as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to education; clarifying and changing 1.3 requirements for private career schools; providing for 1.4 rulemaking; amending Minnesota Statutes 1998, sections 1.5 141.21, subdivisions 3, 5, 6, and by adding 1.6 subdivisions; 141.22; 141.25, subdivisions 1, 2, 3, 5, 1.7 6, 7, 8, 9, 10, and 12; 141.26, subdivision 2; 1.8 141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12; 1.9 141.28, subdivisions 3 and 5; 141.29, subdivision 1; 1.10 141.31; 141.32; and 141.35; proposing coding for new 1.11 law in Minnesota Statutes, chapter 141; repealing 1.12 Minnesota Statutes 1998, sections 141.25, subdivisions 1.13 9a, 9b, and 11; and 141.36. 1.14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.15 Section 1. Minnesota Statutes 1998, section 141.21, 1.16 subdivision 3, is amended to read: 1.17 Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a 1.18 salary or for commission, acts as an agent, independent 1.19 contractor, salesperson, or counselor inprocuring or attempting1.20to procurerecruiting studentsor enrolleesfor acourse of1.21instruction by solicitation inprogram using anyform made1.22 method, at any place except on the actual business premises of 1.23 the schooland except for rendering, other than only providing 1.24 public informationserviceat the invitation or permission of a 1.25 school or educational organization. 1.26 Sec. 2. Minnesota Statutes 1998, section 141.21, 1.27 subdivision 5, is amended to read: 1.28 Subd. 5. [SCHOOL.] "School" means any person, within or 1.29withoutoutside the state,thatwho maintains, advertises, 2.1 solicits, or conducts anycourse of instructionprogram for 2.2 profitor for a tuition chargeat any level other than 2.3 2.4 baccalaureate or graduate programs, andwhichis not 2.5 specifically exempted bythe provisions ofsections 141.21 to 2.6141.36141.35. 2.7 Sec. 3. Minnesota Statutes 1998, section 141.21, 2.8 subdivision 6, is amended to read: 2.9 Subd. 6. [COURSEOF INSTRUCTION.] "Courseof instruction" 2.10 means any classroom, correspondence, or extensioncourse of2.11 instruction; any subunit of a program; or any combination 2.12 thereof. 2.13 Sec. 4. Minnesota Statutes 1998, section 141.21, is 2.14 amended by adding a subdivision to read: 2.15 Subd. 8. [PROGRAM.] "Program" means any course or grouping 2.16 of courses that is advertised or listed in a school's catalog, 2.17 brochures, or other publications, or for which the school grants 2.18 a formal recognition. 2.19 Sec. 5. Minnesota Statutes 1998, section 141.21, is 2.20 amended by adding a subdivision to read: 2.21 Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education 2.22 school" means a school that establishes, keeps, or maintains a 2.23 facility or location where a program is offered through 2.24 correspondence, telecommunication, or electronic media. 2.25 Sec. 6. Minnesota Statutes 1998, section 141.22, is 2.26 amended to read: 2.27 141.22 [CITATION.] 2.28 Sections 141.21 to141.36141.35 may be cited as the 2.29 PrivateBusiness, Trade and CorrespondenceCareer School Act. 2.30 Sec. 7. Minnesota Statutes 1998, section 141.25, 2.31 subdivision 1, is amended to read: 2.32 Subdivision 1. [REQUIRED.]NoA school shall not maintain, 2.33 advertise, solicit for, or conduct anycourse of instruction2.34 program in Minnesota without first obtaining a license from the 2.35 office. 2.36 Sec. 8. Minnesota Statutes 1998, section 141.25, 2.37 subdivision 2, is amended to read: 3.1 Subd. 2. [CONTRACT UNENFORCEABLE.]AnyA contract entered 3.2 into withanya person for acourse of instructionprogram 3.3after November 15, 1969,by or on behalf ofanya person 3.4 operatinganya school to which a license has not been 3.5 issuedpursuant tounder sections 141.21 to141.36141.35, shall 3.6 be unenforceable in any actionbrought thereon. 3.7 Sec. 9. Minnesota Statutes 1998, section 141.25, 3.8 subdivision 3, is amended to read: 3.9 Subd. 3. [APPLICATION.] Application for a license shall be 3.10 on forms prepared and furnished by the office, and shallcontain3.11 include the following andsuchother information as the office 3.12 may require: 3.13(a)(1) the title or name of the school,together with3.14 ownership and controlling officers, members, managing employees, 3.15 and director; 3.16(b)(2) the specificfields of instructionprograms which 3.17 will be offered and the specific purposes ofsuchthe 3.18 instruction; 3.19(c)(3) the place or places wheresuchthe instruction will 3.20 be given; 3.21(d)(4) a listing of the equipment available for 3.22 instruction in eachcourse of instructionprogram; 3.23(e)(5) the maximum enrollment to be accommodated with 3.24 equipment available in each specifiedcourse of instruction3.25 program; 3.26(f)(6) the qualifications of instructors and supervisors 3.27 in each specifiedcourse of