SF 1535

as introduced - 89th Legislature (2015 - 2016) Posted on 03/18/2015 02:46pm

A bill for an act
relating to higher education; making various technical and policy changes to
provisions related to higher education, including provisions related to grants,
loans, registration, and various higher education programs; prohibiting certain
institutions from limiting access to a student's transcript; providing procedures to
terminate a postsecondary institution's eligibility for state student aid programs;
modifying terms of SELF loan; modernizing, streamlining, and clarifying various
statutes; eliminating unnecessary or redundant laws and rules; deleting obsolete
language and unnecessary verbiage; amending Minnesota Statutes 2014, sections
13.32, subdivision 6; 16C.075; 136A.01, by adding a subdivision; 136A.031,
subdivision 4; 136A.0411; 136A.101, subdivision 8; 136A.103; 136A.125,
subdivisions 4, 4b; 136A.1313; 136A.15, subdivision 9; 136A.1701, subdivision
4; 136A.61; 136A.62, subdivision 3; 136A.63, subdivision 2; 136A.64,
subdivision 1; 136A.65, subdivisions 4, 7; 136A.657, subdivisions 1, 3, by adding
a subdivision; 136A.67; 136A.861, subdivision 1; 136A.87; 136G.05, subdivision
7; 141.21, subdivisions 5, 6a, 9; 141.25; 141.251, subdivision 2; 141.255; 141.26;
141.265; 141.271, subdivisions 1a, 1b, 3, 5, 7, 8, 9, 10, 12, 13, 14; 141.28;
141.29; 141.30; 141.32; 141.35; 197.75, subdivision 1; 261.23; proposing coding
for new law in Minnesota Statutes, chapter 136A; repealing Minnesota Statutes
2014, sections 135A.25, subdivisions 1, 2, 3, 4, 5; 136A.127, subdivisions 1, 2, 3,
4, 5, 6, 7, 9, 9b, 10, 10a, 11, 14; 158.01; 158.02; 158.03; 158.04; 158.05; 158.06;
158.07; 158.08; 158.09; 158.091; 158.10; 158.11; 158.12; Minnesota Rules,
parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; 4830.0160; 4830.0170;
4830.0180; 4830.0190; 4830.0195; 4830.7500, subparts 2a, 2b, 2c, 3a.

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

ARTICLE 1

HIGHER EDUCATION; TECHNICAL CHANGES

Section 1.

Minnesota Statutes 2014, section 13.32, subdivision 6, is amended to read:

Subd. 6.

deleted text begin Admissions forms; deleted text end Remedial instruction.

deleted text begin (a) Minnesota postsecondary
education institutions, for purposes of reporting and research, may collect on the
1986-1987 admissions form, and disseminate to any public educational agency or
institution the following data on individuals: student sex, ethnic background, age, and
disabilities. The data shall not be required of any individual and shall not be used for
purposes of determining the person's admission to an institution.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end A school district that receives information under subdivision 3, paragraph
(h) from a postsecondary institution about an identifiable student shall maintain the
data as educational data and use that data to conduct studies to improve instruction.
Public postsecondary systems as part of their participation in the Statewide Longitudinal
Education Data System shall provide data on the extent and content of the remedial
instruction received by individual students, and the results of assessment testing and the
academic performance of, students who graduated from a Minnesota school district within
two years before receiving the remedial instruction. The Office of Higher Education, in
collaboration with the Department of Education, shall evaluate the data and annually
report its findings to the education committees of the legislature.

deleted text begin (c) deleted text end new text begin (b) new text end This section supersedes any inconsistent provision of law.

Sec. 2.

Minnesota Statutes 2014, section 16C.075, is amended to read:

16C.075 E-VERIFY.

A contract for services valued in excess of $50,000 must require certification from
the vendor and any subcontractors that, as of the date services on behalf of the state of
Minnesota will be performed, the vendor and all subcontractors have implemented or are
in the process of implementing the federal E-Verify program for all newly hired employees
in the United States who will perform work on behalf of the state of Minnesota. This
section does not apply to contracts entered into by the new text begin :
new text end

new text begin (1) new text end State Board of Investment new text begin ; or
new text end

new text begin (2) the Office of Higher Education for contracts related to the office's loan and
loan refinancing programs new text end .

Sec. 3.

Minnesota Statutes 2014, section 136A.01, is amended by adding a subdivision
to read:

new text begin Subd. 3. new text end

new text begin Incentive programs. new text end

new text begin The commissioner is authorized to utilize incentive
gifts including, but not limited to, gift cards in order to promote to the public the various
programs administered by the office. The annual total expenditures for such incentive
programs shall not exceed $25,000.
new text end

Sec. 4.

Minnesota Statutes 2014, section 136A.031, subdivision 4, is amended to read:

Subd. 4.

Student representation.

The commissioner deleted text begin must place at least one
student from an affected educational system on any task force created by the office. The
commissioner must submit to the SAC the name of any student appointed to an advisory
group or task force. The student appointment is not approved if four SAC members vote
to disapprove of the appointment. If an appointment is disapproved, the commissioner
must submit another student appointment to the SAC in a timely manner deleted text end new text begin shall invite the
council to nominate a student or students to serve on task forces created by the office,
when appropriate new text end .

Sec. 5.

Minnesota Statutes 2014, section 136A.0411, is amended to read:

136A.0411 COLLECTING FEES.

The office may charge fees for seminars, conferences, workshops, services, and
materials. The office may collect fees for registration and licensure of private institutions
under sections 136A.61 to 136A.71 and chapter 141. The money is deleted text begin annually deleted text end appropriated
to the office.

Sec. 6.

Minnesota Statutes 2014, 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 for purposes other than postsecondary
education 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
institution located in Minnesota new text end ;

deleted text begin (4) 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

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) deleted text end new text begin (4) new text end a spouse or dependent of a veteran, as defined in section 197.447, if the
veteran is a Minnesota resident new text begin student new 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;
deleted text end

new text begin (5) a person, or the spouse or dependent of that person, who relocated to Minnesota
and currently resides in Minnesota because: (i) the person is stationed in Minnesota on
federal active service as defined in section 190.05, subdivision 5c; or (ii) the person is
from an area that is declared a presidential disaster area and the declaration occurred
within 12 months of the person's relocation to Minnesota;
new text end

deleted text begin (8) deleted text end new text begin (6) new text end 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; or

deleted text begin (9) deleted text end new text begin (7) new text end a student eligible for resident tuition under section 135A.043.

Sec. 7.

Minnesota Statutes 2014, section 136A.103, is amended to read:

136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

(a) A postsecondary institution is eligible for state student aid under chapter 136A
and sections 197.791 and 299A.45, if the institution is located in this state and:

(1) is operated by this state or the Board of Regents of the University of Minnesota; or

(2) is operated privately and, as determined by the office, meets the requirements of
paragraph (b).

(b) A private institution must:

(1) maintain academic standards substantially equivalent to those of comparable
institutions operated in this state;

(2) be licensed or registered as a postsecondary institution by the office; and

(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
the Higher Education Act of 1965, Public Law 89-329, as amended; or

(ii) if an institution was participating in state student aid programs as of June 30, 2010,
and the institution did not participate in the federal Pell Grant program by June 30, 2010,
the institution must require every student who enrolls to sign a disclosure form, provided by
the office, stating that the institution is not participating in the federal Pell Grant program.

(c) An institution that offers only graduate-level degrees or graduate-level nondegree
programs deleted text begin , or that offers only degrees or programs that do not meet the required minimum
program length to participate in the federal Pell Grant program, deleted text end is an eligible institution if
the institution is licensed or registered as a postsecondary institution by the office.

(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
ownership as defined in section 136A.63, subdivision 2, must participate in the federal
Pell Grant program within four calendar years of the first ownership change to continue
eligibility.

(e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution.

Sec. 8.

Minnesota Statutes 2014, section 136A.15, subdivision 9, is amended to read:

Subd. 9.

Minnesota resident.

"Minnesota resident" means a student who meets one
of the deleted text begin following deleted text end conditions deleted text begin : deleted text end new text begin in section 136A.101, subdivision 8, clauses 1 to 3.
new text end

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

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

deleted text begin (3) a student who graduated from a Minnesota high school, 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; or
deleted text end

deleted text begin (4) 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

Sec. 9.

