sec. 55. Minnesota Statutes 2024, section 136A.83, is amended to read:
39.22 	136A.83 INSPECTION.
39.23 	(a) The office or a delegate may inspect the instructional books and records, classrooms, 
39.24 	dormitories, tools, equipment and classes of any private career school or applicant for license 
39.25 	at any reasonable time. The office may require the submission of audited financial statements.
39.26 	The office or a delegate may inspect the financial books and records of the private career 
39.27 	school. In no event shall such financial information be used by the office to regulate or set 
39.28 	the tuition or fees charged by the private career school.
39.29 	(b) Data obtained from an inspection of the financial records of a private career school 
39.30 	or submitted to the office as part of a license application or renewal are nonpublic data as 
39.31 	defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed 
40.1 	to other members of the office, to law enforcement officials, or in connection with a legal 
40.2 	or administrative proceeding commenced to enforce a requirement of law.

40.3 	Sec. 56. Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 1, is amended 
40.4 	to read:
40.5 		Subdivision 1.Application for exemptions. (a) A school that seeks an exemption from 
40.6 	the provisions of sections 136A.822 to 136A.834 for the school and all of its programs or 
40.7 	some of its programs must apply to the office to establish that the school or program meets 
40.8 	the requirements of an exemption. An exemption for the school or program expires two 
40.9 	years from the date of approval or when a school adds a new program or makes a 
40.10 	modification equal to or greater than 25 percent to an existing educational program that 
40.11 	brings the school or program outside the scope of the school's or program's exemption. If 
40.12 	a school is reapplying for an exemption, the application must be submitted to the office 90 
40.13 	days before the current exemption expires. If a school fails to apply within 90 days of 
40.14 	expiration or any change that would bring the school or program outside the scope of the 
40.15 	school's or program's exemption, the school is subject to fees and penalties under sections 
40.16 	136A.831 and 136A.832. This exemption shall not extend to any school that uses any 
40.17 	publication or advertisement that is not truthful and gives any false, fraudulent, deceptive, 
40.18 	inaccurate, or misleading impressions about the school or its personnel, programs, services, 
40.19 	or occupational opportunities for its graduates for promotion and student recruitment. 
40.20 	Exemptions denied under this section are subject to appeal under section 136A.829. If an 
40.21 	appeal is initiated, the denial of the exemption is not effective until the final determination 
40.22 	of the appeal, unless immediate effect is ordered by the court.
40.23 	(b) A school that meets any of the exemptions in this section and exclusively seeks to 
40.24 	be listed on the eligible training provider list, access WIOA funding, or receive the dual 
40.25 	training grant, is exempt from sections 136A.822 to 136A.834, except the school must 
40.26 	satisfy the requirements of section 136A.822, subdivisions 4, clauses (1), (2), and (3); 8, 
40.27 	clauses (9) and (10); 10, clause (8); and 12.

40.28 	Sec. 57. Minnesota Statutes 2025 Supplement, section 136A.833, subdivision 2, is amended 
40.29 	to read:
40.30 		Subd. 2.Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the 
40.31 	following:
40.32 	(1) private career schools engaged exclusively in the teaching of avocational programs 
40.33 	that are engaged primarily for personal development, recreation, or remedial education, and 
41.1 	are not generally intended for vocational or career advancement, including adult basic 
41.2 	education, exercise or fitness teacher programs, modeling, or acting, as determined by the 
41.3 	office;
41.4 	(2) classes, courses, or programs providing 40 or fewer clock hours of instruction; and
41.5 	(3) (2) private career schools providing training, instructional programs, or courses where 
41.6 	tuition, fees, and any other charges for a student to participate do not exceed $500.

41.7 	Sec. 58. Minnesota Statutes 2024, section 136G.03, subdivision 30, is amended to read:
41.8 		Subd. 30.Qualified higher education expenses. "Qualified higher education expenses" 
41.9 	means expenses as defined in section sections 529(c)(7), (8), and (9); 529(e)(3); and 529(f)
41.10 	of the Internal Revenue Code.

41.11 	Sec. 59. Minnesota Statutes 2024, section 136G.03, subdivision 31, is amended to read:
41.12 		Subd. 31.Qualified rollover distribution. "Qualified rollover distribution" means a 
41.13 	distribution that qualifies as a rollover under section 529(c)(3)(C) and (E) of the Internal 
41.14 	Revenue Code.