instructionprogram; 3.28(g)(7) a current balance sheet, income statement, and 3.29 adequate supporting documentation, prepared and certified by an 3.30 independent public accountant or CPA; 3.31(h)(8) copies of all media advertising and promotional 3.32 literature and brochures currently used or reasonably expected 3.33 to be used bysuchthe school; 3.34(i)(9) copies of all Minnesota enrollment agreement forms 3.35 and contract forms and all enrollment agreement forms and 3.36 contract forms used in Minnesota; and 4.1 (10) gross income earned in the preceding year from student 4.2 tuition, fees, and other required institutional charges, unless 4.3 the school files with the office a surety bond equal to at least 4.4 $50,000 as described in subdivision 5. 4.5 Sec. 10. Minnesota Statutes 1998, section 141.25, 4.6 subdivision 5, is amended to read: 4.7 Subd. 5. [BOND.] (a) No license shall be issued to any 4.8 school which maintains, conducts, solicits for, or advertises 4.9 within the state of Minnesota anycourse of instructionprogram, 4.10 unless the applicant files with the office a continuous 4.11 corporate surety bondin the sum of $10,000written by a company 4.12 authorized to do business in Minnesota conditioned upon the 4.13 faithful performance of all contracts and agreements with 4.14 students made by the applicant.Such4.15 (b) The amount of the surety bond shall be ten percent of 4.16 the preceding year's gross income from student tuition, fees, 4.17 and other required institutional charges, but in no event less 4.18 than $10,000 nor greater than $50,000, except that a school may 4.19 deposit a greater amount at its own discretion. A school in 4.20 each annual application for licensure must compute the amount of 4.21 the surety bond and verify that the amount of the surety bond 4.22 complies with this subdivision, unless the school maintains a 4.23 surety bond equal to at least $50,000. A school that operates 4.24 at two or more locations may combine gross income from student 4.25 tuition, fees, and other required institutional charges for all 4.26 locations for the purpose of determining the annual surety bond 4.27 requirement. The gross tuition and fees used to determine the 4.28 amount of the surety bond required for a school having a license 4.29 for the sole purpose of recruiting students in Minnesota shall 4.30 be only that paid to the school by the students recruited from 4.31 Minnesota. 4.32 (c) The bond shall run to the state of Minnesota and to any 4.33 person who may have a cause of action against the applicant 4.34 arising at any time after the bond is filed and before it is 4.35 canceled for breach of any contract or agreement made by the 4.36 applicant with any student. The aggregate liability of the 5.1 surety for all breaches of the conditions of the bond shall not 5.2 exceed the principal sumof $10,000deposited by the school 5.3 under paragraph (b). The surety of anysuchbond may cancel it 5.4 upon giving 60 days' notice in writing to the office and shall 5.5 be relieved of liability for any breach of condition occurring 5.6 after the effective date of cancellation. 5.7 (d) In lieu of bond, the applicant may deposit with the 5.8 state treasurerthea sumof $10,000equal to the amount of the 5.9 required surety bond in cash, or securitiessuchas may be 5.10 legally purchased by savings banks or for trust funds in an 5.11 aggregate market valueof $10,000equal to the amount of the 5.12 required surety bond. 5.13 (e) Failure of a school to post and maintain the required 5.14 surety bond or deposit under paragraph (d) may result in denial, 5.15 suspension, or revocation of the school's license. 5.16 Sec. 11. Minnesota Statutes 1998, section 141.25, 5.17 subdivision 6, is amended to read: 5.18 Subd. 6. [RESIDENT AGENT.] Schoolsdomiciledlocated 5.19 outside the state of Minnesotawhichthat offer, advertise, 5.20 solicit for, or conduct anycourse of instructionprogram within 5.21 the state of Minnesota shall first file with the secretary of 5.22 state a sworn statement designating a resident agent authorized 5.23 to receive service of process.SuchThe statement shall 5.24 designate the secretary of state as resident agent for service 5.25 of process in the absence ofana designated agentotherwise so5.26designated.In the eventIf a school fails to filesuchthe 5.27 statement, the secretary of state isherebydesignated as the 5.28 resident agent authorized to receive service of process.Such5.29 The authorization shall be irrevocable as to causes of action 5.30 arising out of transactions occurring prior to the filing of 5.31 written notice of withdrawal from the state of Minnesota filed 5.32 with the secretary of state. 