Minnesota Statutes 2014, section 136A.61, is amended to read:

136A.61 POLICY.

The legislature has found and hereby declares that the availability of legitimate
courses and programs leading to academic degrees offered by responsible private
deleted text begin not-for-profit deleted text end new text begin nonprofit new text end and for-profit institutions of postsecondary education and the
existence of legitimate private colleges and universities are in the best interests of the
people of this state. The legislature has found and declares that the state can provide
assistance and protection for persons choosing private institutions and programs, by
establishing policies and procedures to assure the authenticity and legitimacy of private
postsecondary education institutions and programs. The legislature has also found and
declares that this same policy applies to any private and public postsecondary educational
institution located in another state or country which offers or makes available to a
Minnesota resident any course, program or educational activity which does not require
the leaving of the state for its completion.

Sec. 10.

Minnesota Statutes 2014, section 136A.62, subdivision 3, is amended to read:

Subd. 3.

School.

"School" means:

(1) deleted text begin any partnership, company, firm, society, trust, association, corporation, or any
combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary
education institution; (ii) is, owns, or operates a private, for-profit postsecondary education
institution; or (iii) deleted text end new text begin a person that new text end provides a postsecondary instructional program or course
leading to a degree whether or not for profit;

(2) any public or private postsecondary educational institution located in another
state or country deleted text begin which deleted text end new text begin that new text end offers or makes available to a Minnesota resident any course,
program or educational activity deleted text begin which deleted text end new text begin that new text end does not require the deleted text begin leaving of the deleted text end new text begin resident to
leave this new text end state for its completion; or

(3) deleted text begin any individual, entity, deleted text end new text begin a person new text end or postsecondary institution located in another
state that contracts with any school located within deleted text begin the deleted text end new text begin this new text end state deleted text begin of Minnesota deleted text end for the
purpose of providing educational programs, training programs, or awarding postsecondary
credits or continuing education credits to Minnesota residents that may be applied to
a degree program.

Sec. 11.

Minnesota Statutes 2014, 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; or a change in the deleted text begin not-for-profit deleted text end new text begin nonprofit new text end or for-profit status of a school.

Sec. 12.

Minnesota Statutes 2014, section 136A.65, subdivision 7, is amended to read:

Subd. 7.

Conditional approval.

The office may grant conditional approval for a
degree or use of a term in its name for a period of less than one year if doing so would be
in the best interests of currently enrolled students or prospective students. New schools
may be granted conditional approval for degrees or names annually for a period not to
exceed five years to allow them the opportunity to apply for and receive accreditation as
required in subdivision 1a. new text begin A new school granted conditional approval may be allowed
to continue as a registered institution in order to complete an accreditation process upon
terms and conditions the office determines.
new text end

Sec. 13.

Minnesota Statutes 2014, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Any school or any department or branch of a school (a)
which is substantially owned, operated or supported by a bona fide church or religious
organization; (b) whose programs are primarily designed for, aimed at and attended by
persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
church or religious organization; and (c) whose programs are primarily intended to prepare
its students to become ministers of, to enter into some other vocation closely related to, or
to conduct their lives in consonance with, the particular faith of that church or religious
organization, is exempt from the provisions of sections 136A.61 to deleted text begin 136A.71 deleted text end new text begin 136A.834 new text end .

Sec. 14.

Minnesota Statutes 2014, section 136A.657, subdivision 3, is amended to read:

Subd. 3.

Scope.

Nothing in sections 136A.61 to deleted text begin 136A.71 deleted text end new text begin 136A.834 new text end , or the rules
adopted pursuant thereto, shall be interpreted as permitting the office to determine the
truth or falsity of any particular set of religious beliefs.

Sec. 15.

Minnesota Statutes 2014, section 136A.657, is amended by adding a
subdivision to read:

new text begin Subd. 5. new text end

new text begin Religious exemption; requirements. new text end

new text begin An academic degree, including
associate of arts, associate of science, associate of applied science, bachelor of arts,
bachelor of science, master of arts, master of science, doctor of education, or doctor of
philosophy, does not qualify for a religious exemption, unless a school was granted a
religious exemption for the degree before August 1, 2014.
new text end

Sec. 16.

Minnesota Statutes 2014, section 136A.67, is amended to read:

136A.67 REGISTRATION REPRESENTATIONS.

No school and none of its officials or employees shall advertise or represent in any
manner that such school is approved or accredited by the office or the state of Minnesota,
except a school which is duly registered with the office, or any of its officials or
employees, may represent in advertising and shall disclose in catalogues, applications, and
enrollment materials that the school is registered with the office by prominently displaying
the following statement: "(Name of school) is registered deleted text begin as a private institution deleted text end with the
office pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of the
institution. Credits earned at the institution may not transfer to all other institutions." new text begin In
addition, all registered schools shall publish in the school catalog or student handbook the
name, street address, telephone number, and Web site address of the office.
new text end

Sec. 17.

Minnesota Statutes 2014, section 136G.05, subdivision 7, is amended to read:

Subd. 7.

Marketing.

The commissioner shall make parents and other interested
individuals aware of the availability and advantages of the program as a way to save for
higher education costs. deleted text begin The cost of these promotional efforts may not be funded with fees
imposed on participants.
deleted text end

Sec. 18.

Minnesota Statutes 2014, section 141.21, subdivision 5, is amended to read:

Subd. 5.

new text begin Private career new text end school.

" new text begin Private career new text end school" means deleted text begin any deleted text end new text begin a new text end person deleted text begin , within
or outside the state, deleted text end who maintains, advertises, administers, solicits for, or conducts any
program at less than an associate degree level deleted text begin and deleted text end new text begin ; new text end is not registered as a private institution
under sections 136A.61 to 136A.71 new text begin ; new text end and is not specifically exempted by section 141.35
deleted text begin or 141.37 deleted text end . deleted text begin School also means any person, within or outside the state, who maintains,
advertises, administers, solicits for, or conducts any program at less than an associate
degree level, is not registered as a private institution pursuant to sections 136A.61 to
136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.
deleted text end

Sec. 19.

Minnesota Statutes 2014, section 141.21, subdivision 6a, is amended to read:

Subd. 6a.

Multiple location.

"Multiple location" means any site where classes or
administrative services are provided to students and deleted text begin which deleted text end new text begin that new text end has a street address that is
different than the street address found on the deleted text begin school's deleted text end private career deleted text begin school deleted text end new text begin school's new text end license.

Sec. 20.

Minnesota Statutes 2014, section 141.21, subdivision 9, is amended to read:

Subd. 9.

Distance education new text begin private career new text end school.

"Distance education new text begin private
career new text end school" means a school that establishes, keeps, or maintains a facility or location
where a program is offered through distance instruction.

Sec. 21.

Minnesota Statutes 2014, section 141.25, is amended to read:

141.25 LICENSURE.

Subdivision 1.

Required.

A new text begin private career new text end school must not maintain, advertise,
solicit for, administer, or conduct any program in Minnesota without first obtaining a
license from the office.

Subd. 2.

Contract unenforceable.

A contract entered into with a person for a
program by or on behalf of a person operating a new text begin private career new text end school to which a license
has not been issued under sections 141.21 to 141.35, is unenforceable in any action.

Subd. 2a.

Refunds.

If a contract is deemed unenforceable under subdivision 2, a new text begin
private career new text end school must refund tuition, fees, and other charges received from a student
or on behalf of a student within 30 days of receiving written notification and demand for
refund from the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end .

Subd. 3.

Application.

Application for a license shall be on forms prepared and
furnished by the office, and shall include the following and other information as the
office may require:

(1) the title or name of the new text begin private career new text end school, ownership and controlling officers,
members, managing employees, and director;

(2) the specific programs which will be offered and the specific purposes of the
instruction;

(3) the place or places where the instruction will be given;

(4) a listing of the equipment available for instruction in each program;

(5) the maximum enrollment to be accommodated with equipment available in
each specified program;

(6) the qualifications of instructors and supervisors in each specified program;

(7) deleted text begin a current balance sheet, income statement, and adequate supporting
documentation, prepared and certified by an independent public accountant or CPA deleted text end new text begin
financial data and information sufficient to enable the office to determine the financial
viability of the private career school, including balance sheets, income statements, audited
financial statements if available, compiled financial statements if available, or other
financial information as requested by the office new text end ;

(8) copies of all media advertising and promotional literature and brochures or
electronic display currently used or reasonably expected to be used by the new text begin private career new text end
school;

(9) copies of all Minnesota enrollment agreement forms and contract forms and all
enrollment agreement forms and contract forms used in Minnesota; and

(10) gross income earned in the preceding year from student tuition, fees, and other
required institutional charges, unless the new text begin private career new text end school files with the office a surety
bond equal to at least $250,000 as described in subdivision 5.

