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HF 1181

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/18/2021 03:54pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to higher education; providing for certain policy changes, including
restrictions on limiting student access to transcripts and modifications to certain
grant and loan programs, school accountability provisions, and college savings
plans; amending Minnesota Statutes 2020, sections 136A.121, subdivision 2;
136A.125, subdivision 2; 136A.1704; 136A.246, subdivisions 1, 2, 3, 4, 6, 7, 8,
by adding a subdivision; 136A.63, subdivision 2; 136A.645; 136A.653, subdivision
5; 136A.675; 136A.68; 136A.822, subdivision 12; 136A.8225; 136A.823, by
adding a subdivision; 136A.827, subdivisions 4, 8; 136G.05, subdivision 10;
proposing coding for new law in Minnesota Statutes, chapter 135A; repealing
Minnesota Statutes 2020, sections 136A.1703; 136A.823, subdivision 2; Minnesota
Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; 4830.9090.

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

Section 1.

new text begin [135A.144] TRANSCRIPT ACCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Debt" means any money, obligation, claim, or sum, due or owed, or alleged to be
due or owed, from a student that appears on the student account. Debt does not include the
fee, if any, charged to all students for the actual costs of providing the transcripts.
new text end

new text begin (c) "School" means any public institution governed by the Board of Trustees of the
Minnesota State Colleges and Universities, private postsecondary educational institution
as defined under 136A.62 or 136A.821, or any public or private entity, responsible for
providing transcripts to current or former students of an educational institution. Institutions
governed by the Board of Regents of the University of Minnesota are requested to comply
with this section.
new text end

new text begin (d) "Transcript" means the statement of an individual's academic record, including
official transcripts or the certified statement of an individual's academic record provided
by a school, and unofficial transcripts or the uncertified statement of an individual's academic
record provided by a school.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited practices. new text end

new text begin A school must not:
new text end

new text begin (1) refuse to provide a transcript for a current or former student because the student owes
a debt to the school if:
new text end

new text begin (i) the debt owed is less than $500;
new text end

new text begin (ii) the student has entered into and, as determined by the institution, is in compliance
with a payment plan with the school;
new text end

new text begin (iii) the transcript request is made by a prospective employer for the student; or
new text end

new text begin (iv) the school has sent the debt for repayment to the Department of Revenue or to a
collections agency, as defined by section 332.31, subdivision 3, external to the institution;
or
new text end

new text begin (2) charge an additional or a higher fee for obtaining a transcript or provide less favorable
treatment of a transcript request because a student owes a debt to the originating school.
new text end

new text begin Subd. 3. new text end

new text begin Institutional policy. new text end

new text begin (a) Institutions that use transcript issuance as a tool for
debt collection must have a policy which is accessible to students that outlines how they
collect on debts owed to the institution.
new text end

new text begin (b) Institutions shall seek to use transcript issuance as a tool for debt collection for the
fewest number of cases possible.
new text end

Sec. 2.

Minnesota Statutes 2020, section 136A.121, subdivision 2, is amended to read:


Subd. 2.

Eligibility for grants.

(a) An applicant is eligible to be considered for a grant,
regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections
136A.095 to 136A.131 if the office finds that the applicant:

(1) is a resident of the state of Minnesota;

(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
and has met all requirements for admission as a student to an eligible college or technical
college of choice as defined in sections 136A.095 to 136A.131;

(3) has met the financial need criteria established in Minnesota Rules;

(4) is not in default, as defined by the office, of any federal or state student educational
loan; and

(5) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages.

(b) A student deleted text beginwhodeleted text endnew text begin is entitled to an additional semester or the equivalent of grant eligibility
if the student
new text end withdraws from enrollmentnew text begin:
new text end

new text begin (1)new text end for active military service after December 31, 2002, because the student was ordered
to active military service as defined in section 190.05, subdivision 5b or 5cdeleted text begin, or who withdraws
from enrollment
deleted text endnew text begin;
new text end

new text begin (2)new text end for a deleted text beginmajor illnessdeleted text endnew text begin serious health conditionnew text end, while under the care of a medical
professional, that substantially limits the student's ability to complete the term deleted text beginis entitled to
an additional semester or the equivalent of grant eligibility.
deleted text endnew text begin; or
new text end

new text begin (3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.
new text end

Sec. 3.

Minnesota Statutes 2020, section 136A.125, subdivision 2, is amended to read:


Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if the
applicant:

(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the
state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled
as defined in section 125A.02, and who is receiving or will receive care on a regular basis
from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a recipient
of assistance from the Minnesota family investment program;

(4) either has not earned a baccalaureate degree and has been enrolled full time less than
ten semesters or the equivalent, or has earned a baccalaureate degree and has been enrolled
full time less than ten semesters or the equivalent in a graduate or professional degree
program;

(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate,
graduate, or professional degree, diploma, or certificate;

(6) is enrolled in at least six credits in an undergraduate program or one credit in a
graduate or professional program in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student deleted text beginwhodeleted text endnew text begin is entitled to an additional semester or the equivalent of grant eligibility
and will be considered to be in continuing enrollment status upon return if the student
new text end
withdraws from enrollmentnew text begin:
new text end

new text begin (1)new text end for active military service after December 31, 2002, because the student was ordered
to active military service as defined in section 190.05, subdivision 5b or 5cdeleted text begin, ordeleted text endnew text begin;
new text end

new text begin (2)new text end for a deleted text beginmajor illnessdeleted text endnew text begin serious health conditionnew text end, while under the care of a medical
professional, that substantially limits the student's ability to complete the term deleted text beginis entitled to
an additional semester or the equivalent of grant eligibility and will be considered to be in
continuing enrollment status upon return.
deleted text endnew text begin; or
new text end

new text begin (3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.
new text end

Sec. 4.