5.33 Sec. 12. Minnesota Statutes 1998, section 141.25, 5.34 subdivision 7, is amended to read: 5.35 Subd. 7. [MINIMUM STANDARDS.]NoA license shall be issued 5.36unlessif the office first determines: 6.1(a)(1) that the applicant has a sound financial condition 6.2 with sufficient resources available to: 6.3 (i) meet the school's financial obligations;to6.4 (ii) refund all tuition and other charges, within a 6.5 reasonable period of time, in the event of dissolution of the 6.6 school or in the event of any justifiable claims for refund 6.7 against the school by the student body;to6.8 (iii) provide adequate service to its students and 6.9 prospective students; andfor the proper use6.10 (iv) maintain and supportofthe schoolto be maintained; 6.11(b)(2) that the applicant has satisfactorytraining6.12 facilities with sufficient tools and equipment and the necessary 6.13 number of work stations totrainprepare adequately the students 6.14 currently enrolled, and those proposed to be enrolled; 6.15(c)(3) that the applicant employs a sufficient number of 6.16 qualifiedinstructors trained by experience and education6.17 teaching personnel togiveprovide thetrainingeducational 6.18 programs contemplated; 6.19(d)(4) that the school has an organizational framework 6.20 with administrative and instructional personnel to provide the 6.21 programs and services it intends to offer; 6.22 (5) that the premises and conditions under which the 6.23 students work and study are sanitary, healthful, and safe, 6.24 according to modern standards; 6.25(e)(6) that the quality and content of each occupational 6.26 course or programof instructionor studyshall be of such6.27quality and content as to provideprovides education and 6.28training which will adequately prepareadequate preparation to 6.29 enrolled students for entry level positions in the occupation 6.30 for whichtrainedprepared; 6.31(f)(7) that the living quarters which are owned, 6.32 maintained, or approved by the applicant for students are 6.33 sanitary and safe; 6.34(g)(8) that the contract or enrollment agreement used by 6.35 the school complies with thefollowingprovisions:in section 6.36 141.265; 7.1(1) the name and address of the school must be clearly7.2stated;7.3(2) inclusion of a clear and conspicuous disclosure that7.4such agreement becomes a legally binding instrument upon written7.5acceptance of the student by the school unless canceled pursuant7.6to section 141.271;7.7(3) must contain the school's cancellation and refund7.8policy which shall be clearly and conspicuously entitled,7.9"Buyer's Right to Cancel";7.10(4) the total cost of the course including tuition and all7.11other charges shall be clearly stated;7.12(5) the name and description of the course, including the7.13number of hours or credits of classroom instruction and/or home7.14study lessons shall be included;7.15(6) no contract or agreement shall(9) that contracts and 7.16 agreements do not contain a wage assignment provisionand/oror 7.17 a confession of judgment clause; and 7.18(7) each contract or enrollment agreement shall contain a7.19clear and conspicuous explanation of the form and means of7.20notice the student should use in the event the student elects to7.21cancel the contract or sale, the effective date of cancellation,7.22and the name and address of the seller to which the notice7.23should be sent or delivered; and7.24(h)(10) that there has been no adjudication of fraud or 7.25 misrepresentation in any criminal, civil, or administrative 7.26 proceeding in any jurisdiction against the school or its owner, 7.27 officers, agents, or sponsoring organization. 7.28 Sec. 13. Minnesota Statutes 1998, section 141.25, 7.29 subdivision 8, is amended to read: 7.30 Subd. 8. [FEES AND TERMS OF LICENSE.](a) ApplicationsAn 7.31 application for an initial license under sections 141.21 7.32 to141.36141.35 shall be accompanied by a nonrefundable 7.33 application fee established by the office that is sufficient to 7.34 recover, but not exceed, its administrative costs. 7.35(b)All licenses shall expire one year from the date issued 7.36 by the office.Each renewal application shall be accompanied by8.1a nonrefundable renewal fee established by the office that is8.2sufficient to recover, but does not exceed, its administrative8.3costs.8.4(c) Application for renewal of license shall be made at8.5least 30 days before the expiration of the school's current8.6license. Each renewal form shall be supplied by the office. It8.7shall not be necessary for an applicant to supply all8.8information required in the initial application at the time of8.9renewal unless requested by the office.8.10 Sec. 14. Minnesota Statutes 1998, section 141.25, 8.11 subdivision 9, is amended to read: 8.12 Subd. 9. [CATALOG OR BROCHURE.] Before a license is issued 8.13 to a school, other than one which offers exclusively a8.14correspondence course of instruction, the school shall furnish 8.15 to the