Subd. 4.

Certification.

Each application shall be signed and certified to under
oath by the proprietor if the applicant is a proprietorship, by the managing partner if the
applicant is a partnership, or by the authorized officers of the applicant if the applicant is a
corporation, association, company, firm, society or trust.

Subd. 5.

Bond.

(a) No license shall be issued to any new text begin private career new text end school which
maintains, conducts, solicits for, or advertises within the state of Minnesota any program,
unless the applicant files with the office a continuous corporate surety bond written
by a company authorized to do business in Minnesota conditioned upon the faithful
performance of all contracts and agreements with students made by the applicant.

(b)(1) The amount of the surety bond shall be ten percent of the preceding year's
gross income from student tuition, fees, and other required institutional charges, but in
no event less than $10,000 nor greater than $250,000, except that a new text begin private career new text end school
may deposit a greater amount at its own discretion. A new text begin private career new text end school in each annual
application for licensure must compute the amount of the surety bond and verify that the
amount of the surety bond complies with this subdivision, unless the new text begin private career new text end school
maintains a surety bond equal to at least $250,000. A new text begin private career new text end school that operates at
two or more locations may combine gross income from student tuition, fees, and other
required institutional charges for all locations for the purpose of determining the annual
surety bond requirement. The gross tuition and fees used to determine the amount of the
surety bond required for a new text begin private career new text end school having a license for the sole purpose of
recruiting students in Minnesota shall be only that paid to the new text begin private career new text end school by the
students recruited from Minnesota.

(2) A deleted text begin school deleted text end new text begin person new text end required to obtain a private career school license due to the use
of "academy," "institute," "college," or "university" in its name and which is also licensed
by another state agency or board shall be required to provide a school bond of $10,000.

(c) The bond shall run to the state of Minnesota and to any person who may have a
cause of action against the applicant arising at any time after the bond is filed and before
it is canceled for breach of any contract or agreement made by the applicant with any
student. The aggregate liability of the surety for all breaches of the conditions of the
bond shall not exceed the principal sum deposited by the new text begin private career new text end school under
paragraph (b). 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.

(d) In lieu of bond, the applicant may deposit with the commissioner of management
and budget a sum equal to the amount of the required surety bond in cash, new text begin an irrevocable
letter of credit issued by a financial institution equal to the amount of the required surety
bond, new text end or 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.

(e) Failure of a new text begin private career new text end school to post and maintain the required surety bond
or deposit under paragraph (d) shall result in denial, suspension, or revocation of the
school's license.

Subd. 6.

Resident agent.

new text begin Private career new text end schools located outside the state of
Minnesota that offer, advertise, solicit for, or conduct any program within the state of
Minnesota shall first file with the secretary of state a sworn statement designating a resident
agent authorized to receive service of process. The statement shall designate the secretary
of state as resident agent for service of process in the absence of a designated agent. If
a new text begin private career new text end school fails to file the statement, the secretary of state is designated as
the resident agent authorized to receive service of process. The authorization shall be
irrevocable as to causes of action arising out of transactions occurring prior to the filing of
written notice of withdrawal from the state of Minnesota filed with the secretary of state.

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 new text begin private career new text end school's financial obligations;

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

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

(iv) maintain and support the new text begin private career new text end 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 new text begin private career new text end school has an organizational framework with administrative
and instructional personnel to provide the programs and services it intends to offer;

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

deleted text begin (6) deleted text end new text begin (5) new text end 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;

deleted text begin (7) deleted text end new text begin (6) new text end that the new text begin premises and conditions where the students work and study and the
student new text end living quarters which are owned, maintained, recommended, or approved by
the applicant deleted text begin for students deleted text end are sanitary new text begin , healthful, new text end and safe new text begin , as evidenced by certificate
of occupancy issued by the municipality or county where the private career school
is physically situated, a fire inspection by the local or state fire marshal, or another
verification deemed acceptable by the office new text end ;

deleted text begin (8) deleted text end new text begin (7) new text end that the contract or enrollment agreement used by the new text begin private career new text end school
complies with the provisions in section 141.265;

deleted text begin (9) deleted text end new text begin (8) new text end that contracts and agreements do not contain a wage assignment provision
or a confession of judgment clause; and

deleted text begin (10) deleted text end new text begin (9) new text end that there has been no adjudication of fraud or misrepresentation in any
criminal, civil, or administrative proceeding in any jurisdiction against the new text begin private career
new text end school or its owner, officers, agents, or sponsoring organization.

Subd. 8.

Fees and terms of license.

An application for an initial license under
sections 141.21 to 141.35 shall be accompanied by a nonrefundable application fee as
provided in section 141.255 that is sufficient to recover, but not exceed, the administrative
costs of the office.

All licenses shall expire one year from the date issued by the office, except as
provided in section 141.251.

Subd. 9.

Catalog, brochure, or electronic display.

Before a license is issued to
a new text begin private career new text end school, the new text begin private career new text end school shall furnish to the office a catalog,
brochure, or electronic display including:

(1) identifying data, such as volume number and date of publication;

(2) name and address of the new text begin private career new text end school and its governing body and officials;

(3) a calendar of the new text begin private career new text end school showing legal holidays, beginning and
ending dates of each course quarter, term, or semester, and other important dates;

(4) the new text begin private career new text end school policy and regulations on enrollment including dates
and specific entrance requirements for each program;

(5) the new text begin private career new text end school policy and regulations about leave, absences, class cuts,
make-up work, tardiness, and interruptions for unsatisfactory attendance;

(6) the new text begin private career new text end school policy and regulations about standards of progress
for the student including the grading system of the new text begin private career new text end school, the minimum
grades considered satisfactory, conditions for interruption for unsatisfactory grades or
progress, a description of any probationary period allowed by the new text begin private career new text end school,
and conditions of reentrance for those dismissed for unsatisfactory progress;

(7) the new text begin private career new text end school policy and regulations about student conduct and
conditions for dismissal for unsatisfactory conduct;

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
activities, laboratory fees, service charges, rentals, deposits, and all other charges;

(9) the new text begin private career new text end school policy and regulations, including an explanation of
section 141.271, about refunding tuition, fees, and other charges if the student does not
enter the program, withdraws from the program, or the program is discontinued;

(10) a description of the available facilities and equipment;

(11) a course outline syllabus for each course offered showing course objectives,
subjects or units in the course, type of work or skill to be learned, and approximate time,
hours, or credits to be spent on each subject or unit;

(12) the new text begin private career new text end school policy and regulations about granting credit for
previous education and preparation;

(13) a notice to students relating to the transferability of any credits earned at the new text begin
private career new text end school to other institutions;

(14) a procedure for investigating and resolving student complaints; and

(15) the name and address of the deleted text begin Minnesota deleted text end office deleted text begin of Higher Education deleted text end .

A new text begin private career new text end school that is exclusively a distance education school is exempt
from clauses (3) and (5).

Subd. 10.

Placement records.

(a) Before a license is reissued to a new text begin private career new text end
school that offers, advertises or implies a placement service, the new text begin private career new text end school shall
file with the office for the past year and thereafter at reasonable intervals determined by
the office, a certified copy of the new text begin private career new text end school's placement record, containing a list
of graduates, a description of their jobs, names of their employers, and other information
as the office may prescribe.

(b) Each new text begin private career new text end school that offers a placement service shall furnish to each
prospective student, upon request, prior to enrollment, written information concerning
the percentage of the previous year's graduates who were placed in the occupation for
which prepared or in related employment.

Subd. 12.

Permanent records.