Minnesota Statutes 2020, section 136A.1704, is amended to read:


136A.1704 STUDENT LOAN REFINANCING.

The office may refinance student and parent loans as provided by this section and on
other terms and conditions the office prescribes. The office may establish credit requirements
for borrowers and determine what types of student and parent loans will be eligible for
refinancing. The refinanced loan need not have been made through a loan program
administered by the office. Loans shall be made with available funds in the loan capital
fund under section 136A.1785. deleted text beginThedeleted text endnew text begin Anew text end maximum amount of outstanding loans refinanced
under this section may deleted text beginnot exceed $100,000,000deleted text endnew text begin be determined by the officenew text end. The maximum
loan under this section may not exceed deleted text begin$70,000deleted text endnew text begin $250,000new text end.new text begin In determining the maximum
amount of outstanding loans refinanced, the office shall take into consideration funding
capacity for the SELF Refi program, delinquency and default loss management, levels of
student debt, current financial market conditions, and other considerations to protect the
financial stability of the program.
new text end

Sec. 5.

Minnesota Statutes 2020, section 136A.246, subdivision 1, is amended to read:


Subdivision 1.

Program created.

The commissioner shall make grants for the training
of employees to achieve the competency standard for an occupation identified by the
commissioner of labor and industry under section 175.45 and Laws 2014, chapter 312,
article 3, section 21. deleted text begin"Competency standard" has the meaning given in section 175.45,
subdivision 2.
deleted text end An individual must, no later than the commencement of the training, be an
employee of the employer seeking a grant to train that individual.

Sec. 6.

Minnesota Statutes 2020, section 136A.246, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Competency standard" has the meaning given in section 175.45, subdivision 2.
new text end

new text begin (c) "Eligible training" means training provided by an eligible training provider that:
new text end

new text begin (1) includes training to meet one or more identified competency standards;
new text end

new text begin (2) is instructor-led for a majority of the training; and
new text end

new text begin (3) results in the employee receiving an industry-recognized degree, certificate, or
credential.
new text end

new text begin (d) "Eligible training provider" means an institution:
new text end

new text begin (1) operated by the Board of Trustees of the Minnesota State Colleges and Universities
or the Board of Regents of the University of Minnesota;
new text end

new text begin (2) licensed or registered as a postsecondary institution by the office; or
new text end

new text begin (3) exempt from the provisions of sections 136A.822 to 136A.834 or 136A.61 to 136A.71
as approved by the office.
new text end

new text begin (e) "Industry-recognized degrees, certificates, or credentials" means:
new text end

new text begin (1) certificates, diplomas, or degrees issued by a postsecondary institution;
new text end

new text begin (2) registered apprenticeship certifications or certificates;
new text end

new text begin (3) occupational licenses or registrations;
new text end

new text begin (4) certifications issued by, or recognized by, industry or professional associations; and
new text end

new text begin (5) other certifications as approved by the commissioner.
new text end

Sec. 7.

Minnesota Statutes 2020, section 136A.246, subdivision 2, is amended to read:


Subd. 2.

Eligible grantees.

An employer or an organization representing the employer
is eligible to apply for a grant to train employees if the employer has an employee who is
in or is to be trained to be in an occupation for which a competency standard has been
identified and the employee has not attained the competency standard prior to the
commencement of the planned training. deleted text beginTraining need not address all aspects of a competency
standard but may address only the competencies of a standard that an employee is lacking.
An employee must receive an industry-recognized degree, certificate, or credential upon
successful completion of the training.
deleted text endnew text begin A grantee must have an agreement with an eligible
training provider to provide eligible training prior to payment of grant.
new text end

Sec. 8.

Minnesota Statutes 2020, section 136A.246, subdivision 3, is amended to read:


Subd. 3.

new text beginEligible new text endtraining deleted text begininstitution or programdeleted text endnew text begin providernew text end.

deleted text beginThe employer must have
an agreement with a training institution or program to provide the employee competency
standard training prior to the grant award. The training may be provided by any institution
or program having trainers qualified to instruct on the competency standard.
deleted text end

The Office of Higher Education and the Department of Labor and Industry must cooperate
in maintaining an inventory of degree, certificate, and credential programs that provide
training to meet competency standards. The inventory must be posted on each agency's
website with contact information for each program deleted text beginby September 1, 2016deleted text end. The postings
must be updated periodically.