office a catalog or brochurecontaining the8.16followingincluding: 8.17 (1) identifying data, such as volume number and date of 8.18 publication; 8.19 (2) name and address of the school and its governing body 8.20 and officials; 8.21 (3) a calendar of the school showing legal holidays, 8.22 beginning and ending dates of each course quarter, term, or 8.23 semester, and other important dates; 8.24 (4) the school policy and regulations on enrollment 8.25 including dates and specific entrance requirements for 8.26 eachcourseprogram; 8.27 (5) the school policy and regulations about leave, 8.28 absences, class cuts, make-up work, tardiness, and interruptions 8.29 for unsatisfactory attendance; 8.30 (6) the school policy and regulations about standards of 8.31 progress for the student including the grading system of the 8.32 school, the minimum grades considered satisfactory, conditions 8.33 for interruption for unsatisfactory grades or progress, a 8.34 description of any probationary period allowed by the school, 8.35 and conditions of reentrance for those dismissed for 8.36 unsatisfactory progress; 9.1 (7) the school policy and regulations about student conduct 9.2 and conditions for dismissal for unsatisfactory conduct; 9.3 (8) a detailed schedule of fees, charges for tuition, 9.4 books, supplies, tools, student activities, laboratory fees, 9.5 service charges, rentals, deposits, and all other charges; 9.6 (9) the school policy and regulations, including an 9.7 explanation of section 141.271, about refunding tuition, fees, 9.8 and other charges if the student does not enter thecourse9.9 program, withdraws from the program, or the program is 9.10 discontinued; 9.11 (10) a description of the available facilities and 9.12 equipment; 9.13 (11) a course outline for each course offered showing 9.14 course objectives, subjects or units in the course, type of work 9.15 or skill to be learned, and approximate time, hours, or credits 9.16 to be spent on each subject or unit;and9.17 (12) the school policy and regulations about granting 9.18 credit for previous education andtrainingpreparation; 9.19 (13) a procedure for investigating and resolving student 9.20 complaints; and 9.21 (14) the name and address of the Minnesota higher education 9.22 services office. 9.23 A school exclusively offering a correspondence program is 9.24 exempt from clauses (3) and (5). 9.25 Sec. 15. Minnesota Statutes 1998, section 141.25, 9.26 subdivision 10, is amended to read: 9.27 Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is 9.28 issued to a school that offers, advertises or implies a 9.29 placement service, the school shall file with the office for the 9.30 past year and thereafter at reasonable intervals determined by 9.31 the office, a certified copy of the school's placement record, 9.32 containing a list of graduates, a description of theirjobjobs, 9.33namenames of theiremployeremployers, and other information as 9.34 the office may prescribe. 9.35 (b) Each school that offers a placement service shall 9.36 furnish to each prospective student, prior to enrollment, 10.1 written information concerning the percentage of the previous 10.2 year's graduates who were placed in the occupation for which 10.3trainedprepared or in related employment. 10.4 Sec. 16. Minnesota Statutes 1998, section 141.25, 10.5 subdivision 12, is amended to read: 10.6 Subd. 12. [PERMANENT RECORDS.]Before a license is issued10.7to a school, eachA school licensed under this chapter and 10.8 located in Minnesota shall maintain a permanentrecordsrecord 10.9 forall students enrolled at any timeeach student for 50 years 10.10 from the last date of the student's attendance.EachA school 10.11 licensed under this chapter and offering a correspondencecourse10.12of instructionprogram to a student located in Minnesota shall 10.13 maintain a permanentrecordsrecord for each Minnesota 10.14students enrolled at any timestudent for 50 years from the last 10.15 date of the student's attendance. Records include school 10.16 transcripts, documents, and files containing student data about 10.17 academic credits earned, courses completed, grades awarded, 10.18 degrees awarded, and periods of attendance. To preserve 10.19 permanent records, a school shall submit a plan that meets the 10.20 following requirements: 10.21(a)(1) at least one copy of the records must be held in a 10.22 secure depository; 10.23(b)(2) an appropriate official must be designated to 10.24 provide a student with copies of records or a transcript upon 10.25 request; 10.26(c)(3) an alternative method of complying withparagraphs10.27(a) and (b)clauses (1) and (2) must be established if the 10.28 school ceases to exist; and 10.29(d)(4) a continuous surety bond must be filed with the 10.30 office in an amount not to exceed $20,000 if the school has no 10.31 binding agreement for preserving student records or a trust must 10.32 be arranged if the school ceases to exist. 