SF 1041

as introduced - 88th Legislature (2013 - 2014) Posted on 04/18/2013 03:35pm

A bill for an act
relating to higher education; making technical, conforming, policy, and clarifying
changes to provisions related to higher education law; modifying provisions
related to the higher education advisory council, student grants and aid, and
school licensure and registration; modifying procedures related to terminating
institutions from financial aid programs; modifying certain definitions; modifying
dissemination of certain data; amending Minnesota Statutes 2012, sections 13.47,
subdivision 3; 136A.031, subdivision 2; 136A.101, subdivisions 8, 9; 136A.125,
subdivision 2; 136A.233, subdivision 2; 136A.646; 136A.65, subdivisions 4,
8; 136A.653, by adding a subdivision; 141.25, subdivision 7; 141.35; 268.19,
subdivision 1; 299A.45, subdivision 4; proposing coding for new law in
Minnesota Statutes, chapter 136A; repealing Minnesota Rules, parts 4830.0140;
4830.0150; 4830.0160; 4830.0170; 4830.0180; 4830.0190; 4830.0195.

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

ARTICLE 1

POLICY AND TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2012, section 13.47, subdivision 3, is amended to read:

Subd. 3.

Dissemination.

Employment and training data may be disseminated by
employment and training service providers:

(a) to other employment and training service providers to coordinate the employment
and training services for the data subject or to determine eligibility or suitability for
services from other programs;

(b) to local and state welfare agencies for monitoring the eligibility of the participant
for assistance programs, or for any employment or training program administered by
those agencies; deleted text begin and
deleted text end

(c) to the commissioner of employment and economic development deleted text begin . deleted text end new text begin ; and
new text end

new text begin (d) by the commissioner of employment and economic development to the Office of
Higher Education for purposes of supporting program improvement, system evaluation,
and research initiatives including the Statewide Longitudinal Education Data System.
new text end

Sec. 2.

Minnesota Statutes 2012, section 136A.031, subdivision 2, is amended to read:

Subd. 2.

Higher Education Advisory Council.

A Higher Education Advisory
Council (HEAC) is established. The HEAC is composed of the new text begin director of the Office of
Higher Education; the new text end president of the University of Minnesota or designee; the chancellor
of the Minnesota State Colleges and Universities or designee; the commissioner of
education; new text begin the commissioner of employment and economic development; new text end the president of
the Private College Council new text begin or a nonprofit private college new text end ; new text begin and new text end a representative from the
Minnesota Career College Association deleted text begin ; and a member appointed by the governor deleted text end . new text begin The
chair shall be designated by the governor. new text end The HEAC shall bring to the attention of the
deleted text begin Minnesota Office of Higher Education deleted text end new text begin governor and the legislature new text end any matters that the
HEAC deems new text begin important and new text end necessary new text begin to the postsecondary needs of Minnesotans related
to democracy and participation in the workforce new text end .

Sec. 3.

Minnesota Statutes 2012, section 136A.101, subdivision 8, is amended to read:

Subd. 8.

Resident student.

"Resident student" means a student who meets one of
the following conditions:

(1) a student who has resided in Minnesota deleted text begin for purposes other than postsecondary
education deleted text end for at least 12 new text begin consecutive new text end months without being enrolled at a postsecondary
educational institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;

(3) a student who graduated from a Minnesota high school deleted text begin , if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high
school and the student is physically attending a Minnesota postsecondary educational
institution; deleted text end new text begin or earned a high school equivalency certificate while residing in Minnesota,
if the student currently resides in Minnesota or is physically attending a postsecondary
education institution located in Minnesota; or
new text end

(4) deleted text begin a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota; deleted text end new text begin a student who does not meet any of the
conditions in clauses (1) to (3) but, as determined by the Office of Higher Education,
relocated to Minnesota due to unusual circumstances, including but not limited to natural
disasters, refugee status, or active military service.
new text end

deleted text begin (5) a member, spouse, or dependent of a member of the armed forces of the United
States stationed in Minnesota on active federal military service as defined in section
190.05, subdivision 5c;
deleted text end

deleted text begin (6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran
is a Minnesota resident;
deleted text end

deleted text begin (7) a person or spouse of a person who relocated to Minnesota from an area that
is declared a presidential disaster area within the preceding 12 months if the disaster
interrupted the person's postsecondary education; or
deleted text end

deleted text begin (8) a person defined as a refugee under United States Code, title 8, section
1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
continued to reside in Minnesota.
deleted text end

Sec. 4.

Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:

Subd. 9.

Independent student.

"Independent student" has the meaning given deleted text begin it in
deleted text end new text begin under Title IV of new text end the Higher Education Act of 1965, deleted text begin United States Code, title 20, section
1070a-6 deleted text end new text begin as amended new text end , and applicable regulations.

Sec. 5.

Minnesota Statutes 2012, 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;

(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) has not earned a baccalaureate degree and has been enrolled full time less than
eight semesters or the equivalent;

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

(6) is enrolled at least half time in an eligible institution; and

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

(b) A student who withdraws from enrollment for active military service new text begin or for a
major illness, while under the care of a medical professional, that substantially limits the
student's ability to complete the term new text end is entitled to an additional semester or the equivalent
of grant eligibility and will be considered to be in continuing enrollment status upon return.

Sec. 6.

Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of sections 136A.231 to 136A.233, the words
defined in this subdivision have the meanings ascribed to them.

(a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
institution.

(b) "Minnesota resident" means a student who meets the conditions in section
136A.101, subdivision 8.

(c) "Financial need" means the need for financial assistance in order to attend a
postsecondary institution as determined by a postsecondary institution according to
guidelines established by the Minnesota Office of Higher Education.

(d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
nonsectarian agency or state institution located in the state of Minnesota, a disabled person
or a person over 65 who employs a student to provide personal services in or about the
person's residence, or a private, for-profit employer employing a student as an intern in a
position directly related to the student's field of study that will enhance the student's
knowledge and skills in that field.

(e) "Eligible postsecondary institution" means any postsecondary institution eligible
for participation in the Minnesota state grant program as specified in section 136A.101,
subdivision 4.

(f) "Independent student" has the meaning given deleted text begin it in deleted text end new text begin under Title IV of new text end the Higher
Education Act of 1965, deleted text begin United States Code, title 20, section 1070a-6 deleted text end new text begin as amended new text end , and
applicable regulations.

(g) "Half time" for undergraduates has the meaning given in section 136A.101,
subdivision 7b, and for graduate students is defined by the institution.

Sec. 7.

Minnesota Statutes 2012, section 136A.646, is amended to read:

136A.646 ADDITIONAL SECURITY.

(a) In the event any registered institution is notified by the United States Department
of Education that it has fallen below minimum financial standards and that its continued
participation in Title IV will be conditioned upon its 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), the
institution shall provide a surety bond conditioned upon the faithful performance of all
contracts and agreements with students in a sum equal to the "letter of credit" required by
the United States Department of Education in the Letter of Credit Alternative, but in no
event shall such bond be less than $10,000 nor more than $250,000.

(b) In lieu of a bond, the applicant may deposit with the commissioner of
management and budget:

(1) a sum equal to the amount of the required surety bond in cash; or

(2) securities, as may be legally purchased by savings banks or for trust funds, in an
aggregate market value equal to the amount of the required surety bond.

new text begin (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
the office and shall be relieved of liability for any breach of condition occurring after
the effective date of cancellation.
new text end

Sec. 8.

Minnesota Statutes 2012, section 136A.65, subdivision 4, is amended to read:

Subd. 4.

Criteria for approval.

(a) A school applying to be registered and to have
its degree or degrees and name approved must substantially meet the following criteria:

(1) the school has an organizational framework with administrative and teaching
personnel to provide the educational programs offered; new text begin and the school has made available
to the school's staff, including the admissions staff, financial aid staff, administrative or
office staff, and faculty, training appropriate to their employment positions that includes
recommendations as to limits and types of information or advice on financial aid and
transfer of credits that each staff or faculty member is allowed to provide to students
or prospective students;
new text end

(2) the school has financial resources sufficient to meet the school's financial
obligations, including refunding tuition and other charges consistent with its stated policy
if the institution is dissolved, or if claims for refunds are made, to provide service to the
students as promised, and to provide educational programs leading to degrees as offered;

(3) the school operates in conformity with generally accepted budgeting and
accounting principles;

(4) the school provides an educational program leading to the degree it offers;

(5) the school provides appropriate and accessible library, laboratory, and other
physical facilities to support the educational program offered;

(6) the school has a policy on freedom or limitation of expression and inquiry for
faculty and students which is published or available on request;

