HF 4553

as introduced - 91st Legislature (2019 - 2020) Posted on 04/14/2020 11:19am

A bill for an act
relating to higher education; amending certain institutional approval provisions;
establishing and increasing fees; amending Minnesota Statutes 2018, sections
136A.103; 136A.65, subdivisions 4, 7, 8; 136A.653, subdivision 1; 136A.657,
subdivisions 1, 2; 136A.658; 136A.675; 136A.69, subdivisions 1, 4, by adding a
subdivision; 136A.824, subdivision 4, by adding a subdivision; 136A.829,
subdivision 1; 136A.833, subdivision 1; 136A.834, subdivision 2; Minnesota
Statutes 2019 Supplement, sections 136A.64, subdivision 1; 136A.646; proposing
coding for new law in Minnesota Statutes, chapter 136A.

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

Section 1.

Minnesota Statutes 2018, 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; deleted text begin and
deleted text end

new text begin (3) meet the additional security requirement under section 136A.646; and
new text end

deleted text begin (3) deleted text end new text begin (4) new text end (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 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 deleted text begin (3) deleted text end new text begin (4) new text end , 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. new text begin
The office may terminate an institution's eligibility to participate in state student aid programs
under this paragraph if the institution fails to make substantive progress toward participation
in the federal Pell Grant program within the required four years.
new text end

(e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution new text begin and the office may terminate an institution's eligibility to participate in
state student aid programs effective the date of the loss of eligibility for the federal Pell
Grant program new text end .

(f) An institution must maintain adequate administrative and financial standards and
compliance with all state statutes, rules, and administrative policies related to state financial
aid programs. 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) it 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) it has a consistent pattern of noncompliance with Minnesota Statutes, Minnesota
Rules, or administrative policies governing student aid programs as documented by the
office or lacks administrative capability to successfully administer student financial aid
programs on campus based on factors, including but not limited to:
new text end

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

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

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

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

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

new text begin (4) it has been administratively or judicially determined to have committed fraud or any
other material violation of law involving federal, state, or local government funds;
new text end

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

new text begin (6) it no longer meets institutional eligibility criteria in this section or additional criteria
for state grant participation in Minnesota Rules, part 4830.0300; or
new text end

new text begin (7) it is terminated from participating in federal financial aid programs by the United
States Department of Education, if the termination was based on a 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.103. The office shall send the institution written notification
of the termination, which is effective 90 days after the date of the written notification. The
90-day notice under this provision does not apply to termination under section 136A.103,
paragraph (e). 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 on the written notification
of termination sent by the office.
new text end

Sec. 4.

Minnesota Statutes 2019 Supplement, 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 compliance audits and audited financial statements that meet the requirements
of Code of Federal Regulations, title 34, section 668.23; United States Code, title 20, chapter
28, section 1094; Code of Federal Regulations, title 2, subpart A, part 200, subpart F, under
200.501 and 200.503; and United States Code, title 31, chapter 75 new text end ;

(5) all current promotional and recruitment materials and advertisements; deleted text begin and
deleted text end

(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 policy about freedom or limitation of expression and inquiry;

(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;

(xi) the school's policies about student admission, evaluation, suspension, and dismissal;
and

(xii) the school's disclosure to students on the student complaint process under section
136A.672 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) requested information to calculate the financial and nonfinancial metrics under section
136A.675.
new text end

Sec. 5.

Minnesota Statutes 2019 Supplement, section 136A.646, is amended to read:

136A.646 ADDITIONAL SECURITY.

(a) New deleted text begin schools deleted text end new text begin institutions new text end that have been granted conditional approval for degrees or
names to allow them the opportunity to apply for and receive accreditation under section
136A.65, subdivision 7, shall provide a surety bond in a sum equal to ten percent of the net
revenue from tuition and fees in the registered institution's prior fiscal year, but in no case
shall the bond be less than $10,000.