A new text begin private career new text end school licensed under this chapter
and located in Minnesota shall maintain a permanent record for each student for 50 years
from the last date of the student's attendance. A new text begin private career new text end 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. To preserve permanent records, a new text begin private career new text end
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 new text begin private career new text end school ceases to exist; and

(4) a continuous surety bond must be filed with the office in an amount not to exceed
$20,000 if the new text begin private career new text end school has no binding agreement approved by the office, for
preserving student records. The bond shall run to the state of Minnesota.

Subd. 13.

new text begin Private career new text end schools licensed by another state agency or board.

A
new text begin private career new text end school required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in its name or licensed for the purpose of
participating in state financial aid under chapter 136A, and which is also licensed by another
state agency or board shall be required to satisfy only the requirements of subdivisions 3,
clauses (1), (2), (3), (5), (7), and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10);
8; 9, clause (13); and 12. new text begin A distance education school located in another state, or a school
licensed to recruit Minnesota residents for attendance at a school outside of this state, or a
school licensed by another state agency as its primary licensing body, may continue to use
the school's name as permitted by its home state or its primary licensing body.
new text end

Sec. 22.

Minnesota Statutes 2014, section 141.251, subdivision 2, is amended to read:

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 new text begin private career new text end school. A new text begin private career new text end 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 new text begin private career new text end 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 new text begin private career new text end 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. new text begin Private career new text end 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
141.25, subdivision 3, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700,
subpart 6; and 4880.2100, subpart 4.

Sec. 23.

Minnesota Statutes 2014, section 141.255, is amended to read:

141.255 FEES.

Subdivision 1.

Initial licensure fee.

The office processing fee for an initial licensure
application is:

(1) $2,500 for a new text begin private career new text end school that will offer no more than one program
during its first year of operation;

(2) $750 for a new text begin private career new text end school licensed exclusively due to the use of the term
"college," "university," "academy," or "institute" in its name, or licensed exclusively in
order to participate in state grant or SELF loan financial aid programs; and

(3) $2,500, plus $500 for each additional program offered by the new text begin private career new text end
school, for a new text begin private career new text end school during its first year of operation.

Subd. 2.

Renewal licensure fee; late fee.

(a) The office processing fee for a
renewal licensure application is:

(1) for a new text begin private career new text end school that offers one program, the license renewal fee is
$1,150;

(2) for a new text begin private career new text end school that offers more than one program, the license renewal
fee is $1,150, plus $200 for each additional program with a maximum renewal licensing
fee of $2,000;

(3) for a new text begin private career new text end school licensed exclusively due to the use of the term "college,"
"university," "academy," or "institute" in its name, the license renewal fee is $750; and

(4) for a new text begin private career new text end school licensed by another state agency and also licensed
with the office exclusively in order to participate in state student aid programs, the license
renewal fee is $750.

(b) If a license renewal application is not received by the office by the close of
business at least 60 days before the expiration of the current license, a late fee of $100
per business day, not to exceed $3,000, shall be assessed.

Subd. 4.

Program addition fee.

The office processing fee for adding a program to
those that are currently offered by the new text begin private career new text end school is $500 per program.

Subd. 5.

Visit or consulting fee.

If the office determines that a fact-finding visit
or outside consultant is necessary to review or evaluate any new or revised program, the
office shall be reimbursed for the expenses incurred related to the review as follows:

(1) $400 for the team base fee or for a paper review conducted by a consultant if the
office determines that a fact-finding visit is not required;

(2) $300 for each day or part thereof on site per team member; and

(3) the actual cost of customary meals, lodging, and related travel expenses incurred
by team members.

Subd. 6.

Modification fee.

The fee for modification of any existing program is
$100 and is due if there is:

(1) an increase or decrease of 25 percent or more, from the original date of program
approval, in clock hours, credit hours, or calendar length of an existing program;

(2) a change in academic measurement from clock hours to credit hours or vice
versa; or

(3) an addition or alteration of courses that represent a 25 percent change or more in
the objectives, content, or methods of delivery.

Subd. 7.

Solicitor permit fee.

The solicitor permit fee is $350 and must be paid
annually.

Subd. 8.

Multiple location fee.

new text begin Private career new text end schools wishing to operate at
multiple locations must pay:

(1) $250 per location, for locations two to five; and

(2) an additional $100 for each location over five.

Subd. 9.

Student transcript fee.

The fee for a student transcript requested from a
closed new text begin private career new text end school whose records are held by the office is $15, with a maximum
of five transcripts per request.

Subd. 10.

Public office documents; copies.

The rate for copies of any public
office document shall be 50 cents per page.

Sec. 24.

Minnesota Statutes 2014, section 141.26, is amended to read:

141.26 PERMITS FOR SOLICITORS.

Subdivision 1.

Required.

A solicitor representing a new text begin private career new text end school must
obtain a solicitor's permit from the office before soliciting students to enroll in deleted text begin such deleted text end new text begin the
private career new text end school. Such permit shall expire one year following the date of issuance.
Application for renewal of permit shall be made annually.

Subd. 2.

Application for permit.

(a) The application for the permit shall state the
full name, address, previous employment, and such other information concerning the
solicitor applicant as the office may require.

(b) The application shall have attached to it a certified affidavit signed by a new text begin private
career new text end school official and the solicitor attesting to the fact that the applicant has been
furnished a copy, has read and has knowledge of the provisions of this chapter and
Minnesota Rules.

Subd. 3.

Refusal of permit.

No permit shall be issued to any solicitor unless such
solicitor files with the office a continuous corporate surety bond in the sum of $2,000
conditioned upon the faithful performance of all contracts and agreements with the students
made by the solicitor. Such bonds shall run to the state of Minnesota and to any person who
may have cause of action against the applicant arising at any time after the bond is filed and
before it is canceled for breach of any contract or agreement made by the solicitor with any
student. The aggregate liability of the surety for all breaches of the conditions of the bond
shall not exceed the principal sum of $2,000. The surety of any such 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. In lieu of bond, the
solicitor may deposit with the commissioner of management and budget the sum of $2,000.

Subd. 4.

Additional permits.

A solicitor representing more than one new text begin private career new text end
school must obtain a separate permit for each new text begin private career new text end school represented; however
when a solicitor represents new text begin private career new text end schools having a common ownership, only one
permit shall be required.

Subd. 5.

Fee.

The initial and renewal application for each permit shall be
accompanied by a nonrefundable fee under section 141.255.

Subd. 6.

Contract; validity.

Any contract entered into by a solicitor for a licensed new text begin
private career new text end school shall be unenforceable in any action brought thereon if the solicitor
does not hold a valid permit as required by this section.

Sec. 25.

Minnesota Statutes 2014, section 141.265, is amended to read:

141.265 INFORMATION TO STUDENTS.

Subdivision 1.

Catalog, brochure, or electronic display.

A new text begin private career new text end school
or its agent must provide the catalog, brochure, or electronic display required in section
141.25, subdivision 9, to a prospective student in a time or manner that gives the
prospective student at least five days to read the catalog, brochure, or electronic display
before signing a contract or enrollment agreement or before being accepted by a new text begin private
career new text end school that does not use a written contract or enrollment agreement.

Subd. 2.

Contract information.

A contract or enrollment agreement used by a new text begin
private career new text end school must include at least the following:

(1) the name and address of the new text begin private career new text end school, clearly stated;

(2) a clear and conspicuous disclosure that the agreement is a legally binding
instrument upon written acceptance of the student by the new text begin private career new text end school unless
canceled under section 141.271;

(3) the new text begin private career new text end school's cancellation and refund policy that shall be clearly and
conspicuously entitled "Buyer's Right to Cancel";

(4) a clear statement of total cost of the program including tuition and all other
charges;

(5) the name and description of the program, including the number of hours or
credits of classroom instruction, or distance instruction, that shall be included; and

(6) a clear and conspicuous explanation of the form and means of notice the student
should use in the event the student elects to cancel the contract or sale, the effective
date of cancellation, and the name and address of the seller to which the notice should
be sent or delivered.

The contract or enrollment agreement must not include a wage assignment provision or a
confession of judgment clause.

Subd. 3.

Contract copies.

Immediately upon signing of the enrollment agreement
or the contract by a prospective student, the new text begin private career new text end school or agent shall furnish to
the prospective student an exact duplicate copy of the enrollment agreement or contract.

Sec. 26.

Minnesota Statutes 2014, section 141.271, subdivision 1a, is amended to read:

Subd. 1a.