(7) the school uses only publications and advertisements which are truthful and do
not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
school, its personnel, programs, services, or occupational opportunities for its graduates
for promotion and student recruitment;

(8) the school's compensated recruiting agents who are operating in Minnesota
identify themselves as agents of the school when talking to or corresponding with students
and prospective students; and

(9) the school provides information to students and prospective students concerning:

(i) comprehensive and accurate policies relating to student admission, evaluation,
suspension, and dismissal;

(ii) clear and accurate policies relating to granting credit for prior education, training,
and experience and for courses offered by the school;

(iii) current schedules of fees, charges for tuition, required supplies, student
activities, housing, and all other standard charges;

(iv) policies regarding refunds and adjustments for withdrawal or modification
of enrollment status; and

(v) procedures and standards used for selection of recipients and the terms of
payment and repayment for any financial aid program.

(b) An application for degree approval must also include:

(i) title of degree and formal recognition awarded;

(ii) location where such degree will be offered;

(iii) proposed implementation date of the degree;

(iv) admissions requirements for the degree;

(v) length of the degree;

(vi) projected enrollment for a period of five years;

(vii) the curriculum required for the degree, including course syllabi or outlines;

(viii) statement of academic and administrative mechanisms planned for monitoring
the quality of the proposed degree;

(ix) statement of satisfaction of professional licensure criteria, if applicable;

(x) documentation of the availability of clinical, internship, externship, or practicum
sites, if applicable; and

(xi) statement of how the degree fulfills the institution's mission and goals,
complements existing degrees, and contributes to the school's viability.

Sec. 9.

Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration appeal.

deleted text begin (a) If a school's degree or use of a
term in its name is disapproved by the office, the school may request a hearing under
chapter 14. The request must be in writing and made to the office within 30 days of the
date the school is notified of the disapproval.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The office may refuse to renew, revoke, or suspend registration, approval of
a school's degree, or use of a regulated term in its name by giving written notice and
reasons to the school. deleted text begin The school may request a hearing under chapter 14. If a hearing is
requested, no revocation or suspension shall take effect until after the hearing.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end Reasons for revocation or suspension of registration or approval may be
for one or more of the following reasons:

(1) violating the provisions of sections 136A.61 to 136A.71;

(2) providing false, misleading, or incomplete information to the office;

(3) presenting information about the school which is false, fraudulent, misleading,
deceptive, or inaccurate in a material respect to students or prospective students; or

(4) refusing to allow reasonable inspection or to supply reasonable information after
a written request by the office has been received.

new text begin (c) Any order refusing, revoking, or suspending a school's registration, approval of a
school's degree, or use of a regulated term in the school's name is appealable in accordance
with chapter 14. The request must be in writing and made to the office within 30 days of the
date the school is notified of the action of the office. If a school has been operating and its
registration has been revoked, suspended, or refused by the office, the order is not effective
until the final determination of the appeal, unless immediate effect is ordered by the court.
new text end

Sec. 10.

Minnesota Statutes 2012, section 136A.653, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Free educational courses. new text end

new text begin A school providing exclusively free training or
instructional programs or courses where no tuition, fees, or any other charges are required
for a student to participate is exempt from the provisions of sections 136A.61 to 136A.71.
new text end

Sec. 11.

Minnesota Statutes 2012, section 141.25, subdivision 7, is amended to read:

Subd. 7.

Minimum standards.

A license shall be issued if the office first determines:

(1) that the applicant has a sound financial condition with sufficient resources
available to:

(i) meet the school's financial obligations;

(ii) refund all tuition and other charges, within a reasonable period of time, in the
event of dissolution of the school or in the event of any justifiable claims for refund against
the school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment
and the necessary number of work stations to prepare adequately the students currently
enrolled, and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to
provide the educational programs contemplated;

(4) that the school has an organizational framework with administrative and
instructional personnel to provide the programs and services it intends to offer;

(5) that the premises and conditions under which the students work and study are
sanitary, healthful, and safe;

(6) that the quality and content of each occupational course or program of study
provides education and adequate preparation to enrolled students for entry level positions
in the occupation for which prepared;

(7) that the living quarters which are owned, maintained, recommended, or approved
by the applicant for students are sanitary and safe;

(8) that the contract or enrollment agreement used by the school complies with
the provisions in section 141.265;

(9) that contracts and agreements do not contain a wage assignment provision or a
confession of judgment clause; deleted text begin and
deleted text end

(10) that there has been no adjudication of fraud or misrepresentation in any
criminal, civil, or administrative proceeding in any jurisdiction against the school or its
owner, officers, agents, or sponsoring organization deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) that the applicant has made available to the applicant's staff, including the
applicant's admissions staff, financial aid staff, administrative or office staff, and faculty,
training appropriate to their employment positions that includes recommendations as to
limits and types of information or advice on financial aid and transfer of credits each staff
or faculty member is allowed to provide to students or prospective students.
new text end

Sec. 12.