(b) Any registered institution that is notified by the United States Department of Education
that it has fallen below minimum financial standards and that its continued participation in
Title IV will be conditioned upon its satisfying either the Zone Alternative, Code of Federal
Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit Alternative, Code
of Federal Regulations, title 34, section 668.175, paragraph (c), shall provide deleted text begin a deleted text end new text begin an annual new text end
surety bond in a sum equal to deleted text begin the "letter of credit" required by the United States Department
of Education in the Letter of Credit Alternative, but in no event shall such bond be less than
$10,000 nor more than $250,000. If the letter of credit required by the United States
Department of Education is higher than ten percent of the Title IV, Higher Education Act
program funds received by the institution during its most recently completed fiscal year,
the office shall reduce the office's surety requirement to represent ten percent of the Title
IV, Higher Education Act program funds received by the institution during its most recently
completed fiscal year, subject to the minimum and maximum in this paragraph deleted text end new text begin ten percent
of the net tuition revenue from tuition and fees received from students in Minnesota enrolled
in the school's previous fiscal year new text end .

new text begin (c) If the office determines that any registered institution does not meet the financial
resource criteria under section 136A.65, subdivision 4, paragraph (a), clause (2), or
determines that any registered institution is vulnerable to a precipitous closure under section
136A.675, the office may:
new text end

new text begin (1) require an increased surety bond in the amount necessary to cover the costs under
paragraph (f);
new text end

new text begin (2) prohibit a registered institution from accepting tuition and fee payments made through
cash, alternative loans, or the equivalent prior to the add/drop period of the current period
of instruction; or
new text end

new text begin (3) prohibit a registered institution from enrolling new students.
new text end

deleted text begin (c) deleted text end new text begin (d) new text end In lieu of a bond, the applicant may deposit with the commissioner of management
and budget:

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

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

(3) an irrevocable letter of credit issued by a financial institution to the amount of the
required surety bond.

deleted text begin (d) deleted text end new text begin (e) new text end 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.

deleted text begin (e) deleted text end new text begin (f) new text end In the event of a school closure, the additional security deleted text begin must first be used deleted text end new text begin funds
must be given priority in the following order:
new text end

new text begin (1) new text end to destroy any private educational data under section 13.32 left at a physical campus
in Minnesota after all other governmental agencies have recovered or retrieved records
under their record retention policies deleted text begin . Any remaining funds must then be used deleted text end new text begin ;
new text end

new text begin (2) to reimburse state student aid under this chapter and sections 197.791 and 299A.45;
new text end

new text begin (3) new text end to reimburse new text begin cash payments made by or on behalf of a student for new text end tuition and fee
costs to students that were enrolled at the time of the closure or had withdrawn in the previous
deleted text begin 120 deleted text end new text begin 180 new text end calendar days but did not graduate deleted text begin . Priority for refunds will be given to students
in the following order: deleted text end new text begin ;
new text end

deleted text begin (1) cash payments made by the student or on behalf of a student;
deleted text end

deleted text begin (2) deleted text end new text begin (4) to reimburse new text end private student loans deleted text begin ; and deleted text end new text begin used by or on behalf of a student for
tuition and fee costs to students who were enrolled at the time of the closure or had withdrawn
in the previous 180 calendar days but did not graduate;
new text end

deleted text begin (3) deleted text end new text begin (5) to reimburse new text end Veteran Administration education benefits that are not restored by
the Veteran Administration deleted text begin . If there are additional security funds remaining, the additional
security funds may be used to cover deleted text end new text begin and that were used by or on behalf of a student for
tuition and fee costs to students that were enrolled at the time of the closure or had withdrawn
in the previous 180 calendar days but did not graduate;
new text end

new text begin (6) to reimburse tuition and fee costs for coursework that did not transfer to a new
institution unless the costs were paid for with Title IV, Higher Education Act program funds
that are dischargeable through cancellation or discharge; and
new text end

new text begin (7) to reimburse new text end any administrative costs incurred by the office related to the closure of
the school.

new text begin (g) In the event any registered institution is unable to meet the additional surety
requirement, the office may grant the registered institution conditional approval under
section 136A.65, subdivision 7, subject to the state financial aid program restrictions under
section 136A.65, subdivision 8, paragraph (d), and a restriction that prohibits the enrollment
of new or prospective students.
new text end

Sec. 6.