Sec. 9.

Minnesota Statutes 2020, section 136A.246, subdivision 4, is amended to read:


Subd. 4.

Application.

Applications must be made to the commissioner on a form provided
by the commissioner. The commissioner must, to the extent possible, make the application
form as short and simple to complete as is reasonably possible. The commissioner shall
establish a schedule for applications and grants. The application must include, without
limitation:

(1) the projected number of employee trainees;

(2) the number of projected employee trainees who graduated from high school or passed
the commissioner of education-selected high school equivalency test in the current or
immediately preceding calendar year;

(3) the competency standard for which training will be provided;

(4) the credential the employee will receive upon completion of training;

(5) the name and address of the new text begineligible new text endtraining deleted text begininstitution or program and a signed
statement by the institution or program that it is able and agrees to provide the training
deleted text endnew text begin
provider
new text end;

(6) the period of the training; and

(7) the cost of the training charged by the new text begineligible new text endtraining deleted text begininstitution or program and
certified by the institution or program
deleted text endnew text begin providernew text end. The cost of training includes tuition, fees,
and required books and materials.

An application may be made for training of employees of multiple employers either by
the employers or by an organization on their behalf.

Sec. 10.

Minnesota Statutes 2020, section 136A.246, subdivision 6, is amended to read:


Subd. 6.

Employer match.

A large employer must pay for at least 25 percent of thenew text begin
eligible
new text end training deleted text begininstitution's or program'sdeleted text endnew text begin provider'snew text end charge for thenew text begin eligiblenew text end training to the
deleted text begin training institution or programdeleted text endnew text begin providernew text end. For the purpose of this subdivision, a "large
employer" means a business with more than $25,000,000 in annual new text begingross new text endrevenue in the
previous calendar year.

Sec. 11.

Minnesota Statutes 2020, section 136A.246, subdivision 7, is amended to read:


Subd. 7.

Payment of grant.

(a) The commissioner shall pay the grant to the employer
after the employer presents satisfactory evidence to the commissioner that the employer
has paid the new text begineligible new text endtraining deleted text begininstitution or programdeleted text endnew text begin providernew text end.

(b) If an employer demonstrates that it is not able to pay for the training in advance, the
commissioner shall make grant payments directly to the new text begineligible new text endtraining deleted text begininstitution or
program
deleted text endnew text begin providernew text end.

Sec. 12.

Minnesota Statutes 2020, section 136A.246, subdivision 8, is amended to read:


Subd. 8.

Grant amounts.

(a) The maximum grant for an application is $150,000. A
grant may not exceed $6,000 per year for a maximum of four years per employee.

(b) An employee who is attending an eligible new text begintraining provider that is annew text end institution new text beginunder
section 136A.103
new text end must apply for Pell and state grants as a condition of payment for training
that employee under this section.

Sec. 13.

Minnesota Statutes 2020, section 136A.63, subdivision 2, is amended to read:


Subd. 2.

Sale of an institution.

Within 30 days of a change of its ownership a school
must submit a registration renewal application, all usual and ordinary information and
materials for an initial registration, and applicable registration fees for a new institution.
For purposes of this subdivision, "change of ownership" means a merger or consolidation
with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
the assets of a school; the transfer of a controlling interest of at least 51 percent of the
school's stock; new text beginthe school enters receivership; new text endor a change in the nonprofit or for-profit status
of a school.

Sec. 14.

Minnesota Statutes 2020, section 136A.645, is amended to read:


136A.645 SCHOOL CLOSURE.

(a) When a school intends to cease postsecondary education operations, announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its registration status or ability to meet criteria for approval under section 136A.65, the
school must provide the office:

(1) a notice of closure, including the name of the school, the name of the school owner,
an active mailing address and telephone number that the school owner may be reached at
after the school physically closes, the name of the school director, and the planned date for
termination of postsecondary operations;

(2) a report of all students currently enrolled and all students enrolled within the prior
120 days, including the following information for each student: name, address, school e-mail
address, alternate e-mail address, program of study, number of credits completed, number
of credits remaining, and enrollment status at closure;

(3) a report of refunds due to any student and the amount due;

(4) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students has
ceased;

(5) a copy of any communication between the school's accreditors about the school
closure;

(6) confirmation that the requirements for student records under section 136A.68 have
been satisfied, including:

(i) the planned date for the transfer of the student records;

(ii) confirmation of the name and address of the organization to receive and hold the
student records; and

(iii) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request;

(7) academic information, including the school's most recent catalog, all course syllabi,
and faculty credential information; and

(8) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must (i) provide comparable education and training and (ii) agree that students transferring
from the closing school pay only what the cost of tuition and fees remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school.

(b) Without limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:

(1) has an unscheduled nonemergency closure or cancellation of classes for more than
24 hours without prior notice to the office;

(2) announces it is closed or closing; deleted text beginor
deleted text end

(3) files for bankruptcydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) fails to complete a renewal application when required under section 136A.63,
subdivision 2.
new text end

(c) When a school is deemed to have ceased operations, the office shall provide the
school a reasonable time to correct student records and grant credentials. After that time,
the office must revoke the school's registration. This revocation is not appealable under
section 136A.65, subdivision 8.