Notice; right to refund.

Every new text begin private career new text end school shall notify each
student, in writing, of acceptance or rejection. In the event that the student is rejected by
the new text begin private career new text end school, all tuition, fees and other charges shall be refunded.

Sec. 27.

Minnesota Statutes 2014, section 141.271, subdivision 1b, is amended to read:

Subd. 1b.

Short-term programs.

Licensed new text begin private career new text end schools conducting
programs not exceeding 40 hours in length shall not be required to make a full refund once
a program has commenced and shall be allowed to prorate any refund based on the actual
length of the program as stated in the new text begin private career new text end school catalog or advertisements and
the number of hours attended by the student.

Sec. 28.

Minnesota Statutes 2014, section 141.271, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Schools not using written contracts deleted text end new text begin Notice; amount new text end .

(a) deleted text begin Notwithstanding
anything to the contrary, deleted text end A new text begin private career new text end school deleted text begin that does not use a written contract or
enrollment agreement deleted text end shall refund all tuition, fees and other charges paid by a student
if the student gives written notice of cancellation within five business days after the day
on which the student is accepted by the new text begin private career new text end school regardless of whether the
program has started.

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

Sec. 29.

Minnesota Statutes 2014, section 141.271, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Distance education schools deleted text end new text begin Proration new text end .

When a student has been accepted
by a deleted text begin distance education deleted text end new text begin private career new text end school and gives written notice of cancellation after
the deleted text begin first lesson has been completed by the student and serviced by the school deleted text end new text begin program of
instruction has begun new text end , but before completion of 75 percent of the program, the amount
charged for tuition, fees and all other charges deleted text begin for the completed lessons deleted text end shall be prorated
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 deleted text begin $75 deleted text end new text begin $100 new text end . After
completion of 75 percent of the program, no refunds are required.

Sec. 30.

Minnesota Statutes 2014, section 141.271, subdivision 7, is amended to read:

Subd. 7.

Equipment and supplies.

The fair market retail price, if separately stated
in the catalog and contract or enrollment agreement, of equipment or supplies furnished to
the student, which the student fails to return in condition suitable for resale, and which
may reasonably be resold, within ten business days following cancellation may be retained
by the new text begin private career new text end school and may be deducted from the total cost for tuition, fees and
all other charges when computing refunds.

An overstatement of the fair market retail price of any equipment or supplies
furnished the student shall be considered inconsistent with this provision.

Sec. 31.

Minnesota Statutes 2014, section 141.271, subdivision 8, is amended to read:

Subd. 8.

Time of refund.

Each new text begin private career new text end school shall acknowledge in writing
any valid notice of cancellation within ten business days after the receipt of such notice
and within 30 business days shall refund to the student any amounts due and arrange for
termination of the student's obligation to pay any sum in excess of that due under the
cancellation and refund policy.

Sec. 32.

Minnesota Statutes 2014, section 141.271, subdivision 9, is amended to read:

Subd. 9.

Limitation.

A new text begin private career new text end school cannot make its refund policy
conditional upon compliance with the school's regulations or rules of conduct.

Sec. 33.

Minnesota Statutes 2014, section 141.271, subdivision 10, is amended to read:

Subd. 10.

Cancellation occurrence.

Written 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 new text begin private career new text end school. If
a student has not attended class for a period of 21 consecutive days without contacting
the new text begin private career new text end school to indicate an intent to continue in school or otherwise making
arrangements concerning the absence, the student is considered to have withdrawn from
school for all purposes as of the student's last documented date of attendance.

Sec. 34.

Minnesota Statutes 2014, section 141.271, subdivision 12, is amended to read:

Subd. 12.

Instrument not to be negotiated.

A new text begin private career new text end school shall not
negotiate any promissory instrument received as payment of tuition or other charge prior
to completion of 50 percent of the program, except that prior to that time, instruments may
be transferred by assignment to purchasers who shall be subject to all defenses available
against the new text begin private career new text end school named as payee.

Sec. 35.

Minnesota Statutes 2014, section 141.271, subdivision 13, is amended to read:

Subd. 13.

Cancellation of enrollment.

If a student's enrollment in a new text begin private career
new text end school is canceled for any reason, the new text begin private career new text end school shall notify any agency known
to the new text begin private career new text end school to be providing financial aid to the student of the cancellation
within 30 days.

Sec. 36.

Minnesota Statutes 2014, section 141.271, subdivision 14, is amended to read:

Subd. 14.

Closed new text begin private career new text end school.

In the event a new text begin private career new text end school closes
for any reason during a term and interrupts and terminates classes during that term, all
tuition for the term shall be refunded to the students or the appropriate state or federal
agency or private lender that provided any funding for the term and any outstanding
obligation of the student for the term is canceled.

Sec. 37.

Minnesota Statutes 2014, section 141.28, is amended to read:

141.28 PROHIBITIONS.

Subdivision 1.

Disclosure required; advertisement restricted.

new text begin Private career
new text end schools, agents of new text begin private career new text end schools, and solicitors may not advertise or represent
in writing or orally that the new text begin private career new text end school is approved or accredited by the state
of Minnesota, except that any new text begin private career new text end school, agent, or solicitor may represent in
advertisements and shall disclose in catalogues, applications, and enrollment materials
that the new text begin private career new text end school is duly licensed by the state by prominently displaying
the following statement:

"(Name of new text begin private career new text end school) is licensed as a private career school with the Minnesota
Office of Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32.
Licensure is not an endorsement of the institution. Credits earned at the institution may
not transfer to all other institutions."

Subd. 2.

Unlawful designation.

No new text begin private career new text end school organized after November
15, 1969, shall apply to itself either as a part of its name or in any other manner the
designation of "college" or "university." Operating new text begin private career new text end schools now using
such designation may continue use thereof.

Subd. 3.

False statements.

A new text begin private career new text end school, agent, or solicitor shall not
make, or cause to be made, any statement or representation, oral, written or visual, in
connection with the offering or publicizing of a program, if the new text begin private career new text end school,
agent, or solicitor knows or reasonably should have known the statement or representation
to be false, fraudulent, deceptive, substantially inaccurate, or misleading.

Subd. 4.

Acceptance of contracts.

No new text begin private career new text end school shall accept contracts,
enrollment agreements or enrollment applications from an agent or solicitor who does
not have a current permit.

Subd. 5.

Improbable program completion or employment.

A new text begin private career new text end
school, agent, or solicitor shall not enroll a prospective student when it is obvious that the
prospective student is unlikely to successfully complete a program or is unlikely to qualify
for employment in the vocation or field for which the preparation is designed unless this
fact is affirmatively disclosed to the prospective student. If a prospective student expresses
a desire to enroll after such disclosure, a disclaimer may be obtained by the new text begin private career new text end
school. The disclaimer shall be signed by the student and shall state substantially one or
both of the following: "I am fully aware that it is unlikely I will be able to successfully
complete the program" and "I am fully aware of the improbability or impossibility that I
will qualify for employment in the vocation or field for which the program was designed."

Subd. 6.

Financial aid payments.

(a) All new text begin private career new text end schools must collect,
assess, and distribute funds received from loans or other financial aid as provided in
this subdivision.

(b) Student loans or other financial aid funds received from federal, state, or local
governments or administered in accordance with federal student financial assistance
programs under title IV of the Higher Education Act of 1965, as amended, United States
Code, title 20, chapter 28, must be collected and applied as provided by applicable federal,
state, or local law or regulation.

(c) Student loans or other financial aid assistance received from a bank, finance or
credit card company, or other private lender must be collected or disbursed as provided
in paragraphs (d) and (e).

(d) Loans or other financial aid payments for amounts greater than $3,000 must
be disbursed:

(1) in two equal disbursements, if the term length is more than four months. The
loan or payment amounts may be disbursed no earlier than the first day the student attends
class with the remainder to be disbursed halfway through the term; or

(2) in three equal disbursements, if the term length is more than six months. The
loan or payment amounts may be disbursed no earlier than the first day the student attends
class, one-third of the way through the term, and two-thirds of the way through the term.

(e) Loans or other financial aid payments for amounts less than $3,000 may be
disbursed as a single disbursement on the first day a student attends class, regardless
of term length.