Minnesota Statutes 2018, 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 accounting principles
according to the type of school;

(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;

(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 and
deleted text end

(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)(b) deleted text begin . deleted text end new text begin ;
new text end

new text begin (11) the school may not require mandatory predispute arbitration clauses with students;
new text end

new text begin (12) the school has a process to receive and act on student complaints; and
new text end

new text begin (13) the school has cooperated with the office in the screening, inquiry, monitoring, and
contingency planning and notification process under section 136A.675.
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. 7.

Minnesota Statutes 2018, section 136A.65, subdivision 7, is amended to read:

Subd. 7.

Conditional approval.

(a) The office may grant a school a one-year conditional
approval for a degree or use of a term in its name if doing so would be in the best interests
of currently enrolled students or prospective students. Conditional approval of a degree or
use of a term under this paragraph must not exceed a period of three years.

(b) The office may grant new schools new text begin with their physical location in Minnesota new text end and
programs a one-year conditional approval for degrees or use of a term in its name to allow
the school the opportunity to apply for and receive accreditation as required in subdivision
1a. Conditional approval of a school or program under this paragraph must not exceed a
period of five years. A new school or program granted conditional approval may be allowed
to continue in order to complete an accreditation process upon terms and conditions the
office determines.

(c) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school the opportunity to apply for and receive
accreditation as required in subdivision 1a if the school's accrediting agency is no longer
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

(d) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school to change to a different accrediting agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

Sec. 8.

Minnesota Statutes 2018, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration appeal.

(a) new text begin By giving written notice and reasons
to the school, new text end the office may refuse new text begin :
new text end

new text begin (1) new text end to renew, revoke, or suspend registration deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end approval of a school's degree deleted text begin , or deleted text end new text begin ; and
new text end

new text begin (3) new text end use of a regulated term in its name deleted text begin by giving written notice and reasons to the school deleted text end .

(b) Reasons for revocation or suspension of registration or approval may be for one or
more of the following reasons:

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

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

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

(4) refusing to allow reasonable inspection or to supply reasonable information after a
written request by the office has been received deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) failing to have enrollment within the last two years at the school;
new text end

new text begin (6) failing to have any enrollment within two years of a program's approval;
new text end

new text begin (7) failing to provide the additional surety required under section 136A.646; or
new text end

new text begin (8) the office has determined the school is vulnerable to closure under section 136A.657.
new text end

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

new text begin (d) If the office issues an order refusing, revoking, or suspending a school's registration,
approval of a school's degree, or use of a regulated term in the school's name or issues an
order granting conditional approval due to a school's failure to meet the risk analysis
requirements under section 136A.75, the office may take the following actions for the
administration of state student aid under this chapter and sections 197.791 and 299A.45:
new text end

new text begin (1) withhold payment of state student aid;
new text end

new text begin (2) oversee the transfer of state student aid to the school to ensure payment of state
student aid in excess of tuition and fees to students;
new text end

new text begin (3) require the return of any advance state student aid payments made to the school;
new text end

new text begin (4) require documentation of the proper use of state student aid payments, including
proof of payment of state student aid in excess of tuition and fees; and
new text end

new text begin (5) issue payments of state financial aid directly to a student.
new text end

Sec. 9.

Minnesota Statutes 2018, section 136A.653, subdivision 1, is amended to read:

Subdivision 1.

Application.

A school that seeks an exemption under this section from
the provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the
school meets the requirements of an exemption. An exemption expires two years from the
date of approval or when a school adds a new program or makes a modification equal to or
greater than 25 percent to an existing educational program. If a school is reapplying for an
exemption, the application must be submitted to the office 90 days before the current
exemption expires. new text begin This exemption shall not extend to any school that uses any publication
or advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate,
or misleading impressions about the school or its personnel, programs, services, or
occupational opportunities for graduates for promotion and student recruitment.
new text end

Sec. 10.

Minnesota Statutes 2018, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Any school or any department or branch of a school new text begin :
new text end

deleted text begin (a) deleted text end new text begin (1) new text end which is substantially owned, operated or supported by a bona fide church or
religious organization;

deleted text begin (b) deleted text end new text begin (2) new text end 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

deleted text begin (c) deleted text end new text begin (3) new text end 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 136A.834.

Sec. 11.