10.33 Sec. 17. [141.251] [LICENSE RENEWAL.] 10.34 Subdivision 1. [CONDITIONS.] The office shall adopt rules 10.35 establishing the different conditions for renewal of a license 10.36 based on the record of the school. The conditions shall permit 11.1 renewal based on a relaxed standard of scrutiny for a school 11.2 that has demonstrated the quality of its program and operation 11.3 through longevity and performance. The office shall specify 11.4 minimum longevity standards and performance indicators that must 11.5 be met before a school may be permitted to operate under the 11.6 relaxed standard of scrutiny. 11.7 Subd. 2. [APPLICATION.] Application for renewal of a 11.8 license must be made at least 30 days before expiration of the 11.9 current license on a form provided by the office. A renewal 11.10 application shall be accompanied by a nonrefundable fee 11.11 established by the office that is sufficient to recover, but 11.12 does not exceed, its administrative costs. 11.13 Sec. 18. Minnesota Statutes 1998, section 141.26, 11.14 subdivision 2, is amended to read: 11.15 Subd. 2. [APPLICATION FOR PERMIT.] (a) The application for 11.16 the permit shall state the full name, address, previous 11.17 employment, and such other information concerning the solicitor 11.18 applicant as the office may require. 11.19 (b) The application shall have attached to it a certified 11.20 affidavit signed by a school official and the solicitor 11.21 attesting to the fact that the applicant has been furnished a 11.22 copy, has read and has knowledge of the provisions of this 11.23 chapter and Minnesota Rules, parts 3530.6500 to 3530.7800. 11.24 Sec. 19. [141.265] [INFORMATION TO STUDENTS.] 11.25 Subdivision 1. [CATALOG.] A school or its agent shall 11.26 deliver the catalog or brochure required in section 141.25, 11.27 subdivision 9, to a prospective student in a time or manner that 11.28 provides the prospective student ample opportunity to read the 11.29 catalog or brochure before signing a contract or enrollment 11.30 agreement or before being accepted by a school that does not use 11.31 a written contract or enrollment agreement. 11.32 Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment 11.33 agreement used by a school must include at least the following: 11.34 (1) the name and address of the school, clearly stated; 11.35 (2) a clear and conspicuous disclosure that the agreement 11.36 is a legally binding instrument upon written acceptance of the 12.1 student by the school unless canceled under section 141.271; 12.2 (3) the school's cancellation and refund policy that shall 12.3 be clearly and conspicuously entitled "Buyer's Right to Cancel"; 12.4 (4) a clear statement of total cost of the program 12.5 including tuition and all other charges; 12.6 (5) the name and description of the program, including the 12.7 number of hours or credits of classroom instruction, 12.8 correspondence lessons, or both that shall be included; and 12.9 (6) a clear and conspicuous explanation of the form and 12.10 means of notice the student should use in the event the student 12.11 elects to cancel the contract or sale, the effective date of 12.12 cancellation, and the name and address of the seller to which 12.13 the notice should be sent or delivered. 12.14 Subd. 3. [CONTRACT COPIES.] Immediately upon signing of 12.15 the enrollment agreement or the contract by a prospective 12.16 student, the school or agent shall furnish to the prospective 12.17 student an exact duplicate copy of the enrollment agreement or 12.18 contract. 12.19 Sec. 20. Minnesota Statutes 1998, section 141.271, 12.20 subdivision 1, is amended to read: 12.21 Subdivision 1. [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT12.22TO REFUNDSTUDENT.] For the purposes of this section, "student" 12.23 means the party to the contract, whether the party is the 12.24 student, the student's parent or guardian, or other person on 12.25 behalf of the student. 12.26 Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall 12.27 notify each student, in writing, of acceptance or rejection. In 12.28 the event that the student is rejected by the school, all 12.29 tuition, fees and other charges shall be refunded. 12.30 Sec. 21. Minnesota Statutes 1998, section 141.271, 12.31 subdivision 2, is amended to read: 12.32 Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a) 12.33 Notwithstanding anything to the contrary,everya schoolwhich12.34 thatutilizesuses a written contract or enrollment agreement 12.35 shall refund all tuition, fees and other charges paid by a 12.36 student, if the student gives written notice of cancellation 13.1 within five business days after the day on which the contract 13.2 was executed regardless of whether thecourse of instruction13.3 program has started. 