Minnesota Statutes 2012, section 141.35, is amended to read:

141.35 EXEMPTIONS.

Sections 141.21 to 141.32 shall not apply to the following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections 136A.61 to 136A.71;

(3) schools of nursing accredited by the state Board of Nursing or an equivalent
public board of another state or foreign country;

(4) private schools complying with the requirements of section 120A.22, subdivision
4;

(5) courses taught to students in a valid apprenticeship program taught by or
required by a trade union;

(6) schools exclusively engaged in training physically or mentally disabled persons
for the state of Minnesota;

(7) schools licensed by boards authorized under Minnesota law to issue licenses
except schools required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in their names;

(8) schools and educational programs, or training programs, contracted for by
persons, firms, corporations, government agencies, or associations, for the training of their
own employees, for which no fee is charged the employee;

(9) schools engaged exclusively in the teaching of purely avocational, recreational,
or remedial subjects as determined by the office except schools required to obtain a private
career school license due to the use of "academy," "institute," "college," or "university" in
their names unless the school used "academy" or "institute" in its name prior to August
1, 2008;

(10) classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

(11) programs in the fine arts provided by organizations exempt from taxation
under section 290.05 and registered with the attorney general under chapter 309. For
the purposes of this clause, "fine arts" means activities resulting in artistic creation or
artistic performance of works of the imagination which are engaged in for the primary
purpose of creative expression rather than commercial sale or employment. In making
this determination the office may seek the advice and recommendation of the Minnesota
Board of the Arts;

(12) classes, courses, or programs intended to fulfill the continuing education
requirements for licensure or certification in a profession, that have been approved by a
legislatively or judicially established board or agency responsible for regulating the practice
of the profession, and that are offered exclusively to an individual practicing the profession;

(13) classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing and occupational
entrance examinations;

(14) classes, courses, or programs providing 16 or fewer clock hours of instruction
that are not part of the curriculum for an occupation or entry level employment except
schools required to obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in their names;

(15) classes, courses, or programs providing instruction in personal development,
modeling, or acting;

(16) training or instructional programs, in which one instructor teaches an individual
student, that are not part of the curriculum for an occupation or are not intended to prepare
a person for entry level employment; deleted text begin and
deleted text end

(17) schools with no physical presence in Minnesota, as determined by the office,
engaged exclusively in offering distance instruction that are located in and regulated by
other states or jurisdictions deleted text begin . deleted text end new text begin ; and
new text end

new text begin (18) schools providing exclusively free training or instructional programs or courses
where no tuition, fees, or any other charges are required for a student to participate.
new text end

Sec. 13.

Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:

Subdivision 1.

Use of data.

(a) Except as provided by this section, data gathered
from any person under the administration of the Minnesota Unemployment Insurance Law
are private data on individuals or nonpublic data not on individuals as defined in section
13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court
order or section 13.05. A subpoena is not considered a district court order. These data
may be disseminated to and used by the following agencies without the consent of the
subject of the data:

(1) state and federal agencies specifically authorized access to the data by state
or federal law;

(2) any agency of any other state or any federal agency charged with the
administration of an unemployment insurance program;

(3) any agency responsible for the maintenance of a system of public employment
offices for the purpose of assisting individuals in obtaining employment;

(4) the public authority responsible for child support in Minnesota or any other
state in accordance with section 256.978;

(5) human rights agencies within Minnesota that have enforcement powers;

(6) the Department of Revenue to the extent necessary for its duties under Minnesota
laws;

(7) public and private agencies responsible for administering publicly financed
assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(8) the Department of Labor and Industry and the Division of Insurance Fraud
Prevention in the Department of Commerce for uses consistent with the administration of
their duties under Minnesota law;

(9) local and state welfare agencies for monitoring the eligibility of the data subject
for assistance programs, or for any employment or training program administered by those
agencies, whether alone, in combination with another welfare agency, or in conjunction
with the department or to monitor and evaluate the statewide Minnesota family investment
program by providing data on recipients and former recipients of food stamps or food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