Sec. 15.

Minnesota Statutes 2020, section 136A.653, subdivision 5, is amended to read:


Subd. 5.

deleted text beginRegionallydeleted text endnew text begin Higher Learning Commissionnew text end accredited institutions in
Minnesota.

(a) A deleted text beginregionally accrediteddeleted text end postsecondary institution new text beginaccredited by the Higher
Learning Commission or its successor
new text endwith its primary physical location in Minnesota is
exempt from the provisions of sections 136A.61 to 136A.71, including related fees, when
it creates new or modifies existing:

(1) majors, minors, concentrations, specializations, and areas of emphasis within approved
degrees;

(2) nondegree programs within approved degrees;

(3) underlying curriculum or courses;

(4) modes of delivery; and

(5) locations.

(b) The institution must annually notify the commissioner of the exempt actions listed
in paragraph (a) and, upon the commissioner's request, must provide additional information
about the action.

(c) The institution must notify the commissioner within 60 days of a program closing.

(d) Nothing in this subdivision exempts an institution from the annual registration and
degree approval requirements of sections 136A.61 to 136A.71.

Sec. 16.

Minnesota Statutes 2020, section 136A.675, is amended to read:


136A.675 RISK ANALYSIS.

new text begin Subdivision 1. new text end

new text begin Standard development and usage. new text end

new text begin(a) To screen and detect whether an
institution may not be financially or administratively responsible,
new text endthe office shall develop
deleted text begin a set ofdeleted text end financial and deleted text beginprogrammatic evaluation metrics to aid in the detection of the failure
or potential failure of a school to meet the standards established under sections 136A.61 to
136A.71
deleted text endnew text begin nonfinancial indicatorsnew text end. deleted text beginThese metrics shall include indicators of financial stability,
changes in the senior management or the financial aid and senior administrative staff of an
institution, changes in enrollment, changes in program offerings, and changes in faculty
staffing patterns.
deleted text end The development of financial deleted text beginstandardsdeleted text endnew text begin and nonfinancial indicatorsnew text end shall
use industry standards as deleted text beginbenchmarksdeleted text endnew text begin guidancenew text end. deleted text beginThe development of the nonfinancial
standards shall include a measure of trends and dramatic changes in trends or practice.
deleted text end

new text begin (b) Annually, new text endthe deleted text beginagencydeleted text endnew text begin officenew text end must deleted text beginspecify the metrics and standards for each area anddeleted text end
provide a copy new text beginof the financial and nonfinancial indicators new text endto each registered institution and
post deleted text beginthemdeleted text endnew text begin a list of reviewed indicatorsnew text end on the deleted text beginagencydeleted text endnew text begin officenew text end website.

new text begin (c)new text end The deleted text beginagencydeleted text endnew text begin officenew text end shall use regularly reported data submitted to the federal
government or other regulatory or accreditation agencies wherever possible. deleted text beginThe agency
may require more frequent data reporting by an institution to ascertain whether the standards
are being met.
deleted text end

new text begin (d) The office must use the indicators in this subdivision to identify institutions at
potential risk of being unable to meet the standards established under sections 136A.646;
136A.64, subdivision 3; 136A.65, subdivisions 1a and 4, paragraph (a), clauses (1), (2), (3),
and (7); and 136A.685 and thus unlikely to meet its financial obligations or complete its
academic terms for the next 18 months.
new text end

new text begin Subd. 2. new text end

new text begin Additional reporting. new text end

new text begin (a) In addition to the information required for the
indicators in subdivision 1, an institution must notify the office within ten business days if
any of the events in paragraphs (b) to (e) occur.
new text end

new text begin (b) Related to revenue, debt, and cash flow, notice is required if:
new text end

new text begin (1) the institution defaulted on a debt payment or covenant and has not received a waiver
of the violation from the financial institution within 60 days;
new text end

new text begin (2) for institutions with a federal composite score of less than 1.5, the institution's owner
withdraws equity that directly results in a composite score of less than 1.0, unless the
withdrawal is a transfer between affiliated entities included in a common composite score;
new text end

new text begin (3) the United States Department of Education requires a 25 percent or greater Letter of
Credit, except when the letter of credit is imposed due to a change of ownership;
new text end

new text begin (4) the United States Department of Education requires Heightened Cash Monitoring 2;
new text end

new text begin (5) the institution receives written notification that it violated the United States
Department of Education's revenue requirement under United States Code , title 20, section
1094(a)(24), as amended; or
new text end

new text begin (6) the institution receives written notification by the United States Department of
Education that it has fallen below minimum financial standards and that its continued
participation in Title IV is conditioned upon satisfying either the Zone Alternative, Code
of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c).
new text end

new text begin (c) Related to accreditation and licensing, notice is required if:
new text end

new text begin (1) the institution receives written notification of probation, warning, show-cause, or
loss of institutional accreditation;
new text end