13.4 (b)With respect to those schools utilizing a written13.5contract or enrollment agreement,When a student has been 13.6 accepted by the school and has entered into a contractual 13.7 agreement with the school and gives written notice of 13.8 cancellation following the fifth business day after the date of 13.9 execution of contract, but before the start of thecourse of13.10instructionprogram in the case of resident schools, or before 13.11 the first lesson has been serviced by the school in the case of 13.12 correspondence(home study)schools, all tuition, fees and other 13.13 charges, except 15 percent of the total cost of thecourse13.14 program but not to exceed $50, shall be refunded to the student. 13.15 Sec. 22. Minnesota Statutes 1998, section 141.271, 13.16 subdivision 3, is amended to read: 13.17 Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 13.18 Notwithstanding anything to the contrary,everya schoolwhich13.19 that does notutilizeuse a written contract or enrollment 13.20 agreement shall refund all tuition, fees and other charges paid 13.21 by a student if the student gives written notice of cancellation 13.22 within five business days after the day on which the student is 13.23 accepted by the school regardless of whether thecourse of13.24instructionprogram has started. 13.25 (b)With respect to those schools not utilizing a written13.26contract or enrollment agreement,When a student has been 13.27 accepted by the school and gives written notice of cancellation 13.28 following the fifth business day after the day of acceptance by 13.29 the school, but before the start of thecourse of13.30instructionprogram, in the case of resident schools, or before 13.31 the first lesson has been serviced by the school, in the case of 13.32 correspondence(home study)schools, all tuition, fees and other 13.33 charges, except 15 percent of the total cost of thecourse13.34 program but not to exceed $50, shall be refunded to the student. 13.35 Sec. 23. Minnesota Statutes 1998, section 141.271, 13.36 subdivision 4, is amended to read: 14.1 Subd. 4. [RESIDENT SCHOOLS.]With respect to all schools14.2offering a resident course of instruction,When a student has 14.3 been accepted bythea school offering a resident program and 14.4 gives written notice of cancellation after the start of the 14.5 period of instruction for which the student has been charged, 14.6 but before completion of 75 percent of the period of instruction 14.7for which the student has been charged, the amount charged for 14.8 tuition, fees, and all other chargesfor the completed portion14.9of the period of instruction for which the student has been14.10chargedshallnot exceed the pro ratabe prorated as a portion 14.11 of the total charges for tuition, fees, and all other charges 14.12that the length of the completed portion of the period of14.13instruction for which the student has been charged bears to its14.14total length, plus. An additional 25 percent of the total cost 14.15 of the period of instructionfor which the student has been14.16chargedmay be added, but shall nottoexceed $100. After 14.17 completion of 75 percent of the period of instruction for which 14.18 the student has been charged, no refunds are required. 14.19 Sec. 24. Minnesota Statutes 1998, section 141.271, 14.20 subdivision 5, is amended to read: 14.21 Subd. 5. [CORRESPONDENCE HOME STUDY SCHOOLS.]With respect14.22to all schools offering a correspondence (home study) course of14.23instruction,When a student has been accepted bythea 14.24 correspondence school and gives written notice of cancellation 14.25 after the first lesson has been completed by the student and 14.26 serviced by the school, but before completion of 75 percent of 14.27 thecourse of instructionprogram, the amount charged for 14.28 tuition, fees and all other charges for the completed lessons 14.29 shallnot exceed the pro ratabe prorated as a portion of the 14.30 total charges for tuition, fees and all other chargesthat the14.31number of lessons completed by the student bears to the total14.32number of lessons offered, plus. An additional 25 percent of 14.33 the total cost of thecourseprogram may be added but shall not 14.34toexceed $75. After completion of 75 percent of thecourse of14.35instructionprogram, no refunds are required. 14.36 Sec. 25. Minnesota Statutes 1998, section 141.271, 15.1 subdivision 6, is amended to read: 15.2 Subd. 6. [COMBINATION CORRESPONDENCE-RESIDENT SCHOOLS.] 