41.15 	Sec. 60. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision 
41.16 	to read:
41.17 		Subd. 35.Uncashed distribution check. "Uncashed distribution check" means any 
41.18 	distribution check generated by an account owner's request regardless of the payee that 
41.19 	remains uncashed by the payee for at least 180 days.

41.20 	Sec. 61. Minnesota Statutes 2024, section 136G.05, subdivision 10, is amended to read:
41.21 		Subd. 10.Data. Account owner data, account data, and data on beneficiaries of accounts 
41.22 	are private data on individuals or nonpublic data as defined in section 13.02, except that the 
41.23 	names and addresses of the beneficiaries of accounts that receive matching grants are public.
41.24 	The office may use data received under this chapter to share information with account 
41.25 	owners about the office's other programs and resources including those that describe the 
41.26 	process to pay for postsecondary education.

41.27 	Sec. 62. Minnesota Statutes 2024, section 136G.13, is amended by adding a subdivision 
41.28 	to read:
41.29 		Subd. 6.Handling of uncashed distribution checks. Unless otherwise directed by the 
41.30 	office, the plan administrator must mark an uncashed distribution check as no longer 
42.1 	outstanding and must credit back the amount of the check to the account owner's account 
42.2 	from which the check was originally disbursed. The amount being credited must be accounted 
42.3 	for as a new contribution and be invested by the plan administrator according to the current 
42.4 	instructions on file from the account owner.

42.5 	Sec. 63. Minnesota Statutes 2024, section 137.39, is amended by adding a subdivision to 
42.6 	read:
42.7 		Subd. 2a.Reporting. By February 15 of each odd-numbered year, the Board of Regents 
42.8 	of the University of Minnesota is requested to submit a report on medical school curriculum 
42.9 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
42.10 	over higher education. At a minimum, the report must include information regarding for-profit 
42.11 	entity funds used to:
42.12 	(1) pay salaries of teaching faculty;
42.13 	(2) support new or existing courses offered by the medical school; and
42.14 	(3) support initiatives of the medical school.

42.15 	Sec. 64. Minnesota Statutes 2024, section 268.193, subdivision 2, is amended to read:
42.16 		Subd. 2.Unemployment insurance aid. Eligible postsecondary institutions are eligible 
42.17 	to receive unemployment insurance aid under this section. For each fiscal year, an eligible 
42.18 	entity's aid is the difference between fiscal year 2022's unemployment insurance costs and 
42.19 	the current year's unemployment insurance costs, as reflected in the unemployment insurance 
42.20 	employer accounts maintained by the state. If the total eligible unemployment insurance 
42.21 	aid for a fiscal year is greater than the annual appropriation for that year, the Board of 
42.22 	Trustees of the Minnesota State Colleges and Universities or the commissioner of the Office 
42.23 	of Higher Education, as applicable, must proportionately reduce the aid payment to each 
42.24 	eligible entity.

42.25 	Sec. 65. Laws 2025, First Special Session chapter 5, article 1, section 3, subdivision 1, is 
42.26 	amended to read:

42.2842.27
	Subdivision 1.Total Appropriation
 	$
	879,039,000
	$
	878,550,000
881,555,000
	
42.29 	The amounts that may be spent for each 
42.30 	purpose are specified in the following 
42.31 	subdivisions.

43.1 	Sec. 66. Laws 2025, First Special Session chapter 5, article 1, section 3, subdivision 3, is 
43.2 	amended to read:

43.443.3
	Subd. 3.Operations and Maintenance
 		830,873,000
		830,384,000
833,389,000
	
43.5 	(a) $5,700,000 in fiscal year 2026 and 
43.6 	$5,700,000 in fiscal year 2027 are to provide 
43.7 	supplemental aid for operations and 
43.8 	maintenance to the president of each two-year 
43.9 	institution in the system with at least one 
43.10 	campus that is not located in a metropolitan 
43.11 	county, as defined in Minnesota Statutes, 
43.12 	section 473.121, subdivision 4. The board 
43.13 	shall transfer at least $158,000 for each 
43.14 	campus not located in a metropolitan county 
43.15 	in each year to the president of each institution 
43.16 	that includes such a campus.
43.17 	(b) The Board of Trustees is requested to help 
43.18 	Minnesota close the attainment gap by funding 
43.19 	activities which improve retention and 
43.20 	completion for students of color.
43.21 	(c) $9,500,000 in fiscal year 2026 and 
43.22 	$9,500,000 in fiscal year 2027 are for 
43.23 	enterprise-wide technology, including 
43.24 	upgrading the Integrated Statewide Record 
43.25 	System and maintaining enterprise-wide 
43.26 	technology services.
43.27 	(d) $50,000 in fiscal year 2026 and $50,000 
43.28 	in fiscal year 2027 are to reduce students' 
43.29 	out-of-pocket costs by expanding free 
43.30 	offerings in course materials and resources, 
43.31 	including through open educational resources, 
43.32 	open textbooks, and implementation of 
43.33 	Z-Degrees under Minnesota Statutes, section 
43.34 	136F.305.
44.1 	(e) $3,158,000 in fiscal year 2026 and 
44.2 	$3,158,000 in fiscal year 2027 are to expand 
44.3 	student support services. This appropriation 
44.4 	provides funding to campuses to address basic 
44.5 	needs insecurity, mental health, and other 
44.6 	high-need student support services by 
44.7 	increasing the amount of available resources 
44.8 	to students. In addition, this funding provides 
44.9 	systemwide resources and coordination, 
44.10 	including electronic connections for peer 
44.11 	support and professional clinical support for 
44.12 	mental health. These systemwide resources 
44.13 	must be available online 24 hours a day, seven 
44.14 	days a week.
44.15 	(f) $883,000 in fiscal year 2026 and $894,000 
44.16 	in fiscal year 2027 are for costs associated 
44.17 	with the increased employer contribution rates 
44.18 	for the higher education individual retirement 
44.19 	account plan under Minnesota Statutes, section 
44.20 	354B.23, subdivision 3.
44.21 	(g) $282,000 in fiscal year 2026 and $282,000 
44.22 	in fiscal year 2027 are to pay the cost of 
44.23 	supplies and equipment necessary to provide 
44.24 	access to menstrual products under Minnesota 
44.25 	Statutes, section 135A.1365.
44.26 	(h) $809,000 in fiscal year 2026 and $809,000 
44.27 	in fiscal year 2027 are for unemployment 
44.28 	insurance aid under Minnesota Statutes, 
44.29 	section 268.193, to institutions within the 
44.30 	system.
44.31 	(i) $500,000 in fiscal year 2026 and $500,000 
44.32 	in fiscal year 2027 are for the Juvenile 
44.33 	Detention Alternatives Initiative at 
44.34 	Metropolitan State University. Of this amount, 
44.35 	$280,000 each year is to provide juvenile 
45.1 	justice services and resources, including the 
45.2 	Juvenile Detention Alternatives Initiative, to 
45.3 	Minnesota counties and federally recognized 
45.4 	Tribes; and $220,000 each year is for funding 
45.5 	to local units of government, federally 
45.6 	recognized Tribes, and agencies to support 
45.7 	local Juvenile Detention Alternative 
45.8 	Initiatives, including but not limited to 
45.9 	alternatives to detention. Any unencumbered 
45.10 	balance remaining in the first year does not 
45.11 	cancel and is available in the second year.
45.12 	(j) $500,000 in fiscal year 2026 is to address 
45.13 	contamination of PFAS, as defined in 
45.14 	Minnesota Statutes, section 116.943, arising 
45.15 	from or associated with the use of firefighting 
45.16 	foam at the Lake Superior College Emergency 
45.17 	Response Training Center (ERTC) prior to 
45.18 	January 1, 2015. Money may be used to 
45.19 	conduct environmental investigation and 
45.20 	response activities, including ERTC program 
45.21 	accommodations, and reimburse past expenses 
45.22 	incurred for these activities. This is a onetime 
45.23 	appropriation.
45.24 	(k) $3,000,000 in fiscal year 2027 is for 
45.25 	acquisition, implementation, support, and 
45.26 	maintenance of automated identity verification 
45.27 	systems to combat enrollment fraud. 
45.28 	Minnesota Statutes, section 13.05, subdivision 
45.29 	11, applies to any contract entered into by 
45.30 	Minnesota State Colleges and Universities 
45.31 	regarding the automated identity verification 
45.32 	systems. This is a onetime appropriation. This 
45.33 	appropriation is available until June 30, 2029.
46.1 	(l) $5,000 in fiscal year 2027 is for a transfer 
46.2 	to Bemidji State University for campus 
46.3 	reforestation. This is a onetime appropriation.