Minnesota Statutes 2018, section 136A.657, subdivision 2, is amended to read:

Subd. 2.

Limitation.

new text begin (a) new text end This exemption shall not extend to any school or to any
department or branch of a school which through advertisements or solicitations represents
to any students or prospective students that the school, its aims, goals, missions or purposes
or its programs are different from those described in subdivision 1.

new text begin (b) new text end This exemption shall not extend to any school which represents to any student or
prospective student that the major purpose of its programs is new text begin :
new text end

new text begin (1) new text end to prepare the student for a vocation not closely related to that particular religious
faith deleted text begin , deleted text end new text begin ; new text end or

new text begin (2) new text end to provide the student with a general educational program recognized by other schools
or the broader educational, business or social community as being substantially equivalent
to the educational programs offered by schools or departments or branches of schools which
are not exempt from sections 136A.61 to 136A.71, and rules adopted pursuant thereto.

new text begin (c) This exemption shall not extend to any school that uses any publication or
advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or
misleading impressions about the school; its personnel, programs, or services; or occupational
opportunities for its graduates for promotion and student recruitment.
new text end

Sec. 12.

Minnesota Statutes 2018, section 136A.658, is amended to read:

136A.658 EXEMPTION; STATE AUTHORIZATION RECIPROCITY
AGREEMENT SCHOOLS.

(a) The office may participate in an interstate reciprocity agreement regarding
postsecondary distance education if it determines that participation is in the best interest of
Minnesota postsecondary students.

(b) If the office decides to participate in an interstate reciprocity agreement, an institution
that meets the following requirements is exempt from the provisions of sections 136A.61
to 136A.71:

(1) the institution is situated in a state which is also participating in the interstate
reciprocity agreement;

(2) the institution has been approved to participate in the interstate reciprocity agreement
by the institution's home state and other entities with oversight of the interstate reciprocity
agreement; and

(3) the institution has elected to participate in and operate in compliance with the terms
of the interstate reciprocity agreement.

new text begin (c) If the office participates in an interstate reciprocity agreement and the office is
responsible for the administration of that interstate reciprocity agreement, which may include
the approval of applications for membership of in-state institutions to participate in the
interstate reciprocity agreement, the office shall collect reasonable fees sufficient to recover,
but not exceed, its costs to administer the interstate reciprocity agreement. The office
processing fees for approving an in-state institution application shall be as follows:
new text end

new text begin (1) $750 for institutions with fewer than 2,500 full-time enrollment;
new text end

new text begin (2) $3,000 for institutions with 2,501 to 20,000 full-time enrollment; and
new text end

new text begin (3) $7,500 for institutions with greater than 20,001 full-time enrollment.
new text end

new text begin Full-time enrollment is established using the previous year's full-time enrollment as
established in the United States Department of Education Integrated Postsecondary Education
Data System.
new text end

Sec. 13.

Minnesota Statutes 2018, section 136A.675, is amended to read:

136A.675 RISK ANALYSIS.

new text begin (a) new text end The office shall develop deleted text begin a set of deleted text end new text begin and apply new text end financial and deleted text begin programmatic evaluation
metrics deleted text end new text begin nonfinancial measures as a basis of comparison and trends new text end to new text begin evaluate and new text end aid in
the detection of deleted text begin the failure or potential failure of deleted text end a school new text begin that may not be financially or
administratively responsible and thereby at risk of a precipitous closure. A school may be
vulnerable to a precipitous closure if:
new text end

new text begin (1) the school is unable new text end to meet the standards established under sections 136A.61 to
136A.71 deleted text begin . These metrics shall include indicators of financial stability, changes in the senior
management or the financial aid and senior administrative staff of an institution, changes
in enrollment, changes in program offerings, and changes in faculty staffing patterns. deleted text end new text begin ; or
new text end

new text begin (2) the office determines, through the systematic evaluation process in paragraph (d),
that the failure to meet one or more of those standards represents a risk of a precipitous
closure.
new text end

new text begin (b) new text end The development of financial standards shall use industry standards as deleted text begin benchmarks.
The development of the nonfinancial standards shall include a measure of trends and dramatic
changes in trends or practice deleted text end new text begin guidance to develop financial and nonfinancial indicators new text end .