15.3With respect to all schools offering a combination15.4correspondence (home study)-resident course of instruction,When 15.5 a student has been accepted bythea school that offers a 15.6 combination correspondence-residence program and gives written 15.7 notice of cancellation after the start of thecourse of15.8instructionprogram or after the first lesson has been completed 15.9 by the student and serviced by the school, whichever phase comes 15.10 first, the school shall refund all tuition, fees and other 15.11 charges as providedforin subdivision 4 if cancellation occurs 15.12 during the resident portion, and as provided for in subdivision 15.13 5 if cancellation occurs during the correspondence portion;15.14provided that,. If the cancellation occurs before the student 15.15 has commenced one of the phases, the price of that phase shall 15.16 not be considered in making the proration and the student shall 15.17 be entitled to a full refund of theprice thereofcharges. 15.18 Conversely, if the student has completed a phase of thecourse15.19 program before cancellation, theprice thereofcharges may be 15.20 retained by the school provided that the total tuition, fees and 15.21 other charges for each phase have been stated separately in the 15.22 school's catalog and contract or enrollment agreement. 15.23 Sec. 26. Minnesota Statutes 1998, section 141.271, 15.24 subdivision 12, is amended to read: 15.25 Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.]NoA school 15.26 shall not negotiate any promissory instrument received as 15.27 payment of tuition or other charge prior to completion of 50 15.28 percent of thecourse of instructionprogram. Prior tosuch15.29 that time,suchinstruments may be transferred by assignment to 15.30 purchasers who shall be subject to all defenses available 15.31 against the school named as payee. 15.32 Sec. 27. Minnesota Statutes 1998, section 141.28, 15.33 subdivision 3, is amended to read: 15.34 Subd. 3. [FALSE STATEMENTS.]NoA school, agent, or 15.35 solicitor shall not make, or cause to be made, any statement or 15.36 representation, oral, written or visual, in connection with the 16.1 offering or publicizing of acourseprogram, ifsuchthe school, 16.2 agent, or solicitor knows or reasonably should have known the 16.3 statement or representation to be false, fraudulent, deceptive, 16.4 substantially inaccurate, or misleading. 16.5 Sec. 28. Minnesota Statutes 1998, section 141.28, 16.6 subdivision 5, is amended to read: 16.7 Subd. 5. [IMPROBABLECOURSEPROGRAM COMPLETION OR 16.8 EMPLOYMENT.]NoA school, agent, or solicitor shall not enroll a 16.9 prospective student when it is obvious that the prospective 16.10 student is unlikely to successfully complete acourse of16.11instructionprogram or is unlikely to qualify for employment in 16.12 the vocation or field for which thetrainingpreparation is 16.13 designed unless this fact is affirmatively disclosed to the 16.14 prospective student. If a prospective student expresses a 16.15 desire to enroll after such disclosure, a disclaimer may be 16.16 obtained by the school.SuchThe disclaimer shall be signed by 16.17 the student and shall state substantiallyas followsone or both 16.18 of the following: "I am fully aware that it is unlikely I will 16.19 be able to successfully complete thecourse of instruction16.20 program" and/or"I am fully aware of the improbability or 16.21 impossibility that I will qualify for employment in the vocation 16.22 or field for which thecourseprogram was designed." 16.23 Sec. 29. Minnesota Statutes 1998, section 141.29, 16.24 subdivision 1, is amended to read: 16.25 Subdivision 1. [GROUNDS.] The office may, after notice and 16.26 upon providing an opportunity for a hearing,pursuant tounder 16.27 chapter 14 if requested by the parties adversely affected, 16.28 refuse to issue, refuse to renew, revoke, or suspendanya 16.29 license or solicitor's permit for anyone or any combinationof 16.30 the following grounds: 16.31(a)(1) violation of any provisions of sections 141.21 to 16.32141.36141.35 or any rulepromulgatedadopted by the office; 16.33(b)(2) furnishing to the office false, misleading, or 16.34 incomplete information; 16.35(c)(3) presenting to prospective students information 16.36 relating to the schoolwhichthat is false, fraudulent, 17.1 deceptive, substantially inaccurate, or misleading; 17.2(d)(4) refusal to allow reasonable inspection or supply 17.3 reasonable information after written requestthereforby the 17.4 office; 17.5(e)(5) the existence of any circumstancewhichthat would 17.6 be grounds for the refusal of an initial or renewal license 17.7 under section 141.25. 17.8 Sec. 30. Minnesota Statutes 1998, section 141.31, is 17.9 amended to read: 17.10 141.31 [INJUNCTION.] 17.11 Upon application of the attorney general the district 17.12 courts shall have jurisdiction to enjoin any violation of 17.13 sections 141.21 to141.36141.35. 17.14 Sec. 31. Minnesota Statutes 1998, section 141.32, is 17.15 amended to read: 17.16 141.32 [PENALTY.] 