new text begin (2) the institution receives written notification that its institutional accreditor lost federal
recognition; or
new text end

new text begin (3) the institution receives written notification that it has materially violated state
authorization or institution licensing requirements in a different state that may lead to or
has led to the termination of the institution's ability to continue to provide educational
programs or otherwise continue to operate in that state.
new text end

new text begin (d) Related to securities, notice is required if:
new text end

new text begin (1) the Securities and Exchange Commission: (i) issues an order suspending or revoking
the registration of the institution's securities or (ii) suspends trading of the institution's
securities on any national securities exchange;
new text end

new text begin (2) the national securities exchange on which the institution's securities are traded notifies
the institution that it is not in compliance with the exchange's listing requirements and the
institution's securities are delisted; or
new text end

new text begin (3) the Securities and Exchange Commission is not in timely receipt of a required report
and did not issue an extension to file the report.
new text end

new text begin (e) Related to criminal and civil investigations, notice is required if:
new text end

new text begin (1) the institution receives written notification of a felony criminal indictment or charges
of the institution's owner;
new text end

new text begin (2) the institution receives written notification of criminal indictment or charges of the
institution's officers related to operations of the institution; or
new text end

new text begin (3) there has been a criminal, civil, or administrative adjudication of fraud or
misrepresentation in Minnesota or in another state or jurisdiction against the institution or
its owner, officers, agents, or sponsoring organization.
new text end

new text begin Subd. 3. new text end

new text begin Determination procedures. new text end

new text begin (a) The office shall conduct a systematic evaluation
under this paragraph and make a preliminary determination as to whether action under
paragraph (e) is necessary, if the office: (1) identifies a potential risk under subdivision 1,
paragraph (d); (2) receives notification from an institution under subdivision 2; or (3)
identifies other exigent circumstances impacting the institution that may deny students a
reasonable opportunity to complete their education program at the institution or through an
alternate institution with minimal disruption. The systematic evaluation must, to the extent
practicable, be a collaboration between the office and the institution. The office must request
additional context and information from the institution that demonstrates the administrative
and financial responsibility of the institution. If the institution is not financially or
administratively responsible, a contingency plan must be implemented either collaboratively
or as part of a final determination under paragraph (e), clause (4).
new text end

new text begin (b) The office shall provide notice in writing to the institution of the preliminary
determination. The notice shall provide the analysis used by the office to make the
determination, a request for the institution to provide additional context and information
that demonstrates the administrative and financial responsibility of the institution not provided
under paragraph (a), any potential action the office may take under paragraph (e), and a
deadline for responding to the notice. The institution shall have not fewer than ten business
days to respond to the preliminary determination.
new text end

new text begin (c) The response from the institution to provide additional context and information must
be written and may include a collaborative consultation with the office. In its response, the
institution shall provide additional context, financial data, and other information, including
but not limited to evidence of sound business practices, institutional financial health,
compliance with the requirements of sections 136A.61 to 136A.71, or sufficient and timely
plans to cure any noncompliance or to manage financial health and risk.
new text end

new text begin (d) If the institution does not respond to the office's notice and request for additional
context and information within the time required, the office's preliminary determination
shall become final and the office may take any of the actions specified in the notice required
by paragraph (e). If the institution responds to the office's notice, the office must reevaluate
the preliminary determination. The office shall use the additional context and information
provided by the institution to make a final determination and determine which actions under
paragraph (e), if any, are necessary to mitigate risk to students and state financial aid under
this chapter.
new text end

new text begin (e) The office may use a final determination to:
new text end

new text begin (1) revoke, suspend, or refuse to renew registration, approval of an institution's degree,
or use of a regulated term in its name under section 136A.65, subdivision 8;
new text end

new text begin (2) require periodic monitoring and submission of reports on the institution's
administrative and financial responsibility to ascertain whether compliance and financial
risk improves;
new text end

new text begin (3) require periodic collaborative consultations with the institution on noncompliance
with sections 136A.61 to 136A.71, or how the institution is managing financial health and
risk;
new text end

new text begin (4) require the institution to submit contingency plans such as teach-out plans or transfer
pathways for students;
new text end

new text begin (5) prohibit the institution from accepting tuition and fee payments made through cash,
alternative loans, or the equivalent, prior to the add/drop period of the current period of
instruction;
new text end

new text begin (6) prohibit the institution from enrolling new students;
new text end

new text begin (7) initiate alternative processes and communications with students enrolled at the
institution;
new text end

new text begin (8) require a surety bond under section 136A.646; or
new text end

new text begin (9) submit institution closure information under section 136A.645.
new text end

new text begin (f) The office shall provide to the institution written notice of the final determination
and the actions taken under paragraph (e).
new text end

new text begin Subd. 4. new text end

new text begin Data classification. new text end

new text begin Data under this section shall be classified as financial
records under section 136A.64, subdivision 2.
new text end

Sec. 17.