46.4 	Sec. 67. ROCHESTER COMMUNITY AND TECHNICAL COLLEGE; CITY OF 
46.5 	ROCHESTER LEASE AGREEMENT.
 46.6 	(a) The Board of Trustees of the Minnesota State Colleges and Universities may enter 
46.7 	into a lease agreement with the city of Rochester, not to exceed 50 years, for the lease of 
46.8 	land on the Rochester Community and Technical College for the construction of a sports 
46.9 	facility.
46.10 	(b) Siting and design of the facility must be consistent with the college's master plan 
46.11 	and Minnesota State Colleges and Universities' building standards. Rochester Community 
46.12 	and Technical College may negotiate for use of the facility for partial benefit of student and 
46.13 	nonstudent purposes.

46.14 	Sec. 68. APPROPRIATION; FOSTERING INDEPENDENCE HIGHER 
46.15 	EDUCATION GRANTS.
 46.16 	(a) Notwithstanding Minnesota Statutes, chapter 116L, $570,000 in fiscal year 2026 is 
46.17 	appropriated from the workforce development fund to the commissioner of the Office of 
46.18 	Higher Education for grants to eligible students under Minnesota Statutes, section 136A.1241, 
46.19 	for the summer 2026 academic term. Any unspent funds from the summer 2026 term may 
46.20 	be expended during the 2026-2027 academic year. This is a onetime appropriation. This 
46.21 	appropriation is available until June 30, 2027.
46.22 	(b) $1,500,000 in fiscal year 2027 is appropriated from the general fund to the 
46.23 	commissioner of the Office of Higher Education for grants to eligible students under 
46.24 	Minnesota Statutes, section 136A.1241, for the 2026-2027 academic year. This is a onetime 
46.25 	appropriation.

46.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

46.27 	Sec. 69. REPEALER.
 46.28 	(a) Minnesota Statutes 2024, sections 124D.09, subdivision 10a; 136A.657; 136A.827, 
46.29 	subdivisions 1b and 2; 136A.834, subdivisions 2, 3, and 4; 136G.03, subdivision 11; and 
46.30 	136G.09, subdivision 10, are repealed.
47.1 	(b) Minnesota Statutes 2025 Supplement, section 136A.834, subdivisions 1 and 5, are 
47.2 	repealed.

APPENDIX 

Repealed Minnesota Statutes: H4252-4 

124D.09 POSTSECONDARY ENROLLMENT OPTIONS ACT.Subd. 10a.Statewide concurrent enrollment evaluation. 
The Office of Higher Education and the Department of Education shall collaborate in order to provide annual statewide evaluative information on concurrent enrollment programs to the legislature. The commissioners of the Office of Higher Education and the Department of Education, in consultation with stakeholders, including students and parents, must determine what student demographics and outcomes data are appropriate to include in the evaluation, and will use systems available to the office and department to minimize the reporting burden on postsecondary institutions. The commissioners must report by December 1, 2021, and each year thereafter, to the committees of the legislature with jurisdiction over early education through grade 12 and Minnesota State Colleges and Universities. 

136A.657 EXEMPTION; RELIGIOUS SCHOOLS.Subdivision 1.Exemption. 
(a) A program is exempt from the provisions of sections 136A.61 to 136A.71 if it is: 

(1) offered by a school or any department or branch of a school that is substantially owned, operated, or supported by a bona fide church or religious organization; 

(2) 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) 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. 

(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). 

Subd. 2.Limitation. 
(a) This exemption shall not extend to any program or school or to any department or branch of a school that 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. 

(b) This exemption shall not extend to any school that 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 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 that are not exempt from sections 136A.61 to 136A.71, and rules adopted pursuant thereto. 