(f) No new text begin private career new text end school may enter into a contract or agreement with, or receive
any money from, a bank, finance or credit card company, or other private lender, unless
the private lender follows the requirements for disbursements provided in paragraphs
(d) and (e).

Sec. 38.

Minnesota Statutes 2014, section 141.29, is amended to read:

141.29 REVOCATION OF LICENSE OR PERMIT.

Subdivision 1.

Grounds.

The office may, after notice and upon providing an
opportunity for a hearing, under chapter 14 if requested by the parties adversely affected,
refuse to issue, refuse to renew, revoke, or suspend a license or solicitor's permit for any
of the following grounds:

(1) violation of any provisions of sections 141.21 to 141.35 or any rule adopted
by the office;

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

(3) presenting to prospective students information relating to the new text begin private career new text end
school that is false, fraudulent, deceptive, substantially inaccurate, or misleading;

(4) refusal to allow reasonable inspection or supply reasonable information after
written request by the office;

(5) the existence of any circumstance that would be grounds for the refusal of an
initial or renewal license under section 141.25.

Subd. 2.

Appeal.

Any order refusing, revoking, or suspending a new text begin private career new text end
school's license or a solicitor's permit is appealable in accordance with chapter 14. Where
a new text begin private career new text end school has been operating and its license 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.

Subd. 3.

Powers and duties.

The office shall have (in addition to the powers and
duties now vested therein by law) the following powers and duties:

(a) To negotiate and enter into interstate reciprocity agreements with similar agencies
in other states, if in the judgment of the office such agreements are or will be helpful in
effectuating the purposes of Laws 1973, chapter 714;

(b) To grant conditional new text begin private career new text end school license for periods of less than one
year if in the judgment of the office correctable deficiencies exist at the time of application
and when refusal to issue new text begin private career new text end school license would adversely affect currently
enrolled students;

(c) The office may upon its own motion, and shall upon the verified complaint
in writing of any person setting forth fact which, if proved, would constitute grounds
for refusal or revocation under Laws 1973, chapter 714, investigate the actions of any
applicant or any person or persons holding or claiming to hold a license or permit.
However, before proceeding to a hearing on the question of whether a license or permit
shall be refused, revoked or suspended for any cause enumerated in subdivision 1, the
office shall grant a reasonable time to the holder of or applicant for a license or permit to
correct the situation. If within such time the situation is corrected and the new text begin private career new text end
school is in compliance with the provisions of this chapter, no further action leading to
refusal, revocation, or suspension shall be taken.

Sec. 39.

Minnesota Statutes 2014, section 141.30, is amended to read:

141.30 INSPECTION.

(a) The office or a delegate may inspect the instructional books and records,
classrooms, dormitories, tools, equipment and classes of any new text begin private career new text end school or
applicant for license at any reasonable time. The office may require the submission of a
certified public audit, or if there is no such audit available the office or a delegate may
inspect the financial books and records of the new text begin private career new text end school. In no event shall such
financial information be used by the office to regulate or set the tuition or fees charged by
the new text begin private career new text end school.

(b) Data obtained from an inspection of the financial records of a new text begin private career new text end
school or submitted to the office as part of a license application or renewal are nonpublic
data as defined in section 13.02, subdivision 9. Data obtained from inspections may be
disclosed to other members of the office, to law enforcement officials, or in connection
with a legal or administrative proceeding commenced to enforce a requirement of law.

Sec. 40.

Minnesota Statutes 2014, section 141.32, is amended to read:

141.32 PENALTY.

The commissioner may assess fines for violations of deleted text begin a provision of this chapter deleted text end new text begin
sections 141.21 to 141.37 new text end . Each day's failure to comply with deleted text begin this chapter deleted text end new text begin sections 141.21
to 141.37 new text end shall be a separate violation and fines shall not exceed $500 per day per
violation. Amounts received under this section must be deposited in the special revenue
fund and are appropriated to the office deleted text begin of Higher Education deleted text end for the purposes of deleted text begin this
chapter deleted text end new text begin sections 141.21 to 141.37 new text end .

Sec. 41.

Minnesota Statutes 2014, 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) new text begin private career new text end 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) new text begin private career new text end schools exclusively engaged in training physically or mentally
disabled persons for the state of Minnesota;

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

(8) new text begin private career new text end 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) new text begin private career new text end schools engaged exclusively in the teaching of purely avocational,
recreational, or remedial subjects as determined by the office except new text begin private career new text end 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 new text begin
private career new text end 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;

(17) new text begin private career new text end 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; and

(18) new text begin private career new text end schools providing exclusively training, instructional programs,
or courses where tuition, fees, and any other charges for a student to participate do not
exceed $100.

Sec. 42.

Minnesota Statutes 2014, section 197.75, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Commissioner" means the commissioner of veterans affairs.

(c) "Deceased veteran" means a veteran who has died as a result of the person's
military service, as determined by the United States Veterans Administration, and who
was a resident of this state: (1) within six months of entering the United States armed
forces, or (2) for the six months preceding the veteran's date of death.

(d) "Eligible child" means a person who:

(1) is the natural or adopted child or stepchild of a deceased veteran; and

(2) is a student making satisfactory academic progress at an eligible institution
of higher education.

(e) "Eligible institution" means a postsecondary educational institution located in
this state that either deleted text begin (1) deleted text end is operated by this state new text begin or the Board of Regents of the University
of Minnesota new text end , or deleted text begin (2) is operated publicly or privately and, as determined by the office,
maintains academic standards substantially equivalent to those of comparable institutions
operated in this state deleted text end new text begin is licensed or registered with the Office of Higher Education new text end .

(f) "Eligible spouse" means the surviving spouse of a deceased veteran.

(g) "Eligible veteran" means a veteran who:

(1) is a student making satisfactory academic progress at an eligible institution
of higher education;

(2) had Minnesota as the person's state of residence at the time of the person's
enlistment or any reenlistment into the United States armed forces, as shown by the
person's federal form DD-214 or other official documentation to the satisfaction of the
commissioner;

(3) except for benefits under this section, has no remaining military or veteran-related
educational assistance benefits for which the person may have been entitled; and

(4) while using the educational assistance authorized in this section, remains a
resident student as defined in section 136A.101, subdivision 8.

(h) "Satisfactory academic progress" has the meaning given in section 136A.101,
subdivision 10.

(i) "Student" has the meaning given in section 136A.101, subdivision 7.

(j) "Veteran" has the meaning given in section 197.447.

Sec. 43.

Minnesota Statutes 2014, section 261.23, is amended to read:

261.23 COSTS OF HOSPITALIZATION.

The costs of hospitalization of such indigent persons exclusive of medical and
surgical care and treatment shall not exceed in amount the full rates fixed and charged
by the Minnesota general hospital deleted text begin under the provisions of sections 158.01 to 158.11 deleted text end for
the hospitalization of such indigent patients. For indigent persons hospitalized pursuant
to sections 261.21 to 261.232, the state shall pay 90 percent of the cost allowable under
the general assistance medical care program and ten percent of the allowable cost of
hospitalization shall be paid by the county of the residence of the indigent persons at
the times provided for in the contract; and in case of an injury or emergency requiring
immediate surgical or medical treatment, for a period not to exceed 72 hours, 90 percent
of the cost allowable under the general assistance medical care program shall be paid by
the state and ten percent of the cost shall be paid by the county from which the patient, if
indigent, is certified. State payments for services rendered pursuant to this section shall
be ratably reduced to the same extent and during the same time period as payments are
reduced under section 256D.03, subdivision 4, paragraph (c). If the county of residence
of the patient is not the county in which the patient has legal settlement for the purposes
of poor relief, then the county of residence may seek reimbursement from the county
in which the patient has settlement for the purposes of poor relief for all costs it has
necessarily incurred and paid in connection with the hospitalization of said patient.