Minnesota Statutes 2020, section 136A.68, is amended to read:


136A.68 RECORDS.

new text begin (a) new text endA registered school shall maintain a permanent record for each student for 50 years
from the last date of the student's attendance. A registered school offering distance instruction
to a student located in Minnesota shall maintain a permanent record for each Minnesota
student for 50 years from the last date of the student's attendance. Records include a student's
academic transcript, documents, and files containing student data about academic credits
earned, courses completed, grades awarded, degrees awarded, and periods of attendance.

new text begin (b) A registered school shall maintain records required for professional licensure in
Minnesota that are not included in paragraph (a) for ten years from the last date of the
student's attendance or the number of years required by an institutional or programmatic
accreditor, whichever is greater.
new text end

new text begin (c) new text endTo preserve permanent records, a school shall submit a plan that meets the following
requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository or
duplicate records must be maintained off site in a secure location and in a manner approved
by the office;

(2) an appropriate official must be designated to provide a student with copies of records
or a transcript upon request;

(3) an alternative method approved by the office of complying with clauses (1) and (2)
must be established if the school ceases to exist; and

(4) if the school has no binding agreement approved by the office for preserving student
records, a continuous surety bond or an irrevocable letter of credit issued by a financial
institution must be filed with the office in an amount not to exceed $20,000. The bond or
irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure,
the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover,
maintain, digitize, and destroy academic records.

Sec. 18.

Minnesota Statutes 2020, section 136A.822, subdivision 12, is amended to read:


Subd. 12.

Permanent student records.

new text begin(a) new text endA private career school licensed under
sections 136A.82 to 136A.834 and located in Minnesota shall maintain a permanent student
record for each student for 50 years from the last date of the student's attendance. A private
career school licensed under this chapter and offering distance instruction to a student located
in Minnesota shall maintain a permanent record for each Minnesota student for 50 years
from the last date of the student's attendance. Records include school transcripts, documents,
and files containing student data about academic credits earned, courses completed, grades
awarded, degrees awarded, and periods of attendance.

new text begin (b) A private career school licensed under sections 136A.82 to 136A.834 and located
in Minnesota shall maintain a permanent student record required for professional licensure
in Minnesota for each student for ten years from the last date of the student's attendance or
the number of years required by an institutional or programmatic accreditor, whichever is
greater. A private career school licensed under this chapter and offering distance instruction
to a student located in Minnesota shall maintain records required for professional licensure
in Minnesota that are not included in paragraph (a) for each Minnesota student for ten years
from the last date of the student's attendance or the number of years required by an
institutional or programmatic accreditor, whichever is greater.
new text end

To preserve permanent student records, a private career school shall submit a plan that
meets the following requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository;

(2) an appropriate official must be designated to provide a student with copies of records
or a transcript upon request;

(3) an alternative method, approved by the office, of complying with clauses (1) and (2)
must be established if the private career school ceases to exist; and

(4) a continuous surety bond or irrevocable letter of credit issued by a financial institution
must be filed with the office in an amount not to exceed $20,000 if the private career school
has no binding agreement approved by the office, for preserving student records. The bond
or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school
closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve,
recover, maintain, digitize, and destroy academic records.

Sec. 19.

Minnesota Statutes 2020, section 136A.8225, is amended to read:


136A.8225 SCHOOL CLOSURE.

(a) When a school intends to cease postsecondary education operations, announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its licensure status or ability to meet criteria for approval under section 136A.822, subdivision
8, the school must provide the office:

(1) a notice of closure, including the name of the school, the name of the school owner,
an active mailing address and telephone number that the school owner may be reached at
after the school physically closes, the name of the school director, and the planned date for
termination of postsecondary operations;

(2) a report of all students currently enrolled and all students enrolled within the prior
120 days, including the following information for each student: name, address, school e-mail
address, alternate e-mail address, program of study, number of credits completed, number
of credits remaining, and enrollment status at closure;

(3) a report of refunds due to any student and the amount due;

(4) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students has
ceased;

(5) a copy of any communication between the school's accreditors about the school
closure;

(6) confirmation that the requirements for student records under section 136A.822,
subdivision 12, have been satisfied, including:

(i) the planned date for the transfer of the student records;

(ii) confirmation of the name and address of the organization to receive and hold the
student records; and

(iii) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request;

(7) academic information, including the school's most recent catalog, all course syllabi,
and faculty credential information; and

(8) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must (i) provide comparable education and training and (ii) agree that students transferring
from the closing school pay only what the cost of tuition and fees remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school.

(b) Without limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:

(1) has an unscheduled nonemergency closure or cancellation of classes for more than
24 hours without prior notice to the office;

(2) announces it is closed or closing; deleted text beginor
deleted text end

(3) files for bankruptcydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) fails to complete a renewal application when required under section 136A.823,
subdivision 3.
new text end

(c) When a school is deemed to have ceased operations, the office shall provide the
school a reasonable time to correct student records and grant credentials. After that time,
the office must revoke the school's license. This revocation is not appealable under section
136A.829, subdivision 2.

Sec. 20.