(10) local and state welfare agencies for the purpose of identifying employment,
wages, and other information to assist in the collection of an overpayment debt in an
assistance program;

(11) local, state, and federal law enforcement agencies for the purpose of ascertaining
the last known address and employment location of an individual who is the subject of
a criminal investigation;

(12) the United States Immigration and Customs Enforcement has access to data on
specific individuals and specific employers provided the specific individual or specific
employer is the subject of an investigation by that agency;

(13) the Department of Health for the purposes of epidemiologic investigations;

(14) the Department of Corrections for the purpose of preconfinement and
postconfinement employment tracking of committed offenders for the purpose of case
planning; deleted text begin and
deleted text end

(15) the state auditor to the extent necessary to conduct audits of job opportunity
building zones as required under section 469.3201 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (16) the Office of Higher Education for purposes of supporting program
improvement, system evaluation, and research initiatives including the Statewide
Longitudinal Education Data System.
new text end

(b) Data on individuals and employers that are collected, maintained, or used by
the department in an investigation under section 268.182 are confidential as to data
on individuals and protected nonpublic data not on individuals as defined in section
13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district
court order or to a party named in a criminal proceeding, administrative or judicial, for
preparation of a defense.

(c) Data gathered by the department in the administration of the Minnesota
unemployment insurance program must not be made the subject or the basis for any
suit in any civil proceedings, administrative or judicial, unless the action is initiated by
the department.

Sec. 14.

Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:

Subd. 4.

Renewal.

Each award must be given for one academic year and is
renewable for a maximum of eight semesters or the equivalent. A student who withdraws
from enrollment for active military service new text begin or for a major illness, while under the care
of a medical professional, that substantially limits the student's ability to complete the
term new text end is entitled to an additional semester or the equivalent of grant eligibility. An award
must not be given to a dependent child who is 23 years of age or older on the first day of
the academic year.

ARTICLE 2

TERMINATING INSTITUTIONS FROM FINANCIAL AID PROGRAMS

Section 1.

new text begin [136A.104] INSTITUTION TERMINATION.
new text end

new text begin (a) The office shall have the authority to terminate a postsecondary institution's
eligibility to participate in state student aid programs if the institution meets one of the
following criteria:
new text end

new text begin (1) violates a provision of Minnesota Statutes, Minnesota Rules, or administrative
policies governing student aid programs and fails to correct the violation and reimburse
the office for audit findings within the time frame specified in the audit report or other
notice furnished by the office;
new text end

new text begin (2) has a consistent pattern of noncompliance with Minnesota Statutes, Minnesota
Rules, or administrative policies governing student aid programs as documented by the
office or lacks administrative capability to successfully administer student financial aid
programs on campus based on factors including, but not limited to:
new text end

new text begin (i) adequacy of financial aid staffing levels, experience, training, and turnover of key
financial aid staff;
new text end

new text begin (ii) adequate checks and balances in its system of internal controls;
new text end

new text begin (iii) maintenance of records required for programs; or
new text end

new text begin (iv) the ability to participate in the electronic processes used for program
administration;
new text end

new text begin (3) refuses to allow inspection of or provide information relating to financial aid
records, after written request by the office;
new text end

new text begin (4) misappropriates student aid program funds;
new text end

new text begin (5) falsifies information or engages in misleading or deceptive practices involving
the administration of student financial aid programs;
new text end

new text begin (6) no longer meets institutional eligibility criteria in section 136A.103 or 136A.155,
or additional criteria for state grant participation in Minnesota Rules, part 4830.0300,
subparts 1 and 2; or
new text end

new text begin (7) is terminated from participating in federal financial aid programs by the United
States Department of Education, if such termination was based on violation of laws,
regulations, or participation agreements governing federal financial aid programs.
new text end

Sec. 2.

new text begin [136A.1041] TERMINATION PROCEDURE.
new text end

new text begin The office shall provide written notice of its intent to terminate an institution's
eligibility to participate in student financial aid programs if the institution meets any of
the criteria for termination in section 136A.104. The office shall send the institution
written notification of the termination which is effective 90 days from the date of the
written notification. The office shall also provide an institution an opportunity for a
hearing pursuant to chapter 14.
new text end

Sec. 3.