(c) This exemption shall not extend to any school that uses any publication or advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school; its personnel, programs, or services; or occupational opportunities for its graduates for promotion and student recruitment. Exemptions denied under this section are subject to appeal under section 136A.65, subdivision 8, paragraph (c). If an appeal is initiated, the denial of the exemption is not effective until the final determination of the appeal, unless immediate effect is ordered by the court. 

Subd. 3.Scope. 
Nothing in sections 136A.61 to 136A.71, 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. 

Subd. 4.Statement required; religious nature. 
Any degree awarded upon completion of a religiously exempt program shall include descriptive language to make the religious nature of the award clear. 

Subd. 5.Application. 
A school that seeks an exemption under this section from the provisions of sections 136A.61 to 136A.71 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. 

136A.827 REFUNDS.Subd. 1b.Short-term programs. 
Licensed private career schools conducting programs not exceeding 40 hours in length shall not be required to make a full refund once a program has commenced and shall be allowed to prorate any refund based on the actual length of the program as stated in the private career school catalog or advertisements and the number of hours attended by the student. 

Subd. 2.Private career schools using written contracts. 
(a) Notwithstanding anything to the contrary, a private career school that uses a written contract or enrollment agreement shall refund all tuition, fees and other charges paid by a student, if the student gives notice of cancellation within five business days after the day on which the contract was executed regardless of whether the program has started. 

(b) When a student has been accepted by the private career school and has entered into a contractual agreement with the private career school and gives notice of cancellation following the fifth business day after the date of execution of contract, but before the start of the program in the case of resident private career schools, or before the first lesson has been serviced by the private career school in the case of distance education private career schools, all tuition, fees and other charges, except 15 percent of the total cost of the program but not to exceed $50, shall be refunded to the student. 

136A.834 EXEMPTION; RELIGIOUS SCHOOLS.Subdivision 1.Exemption. 
(a) A program is exempt from the provisions of sections 136A.821 to 136A.832 if it is: 

(1) offered by a school or any department or branch of a school that is substantially owned, operated, or supported by a bona fide church or religious organization; 

(2) 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) 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. 

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

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 that 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 or program that 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. 

(c) This exemption shall not extend to any school that uses any publication or advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school or its personnel, programs, services, or occupational opportunities for graduates for promotion and student recruitment. Exemptions denied under this section are subject to appeal under section 136A.65, subdivision 8, paragraph (c). If an appeal is initiated, the denial of the exemption is not effective until the final determination of the appeal, unless immediate effect is ordered by the court. 

Subd. 3.Scope. 
Nothing in sections 136A.82 to 136A.834 or the rules adopted under them shall be interpreted as permitting the office to determine the truth or falsity of any particular set of religious beliefs. 

Subd. 4.Descriptive language required. 
Any certificate, diploma, degree, or other formal recognition awarded upon completion of any religiously exempt program shall include such descriptive language as to make the religious nature of the award clear. 

Subd. 5.Application. 
A school that seeks an exemption from the provisions of sections 136A.82 to 136A.834 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. If a school fails to apply within 90 days of expiration, the school is subject to the fees and penalties under sections 136A.831 and 136A.832. 

136G.03 DEFINITIONS.Subd. 11.Dormant account. 
"Dormant account" means an account that has not received contributions for at least three consecutive years and the account statements sent to the account owner have been returned as undeliverable. 

136G.09 PLAN ACCOUNTS; GENERALLY.Subd. 10.Dormant accounts. 
(a) The plan administrator shall attempt to locate the account owner or the beneficiary, or both, to determine the disposition of a dormant account. A fee of five percent of the total account balance of the dormant account, not to exceed $100, plus allowable costs, may be charged for this service. Costs will not exceed $100 or five percent of the total account balance in the dormant account, whichever is less. 

(b) If the account owner, or the account owner's legal heirs, are not found after three attempts by the plan administrator, the remaining funds in the dormant account must be turned over to the office. The funds are treated as unclaimed property for purposes of sections 345.31 to 345.60, and the office shall turn all remaining dormant account funds over to the commissioner of commerce. If the dormant account has a matching grant account, all amounts in the beneficiary's matching grant account, if any, must be returned to the office.