Minnesota Statutes 2020, section 136A.823, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Change of ownership. new text end

new text begin Within 30 days of a change of ownership, a school must
submit a registration renewal application, the information and materials for an initial
registration under section 136A.822, subdivision 4, and the applicable registration fees for
a new institution under section 136A.824, subdivision 1. For purposes of this subdivision,
"change of ownership" means: a merger or consolidation with a corporation; a sale, lease,
exchange, or other disposition of all or substantially all of the assets of a school; the transfer
of a controlling interest of at least 51 percent of the school's stock; entering into receivership;
or a change in the nonprofit or for-profit status of a school.
new text end

Sec. 21.

Minnesota Statutes 2020, section 136A.827, subdivision 4, is amended to read:


Subd. 4.

Proration.

new text begin(a) new text endWhen a student has been accepted by a private career school
and gives notice of cancellation after the program of instruction has begun, deleted text beginbut before
completion of 75 percent of the program, the amount charged for tuition, fees and all other
charges shall be prorated based on the number of days in the term as a portion of the total
charges for tuition, fees and all other charges. An additional 25 percent of the total cost of
the program may be added but shall not exceed $100. After completion of 75 percent of the
program, no refunds are required.
deleted text endnew text begin the student is entitled to a refund if, at the last documented
date of attendance, the student has not completed at least 75 percent of the entire program
of instruction. For purposes of this subdivision, program of instruction is calculated under
paragraph (c) or (d). Program of instruction does not mean one term, a payment period, a
module, or any other portion of the entire instructional program.
new text end

new text begin (b)new text end A notice of cancellation from a student under this subdivision must be confirmed in
writing by the private career school and mailed to the student's last known address. The
confirmation from the school must state that the school has withdrawn the student from
enrollment, and if this action was not the student's intent, the student must contact the school.

new text begin (c) The length of a program of instruction for a program that has a defined calendar start
and end date that does not change after the program has begun equals the number of days
from the first scheduled date of the program through the last scheduled date of the program.
To calculate the completion percentage, divide the number of calendar days from the first
date of the program through the student's last documented date of attendance by the length
of the program of instruction, and truncate the result after the second digit following the
decimal point. If the completion percentage is less than 75 percent, the private career school
may retain:
new text end

new text begin (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
by the completion percentage; plus
new text end

new text begin (2) the initial program application fees, not to exceed $50; plus
new text end

new text begin (3) the lesser of (i) 25 percent of the total tuition or (ii) $100.
new text end

new text begin (d) The length of a program of instruction for a program that is measured in clock hours
equals the number of clock hours the student was scheduled to attend. To calculate the
completion percentage, divide the number of clock hours that the student actually attended
by the length of the program of instruction, and truncate the result after the second digit
following the decimal point. If the completion percentage is less than 75 percent, the private
career school may retain:
new text end

new text begin (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
by the completion percentage; plus
new text end

new text begin (2) the initial program application fees, not to exceed $50; plus
new text end

new text begin (3) the lesser of (i) 25 percent of the total tuition or (ii) $100.
new text end

Sec. 22.

Minnesota Statutes 2020, section 136A.827, subdivision 8, is amended to read:


Subd. 8.

Cancellation occurrence.

deleted text beginWritten notice of cancellation shall take place on
the date the letter of cancellation is postmarked or, in the cases where the notice is hand
carried, it shall occur on the date the notice is delivered to the private career school.
deleted text endnew text begin Notice
of cancellation shall be the date a student notifies a private career school of the student's
intention to withdraw or otherwise leave the program of study. The student is not required
to provide a written notice. The private career school may require a student to provide the
student's notification only to specific offices or personnel at the school as long as this
requirement is documented as part of the "Student's Right to Cancel" in all places that the
information appears, including on the private career school's website. The date of the notice
of cancellation may or may not be the same date as the student's last documented date of
attendance.
new text end If a student has not attended class for a period of deleted text begin21deleted text endnew text begin 14new text end consecutive days without
contacting the private career school to deleted text beginindicate an intent to continue in the private career
school
deleted text endnew text begin provide notice of cancellationnew text end or otherwise deleted text beginmakingdeleted text endnew text begin makenew text end arrangements concerning
the absence, the student is considered to have withdrawn from the private career school for
all purposes as of the student's last documented date of attendance.

Sec. 23.

Minnesota Statutes 2020, section 136G.05, subdivision 10, is amended to read:


Subd. 10.

Data.

new text begin(a) new text endAccount owner data, account data, and data on beneficiaries of
accounts are private data on individuals or nonpublic data as defined in section 13.02, deleted text beginexcept
that the names and addresses of the beneficiaries of accounts that receive matching grants
are public
deleted text endnew text begin unless the data qualifies for the exception in paragraph (b)new text end.

new text begin (b) The commissioner may share an account owner's name and Social Security number
with the Department of Revenue in order to compile studies under section 270B.04. Data
sharing authorized by this paragraph is only for purposes of evaluative research and analysis
of the plan in order to make ongoing informed decisions regarding plan administration.
new text end

Sec. 24. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, sections 136A.1703; and 136A.823, subdivision 2, new text end new text begin are
repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; and 4830.9090, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H1181-1

136A.1703 INCOME-CONTINGENT LOANS.