new text begin [136A.1042] REQUEST FOR HEARING.
new text end

new text begin An institution may request a hearing pursuant to chapter 14 regarding its termination
of eligibility to participate in a student aid program. The request must be in writing and
must be received by the director within 30 days of the date on the written notification of
termination sent by the office. Within ten days of receipt of the request for hearing, the
office shall contact the Office of Administrative Hearings to arrange a hearing date.
new text end

Sec. 4.

new text begin [136A.1043] RESTRICTION ON AWARDS DURING TERMINATION
PERIOD.
new text end

new text begin After the notice of termination and until such time as the termination becomes
effective, the office reserves the right to withhold further financial aid disbursements to the
institution. During this period, the institution may not make any new awards to students
but may use any remaining student aid program funds on campus to make disbursements
to any students awarded funds prior to the notice of termination.
new text end

Sec. 5.

new text begin [136A.1044] FINAL DECISION, ORDERS.
new text end

new text begin The director shall render a decision and order in writing following receipt of the
report issued by the administrative law judge after the hearing. The final decision of the
director shall take into consideration the hearing record and the report of the administrative
law judge. The order of the director is the final decision in the termination of the
institution's eligibility to participate in a student aid program administered by the office.
new text end

Sec. 6.

new text begin [136A.1045] REINSTATEMENT OF ELIGIBILITY.
new text end

new text begin An institution terminated from participating in student financial aid programs
may submit a request for reinstatement of eligibility. The institution must wait at least
12 consecutive months from the effective date of the termination to submit a request
for reinstatement. A request for reinstatement must be in writing and submitted to the
director. If the institution is initially denied reinstatement, the institution must wait at
least 90 days from the date of denial of reinstatement to resubmit a subsequent request
for reinstatement. If an institution's eligibility is reinstated after the start of the academic
term, eligible students shall receive payment retroactively to the beginning of the term
during which the institution was reinstated.
new text end

Sec. 7.

new text begin [136A.1046] REINSTATEMENT REQUIREMENTS.
new text end

new text begin An institution's reinstatement request must include:
new text end

new text begin (1) written documentation specifying changes the institution has made to
successfully address the reasons for termination, as outlined in the termination notice;
new text end

new text begin (2) permission for the office's staff to conduct a reinstatement audit and to evaluate
systems put in place to address the reasons for termination;
new text end

new text begin (3) evidence of full repayment to the office of student aid program funds the
institution improperly received, withheld, disbursed, or caused to be disbursed;
new text end

new text begin (4) new participation agreements with the office for all student aid programs in
which the institution wishes to participate; and
new text end

new text begin (5) if applicable, documentation of the institution's eligibility to participate in
federal financial aid programs.
new text end

Sec. 8.

new text begin [136A.1047] RESPONSE TO REINSTATEMENT REQUEST.
new text end

new text begin Within 60 days of receiving the institution's reinstatement request, the office shall
conduct a reinstatement audit and either:
new text end

new text begin (1) place the institution on probationary status for a period of one year; or
new text end

new text begin (2) deny the request based on the institution meeting one or more of the termination
criteria in section 136A.104.
new text end

Sec. 9.

new text begin [136A.1048] PROBATIONARY PERIOD.
new text end

new text begin During the probationary period, the office may audit the institution's records without
notice. If, while on probation, the institution violates a condition under section 136A.104,
as documented by the office's audit staff, the office must remove the institution from
probationary status and deny the request for reinstatement. If the institution fails to
successfully complete the probationary period, termination is final and effective within 30
days of written notice of the denial of the reinstatement request.
new text end

Sec. 10.

new text begin [136A.1049] REINSTATEMENT.
new text end

new text begin If an institution no longer violates a condition under section 136A.104 and
successfully completes the probationary period, the office must reinstate the institution's
eligibility to participate in student financial aid programs effective the last date of the
probationary period.
new text end

Sec. 11.

new text begin [136A.105] STUDENT AWARDS AFTER TERMINATION.
new text end

new text begin If an institution is terminated from participating in student financial aid programs
during a payment period, and a student at the institution was eligible for an award other
than a Student Educational Loan Fund loan before the effective date of the institution's
termination, the office must issue a payment for that payment period, as long as the student
will not receive a payment for the same payment period from another institution and the
student continues to meet the program's eligibility requirements.
new text end

Sec. 12. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 4830.0140; 4830.0150; 4830.0160; 4830.0170; 4830.0180;
4830.0190; and 4830.0195, new text end new text begin are repealed.
new text end