Sec. 44. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
Column A to the references listed in Column B. The revisor shall also make necessary
cross-reference, grammatical, or terminology changes in Minnesota Statutes and
Minnesota Rules consistent with the renumbering, including changing the word "school"
to "private career school" wherever the word appears in sections 141.20 to 141.37.
new text end

	new text begin Column A new text end	new text begin Column B new text end
	new text begin 141.20 new text end	new text begin 136A.82 new text end
	new text begin 141.21 new text end	new text begin 136A.821 new text end
	new text begin 141.25 new text end	new text begin 136A.822 new text end
	new text begin 141.251 new text end	new text begin 136A.823 new text end
	new text begin 141.255 new text end	new text begin 136A.824 new text end
	new text begin 141.26 new text end	new text begin 136A.825 new text end
	new text begin 141.265 new text end	new text begin 136A.826 new text end
	new text begin 141.271 new text end	new text begin 136A.827 new text end
	new text begin 141.28 new text end	new text begin 136A.828 new text end
	new text begin 141.29 new text end	new text begin 136A.829 new text end
	new text begin 141.30 new text end	new text begin 136A.83 new text end
	new text begin 141.31 new text end	new text begin 136A.831 new text end
	new text begin 141.32 new text end	new text begin 136A.832 new text end
	new text begin 141.35 new text end	new text begin 136A.833 new text end
	new text begin 141.37 new text end	new text begin 136A.834 new text end

Sec. 45. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 135A.25, subdivisions 1, 2, 3, 4, and 5; 158.01;
158.02; 158.03; 158.04; 158.05; 158.06; 158.07; 158.08; 158.09; 158.091; 158.10;
158.11; and 158.12, new text end new text begin are repealed.
new text end

ARTICLE 2

POLICY CLARIFICATIONS

Section 1.

Minnesota Statutes 2014, section 136A.861, subdivision 1, is amended to
read:

Subdivision 1.

Grants.

(a) The commissioner shall award grants to foster
postsecondary attendance and retention by providing outreach services to historically
underserved students in grades six through 12 and historically underrepresented college
students. Grants must be awarded to programs that provide precollege new text begin and college
new text end services, including, but not limited to:

(1) academic counseling;

(2) mentoring;

(3) fostering and improving parental involvement in planning for and facilitating a
college education;

(4) services for students with English as a second language;

(5) academic enrichment activities;

(6) tutoring;

(7) career awareness and exploration;

(8) orientation to college life;

(9) assistance with high school course selection and information about college
admission requirements; and

(10) financial aid counseling.

new text begin (b) New proposals designed to improve college attendance outcomes for intervention
for college attendance program-eligible students who are from communities located
outside the metropolitan area, as defined in section 473.121, subdivision 2, shall be given
a competitive preference priority for grant awards.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end Grants shall be awarded to postsecondary institutions, professional
organizations, community-based organizations, or others deemed appropriate by the
commissioner.

deleted text begin (c) deleted text end new text begin (d) new text end Grants shall be awarded for one year and may be renewed for a second year
with documentation to the office of successful program outcomes.

Sec. 2.

Minnesota Statutes 2014, section 136A.87, is amended to read:

136A.87 PLANNING INFORMATION FOR POSTSECONDARY
EDUCATION.

The office shall make available to all residents beginning in 7th grade through
adulthood information about planning and preparing for postsecondary opportunities.
Information must be provided to all 7th grade students and their parents annually
by September 30 about planning for their postsecondary education. The office may
also provide information to high school students and their parents, to adults, and to
out-of-school youth. The information provided may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions
and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary
education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing
in the state, their respective missions and expectations for students, their preparation
requirements, admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions
and systems;

(9) the costs of postsecondary education and the availability of financial assistance
in meeting these costs, including specific information about the Minnesota Promise deleted text begin and
achieve scholarship program deleted text end ;

(10) the interrelationship of assistance from student financial aid, public assistance,
and job training programs; and

(11) financial planning for postsecondary education.

Sec. 3. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b,
10, 10a, 11, and 14, new text end new text begin are repealed.
new text end

ARTICLE 3

POLICY CHANGES

Section 1.

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

new text begin The office may terminate a postsecondary institution's eligibility to participate in
state student aid programs if the institution meets any of the following criteria:
new text end

new text begin (1) the institution 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) the institution has a consistent pattern of noncompliance with Minnesota
Statutes, Minnesota Rules, or administrative policies governing student aid programs as
documented by the office;
new text end

new text begin (3) the institution 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 the institution's 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 (4) the institution 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 (5) the institution misappropriates student aid program money;
new text end

new text begin (6) the institution falsifies information or engages in misleading or deceptive
practices involving the administration of student financial aid programs;
new text end

new text begin (7) the institution no longer meets institutional eligibility criteria in section
136A.101, subdivision 4, or additional criteria for state grant participation in Minnesota
Rules, part 4830.0300, subparts 1 and 2; or
new text end

new text begin (8) the institution is terminated from participating in federal financial aid programs
by the United State Department of Education, if the 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 after the date of the
written notification. The office shall also provide an institution an opportunity for a
hearing under 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 under 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 commissioner within 30 days after the date of the written notification of
termination sent by the office. Within ten days after 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 the termination becomes effective, the office
reserves the right to withhold further financial aid disbursements to the institution and
to prohibit the institution from making any new awards to students. During this period,
the institution may use any remaining student aid program money on campus to make
disbursements to any students awarded money before the notice of termination.
new text end

Sec. 5.

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

new text begin The commissioner 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 commissioner shall take into consideration the hearing record and the report of
the administrative law judge. The order of the commissioner 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 after the effective date of the termination to submit a request
for reinstatement. A request for reinstatement must be in writing and submitted to the
commissioner. If the institution is initially denied reinstatement, the institution must
wait at least 90 days after the date of denial of reinstatement to resubmit a 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 money 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 after 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, 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 after 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.

Minnesota Statutes 2014, section 136A.125, subdivision 4, is amended to read:

Subd. 4.

Amount and length of grants.

(a) The amount of a child care grant
must be based on:

(1) the income of the applicant and the applicant's spouse;

(2) the number in the applicant's family, as defined by the office; and

(3) the number of eligible children in the applicant's family.

(b) The maximum award to the applicant shall be $2,800 for each eligible child per
academic year, except that the campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate for higher market charges
for infant care in a community. The office shall develop policies to determine community
market costs and review institutional requests for compensatory grant increases to ensure
need and equal treatment. The office shall prepare a chart to show the amount of a grant
that will be awarded per child based on the factors in this subdivision. The chart shall
include a range of income and family size.

new text begin (c) The formula used to calculate the maximum child care grant for each eligible child
per academic year is the maximum award minus ten percent of the family income exceeding
a percentage of the federal poverty guidelines that is determined by the commissioner.
If the formulaic result is less than zero, the grant is set to zero. The commissioner's
determination under this paragraph is not subject to chapter 14, including section 14.386.
new text end

new text begin (d) The academic year award amount must be disbursed by academic term using the
following formula:
new text end

new text begin (1) the academic year amount described in subdivision 4b;
new text end

new text begin (2) divided by the number of terms in the academic year;
new text end

new text begin (3) divided by 15; and
new text end

new text begin (4) multiplied by the number of credits for which the student is enrolled that
academic term, up to 15 credits.
new text end

new text begin Payments shall be made each academic term to the student or to the child care
provider, as determined by the institution. Institutions may make payments more than
once within the academic term.
new text end

Sec. 13.

Minnesota Statutes 2014, section 136A.125, subdivision 4b, is amended to
read:

Subd. 4b.

Additional grants.

An additional new text begin term of new text end child care grant may be
awarded to an applicant attending classes outside of the regular academic year who meets
the requirements in subdivisions 2 and 4. new text begin The annual maximum grant per eligible child
must not exceed the calculated annual amount in subdivision 4 plus the additional amount
in this subdivision, or the student's estimated child care cost for not more than 40 hours
per week per eligible child, whichever is less.
new text end

Sec. 14.

Minnesota Statutes 2014, section 136A.1313, is amended to read:

136A.1313 FINANCIAL AID AUDITS.

new text begin Subdivision 1. new text end

new text begin Compliance audits. new text end

deleted text begin Beginning with audits for fiscal year 1996, in
place of the audits provided by the office, public institutions that administer state grants
under decentralized delivery may arrange for audits of state financial aid awards and
tuition reciprocity recipients in conjunction with their audits for federal financial aid. deleted text end new text begin The
office is authorized to perform compliance audits of any Minnesota public or private
postsecondary institution that participates in programs administered by the office.
new text end

new text begin Subd. 2. new text end

new text begin Independent auditor. new text end

new text begin A postsecondary institution may choose to use
the same independent auditor it uses for its federal student financial aid audit to audit
the programs administered by the office for the same fiscal year. These new text end audits must be
conducted in compliance with guidelines and materials prepared by the office. The office
shall develop a review process including procedures for responding to audit exceptions.
deleted text begin All other institutions under decentralized delivery may arrange for audits under this
section beginning with audits for fiscal year 1997. deleted text end new text begin The use of an independent auditor does
not preclude the office from auditing these institutions as authorized by subdivision 1.
new text end

Sec. 15.