The office shall administer an income-contingent loan repayment program to assist graduates of Minnesota schools in medicine, dentistry, pharmacy, chiropractic medicine, public health, and veterinary medicine, and Minnesota residents graduating from optometry and osteopathic medicine programs. Applicant data collected by the office for this program may be disclosed to a consumer credit reporting agency under the same conditions as those that apply to the supplemental loan program under section 136A.162. No new applicants may be accepted after June 30, 1995.

136A.823 LICENSE RENEWAL.

Subd. 2.

Conditions.

The office shall adopt rules establishing the conditions for renewal of a license. The conditions shall permit two levels of renewal based on the record of the private career school. A private career school that has demonstrated the quality of its program and operation through longevity and performance in the state may renew its license based on a relaxed standard of scrutiny. A private career school that has been in operation in Minnesota for a limited period of time or that has not performed adequately on performance indicators shall renew its license based on a strict standard of scrutiny. The office shall specify minimum longevity standards and performance indicators that must be met before a private career school may be permitted to operate under the relaxed standard of scrutiny. The performance indicators used in this determination shall include, but not be limited to: regional or national accreditation, loan default rates, placement rate of graduates, student withdrawal rates, audit results, student complaints, and school status with the United States Department of Education. Private career schools that meet the requirements established in rule shall be required to submit a full relicensure report once every four years, and in the interim years will be exempt from the requirements of section 136A.822, subdivision 4, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.

Repealed Minnesota Rule: H1181-1

4830.9050 SCOPE.

Parts 4830.9050 to 4830.9090 govern state grants used as a match to the National Service Scholars Program of the Corporation for National Service.

4830.9060 DEFINITIONS.

Subpart 1.

Scope.

For the purposes of parts 4830.9050 to 4830.9090, the terms defined in this part have the meanings given them.

Subp. 2.

Certificate of eligibility.

"Certificate of eligibility" means the certificate issued by the Minnesota Office of Higher Education to a student for proof of eligibility for a Minnesota National Service Scholars Matching Grant after the office receives written notification from the National Service Scholars Program that the student has been awarded a National Service Scholarship.

Subp. 3.

Commissioner.

"Commissioner" means the commissioner of the Minnesota Office of Higher Education.

Subp. 4.

Eligible institution.

"Eligible institution" means a postsecondary institution that is an eligible institution as defined in part 4830.0300, subparts 1 and 2, and Minnesota Statutes, section 136A.101, subdivision 4.

Subp. 5.

Minnesota National Service Scholars Matching Grant.

"Minnesota National Service Scholars Matching Grant" means the award amount under Laws 1997, chapter 183, article 2, section 19.

4830.9070 ELIGIBLE RECIPIENT.

To be eligible for a Minnesota National Service Scholars Matching Grant, a student must:

A.

be enrolled in an eligible institution;

B.

receive a national service scholarship from the Corporation for National Service; and

C.

provide a copy of the certificate of eligibility to the eligible institution.

4830.9080 INSTITUTIONAL REQUEST AND DISBURSEMENT OF FUNDS FOR GRANTS.

Subpart 1.

Institutional request.

After verifying a student's eligibility, the eligible institution must submit a written request to the commissioner for payment of the Minnesota National Service Scholars Matching Grant for the student. A copy of the student's certificate of eligibility must accompany the institution's request for payment. The request for payment must verify that the student has received a national service scholarship, indicate the name and address of the postsecondary institution enrolled in by the student, and the academic term for which the award will be used.

Subp. 2.

Deadline.

The request for grant money must be received by the commissioner no later than the last day of classes for the fiscal year for which grant money is requested.

Subp. 3.

Disbursement of funds.

An institution must not disburse matching grant money unless the student is attending or has completed an academic term during the fiscal year for which the student received a national service scholarship.

Subp. 4.

Refunds.

A matching grant award is made for a student's attendance at a specific institution for a term or terms within the state fiscal year. If a recipient fails to attend, the institution must refund the entire award to the commissioner. If a recipient withdraws before completing the term, the institution must determine if a refund is due to the commissioner. Refunds to the office are determined by:

A.

calculating the percentage that the matching grant represents of the student's total financial aid package for the applicable term, excluding funds received from federal Title IV programs, United States Code, title 20, sections 1070-1099;

B.

calculating the total tuition refund amount using the refund calculation required of schools participating in federal Title IV programs;

C.

subtracting the federal aid programs' refund amount from item B to determine the remaining tuition refund amount; and

D.

multiplying the percentage in item A by the amount calculated in item C to determine the amount to be refunded to the matching grant program.

Refunded money is available to the commissioner for awards to other eligible students.

4830.9090 PAYMENTS TO INSTITUTIONS.

Subpart 1.

Time of payment.

The commissioner shall send a Minnesota National Service Scholars Matching Grant for an eligible student to the eligible institution within 30 days of receipt of a request for payment.

Subp. 2.

Withholding payment.

The commissioner shall withhold payment for a student until the eligible institution's request for payment is complete and the student's eligibility is verified.