new text begin (c) A school must notify the office within five business days if any of the following
occur:
new text end

new text begin (1) the school has defaulted on a debt payment and has not received a waiver of the
violation;
new text end

new text begin (2) the school's owner or owners withdraw equity and the school has a federal composite
score of less than 1.5 unless the withdrawal is a transfer between affiliated entities included
in a common composite score;
new text end

new text begin (3) the United States Department of Education requires a 25 percent or greater Letter of
Credit or Heightened Cash Monitoring 2;
new text end

new text begin (4) the school receives notification of probation, warning, show-cause, or loss of
institutional accreditation;
new text end

new text begin (5) the school's institutional accreditor loses federal recognition;
new text end

new text begin (6) the school violates the United States Department of Education's 90/10 requirement;
or
new text end

new text begin (7) the school receives notification that it has violated state authorization or licensing
requirements in a different state that may lead to or has led to the termination of the school's
ability to continue to provide educational programs or otherwise continue to operate in that
state.
new text end

new text begin (d) In the event the office receives notification under paragraph (c) or determines risk
of a precipitous closure from information collected under section 136A.64, 136A.65, or
136A.672, the office shall collect sufficient data to make a determination of whether a school
is vulnerable to a precipitous closure. If the office determines that a school is vulnerable to
a precipitous closure:
new text end

new text begin (1) the office shall provide the determination analysis to the school and request additional
context and information. The school may provide context and information to support a
sound business practice and plan to confirm financial health and manageable risk. The office
shall use the school's additional context and information to reevaluate whether the school
is vulnerable to closure;
new text end

new text begin (2) if the school does not respond to the office's request for additional context and
information in clause (1), the office may revoke, suspend, or refuse to renew registration,
approval of a school's degree, or use of a regulated term in its name, require additional
surety under section 136A.646, require information under section 136A.646, or initiate
alternative processes and communications with students enrolled at the school; and
new text end

new text begin (3) the office may use the reevaluated determination in the office's decision to revoke,
suspend, or refuse to renew registration, approval of a school's degree, or use of a regulated
term in its name or initiate alternative processes and communications with students enrolled
at the school.
new text end

new text begin (e) If the office determines a risk of a precipitous closure under paragraph (d), the office
may require the school to:
new text end

new text begin (1) conduct periodic monitoring and submit reports on the school's administrative and
financial responsibility;
new text end

new text begin (2) submit contingency plans such as teach-out plans or transfer pathways for students;
new text end

new text begin (3) provide additional surety under section 136A.646; and
new text end

new text begin (4) submit school closure information under section 136A.645.
new text end

new text begin (f) new text end The deleted text begin agency deleted text end new text begin office new text end must specify the deleted text begin metrics and standards for each area deleted text end new text begin measures
used for analyzing whether a school is vulnerable to closure new text end and new text begin annually new text end provide a copy
to each registered institution deleted text begin and post them on the agency website deleted text end .

new text begin (g) The office shall post a list of reviewed indicators and measures on the office's website. new text end
The deleted text begin agency deleted text end new text begin office new text end shall use regularly reported data submitted to the federal government or
other regulatory or accreditation agencies wherever possible. The agency may require more
frequent data reporting by an institution to ascertain whether the standards are being met.

Sec. 14.

Minnesota Statutes 2018, section 136A.69, subdivision 1, is amended to read:

Subdivision 1.

Registration fees.

(a) The office shall collect reasonable registration fees
that are sufficient to recover, but do not exceed, its costs of administering the registration
program. The office shall charge the fees listed in paragraphs (b) and (c) for new registrations.

(b) A new school offering no more than one degree at each level during its first year
must pay registration fees for each applicable level in the following amounts:

associate degree	$2,000
baccalaureate degree	$2,500
master's degree	$3,000
doctorate degree	$3,500

(c) A new school that will offer more than one degree per level during its first year must
pay registration fees in an amount equal to the fee for the first degree at each degree level
under paragraph (b), plus fees for each additional nondegree program or degree as follows:

nondegree program	$250
additional associate degree	$250
additional baccalaureate degree	$500
additional master's degree	$750
additional doctorate degree	$1,000

(d) The annual renewal registration fee is deleted text begin $1,200 deleted text end new text begin $2,000 new text end .