17.17 Violation ofany provisionsa provision of this chapter 17.18 shall be a misdemeanor. Each day's failure to comply with this 17.19 chapter shall be a separate violation. The office shall adopt 17.20 rules establishing a list of civil penalties and the fine 17.21 associated with each violation. 17.22 Sec. 32. Minnesota Statutes 1998, section 141.35, is 17.23 amended to read: 17.24 141.35 [EXEMPTIONS.] 17.25None of the provisions ofSections 141.21 to141.36141.35 17.26 shall not apply to the following: 17.27(a)(1)colleges authorized by the laws of Minnesota or of17.28any other state or foreign country to grant degreespublic 17.29 post-secondary institutions; 17.30 (2) private post-secondary institutions registered under 17.31 sections 136A.61 to 136A.71 that are nonprofit, or that are for 17.32 profit and registered under sections 136A.61 to 136A.71 as of 17.33 December 31, 1998, or are approved to offer exclusively 17.34 baccalaureate or postbaccalaureate programs; 17.35(b)(3) schools of nursing accredited by the state board of 17.36 nursing or an equivalent public board of another state or 18.1 foreign country; 18.2(c) public schools as defined in section 120A.05,18.3subdivisions 9, 11, 13, and 17;18.4(d)(4) private schools complying with the requirements of 18.5 section 120A.22, subdivision24; 18.6(e) private and parochial nonprofit schools exempt from18.7taxation under the constitution of Minnesota;18.8(f)(5) courses taught to students in a valid 18.9 apprenticeship program taught by or required by a trade union; 18.10(g)(6) schools exclusively engaged in training physically 18.11 or mentally handicapped persons for the state of Minnesota; 18.12(h)(7) schoolsnow or hereafterlicensed by boards 18.13 authorized under Minnesota law to issuesuchlicenses; 18.14(i)(8) schools and educational programs, or training 18.15 programs, conducted by persons, firms, corporations, or 18.16 associations, for the training of their own employees, for which 18.17 no fee is charged the employee; 18.18(j)(9) schools engaged exclusively in the teaching of 18.19 purely avocational, recreational, or remedial subjects as 18.20 determined by the office. Private schools teaching a method or18.21procedure to increase the speed with which a student reads are18.22not within this exemption; 18.23(k)(10) driver training schools and instructors as defined 18.24 in section 171.33, subdivisions 1 and 2; 18.25(l)(11) classes, courses, or programs conducted by a bona 18.26 fide trade, professional, or fraternal organization, solely for 18.27 that organization's membership; 18.28(m) courses of instruction(12) programs in the fine arts 18.29 provided by organizations exempt from taxationpursuant tounder 18.30 section 290.05 and registered with the attorney generalpursuant18.31tounder chapter 309. For the purposes of this clause, "fine 18.32 arts" means activities resulting in artistic creation or 18.33 artistic performance of works of the imagination which are 18.34 engaged in for the primary purpose of creative expression rather 18.35 than commercial sale or employment. In making this determination 18.36 the office may seek the advice and recommendation of the 19.1 Minnesota board of the arts; 19.2(n)(13) classes, courses, or programs intended to fulfill 19.3 the continuing education requirements for licensure or 19.4 certification in a profession,which classes, courses, or19.5programsthat have been approved by a legislatively or 19.6 judicially established board or agency responsible for 19.7 regulating the practice of the profession, andwhichthat are 19.8 offered primarily toa person who currently practicesan 19.9 individual practicing the profession; 19.10(o)(14) classes, courses, or programs intended to prepare 19.11 students to sit for undergraduate, graduate, postgraduate, or 19.12 occupational licensing and occupational entrance examinations; 19.13(p)(15) classes, courses, or programsof a seminar nature19.14 providing 16 or fewer clock hours of instruction that are not 19.15 part of the curriculum for an occupation or are not intended to 19.16 prepare a person for entry level employment; 19.17(q)(16) classes, courses, or programsof a seminar nature19.18 providing instruction in personal development, modeling, or 19.19 acting;and19.20(r)(17) training or instructional programs, in which one 19.21 instructor teaches an individual student, that are not part of 19.22 the curriculum for an occupation or are not intended to prepare 19.23 a person for entry level employment; and 19.24 (18) schools with no physical presence in Minnesota engaged 19.25 exclusively in offering distance education courses or programs 19.26 that are located in and regulated by other states or 19.27 jurisdictions. 19.28 Sec. 33. [REPEALER.] 19.29 Minnesota Statutes 1998, sections 141.25, subdivisions 9a, 19.30 9b, and 11; and 141.36, are repealed.