Minnesota Statutes 2014, section 136A.1701, subdivision 4, is amended to
read:

Subd. 4.

Terms and conditions of loans.

(a) The office may loan money upon
such terms and conditions as the office may prescribe. deleted text begin Under the SELF IV program, the
principal amount of a loan to an undergraduate student for a single academic year shall not
exceed $7,500 per grade level. The aggregate principal amount of all loans made subject
to this paragraph to an undergraduate student shall not exceed $37,500. The principal
amount of a loan to a graduate student for a single academic year shall not exceed $9,000.
The aggregate principal amount of all loans made subject to this paragraph to a student as
an undergraduate and graduate student shall not exceed $55,500. The amount of the loan
may not exceed the cost of attendance less all other financial aid, including PLUS loans or
other similar parent loans borrowed on the student's behalf. The cumulative SELF loan
debt must not exceed the borrowing maximums in paragraph (b).
deleted text end

deleted text begin (b) The cumulative undergraduate borrowing maximums for SELF IV loans are:
deleted text end

deleted text begin (1) grade level 1, $7,500;
deleted text end

deleted text begin (2) grade level 2, $15,000;
deleted text end

deleted text begin (3) grade level 3, $22,500;
deleted text end

deleted text begin (4) grade level 4, $30,000; and
deleted text end

deleted text begin (5) grade level 5, $37,500.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The deleted text begin principal deleted text end new text begin maximum loan new text end amount deleted text begin of a SELF V or subsequent phase loan
to deleted text end new text begin for new text end students enrolled in a bachelor's degree program, postbaccalaureate, or graduate
program deleted text begin must not exceed $10,000 per grade level deleted text end new text begin shall be determined annually by the
office new text end . For all other eligible students, the principal amount of the loan must not exceed
$7,500 per grade level. The aggregate principal amount of all loans made subject to this
paragraph to a student as an undergraduate and graduate student must not exceed deleted text begin $70,000 deleted text end new text begin
$140,000 new text end . The amount of the loan must not exceed the cost of attendance new text begin as determined
by the eligible institution new text end less all other financial aid, including PLUS loans or other similar
parent loans borrowed on the student's behalf. The cumulative SELF loan debt must not
exceed the borrowing maximums in paragraph deleted text begin (d) deleted text end new text begin (c) new text end .

deleted text begin (d) deleted text end new text begin (c) new text end (1) The cumulative borrowing maximums new text begin shall be determined annually by the
office new text end for deleted text begin SELF V loans and subsequent phases for deleted text end students enrolled in a bachelor's degree
program or postbaccalaureate program deleted text begin are: deleted text end new text begin .
new text end

deleted text begin (i) grade level 1, $10,000;
deleted text end

deleted text begin (ii) grade level 2, $20,000;
deleted text end

deleted text begin (iii) grade level 3, $30,000;
deleted text end

deleted text begin (iv) grade level 4, $40,000; and
deleted text end

deleted text begin (v) grade level 5, $50,000.
deleted text end

deleted text begin (2) For graduate level students, the borrowing limit is $10,000 per nine-month
academic year, with a cumulative maximum for all SELF debt of $70,000.
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end For all other eligible students, the cumulative borrowing maximums deleted text begin for
SELF V loans and subsequent phases deleted text end are:

(i) grade level 1, $7,500;

(ii) grade level 2, $15,000;

(iii) grade level 3, $22,500;

(iv) grade level 4, $30,000; and

(v) grade level 5, $37,500.

Sec. 16.

Minnesota Statutes 2014, section 136A.64, subdivision 1, is amended to read:

Subdivision 1.

Schools to provide information.

As a basis for registration, schools
shall provide the office with such information as the office needs to determine the nature
and activities of the school, including but not limited to the following which shall be
accompanied by an affidavit attesting to its accuracy and truthfulness:

(1) articles of incorporation, constitution, bylaws, or other operating documents;

(2) a duly adopted statement of the school's mission and goals;

(3) evidence of current school or program licenses granted by departments or
agencies of any state;

(4) deleted text begin a fiscal balance sheet on an accrual basis, or a certified audit of the immediate
past fiscal year including any management letters provided by the independent auditor
or, if the school is a public institution outside Minnesota, an income statement for the
immediate past fiscal year deleted text end new text begin financial data and information sufficient to enable the office
to determine the financial viability of the institution, including balance sheets, income
statements, audited financial statements if available, compiled financial statements if
available, or other financial information as requested by the office new text end ;

(5) all current promotional and recruitment materials and advertisements; and

(6) the current school catalog and, if not contained in the catalog:

(i) the members of the board of trustees or directors, if any;

(ii) the current institutional officers;

(iii) current full-time and part-time faculty with degrees held or applicable experience;

(iv) a description of all school facilities;

(v) a description of all current course offerings;

(vi) all requirements for satisfactory completion of courses, programs, and degrees;

(vii) the school's new text begin clear and concise new text end policy about freedom or limitation of expression
and inquiry new text begin by students new text end ;

(viii) a current schedule of fees, charges for tuition, required supplies, student
activities, housing, and all other standard charges;

(ix) the school's policy about refunds and adjustments;

(x) the school's policy about granting credit for prior education, training, and
experience; deleted text begin and
deleted text end

(xi) the school's policies about student admission, evaluation, suspension, and
dismissal deleted text begin . deleted text end new text begin ; and
new text end

new text begin (xii) the school's clear and concise policy about the intellectual property rights of
students.
new text end

Sec. 17.

Minnesota Statutes 2014, 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;

(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; deleted text begin and
deleted text end

(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 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) the school must not withhold a student's official transcript because the student is
in arrears or in default on any loan issued by the school to the student if the loan qualifies
as an institutional loan under United States Code, title 11, section 523(a)(8).
new text end

(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. 18.

Minnesota Statutes 2014, section 141.28, subdivision 6, is amended to read:

Subd. 6.

Financial aid payments.

(a) All schools must collect, assess, and
distribute funds received from loans or other financial aid as provided in this subdivision.

(b) Student loans or other financial aid funds received from federal, state, or local
governments or administered in accordance with federal student financial assistance
programs under title IV of the Higher Education Act of 1965, as amended, United States
Code, title 20, chapter 28, must be collected and applied as provided by applicable federal,
state, or local law or regulation.

(c) Student loans or other financial aid assistance received from a bank, finance or
credit card company, or other private lender must be collected or disbursed as provided
in paragraphs (d) and (e).

(d) Loans or other financial aid payments for amounts greater than $3,000 must
be disbursed:

(1) in two equal disbursements, if the term length is more than four months. The
loan or payment amounts may be disbursed no earlier than the first day the student attends
class with the remainder to be disbursed halfway through the term; or

(2) in three equal disbursements, if the term length is more than six months. The
loan or payment amounts may be disbursed no earlier than the first day the student attends
class, one-third of the way through the term, and two-thirds of the way through the term.

(e) Loans or other financial aid payments for amounts less than $3,000 may be
disbursed as a single disbursement on the first day a student attends class, regardless
of term length.

(f) No school may enter into a contract or agreement with, or receive any money
from, a bank, finance or credit card company, or other private lender, unless the private
lender follows the requirements for disbursements provided in paragraphs (d) and (e).

new text begin (g) No school may withhold an official transcript for arrears or default on any loan
made by the school to a student if the loan qualifies as an institutional loan under United
States Code, title 11, section 523(a)(8).
new text end

Sec. 19. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall make any necessary cross-reference change in
Minnesota Statutes or Minnesota Rules resulting from repealers in this act.
new text end

Sec. 20. new text begin REPEALER. new text end

new text begin
Minnesota Rules, parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; 4830.0160;
4830.0170; 4830.0180; 4830.0190; 4830.0195; and 4830.7500, subparts 2a, 2b, 2c, and
3a, new text end new text begin are repealed.
new text end