Sec. 15.

Minnesota Statutes 2018, section 136A.69, subdivision 4, is amended to read:

Subd. 4.

Visit or consulting fee.

If the office determines that a fact-finding visit or
outside consultant is necessary to review new text begin , investigate, new text end or evaluate any deleted text begin new or revised deleted text end degree
or nondegree program new text begin or the institution new text end , 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.

Sec. 16.

Minnesota Statutes 2018, section 136A.69, is amended by adding a subdivision
to read:

new text begin Subd. 4a. new text end

new text begin Student complaint fee. new text end

new text begin The office shall be reimbursed for expenses necessary
to review or investigate any student complaint under section 136A.672 for any registered
institution that has more than five student complaints per annual registration period. The
office shall be reimbursed for the expenses incurred related to the review or investigation
of any complaint that exceeds the fifth complaint as follows:
new text end

new text begin (1) $500;
new text end

new text begin (2) $300 for each day or part thereof that requires a site visit per team member; and
new text end

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

Sec. 17.

Minnesota Statutes 2018, section 136A.824, subdivision 4, is amended to read:

Subd. 4.

Visit or consulting fee.

If the office determines that a fact-finding visit or
outside consultant is necessary to review new text begin , investigate, new text end or evaluate any new or revised program new text begin
or the private career school for statutory compliance new text end , 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.

Sec. 18.

Minnesota Statutes 2018, section 136A.824, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Student complaint fee. new text end

new text begin The office shall be reimbursed for expenses necessary
to review or investigate any student complaint under section 136A.8295 for any licensed
private career school that has more than five student complaints per annual licensure period.
The office shall be reimbursed for the expenses incurred related to the review or investigation
of any complaint that exceeds the fifth complaint as follows:
new text end

new text begin (1) $500;
new text end

new text begin (2) $300 for each day or part thereof that requires a site visit per team member; and
new text end

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

Sec. 19.

Minnesota Statutes 2018, section 136A.829, subdivision 1, is amended to read:

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 136A.821 to 136A.833 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 private career 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 136A.822 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) using fraudulent, coercive, or dishonest practices, or demonstrating gross
mismanagement, whether in the course of business in this state or elsewhere.
new text end

Sec. 20.

Minnesota Statutes 2018, section 136A.833, subdivision 1, is amended to read:

Subdivision 1.

Application for exemptions.

A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 new text begin for the school and all of its programs or some
of its programs new text end must apply to the office to establish that the school meets the requirements
of an exemption. An exemption expires two years from the date of approval or when a
school adds a new program or makes a modification equal to or greater than 25 percent to
an existing educational program. If a school is reapplying for an exemption, the application
must be submitted to the office 90 days before the current exemption expires. new text begin This exemption
shall not extend to any school that uses any publication or advertisement that is not truthful
and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions about the
school or its personnel, programs, services, or occupational opportunities for its graduates
for promotion and student recruitment.
new text end

Sec. 21.

Minnesota Statutes 2018, section 136A.834, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) An exemption shall not extend to any private career school,
department or branch of a private career school, or program of a private career school deleted text begin which deleted text end new text begin
that new text end through advertisements or solicitations represents to any students or prospective students
that the school, its aims, goals, missions, purposes, or programs are different from those
described in subdivision 1.

(b) An exemption shall not extend to any private career school deleted text begin which deleted text end new text begin or program that new text end
represents to any student or prospective student that the major purpose of its programs is
to:

(1) prepare the student for a vocation not closely related to that particular religious faith;
or

(2) provide the student with a general educational program recognized by other private
career schools or the broader educational, business, or social community as being
substantially equivalent to the educational programs offered by private career schools or
departments or branches of private career schools which are not religious in nature and are
not exempt from sections 136A.82 to 136A.834 and from rules adopted under sections
136A.82 to 136A.834.

new text begin (c) This exemption shall not extend to any school that uses any publication or
advertisement that is not truthful and gives any false, fraudulent, deceptive, inaccurate, or
misleading impressions about the school or its personnel, programs, services, or occupational
opportunities for graduates for promotion and student recruitment.
new text end